What is destination principle of taxation?

The destination principle is a concept of international taxation which allows for value added taxes to be retained by the country where the taxed product is being sold. They are collected on imports and rebated on exports. This principle also is applied to the Goods and Services Tax of several countries like India.

Why GST is known as consumption based tax?

GST is called a consumption based tax because of it was payable to the state in which goods or services are actually consumed. Since GST is a consumption based tax, tax revenue will be levied and collected by the consuming state, and this helps the consuming state to protect their tax base.

Is GST a destination based tax?

GST is a destination based tax, i.e., the goods/services will be taxed at the place where they are consumed and not at the origin.

Is GST consumption based tax?

Goods and services tax (GST), a multi-stage consumption-based value added tax (VAT) on goods and services is heralded as one of the most noteworthy indirect tax reforms in India. GST is said to be destination-based or consumption-based tax. Hence, the place of consumption will decide the State that will collect tax.

What are the four tax slabs of GST?

Table of contents

• As per 23rd GST Council meeting on 10th November 2017.
• GST Rates Structure for Goods and services under 5\%, 12\%, 18\% & 28\%
• 5\% Tax Slab.
• 18\% Tax slab.

What is description in GST?

The goods and services tax (GST) is a tax on goods and services sold domestically for consumption. The tax is included in the final price and paid by consumers at point of sale and passed to the government by the seller. The GST is a common tax used by the majority of countries globally.

Why is GST called consumption based tax?

Which of the following statement is correct about GST?

(i) GST is the ‘one point tax’. (ii) This aims to replace all direct taxes levied on goods and services by the Central and State Governments. (iii) It will be implemented from 1 July 2017 throughout the country. (iv) It will unified the tax structure in India.