What are the Four Types of GST? (CGST, SGST, IGST, UTGST) Explained
Goods and Services Tax (GST) MCQ is an essential topic for commerce students, especially for board exams and competitive entrance tests. GST brings together various indirect taxes into one unified tax system. Understanding its types, rules, and objectives is vital for success in school exams and business environments.
| GST Type | Full Form | Applies To | Collected By |
|---|---|---|---|
| CGST | Central Goods and Services Tax | Intra-state supply | Central Government |
| SGST | State Goods and Services Tax | Intra-state supply | State Government |
| IGST | Integrated Goods and Services Tax | Inter-state supply & imports | Central Government |
| UTGST | Union Territory Goods and Services Tax | Union Territories | Union Territory Administration |
Introduction to GST MCQ
MCQ on GST means multiple choice questions based on Goods and Services Tax, including concepts like input tax credit, GST Council, and the types of GST. Practicing GST MCQs helps students revise concepts, stay updated with recent amendments, and perform well in accounting or business law exams.
Key Concepts in Goods and Services Tax (GST)
It's important to grasp the building blocks before solving GST MCQs. GST covers different tax types, council functions, and rules for business compliance. Here are core GST terms:
- GST Council: The decision-making body, chaired by the Union Finance Minister, sets key policies.
- Input Tax Credit (ITC): Credit for taxes paid on purchases, which reduces total tax payable.
- GST Returns: Regular statements businesses file to report sales, purchases, and tax due.
- Tax Slabs: GST is charged at 0%, 5%, 12%, 18%, and 28% depending on the goods/services.
- Destination-based Tax: GST is collected where goods/services are consumed, not where produced.
What are the Four Types of GST?
- CGST (Central GST): Levied by the central government on intra-state supplies.
- SGST (State GST): Levied by the respective state government on the same intra-state supplies.
- IGST (Integrated GST): Applied to inter-state transactions and imports; collected by the central government and apportioned between centre and states.
- UTGST (Union Territory GST): Charged on intra-UT supplies in union territories without legislatures.
Each type has a distinct role in streamlining India's indirect tax system and prevents double taxation.
Latest GST MCQ Objective Questions with Answers
- Which tax was abolished after GST implementation?
(a) Service Tax (correct)
(b) Income Tax
(c) Wealth Tax
(d) Sales Tax - When was GST implemented in India?
(a) 1st June 2016
(b) 1st July 2017 (correct)
(c) 31st March 2017
(d) 15th August 2017 - The GST Council is chaired by:
(a) Prime Minister
(b) Union Finance Minister (correct)
(c) RBI Governor
(d) President of India - Which of the following is NOT a type of GST?
(a) IGST
(b) SGST
(c) PGST (correct)
(d) CGST - Which of these is an indirect tax in India?
(a) Income Tax
(b) Corporation Tax
(c) GST (correct)
(d) Gift Tax - What is the main benefit of Input Tax Credit (ITC) in GST?
(a) Avoids double taxation (correct)
(b) Increases tax burden
(c) Reduces direct taxes
(d) Applies only to finished goods - GST is based on which principle?
(a) Origin-based
(b) Destination-based (correct)
(c) Production-based
(d) Source-based - Which state was the first to pass GST Bill?
(a) Gujarat
(b) Maharashtra
(c) Assam (correct)
(d) Kerala - Who is considered the father of GST in India?
(a) Arun Jaitley
(b) P. Chidambaram
(c) Atal Bihari Vajpayee (correct)
(d) Manmohan Singh - Which GST rule governs registration procedure?
(a) Rule 4 (correct)
(b) Rule 6
(c) Rule 8
(d) Rule 12
These sample questions represent the pattern used in Class 11, 12 Commerce, CA Foundation, and competitive syllabus. Practicing more GST MCQs, including recent amendments, helps you score better.
Goods and Services Tax (GST) in Real Life
GST knowledge is not just important for exams but also for managing business accounts, compliance, and making informed purchase decisions. For example, understanding input tax credit helps companies minimize costs, and knowing GST rules helps avoid penalties. For students, it is foundational for subjects like Business Law and Accountancy.
GST MCQ PDF Download and Practice Online
To revise offline, students prefer downloading GST MCQ PDFs with answers in both Hindi and English. Online GST quizzes are also useful for rapid practice and exam familiarity. At Vedantu, we provide free, regularly updated GST MCQ PDFs and detailed explanations for all major commerce exams.
Further Reading and Related Topics
- Consumer Protection Act
- Companies Act 2013 – Private Companies
- Remedies for Breach of Contract
- Methods of Costing
- Positive and Normative Economics
- Income Method
- Legal Protection to Consumers
- Business Law
- Financial Market
- Income and Expenditure Account
- Government Regulations
Explore these topics for a complete understanding of commerce laws, taxation, and business compliance.
In summary, mastering Goods and Services Tax (GST) MCQs is essential for excelling in commerce and business exams. Learning the GST structure, rules, and real-world applications not only boosts exam scores but also develops practical skills for business and financial management. Vedantu helps by providing clear, exam-relevant GST content, supporting your academic and professional progress.
FAQs on MCQ on GST (Goods and Services Tax) for Commerce Exams
1. What are the 4 types of GST in India?
India's Goods and Services Tax (GST) has four main types: CGST (Central GST), SGST (State GST), IGST (Integrated GST), and UTGST (Union Territory GST). CGST is levied by the central government, SGST by state governments, IGST on interstate supplies, and UTGST in union territories. Understanding these distinctions is crucial for commerce exams.
2. What is GST MCQ?
A GST MCQ (Multiple Choice Question) is a question about India's Goods and Services Tax system, presented with multiple answer choices. These MCQs are commonly used in commerce exams to test understanding of GST concepts, including CGST, SGST, IGST, the GST Council, and input tax credit mechanisms. Practicing GST MCQs helps students master the subject.
3. What is rule 4 of GST?
GST Rule 4 outlines the registration process under the GST Act in India. It details the procedures for businesses to register for GST, including the required documents and timelines. Understanding Rule 4 is essential for compliance and exam preparation.
4. Who is called the father of GST in India?
Atal Bihari Vajpayee is widely considered the 'father of GST' in India, primarily for initiating the groundwork and laying the foundation for the introduction of the Goods and Services Tax system. While the implementation came later, his contributions to the concept are widely acknowledged.
5. Where can I download MCQ on GST with answers PDF?
You can find GST MCQ PDFs with answers on various educational websites and online resources. Reputable commerce study platforms often offer downloadable MCQ practice materials for students preparing for board exams or competitive tests. Search for "GST MCQ with answers PDF" to locate these resources.
6. What is the GST implementation date in India?
The Goods and Services Tax (GST) was implemented in India on July 1, 2017. This date marks a significant change in India's indirect tax system, replacing various indirect taxes with a unified system. Knowing this date is important for understanding GST's historical context.
7. What are the major differences between direct and indirect taxes in the GST context?
Direct taxes, like income tax, are levied directly on the income or earnings of individuals and businesses. Indirect taxes, like GST, are levied on the supply of goods and services, ultimately borne by consumers. GST simplified India's indirect tax structure, replacing many previous indirect taxes.
8. How does GST impact the supply chain in India’s manufacturing sector?
GST significantly impacts the supply chain in India's manufacturing sector by simplifying the tax structure and reducing the cascading effect of taxes. This leads to improved efficiency, cost reduction, and greater ease of doing business. However, businesses need to understand GST compliance requirements for smooth operations.
9. How does input tax credit work in multi-state transactions?
In multi-state transactions under GST, businesses can claim input tax credit (ITC) on IGST paid on the input goods and services used in making taxable supplies. This credit is then adjusted against the IGST payable on their output supplies, reducing the overall tax burden. Understanding ITC is crucial for businesses and for commerce students.
10. What is the GST slab rate for gold jewellery in 2024?
The GST rate on gold jewellery in 2024 is 3%. This is an important detail for both businesses dealing in gold and those preparing for GST-related exams. It's vital to check for any recent updates, though, as tax rates can change.
