Consider the following statements about the Goods and Services Tax (GST):
Statement-1:
GST is a value-added tax levied on goods and services sold for domestic consumption.
Statement-2:
GST is a Union subject according to the Constitution of India.
Which one of the following is correct in respect of the above statements?
Both Statement-1 and Statement-2 are correct and Statement-2 is the correct explanation for Statement-1
Incorrect Answer Both Statement-1 and Statement-2 are correct and Statement-2 is not the correct explanation for Statement-1
Incorrect AnswerStatement-1 is correct but Statement-2 is incorrect
Correct AnswerStatement-1 is incorrect but Statement-2 is correct
Incorrect AnswerExplanation:
GST is indeed a value-added tax on goods and services sold for domestic consumption. However, it is not a Union subject; it is a concurrent subject governed by both the Centre and the states.
![]()
By: Arun Rana