JAIIB · AFM

GST Mod D Questions

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, and it was implemented in India on 1st July 2017, replacing multiple indirect taxes under a unified tax structure.

Q

What is the GST rate applicable on interest income earned by banks?

A

Interest income is exempt from GST under Schedule II.

Q

What type of tax structure does GST follow in India?

A

GST follows a dual tax structure where both the Central Government (CGST) and the State Government (SGST) levy taxes simultaneously on the same transaction within a state.

Q

What is the GST rate on life insurance premium paid by individuals?

A

Life insurance premium attracts 18% GST on the risk portion.

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 supplies of goods and services, and on imports into India.

Q

Which GST return form is used to report inward supplies received by a taxpayer?

A

GSTR-2A is an auto-drafted form showing inward supplies.

Q

What are the four main GST tax slabs applicable in India?

A

The four main GST tax slabs are 5%, 12%, 18%, and 28%, with essential goods either exempt or taxed at 0%, while luxury and demerit goods attract the highest slab plus cess.

Q

What is the GST rate applicable on general insurance premiums?

A

General insurance premiums attract 18% GST.

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