Tag: goods and service tax
Questions Related to goods and service tax
The first committee to design GST model was headed by _____.
-
Vijay Kelkar
-
Asim Das Gupta
-
Dr. Chidambaram
-
None of the above
On February 28, 2006, GST appears in the Budget speech for the first time; Finance Minister P Chidambaram sets an ambitious April 1, 2010 as deadline for GST implementation. He said the Empowered Committee of finance ministers will prepare a road map for GST.
With the introduction of GST, imports will be ______.
-
more expensive
-
cheaper
-
neutral with no change
-
None of the above
With the introduction of GST, imports will be more expensive. The high tax rates on imports increased the total cost of imported products.
GST is applicable to all dealers with a turnover of over ______.
-
Rs. 10 lakh
-
Rs. 20 lakh
-
Rs. 40 lakh
-
Rs. 50 lakh
A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.
GST is ______________.
-
a value added tax
-
tax on goods and services
-
tax on consumer goods and services
-
none of the above
Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the entire country.
The advantages of GST to the Citizens are listed as:
-
Reduction in prices of goods and services due to elimination of cascading.
-
Uniform prices throughout the country.
-
Transparency in taxation system.
-
All of the above
- GST is a simplified transparent tax and has abolished a number of indirect taxes which was levied by the Centre and State Governments, including Central Excise duty, Service Tax, VAT, Purchase Tax, Central Sales Tax, Entry Tax, Local Body Taxes, Luxury Tax, etc.
- It focuses on removing the Cascading Effect, i.e. tax on tax.
- It has led to falling prices of many consumer goods as manufacturing cost of many good has reduced due to less burden of taxes.
- Items like a car, FMCG etc. are expected to become cheaper than before.
- As a simple rule of economics, with fall in prices of the items, there will be an increase in the demand or consumption of goods.
- This increase in demand will tend to increase the supply. Hence, will ultimately lead to the rise in production of goods.
- In the long run, it will be helpful for the common man, as increased production of goods will create more job opportunities.
- This will help in lowering the burden on the common man i.e. you will have to shed less money to buy the same products which were earlier costly.
The Service Tax which stood at 15% in the previous regime, has now been replaced with GST at 18%.
-
True
-
False
The service tax stood at 15% before the introduction of GST. Now it stands at 18% after the implementatio n of the new GST.
GST helps in _______.
-
increasing productivity
-
increasing Tax to GDP Ratio and revenue surplus
-
increasing Compliance
-
all of the above
GST helps in increasing productivity, compliance as well as Tax to GDP Ratio and revenue surplus of the country. It is designed in such as way so as to benefit one and all.
After the implementation of GST, many services of ______ have become costlier.
-
telecom
-
airline
-
banking
-
all of the above
After implementation of GST, telecom, airline and banking have become a lot more costlier. This is because of the increase in the service charges.
GST minimizes the the tax impact on inflation.
-
True
-
False
Identify the objective(s) of implementing GST.
-
Reducing economic distortions
-
Consumption based tax instead of Manufacturing
-
Subsume all indirect taxes at Centre and State Level under
-
All of the above
- One Country – One Tax
- Consumption based tax instead of Manufacturing
- Uniform GST Registration, payment and Input tax Credit
- To eliminate the cascading effect of Indirect taxes on single transaction
- Subsume all indirect taxes at Centre and State Level under
- Reduce tax evasion and corruption
- Increase productivity
- Increase Tax to GDP Ratio and revenue surplus
- Increase Compliance
- Reducing economic distortions