Unit No 4: Introduction to Goods & Services Tax Law & Accounting

 Financial Accounting – I Course Code 112 (Semester – I)

 Unit No 4:

Introduction to Goods & Services Tax Law & Accounting

MCQ (Multiple Choice Question)

1. GST was introduced in India with effect from

·      1.1.2017

·      1.4.2017

·      1.1.2018

·      1.7.2017

2. GST was introduced in Jammu and Kashmir with effect from

·      1.8.2017

·      1.7.2017

·      1.1.2018

·      8.7.2017

3. Constitution Amendment Act, 2016 for GST was

·      80th

·      101st

·      122nd

·      None of these

4. As a result of constitution amendment for GST a Separate List --- has been inserted in the constitution.

·      Article 246A

·      Article 146B

·      Article 122 C

·      Article 101B

 5. The incidence of tax on tax is called

·      Tax Cascading

·      Tax Pyramiding

·      Tax evasion

·      Indirect tax

6. Under GST, ‘value addition’ refers to

·      Expenses ‘plus’ profit

·      Cost plus tax

·      Cost plus tax plus ‘profit

·      Tax plus profit

7. UTGST is applicable when

·      Sold from Union territory

·      Goods are purchased by Central Government

·      Sold from one union territory to another union territory

·      There is interstate supply

8. Integrated Goods and Services Tax is applicable when -

·      Sold in Union territory

·      Sold from one GST dealer to another GST dealer

·      Sold within a state

·      There is interstate supply

  

9. SGST is applicable when

·      Goods are sold within a state

·      Goods are sold from one GST dealer to a customer

·      Goods are sold by a GST dealer to another GST dealer

·      Interstate supply

10. The tax which was not merged into GST

·      Countervailing Duty

·      Excise duty

·      Basic Customs Duty

·      Purchase tax

11. Goods and service tax is a – tax system

·      Single point tax

·      Multipoint tax

·      Regressive tax

·      None of these

12. Goods and service tax is --

·      Supply based

·      Consumption based

·      Both supply and consumption based

·      None of these

 

13. When a GST dealer in Kerala sells a product of a GST dealer or customer in Tamil Nadu, the tax collected is

·      SGST

·      CGST

·      Integrated GST

·      UTGST

14. After introduction of GST import into India is –

·      Subject to IGST plus BCD

·      Subject to CGST plus SGST plus BCD

·      Zero rated

·      SGST plus CGST plus IGST plus BCD

15. After introduction of GST supplies to SEZ are

·      Subject to IGST

·      Subject to CGST plus SGST

·      Zero rated

·      SGST plus CGST plus IGST

16. GST is a matter of jurisdiction of

·      Union Government

·      State Government

·      Both center and state government

·      None of these

  

17. Inter-state trade is presently subject to

·      SGST

·      CGST

·      Integrated GST

·      UTGST

18. Introduction of GST affects the revenue of

·      Consuming states

·      Manufacturing states

·      All the states

·      Central Government

19. The council can take a decision only if there is

·      Three- fourth majority

·      Two third Majority

·      60% majority

·      Simple majority

20. GST dealers with annual turnover of --- are not required to use HSN code

·      Less than Rs. 1.5 core

·      Less than Rs. 20 lakh

·      Less than Rs. 1 core

·      Less than Rs. 75 lakh

  

21. Dealers whose annual turnover between Rs. 1.5 core and Rs. 5 core need to use

·      Two-digit HSN code

·      Four digit HSN Codes

·      Four digit HSN Codes

·      Eight digit HSN codes

22. Dealers with annual turnover of Rs. 5 core and above must use -- for their invoices.

·      Two-digit HSN code

·      Four digit HSN Codes

·      Four digit HSN Codes

·      Eight digit HSN codes

23. In the case of import or export of goods, using -- is compulsory

·      Two-digit HSN code

·      Four digit HSN Code

·      Four digit HSN Code

·      Eight digit HSN code

24. Under GST law SAC refers to --

·      Systematic Accounting Code

·      Service Accounting Code

·      System administration code

·      Scientific accounting code

25. Under GST law, tax rates are determined by

·      Central Government

·      State Government

·      GST Council

·      Central Government in consultation with state governments

26. The lowest tax rate under GST is --

·      0.25%

·      1%

·      0.05%

·      5%

27. Base metals, gold, silver, articles of jewelry are taxable in India at the rate of

·      0.25%

·      1%

·      3%

·      5%

28. The highest GST rate applicable now is ---

·      100%

·      18%

·      28%

·      50%

 29. Tax Deducted at Source at the rate of 1% is applicable in the case of supplies received by

·      Any GST dealer

·      Government Departments

·      Ecommerce operators

·      Composite dealers

30. Tax Collected at Source at the rate of 2% is applicable in the case of

·      Any GST dealer

·      Government Departments

·      E-commerce operators

·      Composite dealers

31. Composite tax is applicable for dealer with turnover upto

·      Rs. 1 Crore

·      Rs. 20 lakh

·      Rs. 1.5 Crore

·      Rs. 10 Crore

32. Under GST law Compensation cess is applicable on

·      Luxury articles and demerit goods

·      All goods

·      Petroleum products and Alcohol

·      Consumer goods

 

33. Goods which get input tax credit without being liable to collect output tax is called

·      Exempt goods

·      White goods

·      Sin goods

·      Zero rated goods

34. GST can be collected by

·      Any registered dealer

·      Any GST dealer

·      Any service provider

·      Any dealer

35.______confers powers to Government of India to collect tax on intra-state supply of goods or services or both.

·      UTGST Act

·      IGST Act

·      CGST Act

·      SGST Act

36. Under GST law “Aggregate turnover” of a dealer

·      Includes taxes paid

·      Excludes taxes paid

·      Includes exempt supplies

·      Turnover plus taxes plus profit

 

37. Under GST law “Aggregate turnover” of a dealer is determined

·      State-wise

·      All India basis

·      shop-wise

·      None of these

38. Under GST law “Agriculturist” means

·      Individual or Hindu Undivided Family only

·      Individual only

·      Any entity engaged in agricultural operations

·      Anyone who sells agricultural produces

39. Business vertical refers to

·      Joint venture

·      Different business within a group

·      Competitors in business

·      None of these

40. Goods which are used or intended to be used in the course or furtherance of business are

·      Demerit goods

·      Business goods

·      Capital goods

·      None of these

41. A person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business is

·      Business person

·      Casual taxable person

·      Composite dealer

·      Nonresident dealer

42. Supply of two or more taxable supplies naturally bundled and supplied is called

·      Mixed supply

·      Composite supply

·      Common supply

·      Continuous supply

43. Goods are packed and transported with insurance, packing materials, transport and insurance. This is a case of

·      Mixed supply

·      Composite supply

·      Common supply

·      Continuous supply

44. Supply of goods provided, or agreed to be provided, continuously or on recurrent basis, under a contract, is

·      Mixed supply

·      Composite supply

·      Common supply

·      Continuous supply

·       

45. Indian Oil Corporation Ltd. sends 10,000 liters of petrol every day to a petrol pump and invoices the same every week. This is a case of

·      Mixed supply

·      Composite supply

·      Common supply

·      Continous supply

46. Any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business is

·      Input

·      Output

·      Merit goods

·      White goods

47. --- refers to receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration.

·      Outward supply

·      Inward supply

·      Taxable supply

·      None of these

48. Two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other

·      Mixed supply

·      Composite supply

·      Common supply

·      Continuous supply

49. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is

·      Common supply

·      Composite supply

·      Mixed supply

·      Continuous supply

 50. Any person who occasionally undertakes transactions involving supply of goods or services or both, but who has no fixed place of business or residence in India is

·      Business person

·      Casual taxable person

·      Composite dealer

·      Nonresident dealer

 51. Output tax of a taxable person,

·      Includes reverse charge

·      Excludes reverse charge

·      Includes composite tax

·      Includes all the taxes paid

52. Supply of goods or services which constitutes the predominant element of a composite supply is called

·      Common supply

·      Principal supply

·      Mixed supply

·      Continuous supply

 

53. Liability to pay tax by the recipient of supply of goods or services is called

·      Output tax

·      Reverse charge

·      Input tax

·      None of these

 

54. The chair of GST Council

·      Nominated by the Gov.

·      Nominated by the GST Council

·      Union Finance Minister

·      Elected by the GST council

 

 55. In the GST council meetings, the vote of the Central Government shall have a weightage of

·      1/3 of votes cast

·      1/2 of votes cast

·      2/3 of votes cast

·      None of these

 

56. In the GST council meetings votes of all the State Governments taken together shall have a weightage of

·      1/3 of votes cast

·      1/2 of votes cast

·      2/3 of votes cast

·      None of these

 

57. Tax rate on goods under GST are determined by

·      Union budget

·      State budget

·      GST council

·      Central Gov. in consultation with state Govt.

 

 58. Integrated Goods and Services Tax Act is applicable to

·      All the States

·      All the Union territories

·      The whole of India

·      All the states except Jammu and Kashmir

 

59. Integrated GST is applicable on goods or services

·      Imports

·      Interstate Sale

·      Exported from India

·      Imports and interstate sales

 

60. The rate of IGST is equal to the rate of

·      CGST

·      SGST

·      CGST plus the rate of SGST

·      SGST plus UTGST