Assessment and Returns Very Short Answer Type Questions

Assessment and Returns Very Short Answer Type Questions

Question 1.
Give the meaning of Assessment.
Answer:
Assessment means determination of tax liability under this act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment

Question 2.
When the first returns needs to be filed by taxable person in respect of outward suppliers?
Answer:
First returns of outwards supplies needs to be filed from the date on which he became liable to registration till the end of the month in which the registration has been granted.

Question 3.
When the-first returns needs to be filed by taxable person in respect of inward suppliers?
Answer:
First returns of inwards supplies needs to be filed from the date of registration till the end of the month in which the registration has been granted.

Question 4.
Who is required to furnish the details of outward taxable supply?
Answer:
All registered taxable persons are required to furnish the details of outward supplies of goods and services made during the tax period.

Question 5.
When is GST payment to be done by the taxable person?
Answer:
At the time of supply of Goods as explained in Section 12 and at the time of supply of services as explained in Section 13. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections.

Question 6.
What is a tax liability register?
Answer:
Tax Liability Register will reflect the total tax liability of a taxpayer (after netting) for the particular month.

Question 7.
What is a Cash Ledger?
Answer:
The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST.

Question 8.
What is input tax?
Answer:
“Input tax” has been defined in section 2 (57) of the MGL and section 2 (1) (d) of the IGST. Act. Input tax in relation to a taxable person, means the {IGST and CGST} in respect of CGST Act and {IGST and SGST} in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in. the course or furtherance of his business and includes the tax payable under sub-section (3) of section 7. Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and / or services.

Question 9.
What is an E-FPB?
Answer:
E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to collect payment of GS.T. Each authorized bank will nominate only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open accounts under each major head for all governments. Total 38 accounts (one each for CGST, IGST and one each for SGST for each State/UT Govt.) will have to be opened. Any amount received by such E-FPB towards GST will be credited to the appropriate account held by such E-FPB.

Question 10.
How will the Supplier account for this TPS while filing his return?
Answer:
Any amount shown as TDS will be reflected in the electronic cash ledger of the concerned supplier. He can utilize this amount towards discharging his liability towards tax, interest fees and any other amount.

Question 11.
What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?
Answer:
It implies that input tax consists of IGST & CGST in CGST Act and IGST & SGST in SGST Act. In the IGST Act, input tax consists of all three taxes namely, IGST, CGST and SGST.

It further implies that credit of all three can be used for discharging IGST liability, whereas only credit of IGST & CGST can be^taken in CGST Act and that of IGST & SGST can be taken under SGST Act. Further the credit of CGST & SGST cannot be cross-utilized.

Question 12.
Does Input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Answer:
Yes, in terms .of section 2(54), 2(55) & 2(20) of the MGL respectively. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one installment.

Question 13.
What are the details to be submitted while furnishing the details of outward supply?
Answer:
The supplier has to furnish the details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during the tax period. •

Question 14.
What is first Ireturn?
Answer:
Every registered person who has made outward supplies in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return furnished by him after grant of registration.

Question 15.
Who is required to file an annual return?
Answer:
All registered taxable persons are required to furnish an annual return for every financial year in form GSTR-9. A registered taxable person opting to pay tax under the composition scheme is required to file the annual return in form GSTR-9A.

Question 16.
Who is required to furnish final return?
Answer:
Any registered taxable person whose registration whose registration has been cancelled is required to file final return in form GSTR-10. The return has to be filed within 3 months from the date of cancellation or date of order of cancellation, whichever is earlier.

Question 17.
What do you mean by Zero rated transactions?
Answer:
Certain supplies of goods and services are Zero rated i.e GST is not payable on supply of goods and services but still input tax credit is available.

Question 18.
Distinguish between Zero rated transaction and exempt transaction.
Answer:
In case of Zero rated transactions, input tax credit is available, while in case of exempt transactions, input tax credit is not available.