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Consider the following statement with respect to GST The revenue neutral rate is the rate at which the government"s revenue does not get impacted, due to the absence of pre-GST taxes Anti-profiteering provisions are added in GST to protect the interests of sellers. The composition scheme aims at making large corporates tax-compliant. Which of the statement/s given above is/ are incorrect? (a)1 and 2 only (b)1 and 3 only (c)2 and 3 only (d)1, 2, and 3 only?
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Consider the following statement with respect to GST The revenue neutr...
Statement 1: The revenue neutral rate is the rate at which the government's revenue does not get impacted, due to the absence of pre-GST taxes.

This statement is correct. The revenue neutral rate (RNR) is the rate at which the government's revenue remains the same after the implementation of the Goods and Services Tax (GST). It is the rate at which the total tax collection under GST is equal to the total tax collection under the pre-GST regime. The RNR is determined by taking into account the revenue from various taxes levied before the implementation of GST and estimating the revenue that would be generated under GST at different tax rates. The aim is to ensure that there is no significant impact on the government's revenue.

Statement 2: Anti-profiteering provisions are added in GST to protect the interests of sellers.

This statement is incorrect. Anti-profiteering provisions in GST are added to protect the interests of consumers, not sellers. These provisions are aimed at ensuring that the benefits of GST, such as lower tax rates and input tax credits, are passed on to the consumers by the businesses. The anti-profiteering provisions empower the National Anti-Profiteering Authority (NAA) to examine whether businesses are reducing prices in line with the reduced tax rates and to take necessary action if they are found to be profiteering.

Statement 3: The composition scheme aims at making large corporates tax-compliant.

This statement is incorrect. The composition scheme under GST is not specific to large corporates. It is a scheme that is available to small businesses with a turnover below a certain threshold. The aim of the composition scheme is to simplify the compliance requirements for small taxpayers. Under this scheme, eligible taxpayers can pay tax at a fixed rate on their turnover without the need to maintain detailed records and file regular returns. The composition scheme is not applicable to large corporates as they generally have a turnover that exceeds the threshold for eligibility.

Therefore, the correct answer is (c) 2 and 3 only.
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Consider the following statement with respect to GST The revenue neutral rate is the rate at which the government"s revenue does not get impacted, due to the absence of pre-GST taxes Anti-profiteering provisions are added in GST to protect the interests of sellers. The composition scheme aims at making large corporates tax-compliant. Which of the statement/s given above is/ are incorrect? (a)1 and 2 only (b)1 and 3 only (c)2 and 3 only (d)1, 2, and 3 only?
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Consider the following statement with respect to GST The revenue neutral rate is the rate at which the government"s revenue does not get impacted, due to the absence of pre-GST taxes Anti-profiteering provisions are added in GST to protect the interests of sellers. The composition scheme aims at making large corporates tax-compliant. Which of the statement/s given above is/ are incorrect? (a)1 and 2 only (b)1 and 3 only (c)2 and 3 only (d)1, 2, and 3 only? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statement with respect to GST The revenue neutral rate is the rate at which the government"s revenue does not get impacted, due to the absence of pre-GST taxes Anti-profiteering provisions are added in GST to protect the interests of sellers. The composition scheme aims at making large corporates tax-compliant. Which of the statement/s given above is/ are incorrect? (a)1 and 2 only (b)1 and 3 only (c)2 and 3 only (d)1, 2, and 3 only? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statement with respect to GST The revenue neutral rate is the rate at which the government"s revenue does not get impacted, due to the absence of pre-GST taxes Anti-profiteering provisions are added in GST to protect the interests of sellers. The composition scheme aims at making large corporates tax-compliant. Which of the statement/s given above is/ are incorrect? (a)1 and 2 only (b)1 and 3 only (c)2 and 3 only (d)1, 2, and 3 only?.
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