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.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Reserve Bank of India' (RBI) regulates:
A. Pension funds
B. Monetary policy, banking, and financial system stability
C. Insurance companies
D. Stock exchanges

Correct Answer: Option B


Explanation:
RBI is the central bank responsible for monetary policy and banking regulation.

Question #2
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:
A. ₹10,800
B. ₹9,000
C. ₹27,000
D. ₹18,000

Correct Answer: Option B


Explanation:
Input GST = 1,18,000 * 18/118 = ₹18,000. Output GST = 1,77,000 * 18/118 = ₹27,000. Net payable = 27,000 - 18,000 = ₹9,000.

Question #3
A favourable variance in materials cost indicates that:
A. Material price increased in the market
B. Sales volume increased
C. Actual cost of materials was less than the standard cost
D. More material was used than budgeted

Correct Answer: Option C


Explanation:
Favourable means beneficial to profit, which happens when actual costs are lower than standard expected costs.