Accounting for GST

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  • Q1

    GST is a/an

    Marks:1
    Answer:

    Indirect Tax.

    Explanation:

    Goods and Services Tax is an indirect tax which will be levied on the goods and services both. The tax replaced existing multiple cascading taxes levied by the Central and State Government.

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  • Q2

    Which of the following tax rate is not applicable under the GST?

    Marks:1
    Answer:

    27%

    Explanation:

    The Goods and Service Tax (GST) will be levied at multiple rates ranging from 0% to 28%.

    GST comprise five basic rates: 0%, 5%, 12%, 18% and 28%.

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  • Q3

    GST will be levied on

    Marks:1
    Answer:

    All of the above.

    Explanation:

    The GST is an indirect tax which means that the tax is passed on till the last stage wherein it is the customer of the goods and services who bears the tax.

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  • Q4

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

    Marks:1
    Answer:

    CGST and SGST

    Explanation:

    CGST and SGST are levied on intra-state (i.e., within the state) supply (sale) of goods and/or services or both. CGST and SGST is levied at half the prescribed rate of GST each. For example, if prescribed rate is 18%, CGST an SGST will be levied @ 9% each.

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  • Q5

    On inter-state sale of goods, which of the following accounts are credited:

    Marks:1
    Answer:

    Output IGST A/c

    Explanation:

    GST (CGST and SGST or IGST) Collected is credited to ‘Output GST Accounts’, i.e., CGST Collected is credited to ‘Output CGST Account’, SGST Collected is credited to ‘Output SGST Account’ and IGST Collected is credited to ‘Output IGST Account’.

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