Which one of the following statements is correct in relation to the GS

Which one of the following statements is correct in relation to the GST Bill passed by the Rajya Sabha in August 2016?

[amp_mcq option1=”It will replace all central taxes, duties, etc., only by a single tax.” option2=”It will subsume central as well as State taxes, duties, etc.” option3=”GST will be levied on alcoholic liquor for human consumption at a uniform rate of 25 percent.” option4=”Petroleum and petroleum products shall not be subjected to the levy of GST.” correct=”option2″]

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UPSC CDS-1 – 2017

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The correct statement in relation to the GST Bill passed by the Rajya Sabha in August 2016 is that it will subsume central as well as State taxes, duties, etc.

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services. It was designed to replace multiple cascading taxes levied by the central and state governments. Option B accurately reflects this core principle of GST implementation.

Option A is incorrect as GST is a dual GST (CGST and SGST/IGST), not a single tax replacing all central taxes. Option C is incorrect as alcoholic liquor for human consumption is kept outside the purview of GST. Option D is correct that petroleum products were kept outside GST at the time, but option B describes the fundamental nature and scope of the GST subsumption, making it a more comprehensive and correct statement about the bill’s purpose.

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