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Governance & Society Cluster387 Verified Questions
GST & Taxation Framework in India GK Questions & Answers
The Goods and Services Tax (GST) came into effect across India on July 1, 2017, following the enactment of the 101st Constitutional Amendment Act, 2016. Operating as a comprehensive, multi-stage, destination-based consumption tax, GST subsumed 17 central and state levies, including Central Excise Duty, Service Tax, Additional Customs Duty, State Value Added Tax (VAT), Central Sales Tax, and Octroi. India adopted a dual GST model comprising Central GST (CGST), State GST (SGST), and Integrated GST (IGST) administered under Article 269A for inter-state supplies and imports. Constitutional governance is vested in the GST Council established under Article 279A, chaired by the Union Finance Minister and comprising State Finance Ministers, where decisions require a 75% weighted majority (one-third central voting weight and two-thirds collective state weight). Standard taxation follows a four-tier rate structure of 5%, 12%, 18%, and 28%, supplemented by a zero-rated tier for essential commodities and additional compensation cess on demerit goods. In contrast, direct taxation is governed by the Income Tax Act, 1961, and administered by the Central Board of Direct Taxes (CBDT) under the Department of Revenue, Ministry of Finance, whereas indirect tax administration falls under the Central Board of Indirect Taxes and Customs (CBIC).
High-yield conceptual summaries for competitive exams and rapid revision.
The 101st Constitutional Amendment Act, 2016 introduced Article 246A (concurrence to levy GST), Article 269A (levy and collection of IGST on inter-state supply), and Article 279A (GST Council).
The GST Council operates with a voting weightage of one-third (33.33%) for the Union Government and two-thirds (66.67%) for all State Governments combined, requiring a 75% weighted majority for decision-making.
The standard GST slab structure consists of four rates: 5%, 12%, 18%, and 28%, with petroleum crude, high-speed diesel, petrol, natural gas, aviation turbine fuel, and potable alcohol kept outside standard GST.
Direct taxes in India (Income Tax and Corporation Tax) are statutory enactments under the Income Tax Act, 1961, regulated by the Central Board of Direct Taxes (CBDT) constituted under the Central Boards of Revenue Act, 1963.
Input Tax Credit (ITC) prevents cascading tax effects by allowing registered taxpayers to claim credit for taxes paid on business inputs against their output tax liability, monitored via the Electronic Way (E-Way) Bill system mandatory for inter-state goods movement exceeding Rs 50,000.
Showing 25 Curated Questions387 Total in Bank
1ID: GK-TAX-00001
easyGST Architecture & GST Council Framework
Which Constitutional Amendment Act introduced the Goods and Services Tax (GST) regime in India, coming into nationwide effect on July 1, 2017?
Verified Explanation
The 101st Constitutional Amendment Act, 2016 inserted Articles 246A, 269A, and 279A, creating the unified Goods and Services Tax (GST) system across India from July 1, 2017.
2ID: GK-TAX-00011
easyGST Architecture, 101st Amendment & Council
Who serves as the ex-officio Chairperson of the Goods and Services Tax (GST) Council in India?
Verified Explanation
According to Article 279A(2) of the Constitution of India, the Union Finance Minister acts as the Chairperson of the GST Council. The Council also comprises the Union Minister of State in charge of Revenue or Finance and the Finance/Taxation Ministers of each State Government.
3ID: GK-TAX-00016
easyGST Architecture, 101st Amendment & Council
What is the non-profit technological backbone entity that manages the IT infrastructure, portal, and return filing system for GST in India?
Verified Explanation
The Goods and Services Tax Network (GSTN) is a Section 8 non-profit company incorporated to provide shared IT infrastructure and services to the Central and State Governments, taxpayers, and other stakeholders for the implementation of GST.
4ID: GK-TAX-00018
mediumGST Architecture, 101st Amendment & Council
What international commodity description and coding system does India use under GST for the systematic classification of goods?
Verified Explanation
India adopted the 6-digit and 8-digit Harmonized System of Nomenclature (HSN) developed by the World Customs Organization (WCO) for classifying goods under GST. Services are classified using the Services Accounting Code (SAC).
5ID: GK-TAX-00019
mediumGST Architecture, 101st Amendment & Council
Under Article 279A(5), on how many specific petroleum products was the levy of GST temporarily deferred until recommended by the GST Council?
Verified Explanation
Article 279A(5) states that the GST Council shall recommend the date on which GST will be levied on five specified petroleum goods: petroleum crude, high-speed diesel (HSD), motor spirit (commonly known as petrol), natural gas, and aviation turbine fuel (ATF).
6ID: GK-TAX-00021
mediumGST Architecture, 101st Amendment & Council
Under the GST (Compensation to States) Act, 2017, what projected annual growth rate of state tax revenues was guaranteed for compensation calculations during the 5-year transition period?
Verified Explanation
Section 3 of the GST (Compensation to States) Act, 2017 fixed a nominal compound annual revenue growth rate of 14% over the 2015-16 revenue base year for calculating compensation payable to states for revenue losses over a 5-year transitional period ending June 2022.
7ID: GK-TAX-00022
mediumGST Architecture, 101st Amendment & Council
Which item is completely kept outside the constitutional purview of GST by explicit constitutional exclusion in Article 366(12A)?
Verified Explanation
Article 366(12A) of the Constitution defines GST as a tax on the supply of goods, or services, or both, 'except taxes on the supply of the alcoholic liquor for human consumption'. Hence, alcoholic liquor remains exclusively under State Excise and State VAT.
8ID: GK-TAX-00028
hardGST Architecture, 101st Amendment & Council
In the landmark 2022 judgment 'Union of India v. Mohit Minerals Pvt Ltd', what did the Supreme Court of India rule regarding the legal nature of GST Council recommendations?
Verified Explanation
In May 2022, a three-judge Supreme Court bench held that the recommendations of the GST Council are not binding on the Union and State legislatures, but rather hold persuasive value, emphasizing that Indian federalism is a dialogue where both the Union and States possess simultaneous legislative powers under Article 246A.
9ID: GK-TAX-00071
easyGST Architecture, 101st Amendment & Council
What are the four primary standard tax rate slabs established under India's Goods and Services Tax (GST) architecture?
Verified Explanation
The GST Council structured the multi-tiered indirect tax regime around four primary standard tax slabs: 5%, 12%, 18%, and 28%. Essential food items and basic necessities are taxed at 0% (exempt), common-use items at 5%, standard goods and services at 12% and 18%, and luxury or demerit goods at 28% plus applicable cess.
10ID: GK-TAX-00072
easyGST Architecture, 101st Amendment & Council
Under the Indian GST framework, what special concessional GST rate applies to unworked or rough diamonds and precious stones?
Verified Explanation
To preserve the competitiveness of India's gem cutting and polishing export industry, the GST Council established a special concessional rate of 0.25% on rough diamonds and precious stones. In contrast, gold, silver, and finished jewellery items attract a special GST rate of 3%.
11ID: GK-TAX-00073
easyGST Architecture, 101st Amendment & Council
What is the standard aggregate annual turnover threshold for mandatory GST registration for exclusive suppliers of goods in normal category States?
Verified Explanation
Effective from April 1, 2019, the GST Council increased the basic aggregate annual turnover threshold for mandatory registration for exclusive suppliers of goods from ₹20 lakh to ₹40 lakh in normal category States. For service providers and suppliers in selected Special Category States, the threshold remains ₹20 lakh and ₹10 lakh respectively.
12ID: GK-TAX-00074
easyGST Architecture, 101st Amendment & Council
Which standardized coding system is adopted under GST in India for the systematic classification and billing of services?
Verified Explanation
While goods are classified using HSN (Harmonized System of Nomenclature) codes, services under the GST regime are classified using Services Accounting Codes (SAC). SAC codes are issued by the CBIC and are mandatory on tax invoices issued by service providers.
13ID: GK-TAX-00081
hardGST Architecture, 101st Amendment & Council
Following the 50th and 51st GST Council meetings, what uniform GST rate and valuation basis came into effect on October 1, 2023 for online money gaming, casinos, and horse racing?
Verified Explanation
Effective October 1, 2023, amendments to the CGST and IGST Acts established a uniform 28% GST rate on actionable claims in online money gaming, casinos, and horse racing, levied on the full face value of the bets placed or chips purchased at entry, rather than merely on the platform's service fee or Gross Gaming Revenue (GGR).
14ID: GK-TAX-00086
hardGST Architecture, 101st Amendment & Council
To service and repay the special market borrowings raised by the Centre to bridge State revenue shortfalls during the COVID-19 pandemic, the GST Compensation Cess levy was extended up to which date?
Verified Explanation
While the 5-year constitutionally guaranteed compensation period for States ended on June 30, 2022, the GST Council decided to extend the collection of the GST Compensation Cess on luxury and demerit items until March 31, 2026 solely to repay the principal and interest on the ₹2.69 lakh crore back-to-back loan facility raised during the pandemic.
15ID: GK-TAX-00087
easyGST Architecture, 101st Amendment & Council
What is the standard aggregate annual turnover threshold for mandatory GST registration for suppliers of services in normal category States?
Verified Explanation
Under Section 22 of the CGST Act, service providers in normal category States are required to obtain GST registration if their aggregate annual turnover exceeds ₹20 lakh. The ₹40 lakh relaxation is applicable only to exclusive suppliers of goods, not service providers.
16ID: GK-TAX-00089
easyGST Architecture, 101st Amendment & Council
In the Special Category States of Manipur, Mizoram, Nagaland, and Tripura, what is the mandatory GST registration turnover threshold for suppliers of goods and services?
Verified Explanation
Under the proviso to Section 22(1) of the CGST Act, four Special Category States—Manipur, Mizoram, Nagaland, and Tripura—opted to retain the lower aggregate turnover threshold of ₹10 lakh for mandatory GST registration, whereas other special states opted for higher limits.
17ID: GK-TAX-00135
easyGST Architecture, 101st Amendment & Council
Under Section 24 of the CGST Act, 2017, which of the following categories of persons is statutorily required to obtain GST registration irrespective of aggregate turnover threshold?
Verified Explanation
Section 24 of the CGST Act mandates compulsory GST registration without any turnover threshold exemption for persons making inter-state taxable supplies, casual taxable persons, non-resident taxable persons, e-commerce operators, and persons required to deduct TDS or collect TCS.
18ID: GK-TAX-00143
mediumGST Architecture, 101st Amendment & Council
Which specialized GST registration form must be used by overseas non-resident suppliers providing Online Information Database Access and Retrieval (OIDAR) services to unregistered persons in India?
Verified Explanation
Under Rule 14 of the CGST Rules, 2017, any person located outside India providing Online Information Database Access and Retrieval (OIDAR) services to a non-taxable online recipient in India is required to obtain a single simplified registration in Form GST REG-10.
19ID: GK-TAX-00149
hardGST Architecture, 101st Amendment & Council
In the institutional working framework of the GST Council, which technical body is responsible for examining proposals regarding tax rate slabs, exemptions, and classifications before placing them for Council deliberation?
Verified Explanation
The Fitment Committee is a specialized standing committee of Central and State tax officials constituted by the GST Council. It evaluates representations, economic data, and revenue implications regarding rate adjustments, exemptions, and tariff classifications, submitting recommendations directly to the GST Council.
20ID: GK-TAX-00193
easyGST Architecture, 101st Amendment & Council
Which GST return form is statutorily filed on an annual basis by registered taxpayers who have opted for the Composition Scheme under Section 10 of the CGST Act?
Verified Explanation
Form GSTR-4 is the annual return form designated for composition dealers under GST, required to be filed by 30th April following the end of the financial year. Composition taxpayers also submit quarterly tax payment statements in Form CMP-08.
21ID: GK-TAX-00197
easyGST Architecture, 101st Amendment & Council
Who serves as the ex-officio Secretary to the Goods and Services Tax (GST) Council in India?
Verified Explanation
The Union Cabinet created the GST Council Secretariat in New Delhi, designating the Revenue Secretary to the Government of India as the ex-officio Secretary to the GST Council, responsible for coordinating Council meetings and agendas. This statutory framework ensures transparent fiscal governance and compliance across Indian public finance.
22ID: GK-TAX-00198
mediumGST Architecture, 101st Amendment & Council
In the technological ecosystem of the Goods and Services Tax Network (GSTN), what is the primary operational role of 'GST Suvidha Providers' (GSPs)?
Verified Explanation
GST Suvidha Providers (GSPs) are authorized technological intermediaries appointed by GSTN. They provide secure API gateway connectivity and innovative digital interfaces that allow taxpayers, tax practitioners, and Application Service Providers (ASPs) to interact seamlessly with the central GST system.
23ID: GK-TAX-00201
mediumGST Architecture, 101st Amendment & Council
Following recommendations of the 53rd GST Council meeting, what sunset date was notified for accepting new applications alleging anti-profiteering under Section 171 of the CGST Act?
Verified Explanation
The 53rd GST Council meeting recommended setting a sunset date of 1st April 2025 for receiving fresh applications regarding anti-profiteering under Section 171A of the CGST Act. The anti-profiteering mandate, initially managed by the NAA and later the CCI, was designed as a temporary transition mechanism.
24ID: GK-TAX-00206
hardGST Architecture, 101st Amendment & Council
Which specific category of actionable claims was explicitly excluded from Schedule III (Negative List) of the CGST Act through the CGST Amendment Act, 2023, making them taxable supplies under GST?
Verified Explanation
Schedule III Paragraph 6 originally excluded all actionable claims other than lottery, betting, and gambling. The CGST Amendment Act, 2023 substituted this to exclude 'specified actionable claims'—expressly covering betting, casinos, gambling, horse racing, lottery, and online money gaming—thereby subjecting them to 28% GST.
25ID: GK-TAX-00257
easyGST Architecture & GST Council
Following the 50th and 51st GST Council meetings in 2023, what uniform GST rate was enacted on actionable claims in online money gaming, casinos, and horse racing?
Verified Explanation
The GST Council in 2023 amended the CGST and IGST Acts to levy a uniform 28% GST on the full face value of bets placed in online money gaming, casinos, and horse racing. This removed ambiguity regarding games of skill versus games of chance for tax liability on actionable claims.