S1: GST is a comprehensive indirect tax. S2: GST is levied on the manufacture of goods. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: GST is a comprehensive indirect tax. S2: GST is levied on the manufacture of goods. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S1 only
D. S2 only
Answer: Option C
Solution (By JKSSB Mock Tests)
GST is a comprehensive indirect tax levied on the *supply* of goods and services. It replaced the tax on manufacture (Excise Duty) and tax on sale (VAT). S1 is correct, S2 is incorrect.
Explanation:
Direct taxes, like Income Tax and Wealth Tax, are levied directly on the income and wealth of individuals or entities. The burden of direct taxes cannot be shifted to someone else. S1 is correct, S2 is incorrect.
Explanation:
Material Price Variance isolates the price effect by multiplying the difference in price (Standard - Actual) by the Actual Quantity purchased.
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