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GST: Questions & Answers
Q 1. What is GST (Goods & Services Tax)?
Ans. GST is an indirect tax applicable all over the India by merging the all indirect taxes levied by the central and state governments into single one.
GST introduced in India from 1st July 2017 (except Jammu & Kashmir), after the introduction, all the indirect taxes clubbed into the single tax that is Goods & Services Tax (GST). Now, All indirect taxes (involving at each stage of the production cycle-buying raw materials, processing, manufacturing, warehousing, and sale to the final customers) submersed to a single tax i.e. GST and will be paid by the final consumer.
Q 2. Which country implemented GST first?
Ans. France implemented GST in 1954.
Q 3. Which type of tax is GST – Direct (or) Indirect?
Ans. GST is an Indirect Tax.
Q 4. Who is the head of the GST Council in India?
Ans. Finance Minister of India
Q 5. What are the benefits of introducing GST Law in India?
Ans. – Reduces the multiple numbers of indirect taxes into single. So, the tax system gets simpler.
- Revenue will be increased.
- Consumption based tax (Consumer has to pay tax).
- Eliminates excessive taxation under different levels. (No need to pay at different stages of product life cycle-collecting raw materials, processing, manufacturing, warehousing, wholesale market, retail market).
- Reduction in transaction costs of doing business.
- Better control on leakages.
- GDP Rate will be rised.
- Easy to maintain for Central and State Government.
Q 6. What are the indirect taxes that were submersed into GST?
Ans. 1) Sales Tax
2) Service Tax
3) Value Added Tax
4) Customs Duty
5) Excise Duty
6) Anti dumping duty.
7) Entertainment Tax
8) Professional Tax
9) Property Tax
10) Transfer Tax
11) Luxury Tax
12) Taxes on lottery, betting and gambling.
Q 7. What are the GST slab rates in India on different goods & services?
Ans. There are four tax slabs in India that are: – 0%, 5%, 12%, 18%, & 28%
Q 8. How GST is administered and collected in India?
Ans. GST is administered by categorizing under two parts – Central GST (CGST) and State GST (SGST).
Q 9. India has chosen which country’s GST phenomenon?
Q 10. What are four bills related to GST got approval in parliament?
Ans. 1. Central GST Bill
- Integrated GST Bill
- Union Territory GST Bill
- Compensation Bill
Q 11. GST Rate categorized and calculated based on _______________
Ans. HSN Code or Harmonized System Nomenclature code for Goods
SAC Code System (Service Accounting Codes) for Services.
Q 12. When did GST bill introduced in the Lok sabha?
Ans. 19th December 2014 (By the Union Finance Minister ‘Arun Jaitley’)
Q 13. What is Revenue Neutral Rate (RNR)?
Ans. The rate of tax at which the revenue received by the government will remain same despite of changes in tax laws.
Q 14. What is GSTN and its role in the implementation of GST law in India?
- GSTN means Goods and Services Tax Network, a non-profit organization managed by the center, states and non -government financial organizations.
- GSTN has established on 28th March 2013 and one stop solution to make payments of all your indirect tax liabilities.
Q 15. Which country has the highest GST rate slab throughout the world?
Ans. India (28%).
2nd highest – Argentina (27%).
Q 16. What IGST and its role in GST Regime?
Ans. IGST – Integrated GST, taxes will be collected by the central government on inter-state supply of goods and services. This comes under Article 269A of the constitution. For Example, IGST will be levied on import of goods and services from other countries.
Q 17. Under which article, the formation of GST Council mentioned?
Ans. Article 279A.
Q 18. What is reverse charge and who can pay this charge?
Ans. The tax payable on supply of goods and services by the recipient.
Q 19. Which IT company has won the GST contract?
Q 20. What is GST Council and its role?
Ans. The major taxation reform ‘Goods & Services Tax’ in place of multiple indirect taxes in India is governed by the GST Council. It is joint committee of the Centre and the States to make suggestions on important issues regarding GST.
The GST Council includes:
- The Union Finance Minister (as Chairman),
- The Union Minister of State in charge of Revenue or Finance, and
- The Minister in charge of Finance or Taxation or any other Minister, nominated by each state government to make recommendations to the Union and the States on the below specified issues related to GST regime in India.
- The taxes, cesses, surcharges and model laws under GST;
- The goods and services on which taxes imposed to or exempted from the GST;
- The discussion of threshold limit of turnover up to how much amount the goods and services may be exempted from GST
- Special tax rates during any natural calamity or disaster, for a specified period to raise additional resources
- Special provision of taxes for North East States, Jammu & Kashmir, Himachal Pradesh and Uttarakhand; and
- Other matters related to the Goods & Services Tax decisions according to GST laws, principles of levy.