MCQs with Answers on GST in India: A Critical Analysis
- What does GST stand for?
a) Goods and Service Tax
b) General Sales Tax
c) Government Service Tax
d) Gross Sales Tax
Answer: a) Goods and Service Tax - When was GST implemented in India?
a) 1st July 2015
b) 1st July 2017
c) 1st April 2016
d) 1st January 2018
Answer: b) 1st July 2017 - Which constitutional amendment introduced GST in India?
a) 101st Amendment
b) 100th Amendment
c) 102nd Amendment
d) 103rd Amendment
Answer: a) 101st Amendment - What is the primary objective of GST?
a) To reduce inflation
b) To eliminate multiple taxes
c) To increase government revenue
d) To encourage exports
Answer: b) To eliminate multiple taxes - Which of the following taxes was subsumed under GST?
a) Income Tax
b) Excise Duty
c) Stamp Duty
d) Corporate Tax
Answer: b) Excise Duty - GST is levied at how many primary rate slabs in India?
a) Two
b) Four
c) Three
d) Five
Answer: b) Four - Which of the following is NOT a feature of GST?
a) Destination-based tax
b) Cascading effect
c) Dual GST model
d) Input tax credit
Answer: b) Cascading effect - What is SGST?
a) State Goods and Services Tax
b) Single Goods and Services Tax
c) Simplified Goods and Services Tax
d) Service-based Goods and Services Tax
Answer: a) State Goods and Services Tax - Who heads the GST Council in India?
a) Prime Minister
b) Finance Minister
c) RBI Governor
d) President of India
Answer: b) Finance Minister - Which of these items is exempted from GST?
a) Gold
b) Alcohol for human consumption
c) Automobiles
d) Packaged food
Answer: b) Alcohol for human consumption - Which tax component is levied by the central government under GST?
a) IGST
b) SGST
c) CGST
d) UGST
Answer: c) CGST - What does IGST stand for?
a) Integrated Goods and Services Tax
b) International Goods and Services Tax
c) Indian Goods and Services Tax
d) Intra-State Goods and Services Tax
Answer: a) Integrated Goods and Services Tax - Which body resolves disputes related to GST between states?
a) Supreme Court
b) GST Council
c) Ministry of Finance
d) High Court
Answer: b) GST Council - What is the threshold limit for GST registration for service providers?
a) ₹50 lakh
b) ₹20 lakh
c) ₹75 lakh
d) ₹10 lakh
Answer: b) ₹20 lakh - What does “Reverse Charge Mechanism” under GST mean?
a) Tax is paid by the buyer instead of the seller
b) Tax is refunded by the government
c) Tax rates are reduced for exporters
d) Tax is paid in advance
Answer: a) Tax is paid by the buyer instead of the seller - Which sector faced significant challenges in transitioning to GST?
a) IT sector
b) Unorganized sector
c) Education sector
d) Healthcare sector
Answer: b) Unorganized sector - How often must GST-registered businesses file GSTR-1?
a) Monthly
b) Quarterly
c) Annually
d) Biannually
Answer: a) Monthly - What is the GST rate for essential items like food grains?
a) 18%
b) 5%
c) 0%
d) 12%
Answer: c) 0% - Which platform facilitates GST compliance in India?
a) GSTN (Goods and Services Tax Network)
b) NSDL
c) UIDAI
d) TRAI
Answer: a) GSTN (Goods and Services Tax Network) - What is “Input Tax Credit” in GST?
a) Refund of excess tax paid
b) Credit for tax paid on inputs
c) Tax exemption for exporters
d) Tax deduction for small businesses
Answer: b) Credit for tax paid on inputs - Which type of GST applies to inter-state transactions?
a) CGST
b) SGST
c) IGST
d) Dual GST
Answer: c) IGST - How is the revenue shared in GST between the Centre and States?
a) 50:50
b) 60:40
c) 75:25
d) 55:45
Answer: a) 50:50 - What is the highest GST rate slab?
a) 12%
b) 18%
c) 28%
d) 30%
Answer: c) 28% - Which committee recommended the GST model for India?
a) Vijay Kelkar Committee
b) NITI Aayog
c) Finance Commission
d) Subramanian Committee
Answer: a) Vijay Kelkar Committee - Which sector is still outside the GST ambit?
a) Real Estate
b) Petroleum Products
c) Pharmaceuticals
d) FMCG
Answer: b) Petroleum Products - What is the composition scheme under GST?
a) Reduced tax rates for small businesses
b) Exemption from filing returns
c) Higher tax rates for large businesses
d) Export incentives
Answer: a) Reduced tax rates for small businesses - Who collects IGST?
a) State Government
b) Central Government
c) Both State and Central Governments
d) Local Bodies
Answer: b) Central Government - Which organization is responsible for implementing GST policies?
a) GST Council
b) Ministry of Commerce
c) SEBI
d) Income Tax Department
Answer: a) GST Council - Which country inspired India’s GST model?
a) USA
b) Australia
c) Canada
d) France
Answer: c) Canada - What is the penalty for not filing GST returns on time?
a) ₹50 per day
b) ₹100 per day
c) ₹200 per day
d) ₹500 per day
Answer: b) ₹100 per day
