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

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.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Journal entry for purchase of goods on credit within same state is follows:
Purchases A/c                     Dr
Input CGST A/c                   Dr
Input SGST A/c                   Dr
            To Creditor's A/c
State whether above entry is true or false.

  1. True

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

When purchasing goods within the same state, the business pays both CGST and SGST. These are recorded as Input CGST and Input SGST, which are debit entries.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Excess of input SGST after setting off the output SGST, can be utilised against output ________.

  1. CGST

  2. SGST

  3. IGST

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

After setting off against Output SGST, any remaining Input SGST credit can be utilized to set off Output IGST liability.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Identify the entry for sales return of goods that are sold on credit where the buyer and the seller are located in different states:

  1. Sales Returns A/c Dr

    Output IGST A/c Dr

    To Debtors A/c

  2. Sales Returns A/c Dr

    Output CGST A/c Dr

    Output SGST A/c Dr

    To Debtors A/c

  3. Purchases A/c Dr

    Output IGST A/c Dr

    To Debtors A/c

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

For interstate sales returns, the Output IGST previously collected must be reversed. This is done by debiting the Output IGST account.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Input IGST is the only type of GST which can be used in setting off all types of output GST i.e., CGST, SGST and IGST.

  1. True

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

True , IGST can be used in setting off all types of output GST.

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

What is the maximum rate prescribed under CGST?

  1. 12%

  2. 28%

  3. 20%

  4. 18%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CGST is an element of Goods and Service Tax. Central Goods and Service Tax has categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. CGST waterfall under Central Goods and Service Tax Act of 2016. 

As per section 9 (1) Subject to the supplies of sub-section (2), there shall be levy a tax called the innermost goods and services tax on all intra-State provisions of goods or services or both, apart from on the supply of intoxicating liquid for human consumption, on the value strong-minded under section 15 and at such rates, not exceeding twenty per cent  as may be notified by the Government on the recommendation of the assembly and together in such method as may be arranged and shall be waged by the taxable person.

Thus, the correct option is C.

Multiple choice civics introduction to gst fundamentals of gst tax journal

When should a job-worker take registration?

  1. Always

  2. Only if his aggregate turnover exceeds the threshold limits specified under Section 22 of the CGST Act, 2017

  3. Never

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As per Section 2(68) of the CGST Act, 2017, “Job work” means any treatment or process undertakes by a person on goods belonging to another registered person. 

The registered individual on whose goods (inputs or capital goods) job work is performed is called Principal as per section 143 of CGST Act. The registered principal may without the reward of tax sends inputs or capital goods to a Job worker for job work and if required from there then to another job worker.

 Once the conclusion of the job work principal shall either bring back the goods to the place of business or supply the same straight from the place of business/building of the Job worker. If input within 1 year and Capital goods within 3 years.

Thus, the correct option is B.

Multiple choice civics introduction to gst fundamentals of gst tax journal

More MCQs on Foreign Exchange Management 1. The subsumption of which taxes will make the GST-a pucca Destination based Consumption Tax _________________.

  1. CST and Central Excise

  2. VAT and Luxury Tax

  3. Service Tax and Purchase Tax

  4. Taxes on Lotteries and Entertainment Tax
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

GST is a destination-based tax that replaced various indirect taxes, most notably the Central Sales Tax (CST) and Central Excise Duty, to create a unified market.