Assertion (A): GST is a comprehensive levy and collection on both goods and services at the same rate with the benefit of input tax credit or subtraction of value.

Reasoning (R): GST is a destination-based tax and levied at a single point at the time of consumption of goods and services by the end consumer.

Explanation:

Understanding GST:
GST, which stands for Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services. It is a single tax that subsumes various indirect taxes like excise duty, service tax, VAT, etc., into one unified tax structure. GST is designed to create a seamless and efficient tax system by eliminating the cascading effect of multiple taxes.

Comprehensive Levy:
GST is a comprehensive levy because it is applicable to both goods and services. Previously, there were separate taxes for goods (like excise duty) and services (like service tax), leading to complexities and challenges for businesses. With the implementation of GST, a single tax is applied to both goods and services, making the tax system more streamlined and simplified.

Collection at the Same Rate:
Under GST, goods and services are taxed at the same rate. This means that a specific percentage of tax is applied to the value of both goods and services. The uniform tax rate ensures fairness and equality in the taxation of different sectors and promotes a level playing field for businesses.

Input Tax Credit:
One of the key features of GST is the input tax credit (ITC) mechanism. This allows businesses to claim credit for the tax paid on inputs (e.g., raw materials, goods, services) used in the production or provision of goods and services. By availing ITC, businesses can reduce their tax liability by subtracting the value of taxes already paid on inputs from the tax payable on the final product or service. This helps in avoiding the cascading effect of taxes and eliminates the tax on tax.

Destination-Based Tax:
GST is a destination-based tax, which means that it is levied and collected at the place of consumption of goods and services. Unlike the previous tax regime where taxes were levied at each stage of the supply chain, GST is applied only at the final point of consumption. This simplifies the tax structure and reduces the compliance burden for businesses.

Conclusion:
In conclusion, the assertion that GST is a comprehensive levy and collection on both goods and services at the same rate with the benefit of input tax credit is correct. GST has transformed the indirect tax landscape in India by unifying multiple taxes, applying a single tax rate, and providing benefits like input tax credit. The destination-based nature of GST ensures that taxes are levied at the point of consumption, making the tax system more efficient and transparent.