Consider the following statementsabout GST 1 Threshold limit for exemption is differe...........

Economic Affairs Tax System

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Consider the following statementsabout GST

1. Threshold limit for exemption is different for special category states.

2. Under Composition scheme small traders are allowed to file summarized returns on quarterly basis.

3. State and central governments are empowered to take action in one another’s law related to GST

Which of the statement given above is / are correct?

1, 2 and 3

1 and 2 only

2 and 3 only

1 and 3 only

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Explanation:

- Statement 1: Correct. The threshold limit for GST exemption can vary for special category states, recognizing their unique economic and administrative challenges.

- Statement 2: Correct. Under the Composition Scheme, small traders can opt to pay a fixed rate of GST and are required to file summarized returns on a quarterly basis, simplifying compliance.

- Statement 3: Incorrect. The State and Central governments have concurrent powers under the GST framework, but they cannot directly enforce each other's laws. They operate under a cooperative framework but with distinct legal jurisdictions.

Correct Option: Option 2 (1 and 2 only)

- The correct answer is Option 2 since both statements 1 and 2 are correct, while statement 3 is incorrect.