Goods and Services Tax (GST) in India

Question 1 Multiple Choice (Single Answer)

The first committee to design GST model was headed by _____.

Vijay Kelkar
Asim Das Gupta
Dr. Chidambaram
None of the above

Question 2 Multiple Choice (Single Answer)

With the introduction of GST, imports will be ______.

more expensive
cheaper
neutral with no change
None of the above

Question 3 Multiple Choice (Single Answer)

GST is applicable to all dealers with a turnover of over ______.

Rs. 10 lakh
Rs. 20 lakh
Rs. 40 lakh
Rs. 50 lakh

Question 4 Multiple Choice (Single Answer)

GST is ______________.

a value added tax
tax on goods and services
tax on consumer goods and services
none of the above

Question 5 Multiple Choice (Single Answer)

The advantages of GST to the Citizens are listed as:

Reduction in prices of goods and services due to elimination of cascading.
Uniform prices throughout the country.
Transparency in taxation system.
All of the above

Question 6 Multiple Choice (Single Answer)

The Service Tax which stood at 15% in the previous regime, has now been replaced with GST at 18%.

True
False

Question 7 Multiple Choice (Single Answer)

GST helps in _______.

increasing productivity
increasing Tax to GDP Ratio and revenue surplus
increasing Compliance
all of the above

Question 8 Multiple Choice (Single Answer)

After the implementation of GST, many services of ______ have become costlier.

telecom
airline
banking
all of the above

Question 9 Multiple Choice (Single Answer)

GST minimizes the the tax impact on inflation.

True
False

Question 10 Multiple Choice (Single Answer)

Identify the objective(s) of implementing GST.

Reducing economic distortions
Consumption based tax instead of Manufacturing
Subsume all indirect taxes at Centre and State Level under
All of the above

Question 11 Multiple Choice (Single Answer)

GST has the disadvantage(s) as follows:

Complete lack of adaptation mechanisms and trained staff.
Unclear estimate of the exact impact of GST.
No clear mechanisms to control tax evasion.
All of the above

Question 12 Multiple Choice (Single Answer)

The ________ is the key decision-making body that will take all important decisions regarding the GST.

Union Government
GST council
State Government
None of the above

Question 13 Multiple Choice (Single Answer)

The advantages of GST accruing to the Central/State Government are listed as:

A unified common national market to boost Foreign Investment and Make in India campaign.
Improving the overall investment climate in the country which will benefit the development of states.
Uniform SGST and IGST rates to reduce the incentive for tax evasion.
All of the above

Question 14 Multiple Choice (Single Answer)

The advantages of GST accruing to the Trade/ industry are listed as:

Reduction in multiplicity of taxes.
Mitigation of cascading/double taxation.
More efficient neutralization of taxes especially for exports.
All of the above

Transparent compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent.

Uniform tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.

Minimal cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
Benefits to manufacturers and exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. The GST would decrease the cost of locally manufactured goods because of the following reasons.

Most of the central and state taxes would go away
Central Sales Tax would not be charged
Complete and comprehensive set-off of the input goods and services.
This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.

Reduce Hassle and Expense: The GST not only replaces various taxes but also It would be easier for the businessmen. Currently, a Businessman has to various taxes, file return and reply for the scrutiny. The businessman has to visit many tax offices. The GST would end all these hassles.

There would be an advanced IT platform for the GST. It will handle the all related issue of GST. This platform would be used in the whole country. This platform would facilitate Single registration, Single payment, and Single return. All the process would be online. It would make the whole system of GST payment and return filing easy and transparent.

Question 15 Multiple Choice (Single Answer)

The Chairperson of GST Council is _____.

the Union Finance Minister
the Union Minister of State
Minister nominated by a State
all of the above

Question 16 Multiple Choice (Single Answer)

The GST Council dictates __________.

tax rate
tax exemption
tax laws
all of the above

Question 17 Multiple Choice (Single Answer)

MODVAT was introduced in the Union Budget of:

1986-87
1996-97
2006-07
None of the above

Question 18 Multiple Choice (Single Answer)

Which among the following is an indirect tax?

Income tax
Wealth tax
Custom duty
Gift tax

Question 19 Multiple Choice (Single Answer)

Among the following types of taxes, find the one which is Indirect.

Gift Tax
Corporate Income Tax
GST
Wealth Tax

Question 20 Multiple Choice (Single Answer)

In India tax evasion is high at:

20 %
15%
30%
18%

Goods and Services Tax (GST) in India

Questions