Q130
Indian EconomyPublic Finance, Budget & Taxation
GST is imposed on
- a.production of goods and services.
- b.consumption of goods and services.
- c.exports of goods and services.
- d.imports of goods and services.
Answer: (B) consumption of goods and services.
GST is a destination-based tax on consumption: it is levied at each stage of supply but the burden finally falls on the consumer, and the tax accrues to the State where goods or services are consumed. Exports are zero-rated, and it is not a tax on production as such.