Question 1

Which constitutional amendment act paved the way for the introduction of Goods and Services Tax (GST) in India?

Accepted Answer

101st Amendment Act. The 101st Constitutional Amendment Act of 2016 introduced GST in India. It allowed both the Centre and States to levy taxes on the same base of goods and services. This amendment was a landmark step in India's fiscal federalism.

Question 2

What is the primary nature of Goods and Services Tax (GST) in terms of its point of collection?

Accepted Answer

Destination-based tax. GST is a destination-based tax because it is collected at the point of consumption. This means the revenue accrues to the state where the goods or services are actually consumed. It replaced the earlier origin-based tax system like Central Sales Tax.

Question 3

Which of the following is NOT one of the standard tax slabs under the GST regime in India?

Accepted Answer

15%. The standard tax slabs for GST in India are 5%, 12%, 18%, and 28%. A rate of 15% is not a standard slab used in the current structure. Additionally, some essential items are taxed at 0% to keep them affordable.

Question 4

Who serves as the Chairperson of the Goods and Services Tax (GST) Council?

Accepted Answer

Union Finance Minister. The Union Finance Minister acts as the Chairperson of the GST Council as per Article 279A. The council includes the Union Minister of State in charge of Revenue or Finance and ministers from all states. It is the primary decision-making body for all GST-related matters.

Question 5

What does 'IGST' stand for in the context of the Indian taxation system?

Accepted Answer

Integrated Goods and Services Tax. IGST stands for Integrated Goods and Services Tax which is levied on all inter-state supplies of goods and services. It is collected by the Central Government and then distributed between the Centre and the consuming state. It ensures a seamless flow of input tax credit across state borders.

GST & Tax — Set 1