Which of the following about the GST (Goods and Services Tax) is/are correct?
1. Taxes levied by the local governments have been kept out of the purview of GST
2. Customs and Stamp duty have been kept out of the Purview of GST
Select the correct answer using the codes given below
None of the above
Incorrect AnswerAll of the above
Correct AnswerExplanation:
- Statement 1: Taxes levied by local governments are generally outside the purview of GST. Local taxes like property tax and entertainment tax (levied by local bodies) are not subsumed under GST. Therefore, this statement is correct.
- Statement 2: Customs duties are outside the scope of GST; however, GST is applicable on imports in the form of Integrated GST (IGST). Stamp duties, primarily used for the transfer of property and legal documents, are also excluded from GST. Therefore, the statement is correct.
- Correct Answer: Option 4 (All of the above) is correct as both statements accurately reflect the scope and exclusions of the GST framework.
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By: Vishal