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GST, or Goods and Services Tax, is indeed a destination-based consumption tax, which is why Option 1 is correct. This means that the tax is collected where the goods are consumed or services are used, rather than where they are produced or originated.
Option 2 suggests GST is an origin-based production tax, which is incorrect. An origin-based tax would imply the tax is applied where goods are produced or services originate, contrary to the correct definition of GST.
Option 3, although it mentions "destination-based," incorrectly describes GST as a sales tax on transactions. Whilst GST does apply to transactions, it`s a consumption tax rather than simply a sales tax.
Option 4, like Option 2, incorrectly identifies GST as an origin-based tax, this time being “on sales transactions.” This is incorrect as GST is not applied in the place of origin, but instead on the consumption of goods or services.