Students get through the TN Board 11th Commerce Important Questions Chapter 33 Indirect Taxation which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 33 Indirect Taxation

Very short answer questions

1. Mention the kinds of GST.
Answer:

  1. CGST – Central Goods and Service Tax.
  2. SGST – State Goods and Service Tax.
  3. UGST – Union Goods and Service Tax.
  4. IGST – Integrated State Goods arid Service Tax.
  5. IGST on exports.

2. Main sources of Tax revenue and Non-tax revenue.
Answer:

  1. Land revenue.
  2. Taxes on sales and purchase of goods.
  3. Taxes on agricultural income.
  4. Taxes on land and building.
  5. Entertainment tax.

TN Board 11th Commerce Important Questions Chapter 33 Indirect Taxation

3. GST benefits of consumer.
Answer:

  1. The input tax credit allowed will lower the prices to the consumers.
  2. All small retailers will get exemption and purchases from them will cost less for the consumers.

Short answer questions

1. Explain the meaning of GST.
Answer:

  1. Goods and Services Tax (GST) is the tax imposed on the supply (consumption) of goods and services. It is a destination-based consumption tax and collected on those value-added items at each stage of the supply chain.
  2. A manufacturer in India, need not pay GST wherever he/she manufactures. GST is applicable to all goods and services except alcohol and specified petroleum products. GST Act has proposed four tax rates, i.e. 5%, 12%, 18% and 28%.

2. Write any three benefits of GST.
Answer:

  1. The creation of more employment opportunities will result in poverty eradication.
  2. It will bring more tax compliance (more taxpayers) and increase revenue to the Governments.
  3. It is transparent and will improve India’s ranking in the ‘Ease of Doing Business in the world.

Long answer questions

1. GST benefits of the business community.
Answer:

  1. Simpler Tax System with fewer exemptions. 17 taxes were abolished and one tax exists today.
  2. The input tax credit will reduce cascading effect of taxes. Reduction in average tax burden will encourage manufacturers and help the “Make in India” campaign and make India a manufacturing hub.
  3. Common procedures, common classification of goods and services, and timelines will lend greater certainty to the taxation system.
  4. GSTN facility will reduce multiple record-keeping, lesser investment in manpower and resources, and improve efficiency.
  5. All interactions will be through a common GSTN portal and will ensure corruption-free administration.
  6. Uniform prices throughout the country. Expansion of business to all states is made easy.

TN Board 11th Commerce Important Questions Chapter 33 Indirect Taxation

2. Explain IGST with an example.
Answer:
Meaning:

  1. IGST refers to the integrated goods and services tax and it is a combined form of CGST and IGST and is levied by the central government.
  2. Collection of tax: Taxes collected by the central government.
  3. Applicability: All exports are treated as inter-state supply under GST since exports also rated. GST is not imposed on all goods and services exported from India. Any input credit paid already exports will be refundable.
  4. Registration: Registration is mandatory.
  5. Composition: The composition scheme is not applicable in interstate supply.

Multiple-choice questions

1. GST applicable to all goods and services except alcohol and specified petroleum products. GST Act has proposed tax rates.
(a) two
(b) three
(c) four
(d) five
Answer:
(c) four

2. GST is of ……… kinds
(a) three
(b) four
(c) one
(d) five
Answer:
(a) three

3. CGST Act on:
(a) 2017
(b) 2016
(c) 2008
(d) 2002
Answer:
(a) 2017

TN Board 11th Commerce Important Questions Chapter 33 Indirect Taxation

4. The chairman of the council is the union ………. minister.
(a) educational
(b) agricultural
(c) finance
(d) textiles
Answer:
(c) finance

5. CGST collection of tax:
(a) state government
(b) central government
(c) direct tax
(d) indirect tax
Answer:
(a) state government

6. Input tax credit allowed will lower the prices to the:
(a) banker
(b) consumers
(c) debtors
(d) creditors
Answer:
(b) consumers

7. Several …………. says that GST in India would impact negatively on the real estate market.
(a) economics
(b) commerce
(c) mathematics
(d) statistics
Answer:
(a) economics

TN Board 11th Commerce Important Questions Chapter 33 Indirect Taxation

8. A number of retail products currently have only:
(a) 2%
(b) 3%
(c) 4%
(d) 5%
Answer:
(c) 4%

9. The aviation industry would be affected service taxes on airfares currently range from:
(a) 6% to 9%
(b) 5% to 8%
(c) 4% to 6%
(d) 4% to 8%
Answer:
(a) 6% to 9%

10. GST this rate will surpass fifteen percent and effectively ……… the tax rate.
(a) double rate
(b) Single rate
(c) triple rate
(d) Others rate
Answer:
(a) double rate