Textbook Exercise Questions and Answers
I. Choose the Correct Answer
Question 1.
Who is the chairman of the GST council?
(a) RBI Governor
(b) Finance Minister
(c) Prime Minister
(d) President of India
Answer:
(b) Finance Minister
Question 2.
GST Stands for …………….
(a) Goods and Supply Tax
(b) Government sales Tax
(c) Goods and Services Tax
(d) General Sales Tax
Answer:
(c) Goods and Services Tax
Question 3.
What kind of Tax the GST is?
(a) Direct Tax
(b) Indirect Tax
(c) Dependence on the Type of Goods and Services
(d) All Business Organisations
Answer:
(b) Indirect Tax
Question 4.
What is IGST?
(a) Integrated Goods and Service Tax
(b) India Goods and Service Tax
(c) Initial Goods and Service Tax
(d) All the above
Answer:
(a) Integrated Goods and Service Tax
Question 5.
In India GST became effective from?
(a) 1st April, 2017
(b) 1st January, 2017
(c) 1st July, 2017
(d) 1st March, 2017
Answer:
(d) 1st March, 2017
II. Very Short Answer Questions
Question 1.
Define Indirect tax.
Answer:
Indirect Tax is levied on the goods and services. It is collected from the buyers by the sellers and paid by the sellers to the Government. Since it is indirectly imposed on the buyers it is called indirect tax.
Question 2.
List out any four types of indirect taxes levied in India.
Answer:
Question 3.
What do you mean by Goods and Services Taxes?
Answer:
Goods and Services Tax (GST) is the tax imposed on the supply (consumption) of goods and services. It is a destination based consumption tax and collected on those value added items at each stage of the supply chain.
Question 4.
Write a note on SGST.
Answer:
SGST – State Goods and Services Tax – is imposed and collected by the State Governments under State GST Act. (Tamil Nadu GST Act 2017 passed by Tamil Nadu Govt.)
Question 5.
What is CGST?
Answer:
CGST – Central Goods and Services Tax – is imposed and collected by the Central Government on all supply of goods within a state (intra – state) under CGST Act 2017.
III. Short Answer Questions
Question 1.
Write any two differences between direct taxes and indirect taxes?
Answer:
Question 2.
What are the objectives of GST?
Answer:
Question 3.
Briefly explain the functions of GST council.
Answer:
Question 4.
Explain IGST with an example.
Answer:
IGST – Inter-State Goods and Services Tax is imposed and collected by the Central Government and the revenue is shared with States under IGST Act 2017.
Question 5.
Write any three demerits of UGST.
Answer:
IV. Long Answer Questions
Question 1.
Distinguish between direct taxes and indirect taxes.
Answer:
Question 2.
Discuss the different kinds of GST.
Answer:
GST is of three kinds: CGST, SGST/UGST, and IGST.
1. CGST – Central Goods and Services Tax – imposed and collected by the Central Government on all supply of goods within a state (intra-state) under CGST Act 2017.
2. SGST – State Goods and Services Tax – imposed and collected by the State Governments under State GST Act. (Tamil Nadu GST Act 2017 passed by Tamil Nadu Govt.)
3. UGST – Union Territory Goods and Services Tax – imposed and collected by the five Union Territory Administrations in India under UGST Act 2017.
4. IGST – Inter-State Goods and Services Tax – imposed and collected by the Central Government and the revenue shared with States under IGST Act 2017.
5. IGST on exports – All exports are treated as Inter-State supply under GST. Since exports are zero rated, GST is not imposed on all goods and services exported from India. Any input credit paid already on exports will be refunded.
Question 3.
Elucidate the merits of GST.
Answer:
A. To the Society and country:
B. To Business Community:
C. To Consumers:
Question 4.
Compare CGST, SGST and IGST.
Answer: