15 MCQ on GST – Test Your Knowledge on Goods and Services Tax
MCQ on GST: Goods and Services Tax (GST) is a tax system that was introduced in India in 2017. GST is a value-added tax that is levied on the supply of goods and services. The tax is collected at each stage of the supply chain and is ultimately borne by the end consumer. GST has replaced multiple indirect taxes, such as excise duty, service tax, and value-added tax, and has streamlined the tax system in India. In this article, we have compiled 15 multiple choice questions on GST that will test your knowledge of the basic concepts related to this tax system. These MCQs cover a wide range of topics, including GST rates, exemptions, and registration requirements. So, let’s test your understanding of GST and see how well you fare on these questions.
MCQ on GST: Attempt MCQ Now!
Q1 What is GST?
- A) Goods and Service Tax
- B) Goods and Sales Tax
- C) Goods and Service Transfer Tax
- D) None of the above
Answer: A) Goods and Service Tax
Q2 Which of the following taxes have been replaced by GST in India?
- A) Excise Duty
- B) Service Tax
- C) Value Added Tax (VAT)
- D) All of the above
Answer: D) All of the above
Q3 What is the threshold limit for GST registration?
- A) Rs. 20 lakhs
- B) Rs. 40 lakhs
- C) Rs. 10 lakhs
- D) Rs. 50 lakhs
Answer: B) Rs. 40 lakhs
Q4 What is the GST rate for essential commodities like food grains and milk?
- A) 0%
- B) 5%
- C) 12%
- D) 18%
Answer: A) 0%
Q5 What is the GST rate for services like restaurant and catering?
- A) 0%
- B) 5%
- C) 12%
- D) 18%
Answer: B) 5%
Q6 What is the GST rate for gold?
- A) 5%
- B) 12%
- C) 18%
- D) 28%
Answer: C) 18%
Q7 Who is responsible for paying GST?
- A) The seller
- B) The buyer
- C) Both seller and buyer
- D) The government
Answer: A) The seller
Q8 What is the GST council?
- A) A group of ministers responsible for GST implementation
- B) A group of tax experts
- C) A group of tax officials
- D) A group of economists
Answer: A) A group of ministers responsible for GST implementation
Q9 What is the full form of IGST?
- A) Integrated Goods and Services Tax
- B) Indirect Goods and Services Tax
- C) Internal Goods and Services Tax
- D) None of the above
Answer: A) Integrated Goods and Services Tax
Q10 What is the GST rate for smartphones?
- A) 5%
- B) 12%
- C) 18%
- D) 28%
Answer: B) 12%
Q11 Can a business claim input tax credit for GST paid on purchases?
- A) Yes, always
- B) No, never
- C) Only if the business is registered under GST
- D) Only if the business is not registered under GST
Answer: C) Only if the business is registered under GST
Q12 What is the GST rate for luxury cars?
- A) 5%
- B) 12%
- C) 18%
- D) 28%
Answer: D) 28%
Q13 Which of the following goods or services are exempted from GST?
- A) Alcohol for human consumption
- B) Healthcare services
- C) Education services
- D) All of the above
Answer: B) Healthcare services and C) Education services
Q14 What is the due date for filing GST returns?
- A) 10th of every month
- B) 15th of every month
- C) 20th of every month
- D) 25th of every month
Answer: A) 10th of every month
Q15 Who can issue a GST invoice?
- A) Only registered persons
- B) Only unregistered persons
- C) Both registered and unregistered persons
- D) None of the above
Answer: A) Only registered persons
Also Attempt mcq on vitamins here!
GST has completely transformed the tax system in India, making it more transparent, streamlined, and efficient. As a taxpayer, it’s important to have a good understanding of the basic concepts related to GST. The MCQs provided in this article cover a wide range of topics, from GST rates to registration requirements. By answering these questions, you can test your knowledge of GST and identify areas where you may need to brush up. It’s important to stay up-to-date with the latest changes and developments in the GST system, as this will help you comply with the law and avoid penalties. We hope these MCQs have been helpful in enhancing your understanding of GST.
