In July 2017,the government of India introduced the new indirect tax regime called Goods and Services tax, that subsumed all other types of taxes ,so that India could have single tax system all over the country for better transparent tax collection. GST enabled the increase in agricultural marketing as well. The simplified tax regime has made it easier to transact in the economy.

Which of the following statement is incorrect about GST tax?

It is a destination based consumption tax with facility of Input Tax debit in the supply chain.

The correct answer is Option 2: It is a destination based consumption tax with facility of Input Tax debit in the supply chain.

It is a destination based consumption tax with facility of Input Tax Credit (not debit) in the supply chain.

"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 (Option 2 is NOT correct). It isbapplicable throughout the country with one rate for one type of goods/service. It has amalgamated a large number of Central and State taxes and cesses. It has replaced large number of taxes on goods and services levied on production/sale of goods or provision of service. (Option 3 is correct) Five petroleum products have been kept out of GST (Option 1 is correct) for the time being but with passage of time, they will get subsumed in GST."