Consider the statements about GST:
(i) Both Central and State taxes will be collected at the point of sale.
(ii) The Central and State GST will be charged on the manufacturing cost.
Which of the above statements is/are correct?
A) (i) only
B) (ii) only
C) both (i) and (ii)
D) None of the above
- A(i) only
- B(ii) only
- Cboth (i) and (ii)
- DNone of the above
Solution & Step-by-step Explanation
The Goods and Services Tax (GST) is a destination-based consumption tax, which means it is levied at the point of final consumption or sale to the end consumer, rather than being charged purely on manufacturing cost (which was the hallmark of the older excise duty regime). Thus, statement (i) is correct while statement (ii) is incorrect.