Which of the following is a silent feature of "Goods and service tax"?
- GST is based on the principle of destination based consumption taxation
- GST is not based on the concept of putting tax on the manufacture or sale of goods and services
- GST is further divided in 3 types: Central, State and District
Answer & explanation
Correct answer: option 1
Good and service tax is applicable on "supply" of goods or services as against the concept on the manufacture or sale of goods. It is a destination based tax as against the principle of origin-based taxation. It is a dual GST with the centre and states simultaneously levying tax on a common base.