Q:
Which one of the following statements is correct in relation to the GST Bill passed by the Rajya Sabha in August 2016?
Answer & Explanation
Answer: B) It will subsume central as well as State taxes, duties, etc.
Explanation: Goods and Services Tax (GST) will replace all central as well as state taxes by a single tax. GST will subsume various Central indirect taxes, including the Central excise duty,Countervailing duty, Service tax, etc. It also subsumes State Value Added Tax(VAT), Octroi and entry tax, Luxury tax, etc. Petroleum products like kerosene, naphtha and LPG will be under GST, while five items, including crude oil, natural gas, aviation fuel, diesel and petrol have been excluded. Alcohol for human consumption will be out of GS
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