Question

In light of the GST Act, which of the following statements are true ?

1. GST is to be levied on supply of goods or services.


2. All transactions and processes would be only through electronic mode


3. Cross utilization of goods and services will be allowed.

• A. iii only
• B. i, ii
• C. All of these
• D. i only

Answer 1

Answer:

C. All of these

Read Explanation:

• GST, or Goods and Services Tax, is a comprehensive indirect tax imposed on the supply of goods and services throughout India.
• It is designed to replace multiple cascading taxes levied by the central and state governments, unifying the country's tax structure and creating a single, integrated market.
• The GST system is governed by the GST Council, which is responsible for making key decisions such as tax rates, exemptions, and thresholds.
• The main aim of implementing GST is to simplify the tax structure, reduce complexities, and promote ease of doing business. It helps streamline the taxation process, mitigate the cascading effect of taxes, and create a common national market.
• GST, or Goods and Services Tax, is imposed on the supply of goods or services at each stage of the supply chain. It replaces several indirect taxes that were previously levied by the central and state governments.
• GST regime does facilitate and encourage the use of electronic modes for various processes, including registration, filing returns, and making payments, for the ease and efficiency of taxpayers.
• Under the GST Act, businesses are permitted to cross-utilize goods and services to offset their tax liabilities. This allows for the adjustment of taxes paid on inputs against the taxes to be paid on the output, thus reducing the overall tax burden and preventing the cascading effect of taxes.

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