Table of Contents
What is GST ?
10TH ICSE IMPORTANT MCQ ON GOODS AND SERVICES TAX . GST Means Goods and services tax. In simple term GST is an Indirect tax charged on Goods and service tax. Taxable event is supply. Supply may be Interstate or Intra state. Interstate means when supply is made from One state to another from one union territory to another union territory or to state or supply is made from India to another country. Intra state supply means supply with in the state.
When GST was introduced first time in the India?
The Goods and service tax act was passed in the parliament on 29th May,2017. The said act was passed in the parliament and came into the effect from 1st July, 2017.
Reason for introducing GST The main reason to introduce GST was to eliminate cascading effect which was they’re in the previous tax structure.
4 Different types of taxes under GST?
Typically, there are four types of taxes which are covered under GST
1. CGST- Central Goods and services Tax
2. IGST- Integrated Goods and Service Tax
3. SGST- State Goods and Service Tax
4. UGST- Union Territory Goods and Service Tax
1. CGST: CGST (Central GST) is charged by central government. This tax is collected on the transactions made with in state. This tax will replace CST, Service tax, entertainment tax. Rate of CGST is same as on SGST. For example, if supply of good or service requires to charge total 18% GST than the same divided into equal proportion and 9% of the amount of supply of Goods and services are charged as CGST and rest 9% amount is charged as SGST. When goods/service is supplied with in same state i.e. Intra state than CGST is charged. Transaction made by Mr. X from Uttar Pradesh to Mr. Y who is also located in the Uttar Pradesh than CGST+SGST is charged.
2. IGST: IGST (Integrated GST) is applicable on interstate transactions of goods and service tax. IGST is also charged on the import goods. IGST is controlled by central government. This tax is collected by central government and will distribute between two different states. When Goods or service is supplied from one state to another state than IGST is charged.Mr C located in the Gujrat and Mr. D is in the Maharashatra than IGST+SGST. State who consumes service will get tax benefit irrespective of service supplied by other state.
3. SGST: SGST (State GST) is applicable on the Intrastate supply. For e.g. If A provides service to B and if A and B are located into Maharashtra (i.e in the same state) than SGST is charged on the goods. As we have seen in the example of CGST that if certain supply of service or product requires to charge 18% GST than the this 18% will be bifurcate in the same proportion.
4. UGST: UGST (Union territory GST). In India there are total 9 union territories.
What is Input AND Output tax credit?
Input tax credit is used while paying tax liability. If person supplies good or service than he charged GST to the customer.
When her charges GST to another person term output tax is used. This is to avoid cascading effect of tax. While at the time of purchase of raw material or any business-related goods and service than the same is termed as Input tax.
SUMMARY
GST Means Goods and services tax. In simple term GST is an Indirect tax charged on Goods and service tax. Taxable event is supply. Supply may be Interstate or Intra state.
Interstate means supply or services form one state to other state (IGST)
Intra state means supply or services form within same state
(GST=CGST+SGST) CGST AND SGST BOTH ARE 50% OF GST
TAX LIABILITY = OUT PUT TAX CREDIT – INPUT TAX CREDIT
10TH ICSE IMPORTANT MCQ ON GOODS AND SERVICES TAX GIVEN BELLOW
1. A dealer in Calcutta buys some goods worth Rs. 6,000. If the rate of GST is 18%, find how much will the dealer pay for the goods bought.
(a) 7800 (b) 8070
(c) 7080 (d) 7819
2. The tax invoice of a telecom service in Meerut shows cost of services provided by it as Rs. 750. If the GST rate is 18%, find the amount of the bill.
(a) 885 (b) 858
(c) 588 (d) 508
3. Mr. Pankaj took Health Insurance Policy for his family and paid Rs. 900 as SGST. Find the total annual premium paid by him for his policy, rate of GST being 18%.
(a) 10000 (b) 100000
(c) 1000 (d) 2000
4. Let A, B and C be three traders belonging to different to different states. Trader A sells some goods/services to trader B for Rs. 500 and trader B sells the same goods/services to trader C at a profit of Rs. 200. Calculate the tax liability of B, if the rate GST is 12%.
(a) 42 (b) 24
(c) 48 (d) 84
5. A shopkeeper sells an article for 1,770 with GST 18%. A customer willing to buy this article, asks the shopkeeper to reduce the price of the article that he pays only 1.888 including GST. If the shopkeeper agrees for this how much reduction will the shopkeeper give ?
(a) 70 (b) 170
(c) 270 (d) 370
6. For a dealer A. the list price of an article is Rs. 9,000, which he sells to dealer B at some lower price. Further, dealer B sells the same article to a customer at its list price. If the rate of GST is 18% and dealer B paid a tax, under GST, equal to Rs. 324 to the government, find the amount (inclusive of GST) paid by dealer B.
(a) 4896 (b)9864
(c) 4869 (d) 8496
7. The marked price of an article is 6.000. A wholesaler sells it to a dealer at 20% discount. The dealer father sells the article to a customer at a discount of 10% on the marked price. If the rate of GST at each stage is 18%, find the amount of tax (under GST) paid by the dealer to the government.
(a) 108 (b) 180
(c) 810 (d) 801
8. Mr. Malik went on a tour to Goa. He took a room in a hotel for two days at the rate of Rs. 5,000 per day. On the same day, his friend John also joined him. Hotel provided an extra bed charging Rs. 1000 per day for the bed. How much GST, at the rate of 28% is charged by the hotel in the bill to Mr. Malik for both the days ?
(a) 3360 (b) 6033
(c) 3063 (d) 3361
9. Ashraf went to see a movie. He wanted to purchase a movie ticket for Rs. 80. As the ticket for Rs. 80 was not available, he purchased a ticket for Rs. 120 of upper class. How much extra GST did he pay for the ticket? (GST for a ticket below Rs. 100 is 18% and GST for a ticket above Rs. 100 is 28%).
(a) 1920 (b) 192.0
(c) 19.20 (d) 1.920
10. The marked price of an article is Rs,9,000 and rate of GST on it = 18%. A shopkeeper buys this article at a reduced price and sells it at its marked price. If the shopkeeper paid 162 as CGST to the government, find the amount Inclusive of GST paid by the shopkeeper
(a) 8946 (b) 8495
(c) 8497 (d) 8496
11. A product is sold from Kanpur (U.P.) to Banaras (U.P.) for Rs. 12,000 and then from Banaras to Ranchi (Jharkhand) at a profit of Rs. 4,000. If the rate of GST is 18%, find the net GST payable at Banaras.
(a) 72 (b) 720
(c) 7200 (d) 702
12. A manufacturer in Delhi manufactures a machine and marks it at Rs. 60,000.
He sells the machine to a wholesaler (in Patna) at a discount of 20%. The wholesaler sells the machine to a dealer (in Agra) at a discount of 10% on the marked price. If the rate of GST is 28% , find the tax paid by the wholesaler to the cenral-government.
(a) 1680 (b) 1690
(c) 1695 (d) 1670
13. Goods/services are sold from Kota (Rajasthan) to Mumbai for Rs 20,000 and then from Mumbai to Pune. If the rate of GST is 12% and the profit made at Mumbai is Rs. 5,000; find the net GST paid at Pune, if the dealer at Pune is the end-user.
(a) 3000 (b) 300
(c) 4000 (d) 5000
14. A is a manufacturer of TV sets in Delhi. He manufactures a particular brand of T.V. set and marks it at Rs. 75,000. He then sells this T.V. set to a wholesaler B in Punjab at a discount of 30%. The wholesaler B raises the marked price of the TV. set bought by 30% and then sells it to dealer C in Delhi. If the rate of GST = 5%, find tax (under GST) paid by wholesaler B to the government.
(a) 2350 (b) 2450
(c) 2550 (d) 2250
15. For a trader, marked price of a refrigerator Rs. 15,680 inclusive of GST at the rate of 12% on the marked price, Gagan, a customer for this refrigerator, asks the trader to reduce the marked price of the refrigerator to such an extend that its reduced price plus GST on it is equal to marked price of the refrigerator, Find the required reduction.
(a) 1550 (b) 1650
(c) 1750 (d) 1500
16. Mohit, Rajiv and Geeta live in the same city. Mohit sells an article to Rajiv for Rs. 50,000 and Rajiv sells the same article to Geeta at a profit of Rs. 6,000. If all the transactions are under GST system at the rate of 12% find
Tax Paid by Rajiv to the State Government (SGST)
(a) 360 (b) 260
(c) 602 (d) 702
17. Given below are the cost of some financial services, in the same city, taxable under GST.
Cost of services Rs. 500, Rs. 300, Rs. 400 and Rs. 600. If the rate of GST is 12% find the amount of GST on these services.
(a) 612 (b) 216
(c) 208 (d) 316
ANSWER KEY FOR GST(ICSE)
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