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CA Intermediate · Taxation · GST in India - An Introduction

Consider the following statements on the GST regime: (I) GST is a destination-based consumption tax. (II) GST is levied on manufacture of goods as the taxable event. (III) GST is a dual tax levied concurrently by the Centre and States. (IV) Under the Constitution, Parliament alone has the power to levy GST on inter-State supplies. Which combination of statements is correct?

Statements I, III and IV are correct. GST is a destination-based consumption tax, it is a dual levy by the Centre and States, and Parliament alone legislates on inter-State supplies under Article 269A. Statement II is wrong because the taxable event under GST is supply, not manufacture.

  1. AI, III and IV onlyCorrect
  2. BI, II and III only
  3. CII and IV only
  4. DI and III only

Explanation

GST is destination-based (I true) and a dual GST levied concurrently by the Centre and States (III true). Its taxable event is supply, not manufacture, so II is false. Under Article 269A, GST on inter-State supply is levied and collected by the Government of India and apportioned between the Union and the States, so Parliament alone legislates on inter-State supplies (IV true).

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