Tag: tax

Questions Related to tax

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?

civics introduction to gst fundamentals of gst tax journal

  1. Refunded under earlier laws

  2. Allowed as ITC in GST

  3. Refunded under GST law

  4. Any of the Above

Show answer
Correct Option: B

Which of the following statements are correct?

    1. Revocation of cancellation of registration under CGST/SGST Act shall be deemed to be a revocation of cancellation of registration under SGST/CGST Act.
    2. Cancellation

    civics introduction to gst fundamentals of gst tax journal

    1. (i) & (ii)

    2. (iii) & (iv)

    3. (i), (ii) & (iii)

    4. (i), (ii), (iii) & (iv)

    Show answer
    Correct Option: A

    If the proper officer needs any clarification in the REG-01 filed by a dealer, what will be the option available to him?

    civics introduction to gst fundamentals of gst tax journal

    1. Online issuance of GST REG-03 within 3 common working days from the receipt of the GST REG-01

    2. Make field visit

    3. Either (A) or (B)

    4. Provisional issuance of the registration certificate

    Show answer
    Correct Option: A

    GST is a destination based tax on consumption of ______________.

    civics introduction to gst fundamentals of gst tax journal

    1. goods

    2. resources

    3. services

    4. both (A) & (C)

    Show answer
    Correct Option: D
    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.

    Under GST, credit availed of all the taxes paid is termed as __________.

    civics introduction to gst fundamentals of gst tax journal

    1. Round off

    2. Net off

    3. Set off

    4. Cut off

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    Correct Option: C
    Explanation:

    GST is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off. 

    GST is proposed to be levied at all stages right from _____________ up to the final consumption.

    civics introduction to gst fundamentals of gst tax journal

    1. business

    2. trading

    3. manufacturing

    4. mining

    Show answer
    Correct Option: C
    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. 
    The essence of GST is in removing the cascading effects i.e., tax on tax of both Central and State taxes by allowing setting-off of taxes throughout the value chain, right from the original producer and service provider’s point, up to the consumer level.

    Under GST, burden of tax is to be borne by the final consumer.

    civics introduction to gst fundamentals of gst tax journal

    1. True

    2. False

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    Correct Option: A
    Explanation:

    GST is proposed to be levied at all stages right from manufacture up to final consumption, with the credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and the burden of tax is to be borne by the final consumer.

    Under the destination based Goods and Services Tax, tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.

    civics introduction to gst fundamentals of gst tax journal

    1. True

    2. False

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    Correct Option: A

    SGST means __________ Good and Services Tax.

    civics introduction to gst fundamentals of gst tax journal

    1. Centre

    2. State

    3. Both (A) & (B)

    4. None of these

    Show answer
    Correct Option: B
    Explanation:

    SGST means State Good and Services Tax. It is an abbreviation.

    Hence, B is the correct option.

    Centre will levy and administer CGST & IGST, whereas the respective states will levy and administer SGST.

    civics introduction to gst fundamentals of gst tax journal

    1. True

    2. False

    Show answer
    Correct Option: A
    Explanation:
    CGST is administered and levied by Central Government.
    SGST is administered and levied by State Government. 
    Also, Central Government collects IGST and distribute it among states in the country.

    Hence, the above statement is true.