Goods and Services Tax (GST) is an indirect tax introduced in India in that is imposed on the supply of goods and services, and it subsumes all indirect taxes except few. It is a destination-based tax imposed on goods and services used, and it is not imposed at the point of origin from where goods come. GST also has a few components specific to state governments, central government and Union Territories (UTs).
Which one of the following statements can be inferred from the given passage?
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Answer: D
To find the correct inference, let us analyze each option against the statements provided in the passage:
- Option A: "GST is imposed on the production of goods and services."
Incorrect. The passage states that GST is imposed on the supply of goods and services and is a destination-based tax, explicitly mentioning that "it is not imposed at the point of origin" (where production typically occurs). - Option B: "GST includes all indirect taxes."
Incorrect. The passage states that GST "subsumes all indirect taxes except few." Therefore, it does not include all indirect taxes. - Option C: "GST does not have a component specific to UT."
Incorrect. The passage explicitly mentions that "GST also has a few components specific to state governments, central government and Union Territories (UTs)." - Option D: "GST is imposed at the point of usage of goods and services."
Correct. The passage states: "It is a destination-based tax imposed on goods and services used...". This directly implies that the tax is levied at the point of consumption/usage rather than the point of origin.
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