GST Quiz Questions: Fundamentals of Goods and Services Tax

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Questions and Answers

Explain the taxable event under GST and what constitutes 'supply' of goods and services?

The taxable event under GST is the 'supply' of goods and services. 'Supply' includes all forms of supply such as sale, transfer, barter, exchange, license, rental, lease, or disposal.

What are the different types of supplies in the context of GST? Provide examples.

The different types of supplies under GST include intrastate, interstate, import, and export. For example, an intrastate supply occurs when goods or services are supplied within the same state, while an interstate supply occurs when goods or services are supplied from one state to another.

What is the time of supply under GST and why is it important?

The time of supply under GST refers to the point in time when a supply is deemed to have occurred. It is important because it determines the due date for payment of tax and filing of returns.

Explain the tax treatment of Special Economic Zones (SEZ) under GST.

SEZs are deemed to be territories outside the customs territory of India under GST. Supplies to and from SEZs are treated as zero-rated supplies, with options for claiming refunds or utilizing input tax credit. Signup and view all the answers

What is the Composition Scheme under GST and who is eligible to opt for it?

The Composition Scheme under GST is a simpler compliance scheme for small taxpayers. Eligible businesses with an aggregate turnover up to a specified limit can opt for this scheme and pay a flat rate of tax on their turnover. Signup and view all the answers

What is the meaning of 'supply' of goods and services under GST?

The term 'supply' under GST includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease, or disposal. Signup and view all the answers

What is the Composition Scheme under GST and who is eligible to opt for it?

The Composition Scheme is a simple and easy scheme under GST for small businesses. It is available to taxpayers with an aggregate turnover of up to Rs. 1.5 crore in the preceding financial year. Under this scheme, taxpayers pay tax at a fixed rate on their turnover without the ability to claim input tax credit. Signup and view all the answers

What is the significance of 'Time of Supply' under GST?

'Time of Supply' under GST determines the point in time when a supply of goods or services is deemed to have occurred. It is crucial for determining the due date for payment of tax, the rate of tax, and the applicable period for filing returns. Signup and view all the answers

What is the tax treatment of Special Economic Zones (SEZ) under GST?

Supplies to or from Special Economic Zones (SEZs) are considered as zero-rated supplies under GST, which means that the goods or services supplied to or from SEZs are not subject to GST. However, SEZ units are eligible to claim a refund of the input tax paid on inputs and input services. Signup and view all the answers

What is the procedure relating to the levy of CGST and SGST under GST?

Under GST, the Central Government levies and collects Central Goods and Services Tax (CGST), while the State Government levies and collects State Goods and Services Tax (SGST) on intra-state supplies. The taxes are levied on the same transaction but are administered separately by the respective governments. Signup and view all the answers

Explain the concept of 'supply' of goods and services under GST.

Under GST, 'supply' refers to all forms of supply of goods or services such as sale, transfer, barter, exchange, license, rental, lease, or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Signup and view all the answers

What is the meaning of 'time of supply' under GST and why is it important?

The 'time of supply' under GST refers to the point in time when a supply of goods or services is deemed to have occurred. It is important as it determines the due date for payment of tax, the rate of tax, and the period for which the tax is to be paid. Signup and view all the answers

What is the Composition Scheme under GST and who is eligible to opt for it?

The Composition Scheme under GST is a simpler compliance scheme for small businesses. Businesses with an aggregate turnover of up to a specified limit can opt for this scheme, which allows them to pay tax at a fixed rate on their turnover without input tax credit. Signup and view all the answers

What is the significance of 'Place of Supply' under GST, especially in the context of E-Commerce?

The 'Place of Supply' under GST is crucial in determining the applicability of IGST (Integrated Goods and Services Tax) in case of interstate transactions. In the context of E-Commerce, it helps in determining whether a supply is an intrastate supply or an interstate supply, thus impacting the tax treatment. Signup and view all the answers

How does GST impact the taxation of Alcohol for human consumption and Petroleum products?

GST has brought Alcohol for human consumption and Petroleum products under its ambit, but they are currently kept out of the purview of GST. However, excise duty and other indirect taxes still apply to these products. Signup and view all the answers

Study Notes

Taxable Event and Supply under GST

A taxable event under GST occurs when there is a supply of goods and services, which is defined as all forms of supply of goods, services, or both, including sale, transfer, barter, exchange, license, rental, lease, or disposal.
The supply of goods and services includes all types of transactions, such as sale, transfer, barter, exchange, license, rental, lease, or disposal, made for consideration by a person in the course of business.
The term "supply" also includes transactions between related persons, as well as transactions between distinct persons.

Types of Supplies under GST

There are two main types of supplies: goods and services.
Goods include movable property, including stocks and shares, but exclude money and securities.
Services include all forms of provision of service, including intangible services, and also excludes money and securities.

Time of Supply under GST

The time of supply is the point in time when the liability to pay GST arises.
The time of supply is important because it determines when the GST liability arises and when the tax is payable.
The time of supply depends on the nature of the supply, whether it is a supply of goods or services.

Tax Treatment of Special Economic Zones (SEZ) under GST

SEZs are treated as deemed exports, and supplies to SEZs are exempt from GST.
Supplies from SEZs to the Domestic Tariff Area (DTA) are treated as imports and are subject to GST.

Composition Scheme under GST

The Composition Scheme is a simplified tax payment scheme for small businesses with a turnover of up to ₹1 crore (₹75 lakh for NE states).
Businesses that opt for the Composition Scheme pay a fixed percentage of their turnover as GST, rather than the actual GST liability.

Place of Supply under GST

The place of supply determines the GST rate applicable to a transaction.
In the case of e-commerce, the place of supply is the location of the recipient of the goods or services.
The place of supply rules also apply to cross-border transactions.

GST Impact on Alcohol and Petroleum Products

GST is not applicable to alcohol for human consumption, which is subject to state excise duties.
Petroleum products, including petrol, diesel, and natural gas, are subject to GST, but the GST rate is not applicable to these products.
Instead, these products are subject to excise duties and VAT.

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Description

Test your knowledge of GST and indirect taxes with this quiz based on the fundamentals of GST. Explore topics such as levy and collection procedures, taxable events, supply of goods and services, e-commerce, place of supply, time of supply, and exemptions. This quiz is designed for students pursuing B.Com or B.Com (Hons) and covers relevant topics from the syllabus taught by Prof. Jayalakshmi K U at CMR University.