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CA Intermediate · Taxation · GST in India - An Introduction

Consider the following statements on the GST regime in India: (I) GST is a destination-based consumption tax. (II) GST is levied on manufacture of goods, in the same way that excise duty was. (III) Petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel are, until notified by the Council, outside GST. (IV) Alcoholic liquor for human consumption is outside GST. Which of the statements are correct?

Statements I, III and IV are correct. GST is a destination-based consumption tax, five petroleum products stay outside it until notified, and alcohol for human consumption is outside it. Statement II is wrong because GST is levied on supply, not on manufacture as excise duty was.

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

Explanation

GST is levied on supply, not manufacture, so statement II is wrong. Statements I, III and IV are correct: GST is destination-based, the five specified petroleum products are outside GST until the Council recommends a date, and alcohol for human consumption is outside GST. Hence only I, III and IV are correct.

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