Which of the following phrases (1), (2), (3) and (4) given below should be placed in the blank provided so as to make the paragraph meaningfully and grammatically correct. If none of the options are appropriate, mark (5), i.e. None of these as your answer.
GST is essentially a consumption tax and is levied at the final consumption point. The principle used in GST taxation is Destination Principle. It is levied on the value addition and provides set offs. As a result, it avoids the cascading effect or tax on tax which increases the tax burden on the end consumer. It is collected on goods and services at each point of sale in the supply line. The GST that a merchant pays to procure goods or services ___________________.
1
has to be paid after 5 years
2
is to be paid by the government to relax the merchant
3
is negligible on the supply of goods and services
4
can be set off later against the tax applicable on the supply of goods and services.
5
None of these