Consider the following statements about GST:
(A) GST is a single comprehensive indirect tax on the supply of goods and services.
(B) It is a destination based consumption tax.
(C) Five petroleum products have been kept out of GST for the time being.
(D) Tobacco and tobacco products attract only GST and no other tax.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (C) only
GST replaced many central and state taxes, but a few items still stay outside it or carry another tax as well.
(A) GST is a single comprehensive indirect tax on the supply of goods and services. — Correct. It runs from the manufacturer to the consumer.
(B) It is a destination based consumption tax. — Correct. It comes with Input Tax Credit in the supply chain.
(C) Five petroleum products have been kept out of GST for the time being. — Correct. They are to be brought in with time.
(D) Tobacco and tobacco products attract only GST and no other tax. — Incorrect. They attract both GST and Central Excise Duty.
NCERT (2026-27): “Box 5.3: GST: One Nation, One Tax, One Market Goods and Service Tax (GST) is the single comprehensive indirect tax, operational from 1 July 2017, on supply of goods and services, right from the manufacturer/ service provider to the consumer. It is a destination based consumption tax with facility of Input Tax Credit in the supply chain. …” “… Five petroleum products have been kept out of GST for the time being but with passage of time, they will get subsumed in GST. State Governments will continue to levy VAT on alcoholic liquor for human consumption. Tobacco and tobacco products will attract both GST and Central Excise Duty. …” |