GSEB Class 11 Accounts Important Questions Part 1 Chapter 3 Introduction to Goods and Services Tax

Gujarat Board GSEB Class 11 Commerce Accounts Important Questions Part 1 Chapter 3 Introduction to Goods and Services Tax Important Questions and Answers.

GSEB Class 11 Accounts Important Questions Part 1 Chapter 3 Introduction to Goods and Services Tax

Very Short Questions (VSQs)
Answer the following questions in one sentence : [1 mark each]

Question 1.
How many types of taxes are collected by,the government to meet the economic needs of the nation?
Answer:
TYvo types of taxes are collected by the government to meet the economic needs of the nation :

1. Direct taxes and
2. Indirect taxes.

Question 2.
Who collects indirect taxes in India ?
Answer:
In India, indirect taxes are collected by the central government and state governments or union territories.

Question 3.
Before GST, which indirect taxes were collected by the central government ?
Answer:
Before GST, Central sales tax, Central excise duty, Central custom duty and Service tax were collected by the central government.

Question 4.
Before GST, which indirect taxes were collected by the state government or union territories ?
Answer:
Before GST, Value Added Tax (VAT), Purchase tax, Sales tax and Entertainment tax were collected by the state governments or union territories.

Question 5.
By which slogan GST was implemented ?
Answer:
GST was implemented by the slogan of “One Nation, One tax”.

Question 6.
From when GST was implemented in India ?
Answer:
In India, GST was implemented from 1st July, 2017.

Question 7.
How many Acts are formed for the implementation of GST?
Answer:
There are five Acts are formed for the implementation of GST.

Question 8.
What is the meaning of GST ?
Answer:
Tax which is applicable on supply of goods and services is known as GST.

Question 9.
Under whom entire operations and regulations of GST are done?
Answer:
Entire operations and regulations of GST are done through GST Council.

Question 10.
Who is representing the GST council?
Answer:
Each state is representing the GST council.

Question 11.
Who is the chairman of GST council at present?
Answer:
At present Finance Minister Shri Arun Jaitly is the chairman of GST council.

Question 12.
Who recommended all GST rates?
Answer:
All GST rates are recommended by the GST council.

Question 13.
What is the aim of GST Council?
Answer:
The aim of GST council is to develop a harmonized national market of goods and services.

Question 14.
What is the highest rate of tax prescribed under IGST?
Answer:
The highest rate of tax prescribed under IGST is 28%.

Question 15.
What are GST rates for the special goods ?
Answer:
For the special goods GST rates are 0.25% and 3%.

Question 16.
Imports of goods and services are treated as which supply?
Answer:
Imports of goods and services are treated as interstate supply.

Question 17.
What is range of GST rates?
Answer:
The range of GST rates is between 0 % to 28%.

Question 18.
Which provisions are covered under the CGST Act?
Answer:
Under the CGST Act, provisions pertaining to central goods and services tax are covered.

Question 19.
Which provisions are covered under the SGST Act?
Answer:
Under the SGST Act, provisions pertaining to state goods and services tax are covered.

Question 20
Which are main provisions included in the UTGST Act?
Answer:
In the UTGST Act, provisions pertaining to union territories goods and services tax are included.

Question 21.
Which are main provisions covered in the IGST Act?
Answer:
In the IGST Act, provisions pertaining to supply of goods or services or both, made other than own state/union territories tax are covered.

Question 22.
Explain, in short, about the GST Compensation Cess Act.
Answer:
Under the GST Compensation Cess Act, the state government, whose tax collection will be reduced, will be compensated with the same.

Question 23.
How will GST be administered and ! collected in India ?
Answer:
GST will be administered by categorizing | under two parts – Central GST (CGST) and State ! GST (SGST).

Question 24.
What are the GST slab rates that will ! be imposed in India on different goods and | services ? I
Answer:
In India, the rate of GST as applicable ! on goods and services are 0%, 5%, 12%, 18% j and 28 %.

Question 25.
What kind of tax is GST ?
Answer:
GST is an indirect tax which will be levied on the goods and services both.

Question 26.
Mention the full form of following:
1. GST,
2. CGST,
3. SGST,
4. UTGST,
5. IGST and 6. ITC.
Answer:

1. Full form of GST is Goods and Services Tax.
2. Full form of CGST is Central Goods and Services Tax.
3. Full form of SGST is State Goods and Services Tax.
4. Full form of UTGST is Union Territory Goods and Services Tax.
5. Full form of IGST is Integrated Goods and Services Tax.
6. Full form of ITC is Input Tax Credit.

z

Short Questions (SQs)
Short Answer the following questions in brief :

Question 1.
Which five Acts are formed for the j implementation of GST? ‘
Answer:
Following five Acts are formed for the implementation of GST :

1. The CGST Act
2. The SGST Act
3. The UTGST Act
4. The IGST Act
5. The GST Compensation Cess Act

Question 2.
What is GST and types of GST?
Answer:
GST stands for Goods and Services Tax. It is classified into three types :

1. CGST – Central GST,
2. SGST – State GST and
3. IGST – Integrated GST.

Question 3.
In India to meet economic needs of the nation, which kind of indirect taxes were collected by the central government and state governments ?
Answer:
In order to meet the economic needs of the nation in India, following, indirect taxes were
collected by the government.

Question 4.
Mention three or four points regarding rate of GST.
Answer:
Rate of GST: Under the GST Act, different tax rates are determined on the basis of necessity of goods and services.

• These tax rates are decided keeping in mind the nature of goods, from basic needs to luxury needs.
• The range of GST rates is between 0 % to 28 %.
• All GST rates are recommended by the GST council.

Multiple Choice Questions (MCQs)
Write the correct option from those given below each question: [1 mark each]

Question 1.
Which of the following tax is not subsumed in GST?
(a) VAT
(b) Service tax
(c) Income tax
(d) Entertainment tax
Answer:
(c) Income tax

Question 2.
What kind of tax is GST ?
(a) Direct tax
(b) Indirect tax
(c) Special tax
(d) Common tax
Answer:
(b) Indirect tax

Question 3.
Before GST, which of the following indirect tax was levied by the state government ?
(a) Excise duty
(b) Custom duty
(c) Service tax
(d) Entertainment tax
Answer:
(d) Entertainment tax

Question 4.
Before GST, which of the following indirect tax was not included in state government ?
(a) VAT
(b) Purchase tax
(c) Service tax
(d) Entertainment tax
Answer:
(c) Service tax

Question 5.
Before GST, which of the following indirect tax was levied by the central government?
(a) VAT
(b) Purchase tax
(c) Service tax
(d) Entertainment tax
Answer:
(c) Service tax

Question 6.
Before GST, which of the following indirect tax was not included in central government?
(a) Excise duty
(b) Custom duty
(c) VAT
(d) Service tax
Answer:
(c) VAT

Question 7.
In India, GST became effective from …………………. .
(a) 1st April, 2017
(b) 1st January, 2017
(c) 1st March, 2017
(d) 1st July, 2017
Answer:
(d) 1st July, 2017

Question 8.
Which of the following tax will be abolished by the GST?
(a) Service tax
(b) Income tax
(c) Wealth tax
(d) Corporation tax
Answer:
(a) Service tax

Question 9.
In India, how many Acts are formed for the implementation of GST ?
(a) T\vo
(b) Three
(c) Four
(d) Five
Answer:
(d) Five

Question 10.
How many types of GST in India?
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three

Question 11.
Indian GST model has ………………. rates structure.
(a) three
(b) four
(c) five
(d) six
Answer:
(b) four

Question 12.
Which of the following is true for the interstate supply ?
(a) CGST + IGST
(b) SGST + IGST
(c) CGST + SGST
(d) IGST
Answer:
(d) IGST

Question 13.
Which of the following is true for the union territory supply?
(a) CGST + UTGST
(b) SGST + UTGST
(c) UTGST + IGST
(d) CGST + SGST
Answer:
(a) CGST + UTGST

Question 14.
What does “I” stands for in IGST?
(a) International
(b) Internal
(c) Integrated
(d) Intra
Answer:
(c) Integrated

Question 15.
What does “C” stands for in CGST?
(a) Common
(b) Central
(c) Centrally
(d) Centralized
Answer:
(b) Central

Question 16.
What does “G” stands for in GST?
(a) General
(b) Global
(c) Goods
(d) Great
Answer:
(c) Goods

Question 17.
What does “S” stands for in SGST?
(a) Simple
(b) State
(c) Special
(d) Silent
Answer:
(b) State

Question 18.
What does “UT” stands for in UTGST?
(a) United Territory
(b) Unique Territory
(c) Union Territory
(d) Unions Territory
Answer:
(c) Union Territory

Question 19.
What are the taxes levied on an intrastate supply ?
(a) CGST + IGST
(b) SGST + IGST
(c) IGST + UTGST
(d) CGST + SGST
Answer:
(d) CGST + SGST

Question 20.
Which GST is charged when movement of goods and services from one state to another ?
(a) SGST
(b) CGST
(c) IGST
(d) UTGST
Answer:
(c) IGST

Question 21.
Which of the following GST will be levied on imports of goods and services ?
(a) CGST
(b) SGST
(c) IGST
(d) Exempt
Answer:
(c) IGST

Question 22.
Which of the following tax rate is not applicable under the GST?
(a) 5%
(b) 12 %
(c) 18 %
(d) 25 %
Answer:
(d) 25 %

Question 23.
Which of the following includes in supply?
(a) Goods
(b) Goods and Services
(c) Services
(d) Goods or Services
Answer:
(b) Goods and Services

Question 24.
GST is a …………………. based tax on consumption of goods and services.
(a) duration
(b) destination
(c) dividend
(d) development
Answer:
(b) destination

Question 25.
The value of supply of goods and services shall be the ……………… .
(a) transaction value
(b) MRP value
(c) market value
(d) basic value
Answer:
(a) transaction value

Question 26.
Who is the chairman of GST council ?
(a) RBI Governor
(b) Prime Minister
(c) Finance Minister
(d) Finance Secretary
Answer:
(c) Finance Minister

Question 27.
The headquarters of GST council is located at ……………… .
(a) New Delhi
(b) Ahmedabad
(c) Mumbai
(d) Hyderabad
Answer:
(a) New Delhi

Question 28.
Which terminology is used in place of rule of goods and services or both ?
(a) Demand
(b) Supply
(c) Retail
(d) Consumption
Answer:
(b) Supply

Question 29.
How many tax slabs are there for GST mainly for services ?
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(c) Four

Question 30.
The tax IGST is charged by ………………… government.
(a) central
(b) state
(c) union territory
(d) All of these
Answer:
(a) central

Question 31.
GST is a ………………. tax on the supply of goods and services.
(a) value added
(b) single
(c) dual
(d) additional
Answer:
(b) single

Question 32.
What is lowest rate of tax prescribed under IGST?
(a) 5%
(b) 0 %
(c) 0.25 %
(d) 3 %
Answer:
(c) 0.25 %

Question 33.
GST laws, rules, procedure and GST rates are ……………… across the country.
(a) different
(b) similar
(c) nominal
(d) higher
Answer:
(b) similar

Question 34.
For which type of goods GST rates are 0.25 % and 3 % ?
(a) Special goods
(b) Imports goods
(c) Common goods
(d) Exports goods
Answer:
(a) Special goods