GST: objectives, provisions, benefits, mechanism - One Line Questions

1. Which constitutional amendment paved the way for the implementation of GST in India? — 101st Amendment
2. What is the maximum rate prescribed in the highest GST slab in India? — 28%
3. The GST Council has how many members? — 33
4. What is the standard GST rate applicable to most goods and services in India, excluding special rates? — 18%
5. GST aims to create a unified national market for goods and services. This is often referred to as: — A common market
6. What is the composition scheme in GST? — A scheme for small taxpayers to pay taxes at a concessional rate with simplified compliance
7. Goods and Services Tax (GST) was implemented in India on: — July 1, 2017
8. The GST Council is a constitutional body established under which Article of the Indian Constitution? — Article 279A
9. Which of the following is an example of a supply that might fall under the highest GST slab (28%)? — Luxury cars and aerated drinks
10. What is the general time limit for claiming Input Tax Credit (ITC) on an invoice? — Within 1 year from the date of the invoice
11. Which of the following is a major provision under GST to ensure seamless credit flow? — Availability of Input Tax Credit (ITC) on inputs, input services, and capital goods
12. What does CGST stand for in the context of Indian GST? — Central Goods and Services Tax
13. The concept of 'input tax credit' under GST allows businesses to: — Deduct the tax paid on inputs from the tax payable on outputs
14. The mechanism of GST involves the flow of credit from the center to the state and vice-versa. This is known as: — Input Tax Credit (ITC)
15. Under GST, tax is levied on the 'value addition' at each stage. This principle ensures: — Single taxation
16. The GST law classifies supplies into three categories: taxable, non-taxable, and: — All of the above
17. The GST mechanism aims to integrate India into a single, unified market by: — Removing barriers to inter-state trade and creating a seamless flow of goods and services
18. Which of the following taxes was subsumed under GST in India? — Excise Duty
19. Which of the following is a key benefit of GST for businesses? — Elimination of cascading effect of taxes
20. Which of the following is a benefit of GST related to transparency? — Digital trail of transactions and reduced scope for corruption
21. Which of the following is NOT a benefit of GST? — Increased complexity in inter-state trade initially
22. The GST regime aims to reduce corruption by: — Introducing a transparent, technology-driven process
23. GST aims to improve the ease of doing business by: — Simplifying the tax structure and reducing cascading effects
24. The GST regime aims to simplify tax administration by: — Consolidating multiple indirect taxes into one
25. What does IGST stand for in the context of Indian GST? — Integrated Goods and Services Tax
26. Which type of supply attracts IGST? — Inter-state supply of goods or services
27. Which of the following is a key provision of GST relating to place of supply? — It determines whether a supply is intra-state or inter-state
28. What is the significance of the 'value addition' principle in GST? — It prevents tax evasion by taxing only the profit margins at each stage
29. A 'zero-rated supply' under GST means: — The supply is eligible for zero tax on output with refund of input tax credit
30. When goods are supplied from one state to another within India, which taxes are levied? — IGST
31. Which of the following is a potential challenge faced during the initial implementation of GST? — Resistance to change and initial technical glitches
32. Which of the following is a benefit of GST for the government? — Increased tax buoyancy and revenue
33. Which body is responsible for making recommendations on GST rates and other policy matters in India? — GST Council
34. Which of the following is considered a 'supply' under GST? — All of the above
35. The GST regime in India is based on which model? — Dual GST
36. What does SGST stand for in the context of Indian GST? — State Goods and Services Tax
37. Which entity is responsible for administering IGST? — Central Government
38. The GST Network (GSTN) is a: — Information Technology backbone for GST
39. Under the GST regime, the tax liability on a supply is determined by: — The place of supply
40. The 'place of supply' rules are crucial for determining: — Whether CGST+SGST or IGST is applicable
41. What is the purpose of the 'Reverse Charge Mechanism' (RCM) in GST? — To shift the liability of paying tax to the recipient of the supply
42. What is the primary function of the GST Network (GSTN)? — To provide a common platform for tax filing, payment, and processing
43. What is the primary purpose of the GST return filing mechanism? — To declare sales and claim input tax credit
44. Which of the following is NOT an objective of GST? — To increase tax evasion
45. What is the primary goal of having a GST Council with representation from both the Centre and States? — To foster cooperative federalism in indirect taxation
46. What is the primary objective of implementing Goods and Services Tax (GST) in India? — To consolidate multiple indirect taxes into a single tax
47. What is the role of the 'e-way bill' under GST? — To track the movement of goods above a certain value
48. What does UTGST refer to? — Union Territory Goods and Services Tax
49. What is the threshold limit for small businesses to be exempted from GST registration in most Indian states (as per standard provisions)? — ₹40 Lakhs
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