The correct answer is The Goods and Services Tax (Compensation to States) Acts. Key Points The Goods and Services Tax (GST) It is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. It is applicable to the ‘supply’ of goods or services as against the old concept on the manufacture of goods or on sale of goods or on the provision of services. It is based on the principle of destination-based consumption taxation as against the present principle of origin-based taxation. It is a dual GST with the Centre and the States simultaneously levying tax on a common base. GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST). Import of goods or services would be treated as inter-state supplies and would be subject to Integrated Goods & Services Tax (IGST) in addition to the applicable customs duties. An Act to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax in pursuance of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016. Hence, Option 3 is correct. CGST, SGST & IGST are levied at rates to be mutually agreed upon by the Centre and the States. The rates are notified on the recommendation of the GST Council. Initially, GST was levied at four rates viz. 5%, 12%, 16% and 28%. The schedule or list of items that would fall under these multiple slabs is worked out by the GST council.