Economics · General Awareness

Indian Taxation System

2,347 Questions

The Indian taxation system comprises direct and indirect levies including income tax, goods and services tax, and property tax. Understanding these tax structures is crucial for general awareness sections in banking and government exams. The practice set covers central and state tax collections, exemptions, and capital gains rules.

Goods and Services TaxIncome tax rulesProperty tax assessmentsTax exemptionsCentral versus state taxes

Indian Taxation System Questions

Multiple choice social science the government budget and taxation public debt public debt main feature of tax

Which of the following is an administrative non-tax revenue?

  1. Gifts and grants

  2. Earnings from state enterprise

  3. Fines

  4. Surpluses
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Non Tax Revenue receipts are those revenue receipts which are not generated by taxing the public. Under administration, public authorities can raise some funds in the form of fines, fees and penalties.

Multiple choice social science the government budget and taxation public debt public debt main feature of tax

Which of the following is not a union tax?

  1. Stamp duties on financial documents

  2. Taxes on railway freights and fares

  3. A and b only

  4. Tolls
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Tax is levied by government on their citizens to generate income for undertaking projects to boost the economy of the country and to raise the standard of living of its citizens. Union tax is a tax paid to central government. Stamp duties on financial documents, Taxes on railway freights and fares are not the examples of Union tax.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Which of the following statement is correct?

  1. Excise duty is levied on sales Volume.

  2. Custom duties have been drastically cut down since 1991

  3. VAT has been adopted by Two-Three states in India

  4. Agriculture contributes the maximum to the direct tax revenues in India.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Post-1991, India moved toward trade liberalization, which included significant reductions in custom duties to integrate with the global economy.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Which of the following is a correct statement?

  1. Every registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52 shall verify, validate, modify or delete the details communicated in Form GSTR 2A

  2. The details of outward supplies communicated in Form GSTR 2A cannot be modified or altered

  3. The registered taxable person should accept the details communicated in Form GSTR 2A by 12th of the succeeding month

  4. The registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52 shall furnish the details of inward supplies of goods or services excluding tax payable on reverse charge basis.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST regulations, registered taxable persons (with specific exceptions) are required to verify, validate, modify, or delete the details of inward supplies communicated in Form GSTR 2A to ensure accurate tax reporting.

Multiple choice legal studies the state judiciary : the high courts high court judiciary of the state the high courts

If the estate or any portion of the estate of a taxable person is under the control of the Court of Wards, Administrative General etc., the tax due from such taxable person is liable to be paid by ______________________.

  1. Court of Wards. Liability to pay in certain cases

  2. Taxable Person

  3. Legal representative of taxable person

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under tax laws, when an estate is under the control of a Court of Wards or an Administrator General, the liability to pay tax on behalf of that estate falls upon the entity managing it.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Whether a taxable person who has paid CGST& SGST or, as the case may be, CGST & UTGST on a transaction considered by him to be an intra-state supply, but which is subsequently held to be an inter-state supply is required to pay interest?

  1. Yes

  2. No

  3. At proper officer's discretion

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to the GST law, if a person pays tax under the wrong head (intra-state instead of inter-state or vice-versa), they are not required to pay interest on the correct tax payment, provided the original tax was paid.

Multiple choice elements of accounts introduction to gst fundamentals of gst tax journal

What happens if a taxable person has paid CGST & SGST or, as the case may be, CGST & UTGST (in SGST / UTGST Act) on a transaction considered by him to be an intra-state supply but which is subsequently held to be an inter-state supply?

  1. Seek refund

  2. Adjust against future liability

  3. Take re-credit

  4. File a suit for recovery
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If a taxpayer pays tax under the wrong head, they must pay the correct tax and then claim a refund of the tax paid under the incorrect head.

Multiple choice elements of accounts introduction to gst fundamentals of gst tax journal

Who will notify the rate of tax to be levied under CGST?

  1. Central Government suo moto

  2. State Government suo moto

  3. GST Council suo moto

  4. Central Government as per the recommendations of the GST Council
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Central Government notifies the tax rates under the CGST Act, but it must do so based on the recommendations of the GST Council.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Whether Alcoholic Liquor for industrial and other usages is taxable under GST?

  1. No

  2. Yes

  3. Exempted

  4. Non-Taxable
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

While alcoholic liquor for human consumption is kept outside the purview of GST, alcohol used for industrial purposes is taxable under GST.

Multiple choice elements of accounts introduction to gst fundamentals of gst tax journal

What should the taxable person do if he pay's tax under wrong GSTIN?

  1. Pay again under right GSTIN and claim refund

  2. Auto-adjustment

  3. Adjustment on application/request

  4. Raise ISD invoice and transfer
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If tax is paid under the wrong GSTIN, the taxpayer must pay the tax again under the correct GSTIN and then apply for a refund of the amount paid under the incorrect GSTIN.

Multiple choice elements of accounts introduction to gst fundamentals of gst tax journal

A registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52, shall file its periodical in ____________________________.

  1. Form GSTR 3 by 18th of the month succeeding the quarter

  2. Form GSTR 4 by 18th of the month succeeding the quarter

  3. Form GSTR 4 by 18th of the succeeding month

  4. Form GSTR 3 by 20th of the succeeding month
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A standard registered taxable person is required to file GSTR-3 by the 20th of the month succeeding the tax period.

Multiple choice civics introduction to gst fundamentals of gst tax journal

In GST, a Taxable Event is reckoned based on ____________________.

  1. Based on Basic tax Point Only

  2. Based on Actual tax Point Only

  3. Basic tax Point or Actual Tax Point whichever is earlier

  4. None of the Above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The time of supply (taxable event) is determined by the earlier of the basic tax point (e.g., date of invoice) or the actual tax point (e.g., date of payment).

Multiple choice civics introduction to gst fundamentals of gst tax journal

Suppose one dealer has Cen vat or Local VAT unadjusted ITC credit carried forward to the last return period in the subsumed taxation laws. How this balance unadjusted ITC will be treated in GST?

  1. Refunded under earlier laws

  2. Allowed as ITC in GST

  3. Refunded under GST law

  4. Any of the Above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Unadjusted input tax credit (ITC) from previous tax regimes (like VAT or CENVAT) is allowed to be carried forward as ITC in the GST regime, subject to certain conditions.

Multiple choice civics introduction to gst fundamentals of gst tax journal

GST is a destination based tax on consumption of ______________.

  1. goods

  2. resources

  3. services

  4. both (A) & (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

GST is a consumption based tax which is levied on the basis of “Destination principle.” 

The concept relates to taxing the supply of goods or services at the point of consumption. It is a comprehensive tax regime covering both goods and services, and is collected on value-added at each stage of the supply chain.