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GST MCQ Questions and Solutions with Explanations | Commerce

GST MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. GST MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam.

Each section contains 100 MCQs on GST .
1
GST Stands for
Discuss
Answer & Solution
Answer: Option C
Solution:
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST is indirect tax provides revenue for the government. In India it is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
2
In India GST became effective from
Discuss
Answer & Solution
Answer: Option C
Solution:
The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. It is an Indirect Tax which has replaced many Indirect Taxes in India.
3
In India GST came effective from July 1st, 2017 India has chosen _______ model of dual – GST.
Discuss
Answer & Solution
Answer: Option C
Solution:
India has chosen the Canadian model of dual GST. Only a handful of countries, such as India, Canada and Brazil, have a dual GST structure.
4
GST is a _______ based tax on consumption of goods and services.
Discuss
Answer & Solution
Answer: Option B
Solution:
In India it is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
5
Indian GST model has _________rate structure.
Discuss
Answer & Solution
Answer: Option B
Solution:
In India GST model has 4 basic rate structure. They are 5%, 12%, 18% and 28%
6
What does “I” stands for in IGST?
Discuss
Answer & Solution
Answer: Option C
Solution:
Integrated goods and services tax (IGST) would mean the tax levied under IGST Act on the supply of any goods and / or services in the course of inter-state trade or commerce. Integrated GST shall also apply to import of goods and services into India.
7
How many types of taxes will be in Indian GST?
Discuss
Answer & Solution
Answer: Option B
Solution:
There are three types of taxes :
1. State GST (SGST)/Union Territory GST (UTGST),
2. Central GST (CGST) and
3. Integrated GST (IGST)
8
First announcement to introduce GST by 2010, is made in Year
Discuss
Answer & Solution
Answer: Option C
Solution:
In 2000, idea of adopting GST was first suggested by the Atal Bihari Vajpayee Government. In February 2006 - First announcement of GST was made by the Union Minister during the 2006-2007 budget, that it would be introduced on April 1, 2010.
9
Which of the following tax is not subsumed in GST
Discuss
Answer & Solution
Answer: Option B
Solution:
Subsume means to absorb or include or place within something larger or more comprehensive group or class. With introduction of GST in India, It subsumed multiple indirect taxes of Center and State both.
10
What are the taxes levied on an Intra-State Supply?
Discuss
Answer & Solution
Answer: Option C
Solution:
When the place of supply of buyer as well as the location of the seller is in the same state, a seller must collect both SGST and CGST from the buyer. The SGST gets deposited with the state government, and CGST gets deposited with the central government.