vs GOODS AND SERVICES TAX (GST) 

ONE WORD TO ONE SENTENCE QUESTIONS 

Q.1. What do you mean by GST ?

Ans. GST is a Comprehensive Indirect Tax : GST is a comprehensive indirect tax which replaced all indirect taxes that were earlier levied except Customs Duty taxes on alcohol for human consumption taxes on petroleum and taxes levied by Local Bodies .

Q.2. If a partner takes goods for personal use or goods are given as charity why Input GST (CGST and SGST or IGST ) Account is credited ?

Ans. It is credited because at the time of purchase GST paid on these goods was debited to Input GST (CGST and SGST  or IGST ) Account the goods are not sold and therefore GST (CGST and SGST or

Q.3. What will be the journal entries for the transactions on purchase of goods. (with GST)

Ans. On Purchase

Purchase A/c                                Dr.

Input CGST A/c                            Dr.

Input SGST A/c                            Dr.

         To Creditors A/c

(being the purchase made)

Q.4. What do you mean by CGST & SGST ?

Ans. CGST = Central Goods & Services Tax

         SGST= State Goods 7 Services Tax.

Q.5. What do you mean by IGST \?

Ans. IGST = Integrated Goods 7 Services Tax.

Q.6. Where CGST 7 SGST Levied ?

Ans. CGST & SGST levied on intra state (i.e. supply within the state ) of goods and/or services both are charged (levied) at half of the prescribed rate of tax.

Q.7. Where is IGST levied ?

Ans. IGST levied on inter-state supply (i.e. supply outside within the state ) of goods and/or services imports of goods and/or services into India and expect of goods and /or services from India

Q.8. Name two objectives of GST.

Ans. (i) Developing Common National Market

(ii) Better Tax Management.

Q.9. Name any three goods/services which are exempted from Levy of GST.

Ans.  (a) Supply of Services to government and UNO.

(b) Supply to Embassies of other countries.

© Educational Services Health Services and Electricity and Water Bills .

Q.10. Name some cases where GST Paid (Input GST) is Reversed.

Ans. (a) Goods Lost or Stolen destroyed.

(b) Goods written off goods given as gifts (Charity).

(c) Goods given as free samples 

FILL IN THE BLANKS :

A. Input GST set off against _____________

B. GST Paid is not a cost by it is an ____________

Ans. 1. Output GST  2. Asset.

MULTIPLE CHOICE QUESTIONS

1. On intra state (i.e., within the state ) purchase of goods which of the following GST is levied :

1. CGST

2. SGST

3. CGST SGST

4. SGST &  IGST

2. On inter state (i.e. outside the state ) purchase of goods which of the following GST is levied :

1. IGST

2. IGST and CGST

3. CGST

4. SGST

3. On inter state sale of goods which of the following account is credited :

1. Output CGST A/c

2. Output IGST A/c

3. Input  IGST A/c

4. Output SGST A/c

Ans. 1. C   2. A   3. B .