Question

The Goods and Services Tax (GS

  • T was launched in India on 1st July 2017. Which of the following correctly describes its destination-based taxation principle?
A Tax is levied at the point of production and shared equally between the producing state and the consuming state
B Tax accrues to the state where the goods or services are finally consumed, not where they are produced
C Tax is collected entirely by the Central Government and redistributed to states based on population
D Tax is levied only on the final retailer and exempts all intermediate transactions in the supply chain
E Tax is uniform across all goods and services at a single rate of 18% with no exemptions
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