Top 40 facts that you need to know about the Goods and Service Tax enactment in India

Top 40 facts that you need to know about the Goods and Service Tax enactment in India

Top 40 facts that you need to know about the Goods and Service Tax enactment in India

 

 

 

  1. What is GST?

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

 

  1. Who bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages?

Consumer

 

  1. What are the benefits of GST for Business and Industry?

Easy compliance

Uniformity of tax rates and structures

Removal of cascading

Improved competitiveness

Gain to manufacturers and exporters

 

  1. What are the benefits of GST for Central and State Governments?

Simple and easy to administer

Better controls on leakage

Higher revenue efficiency

 

  1. What are the benefits of GST for the consumer?

Single and transparent tax proportionate to the value of goods and services

Relief in overall tax burden

 

  1. Which taxes at the Centre level are being subsumed into GST?

At the Central level, the following taxes are being subsumed:

Central Excise Duty,

Additional Excise Duty,

Service Tax,

Additional Customs Duty commonly known as Countervailing Duty, and

Special Additional Duty of Customs.

 

  1. Which taxes at the State level are being subsumed into GST?

At the State level, the following taxes are being subsumed:

Subsuming of State Value Added Tax/Sales Tax,

Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),

Octroi and Entry tax,

Purchase Tax,

Luxury tax, and

Taxes on lottery, betting and gambling.

 

  1. How would GST be administered in India?

There will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain.

 

  1. How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?

The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits.

 

  1. Will cross utilization of credits between goods and services be allowed under GST regime?

Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST.

 

  1. Rajya Sabha on 3 August 2016 passed The Constitution (122nd Amendment) (GST) Bill, 2014. The Bill exempts ____________ Goods and Services from its purview?

Alcohol

 

  1. Which state became the first to ratify The Constitution (122nd Amendment) (GST) Bill, 2014?

Assam

 

  1. Write about the administration of GST in India?
    Centre would levy and collect Central Goods and Services Tax (CGST)
    States would levy collect the State Goods and Services Tax (SGST)
    The input tax credit of CGST would be available for discarding the CGST liability on the output at each stage.
  2. The coming of GST?
    It was first discussed in the report of the Kelkar task. Force on indirect taxes.
    In 2003, the KelkarTask Force suggested acomprehenve (GST) based on VAT principle.
    The 115th Constitution (Amendment) Act, 2001

 

  1. Write about the implementation of GST in India?
    Goods and Services Tax Network will facilitate processing of returns, registrations, audits, assessments, appeals, etc.
    All states, accounting authorities, RBI and banks, are preparing the infrastructure for the administration of GST.
    There would no minimum filing of returns.
  2. Which of the following taxes has not been subsumed the Central Tax into GST?
    Central excise Duty,
    B. Sales Tax
    C. Service Tax,
    D. Countervailing Duty

Sales Tax

 

  1. What are the different forms of supply of goods?

Transfer, Sale, As Specified in Section 3 of the CGST Act, Barter

As Specified in Section 3 of the CGST Act

 

  1. Supply of what has been included in GST?

Goods and / or Services

 

  1. What are the different types of supplies covered under the definition of ‘Supply’ in GST?

Supplies covered under Schedules

Supply made without consideration

Supplies made with consideration

 

  1. Assume there is reduction in tax rate from 24% to 20% w.e.f. 1.6.2017. Which of the following rates will be applicable when invoice is issued after change in rate of tax in June 2017 but payment is received and services provided in April 2017

24%

 

  1. Assume there is increase in tax rate from 20% to 24% w.e.f. 1.6.2017. Which of the following rate will be applicable when services are provided after change in rate of tax in June 2017 but invoice issued and payment received in April 2017

20%

 

  1. What is the rate applicable for a composition dealer, being a manufacturer?

Not exceeding 2.5%

 

  1. Name some the feature of the 122nd constitution Amendment Bill 2014?
    subsuming of various Central indirect taxes and state value Added Tax/Sales Tax etc.
    Compensation to the States for loss of revenue for a period of 5 year.
    Creation of Goods and Services Tax Council.
  2. Which of the following taxes has not been subsumed at the state level GST?
    State Value Added Tax
    B. Tax on agricultural land
    C. Entertainment Tax
    D. Taxes on lottery

Tax on agricultural land

 

  1. Which of the following is not true about taxation of imports under GST?
    The Additional Duty of Excise and the Special Additional Duty presently being levied on imports will be subsumed under GST.
    B. As per explanation to clause (1)of article 269A of the Constitution, IGST will be levied on all imports into the territory of India.
    C. The states where imported goods are consumed will now gain their share from IGST paid on Imported goods
    D. None of these

None of these

 

  1. What are the features of the proposed registration procedures under GST’
    Existing WAT/Central excise/Service Tax payers will not have to apply fresh for registration under GST.
    Single application to be filed online for registration under GST.
    The registration no will be PAN based and will serve the purpose for Centre and state.

 

  1. What are the features of the proposed returns filing procedures under GST?
    Common return would serve the purpose of both centre and state Government.
    There are eight forms provided for in the GST business processes for filing for returns.
    Small tax payers who have opted composition scheme all have to file return monthly.
  2. Which ode can be used for payment under GST?
    Electronic payment
    Payment through challan generation-GSTN
    Common Accounting Codes

 

  1. What is the rate applicable for a composition dealer, being a person other than a manufacturer?

Not exceeding 1%

 

  1. Which of the following can be asked to assist the CGST/SGST officer

Police/Customs

 

  1. What Are the GST Categories?

There are seven GST categories in total:

28%

18%

12%

5%

3%

0.25%

0 (Exempt)

 

  1. What Are the Items Not Affected by GST?

Crude oil, diesel, petrol, natural gas and jet fuel are currently not under GST.

 

  1. The government categorised ­­­­­­­­­­­­­­­__________under various tax slabs.
    1211 items

 

  1. On what products GST is 0%? 
    No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, etc.

 

  1. On what products GST is 5%?
    Items such as fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, etc.

 

 

  1. On what products GST is 12%? 
    Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices,  etc.

 

  1. On what products GST is 18%?
    Most items are under this tax slab which include footwear costing more than Rs 500, Trademarks, goodwill, software, Bidi Patta, Biscuits (All catogories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, etc.

 

  1. The Central Government revised rates of _________items.
    66 items

 

  1. On what products GST is 28%?
    Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo,etc.

 

  1. How will Gold and rough diamonds be taxed

At 3% and 0.25% respectively.
 

 

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