GST is a destination-based consumption tax levied at the point of supply, not on the manufacturing cost. It is a value-added tax system.
Consider the following statement about GST: (1) Both Central and State taxes will be collected at the point of sale (2) The Central and State GST will be charged on the manufacturing cost Which of the above statements are correct?
Asked in TNPSC CS Prelims 2024 · Topic: Fiscal Policy & Revenue (Taxation System in India: Direct, Indirect taxes, and Tax Reforms (including GST))
More Economic Development questions
- What kind of Tax System is found in India ?
- Which of the following taxes are abolished by the Goods and Services Tax ?
- Direct Tax Code in India is related to which of the following?
- The Central Board of Direct Taxes (CBDT) in June 2013 has specified a value for the cost inflation index of 2013-14. In this regard, which of the statements given below is/are correct? 1. There has been a rise in the cost inflation index over the year 2012-13. 2. The cost inflation index helps in reducing the inflationary gains, thereby reducing the long-term capital gains tax payout for a taxpayer. Select the correct answer using the code given below.
- It is used to adjust the purchase price of an asset for inflation when calculating long-term capital gains. - The CII for a financial year is typically higher than that of the previous financial year, reflecting the general trend of inflation. Given the inflationary environment in India around 2013, it is highly likely that the CII for 2013-14 was higher than that for 2012-13. - The purpose of indexation using CII is to account for the decrease in the purchasing power of money due to inflation. By indexing the cost of acquisition and improvement, the taxable capital gain is reduced, as it accounts for only the real gain over and above inflation. This directly reduces the long-term capital gains tax liability for the taxpayer. 384. Which of the statements given below is/are correct ? 1. In India, the provisions of General Anti-Avoidance Rule (GAAR) will be implemented with effect from 1 April 2015 2. The provisions of GAAR were aimed at checking tax avoidance by overseas investors Select the correct answer using the code given below :
- Under Section 10(26) of the Income Tax Act, which of the following category of people are exempted from income tax ?
- GST is a/an
- Consider the following statements : 1. Burden of a tax on a commodity is independent of who (buyer or seller) it is explicitly imposed upon 2. Burden of a tax on a commodity depends on the slope of the demand and supply curves