As on date, everyone is talking about GST bill ( Goods and Services Tax Bill). Govt. of India is trying hard to get the bill implemented from 1st Apr 2017. Its a very trending and popular topic from exam point of view. There must be one or two questions in coming competitive exam related to GST. Here we are providing some basic but important questions with answers related to Goods and Services Tax that may be asked in exams.
What is the full form of GST?
What is the definition of GST?
- GST is a single tax applies on the supply of goods and services. It is applied from the manufacturer to the consumer.
GST will be applied on whom and by which?
- The last consumer will pay the Goods & Services Tax to the last dealer of Goods or Services.
How GST will work?
- Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.
GST is a Direct Tax or Indirect Tax?
- Indirect Tax and will be applicable for all over India.
What are the Two Components of GST?
- The Two component of GST are Central GST (CGST) and State GST (SGST).
Which Taxes of State Govt. will be covered in Goods & Services Tax?
- The following are the State Govt. tax that will be covered in GST after the implementation of GST.
- Subsuming of State Value Added Tax/Sales Tax,
- Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
- Octroi and Entry tax,
- Purchase Tax,
- Luxury tax, and
- Taxes on lottery, betting and gambling.
Which Taxes of Central Govt. will be covered in GST?
- The following are the Central Govt. tax that will be covered in GST after the implementation of GST.
- Central Excise Duty,
- Additional Excise Duty,
- Service Tax,
- Additional Customs Duty commonly known as Countervailing Duty, and
- Special Additional Duty of Customs.
History of GST: Some Important Points to be remembered
- First introduced in 2003 in the report of Kelkar Task Force.
- Kelkar Task force prepared report on Indirect Tax.
- First time used in the Budget Speech of FY 2006-2007
- A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was said in the Budget Speech of FY 2006-2007
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