Supply of all goods and/or services is taxable under GST. Discuss the validity of the statement. 2.5 Marks
Question
Supply of all goods and/or services is taxable under GST. Discuss the validity of the statement. 2.5 Marks
Solution
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Understanding the Statement: The statement asserts that all goods and services supplied are taxable under the Goods and Services Tax (GST) regime.
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Validity of the Statement: The statement is not entirely accurate. While GST is a comprehensive tax levy on manufacture, sale, and consumption of goods and services at a national level, not all goods and services are taxable under GST.
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Exceptions: There are certain goods and services that are exempted from GST. For instance, in India, goods like fresh fruits, vegetables, milk, bread, etc., and services like educational and health services are exempted from GST.
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Zero Rated Supplies: There are also zero-rated supplies, which are goods or services that are taxable, but the rate of tax is nil on their supply.
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Conclusion: Therefore, while GST is a broad-based tax, the statement that all goods and services supplied are taxable under GST is not entirely valid. There are exceptions and zero-rated supplies that are not subject to GST.
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