About GST

GST stands for Goods & Service Tax. It is a type of indirect tax in India. there are 5 different tax slabs available under GST, such as 0%, 5%, 12%, 18%, and 28%. some products, such as Petroleum, alcohol, and electricity have not come under GST. It is implemented on 01 July 2017. There are 2 types of GST - CGST & SGST. CGST stands for Central Goods & Service Tax & SGST stands for State Goods and Service Tax. GST rules & regulations are governed by the GST Council, which works under the finance ministers of the central government & all states of India.

The notion of GST was introduced by the then Prime Minister in the year 2000, and a committee was formed to draft a model for it, i.e. to develop a framework for GST in India. Then, in 2003, the federal government established a task force on fiscal responsibility and budget management, which pushed for the nationwide implementation of GST in 2004.

Enactment

Prior to the introduction of state GST legislation, the Central GST Acts were passed. Some of the state legislatures were early birds in passing their State GST Laws, such as Rajasthan, Goa, Telangana, Chattisgarh, Bihar, and Punjab. Except for Jammu and Kashmir, all states and union territories had enacted their respective SGST and UTGST Acts by June 30, 2017. As of the 1st of July, 2017, the extraordinary reform in the field of indirect taxes was finally introduced, however, it came to light in Jammu & Kashmir only on the 8th of July, 2017

Definition

GST is a unique reform with respect to the mechanism of indirect taxes in India which aims to design a common national market. A plethora of indirect taxes has been subsumed under India, such as VAT, Luxury Tax, Service Tax, CST, Entry Tax, Entertainment Tax, etc. GST is a value-added tax that is imposed on supply, in other words, GST is levied on manufacturing as well as the sale of goods and rendering of services.

GST offers

GST offers an umbrella for the chain of tax credits, beginning right from the point of production of goods or provision of services, up to the retailer’s or even consumer’s level, indicating that tax is levied only on the addition in value that occurs at each progressing stage of the supply chain.

Following are some of the multiple choice questions on the GST with answers that will help the students in developing their knowledge.

GST MCQ

1. What is the full form of GST?

  • Goods and Services Tax
  • Good and Serve Tax
  • Goods and State Tax
  • Goods and Supply Tax

2. GST was implemented in India from

  • 1st January 2017
  • 1st April 2017
  • 1st March 2017
  • 1st July 2017

3. HSN Code Stands for

  • Home Shopping Network
  • Harmonised System of Nomenclature
  • Harmonised System Number
  • Home State Number

4. In India GST became effective from

  • 1st April, 2017
  • 1st January, 2017
  • 1st July, 2017
  • 1st March, 2017

5. ITC stands for

  • Indirect Tax collection
  • Input tax credit
  • Input tax claim
  • Income and tax credit

6. Which one of the following is true?

  • A person can collect tax only he is registered
  • Registered person not liable to collect tax till his aggregate turnover exceeds threshold limit
  • A person can collect the tax during the period of his provisional registration
  • None of the above

7. The value of supply of goods and services shall be the

  • Transaction value
  • MRP
  • Market Value
  • None of above

8. Which of the following tax is not subsumed in Gst ?

  • Stamp Duty
  • Entertainment Tax
  • VAT
  • Entry Tax

9. GST is a consumption of goods and service tax based on

  • Dividend
  • Destiny
  • Duration
  • Destination

10. How many types of taxes will be in Indian GST?

  • 2
  • 3
  • 4
  • 5

11. SAC Code Stands for

  • Services Accounting Code
  • Software Accounting Code
  • System Accounting Code
  • Service Application Code

12. Can a registered person under Composition Scheme claim input tax credit?

  • Yes
  • No
  • Input tax credit on inward supply of goods only can be claimed
  • Input tax credit on inward supply of services only can be claimed

13. How will the goods and services be classified under GST regime?

  • SAC/HSN Code
  • HSN Code
  • SAC Code
  • GST Code

14. Which of the following taxes will be levied on Imports of goods and services?

  • CGST
  • SGST
  • IGST
  • Exempt

15. What is the validity of the registration certificate?

  • Five years
  • Ten years
  • No validity
  • Valid till it is cancelled

16. Which of the following tax rate is not applicable under the GST?

  • 25
  • 18
  • 12
  • 5

17. What is date of receipt of payment?

  • Date of entry in the books
  • Date of payment credited into bank account
  • Earlier of (a) and (b)
  • Date of filing of return

18. Input Tax credit as credited in Electronic Credit ledger can be utilized for

  • Payment of Interest
  • Payment of penalty
  • Payment of Fine
  • Payment of Taxes

19. The time limit to pay the value of supply with taxes

  • 90 days
  • 6 months
  • 180 days
  • 365 dyas

20. Place of supply in case of installation of elevator is

  • Where the movement of elevator commences from the supplier’s place.
  • Where the delivery of elevator is taken.
  • Where the installation of elevator is made.
  • Where address of the recipient is mentioned in the invoice.

21. Input tax credit on capital goods and Inputs can be availed in

  • In thirty six installments
  • In twelve installments
  • In one installment
  • In six installments

22. When does liability to pay GST arise in case of supply of goods?

  • On raising of invoice
  • At the time of supply of goods
  • On receipt of payment
  • Earliest of any of above

23. Can a person apply for registration without PAN

  • No
  • Yes

24. GST was implemented on

  • 1st june 2017
  • 1st july 2017
  • 1st april 2016
  • 1st june 2014

25. When can a registered person avail credit on inputs?

  • on receipt of goods
  • on receipt of documents
  • Both
  • None of the above

26. What type of tax is GST?

  • Indirect Tax
  • Direct Tax
  • Both
  • None of these

27. PAN issued under the Income Tax Act is mandatory for grant of registration.

  • It is one of the document listed.
  • Yes, but non-resident taxable person may be granted registration on the basis of any other document.
  • No, for persons who are required to deduct tax at source u/s 51 shall have TAN in lieu of PAN.
  • Both (b) and (c)

28. What deductions are allowed from the transaction value

  • Discounts mention on invoice
  • Packing Charges mention on invoice
  • Any amount paid by customer on behalf of the supplier
  • Freight charges mention on invoice

29. Under what circumstances physical verification of business premises is mandatory?

  • Physical verification of business premises is a discretionary power of proper officer.
  • If additional information for registration asked by the proper officer is not submitted within specified time.
  • If certificate of registration is obtained on misrepresentation of facts.
  • If photograph of the business premise is not uploaded in the common portal within specified time.

30. What is location of supply in case of importation of goods?

  • Customs port where the goods are cleared
  • Location of the importer
  • Place where the goods are delivered after clearance from customs port
  • Owner of the goods

31. Is there any ceiling limit prescribed on the rate under IGST?

  • 12%
  • 18%
  • 28%
  • 40%

32. Provisional Input tax credit can be utilized against

  • Any Tax liability
  • Self Assessed output Tax liability
  • Interest and Penalty
  • Fine

33. What is the maximum rate prescribed under CGST?

  • 12%
  • 20%
  • 28%
  • 18%

34. When can the transaction value be rejected for computation of value of supply

  • When the buyer and seller are not related and price is not the sole consideration
  • When the buyer and seller are related or price is not the sole consideration
  • It can never be rejected
  • When the goods are sold at very low margins

35. Matching of Input Tax credit on inward supply by recipient is undertaken with

  • Monthly return filed by the supplier
  • Outward supply filed by the supplier
  • Invoices maintained by the supplier
  • None of the above

36. Which of the following requires amendment in the registration certificate?

  • Change of name of the registered person
  • Change in constitution of the registered person
  • Switching over form composition scheme to normal scheme or vice versa.
  • All of the above

37. Who are mandatorily required to obtain registration?

  • Every Person
  • For an agriculturist or exclusively engaged in supplying exempt goods or services is not required and for others if specified threshold limit exceeds in a financial year
  • Not required for an agriculturist or person exclusively engaged in supplying exempt goods or services
  • No, only if specified threshold exceeds in a financial year then only need to obtain

38. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme?

  • Rs.75 lacs
  • Rs.1 crore
  • Rs.1.5 crore
  • None of the above

39. Which Form Is to be used for Registration?

  • Form GST REG-01
  • Form GST REG
  • Form GSTR-2
  • Form GSTR 1A-B

40. Maximum rate prescribed under UTGST/SGST?

  • 14%
  • 20%
  • 28%
  • 30%

41. What is the rate applicable under CGST to a registered person being a hotelier opting to pay taxes under composition scheme?

  • 1%
  • 0.5%
  • 2.5%
  • None of the above

42. What is time of supply in GST?

  • Date when the supplier receives the payment or the date of invoice whichever is earlier.
  • Date on which dealer enter the payment in their book
  • Date on which the payment is credited to their account
  • Date of Invoice

43. Which code is used to classify goods and services under GST?

  •  HSN Code
  • SAC/HSN Code
  • GST Code
  • SAC Code

44. How a person can apply for registration?

  • Filing FORM GST REG-01 along with necessary documents with the jurisdictional proper officer.
  • Filing FORM GST REG-01 electronically in the common portal and uploading the required documents along with the application.
  • Uploading necessary documents electronically in the common portal and also submitting manually to the jurisdictional proper officer.
  • None of the above

45. Can the taxable person under Composition Scheme claim input tax credit

  • Yes
  • No
  • Only in some cases
  • Cant say

46. For an E-commerce operator registration threshold limit is?

  • Rs.20 lacs
  • Rs.50 lacs
  • Rs.75 lacs
  • None of above

47. In case supplier has deposited the taxes but the receiver has not received the goods, is receiver entitled to avail credit?

  • Yes, it will be automatically show in recipient monthly returns.
  • No, as one of the conditions of section 16(2) is not fulfilled.
  • Yes if the receiver can prove later that goods are received subsequently
  • None of the above

48. IGST credit shall first be utilised towards payment of

  • CGST
  • SGST
  • IGST
  • UTGST

49. Composite supply means

  • Two or more supplies; Naturally Bundled; supplied in conjuction; principal supply
  • Two or more supplies; Dealer Bundled; supplied as individual

50. Any input tax paid on purchase of goods or services by an assessee for employees is eligible for ITC?

  • No
  • Yes
  • Yes, on the services notified which are obligatory for an employer to provide to its employees under any law for the time being in force
  • Not applicable

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