Tag: tax

Quizzes (6) Questions (96)

Questions Related to tax

Multiple choice civics introduction to gst fundamentals of gst tax journal

For accounting purposes, GST paid is termed as _________.

  1. input GST

  2. output GST

  3. charge GST

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

GST paid by a business on its purchases is referred to as Input GST, which represents a credit that can be used to offset tax liabilities.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Input CGST cannot be set-off against output __________.

  1. CGST

  2. SGST

  3. IGST

  4. all of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the GST law, Input CGST is specifically meant to be set off against Output CGST and Output IGST. It cannot be used to pay off Output SGST.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Input IGST has to be first set-off against output ___________.

  1. CGST

  2. SGST

  3. IGST

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

According to the GST set-off rules, Input IGST must first be utilized to pay off the Output IGST liability before it can be used for CGST or SGST.

Multiple choice civics introduction to gst fundamentals of gst tax journal

If supplier of goods located in Mumbai sells goods to buyer located in Pune then, _________ 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
  • CGST rate or Central GST rate is levied on the consumption and supply of goods and services, the proceeds of which will be attributable to the Centre, as per the CGST Act.
  • SGST rate or State GST rate is levied on the consumption and supply of goods and services, the proceeds of which will be attributable to the States, as per the SGST Act – which is passed and recognised by the assemblies of respective States.
  • IGST rate of Integrate State rate , also referred to as Inter-State GST is levied on the consumption and supply of goods and services, whenever such supplies are happening across state boundaries, and in terms of imports, as per the IGST Act.
Multiple choice civics introduction to gst fundamentals of gst tax journal

Input SGST can be set-off first against output ___________.

  1. CGST

  2. SGST

  3. IGST

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

Input SGST is primarily used to set off Output SGST. If any balance remains, it can then be used to set off Output IGST.

Multiple choice civics introduction to gst fundamentals of gst tax journal

For accounting purposes when GST is collected, it is termed as ___________.

  1. input GST

  2. output GST

  3. collected GST

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

GST collected from customers on sales is termed Output GST, representing a liability for the business to pay to the government.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Input _________ can be set-off against any type of GST.

  1. CGST

  2. SGST

  3. IGST

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

Wef 1.2.2019, the Government has changed the order in which ITC of IGST, CGST & SGST/UTGST can be adjusted from the liability payable of IGST, CGST & SGST/UTGST. Now IGST has to be fully exhausted before other taxes can be utilised. 

Multiple choice civics introduction to gst fundamentals of gst tax journal

Excess of input CGST after setting-off against output CGST, can be utilised for setting-off output ___________. 

  1. CGST

  2. SGST

  3. IGST

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

After exhausting the Output CGST liability, any remaining Input CGST credit can be utilized to set off Output IGST liability.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Give the order in which the input IGST can be set off against the following types of output GST:
1. CGST
2. SGST
3. IGST.

  1. 1, 2, 3

  2. 3, 2, 1

  3. 1, 3, 2

  4. 3, 1, 2
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The order for utilizing Input IGST is: first against Output IGST, then against Output CGST, and finally against Output SGST.