All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
UPSC Exam  >  UPSC Questions  >  Consider the following statement with respect... Start Learning for Free
SaveJoin the Discussion on the App
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?
Clear all your UPSC doubts with EduRev
Most Upvoted Answer
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.
Explore Courses for UPSC exam

Similar UPSC Doubts

Passage - 2Net profits are only 2.2% of their total assets for central public sector undertakings, lower than for the private corporate sector. While the public sector or the State-led entrepreneurship played an important role in triggering Indias industrialization, our evolving development needs, comparatively less-than-satisfactory performance of the public sector enterprises, the maturing of our private sector, a much larger social base now available for expanding entrepreneurship and the growing institutional capabilities to enforce competition policies would suggest that the time has come to review the role of public sector.What should the portfolio composition of the government be? It should not remain static all times. The airline industry works well as a purely private affair. At the opposite end, rural roads, whose sparse traffic makes tolling unviable, have to be on the balance-sheet of the State. If the government did not own rural roads, they would not exist.Similarly, public health capital in our towns and cities will need to come from the public sector. Equally, preservation and improvement of forest cover will have to be a new priority for the public sector assets.Take the example of steel. With near-zero tariffs, India is a globally competitive market for the metal. Indian firms export steel into the global market which demonstrates there is no gap in technology. Indian companies are buying up global steel companies, which shows there is no gap in capital availability. Under these conditions, private ownership works best.Private ownership is clearly desirable in regulated industries, ranging from, finance to infrastructure, where a government agency performs the function of regulation and multiple competing firms are located in the private sector. Here, the simple and clean solution - government as the umpire and the private sector as the players is what works best. In many of these industries, we have a legacy of government ownership, where productivity tends to be lower, fear of bankruptcy is absent, and the risk of asking for money from the tax payer is ever present. There is also the conflict of interest between government as an owner and as the regulator.The formulation and implementation of competition policy will be more vigorous and fair if government companies are out of action.Q.The portfolio composition of the government refers to

Top Courses for UPSCView all

Top Courses for UPSC

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?
Question Description
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?.
Solutions 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? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of 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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an ample number of questions to practice 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? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup