Question

Q. With regards to the GST (Goods and Services tax), which of the following statements is/are correct

Select the correct answer using the codes given below:

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is B 2 and 3 only

Explanation:

Statement 1 is incorrect: It was passed through the 101th Constitutional Amendment Act, 2016.

Statement 2 is correct: It is a destination based tax not origin based tax.

Statement 3 is correct: GST council is constituted under the Article 279A of the constitution.. It is Chaired by the Union Finance Minister with ministers nominated by the state governments as its members. In the council, the centre will have 1/3rd voting power and the states have 2/3rd voting power. The decisions are taken by 3/4th majority in the GST council.

Statement 4 is incorrect: Petroleum, tobacco, excise duty on liquor, stamp duty, etc are exempted from the purview of GST.