GST AND MCQs
GST is the value added tax levied on most goods and services sold for domestic consumption. In India, GST is covered about all the indirect taxes which will merge into single tax. GST was introduced as 101 Amendment Act. Goods and Services Tax is governed by the GST Council chaired by Union Finance Minister.
GST Council :The mechanism of the GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among states. The GST Council shall establish to adjudicate disputes arising out of its recommendation or implementation thereof.
The GST Council is headed by Union Finance Minister and 5 members. The members are the state finance ministers.
Features of GST :
1) Destination Based Consumption Tax : GST would be a destination based consumption tax. This means that tax would accrue to the State or the Union Territory where consumption takes place. It would be a dual GST with the centre and states simultaneously levying tax based.
a) CGST (Central Tax) – The GST to be levied by the centre on intra-state supply of goods and services would be called Central tax.
b) SGST (State Tax) – The GST to be levied by the States including Union territories with legislature/ Union Territories without legislature would be called the State tax/ Union territory tax (UGST) respectively.
2) Application of GST :The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products viz. petroleum, crude, motor spirit, high speed diesel, natural gas and aviation turbine fuel. The GST would replace the following taxes currently levied and collected by the Centre:
Central Excise Duty
Duties of Excise
Special Additional Duty of Customs
Service Tax
Central Surcharges and Cesses so far as they relate to supply of goods and services.
3) State Taxes that would be subsumed under the GST :
Following are the taxes that would be subsumed under the GST are:
State VAT
Central Sales Tax
Luxury Tax
Entry Tax
Entertainment and Amusement Tax
Taxes on advertisement
Purchase Tax
Taxes on lotteries, betting and gambling
State Surcharges and Cesses so far as they relate to supply of goods and services.
4) Threshold Exemption :Taxpayers with an aggregate turnover in a financial year up to Rs 20 lakhs would be exempt from tax. Aggregate turnover shall be computed on all India basis.
For eleven Special Category States, like those in the North- East and the hilly States, the exemption threshold shall be Rest. 10 lakhs.
All taxpayers eligible for threshold exemption will have the option of paying tax with Input Tax Credit.
Taxpayers making inter-state supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption.
5) Consumption Levy :Small taxpayers with an aggregate turnover in a financial year up to Rest 50 lakhs shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The rate of tax for CGST and SGST each shall not exceed-
2.5% in case of restaurants
1% of the turnover in a state/UT in case of a manufacturer
0.5% of the turnover in state/UT in case of other suppliers.
6) HSN (Harmonized System of Nomenclature) code :HSN should be used for classifying the goods under the GST regime.
Taxpayers whose turnover is above Rs 1.5 crore but below Rs 5 crore shall use 2-digit code.
Taxpayers whose turnover is Rs 5 crore and above shall use 4-digit code.
Taxpayers whose turnover is below Rs 1.5 crore are not required to mention HSN code in their invoices.
7) Import of goods and services :Import of goods and services would be treated as interstate supplies and would be subject to IGST in addition to the applicable custom duties.
Benefits of GST :
1) GST brings benefit to all stakeholders of industry, government and the consumer. It will lower the cost of goods and services give a boost to the economy and make the products and services .
Throgh Some MCQs about all clear concept of GST:-
1). In India GST came effective from July 1st, 2017. India has chosen _________ model of dual – GST.
a) USA
b) UK
c) Canadian
d) China
e) Japan
Answer: (C).
2). How many countries have dual – GST model?
a) 5
b) 8
c) 10
d) 14
e) None of these
Answer: (E). Till now Canada only has dual GST model but now India also started to use dual-GST model.
3). Which of the following country is the first one to implement GST?
a) USA
b) France
c) China
d) Switzerland
e) Germany
Answer: (B). France implemented GST in 1954.
4). Around how many countries adopted GST?
a) 90
b) 120
c) 140
d) 160
e) 200
Answer: (D).
5). Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) USA
d) Australia
e) India
Answer: (E). India has the maximum tax slab (28%) compared to other countries.
6). Which of the following country has the second highest tax slab?
a) Australia
b) Netherland
c) Argentina
d) Ireland
e) South Korea
Answer: (C). Argentina has the second highest tax slab 27%
7). Indian GST model has _________rate structure.
a) 3
b) 4
c) 5
d) 6
e) 2
Answer: (B). In India GST model has 4 rate structure. They are 5%, 12%, 18% and 28%
8). How many types of taxes will be in Indian GST?
a) 2
b) 3
c) 4
d) 5
e) 6
Answer: (B). Central GST (CGST), State GST (SGST) and IGST are three types of taxes.
9). What does “I” stands for in IGST?
a) International
b) Internal
c) Integrated
d) Intra
e) Innovation
Answer: (C).
10). The tax IGST charged by _________Government.
a) Central
b) State
c) Concerned department
d) Both a and b
e) All a, b and c
Answer: (A).
11). The maximum rate prescribed under IGST is _________.
a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit
Answer: (D).
12). In India GST was first proposed in _________.
a) 1993
b) 1996
c) 1999
d) 2000
e) 2002
Answer: (D).
13). GST is a _________ based tax on consumption of goods and services.
a) Duration
b) Destination
c) Dividend
d) Development
e) Destiny
Answer: (B). main objective of GST is eliminate excessive taxation
14). GST comes under which amendment bill?
a) 118
b) 120
c) 122
d) 115
e) 129
Answer: (C).
15). Under which Act GST was introduced?
a) 100
b) 101
c) 102
d) 103
e) 104
Answer: (B)
16). GST council formation based on Article number _________.
a) 279A
b) 289A
c) 266A
d) 255A
e) 286A
Answer: (A)
17). The headquarters of GST council is _________.
a) Mumbai
b) New Delhi
c) Ahmadabad
d) Hyderabad
e) Lucknow
Answer: (B).
18). Who is the chairman of GST council?
a) President of India
b) Prime Minister
c) Finance Minister
d) RBI Governor
e) Finance secretary
Answer: (C). Arun Jaitley is the current chairman of GST council
19). _________ is GST Finance Ministers Panel Chairman.
a) Amit Mishra
b) Amit Malhodra
c) Amit Chandresekar
d) Amit Sastri
e) Amit kohli
Answer: (A). Amit Mishra (West Bengal Finance Minister) is the Finance Ministers Panel Chairman.
20). _________ is the first state to ratify GST bill.
a) Andhra Pradesh
b) Assam
c) Arunachal Pradesh
d) Bihar
e) Telangana
Answer: (B)
21). _________ is the first state that passed GST Bill.
a) Andhra Pradesh
b) Gujarat
c) Uttar Pradesh
d) Bihar
e) Telangana
Answer: (E).
22). GST threshold limit of North Eastern States is _________ lakh
a) 5
b) 10
c) 12
d) 15
e) 20
Answer: (B).
23). GST threshold limit of Normal States is _________ lakh
a) 12
b) 15
c) 20
d) 25
e) 30
Answer: (C).
24). The Central Board of Excise and Customs (CBEC) announced that every year _________ will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1
e) January 1
Answer: (D)
25). Smart Phones will be taxed at _________ under GST.
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: (C).
26). Under GST, Insurance is taxed _________ percent.
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: (D).
27). Which of the following comes under sin tax?
a) Pan Masala
b) Tobacco
c) Alcohol
d) Both a and c
e) All a, b and c
Answer: (E).
28). A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR
e) GSTS
Answer: (B). GSTN - Goods and Service Tax Network.
29). GSTN comes under which Act?
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Indian Partnership Act, 1932
d) Limitation Act, 1963
e) Companies Act, 2013
Answer: (E).
30). Combined Stake of Central and State Government in GSTN is _________.
a) 20%
b) 25%
c) 49%
d) 51%
e) 100%
Answer: (C). The remaining 51% stake is divided among five financial institutions—LIC Housing Finance with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation Ltd with 10% stake each.
31). What does N stands for in HSN?
a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination
Answer: (D). HSN - Harmonized System of Nomenclature. HSN code will be used for classifying under the GST regime.
32). Coal comes under which rate Structure?
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: C
33). Investment is a function of the interest rate?
1. Increase
2. Decrease
3.Direct
4. Indirect
Answer 4
34). Saving is a function of the level of income?
1. Increasing
2. Decreasing
3. Direct
4. Indirect
Answer 3
35). Which sector is known as " real sector " equilibrium?
1. Product market equilibrium
2. Money market equilibrium
3. General equilibrium of product market and money market
4. None of these
Answer 3
36). If rate of interest reduced then investment curve will.....
1. Shift downward
2. Shift upward
3. Move left
4. Move right
Answer 4
37). Relationship b/w income and interest rate in the real sector....
1. Positive
2. Negative
3. Both
4 relationship doesn't occur
Answer 2
38). If investment is very sensitive to the rate of interest, the IS curve is..
1. Vertical
2. Horizontal
3. Very Steep
4. Very Flat
Answer 3
39). If the size of the multiplier isb large, the IS curve is...
1. Horizontal
2. Vertical
3. Steeper
4. Flatter
Ans4
40).A change in Real GDP is due to
a) A change in Price.
b) A change in quantity.
c) a and b.
d) All above.
Answer B
GST Council :The mechanism of the GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among states. The GST Council shall establish to adjudicate disputes arising out of its recommendation or implementation thereof.
The GST Council is headed by Union Finance Minister and 5 members. The members are the state finance ministers.
Features of GST :
1) Destination Based Consumption Tax : GST would be a destination based consumption tax. This means that tax would accrue to the State or the Union Territory where consumption takes place. It would be a dual GST with the centre and states simultaneously levying tax based.
a) CGST (Central Tax) – The GST to be levied by the centre on intra-state supply of goods and services would be called Central tax.
b) SGST (State Tax) – The GST to be levied by the States including Union territories with legislature/ Union Territories without legislature would be called the State tax/ Union territory tax (UGST) respectively.
2) Application of GST :The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products viz. petroleum, crude, motor spirit, high speed diesel, natural gas and aviation turbine fuel. The GST would replace the following taxes currently levied and collected by the Centre:
Central Excise Duty
Duties of Excise
Special Additional Duty of Customs
Service Tax
Central Surcharges and Cesses so far as they relate to supply of goods and services.
3) State Taxes that would be subsumed under the GST :
Following are the taxes that would be subsumed under the GST are:
State VAT
Central Sales Tax
Luxury Tax
Entry Tax
Entertainment and Amusement Tax
Taxes on advertisement
Purchase Tax
Taxes on lotteries, betting and gambling
State Surcharges and Cesses so far as they relate to supply of goods and services.
4) Threshold Exemption :Taxpayers with an aggregate turnover in a financial year up to Rs 20 lakhs would be exempt from tax. Aggregate turnover shall be computed on all India basis.
For eleven Special Category States, like those in the North- East and the hilly States, the exemption threshold shall be Rest. 10 lakhs.
All taxpayers eligible for threshold exemption will have the option of paying tax with Input Tax Credit.
Taxpayers making inter-state supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption.
5) Consumption Levy :Small taxpayers with an aggregate turnover in a financial year up to Rest 50 lakhs shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The rate of tax for CGST and SGST each shall not exceed-
2.5% in case of restaurants
1% of the turnover in a state/UT in case of a manufacturer
0.5% of the turnover in state/UT in case of other suppliers.
6) HSN (Harmonized System of Nomenclature) code :HSN should be used for classifying the goods under the GST regime.
Taxpayers whose turnover is above Rs 1.5 crore but below Rs 5 crore shall use 2-digit code.
Taxpayers whose turnover is Rs 5 crore and above shall use 4-digit code.
Taxpayers whose turnover is below Rs 1.5 crore are not required to mention HSN code in their invoices.
7) Import of goods and services :Import of goods and services would be treated as interstate supplies and would be subject to IGST in addition to the applicable custom duties.
Benefits of GST :
1) GST brings benefit to all stakeholders of industry, government and the consumer. It will lower the cost of goods and services give a boost to the economy and make the products and services .
Throgh Some MCQs about all clear concept of GST:-
1). In India GST came effective from July 1st, 2017. India has chosen _________ model of dual – GST.
a) USA
b) UK
c) Canadian
d) China
e) Japan
Answer: (C).
2). How many countries have dual – GST model?
a) 5
b) 8
c) 10
d) 14
e) None of these
Answer: (E). Till now Canada only has dual GST model but now India also started to use dual-GST model.
3). Which of the following country is the first one to implement GST?
a) USA
b) France
c) China
d) Switzerland
e) Germany
Answer: (B). France implemented GST in 1954.
4). Around how many countries adopted GST?
a) 90
b) 120
c) 140
d) 160
e) 200
Answer: (D).
5). Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) USA
d) Australia
e) India
Answer: (E). India has the maximum tax slab (28%) compared to other countries.
6). Which of the following country has the second highest tax slab?
a) Australia
b) Netherland
c) Argentina
d) Ireland
e) South Korea
Answer: (C). Argentina has the second highest tax slab 27%
7). Indian GST model has _________rate structure.
a) 3
b) 4
c) 5
d) 6
e) 2
Answer: (B). In India GST model has 4 rate structure. They are 5%, 12%, 18% and 28%
8). How many types of taxes will be in Indian GST?
a) 2
b) 3
c) 4
d) 5
e) 6
Answer: (B). Central GST (CGST), State GST (SGST) and IGST are three types of taxes.
9). What does “I” stands for in IGST?
a) International
b) Internal
c) Integrated
d) Intra
e) Innovation
Answer: (C).
10). The tax IGST charged by _________Government.
a) Central
b) State
c) Concerned department
d) Both a and b
e) All a, b and c
Answer: (A).
11). The maximum rate prescribed under IGST is _________.
a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit
Answer: (D).
12). In India GST was first proposed in _________.
a) 1993
b) 1996
c) 1999
d) 2000
e) 2002
Answer: (D).
13). GST is a _________ based tax on consumption of goods and services.
a) Duration
b) Destination
c) Dividend
d) Development
e) Destiny
Answer: (B). main objective of GST is eliminate excessive taxation
14). GST comes under which amendment bill?
a) 118
b) 120
c) 122
d) 115
e) 129
Answer: (C).
15). Under which Act GST was introduced?
a) 100
b) 101
c) 102
d) 103
e) 104
Answer: (B)
16). GST council formation based on Article number _________.
a) 279A
b) 289A
c) 266A
d) 255A
e) 286A
Answer: (A)
17). The headquarters of GST council is _________.
a) Mumbai
b) New Delhi
c) Ahmadabad
d) Hyderabad
e) Lucknow
Answer: (B).
18). Who is the chairman of GST council?
a) President of India
b) Prime Minister
c) Finance Minister
d) RBI Governor
e) Finance secretary
Answer: (C). Arun Jaitley is the current chairman of GST council
19). _________ is GST Finance Ministers Panel Chairman.
a) Amit Mishra
b) Amit Malhodra
c) Amit Chandresekar
d) Amit Sastri
e) Amit kohli
Answer: (A). Amit Mishra (West Bengal Finance Minister) is the Finance Ministers Panel Chairman.
20). _________ is the first state to ratify GST bill.
a) Andhra Pradesh
b) Assam
c) Arunachal Pradesh
d) Bihar
e) Telangana
Answer: (B)
21). _________ is the first state that passed GST Bill.
a) Andhra Pradesh
b) Gujarat
c) Uttar Pradesh
d) Bihar
e) Telangana
Answer: (E).
22). GST threshold limit of North Eastern States is _________ lakh
a) 5
b) 10
c) 12
d) 15
e) 20
Answer: (B).
23). GST threshold limit of Normal States is _________ lakh
a) 12
b) 15
c) 20
d) 25
e) 30
Answer: (C).
24). The Central Board of Excise and Customs (CBEC) announced that every year _________ will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1
e) January 1
Answer: (D)
25). Smart Phones will be taxed at _________ under GST.
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: (C).
26). Under GST, Insurance is taxed _________ percent.
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: (D).
27). Which of the following comes under sin tax?
a) Pan Masala
b) Tobacco
c) Alcohol
d) Both a and c
e) All a, b and c
Answer: (E).
28). A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR
e) GSTS
Answer: (B). GSTN - Goods and Service Tax Network.
29). GSTN comes under which Act?
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Indian Partnership Act, 1932
d) Limitation Act, 1963
e) Companies Act, 2013
Answer: (E).
30). Combined Stake of Central and State Government in GSTN is _________.
a) 20%
b) 25%
c) 49%
d) 51%
e) 100%
Answer: (C). The remaining 51% stake is divided among five financial institutions—LIC Housing Finance with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation Ltd with 10% stake each.
31). What does N stands for in HSN?
a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination
Answer: (D). HSN - Harmonized System of Nomenclature. HSN code will be used for classifying under the GST regime.
32). Coal comes under which rate Structure?
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: C
33). Investment is a function of the interest rate?
1. Increase
2. Decrease
3.Direct
4. Indirect
Answer 4
34). Saving is a function of the level of income?
1. Increasing
2. Decreasing
3. Direct
4. Indirect
Answer 3
35). Which sector is known as " real sector " equilibrium?
1. Product market equilibrium
2. Money market equilibrium
3. General equilibrium of product market and money market
4. None of these
Answer 3
36). If rate of interest reduced then investment curve will.....
1. Shift downward
2. Shift upward
3. Move left
4. Move right
Answer 4
37). Relationship b/w income and interest rate in the real sector....
1. Positive
2. Negative
3. Both
4 relationship doesn't occur
Answer 2
38). If investment is very sensitive to the rate of interest, the IS curve is..
1. Vertical
2. Horizontal
3. Very Steep
4. Very Flat
Answer 3
39). If the size of the multiplier isb large, the IS curve is...
1. Horizontal
2. Vertical
3. Steeper
4. Flatter
Ans4
40).A change in Real GDP is due to
a) A change in Price.
b) A change in quantity.
c) a and b.
d) All above.
Answer B
Comments
Post a Comment