Question 1

GST was introduced in India with effect from
A)1.1.2017
B)1.4.2017
C)1.1.2018
D)1.7.2017

Accepted Answer

GST (Goods and Services Tax) was introduced in India on 1st July 2017, replacing multiple cascading taxes levied by the central and state governments.

Question 2

Goods and service tax is _________
A)supply based
B)consumption based
C)both supply and consumption based
D)transaction based

Accepted Answer

Goods and Service Tax (GST) is a consumption-based tax, meaning it is levied on goods and services at the place where final/actual consumption happens. It is designed to be collected at every stage of production or service delivery in a multi-stage process, with credit for taxes paid at previous stages available as a setoff for a tax to be paid at the next stage, making the final consumer bear the tax.

Question 3

Inter-state trade is presently subject to
A)sgst
B)cgst
C)integrated gst
D)utgst

Accepted Answer

Inter-state trade is subject to Integrated GST (IGST), which is designed to be applied on the supply of goods and services from one state to another within India. IGST combines the components of Central GST (CGST) and State GST (SGST) to ensure a seamless flow of tax credit from one state to another.

Question 4

GST can be collected by
A)any registered dealer
B)any gst dealer
C)any service provider
D)any dealer

Accepted Answer

The answer of GST can be collected by
A)any registered dealer
B)any...

Question 5

The chair of GST Council
A)nominated by the govt
B)nominated by the gst council
C)union finance minister
D)elected by the gst council

Accepted Answer

The chair of the GST Council is the Union Finance Minister of India. This position is not elected by the GST Council nor nominated; it is a role assumed by virtue of the individual's position in the government.

Question 6

Where the location of the supplier and the place of supply are in two different States _________
A)igst is applicable
B)cgst is applicable
C)sgst plus cgst is applicable
D)cgst plus igst is applicable

Accepted Answer

When the location of the supplier and the place of supply are in two different States, IGST (Integrated Goods and Services Tax) is applicable. This is because IGST is designed for inter-state transactions.

Question 7

One tooth paste and tooth brush and a toilet soap sold in a packet for Rs. 50, is
A)mixed supply
B)composite supply
C)joint supply
D)not supply

Accepted Answer

The answer of One tooth paste and tooth brush and...

Question 8

The notified limit for payment of composition levy is ______________
A)rs. 1 crore
B)rs. 20lakh
C)rs. 50 lakh
D)rs. 2 crore

Accepted Answer

The notified limit for payment of composition levy is Rs. 1 crore.

Question 9

A Composite taxpayer is required to file summarised details of transactions
A)annually
B)half yearly
C)quarterly
D)monthly

Accepted Answer

Composite taxpayers are required to file summarized details of transactions quarterly.

Question 10

Introduction of GST affects the revenue of
A)consuming states
B)manufacturing states
C)all the states
D)central government

Accepted Answer

GST (Goods and Services Tax) is designed to be a comprehensive indirect tax on the manufacture, sale, and consumption of goods and services throughout India, replacing multiple cascading taxes levied by the central and state governments. Therefore, it affects the revenue of all states by redistributing and sharing the tax base among them, as well as impacting the revenue of the central government.

Question 11

Goods which get input tax credit without being liable to collect output tax is called
A)exempt goods
B)white goods
C)sin goods
D)zero rated goods

Accepted Answer

Zero-rated goods are those on which the government does not charge any output tax but allows credits for the input tax. This is often used to make essential goods more affordable and to avoid the cascading effect of taxes.

Question 12

Any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business is
A)input
B)output
C)merit goods
D)white goods

Accepted Answer

Input goods, other than capital goods, used or intended to be used by a supplier in the course or furtherance of business are referred to as inputs. These are consumed in the process of providing services or producing other goods.

Question 13

If application for registration is ___________________________, the registration shall be effective from the date on which the person becomes liable for registration.
A)made within 30 days
B)not made within 30 days
C)made within 60 days
D)not made within 30 days.

Accepted Answer

If the application for registration is made within 30 days from the date on which the person becomes liable for registration, the registration is considered effective from that date of liability.

Question 14

When turnover during a financial year exceeds__________________ the accounts and other records must be audited by a chartered accountant or a cost accountant
A)1 crore
B)2 crore
C)5 crore
D)10 crore

Accepted Answer

As of my last update, when turnover during a financial year exceeds 2 crore, the accounts and other records must be audited by a chartered accountant or a cost accountant. This threshold can vary based on specific regulations and amendments over time.

Question 15

The tax applicable to interstate supplies will be:
A)sgst only
B)cgst only
C)igst only
D)cgst-igst

Accepted Answer

Interstate supplies are taxed under the Integrated Goods and Services Tax (IGST) model, which combines the components of CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) for interstate transactions.

Question 16

A person is liable to registered under GST law where aggregate sale of good exceeds__________________ after 1.4.2019. in general category
A)rs.40,00,000
B)rs.20,00,000
C)rs.15,00,00 0
D)rs.1,50,000

Accepted Answer

After 1st April 2019, the threshold for GST registration for suppliers of goods was increased to Rs. 40,00,000 for those in the general category states, making option A correct.

Question 17

GST is applicable on___________________________ of goods or services.
A)supply
B)manufacture
C)consumpti on
D)production

Accepted Answer

GST is applicable on the supply of goods or services, not specifically on their manufacture, consumption, or production.

Question 18

The first 2 digit of GSTIN represent___________________________
A)entity code
B)country code
C)state code
D)checksum character

Accepted Answer

The first 2 digits of the Goods and Services Tax Identification Number (GSTIN) represent the state code as per the Indian Census 2011.

Question 19

The definition of goods under the GST Act does not include_________
A)grass
B)growings crops
C)actionable claims
D)money & securities

Accepted Answer

Under the GST Act, "goods" do not include money and securities.

Question 20

If the payment to the supplier of goods or services is not made within__________________from the date of issue of invoice, the input tax credit on such goods or services cannot be availed.
A)6 months
B)180 days
C)45 days
D)30 days

Accepted Answer

The correct answer is 180 days. According to tax regulations in many jurisdictions, if the payment to the supplier of goods or services is not made within 180 days from the date of issue of the invoice, the input tax credit on such goods or services cannot be availed. This rule is designed to ensure timely payment to suppliers and proper cash flow within the economy.

Quiz 1: Concepts Related to GST in India

GST was introduced in India with effect from

Goods and service tax is _________

Inter-state trade is presently subject to

GST can be collected by

The chair of GST Council

Where the location of the supplier and the place of supply are in two different States _________

One tooth paste and tooth brush and a toilet soap sold in a packet for Rs. 50, is

The notified limit for payment of composition levy is ______________

A Composite taxpayer is required to file summarised details of transactions

Introduction of GST affects the revenue of

Goods which get input tax credit without being liable to collect output tax is called

Any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business is

If application for registration is ___________________________, the registration shall be effective from the date on which the person becomes liable for registration.

When turnover during a financial year exceeds__________________ the accounts and other records must be audited by a chartered accountant or a cost accountant

The tax applicable to interstate supplies will be:

A person is liable to registered under GST law where aggregate sale of good exceeds__________________ after 1.4.2019. in general category

GST is applicable on___________________________ of goods or services.

The first 2 digit of GSTIN represent___________________________

The definition of goods under the GST Act does not include_________

If the payment to the supplier of goods or services is not made within__________________from the date of issue of invoice, the input tax credit on such goods or services cannot be availed.