Question
Goods and Services Tax (GST) is an indirect tax introduced in India in 2017 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?
Official answer and solution
- Official answer
- D
- From
- Official GATE 2020 answer key
Solution
Compare each option directly with the facts explicitly stated in the passage.
The passage explicitly states: '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.'
This means GST is levied at the point of consumption or usage of goods and services, matching option (D).
Option (A) is contradicted because it is destination-based rather than production-based. Option (B) is contradicted by 'subsumes all indirect taxes except few'. Option (C) is contradicted by 'has a few components specific to ... Union Territories'.
D
The answer is the one in the official GATE answer key. The solution is this site's own explanation.
Source
- Paper
- GATE 2020 Computer Science and Information Technology (CS)
- Question
- 6 of 65, printed as GA Q.6
- Section
- General Aptitude
Report an error in this question
GATE questions are the work of the organising institutes. This site is independent and is not affiliated with them.