S1: GST is a destination-based tax. S2: GST revenue goes to the state where the goods are manufactured. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: GST is a destination-based tax. S2: GST revenue goes to the state where the goods are manufactured. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S2 only
D. S1 only
Answer: Option D
Solution (By JKSSB Mock Tests)
GST is a destination-based consumption tax. The revenue goes to the state where the goods or services are *consumed*, not where they are manufactured (which was the case under the origin-based CST). S1 is correct, S2 is incorrect.
A GST registered person purchased goods worth ₹1,18,000 (inclusive of GST @ 18%) and sold the same for ₹1,77,000 (inclusive of GST @ 18%). The net GST payable (output - input credit) is:
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