Which of the following is true regarding the recent GST bill 1 Subsumes central and s...........

Economic Affairs Tax System

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Which of the following is true regarding the recent GST bill?

1. Subsumes central and state indirect taxes

2. Gives concurrent powers of taxation on goods and services to both centre and states.

3. The destination state will collect taxes in case of inter-state trade and commerce

4. Charged on wholesale cost.

Choose the correct answer from the codes below

1 and 2

1,2 and 4

1,2,3,4

1,2,3

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Explanation:

Goods and Services Tax would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. There is reduction in free movement of goods from one state to another without stopping at state borders for hours for payment of state tax.