The correct answer is: C. All the states
The introduction of GST has affected the revenue of all the states. This is because GST is a destination-based tax, which means that the tax is levied on the value of goods and services at the point of consumption, not at the point of production. This has led to a loss of revenue for manufacturing states, as they are no longer able to collect tax on goods that are consumed in other states. Consuming states, on the other hand, have benefited from the introduction of GST, as they are now able to collect tax on goods that are consumed within their borders.
The Central Government has also been affected by the introduction of GST. This is because the Central Government used to collect a variety of taxes, including excise duty, service tax, and VAT. However, with the introduction of GST, these taxes have been subsumed into a single tax.
This has led to a loss of revenue for the Central Government.Overall, the introduction of GST has had a significant impact on the revenue of all the states and the Central Government. It is important to note that the impact of GST on revenue is still being assessed, and it is possible that the long-term impact will be different from the short-term impact.
Here is a brief explanation of each option:
- Option A: Consuming states. Consuming states are states where goods and services are consumed. With the introduction of GST, consuming states have benefited from the fact that they are now able to collect tax on goods that are consumed within their borders. This has led to an increase in revenue for consuming states.
- Option B: Manufacturing states. Manufacturing states are states where goods and services are produced. With the introduction of GST, manufacturing states have lost revenue, as they are no longer able to collect tax on goods that are consumed in other states. This has led to a decrease in revenue for manufacturing states.
- Option C: All the states. As explained above, the introduction of GST has affected the revenue of all the states. This is because GST is a destination-based tax, which means that the tax is levied on the value of goods and services at the point of consumption, not at the point of production. This has led to a loss of revenue for manufacturing states, as they are no longer able to collect tax on goods that are consumed in other states. Consuming states, on the other hand, have benefited from the introduction of GST, as they are now able to collect tax on goods that are consumed within their borders.
- Option D: Central Government. The Central Government has also been affected by the introduction of GST. This is because the Central Government used to collect a variety of taxes, including excise duty, service tax, and VAT. However, with the introduction of GST, these taxes have been subsumed into a single tax. This has led to a loss of revenue for the Central Government.