GST & Taxation Basics

JKSSB Finance Accounts Assistant · Accountancy & Book-Keeping · 26 practice questions with answers and explanations: 8 Easy, 11 Medium, 7 Hard.

Sample questions

Sample Easy question 1

GST in India replaced which of the following indirect taxes (among others)?

  1. VAT and Service Tax
  2. Income Tax
  3. Corporate Tax
  4. Wealth Tax
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Answer: A. GST subsumed indirect taxes such as VAT, Service Tax, and Excise Duty.

Sample Medium question 2

Which GST components are levied on intra-state supply of goods and services?

  1. CGST and SGST
  2. IGST only
  3. Only CGST
  4. Only SGST
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Answer: A. Intra-state supplies attract both CGST (central) and SGST (state) simultaneously.

Sample Hard question 3

What does 'input tax credit' under GST allow a business to do?

  1. Reduce its tax liability by the tax already paid on purchases
  2. Get a refund of income tax
  3. Avoid paying any tax
  4. Delay tax payments indefinitely
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Answer: A. Input tax credit lets a business offset the GST it paid on inputs against the GST it collects on sales.

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