Tag: study of gst

Questions Related to study of gst

A credit note is issued by ___________ and it is a document accepted for GST purposes.

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. Recipient, for reducing the tax/ taxable value;

  2. Supplier, for reducing the tax/ taxable value;

  3. Supplier, for increasing the tax/ taxable value;

  4. Recipient, for increasing the tax/ taxable value.

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Correct Option: B

Suppose tax exempted goods under earlier law dispatched within 6 months prior to the appointed day are returned back within 6 months from the appointed day. How, the tax element involved in the return supply will be treated under GST?

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. Subject to tax at the appropriate rate of GST

  2. No GST

  3. At the half rate of the GST

  4. Only SGST is charged

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Correct Option: B

Is there any time limit for issue of notice under section 76 in cases where tax collected but not paid?

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. No time limit

  2. 1 year

  3. 3 years

  4. 5 years

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Correct Option: A

What is/are the condition for availing ITC on the tax element involved in the stock held by a composition dealer under earlier law, if such dealer opts normal tax remittance in GST?

  1. Such stock should be taxable u

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. i, ii & iii

  2. i, ii & iv

  3. ii, iii & iv

  4. i, ii, iii & iv

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Correct Option: D

A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone developer shall make a separate application for registration under GST.

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. True

  2. False

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Correct Option: A
Explanation:

Proviso to Rule 1 of the Final Registration Rules under GST mandates that a person having a unit(s) in a Special Economic Zone or being a Special Economic Zone developer shall make a separate application for registration as a business vertical distinct from his other units located outside the Special Economic Zone.

Who cannot opt for Composition Scheme under GST?

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. Taxpayer supplying exempt supplies.

  2. Supplier of services other than restaurant related services.

  3. Casual taxable person or a non-resident taxable person.

  4. All of the above

Show answer
Correct Option: D
Explanation:
The following people cannot opt for the scheme:

Supplier of services other than restaurant related services
Manufacturer of ice cream, pan masala, or tobacco
Casual taxable person or a non-resident taxable person
Businesses which supply goods through an e-commerce operator

Exemptions of Goods under GST apply to which of the following?

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. Animal feeds and supplements

  2. Fresh milk and pasteurized milk

  3. Khadi garments /goods and made-ups

  4. All of the above

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Correct Option: D
Explanation:

List of Exempted Goods under GST includes:

Animal feeds and supplements, Fresh milk and pasteurized milk,Khadi garments /goods and made-ups

In India, GST became effective from _______.

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. 1st April, 2017

  2. 1st January, 2017

  3. 1st July, 2017

  4. 1st March, 2017

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Correct Option: C
Explanation:
The Goods and Services tax came into effect from July 1, 2017 through the implementation of 101st Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple cascading taxes levied by the central and state governments.

Disadvantages of GST include _______.

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. increased costs due to software purchase

  2. smaller businesses, especially in the manufacturing sector will face difficulties under GST.

  3. GST came into effect in the middle of the financial year

  4. all of the above

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Correct Option: D
Explanation:

Disadvantages of GST include:

  • Increased costs due to software purchase
  • Being GST-compliant
  • GST will mean an increase in operational costs
  • GST came into effect in the middle of the financial year
  • GST is an online taxation system
  • SMEs will have a higher tax burden

Advantages of GST:

commerce goods and services tax goods and service tax study of gst goods and services tax (gst)

  1. It eliminates the cascading effect of tax.

  2. Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit.

  3. The number of compliance is lesser

  4. All of the above

Show answer
Correct Option: D
Explanation:

Advantages of GST are

  • GST eliminates the cascading effect of tax
  • Higher threshold for registration
  • Composition scheme for small businesses
  • Simple and easy online procedure
  • The number of compliances is lesser
  • Defined treatment for E-commerce operators
  • Improved efficiency of logistics
  • Unorganized sector is regulated under GST