Know about GST ( Goods and Services Tax ) – Important Questions

We are writing this article to help the examinees who wish to know about GST. We are presenting information on Goods and Services Tax in the form of Objective Questions. GST has been in the news for various reasons for long time. So this is the current issue. Readers ( examinees of UPSC/ SSC etc) may get some benefits from it, we hope so.

Objective Type Questions on GST for all Exams –

Q. How is GST officially known as ?

Ans – The Constitution 122nd Amendment Bill, 2014

Q. When will the bill come in to effect ?

Ans – From April 1, 2017.

Q. When was GST first discussed ?

Ans – In the report of the Kelkar Task Force on Indirect Taxes in 2003.

Q. How many countries have implemented GST/ VAT so far ?

Ans – Around 160 Countries

Q. Difference between VAT and GST –

Ans – Both are same if they include both Value Added on Goods and Services Tax. You can call it by either name. But if you don’t include Service Tax, it is only VAT.

Q. Which is the first state of India to ratify the GST ?

Ans – Assam

Information GK Questions on Goods and Services Tax Bill (GST)

Q. Of which Article of Constitution, the Bill is linked ?

Ans – The Act came in to existence in accordance with the provisions of Article 368 of the Constitution.

Q. How many components of GST shall be keeping in view of the federal structure of India ?

Ans – Two Components namely Central GST ( CGST) and State GST ( SGST ).

Q. Who chairs the GST council ?

Ans – Union Finance Minister

Q. Who shall be the members of GST Council ?

Ans – All the State Governments

Q. For how many years will the state govt seek compensation for loss of revenue arising on account of implementation of the Goods and Services Tax ?

Ans – For Five Years

Q. How much additional tax can the Centre impose on the inter-state supply of goods for two years or more ?

Ans – Up to 1%

Q. What is the exemption threshold under GST ?

Ans – Rs 20 lakh turnover and Rs 10 lakh for the North-Eastern States and other Small States.

Some More Questions/ Facts related with GST –

GST Council 14th Meet took place on 14th of May 2017.

The Council finalized Four Tax Rates – 5%, 12%, 18% and 28% for various Services which are to be imposed from July 1 2017.

Things under exemptions – Education, Healthcare, Hotels and lodges with tariff under Rs 1000/-.

• Under 5% taxes – Transport Services, Uber, Ola cabs, restaurants with 50 lac or below turnover.
• Things under 12% Taxes – Business class air tickets, Non-AC hotels, fertilizers work contracts.
• 18% Tax – Telecom, IT Sector, Insurance, AC Hotels, Financial Services.
• Things with 28% Taxes – Cinema, Five Star Hotels, Gambling, Betting at race course.

Myths and Realities about GST

Some Frequently Asked Questions about GST –

Q. Is there any exemption on the basis of area under GST ?

Answer – No, there shall be no area based exemption.

Q. How long will it take to register under GST ?

Answer – It will take 30 days to complete registration related formalities from its date of liability.

Q. With Zero % GST items, is it necessary to register for GST even if the turnover crosses Rs 20 lac ?

Answer – No, there is no need.

Q. When can a new Tax Payer apply for New Registration under GST ?

Answer – Registration has begin from 25th of June 2017. You can register right now.

Q. What is the official website for New Registration and related information ?

Answer – gst.gov.in

Read More Facts/ Highlights Regarding with GST and its launch. 

For more updates keep coming.

Read more GK and Awareness questions click here.