Frequently Asked Questions On GST
Today we will discuss some important questions which was generally arised in everyone's mind. Infact from this section few GK / GA questions were asked in IBPS RRB PO & SSC Exams on Goods & Service Tax. Here we will explained in simple and easy language so their will no doubt in future to answer these questions. Also Follow the Current Affairs Articles from Achiever's Rule to prepare for your upcoming exams.
Introduction -
The Govt. of India has launched a new indirect tax named as Goods and Service Tax (GST) which can replace all other indirect taxes which are levied in previous taxation system. According to the Govt., the GST can bring a economic reform to India and can be beneficial for the economy. Some Frequently Asked Questions regarding GST are discussed here.
Q.1 What are the final rate slabs of GST ?
Ans: It will be levied at multiple rates which range from 0 per cent to 28 per cent. There is a four layered tax structure. In this structure, the GST will be levied at a rate of 5%, 12%, 18% and 28%. The lower GST rate will be applicable for essential goods and higher ones will be charged in case of luxury and demerit goods. Service Tax can be varied from 15% to 18%. To control the inflation, 0% GST will be charged on essential things like foods, vegetables. The collection from this tax as well as that of the clean energy tax must create a revenue pool that would be used to compensate states for the loss of revenue during the first five years of GST implementation.
Q.2 What are SGST, CGST and IGST ?
Ans: Being a Federal Democracy, there is a clear demarcation of revenue collection between center and states in India as per the constitution. The CGST is known as the Central GST. The areas where the center owns the taxation power is taxable under CGST and State GST (SGST) where the State has capabilities to charge a tax. The IGST is known as Integrated GST which is levied for the movement of goods within the states of the Indian Territory. This tax will be collected by the union and will be transferred to the states. This tax is essential as it is rolled over in the entire nation simultaneously when the GST comes out.
Q.3 Which taxes will be replaced by the GST?
Ans: Central Excise Duty, Countervailing Duty, Service Tax, Entertainment Tax, Octroi, Entry Tax, Purchase Tax, Luxury Tax, Advertisement taxes, Taxes applicable on lotteries, Central Sales Tax, Value Added Tax will be replaced by GST.
Q.4 What are the short term impact of GST ?
Ans: Due to GST, there can be the problem of inflation on a short term basis. The restaurants, movies theaters are bound to increase prices due to the implementation of GST.
Q.5 Who will be there in the empowered committee of GST ?
Ans: The Empowered Committee of GST consists the Finance Ministers of the states to help to execute the GST.
Q.5 What will be cheaper?
Ans: Auto: Prices of entry-level cars, two-wheeler, Paints, cements, electronic items etc. will be cheaper after GST.
Q.6 What will be costlier?
Ans: Cigarette prices, Commercial vehicles, Mobile phone recharge, textiles and branded jewellery will be costly after GST. But due to presuure now the Government of India Reduces the tax on few items.
Q. 7 What are the main features of GST?
The Govt. of India has launched a new indirect tax named as Goods and Service Tax (GST) which can replace all other indirect taxes which are levied in previous taxation system. According to the Govt., the GST can bring a economic reform to India and can be beneficial for the economy. Some Frequently Asked Questions regarding GST are discussed here.
Q.1 What are the final rate slabs of GST ?
Ans: It will be levied at multiple rates which range from 0 per cent to 28 per cent. There is a four layered tax structure. In this structure, the GST will be levied at a rate of 5%, 12%, 18% and 28%. The lower GST rate will be applicable for essential goods and higher ones will be charged in case of luxury and demerit goods. Service Tax can be varied from 15% to 18%. To control the inflation, 0% GST will be charged on essential things like foods, vegetables. The collection from this tax as well as that of the clean energy tax must create a revenue pool that would be used to compensate states for the loss of revenue during the first five years of GST implementation.
Q.2 What are SGST, CGST and IGST ?
Ans: Being a Federal Democracy, there is a clear demarcation of revenue collection between center and states in India as per the constitution. The CGST is known as the Central GST. The areas where the center owns the taxation power is taxable under CGST and State GST (SGST) where the State has capabilities to charge a tax. The IGST is known as Integrated GST which is levied for the movement of goods within the states of the Indian Territory. This tax will be collected by the union and will be transferred to the states. This tax is essential as it is rolled over in the entire nation simultaneously when the GST comes out.
Q.3 Which taxes will be replaced by the GST?
Ans: Central Excise Duty, Countervailing Duty, Service Tax, Entertainment Tax, Octroi, Entry Tax, Purchase Tax, Luxury Tax, Advertisement taxes, Taxes applicable on lotteries, Central Sales Tax, Value Added Tax will be replaced by GST.
Q.4 What are the short term impact of GST ?
Ans: Due to GST, there can be the problem of inflation on a short term basis. The restaurants, movies theaters are bound to increase prices due to the implementation of GST.
Q.5 Who will be there in the empowered committee of GST ?
Ans: The Empowered Committee of GST consists the Finance Ministers of the states to help to execute the GST.
Q.5 What will be cheaper?
Ans: Auto: Prices of entry-level cars, two-wheeler, Paints, cements, electronic items etc. will be cheaper after GST.
Q.6 What will be costlier?
Ans: Cigarette prices, Commercial vehicles, Mobile phone recharge, textiles and branded jewellery will be costly after GST. But due to presuure now the Government of India Reduces the tax on few items.
Q. 7 What are the main features of GST?
- There will be a uniform taxation system.
- Petroleum and Liquor are exempted from GST
- Implementation of IGST
- GST will be applicable on import items
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