Assertion (A): GST is a destination-based tax.

Solution

• Assertion (A) is True: Goods and Services Tax (GST) is indeed a destination-based consumption tax. This means the tax is collected by the state where the goods or services are finally consumed, rather than the state where they were produced. • Reason (R) is False: GST is not levied "only" on manufacturing. It is a multi-stage tax levied on every value addition, including manufacturing, sale, and provision of services. • Unlike the old Excise Duty which was specific to manufacturing, GST covers the entire supply chain until the final retail sale.