Commerce MCQs
Topic Notes: Commerce
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
1
Under the 101st Constitutional Amendment Act, which entities hold the authority to levy the Goods and Services Tax (GST)?
Answer:
State & Union Govt.
The 101st Constitutional Amendment Act introduced a dual GST structure in India. This empowers both the Central Government (CGST) and the State Governments (SGST) to levy and collect tax on the supply of goods and services simultaneously, ensuring a cooperative federalism approach to indirect taxation.
2
Which taxes paid by a tourist are eligible for a refund under the GST framework?
Answer:
None of the above
While the GST law contains provisions for refunds to international tourists, these provisions are often not yet operational or are highly restricted in many jurisdictions. Therefore, in the current practical application, tourists generally cannot claim refunds for these taxes, making 'None of the above' the most accurate choice.
3
Which of the following scenarios qualifies as an intra-state supply of goods?
Answer:
Supplier of goods located in Goa and place of supply of goods in Goa
An intra-state supply occurs when the location of the supplier and the place of supply are within the same state or union territory. In option C, both the supplier and the place of supply are in Goa, making it an intra-state transaction. Other options involve different states or special zones, which typically trigger inter-state supply rules under the GST Act.
4
Which international model did India adopt for its dual Goods and Services Tax (GST) system?
Answer:
Canadian
India adopted a dual GST model, which is largely inspired by the Canadian model. In this system, both the central government and the state governments have the power to levy and collect taxes on the supply of goods and services, reflecting a federal structure of taxation.
5
Under what conditions is a registered recipient required to issue a self-invoice?
Answer:
All of the above
A registered recipient must issue a self-invoice when they procure goods or services from an unregistered supplier or under a reverse charge mechanism. This ensures that the tax liability is properly accounted for and documented, allowing the recipient to claim the appropriate input tax credit.
6
In which specific scenario is a registered dealer required to issue a payment voucher?
Answer:
Reverse Charge
Under the Reverse Charge Mechanism (RCM), the recipient of goods or services is liable to pay the tax instead of the supplier. Consequently, the registered dealer receiving these supplies must issue a payment voucher to document the transaction and the subsequent tax liability, ensuring proper compliance with tax reporting requirements.
7
Which of the following categories of commodities is currently excluded from the scope of the Goods and Services Tax (GST) in India?
Answer:
Petroleum products
Petroleum products, including crude oil, motor spirit (petrol), high-speed diesel, natural gas, and aviation turbine fuel, are currently kept outside the purview of GST. These items continue to be taxed under the pre-existing state-level Value Added Tax (VAT) and central excise duty regimes.
8
Which Constitutional Amendment Bill introduced the Goods and Services Tax in India?
Answer:
122
The Goods and Services Tax was introduced through the 122nd Constitutional Amendment Bill. This bill was presented in the Parliament to amend the Constitution to enable the introduction of a unified indirect tax system, replacing various central and state-level taxes with a single, integrated tax structure.
9
What is the prescribed deadline for submitting details regarding outward supplies of goods or services?
Answer:
10th of the succeeding month
Under standard GST compliance procedures, taxpayers are required to furnish the details of their outward supplies by the 10th day of the month following the period to which the supplies relate. This deadline allows for the systematic reconciliation of data between suppliers and recipients within the tax portal.
10
What is the name of the digital system that facilitates the generation of transport bills for goods, thereby reducing transit time and tax evasion?
Answer:
e-way bill system
The e-way bill system is a compliance mechanism under GST that requires the generation of a digital document for the movement of goods exceeding a certain value. It ensures that goods are being transported legally, helps tax authorities track movement, and significantly reduces the time spent at check posts by replacing manual verification processes.