Tag: tax

Quizzes (6) Questions (96)

Questions Related to tax

Multiple choice civics introduction to gst fundamentals of gst tax journal

GST enhances the cascading effect on taxation.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The implementation of GST will help create a common market in India and reduce cascading effects of the tax on the cost of goods and services. Not only the tax, but also the cost of goods and services may be affected in some sectors, and there will be a boost in revenue.

Hence, the above statement is false.

Multiple choice civics introduction to gst fundamentals of gst tax journal

GST is a _____________ based tax and levied at a single point at the time of ___________ of goods and services.

  1. money, sale

  2. consumption, trading

  3. destination, consumption

  4. destination, sale
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

GST is a destination-based tax, which is levied on the consumption of goods and services.

Multiple choice civics introduction to gst fundamentals of gst tax journal

The prime objective of GST implementation is to ________ the multiple levy of tax on goods and services. 

  1. abolish

  2. promote

  3. motivate

  4. sustain
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The primary objective of GST is to eliminate the cascading effect of taxes, which is caused by the multiple levies of taxes at different stages of production and distribution.

Multiple choice civics introduction to gst fundamentals of gst tax journal

GST is levied under the 3 categories which includes?

  1. CGST

  2. SGST

  3. IGST

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

GST is categorized into CGST, SGST or IGST depending on whether the transaction is Intra-State or Inter-State.

Multiple choice civics introduction to gst fundamentals of gst tax journal

__________ is levied when the parties to the transactions are located in different states.

  1. CGST

  2. SGST

  3. IGST

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

Inter-State supply of goods or services is when the location of the supplier and the place of supply are in different states. 

Also, in cases of export or import of goods or services or when the supply of goods or services is made to or by a SEZ unit, the transaction is assumed to be Inter-State. 
In an Inter-State transaction, a seller has to collect IGST from the buyer.
Hence, C is the correct option.

Multiple choice civics introduction to gst fundamentals of gst tax journal

When the seller of goods is located in Delhi and the buyer is located in West Bengal, _________ will be levied.  

  1. CGST

  2. SGST

  3. IGST

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

Inter-State supply of goods or services is when the location of the supplier and the place of supply are in different states. Also, in cases of export or import of goods or services or when the supply of goods or services is made to or by a SEZ unit, the transaction is assumed to be Inter-State. In an Inter-State transaction, a seller has to collect IGST from the buyer.


In the above case, the buyer and seller are both located in different states, namely, West Bengal and Delhi.
Hence, C is the correct option.

Multiple choice civics introduction to gst fundamentals of gst tax journal

GST is basically designed to:
1. Enhance manufacturing system
2. Reduce the tax base
3. Expand the distribution system
4. Increase the revenue from taxes
Of the above ___________.

  1. 1 & 2 are correct

  2. only 4 is correct

  3. 1, 3 & 4 are correct

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

GST is designed to enhance the manufacturing system (by removing cascading taxes), expand the distribution system (by creating a unified market), and increase tax revenue (by broadening the tax base).

Multiple choice civics introduction to gst fundamentals of gst tax journal

GST widens the _______ base which accordingly increases the _______ for government.

  1. revenue, cost

  2. sale, tax

  3. cost, tax

  4. tax, revenue
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

By bringing more businesses into the formal economy and simplifying compliance, GST widens the tax base, which in turn leads to higher tax revenue for the government.

Multiple choice civics introduction to gst fundamentals of gst tax journal

For the purpose of accounting, GST is broadly categorised as _________ and __________.

  1. GST paid, GST collected

  2. CGST collected, CGST paid

  3. GST charged, GST paid

  4. GST paid, GST set off
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In accounting, GST paid on purchases is recorded as an asset (Input GST), while GST collected on sales is recorded as a liability (Output GST). These represent the two primary categories for tracking tax credits and tax obligations.