UPSC Exam > UPSC Questions > Consider the following statements:1. The GST ...
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Consider the following statements:
1. The GST compensation is paid out of Compensation Cess every two months by the Centre to states.
2. The taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the central government.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements:1. The GST compensation is paid out ...
Explanation:
Statement 1: The GST compensation is paid out of Compensation Cess every two months by the Centre to states.
The statement is correct. The Goods and Services Tax (GST) compensation is paid out of the Compensation Cess to the states every two months by the Central government. The GST compensation is provided to the states to make up for any revenue loss they may incur due to the implementation of GST. The compensation is calculated based on the difference between the revenue collected through GST and the revenue that would have been collected under the previous indirect tax regime.
Statement 2: The taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the central government.
The statement is correct. Taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the Central government. The composition scheme is a simplified tax scheme for small businesses with an annual turnover of up to Rs. 1.5 crore. Under this scheme, taxpayers are required to pay a fixed percentage of their turnover as GST and are not required to maintain detailed records or file regular returns. However, they are not eligible to collect the GST compensation cess from their customers.
Conclusion:
Both statements are correct. The GST compensation is indeed paid out of the Compensation Cess every two months by the Centre to the states. Taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the central government.
Statement 1: The GST compensation is paid out of Compensation Cess every two months by the Centre to states.
The statement is correct. The Goods and Services Tax (GST) compensation is paid out of the Compensation Cess to the states every two months by the Central government. The GST compensation is provided to the states to make up for any revenue loss they may incur due to the implementation of GST. The compensation is calculated based on the difference between the revenue collected through GST and the revenue that would have been collected under the previous indirect tax regime.
Statement 2: The taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the central government.
The statement is correct. Taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the Central government. The composition scheme is a simplified tax scheme for small businesses with an annual turnover of up to Rs. 1.5 crore. Under this scheme, taxpayers are required to pay a fixed percentage of their turnover as GST and are not required to maintain detailed records or file regular returns. However, they are not eligible to collect the GST compensation cess from their customers.
Conclusion:
Both statements are correct. The GST compensation is indeed paid out of the Compensation Cess every two months by the Centre to the states. Taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the central government.
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Consider the following statements:1. The GST compensation is paid out of Compensation Cess every two months by the Centre to states.2. The taxpayers who have opted for the GST composition scheme are not liable to collect and remit the GST compensation cess to the central government.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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