Q. Under GST, which of the following is true regarding input tax credit?
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A.
It can be claimed for all purchases
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B.
It can only be claimed for capital goods
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C.
It can be claimed only if the supplier has paid the tax
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D.
It cannot be claimed at all
Solution
Input tax credit can only be claimed if the supplier has paid the tax, ensuring that the tax is actually collected.
Correct Answer:
C
— It can be claimed only if the supplier has paid the tax
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Q. What does CGST stand for?
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A.
Central Goods and Services Tax
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B.
Comprehensive Goods and Services Tax
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C.
Common Goods and Services Tax
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D.
Centralized Goods and Services Tax
Solution
CGST stands for Central Goods and Services Tax, which is levied by the central government on intra-state supplies.
Correct Answer:
A
— Central Goods and Services Tax
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Q. What is the GST rate on luxury goods?
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A.
5%
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B.
12%
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C.
18%
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D.
28%
Solution
Luxury goods are taxed at the highest GST rate of 28%.
Correct Answer:
D
— 28%
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Q. Which of the following is a feature of GST?
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A.
Dual taxation system
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B.
Single tax on goods and services
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C.
No input tax credit
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D.
Multiple tax rates
Solution
A key feature of GST is that it is a single tax on goods and services, replacing multiple indirect taxes.
Correct Answer:
B
— Single tax on goods and services
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Q. Which of the following transactions is exempt from GST?
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A.
Sale of goods
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B.
Export of goods
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C.
Sale of services
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D.
Import of goods
Solution
Export of goods is exempt from GST as it is zero-rated, meaning no tax is levied on exports.
Correct Answer:
B
— Export of goods
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