1. What is Goods and Services Tax (GST) primarily levied on?
A. Income
B. Manufacture, sales, and consumption of goods and services
C. Property
D. Import and Export duties
GST is an indirect tax levied on the manufacture, sales, and consumption of goods and services at a national level.
2. Which taxes did GST replace in India?
A. Income Tax and Wealth Tax
B. Corporate Tax and Custom Duties
C. Excise, VAT, Service Tax, Luxury Tax, Entertainment Tax, Octroi, etc.
D. Import and Export Duties
GST replaced multiple taxes like Excise, VAT, Service Tax, Luxury Tax, Entertainment Tax, Octroi, etc., which were levied by both Central and State Governments.
3. How is GST categorized in terms of taxation regime?
A. Dual taxation regime
B. Single taxation regime
C. Hybrid taxation regime
D. Progressive taxation regime
GST is a dual taxation regime, where taxes are levied based on the place of consumption or destination.
4. Which component of GST is shared between the Central Government and State/UT Governments?
A. Central Goods and Services Tax (CGST)
B. State Goods and Services Tax (SGST)
C. Union Territory Goods and Services Tax (UTGST)
D. Integrated Goods and Services Tax (IGST)
Integrated Goods and Services Tax (IGST) is initially collected by the Central Government and then distributed to the State/UT Governments.
5. What is the GST rate for services provided by banks, and how is it bifurcated under GST?
A. 18%, bifurcated into 9% CGST and 9% SGST
B. 12%, bifurcated into 6% CGST and 6% SGST
C. 28%, bifurcated into 14% CGST and 14% SGST
D. 18%, bifurcated into 10% CGST and 8% SGST
The GST rate for services provided by banks is 18%, bifurcated into 9% CGST and 9% SGST, wherever applicable.
6. What type of GST is levied if the supply of services is outside the state?
A. CGST and SGST
B. IGST
C. Only SGST
D. Only CGST
If the supply of services is outside the state, IGST is levied.
7. How many tiers are there in the GST tax structure finalized by the GST council?
A. Three
B. Five
C. Four
D. Six
The GST council has finalized a four-tier GST tax structure of 5%, 12%, 18%, and 28%.
8. What is the GST rate applicable to services under the GST regime?
A. 18%
B. 12%
C. 28%
D. 5%
Services under the GST regime are taxed at a rate of 18%.
9. Which tax was NOT replaced by GST in India?
A. Income Tax
B. VAT
C. Excise Tax
D. Luxury Tax
GST replaced taxes like Excise, VAT, Service Tax, Luxury Tax, Entertainment Tax, and Octroi, but not Income Tax.
10. How is the GST rate on a particular good identified?
A. By the date of transaction
B. By the HSN code of the product
C. By the size of the product
D. By the manufacturer's name
The GST rate applicable to a particular good can be identified based on its HSN (Harmonized System of Nomenclature) code.
11. What new restriction was introduced for claiming Input Tax Credit (ITC) as of October 1, 2022?
A. ITC can only be claimed for items purchased from government-certified vendors
B. ITC claim now requires careful vendor selection with proper credentials
C. ITC can only be claimed if the vendor provides a valid GST invoice
D. ITC can only be claimed on goods imported from other countries
New restrictions require careful selection of vendors with proper credentials to avoid litigation when claiming ITC.
12. What is the extension of the time limit for availing ITC and credit notes applicable to?
A. Only the Financial Year 2022-23
B. Financial Year 2021-22 as well
C. Only the previous quarter
D. Only for ITC on capital goods
The extension of the time limit applies to ITC and credit notes for the Financial Year 2021-22 as well.
13. Under what condition can GST registration be cancelled due to non-filing of returns?
A. Non-filing of returns for 6 months for monthly filers or 2 tax periods for quarterly filers
B. Non-filing of returns for 3 months for monthly filers
C. Non-filing of returns for 1 year
D. Non-filing of returns for 2 consecutive years
GST registration can be cancelled if a monthly return filer does not file returns for 6 months or a quarterly return filer does not file returns for 2 consecutive tax periods.
14. What change was made regarding the Statement of Outward Supply (GSTR-1) as of October 1, 2022?
A. It is now optional to file GSTR-1
B. It must be filed in chronological order
C. It can be filed annually
D. It is now combined with GSTR-3
The Statement of Outward Supply (GSTR-1) must now be filed in chronological order.
15. What new fee was introduced for delays in GST Returns as of October 1, 2022?
A. Late fee for TCS Return
B. Late fee for ITC Return
C. Late fee for GSTR-3B Return
D. Late fee for GSTR-4 Return
A late fee for delays in filing the TCS Return was introduced.
16. What must a taxpayer do if they fail to pay the supplier within 180 days from the invoice date?
A. Pay tax along with interest
B. Reclaim the ITC
C. File a refund claim
D. No action is required
If a taxpayer fails to pay the supplier within 180 days from the invoice date, they must pay tax along with interest.
17. What was removed from the GST process as of October 1, 2022?
A. Matching concept and two-way communication
B. QRMP dealers
C. ITC claim process
D. Monthly return filing requirement
The matching concept and two-way communication process in return filing were omitted.
18. What new option is available for QRMP dealers regarding tax payment?
A. Pay taxes quarterly
B. Pay taxes on a self-assessment basis or as prescribed by the government
C. Pay taxes annually
D. Pay taxes monthly with a penalty
QRMP dealers can now pay taxes on a self-assessment basis or in an alternate way prescribed by the government.
19. What is the main objective of GST in India?
A. To increase excise duties on luxury goods
B. To unify multiple taxes like Excise, VAT, and Service Tax into a single tax regime
C. To decentralize the tax system among state governments
D. To eliminate customs duties on imported goods
The main objective of GST is to unify multiple taxes like Excise, VAT, and Service Tax into a single tax regime.
20. What are the three elements of tax under GST?
A. Central GST, State GST, Integrated GST
B. Excise Duty, VAT, Service Tax
C. Income Tax, Property Tax, Wealth Tax
D. Customs Duty, Capital Gains Tax, Stamp Duty
The three elements of tax under GST are Central GST (CGST), State GST (SGST), and Integrated GST (IGST).
21. Which GST rate is applicable to services under the GST regime?
A. 5%
B. 12%
C. 18%
D. 28%
Services are taxed at the rate of 18% under the GST regime.
22. Which document must now be filed in chronological order as of October 1, 2022?
A. GSTR-3B
B. GSTR-4
C. GSTR-1
D. GSTR-2
The Statement of Outward Supply (GSTR-1) must now be filed in chronological order.
23. What happens if a taxpayer fails to pay the supplier within 180 days from the invoice date?
A. The ITC must be reversed and tax along with interest must be paid
B. The ITC will be forfeited without any additional tax liability
C. A penalty will be imposed without reversing ITC
D. The ITC claim will be extended by an additional 60 days
If a taxpayer fails to pay the supplier within 180 days from the invoice date, they must reverse the ITC and pay tax along with interest.
