Q. With reference to the Goods and Services Tax (GST) system in India, consider the following statements: - GST was implemented in India on July 1, 2017, to simplify the taxation process.
- The highest GST rate in India is 28%, applicable to luxury goods and services.
- GST has replaced multiple indirect taxes, including excise duty and service tax.
- GST is governed by a council consisting of the Union Finance Minister and State Finance Ministers.
How many of the above statements are correct?
Answer:
All four
Notes: - GST was implemented in India on July 1, 2017, to simplify the taxation process: This is correct. GST aimed to unify the complex tax structure into a single tax regime.
- The highest GST rate in India is 28%, applicable to luxury goods and services: This is correct. Items like luxury cars and tobacco products fall under this rate.
- GST has replaced multiple indirect taxes, including excise duty and service tax: This is correct. It streamlined the tax system by subsuming various taxes.
- GST is governed by a council consisting of the Union Finance Minister and State Finance Ministers: This is correct. The GST Council is responsible for making recommendations on GST rates and policies.
Thus, all four statements are correct.