Tag: introduction to gst

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Questions Related to introduction to gst

Multiple choice civics introduction to gst fundamentals of gst tax journal

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

  1. CGST

  2. SGST

  3. IGST

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

    Multiple choice civics introduction to gst fundamentals of gst tax journal

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

    1. True

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

    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.