Question

The 3 components of Goods and Services Tax (GST) are :
1. Direct tax, Indirect Tax and Income tax
2. Freight, octroi and Custom duty
3. VAT, service tax and Octroi
4. CGST, SGST, IGST
5.

Answer 1

Correct Answer - Option 4 : CGST, SGST, IGST

The correct answer is CGST, SGST, IGST.

• The 3 components of Goods and Services Tax (GST) are CGST, SGST, IGST.

• Goods and Services Tax (GST):
  • It is a value-added tax levied on most goods and services sold for domestic consumption.
  • GST to be levied by the Centre is called Central GST (CGST)
  • GST to be levied by the States is called State GST (SGST).
  • Import of goods or services is treated as inter-state supplies and is subject to Integrated Goods & Services Tax (IGST).
  • It is levied at four rate slabs that are 5%, 12%, 18%, and 28%. 
  • GST replaced the following taxes:
    • Central excise duty, services tax, additional customs duty, surcharges, state-level value-added tax, and Octroi.

• GST Council:
  • It is a constitutional body under Article 279A.
  • The council makes recommendations to the Union and State Government on issues related to GST.
  • It was introduced by the Constitution by the 101^st Amendment Act, 2016.
  • The GST Council is chaired by the Union Finance Minister.