Correct Answer:
(B) Indirect Tax
GST is known as the Goods and Services Tax. It is a single, comprehensive, indirect tax which has subsumed almost all the indirect taxes (like Service Tax, Central Excise, State VATs etc.) except a few taxes. It is a multi-stage, destination-based tax that is levied on every value addition. The GST Act was passed in the Parliament on 29th March, 2017 and came into effect on 1st July, 2017. GST is levied on the supply of goods and services.
Note: Officially known as The Constitution (One Hundred and First Amendment) Act, 2016, this amendment introduced a National Goods and Services Tax (G.S.T.) in India from 1 July, 2017. It was introduced as the One Hundred and Twenty Second Amendment Bill of the Constitution of India.
Ques: 2
Consider the following statements :
GST Council is chaired by the Union Finance Minister and the Minister of State-in-charge of Revenue or Finance at the centre is a member.
The GST Council will decide the tax rate, exempted goods and the threshold under the new taxation regime.
State Governments will have the option to levy VAT, if they so decide.
Of these –
Correct Answer:
(D) Only 1 and 2 are correct
Goods & Services Tax Council is a constitutional body (under Article 279A) for making recommendations to the Union and State Government on issues related to Goods and Service Tax. The GST Council is chaired by the Union Finance Minister and other members are the Union Minister of State-in-charge of Revenue or Finance and Minister-in- charge of Finance or Taxation of all the States. The GST Council will decide about the tax rate, exempted goods and will also determine the threshold under the new tax regime. The GST Council shall recommend the date on which the goods and service tax be levied on petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel. After the imposition of GST, State Government do not have the option to levy VAT.
Ques: 3
What has been kept under the purview of Goods and Services Tax (GST)?
Correct Answer:
(D) Ghee
At present, Alcohol for human consumption, Electricity and Petroleum products are kept outside the purview of Goods and Services Tax (GST) in India, while Ghee has been kept under the purview of GST.
Ques: 4
Consider the following items :
Cereal grains hulled
Chicken eggs cooked
Fish processed and canned
Newspapers containing advertising material
Which of the above items is/are exempted under GST (Goods and Services Tax)?
Correct Answer:
(C) 1, 2 and 4 only
Presently, among the given options - hulled cereal grains, cooked chicken egg (in shell) and newspapers (with or without advertising material) are exempted (0% rate) under Goods and Services Tax (GST). Processed and canned fish and chicken eggs (not in shell) are taxable at 5% rate under GST.
Ques: 5
The term 'Revenue Neutral Rate' is related to :
Correct Answer:
(A) Goods and Service Tax (GST)
Revenue Neutral Rate (RNR) is a structure of different rates established in order to match the previous revenue generation with revenue under Goods and Services Tax (GST). RNR calculations include the cascading effect on certain goods having no excise or sales tax implications. It is actually the rate of tax that allows the Government to receive the matching amount of money despite changes in the tax laws.