Going through the Concept of Indirect Taxes at a Glance – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.
Concept of Indirect Taxes at a Glance – Tax Laws CS Executive MCQs
Question 1.
GST is applicable
(a) All over India
(b) All over India except Jammu & Kashmir
(c) All over India except Special States
(d) All over India except Union Territories
Answer:
(a) All over India
Question 1A.
The erstwhile state “Jammu and Kashmir” has been removed as state and framed into two Union Territory of Jammu and Kashmir and UT of Ladakh. Which of these two has its own legislative body?
(a) UT of Jammu and Kashmir
(b) UT of Ladakh
(c) Both (a) and (b)
(d) None of these
Answer:
(a) UT of Jammu and Kashmir
Question 2.
GST is a comprehensive tax regime covering both Goods and Services and be collected on value added at each stage of the supply chain. GST is thus levied on the basis of …………..
(a) Consumption principle
(b) Destination principle
(c) Set-off against that payable principle
(d) Both consumption and destination base principle
Answer:
(b) Destination principle
Question 3.
Which of the following statement is NOT TRUE?
(a) GST is destination based consumption tax
(b) GST adorns dual taxation model
(c) GST ensures seamless flow of ITC
(d) GST is levied on goods and services at equal rates
Answer:
(d) GST is levied on goods and services at equal rates
Question 4.
GST Council has been established under ………. of the Constitution of India.
(a) Article 246
(b) Article 254
(c) Article 279
(d) Article 279A
Answer:
(d) Article 279A
Question 5.
The functions of GST Council include
(a) To decide policy matters
(b) To formulate principles for administration
(c) The implementation of GST
(d) All of the above
Answer:
(d) All of the above
Question 6.
With effect from 31st October, 2019 after enforcement of J&K Reorganization Act, 2019, India has ………. states and union Territories.
(a) 29,7
(b) 28,8
(c) 28,9
(d) None of the above
Answer:
(c) 28,9
Question 7.
The J&K Reorganization Bill was introduced first in and then passed in …………………
(a) Rajya Sabha, Lok Sabha
(b) Lok Sabha, Rajya Sabha
(c) GOM, Lok Sabha
(d) Rajya Sabha, GOM
Answer:
(a) Rajya Sabha, Lok Sabha
Question 8.
The total 33 members of GST council represents of Central Government, ………. of States and of Union Territories with legislature.
(a) 2,28,3
(b) 2,29,2
(c) 2,27,4
(d) None of above
Answer:
(a) 2,28,3
Question 9.
In GST Council, there are 2 members representing Central Government, out of total 33 members. The voting weightage of Central Govt, is ………….
(a) 2/33
(b) 2/31
(c) 1/3
(d) 2/3
Answer:
(c) 1/3
Question 10.
GST was rolled out in India with effect from
(a) 1st July, 2017
(b) 1 st January, 2018
(c) 1st July, 2018
(d) None of the above
Answer:
(a) 1st July, 2017
Question 11.
Which one of the following is not a source of indirect taxes in India?
(a) Customs
(b) Corporation Tax
(c) GST
(d) All of the above
Answer:
(b) Corporation Tax
Question 12.
…………. are consumption based taxes on goods and services
(a) Direct Taxes
(b) Indirect Taxes
(c) Both (a) & (b)
(d) None of the above
Answer:
(b) Indirect Taxes
Question 13.
Most of the countries in the world follow a uniform GST System whereas considering to the federal nature of Indian Constitution, Model of GST proposed and implemented in India from 1st July, 2017 is ……….
(a) Unilateral Model
(b) Bilateral Model
(c) Dual Model
(d) None of the above
Answer:
(c) Dual Model
Question 14.
………. is the Supreme Law of India.
(a) Constitution of India
(b) Indian Penal Code
(c) Competition Act
(d) General Clauses Act
Answer:
(a) Constitution of India
Question 15.
The authority to levy a tax is derived from …………
(a) General Clauses Act
(b) Constitution of India
(c) Parliament of India
(d) None of the above
Answer:
(b) Constitution of India
Question 16.
Every decision of the Goods and Services Tax Council shall be taken at a meeting, by majority of not less than ……… of the weighted votes of the members present and voting. The vote of the Central Government shall have the weightage of ………. of the total votes cast and the votes of all the State Government taken together shall have a weightage of ……….. of the total votes cast in that meeting.
(a) 2/3, 1/3, 3/4
(b) 3/4, 1/3, 2/3
(c) 2/3, 2/3, 1/3
(d) 3/4, 1/2, 2/3
Answer:
(b) 3/4, 1/3, 2/3
Question 17
……. of the Indian Constitution distributes legislative powers including taxation, between the Parliament of India and the State Legislatures.
(a) Article 246
(b) Article 246A
(c) Article 256
(d) Article 265
Answer:
(a) Article 246
Question 18.
The subject matters with respect to which only the state legislatures can exclusively lay down the rules are given in
(a) List I
(b) List II
(c) List III
(d) List IV
Answer:
(b) List II
Question 19.
Before GST, main components of indirect taxes for the Central Government do not include
(a) Central Excise
(b) Value Added Tax
(c) Customs
(d) Service Tax
Answer:
(b) Value Added Tax
Question 20.
Under previous indirect tax regime (Before roll out of GST), the components of indirect taxes for State Government include:
(a) Value Added Tax
(b) Central Sales Tax
(c) Octroi, Entertainment tax, etc.
(d) All of the above
Answer:
(d) All of the above
Question 21.
GST came into force by the …………. Constitutional Amendment Act.
(a) 101
(b) 102
(c) 105
(d) 108
Answer:
(a) 101
Question 22.
The tax under GST legislation in India is being levied
(a) Only by Union Laws
(b) Only by State Laws
(c) Exclusively by Union and State Laws
(d) Simultaneously by Union and State Laws
Answer:
(d) Simultaneously by Union and State Laws
Question 23
………… contains the Residuary Powers of legislation.
(a) Article 246
(b) Article 246A
(c) Article 248
(d) Article 256
Answer:
(c) Article 248
Question 24.
Which of the following countries was the first to introduce GST?
(a) United States
(b) Britain
(c) Canada
(d) France
Answer:
(d) France
Question 25
……….. has the highest GST tax slab in the world.
(a) United States
(b) Britain
(c) France
(d) India
Answer:
(d) India
Question 26.
Almost ………… countries around the world follow GST scheme of indirect taxation.
(a) 110
(b) 140
(c) 160
(d) 166
Answer:
(d) 166
Question 27.
India has the highest tax slab in the world (at 28%) next only to ………. which is at 27%.
(a) France
(b) USA
(c) Argentina
(d) Britain
Answer:
(c) Argentina
Question 28.
Goods and Services to be supplied chargeable under the CGST Act, 2017 have been classified under different specified Code Numbers which are known as Harmonized System of Nomenclature (HSN) Codes. These HSN Codes have been evolved and developed by:
(a) GST Council
(b) HSN/SAC Codes Committee
(c) Customs Cooperation Council of Belgium
(d) None of the above
Answer:
(c) Customs Cooperation Council of Belgium
Question 29.
Under which model, tax is collected by the Centre and distributed to the States?
(a) Australian Model
(b) Canadian Model
(c) Kelkar-Shah Model
(d) Bagchi-Poddar Model
Answer:
(a) Australian Model
Question 30
……. envisages a combination of Central Excise, Service Tax and VAT to make it a common base of GST to be levied both by the Centre and the States respectively.
(a) Australian Model
(b) Canadian Model
(c) Kelkar-Shah Model
(d) Bagchi-Poddar Model
Answer:
(d) Bagchi-Poddar Model
Question 31.
Goods and Services Tax (GST) noted to be a greatest tax reform in India and therefore was rolled out with effect from 1st July, 2017. It transforms a system of taxation and administration into the digital world by adopting latest information technology. The GST model rolled out in India has been adopted from:
(a) France
(b) Canada
(c) Argentina
(d) None of the above
Answer:
(a) France
Question 32.
Which of the following has been omitted at the time of introduction of GST?
(a) Article 268(1)
(b) Article 268(2)
(c) Article 268A
(d) Article 269
Answer:
(c) Article 268A
Question 33.
The three lists regarding power to levy taxes by Centre and States are given in
(a) Sixth Schedule
(b) Seventh Schedule
(c) Eighth Schedule
(d) None of the above
Answer:
(b) Seventh Schedule
Question 34.
The Sixth Schedule of the constitution deals with the provisions as to the administration of Tribal areas in the states of
(a) Assam
(b) Meghalaya
(c) Tripura & Mizoram
(d) All of the above
Answer:
(d) All of the above
Question 35.
On which of the following products, both GST and Central Excise Duty are imposed?
(a) Petroleum
(b) Natural Fuel
(c) Aviation Turbine Fuel
(d) Tobacco & tobacco products
Answer:
(d) Tobacco & tobacco products
Question 36.
On which of the following only Central Excise Duty is levied and GST is not levied?
(a) Petroleum Crude & High Speed Diesel
(b) Motor Spirit & Natural Gas
(c) Aviation Turbine Fuel
(d) All of the above
Answer:
(d) All of the above
Question 37.
Which of the following Article of the Constitution of India specifies that Imports/exports is a deemed inter-state supply?
(a) Article 246A
(b) Article 269
(c) Article 269A
(d) Article 279A
Answer:
(c) Article 269A
Question 38.
Article 246A of the Constitution of India:
(a) Overrides Article 246
(b) Replaces Article 246
(c) Overrides Article 269A
(d) Replaces Article 269
Answer:
(a) Overrides Article 246
Question 39.
As per …………. the IGST will be distributed between Centre and the States/ Union Territory?
(a) Article 246A
(b) Article 269
(c) Article 269A
(d) Article 279A
Answer:
(c) Article 269A
Question 40.
In 2003 was the only state to introduce VAT.
(a) Haryana
(b) Punjab
(c) Goa
(d) Delhi
Answer:
(a) Haryana
Question 41.
……….. was the first state to ratify GST bill.
(a) Arunachal Pradesh
(b) Maharashtra
(c) Assam
(d) Telangana
Answer:
(c) Assam
Question 42.
…………… was the first state to pass State GST Bill.
(a) Arunachal Pradesh
(b) Maharashtra
(c) Assam
(d) Telangana
Answer:
(d) Telangana
Question 43.
GST Council has its headquarters in :
(a) Delhi
(b) Mumbai
(c) Madras
(d) Kolkata
Answer:
(a) Delhi
Question 44.
GST Bill was introduced under Constitutional Amendment Bill, but passed under …………. Amendment Act, 2016.
(a) 122nd; 101st
(b) 101st; 122nd
(c) 122nd; 122nd
(d) 101st; 101st
Answer:
(a) 122nd; 101st
Question 45.
Which of the following is charged by Central Government?
(a) Integrated GST
(b) Compensation Cess
(c) Central GST
(d) All of the above
Answer:
(d) All of the above
Question 46
………… is observed as GST day.
(a) 1st January
(b) 1st July
(c) 1st October
(d) 1st April
Answer:
(b) 1st July
Question 47.
The special purpose Vehicle to cater the IT needs of GST is ……………
(a) GSTN
(b) GSNT
(c) IT-GST
(d) GST-IN
Answer:
(a) GSTN
Question 48.
By virtue of which Article of the Constitution, GST Council has been formed?
(a) Article 246
(b) Article 248
(c) Article 279
(d) Article 279A
Answer:
(d) Article 279A
Question 49.
Who amongst the following is the chairperson of GST Council?
(a) Union Finance Minister
(b) President
(c) State Finance Minister
(d) Prime Minister
Answer:
(a) Union Finance Minister
Question 50.
As per Article 279A, who is empowered to constitute GST council:
(a) President
(b) Parliament
(c) Prime Minister
(d) None of the above
Answer:
(a) President
Question 51.
The GST Council consists of many persons. Its membership consists of which of the following members?
(a) Union Finance Minister
(b) Union Minister of State in charge of Revenue or Finance
(c) Minister in charge of Finance or Taxation, nominated by each State Government
(d) All of the above
Answer:
(d) All of the above
Question 52.
Who is the present chairperson of GST Council?
(a) Arun Jaitley
(b) Amit Shah
(c) Narendra Modi
(d) Nirmala Sitharaman
Answer:
(d) Nirmala Sitharaman
Question 53.
In 38th meeting of GST Council held on 18th December, 2019, the voting was held for the first time when the consensus was challenged by the Finance Minister of
(a) Kerala
(b) Delhi
(c) Maharashtra
(d) Centre
Answer:
(a) Kerala
Question 54.
Which of the following union Territory has its own legislature?
(a) Delhi
(b) Puducherry
(c) Jammu & Kashmir
(d) All of the above
Answer:
(d) All of the above
Question 55.
The voting took place for the first time in 38th meeting of GST council to discuss the matter relating to .
(a) Late fee of pending GSTR-1
(b) Taxability of upfront amount payable on lease
(c) Uniform rate of GST of 28% on lotteries
(d) New GST Returns.
Answer:
(c) Uniform rate of GST of 28% on lotteries
Question 56.
GST Council comprises of various persons from Union and States and is being headed by a chairperson who is:
(a) Finance Secretary to Government of India
(b) Union Finance Minister
(c) Any State Finance Minister
(d) Union Finance Minister
Answer:
(b) Union Finance Minister
Question 57.
As per Article 279A, of the total number of members of GST Council shall constitute the quorum at its meetings?
(a) One third
(b) One half
(c) One fourth
(d) One tenth
Answer:
(b) One half
Question 58.
At the time of taking decision at a meeting of GST Council, the vote of the Central Government shall have a weightage of of the total votes cast.
(a) One-tenth
(b) One-fourth
(c) One-third
(d) One-half
Answer:
(c) One-third
Question 59.
What is the weightage of votes of Central Government and State Government, to be considered for taking decision?
(a) 2:1
(b) 1:3
(c) 1:2
(d) 1:1
Answer:
(c) 1:2
Question 60.
The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute
(a) Relating to any defect in the appointment of a person as a Member
(b) Relating to any procedural irregularity of the Council
(c) Between the Government of India and one or more States
(d) Relating to weightage of vote for taking decision
Answer:
(c) Between the Government of India and one or more States
Question 61.
All decisions of GST Council must have ………. majority in order to implement the same.
(a) One-half
(b) Three-fourth
(c) 60%
(d) 90%
Answer:
(b) Three-fourth
Question 62.
The decision of the GST Council will be adopted when it has the support of:
(a) One-third majority
(b) Two-third majority
(c) Three-fourth majority
(d) Simple majority
Answer:
(c) Three-fourth majority
Question 63.
As per Article 279A, no act or proceedings of the GST Council shall be invalid merely by reason of:
(a) Any vacancy in, or any defect in, the Constitution of the Council
(b) Any defect in the appointment of a person as a member of the Council
(c) Any procedural irregularity of the Council not affecting the merits of the case
(d) All of the above
Answer:
(d) All of the above
Question 64.
Find out from the following, who will be the member in GST council on behalf of each of the state:
(a) Chief Minister of the State
(b) Home Minister of the State
(c) The Minister in charge of Finance or Taxation or any other Minister nominated by the State Government
(d) Chief Secretary of the State
Answer:
(c) The Minister in charge of Finance or Taxation or any other Minister nominated by the State Government
Question 65.
GST Council is being constituted for making recommendation on various issues relating to policy making, formulation of principle and implementation of policies relating to CGST Act, 2017. It is thus ……..
(a) An administrative body
(b) A Central level body
(c) A Committee of Finance Ministers
(d) An Apex Constitutional Body
Answer:
(d) An Apex Constitutional Body
Question 66.
The GST Council is a
(a) Unilateral Forum of Centre only
(b) Unilateral Forum of State only
(c) Joint Forum of Centre and the State
(d) None of the above
Answer:
(c) Joint Forum of Centre and the State
Question 67.
The provisions relating to GST Council came into force on 12th September, 2016. The President constituted the GST Council on
(a) 12th September, 2016
(b) 15th September, 2016
(c) 1st July, 2017
(d) 30th June, 2017
Answer:
(d) 30th June, 2017
Question 68.
The major reason for implementation of GST was:
(a) Plethora of taxes
(b) Plenty of taxable events
(c) Double taxation
(d) All of the above
Answer:
(d) All of the above
Question 69.
The four legislations (CGST Act, IGST Act, UTGST Act and GST Compensation Act) were given assent by the President on:
(a) April, 12, 2017
(b) April 15, 2017
(c) May 12, 2017
(d) July 1,2017
Answer:
(a) April, 12, 2017
Question 70
………. is the apex body for making recommendations on various issues relating to GST Policy making, formulation of principles, etc.
(a) GST Council
(b) CBIC
(c) Department of Revenue
(d) Ministry of Finance
Answer:
(a) GST Council
Question 71.
The Ministry of Finance is headed by ………….
(a) President
(b) Prime Minister
(c) Union Finance Minister
(d) Revenue Secretary
Answer:
(c) Union Finance Minister
Question 72.
The lowest level in the hierarchy of administrative mechanism at the central level is ………
(a) Region
(b) Zone
(c) Commissionerates
(d) Divisions
Answer:
(d) Divisions
Question 73.
Administration and procedural aspects of Goods and Services Tax are to be administered by the ……..which is under the control of the Department of Revenue, Ministry of Finance, Government of India.
(a) Central Board of Indirect Taxes and Customs
(b) Central Board of Indirect Taxes
(c) Central Board of Direct Taxes
(d) GST Council
Answer:
(a) Central Board of Indirect Taxes and Customs
Question 74.
The CBIC is under the control of ………
(a) Department of Revenue
(b) CBDT
(c) Prime Minister
(d) None of the above
Answer:
(a) Department of Revenue
Question 75.
The first discussion paper on GST was released by empowered committee in ………..
(a) February 2009
(b) September 2009
(c) November 2009
(d) March 2011
Answer:
(c) November 2009
Question 76.
“Committee on GST Design” was constituted in ………
(a) February 2009
(b) September 2012
(c) November 2012
(d) December 2012
Answer:
(c) November 2012
Question 77.
The CBIC is headed by …..
(a) Chairman and members
(b) Revenue Secretary
(c) Commissioners
(d) None of the above
Answer:
(a) Chairman and members
Question 78.
Which of the following authorities is headed by Principal Chief Commissioners?
(a) CBIC
(b) Regions
(c) Zones
(d) Divisions
Answer:
(b) Regions
Question 79.
The authorities and are headed by Principal Chief Commissioners and Chief Commissioners respectively.
(a) Regions, Divisions
(b) Regions, Zones
(c) Divisions, Zones
(d) Zones, Divisions
Answer:
(b) Regions, Zones
Question 80.
The administration and procedural aspects of GST are administered by the …………..
(a) CBIC
(b) Principal Commissioner
(c) GST Council
(d) Deputy Commissioners
Answer:
(a) CBIC
Question 81.
Which of the following taxes have not been subsumed in GST?
(a) State Excise Duty
(b) Stamp Duty
(c) Professional Tax
(d) All of the above
Answer:
(d) All of the above
Question 82.
Which of the following has been subsumed in GST?
(a) Basic Customs Duty
(b) Anti-Dumping Duty
(c) Entertainment Tax
(d) All of the above
Answer:
(c) Entertainment Tax
Question 83.
The contract for developing the vast technological back-end (GSTN) was awarded to which of the following company?
(a) Infosys
(b) Reliance Industries
(c) Tata Consultancy Services
(d) Wipro
Answer:
(a) Infosys
Question 84.
Which of the following State taxes has not been subsumed in GST?
(a) Motor Vehicle Tax
(b) State VAT
(c) Taxes on lottery, betting and gambling
(d) None of the above
Answer:
(a) Motor Vehicle Tax
Question 85.
The GST means any tax on supply of goods or services or both except taxes on supply of the………
(a) Alcoholic Liquor (All Types)
(b) Alcoholic Liquor for human consumption
(c) Legal services
(d) Petroleum
Answer:
(b) Alcoholic Liquor for human consumption
Question 86.
The constitutional Amendment Act passed to introduce GST is …………….
(a) Constitutional (101st Amendment) Act, 2016
(b) Constitutional (102nd Amendment) Act, 2016
(c) Constitutional (103rd Amendment) Act, 2016
(d) Constitutional (104th Amendment) Act, 2016
Answer:
(a) Constitutional (101st Amendment) Act, 2016
Question 87.
Which of the following list empowers the Central Government to levy tax?
(a) List I
(b) List II
(c) List III
(d) List IV
Answer:
(a) List I
Question 88.
Which one of the following Central Taxes has not been subsumed by GST?
(a) Central Excise Duty
(b) Safeguard Duty
(c) SAD
(d) Service Tax
Answer:
(b) Safeguard Duty
Question 89.
Which of the following statement is incorrect?
(a) GST Council shall constitute the quorum as per half of the members
(b) 3/4th of the weighted votes of the members present and voting
(c) GST Council was constituted on 12th September, 2016
(d) The GST Council is headed by the Prime Minister as chairman
Answer:
(d) The GST Council is headed by the Prime Minister as chairman
Question 90.
Which one of the following Acts has not been passed by the Union?
(a) CGST Act
(b) IGST Act
(c) SGST Act
(d) UTGST Act
Answer:
(c) SGST Act
Question 91.
To levy, collect UTGST on intra-UT supplies and for other matters, ………….. is the relevant law.
(a) CGST Act
(b) IGST Act
(c) UTGST Act
(d) SGST Act
Answer:
(c) UTGST Act
Question 92.
Which one of the following tax was levied in pre-GST era as State Tax?
(a) Central Excise Duty
(b) Taxes on advertisement
(c) Service Tax
(d) Special additional duty on Customs
Answer:
(b) Taxes on advertisement
Question 93.
Apart from India, …………is the only country in the world which follows a similar dual GST system.
(a) Canada
(b) Japan
(c) Brazil
(d) Hungry
Answer:
(c) Brazil
Question 94
on indirect taxes had suggested a comprehensive GST based on VAT principle.
(a) Malhotra task Force
(b) Kelkar Task Force
(c) Vajpayee Task Force
(d) Tandon Task Force
Answer:
(b) Kelkar Task Force
Question 95.
At present, the ‘alcoholic liquor for human consumption’ is subjected to which of the following?
(a) GST
(b) State excise duty
(c) Central Sales Tax/Value Added Tax
(d) Both (c) and (d)
Answer:
(d) Both (c) and (d)
Question 96.
Which of the taxes have been subsumed in GST?
(a) VAT
(b) Service tax
(c) Luxury tax
(d) All of the Above
Answer:
(d) All of the Above
Question 97.
Tax on sale of computer table by a trader is subjected to ………….
(a) GST
(b) State excise duty
(c) Central Sales Tax/Value Added Tax
(d) Both (c) and (d)
Answer:
(a) GST
Question 98.
Consequent to section 118 of the Finance Act, 2020, the section 2( 114) of the CGST Act, 2017 has been amended. Which of the following Union Territories have been merged into a single Union Territory?
(i) Andaman and Nicobar Islands
(ii) Lakshadweep
(iii) Dadra and Nagar Haveli
(iv) Daman and Diu
(v) Chandigarh
(vi) Ladakh
(a) (i) and (ii)
(b) (iii) and (iv)
(c) (v) and (vi)
(d) (i) and (iii)
Answer:
(b) (iii) and (iv)
Question 99.
In accordance with Article 279A(9), the vote of the Central Government shall have a weightage of …….. of the total votes cast.
(a) One half
(b) One third
(c) One fourth
(d) None of these
Answer:
(b) One third