The GST and GST Council GK MCQs With Answer & Explanation in English article provides a comprehensive set of multiple-choice questions designed to help readers understand the fundamentals of the Goods and Services Tax (GST) and the role of the GST Council in India.
Whether you’re preparing for competitive exams or looking to deepen your knowledge, this article offers clear explanations and answers to key questions about GST, ensuring a better grasp of this critical tax reform. Dive into the essentials of GST and the GST Council with these informative MCQs.
1. Which of the following is the highest tax slab of GST?
- 12%
- 18%
- 20%
- 28%
Show Answer
Answer: 28%
Goods and Service Tax (GST) is a value-added tax levied on the supply of goods and services. It is divided into four different tax slabs for the collection of tax, which are 5%, 12%, 18%, and 28%. These tax rates vary depending on the nature of the goods or services being supplied.
2. GST is a type of which of the following?
- Direct tax
- Indirect tax
- It depends on the goods and services
- It depends on the associate states
Show Answer
Answer: Indirect tax
GST is indeed a type of indirect tax. Unlike direct taxes, which are paid by individuals or entities directly to the government, indirect taxes are imposed on the production or distribution of goods and services, and the tax burden is often passed on to the end consumer.
3. What type of GST will be applicable for the Interstate supply of goods?
- CGST
- IGST
- SGST
- None of the above
Show Answer
Answer: IGST
Integrated Goods and Services Tax (IGST) is applicable for the interstate supply of goods. IGST is levied by the central government, and it ensures that tax revenue from the interstate movement of goods is divided between the origin state and the destination state.
4. Who among the following was appointed the head of the first committee to design a GST model?
- Vijay Kelkar
- Asim Dasgupta
- Pranab Mukherjee
- V.P. Singh
Show Answer
Answer: Asim Dasgupta
In 1999, the Vajpayee government appointed Asim Dasgupta as the head of the first committee to design a GST model. This committee played a crucial role in laying the foundation for the GST framework in India.
5. What is the full form of ISD which is related to GST?
- Input Service Distributor
- Indian Standard Data
- Income Strength Distribution
- Inter State Delivery
Show Answer
Answer: Input Service Distributor
ISD stands for Input Service Distributor. It is a provision under GST law mentioned in Section 2(61) of the CGST/SGST Act. An ISD is an office or establishment of a taxpayer that receives tax invoices for input services and distributes the credit of central tax (CGST), state tax (SGST), integrated tax (IGST), or union territory tax (UTGST) on such invoices to supplier units.
6. How many digits are there in the GSTIN (Goods and Services Tax Identification) number?
- 12
- 13
- 15
- 18
Show Answer
Answer: 15
The Goods and Services Tax Identification Number (GSTIN) consists of 15 digits. It’s a unique identification number assigned to every registered taxpayer under the GST regime, helping in the smooth identification and tracking of businesses.
7. When did the Kelkar committee recommend rolling out Goods and Service Tax?
- 2002
- 2005
- 2010
- 2011
Show Answer
Answer: 2005
In the year 2002, the Vajpayee government constituted a committee to recommend tax reforms under Vijay Kelkar. In the year 2005, keeping in mind the suggestions of the 12th Finance Commission, the committee recommended rolling out Goods and Service Tax.
8. India followed the dual-mode of Goods and Service Tax from which of the following country?
- USA
- Canada
- Russia
- France
Show Answer
Answer: Canada
India followed the Canadian model of the dual-mode of Goods and Service Tax to justify the federal structure with the Constitutional requirement of fiscal federalism. This dual model means that both the Centre and the States have the authority to levy and collect GST.
9. Which among the following goods are exempted from levying GST as of now?
1. Alcoholic liquor for human consumption
2. Natural gas and aviation turbine fuel
3. Supply of petroleum crude
4. Medical kit
Choose the correct option from the codes given below:
- 1 & 2 1,
- 2 & 3 1,
- 3 & 4 1,
- 2, 3 & 4
Show Answer
Answer: 2 & 3 1,
Exempted goods under GST include alcoholic liquor for human consumption, natural gas and aviation turbine fuel, supply of petroleum crude, diesel, and petrol. These goods are not subject to GST.
10. Which among the following is empowered to notify a transaction to be a supply of goods or supply of services?
- Central government alone
- State government alone
- GST council
- Centre or State Government on the recommendations of the GST Council
Show Answer
Answer: Centre or State Government on the recommendations of the GST Council
The authority to notify a transaction to be a supply of goods or supply of services is empowered to the Centre or State Government on the recommendations of the GST Council. This process ensures uniformity and clarity in the classification of transactions for tax purposes.
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