Tag: introduction to gst

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Multiple choice civics introduction to gst fundamentals of gst tax journal

ITC is allowed only on those goods and /or Services which are intended for making _______________.

  1. Taxable Supplies

  2. Zero Rated Supplies

  3. Both (A) and (B) above

  4. Even on Taxable Inward Supply and Non-Taxable Local or Interstate Supplies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Input Tax Credit (ITC) or Purchase Tax is one of the most significant aspects in any price added tax organization. This ensures that tax is paid on value-adding only, at each stage from production to final consumer. 

“Input Tax” in relative to a taxable person, means the Goods and Services Tax charge on him for any supply of goods and/or services to him, which are used or are future to be used, for the furtherance of his business. 

Input Tax Credit under GST – Conditions to Claim ITC must be fulfilled and forms one of the most critical activities for every business to resolve its tax liability.

Thus, the correct option is C.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Where supply has been made before the date of implementation of GST, no tax shall be Payable ________________.

  1. If tax/duty has been paid under the earlier law

  2. If goods were exempted under the earlier law

  3. If the goods were non-taxable under the earlier law

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

No tax shall be payable on the supply of goods and /or services made before the introduction of GST where a part of consideration for the said supply is received on or after the introduction of GST, but the full duty or tax payable on such supply has already been paid under the earlier law.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Input tax credit on capital goods and Inputs can be availed in _____________.

  1. In thirty six installments

  2. In twelve installments

  3. In one installment

  4. In six installments
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the GST Act, the input tax credit for both inputs and capital goods can be claimed in one installment, provided the conditions for eligibility are met.

Multiple choice civics introduction to gst fundamentals of gst tax journal

In India GST was first proposed in _____________.

  1. 1993

  2. 1996

  3. 1999

  4. 2000

  5. 2002
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The proposal for a Goods and Services Tax in India was first initiated in the year 2000 by the Vajpayee government with the formation of an empowered committee.

Multiple choice civics introduction to gst fundamentals of gst tax journal

Who is the chairman of GST council?

  1. President of India

  2. Prime Minister

  3. Finance Minister

  4. RBI Governor

  5. Finance secretary
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The GST Council is the governing body for GST in India, and by constitutional mandate, the Union Finance Minister serves as its Chairperson.

Multiple choice civics introduction to gst fundamentals of gst tax journal

A registered taxable person is eligible to claim refund in respect of export of goods and services in the following cases _________________.

  1. Under bond, without payment of IGST and claim refund of unutilized input tax credit.

  2. On payment of IGST and claim refund of IGST paid on such goods and services.

  3. None of the above

  4. Both (a) and (b)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under GST law, exporters can claim a refund either by exporting under bond without paying IGST and claiming a refund of unutilized input tax credit, or by paying IGST and claiming a refund of the tax paid. Both methods are valid legal procedures for exporters.

Multiple choice civics introduction to gst fundamentals of gst tax journal

In GST, the eligible Refund amount otherwise ineligible due to some prescribed reasons are credited _______________.

  1. To the declared bank account of the dealer automatically

  2. To the Cash Deposit Ledger of the dealer

  3. To the ITC Credit Ledger Account

  4. To the Consumer Welfare Fund
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the GST framework, if a refund claim is found to be ineligible or if there is an excess amount that cannot be directly refunded to the taxpayer, the law mandates that such amounts be credited to the Consumer Welfare Fund to prevent unjust enrichment.

Multiple choice civics introduction to gst fundamentals of gst tax journal

When an e-commerce operator is required to register under GST?

  1. When he is required to collect tax at source u/s 52

  2. When his aggregate turnover exceeds the threshold limit

  3. When he is required to discharge tax on the taxable supply or services made by the supplier through him u/s 9(5)

  4. It is mandatory to register irrespective of the threshold limit.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

E-commerce operators are required to register under GST mandatorily, regardless of their aggregate turnover, because they are responsible for collecting tax at source (TCS) or discharging tax on specific supplies made through their platform.