Introduction [S.
1] 1
Chapter-1
INTRODUCTION [S. 1]
EXERCISES
7. OBJECTIVE QUESTIONS
7.1 MULTIPLE CHOICE QUESTIONS
1. GST Stands for
(a) Goods and Supply Tax (b) Government Sales Tax
(c) Goods and Services Tax (d) Good and Simple Tax
2. GST is levied in India on the basis of Principle.
(a) Origin (b) Destination
(c) Either a or b (d) Both a or b
3. The main objective of GST implementation is .
(a) To consolidate multiple indirect tax levies into single tax
(b) Overcoming limitation of existing indirect tax structure
(c) Creating efficiencies in tax administration
(d) All of above
4. Which of the following is not a bill passed by parliament for the implementation of GST in India?
(a) The Central GST Act, 2017 (b) The State GST Act, 2017
(c) The Integrated GST Act, 2017 (d) None of above
5. Petroleum products have been temporarily been kept out of GST..
(a) One (b) Two
(c) Three (d) Five
6. In India, GST structure is in nature.
(a) Single (b) Dual
(c) Triple (d) (a) & (b) both
7. GST is not levied on which of the following ?
(a) Alcoholic Liquor for Human Consumption (b) Five Petroleum Products
(c) Immovable Property (d) All of above
8. GST is not levied on which of the following ?
(a) Motor Spirit (b) High speed diesel
(c) Natural gas (d) All of above
9. is levied on Intra-State Supply of goods and/or Services.
(a) CGST (b) SGST
(c) IGST (d) Both a & b
10. is levied on Inter State Supply of Goods and/or Services.
(a) CGST (b) SGST
(c) IGST (d) Both a & b
11. is levied on Intra State Supply of Goods and/or Services in Union Territory..
(a) SGST (b) IGST
(c) UTGST (d) GST is not levied
12. Goods and Services Tax is a tax levied on goods and services imposed at each point of .
(a) Sale (b) Service
(c) Supply (d) Manufacturing
2 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
13. GST is a national level tax based on .
(a) First point tax principle (b) Value Added principle
(c) Last point tax principle (d) All of the above
14. The following tax has been subsumed into Central GST.
(a) Central Sales Tax (b) Custom Duty
(c) Service Tax (d) All of the above
15. GST was introduced in India on
(a) 1-4-2017 (b) 1-5-2017
(c) 1-6-2017 (d) 1-7-2017
16. Indian GST model has tier rate structure.
(a) 3 (b) 4
(c) 5 (d) 6
17. What does ‘I’ stands for in IGST?
(a) International (b) Internal
(c) Integrated (d) Intra
18. Which of the following tax is not subsumed in GST ?
(a) VAT (b) Stamp Duty
(c) Entry Tax (d) Entertainment Tax
19. HSN Code Stands for
(a) Home Shopping Network (b) Harmonised System of Nomenclature
(c) Harmonised System Number (d) Home State Number
20. Alcoholic liquor for Human Consumption is subject to -
(a) CGST (b) SGST
(c) IGST (d) None of the above
21. Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural
gas and aviation turbine fuel have been kept out of GST .
(a) Permanently (b) Temporarily
(c) For one year (d) None of the above
22. The items which will be taxable both under Central Excise Law and the GST even after the
implementation of the GST Act.
(a) Motor spirit (b) Tobacco and Tobacco Products
(c) Alcoholic liquor for human consumption (d) Natural Gas
23. On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol), Natural
Gas, and Aviation Turbine Fuel:
(a) GST will never be levied at all
(b) GST will be levied from a date to be notified on the recommendations of the GST Council
(c) GST will be levied, but it will be exempt
(d) None of the above
24. Supply of the following is not liable to GST .
(a) Alcoholic liquor for industrial consumption
(b) Alcoholic liquor for medicinal consumption
(c) Alcoholic liquor for human consumption
(d) Alcoholic liquor for animal consumption
25. GST is a comprehensive tax regime covering .
(a) Goods (b) Services
(c) Both goods and services (d) None of the above
26. Which of the following taxes have been subsumed under GST ?
(1) Central Excise Duty (2) Service Tax
(3) VAT (4) Luxury Tax
Select the correct answer from the options given below
(a) (1) & (2) etc. (b) (3), (1) & (2)
(c) All of the above (d) None of the above
27. GST is a comprehensive tax regime covering .
(a) Goods (b) Services
(c) Both goods and services (d) Goods, services and imports
Introduction [S. 1] 3
28. Goods and Services Tax is a tax levied on goods and services imposed at each point of
(a) Demand (b) Cash sale
(c) Supply (d) Manufacturing
29. The CGST Act, 2017 extends to
(a) Whole of India excluding the State of Jammu & Kashmir
(b) Whole of India
(c) Whole of India excluding the State of Jammu & Kashmir and Union territories
(d) Whole of India excluding the State of Jammu & Kashmir but including Union territories
7.2 FILL IN THE BLANKS
1. GST is a based tax.
2. GST is levied on all goods and services, [except / including] alcoholic liquor for human
consumption.
3. GST is levied on all goods and services, [except / including] petrol.
4. Article enabled States to levy tax on services.
5. GST Council was formed under Article .
6. Compensation under the Goods and Services Tax Act, 2017will be provided to a State
for a period of years from the date on which the State brings its SGST Act into force.
7. For the purpose of calculating the compensation amount in any financial year under the Goods
and Services Tax Act, 2017, year will be assumed to be the base year, for
calculating the revenue to be protected.
8. The Union Finance Minister is the Chairperson of the [GST Council / GSTN].
9. The [GST Council / Parliament] shall recommend the date on which the goods and
services tax be levied on petrol.
10. GSTN stands for .
11. India has adopted [Dual / Single] GST Mode.
12. CGST is applicable to [intra-state / inter-State] supply..
13. IGST is applicable to [intra-state / inter-state] supply..
14. IGST = CGST [plus / or] SGST..
15. Import will be attract Basic Custom Duty [plus / or] IGST..
16. State Stamp Duty [is / is not] subsumed under GST..
17. Betting Tax [is / is not] subsumed under GST..
7.3 MATCH THE FOLLOWING COLUMNS
Column A Column B
1. Custom Duty (a) Not subsumed under GST
2. Income Tax (b) Subsumed under GST
3. Alcoholic liquor for human consumption (c) IGST + Customs duty
4. Petrol (d) IGST
5. Immovable property (e) CGST + SGST / UTGST
6. Tobacco (f) GST + Excise Duty
7. Intra-state supply (g) Stamp Duty
8. Inter-state Supply (h) VAT / CST
9. Imports (i) No GST
10. Central Sales Tax (j) Direct Tax
11. Profession Tax (k) Indirect Tax
7.4 STATE WHETHER TRUE OR FALSE
1. Goods and Services Tax (GST), is in nature a value-added tax (VAT).
2. GST leads to cascading effect of taxes.
3. Central excise duty continues to be levied on manufacture/production of petroleum crude.
4. Transfer of immovable properties is subject to SGST (State GST) levied by the State Governments.
5. Tobacco is subject to GST as well as central excise duty.
4 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
6. The Prime Minister is the Chairperson of the GST Council.
7. CGST is applicable to imports.
8. UTGST is applicable to intra-state supply within Union Territory of Delhi.
9. SGST is applicable to intra-state supply within Union Territory of Puducherry.
10. IGST is applicable to Imports.
11. Chandigarh is governed by UTGST Act, 2017 for levying UTGST.
12. Custom Duty is subsumed under GST.
13. Purchase Tax is subsumed under GST.
14. Octroi is not subsumed under GST.
15. Luxury Tax is subsumed under GST.
7.5 CHECK YOUR ANSWERS
7.1
1. (c) 6. (b) 11. (c) 16. (b) 21. (b) 26. (c)
2. (b) 7. (d) 12. (c) 17. (c) 22. (b) 27. (c)
3. (d) 8. (d) 13. (b) 18. (b) 23. (b) 28. (c)
4. (b) 9. (d) 14. (d) 19. (b) 24. (c) 29. (b)
5. (d) 10. (c) 15. (d) 20. (d) 25. (c)
7.2 (1) destination (2) except (3) except (4) 246A (5) 279A (6) Compensation to States, five
(7) Compensation to States, 2015-16 (8) GST Council (9) GST Council (10) Goods and Services
Tax Network (11) Dual (12) intra-state (13) inter-state (14) plus (15) plus (16) is not (17) is
7.3 (1) - (k), (2) - (j), (3) - (i), (4) - (h), (5) - (g), (6) - (f), (7) - (e), (8) - (d), (9) - (c), (10) - (b),
(11) - (a)
7.4 True : 1, 3, 5, 9, 10, 11, 13, 15
False : 2, 4, 6, 7, 8, 12, 14
