JAIIB · AFM

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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Q

What does GST stand for and when was it implemented in India?

A

GST stands for Goods and Services Tax, implemented in India on 1st July 2017 as a comprehensive indirect tax replacing multiple central and state taxes.

Q

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

A

Central Goods and Services Tax levied by central government.

Q

Which constitutional amendment enabled the introduction of GST in India?

A

The 101st Constitutional Amendment Act, 2016 enabled the introduction of GST in India by inserting Article 246A, giving both Parliament and State Legislatures power to levy GST.

Q

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

A

State Goods and Services Tax levied by state governments.

Q

What is the dual structure of GST in India?

A

India follows a dual GST structure comprising Central GST (CGST) levied by the Centre, State GST (SGST) levied by States, and Integrated GST (IGST) for inter-state supplies levied by the Centre.

Q

What is the GST rate applicable on most financial services provided by banks?

A

18% GST is applicable on most banking financial services.

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 and on imports; it is administered under the IGST Act, 2017.

Q

Which body is responsible for administering GST at the central level?

A

Central Board of Indirect Taxes and Customs (CBIC) administers central GST.

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