GST BASICS Q & A - 1 (QUESTIONS)

GST BASICS Q & A - 1 (QUESTIONS) :

1.) Which taxes on products are not subsumed by GST?

a. None of these

b. Tax on petroleum products

c. Tax On Items containing Alcohol

d. Both of these

2.) The _____________ Constitutional (Amendment) Bill, 2011, lapsed with the dissolution of the 15th Lok Sabha

a. 225th

b. 120th

c. 102th

d. 115^th

3.) Which holds valid with reference to reverse charge mechanism?

(1) GTA Services

(2) Sponsorship Services

(3) Government Services

(4) Rent a cab via an e-commerce operator

a. Only (1), (2) and (4)

b. All of these

c. Only (1), (3) and (4)

d. Only (1), (2) and (3)

4.) Where the location of the supplier and the place of supply are in _______________.

a. two different States

b. a State and a Union territory, shall be treated as a supply of services in the course of inter-State trade or commerce.

c. two different Union territories; or

d. All of these

5.) As per explanation to clause (1) of _____________ of the Constitution, IGST will be levied on all imports into the territory of India.

a. Articles 269A

b. Articles 342A

c. Articles 115B

d. Articles 122A

6.) The mode of payments used under GST are ___________________.

a. All of these

b. Common Accounting Codes

c. Payment through challan generation- GSTN

d. Electronic payment

7.) Which amongst the following holds true with reference to Section 77 - Tax wrongfully collected and deposited with the Central or a State Government?

a. A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.

b. A registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of central tax and State tax or, as the case may be, the Central tax and the Union territory tax payable.

c. None of these

d. Both of these

8.) The place of supply of services in relation to training and performance appraisal ____________________.

a. a registered person, shall be the location of such person;

b. Both of these

c. a person other than a registered person, shall be the location where the services are actually performed.

d. None of these

9.) Which of the following statement holds true with reference to GST Compliance?

a. None of these

b. A registered person does not have to follow compliance under GST

c. Registered persons have nothing to do with previous tax periods

d. A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods has not been furnished by him.

10.) Is service tax applicable under GST?

a. Service Tax has to be paid apart from GST

b. None of these

c. GST Subsumes the same

d. GST does not subsume service tax

11.) GST comprises of the following levies ________________.

(1) Central Goods and Services Tax (CGST) [also known as Central Tax] on intra-state or intra-union territory of goods or services or both.

(2) State Goods and Services Tax (SGST) [also known as State Tax] on intra-state supply of goods or services or both.

(3) Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory supply of goods or services or both.

(4) Integrated Goods and Services Tax (IGST) [also known as Integrated Tax] on inter-state supply of goods or services or both. In case of import of goods also, the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD) were replaced by integrated tax.

a. Only (1), (2) and (4)

b. Only (1), (3) and (4)

c. All of these

12.) Which several State Taxes will be included in GST?

(1) Entry Tax

(2) Luxury Tax

(3) VAT/Sales Tax

(4) Taxes on lottery, betting & gambling

a. Only (1), (2) and (3)

b. All of these

c. Only (1), (2) and (4)

d. Only (1), (3) and (4)

13.) What is the time limit to raise an invoice for goods?

a. For continuous supplies , earlier of issuance of a successive statement of accounts

b. On receipt of each payment

c. Before or after the time of removal of goods

d. All of these

14.) Which of the following options holds true about Integrated Goods and Services Tax?

a. Integrated Goods and Services Tax is the tax imposed on imported goods and services

b. Integrated Goods and Services Tax is the tax on international trade

c. Integrated Goods and Services Tax is the tax imposed on interstate trade

d. Integrated Goods and Services Tax is the tax imposed on value additions to exports

15.) Location of supply for services is the ___________________.

a. It is the location of the establishment most directly concerned with the provision of the supply

b. It is the location of such fixed establishment;

c. All of these

d. It is the location of such place of business

16.) Define NIL Rate of Tax.

a. Goods and services are taxable but at a nil rate

b. Services are taxable but at a nil rate

c. Goods and services are not taxable and are exempt

d. Goods are taxable but at a nil rate

17.) ________________ is not the feature of the proposed registration procedures under GST.

a. Single application to be filed online for registration under GST.

b. Each dealer will not be given unique ID GSTIN.

c. The registration number will PAN based and will serve the purpose for Central and State.

d. Existing VAT/Central excise/Service Tax payers will not have to apply afresh for registration under GST.

18.) Which amongst the following hold true in regards to Gold?

a. All of these

b. After GST the tax rate has been increased to three percent

c. Earlier the tax rate on gold was two percent

d. It is still lower than the lowest tax slab under Gst which is 5%

19.) _____________ defines exempt supply under GST Act 2017.

a. Section 2(50)

b. Section 2(47)

c. Section 2(10)

d. Section 2(55)

20.) GST Rates are levied on _______________.

a. All of these

b. Wholesaler

c. Retailer

d. Manufacturer

21.) XYZ Ltd. buys 20 AC, and pays GST on these and claims input credit of 2 lakh. Two years later, it donates all the ACs to charity. In this case the firm does not sell them. In this case which of the following statement holds true?

a. This qualifies as a personal supply

b. None of these

c. There is no concept of supply in GST

d. This qualifies as a business supply

22.) Which of the following would hold true in regards to essential items?

a. Essential Items like grain would be taxed at 0%

b. Essential Items like grain would be taxed at 12%

c. None of these

d. Essential Items like grain would be taxed at 5%

23.) Which amongst the following is the back bone of GST?

a. GSTN has to develop GST portal which ensure technology support for registration, return filing, tax payments, IGST settlements etc.

b. Government has already incorporated Goods and service tax network (GSTN)

c. Both of these

d. None of these

24.) What is the objective of threshold limit?

a. All of these

b. Relive small taxpayers from compliance cost and compliance administration

c. Reduce cost of administering of large numbers of small taxpayers

d. Give advantage to small taxpayers over large enterprises on account of lower tax incidence.

25.) Location of the supplier of services mean _________________.

a. All of these

b. where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;

c. where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and

d. where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

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