Tag: tax

Questions Related to tax

Revenue collected under IGST is divided between Central and State Governments as per the rates quoted by the party collecting taxes.

civics introduction to gst fundamentals of gst tax journal

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act. IGST will be applicable on any supply of goods and/or services in both cases of import into India and export from India.

Note: 

Under IGST,

  • Exports would be zero-rated.
  • Tax will go to the Central government.
Hence, the above statement is false.

GST will replace a major part of __________ taxes.

civics introduction to gst fundamentals of gst tax journal

  1. direct

  2. indirect

  3. foreign

  4. all of the above

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Correct Option: B
Explanation:

GST will replace a major part of indirect taxes. This law has replaced many indirect taxes like VAT, Service tax etc. in country. GST is one indirect tax for the entire country.

IGST is the abbreviation for ___________.

civics introduction to gst fundamentals of gst tax journal

  1. Interstate GST

  2. International GST

  3. Integrated GST

  4. Independent GST

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Correct Option: C
Explanation:

Integrated Good and Services Tax is the full form of IGST

A collection of SGST is the revenue of the State Government.

civics introduction to gst fundamentals of gst tax journal

  1. True

  2. False

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Correct Option: A
Explanation:

Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State Government and will be governed by the SGST Act. 

Hence, the above statement is true.

Taxes collected under CGST are the revenues of the State Government.

civics introduction to gst fundamentals of gst tax journal

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

Taxes collected under CGST are the revenues of the Central Government and not State Government.

Hence, the above statement is false.

Import of goods and services are covered under _____________.

civics introduction to gst fundamentals of gst tax journal

  1. CGST

  2. SGST

  3. IGST

  4. All of the above

Show answer
Correct Option: C
Explanation:

Import of goods and services into the country are covered under IGST. Other duties are also levied in addition to IGST.

CGST is for Intra state levied by Central Government and SGST is levied by State Government.
Hence, C is the correct option.

GST is levied as per dual aspect with __________ and ___________ simultaneously. 

civics introduction to gst fundamentals of gst tax journal

  1. Centre

  2. Union

  3. States

  4. both (A) and (C)

Show answer
Correct Option: D
Explanation:

GST is levied as per dual aspect with Centre and States simultaneously as CGST and SGST.

Hence, D is the correct option.

GST is implemented to accomplish the objective of one nation ________ tax.

civics introduction to gst fundamentals of gst tax journal

  1. one

  2. many

  3. diverse

  4. integrated

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Correct Option: A
Explanation:

GST is implemented to accomplish the objective of "one nation one tax". This is the idea behind implementing the GST which was taken into action.

____________ is levied on supply of goods and/or services when both the parties to the transactions are located in the same state.

civics introduction to gst fundamentals of gst tax journal

  1. CGST

  2. SGST

  3. IGST

  4. Both (A) & (B)

Show answer
Correct Option: D
Explanation:

Intra-State supply of goods or services is when the location of the supplier and the place of supply i.e., location of the buyer are in the same state. 
In Intra-State transactions, a seller has to collect both CGST and SGST from the buyer. The CGST gets deposited with Central Government and SGST gets deposited with State Government.

    Hence, D is the correct option.

    Intra - state transactions refer to those where the buyer and the seller are located in different states.

    civics introduction to gst fundamentals of gst tax journal

    1. True

    2. False

    Show answer
    Correct Option: B
    Explanation:

    Intra-State supply of goods or services is when the location of the supplier and the place of supply i.e., location of the buyer are in the same state. In Intra-State transactions, a seller has to collect both CGST and SGST from the buyer.