Multiple choice

Which of the following statements is/are correct regarding the Goods and Services Tax (GST)?

  1. The states and the federal government will impose the GST on almost all goods and services produced in India or imported.
  2. Exports will not attract GST.
  3. Goods like crude oil, diesel, petrol and alcohol are exempted from the ambit of GST.

  1. Only 1

  2. Only 1 and 2

  3. 1, 2 and 3

  4. Only 1 and 3
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The GST is an indirect tax that will replace existing levies such as excise duty, service tax and value-added tax (VAT). The states and the federal government will impose the tax on almost all goods and services produced in India or imported. Exports will not attract GST. The GST will not cover goods like crude oil, diesel, petrol and alcohol. These goods are major sources of revenues for most states. Exports would be zero-rated and imports would be levied the same taxes as domestic goods and services adhering to the destination principle. 

Keep practicing — related questions