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Question : Statement 1: Goods and Services Tax (GST) is a direct tax.

Statement 2: GST is levied on goods and services.

 

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Statement 1 is false, and statement 2 is true.


Solution : The correct answer is (d) Statement 1 is false, and statement 2 is true.

Statement 1 is false. GST is an indirect tax and not a direct tax. It is levied on the supply of goods and services, and the burden of the tax is ultimately borne by the end consumer.

Statement 2 is true. GST is a comprehensive indirect tax that is levied on the supply of goods and services at each stage of the supply chain. It replaces multiple indirect taxes such as excise duty, service tax, value-added tax (VAT), and others, and aims to create a unified tax structure for goods and services across the country.

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