Tax Reforms

Description: This quiz will test your knowledge on Tax Reforms in India.
Number of Questions: 15
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Tags: indian politics political reforms tax reforms
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What was the primary objective of the Goods and Services Tax (GST) reform in India?

  1. To simplify the tax system and reduce the number of taxes.

  2. To increase the tax revenue of the government.

  3. To promote economic growth and investment.

  4. To reduce the fiscal deficit.


Correct Option: A
Explanation:

The GST reform was primarily aimed at simplifying the tax system in India by replacing multiple indirect taxes with a single comprehensive tax. This was done to reduce the compliance burden on businesses and to make the tax system more transparent and efficient.

Which of the following is NOT a benefit of the GST reform in India?

  1. Reduced compliance burden for businesses.

  2. Increased transparency and efficiency of the tax system.

  3. Lower tax rates for consumers.

  4. Increased tax revenue for the government.


Correct Option: C
Explanation:

While the GST reform has brought several benefits, such as reduced compliance burden for businesses and increased transparency, it has not resulted in lower tax rates for consumers. In fact, some goods and services have seen an increase in tax rates under the GST regime.

What is the highest tax slab under the GST regime in India?

  1. 5%

  2. 12%

  3. 18%

  4. 28%


Correct Option: D
Explanation:

The highest tax slab under the GST regime in India is 28%. This slab is applicable to luxury goods and services, such as expensive cars, jewelry, and air travel.

Which of the following sectors is exempt from GST in India?

  1. Agriculture.

  2. Education.

  3. Healthcare.

  4. Transportation.


Correct Option: A
Explanation:

Agriculture is exempt from GST in India. This means that farmers and agricultural businesses do not have to pay GST on their products or services.

What is the name of the indirect tax that was replaced by GST in India?

  1. Value Added Tax (VAT).

  2. Central Excise Duty.

  3. Service Tax.

  4. All of the above.


Correct Option: D
Explanation:

The GST reform in India replaced multiple indirect taxes, including Value Added Tax (VAT), Central Excise Duty, Service Tax, and other state-level taxes. The aim was to create a single comprehensive tax system for the entire country.

Which constitutional amendment was passed to implement the GST reform in India?

  1. 101st Amendment.

  2. 102nd Amendment.

  3. 103rd Amendment.

  4. 104th Amendment.


Correct Option: A
Explanation:

The 101st Amendment to the Constitution of India was passed in 2016 to implement the GST reform. This amendment empowered the central government to levy and collect GST on goods and services.

What is the role of the GST Council in India?

  1. To make recommendations on GST rates and exemptions.

  2. To resolve disputes between the central and state governments.

  3. To oversee the implementation of GST.

  4. All of the above.


Correct Option: D
Explanation:

The GST Council is a constitutional body that plays a crucial role in the implementation of GST in India. It is responsible for making recommendations on GST rates and exemptions, resolving disputes between the central and state governments, and overseeing the overall implementation of GST.

Which of the following is NOT a challenge faced by the GST reform in India?

  1. Complexity of the tax system.

  2. Lack of awareness among businesses.

  3. High compliance costs.

  4. Economic slowdown.


Correct Option: D
Explanation:

While the GST reform has faced several challenges, such as complexity of the tax system and lack of awareness among businesses, it is not directly linked to the economic slowdown in India. The economic slowdown is attributed to a combination of factors, including global economic conditions and domestic policy decisions.

What is the name of the online portal used for GST registration and filing returns in India?

  1. GSTN Portal.

  2. GST Suvidha Provider.

  3. GST Seva Kendra.

  4. GST Info.


Correct Option: A
Explanation:

The GSTN Portal is the official online portal for GST registration, filing returns, and other GST-related services in India. Businesses and taxpayers can access the portal to comply with their GST obligations.

Which of the following is NOT a type of GST return that businesses need to file in India?

  1. GSTR-1.

  2. GSTR-2.

  3. GSTR-3.

  4. GSTR-4.


Correct Option: D
Explanation:

GSTR-4 is not a type of GST return that businesses need to file in India. GSTR-1, GSTR-2, and GSTR-3 are the main GST returns that businesses are required to file.

What is the due date for filing GSTR-3B returns under the GST regime in India?

  1. 10th of every month.

  2. 15th of every month.

  3. 20th of every month.

  4. 25th of every month.


Correct Option: C
Explanation:

The due date for filing GSTR-3B returns under the GST regime in India is the 20th of every month. This return is a summary of the outward supplies and input tax credit claimed by the business.

Which of the following is NOT a benefit of the e-invoicing system under GST in India?

  1. Reduced paperwork.

  2. Improved efficiency.

  3. Increased transparency.

  4. Lower compliance costs.


Correct Option: D
Explanation:

While the e-invoicing system under GST offers several benefits, such as reduced paperwork, improved efficiency, and increased transparency, it does not necessarily lead to lower compliance costs for businesses. In fact, some businesses may incur additional costs to implement and maintain the e-invoicing system.

What is the name of the mobile app launched by the GST Council to facilitate GST-related services?

  1. GST Suvidha Provider.

  2. GST Seva Kendra.

  3. GST Info.

  4. GST Mobile App.


Correct Option: D
Explanation:

The GST Council launched the GST Mobile App to provide taxpayers with easy access to GST-related services. This app allows users to file GST returns, track the status of their refunds, and receive updates on GST-related matters.

Which of the following is NOT a feature of the GSTN Portal?

  1. Online GST registration.

  2. Filing of GST returns.

  3. Payment of GST.

  4. Generation of e-invoices.


Correct Option: D
Explanation:

Generation of e-invoices is not a feature of the GSTN Portal. Businesses are required to use authorized e-invoicing software or service providers to generate e-invoices.

What is the name of the scheme introduced by the government to promote digital payments under GST?

  1. GST Cashback Scheme.

  2. GST Reward Scheme.

  3. GST Digital Payment Scheme.

  4. GST Incentive Scheme.


Correct Option: A
Explanation:

The GST Cashback Scheme was introduced by the government to encourage digital payments under GST. Under this scheme, consumers who make GST payments through digital modes, such as debit cards, credit cards, and UPI, are eligible for cashback rewards.

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