Taxation · Goods and Services Tax
Goods and Services Tax (GST) is often described as a destination-based indirect tax because the tax accrues to the jurisdiction where final consumption occurs. Which of the following best captures the meaning of destination-based taxation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Tax accrues to the jurisdiction where the goods or services are consumed rather than produced✓
- 2Tax is imposed only at the first stage of production
- 3Tax is payable only by exporters of goods
- 4Tax is collected only where goods are manufactured
Correct answer
Tax accrues to the jurisdiction where the goods or services are consumed rather than produced
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