Tag: tax

Questions Related to tax

GST enhances the cascading effect on taxation.

civics introduction to gst fundamentals of gst tax journal

  1. True

  2. False

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Correct Option: B
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.

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

civics introduction to gst fundamentals of gst tax journal

  1. money, sale

  2. consumption, trading

  3. destination, consumption

  4. destination, sale

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Correct Option: C

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

civics introduction to gst fundamentals of gst tax journal

  1. abolish

  2. promote

  3. motivate

  4. sustain

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Correct Option: A

GST is levied under the 3 categories which includes?

civics introduction to gst fundamentals of gst tax journal

  1. CGST

  2. SGST

  3. IGST

  4. All of the above

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Correct Option: D
Explanation:

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

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

civics introduction to gst fundamentals of gst tax journal

  1. CGST

  2. SGST

  3. IGST

  4. Both (A) & (B)

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Correct Option: C
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.

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

civics introduction to gst fundamentals of gst tax journal

  1. CGST

  2. SGST

  3. IGST

  4. Both (A) & (B)

Show answer
Correct Option: C
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.

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 ___________.

civics introduction to gst fundamentals of gst tax journal

  1. 1 & 2 are correct

  2. only 4 is correct

  3. 1, 3 & 4 are correct

  4. none of these

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Correct Option: C

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

civics introduction to gst fundamentals of gst tax journal

  1. revenue, cost

  2. sale, tax

  3. cost, tax

  4. tax, revenue

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Correct Option: D

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

civics introduction to gst fundamentals of gst tax journal

  1. GST paid, GST collected

  2. CGST collected, CGST paid

  3. GST charged, GST paid

  4. GST paid, GST set off

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Correct Option: A

Under GST, output GST(collected) is set-off against input GST(paid).

civics introduction to gst fundamentals of gst tax journal

  1. True

  2. False

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Correct Option: B