Which of the following is an example of revenue receipt of the government?

Question

Question

This question was previously asked in

SSC CGL 2023 Tier-I Official Paper (Held On: 26 Jul 2023 Shift 3)

Answer 1

The correct answer is GST collected by the government.Key Points

Revenue receipt refers to the income received by the government in the normal course of its business activities, such as taxes, duties, fees, and other charges.
GST (Goods and Services Tax) is a tax levied on the supply of goods and services in India.
It is a revenue receipt for the government, as it is collected on behalf of the government by the businesses that are registered under GST.

Additional Information

Receipts from sale of shares of public sector companies is a capital receipt as it involves the sale of assets.
Recovery of loans is also a capital receipt as it involves the recovery of loans given by the government.
Borrowings from public is a capital receipt as it involves the borrowing of funds by the government from the public.
Capital receipts are those that either increase the government's liabilities or lower the value of its assets.
- In essence, these are the loans that the government has obtained from a variety of sources to pay for long-term developmental requirements.
- They are non-recurring in nature.