Question

Service tax in India was introduced in the year
1. 1994-95
2. 1996-97
3. 1998-99
4. 1991-92

Answer 1

Correct Answer - Option 1 : 1994-95

The correct answer is 1994-95.

• Service tax in India was introduced in the year 1994-95.
• Service tax:
  • The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption.
  • The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.
  • Applicable on the supply side:
  • GST is applicable on ‘supply of goods or services as against the old concept on the manufacture of goods or on sale of goods or on the provision of services.
  • Destination based Taxation:
    • GST is based on the principle of destination-based consumption taxation as against the present principle of origin-based taxation.
  • Dual GST:-
    • It is a dual GST with the Centre and the States simultaneously levying tax on a common base.
    • GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST).
    • Import of goods or services would be treated as inter-state supplies and would be subject to Integrated Goods & Services Tax (IGST) in addition to the applicable customs duties.