JAIIB · AFM

Goods and 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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Q

What does GST stand for in the Indian tax system?

A

GST stands for Goods and Services Tax, a comprehensive indirect tax levied on the supply of goods and services across India, replacing multiple cascading taxes.

Q

What is the full form of CGST under the GST framework?

A

Central Goods and Services Tax levied by central government.

Q

When was GST introduced in India?

A

GST was introduced in India on 1st July 2017, replacing a complex multi-tax structure that included central excise duty, service tax, and state VAT.

Q

What is the full form of SGST under the GST framework?

A

State Goods and Services Tax levied by state governments.

Q

What type of tax structure does GST follow in India?

A

GST follows a dual structure with Central GST (CGST) levied by the Centre and State GST (SGST) levied by the State on intra-state supplies, while IGST applies to inter-state supplies.

Q

What is UTGST and to which territories does it apply?

A

Union Territory GST applied in union territories without legislature.

Q

What is IGST and when is it applicable?

A

IGST (Integrated Goods and Services Tax) is levied by the Central Government on inter-state supply of goods and services, including imports, and is collected by the Centre and shared with the destination state.

Q

What is the GST rate applicable on health insurance premium?

A

GST at 18% is levied on health insurance premiums.

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