JAIIB · AFM · Chapter 2

Goods & Services Tax

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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One-liners from this chapter

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Q

When was GST introduced in India?

A

01 July 2017 under Constitution (101st Amendment) Act, 2016.

Q

What taxes did GST replace?

A

Service tax, central excise, VAT, CST, octroi, entry tax, luxury tax and multiple cesses.

Q

What is the key difference between direct and indirect tax?

A

Direct tax burden cannot shift; indirect tax burden shifts through supply chain.

Q

What was GST 2.0's major change effective 22 September 2025?

A

Old four-slab (5/12/18/28) restructured to three-slab (5/18/40) plus 0% nil-rated.

Q

What are the four components of GST in India?

A

CGST, SGST, IGST, UTGST based on transaction location and federalism structure.

Q

Who chairs the GST Council?

A

Union Finance Minister of India.

Q

What voting power split exists in GST Council?

A

Centre one-third, States combined two-thirds; three-fourths majority required for decisions.

Q

What GST rate applies to banking and financial services (SAC 9971)?

A

18% GST, unchanged in GST 2.0 regime.

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