Gujarat Board GSEB Textbook Solutions Class 11 Commerce Accounts Part 1 Chapter 3 Introduction to Goods and Services Tax Textbook Exercise Questions and Answers.

Gujarat Board Textbook Solutions Class 11 Accounts Part 1 Chapter 3 Introduction to Goods and Services Tax

GSEB Class 11 Accounts Introduction to Goods and Services Tax Text Book Questions and Answers

1. Write the correct option from those given below each question:

Question 1.
G’ST includes ………………….. of central and state government.
(a) Indirect taxes
(b) Direct taxes
(c) Direct and indirect taxes
(d) Indirect and direct taxes
Answer:
(a) Indirect taxes

Question 2.
Which of the following was state government indirect tax prior to GST ?
(a) Custom duty
(b) Excise duty
(c) Value added tax
(d) Service tax
Answer:
(c) Value added tax

Question 3.
Which of the following was not central government indirect tax prior to GST?
(a) Custom duty
(b) Excise duty
(c) Service tax
(d) Purchase tax
Answer:
(d) Purchase tax

Question 4.
Implementation of GST year is ……………….
(a) 2016
(b) 2017
(c) 2015
(d) 2014
Answer:
(b) 2017

Question 5.
Which of the following is correct for supply of within state/union territory?
(a) CGST + SGST / UTGST
(b) IGST + SGST/UTGST
(c) CGST + IGST
(d) IGST – SGST / UTGST
Answer:
(a) CGST + SGST/UTGST

Question 6.
Which tax is applicable for supply of outside state/union territory?
(a) CGST
(b) IGST
(c) SGST
(d) UTGST
Answer:
(b) IGST

2. Answer the following questions in one sentence:

Question 1.
In India to meet economic needs of the nation, which kind of taxes were collected by the government?
Answer:
In India to meet economic needs of the nation, two types of taxes were collected by the government:

1. Direct taxes and
2. Indirect taxes.

Question 2.
Which items are taxable under GST ?
Answer:
Under the GST, the supply of goods and completion of services are taxable instead of tax collection on production or sales of goods or providing of services.

Question 3.
Which terminology is used for sale and purchase of goods and services under GST?
Answer:
The terminology of “Supply” is used for the sale and purchase of goods and services under GST.

Question 4.
What is interstate supply transaction ?
Answer:
When transaction of supply is done by the trader outside of own state / union territory is known as interstate supply.

Question 5.
Which GSTS are applicable to inter¬state supply?
Answer:
Only IGST is applicable to interstate supply.

Question 6.
What is intrastate supply transaction ?
Answer:
When transaction of supply is done by the trader within own state / union territory is known as intrastate supply.

Question 7.
Which GSTS are applicable to intra¬state supply?
Answer:
CGST and SGST / UTGST are applicable to intrastate supply.

Question 8.
Under which supply transaction, GST is distributed equally between central and respective state government?
Answer:
GST collected on intrastate supply is distributed equally between CGST and SGST/UTGST.

Question 9.
When input GST is chargeable ?
Answer:
When goods or services or both are purchased then input GST is chargeable.

Question 10.
When output GST is chargeable?
Answer:
When goods or services or both are sold then output GST is chargeable.

Question 11.
What is input tax credit?
Answer:
Input Tax Credit (ITC) means, at the time of paying tax on sales, you can reduce the tax you have already paid on purchase.

Question 12.
Which types of needs are considered to determine GST rates?
Answer:
GST rates are decided keeping in mind the nature of needs, from basic needs to luxury needs.

Question 13.
What are the present slabs of GST?
Answer:
5 %, 12 %, 18 % and 28 % are the present slabs of GST.

3. Answer the following questions in brief :

Question 1.
Explain any two special features of GST.
Answer:
The special features of GST are as under:

1. One tax: Goods and Services are covered under one tax only.
2. Tax collection on supply: Tax is collected on supply of goods and completion of services instead of tax collection on production or sales of goods or provinding of services.

Question 2.
Explain any two benefits of GST.
Answer:
The benefits of GST are as under ;

1. One tax: In place of different indirect taxes of central government and state governments these taxes are subsumed in one tax only.
2. Simple tax system: Indirect tax system becomes very simple due to elimination of different indirect taxes.