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Consider the following income sources
Excise duty on alcohol for human consumption
Lease or sale of natural resources
Sale of lotteries
How many of the above is/are direct sources of revenue for states?
Only One
Only Two
All Three
None
All Three codes are correct.
States generate revenue through various sources. Their own tax revenue (OTR) includes taxes levied by state governments, such as State GST (SGST), a portion of the Goods and Services Tax (GST) collected by the Union Government, State Excise Duty on alcohol (for human consumption), Sales Tax or VAT on items outside the GST purview, Stamps and Registration Duty on property transactions, Vehicle Registration Tax, and Entertainment Tax on movie tickets.
Additionally, states earn non-tax revenue from activities like the lease or sale of natural resources, economic services such as irrigation, health, and education, the sale of lotteries, and interest receipts from loans to public sector undertakings or local bodies.
States also receive financial support in the form of grants from the central government, which assist in welfare, infrastructure, and disaster relief.
Therefore, excise duty on alcohol for human consumption (1), lease or sale of natural resources(2), and the sale of lotteries(3) are all direct sources of revenue for states.
Hence option 3rd is correct.
By: Shubham Tiwari ProfileResourcesReport error
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