Which one of the following statements is correct in relation to the GST Bill passed by the Rajya Sab...........

Indian Economy (CDS) Economy

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Which one of the following statements is correct in relation to the GST Bill passed by the Rajya Sabha in August 2016?

It will replace all central taxes, duties, etc, only by a single tax.

It will subsume central as well as State taxes, duties, etc.

GST will be levied on alcoholic liquor for human consumption at a uniform rate of 25 percent.

Petroleum and petroleum products shall not be subject to the levy of GST.

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Explanation:

Goods and Services Tax (GST) will replace all central as well as state taxes by a single tax. GST will subsume various Central indirect taxes, including the Central excise duty, Countervailing duty, Service tax, etc. It also subsumes State Value Added Tax (VAT), Octroi and entry tax, Luxury tax, etc. Petroleum products like kerosene, naphtha and LPG will be under GST, while five items, including crude oil, natural gas, aviation fuel, diesel and petrol have been excluded. Alcohol for human consumption will be out of GST.