GST in India – CA Inter Tax Study Material

GST in India – CA Inter Tax Study Material is designed strictly as per the latest syllabus and exam pattern.

GST in India – CA Inter Taxation Study Material

Question 1.
Differentiate between direct and indirect Taxes. [Nov. 2018 Old Course, 2 Marks]
Answer:

Basis	Direct Tax	Indirect Tax
1. Concept	The person paying the tax to the Government directly bears the incidence of the tax	The person paying the tax to the Government collects the same from the ultimate consumer. Thus, incidence of the tax is shifted to the other person
2. Nature	Progressive in nature – high rate of taxes for people having higher ability to pay	Regressive in nature – All the consumers equally bear the burden, irrespective of their ability to pay
3. Tax Burden	It is borne by the person himself.	It is shifted to another person.
4. Example	Income Tax	GST, Customs Duty, etc.

Question 2.
List any four Central levies, which are subsumed in GST. [Nov. 2018, 2 Marks]
Answer:
The Central levies which are subsumed in GST are as under:-
(a) Central Excise Duty & Additional Excise Duties
(b) Service tax
(c) Excise duty under Medicinal & Toilet Preparation Act
(d) CVD
(e) Special CVD
(f) Central Sales Tax
(g) Central surcharges and cesses insofar as they relate to supply of goods & services
Note: Any four points may be mentioned.

Question 3.
List any six state levies, which are subsumed in GST. [May 2018, 3 Marks]
Answer:
The State levies which are subsumed in GST are as under:
(a) State surcharges and cesses insofar as they relate to supply of goods & services
(b) Entertainment Tax (except those levied by local bodies)
(c) Tax on lottery, betting and gambling
(d) Entry Tax (All Forms) & Purchase Tax
(e) VAT/Sales tax
(f) Luxury Tax
(g) Taxes on advertisements
Note: Any six points may be mentioned

Question 4.
With reference to GST Laws, how does the new payment system benefit the taxpayer & the Commercial Tax Department? [May 2018 Old Course, 3 Marks]
Answer:
The new payment system benefits the taxpayer and the commercial tax department in the following ways:

Benefits to Taxpayer

1. Ease in payment: No more queues and waiting for making payments as payments can be made online 24 × 7. 
2. Paperless transactions: Electroni­cally generated challan from GSTN common portal in all modes of payment and no use of manually prepared challan.
3. Acknowledgement: Instant online receipts for payments made online.
4. Electronic Challan: Single challan form to be created online, replac­ing the three or four copy Challan.
5. Transparency: Greater transpar­ency.

Benefits to the Commercial Tax Department

1. Instant receipt: Revenue will come earlier into the Government Trea­sury as compared to the old system.
2. Tax collection: Logical tax collec­tion data in electronic format.
3. Paperless environment: The use of electronic mode facilitates speedy accounting and reporting.
4. Automatic Reconciliation: Due to availability of entries in logical electronic format, there is logical reconciliation of all receipts.
5. Digital storage: Warehousing of digital challan.

Question 5.
Enumerate any five matters on which the GST Council may make recommendations under Article 279A of the Constitution of India.
Answer:
The GST Council shall make recommendation to the Union and the States on the following:

(a)	Abolition of taxes	The taxes, cesses and surcharges levied by the Union, the State and the local bodies which may be subsumed in the GST.
(b)	Number of Goods or Services Exempted	The goods and services that may be subjected to, or exempted from GST.
(c)	Making of rules of levy and place of supply	Model GST Laws, principles of levy, apportionment of Integrated Goods and Services Tax (IGST) and the principles that govern the place of supply.
(d)	Threshold exemption	The threshold limit of turnover below which goods and services may be exempted from GST.
(e)	Rates of tax	The rates including floor rates with bands of GST.