S1: GST is levied on the supply of goods and services. S2: GST subsumed all indirect taxes in India. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: GST is levied on the supply of goods and services. S2: GST subsumed all indirect taxes in India. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S2 only
D. S1 only
Answer: Option D
Solution (By JKSSB Mock Tests)
GST is a comprehensive indirect tax levied on the supply of goods and services. However, it did not subsume *all* indirect taxes; for example, basic customs duty, stamp duty, and electricity duties are still outside GST. S1 is correct, S2 is incorrect.

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Practice More Accountancy and Book Keeping Questions

Question #1
According to the Indian Financial System, 'Repo Rate' is the rate at which:
A. Commercial banks lend to the public
B. Banks lend to each other overnight
C. RBI lends short-term funds to commercial banks
D. RBI borrows from commercial banks

Correct Answer: Option C


Explanation:
The Repurchase (Repo) rate is the rate at which the RBI lends money to commercial banks to manage short-term liquidity.

Question #2
The Income Tax Act, 1961 classifies income under how many heads?
A. Four
B. Six
C. Seven
D. Five

Correct Answer: Option D


Explanation:
Heads of income: Salary, House property, Business/profession, Capital gains, Other sources. Total five heads.

Question #3
The 'Faceless Penalty' scheme under income tax was introduced in:
A. 2021
B. 2019
C. 2017
D. 2020

Correct Answer: Option A


Explanation:
Faceless penalty scheme was launched in 2021 to impart transparency.