Read the given below two statements and mark the correct answer.

Assertion (A): GST is a destination based tax on consumption of goods and services.
Reason (R) : GST is one tax one nation.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

The correct answer is option 2- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

GST is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer. The concept of destination based tax on consumption implies has the tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.

Both statements are true and related with GST but reason does not explain why assertion is true.