Out of the following. which are not the features of GST 2017 in India. (A) GST is applicable on 'supply' of Goods and Services. (B) GST is based on the principle of origin based taxation rather than principle of destination based consumption. (C) Import of Goods is treated as Inter-State supplies and would be subject to IGST in addition to applicable Custom Duties. (D) It is a dual taxation with Centre and State simultaneously levying it on a common base. (E) GST is applicable to all Goods and Services without any exemptions. Choose the correct answer from the options given below:
(B), (E) only
Understanding Key Features of GST in India
Let's analyze each statement provided regarding the features of GST 2017 in India to determine which ones are not correct features.
Analysis of GST Statements
- (A) GST is applicable on 'supply' of Goods and Services.
This statement is correct. One of the foundational principles of GST is that the tax is levied on the 'supply' of goods or services, replacing earlier taxes that were levied on specific events like manufacture, sale, or provision of service.
- (B) GST is based on the principle of origin based taxation rather than principle of destination based consumption.
This statement is incorrect. GST in India, like most modern GST systems globally, is based on the principle of destination based consumption. This means the tax revenue accrues to the state/location where the goods or services are finally consumed, not where they are produced or originated.
- (C) Import of Goods is treated as Inter-State supplies and would be subject to IGST in addition to applicable Custom Duties.
This statement is correct. Under the GST regime, the import of goods is considered an inter-state supply. Therefore, Integrated Goods and Services Tax (IGST) is levied on imports in addition to any applicable basic customs duty. This ensures a level playing field between domestically produced goods and imported goods.
- (D) It is a dual taxation with Centre and State simultaneously levying it on a common base.
This statement is correct. India adopted a dual GST model. Both the Central Government (levying CGST) and the State Governments (levying SGST) have the power to levy GST on the same intra-state supply of goods and services. Inter-state supplies are subject to IGST, which is collected by the Centre and apportioned between the Centre and the destination State.
- (E) GST is applicable to all Goods and Services without any exemptions.
This statement is incorrect. While GST is a comprehensive tax, it does have exemptions. Certain goods and services are exempted from GST. Furthermore, some items like petroleum products, alcohol for human consumption, and electricity are currently outside the purview of GST.
Identifying Non-Features of GST
Based on the analysis:
- Statement (A) is a feature of GST.
- Statement (B) is NOT a feature of GST (it's destination-based).
- Statement (C) is a feature of GST.
- Statement (D) is a feature of GST (dual GST).
- Statement (E) is NOT a feature of GST (there are exemptions).
Therefore, the statements that are not features of GST 2017 in India are (B) and (E).
Conclusion on Incorrect GST Features
The features listed that are not accurate descriptions of GST 2017 in India are (B) stating it's origin-based taxation and (E) stating it applies to all goods and services without exemptions.
Revision Table: Features of GST
| Statement | Is it a Feature of GST? | Explanation |
|---|---|---|
| (A) Supply-based tax | Yes | Tax levied on 'supply'. |
| (B) Origin-based taxation | No | It is destination-based consumption tax. |
| (C) Import treated as inter-state supply | Yes | Imports attract IGST + Custom Duties. |
| (D) Dual taxation (Centre & State) | Yes | CGST and SGST levied on same base for intra-state. |
| (E) Applicable to all with no exemptions | No | There are exempted goods/services and items outside GST. |
Additional Information on GST Principles
Understanding the core principles of GST is crucial. The destination principle is key, ensuring that tax revenue goes to the state where the consumption happens. The dual structure allows both central and state governments to levy tax simultaneously, reflecting India's federal structure. While aiming for a broad base, practical considerations led to certain exemptions and exclusions to ease implementation and address specific socio-economic factors.
Important Questions from Goods and Services Tax (GST)
_______ is a tax imposed on imports and exports of goods.
Which of the following is correct with respect to GST in India?
I. The GST Act was passed by the Parliament in 2016.
II. GST law came into force from July 2016.
In the 25th GST Council Meeting, held before the Budget 2018, rates for how many goods have been reduced?
- Since December 2022, the functions of the National Anti-Profiteering Authority established in association with GST reforms have been transferred to which body in India?
- Uninterrupted and seamless chain of Input Tax Credit (ITC) is a mechanism to avoid cascading of taxes in which of the following taxes?
