Assertion (A): GST is a destination-based tax.
Reason (R): GST is levied only on manufacturing.

Correct Answer: Option "A is true, but R is false"

Explanation:

To determine the correct option, let us analyze both the Assertion (A) and the Reason (R) individually:

1. Analysis of Assertion (A):
Assertion (A) states that "GST is a destination-based tax."
Goods and Services Tax (GST) is indeed a destination-based consumption tax. This means that tax is levied at the point of consumption, and the revenue accrues to the state where the goods or services are ultimately consumed, rather than the state where they were produced or manufactured. Therefore, Assertion (A) is true.

2. Analysis of Reason (R):
Reason (R) states that "GST is levied only on manufacturing."
GST replaced multiple indirect taxes (such as excise duty, VAT, service tax, etc.) and is a comprehensive tax levied on the supply of goods and services at every stage of the supply chain—from the manufacturer to the final consumer. It is not limited to manufacturing alone; it covers manufacturing, sale, and service provision. Therefore, Reason (R) is false.

Conclusion:
Since Assertion (A) is true and Reason (R) is false, the correct choice is A is true, but R is false.