JAIIB · AFM

Goods & Service 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, a comprehensive indirect tax implemented in India on 1st July 2017, replacing multiple cascading taxes levied by the central and state governments.

Q

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

A

Central Goods and Services Tax levied by the central government.

Q

What is the constitutional amendment that 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, which grants concurrent powers to both Parliament and State Legislatures to levy GST.

Q

What is the full form of SGST and who collects it?

A

State Goods and Services Tax, collected by respective state governments.

Q

What are the three components of GST levied in India?

A

The three components are CGST (Central GST) levied by the Centre, SGST (State GST) levied by the State, and IGST (Integrated GST) levied by the Centre on inter-state supplies and imports.

Q

Which article of the Indian Constitution empowers Parliament to levy GST?

A

Article 246A, inserted by the 101st Constitutional Amendment Act.

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, imports into India, and supplies to/from Special Economic Zones.

Q

What is the GST registration threshold for suppliers in special category states?

A

Rs. 10 lakh aggregate turnover for special category states.

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