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CA Intermediate · Taxation · GST in India - An Introduction

Which of the following is NOT a feature of GST as introduced in India by the Constitution (101st Amendment) Act, 2016?

The statement that GST is levied on manufacture is not a feature of GST. GST is levied on the supply of goods or services, as a destination-based consumption tax in a dual structure by the Centre and States, whereas manufacture was the taxable event under the old central excise duty.

  1. AIt is a destination-based consumption tax
  2. BIt subsumes central excise duty and service tax on supplies
  3. CIt is levied on the manufacture of goods rather than on supplyCorrect
  4. DIt is a dual GST levied by both the Centre and the States

Explanation

GST is levied on the supply of goods or services, and not on manufacture, which was the trigger for central excise duty. It is a destination-based consumption tax, it subsumes central excise duty and service tax, and the Centre and the States levy it concurrently as a dual GST. Therefore option C is not a feature.

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