Countdown begins for GST..
All the four laws that we needed to pass have been passed by Parliament. All states need to pass the State GST — 24 states have done; only 7 are remaining and those states, unfortunately, have no option but to pass them before July 1. And if we talk about the preparedness of IT Network, it is all set for the implementation of GST and will handle the GST Compliance. We should also get prepared for the India's Future Indirect Taxation Reform.
Therefore, Legal Suvidha team have compiled a GST Quiz covering the Basics of Goods and Service Tax to the Practical Aspects of GST on the basis on Latest Act and Rules under GST. Lets Start with the Basics of GST and will reach the practical aspects of GST step by step.
This Quiz has 20 Multiple choice Questions(MCQ), Link to Correct Answer will be shown after submission of the answers and please try to answer all Questions in order to learn more.
GST stands for Goods and Services Tax, which will be levied on the supply of goods or services or both in India. GST will subsume a number of existing indirect taxes being levied by the Centre and State Governments, including Central Excise duty, Service Tax, VAT, Purchase Tax, Central Sales Tax, Entry Tax, Local Body Taxes, Octroi, Luxury Tax, etc.
GST is a destination based consumption tax. It has been designed in a manner so that the tax is collected at every stage and the credit of tax paid at the previous stage is available to set off the tax to be paid at the next stage of transaction, thereby eliminating cascading of taxes. This eradicates “tax on tax” and allows cross utilization of input tax credits, which benefit the industry by making the entire supply chain tax neutral.
GST will give a major boost to the ‘Make in India’ initiative of the Government by making goods or services produced or provided in India competitive in the national and international markets. Further, all imported goods will be charged with integrated tax (IGST), which will be more or less equivalent to Central GST + State GST. This brings parity in taxation on local and imported products.
GST is largely technology driven. The interface of the taxpayer with the tax authorities will be through the common portal (GSTN). There will be simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc. All processes, be it of applying for registration, filing of returns, payment of taxes, filing of refund claims etc., would be done online through GSTN. The input tax credit will be verified online. Electronic matching of input tax credit across India will make the process more transparent and accountable. This will encourage a culture of compliance. This will also greatly reduce the human interface between the taxpayer and the tax administration, leading to speedy decisions.
Average tax burden on trade and industry is likely to come down, which is expected to reduce prices, resulting in more consumption, which in turn means more production and thereby boosting the growth of the industries. The removal of cascading of taxes and increased transparency will make the citizens more informed about the taxes they pay while purchasing goods or services. GST will boost domestic demand, create more opportunities for domestic business and drive job creation. GST might not be the panacea for all the ills of indirect tax system but is also not far from that.