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Consider the following statements.
Assertion (A): Under GST, the ability to tax goods and services and raise revenue shifted from origin states (where the good or service is produced) to destination states (where it is consumed).
Reason (R): The new system posed a risk of revenue uncertainty for some states. Parliament went for constitutional amendment bills to make a law to provide for compensation to states for five years to avoid any revenue loss due to GST.

Consider the following statements.
Assertion (A): Under GST, the ability to tax goods and services and raise revenue shifted from origin states (where the good or service is produced) to destination states (where it is consumed).
Reason (R): The new system posed a risk of revenue uncertainty for some states. Parliament went for constitutional amendment bills to make a law to provide for compensation to states for five years to avoid any revenue loss due to GST. Correct Answer Both (A) and (R) are true and R is the correct explanation of (A)

Related Questions

Which of the following statement is true regarding bills of parliament? Bills introduced in the Parliament are of two kinds: public bills and private bills (also known as government bills and private members’ bills respectively). The bills introduced in the Parliament can also be classified into four categories: Formal bills, Currency bills, Financial bills and Constitution amendment bills Financial bills,  are  concerned with financial matters  like taxation ,public expenditure etc. Constitution amendment bills, which are concerned with the amendment of the provisions of the Constitution.
Goods and Services Tax (GST) was introduced as a part of indirect tax reforms in India. Which of the following are the salient features of the GST? 1. GST is applicable on the manufacture of goods or on sale of goods or on the provision of services. 2. GST is applicable to the supply of goods or services. 3. GST is based on the principle of destination-based consumption taxation. 4. GST is levied at rates decided by GST Council. Select the correct answer using the code given below:
In the following question, sentences of a paragraph have been jumbled and labeled as A, B, C, and D. You are required to rearrange the jumbled sentences in the right order to form a meaningful and coherent paragraph and mark your response accordingly by selecting the correct option. A. The sellers usually add the tax expense into their costs, and the price the customers pay is inclusive of GST. B. The concept of GST is that it is an “Indirect Tax”, ie, this tax is not directly paid by customers to the government, but is rather levied on the manufacturer or seller goods and the providers of services. C. GST, or Goods and Services Tax, is a tax that customers have to bear when they buy any goods or services, such as food, clothes, electronics, items of daily needs, transportation, travel, etc. D. Thus, in most cases, you end up paying a tax even if you are not an income taxpayer.
Which of the following statements are not true about the process of Constitutional Amendment in India?
1. The Parliament can amend the Constitution with a special majority.
2. State Assemblies can propose amendment in the Constitution.
3. A Bill for Constitutional Amendment can be introduced only in the Lower House of the Parliament.
4. Deadlock between the two Houses of Parliament over a Bill for Constitutional Amendment can be removed by a joint session of the Parliament.
5. The President of India enjoys the veto power over Constitutional Amendment Bills passed by the Parliament.
Select the correct answer:
The following sentences form a paragraph. They are numbered a P, Q, R and S. These four parts are not given in their proper order. Read the sentences and choose the alternative that arranges them in a correct order. P. Also, the customers will have funds to spend because of lower tax rates.  Q. The Goods and Services Tax (GST) is an indirect tax which entails that the tax is approved till the last stage where it is the purchaser of the goods and services who bears the tax. R. It will substitute most other indirect taxes and synchronize the differential tax rates on mass-produced goods and services. S. The government of India claims that GST will enhance Indian GDP by 2%.
Goods and Services Tax (GST) is an indirect tax introduced in India in 2017 that is imposed on the supply of goods and services, and it subsumes all indirect taxes except few. It is a destination-based tax imposed on goods and services used, and it is not imposed at the point of origin from where goods come. GST also has a few components specific to state governments, central government and Union Territories (UTs). Which one of the following statements can be inferred from the given passage?
In the following question, the 1st and the last part of the sentence/ passage are numbered 1 and 6. The rest of the sentence/passage is split into four parts and named P, Q, R and S. These four parts are not given in their proper order. Read the sentence/passage and find out which of the four combinations is correct. 1. The Goods and Services Tax (GST) is imposed on the supply of products and/or services within the country. P. This can be achieved by charging uniform tax rates and eliminating economic barriers. Q. The objective of GST is to drive India towards becoming an integrated economy. R. These include Service Tax, Purchase Tax, Central Excise Duty, Value Added Tax, Entry Tax, Luxury Tax, Local Body Taxes, etc. S. It subsumes multiple indirect taxes that are imposed by the State Governments or the Central Government 6. Thus, it will make the country a common national market
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If M votes the same way that O dose on all three bills, which of the following can be determined ?
Which of the following category is NOT a right classification of the bills introduced in the Parliament? Ordinary bills, which are concerned with any matter other than financial subjects. Currency bills, which are concerned with the financial matters like taxation, public expenditure, etc. Financial bills, which are also concerned with financial matters ,also called as money bills. Constitution amendment bills, which are concerned with the amendment of the provisions of the Constitution.
Which of the following components are true about tax planning?
1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective.
2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency.
3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.
4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures.
5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.