Which of the following sentences is incorrect for GST?

Question

Question

This question was previously asked in

UP Police Constable 2024 Official Paper (Held On: 17th Feb 2024 Shift 1)

GST is a destination-based tax.
There are multiple levies of tax on goods and services.
GST is a common law and procedure throughout the country under single administration.
GST is a comprehensive levy and collection on both goods and services at the same rate with benefit of input tax credit or subtraction of value.

Answer 1

The correct answer is GST is a common law and procedure throughout the country under single administration..

Key Points

GST is a destination-based tax. This means that the tax is levied on the final consumption of goods and services, in the state where they are consumed, rather than in the state where they are produced.
There are multiple levies of tax on goods and services. While GST subsumed many indirect taxes, there are still some other levies like stamp duty and octroi that are not part of GST.
GST is a common law and procedure throughout the country under single administration. While GST aims for uniformity, each state has its own GST legislation and administration, leading to some variations. Hence, statemnt of option 3 is incorrect.
GST is a comprehensive levy and collection on both goods and services at the same rate with benefit of input tax credit or subtraction of value. While GST applies to a wide range of goods and services, there are different tax rates for different items. Additionally, the input tax credit benefit is not available on all purchases.
Hence, the correct answer for the above question is 3.