S1: GST is a destination-based consumption tax. S2: GST is levied only at the central level. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: GST is a destination-based consumption tax. S2: GST is levied only at the central level. Which statement(s) is/are correct?
A. S2 only
B. S1 only
C. Neither S1 nor S2
D. Both S1 and S2
Answer: Option B
Solution (By JKSSB Mock Tests)
GST is a destination-based tax, meaning the revenue goes to the state where the goods are consumed, not where they are produced. It is a dual GST, levied by both the Centre (CGST) and States (SGST). S1 is correct, S2 is incorrect.
Explanation:
DFL measures the sensitivity of EPS to changes in EBIT. If only debt is present, DFL = EBIT / (EBIT - I). If preference shares are also present, the formula includes the pre-tax equivalent of preference dividends, making D option correct.
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