GST Acts: CGST Act, SGST Act, IGST Act Very Short Answer Type Questions

Question 1.
What is CGST?
Answer:
The tax will be imposed by the central government of India. It will replace excise duty, service tax, SAD (Special Additional Duty), CVD (Countervailing Duty), ADE (Additional Duties of Excise) and other indirect taxes levied by the central government. CGST will be applicable on supplies within a state and the tax revenue will go only to the central government.

Question 2.
What is SGST?
Answer:
The tax will be imposed by the state government. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, Octroi, purchase tax and taxes on lottery. SGST will be applicable on supplies within a state and the tax revenue will go only to the state government.

Question 3.
Explain UTGST.
Answer:
The tax will be imposed by the Union Territory of Chnadigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, Delhi and Puducherry. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, Octroi, purchase tax and taxes on lottery. UTGST will be applicable on supplies within a union territory.

Question 4.
Expand XG
Answer:
IGST: Integrated Goods and service tax.

Question 5.
What is IGST?
Answer:
“Integrated Goods and Services Tax” (IGST) means tax levied under the IGST Act on the supply of any goods and/ or services in the course of inter-state trade or commerce.

Question 6.
What is Aggregate turnover?
Answer:
An Aggregate turnover means the aggregate value of all taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be. Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis under sub-section (3) of Section 8 and the value of inward supplies.

Question 7.
Who is an adjudicating authority?
Answer:
Any authority competent to pass any order or (4) decision under this Act, but does not include the Board, the Revisional Authority, Authority for Advance Ruling, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal.

Question 8.
Who is an agent?
Answer:
An “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services on behalf of another, whether disclosed or not.

Question 9.
What is a business?
Answer:
Business includes:

any trade, commerce, manufacture, profession, vocation or any other similar activity, whether or not it is for a pecuniary benefit
any activity or transaction in connection with or incidental or ancillary to (a) above
any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction
supply or acquisition of goods including capital assets and services in connection with commencement or closure of business
provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members, as the case may be
admission, for a consideration, of persons to any premises; and services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation.

Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities shall be deemed to be business.

Question 10.
Define goods.
Answer:
It means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Question 11.
What is capital goods?
Answer:
It means goods, the value of which is capitalised in the books of accounts of the in the person claiming the credit and which are used or course or furtherance of business. the books of accounts intended to be used in the course or furtherance of business.

Question 12.
Define person.
Answer:
It includes:

an individual
a Hindu undivided family
a company
a firm
a Limited Liability Partnership
an association of persons or a body of individuals, whether incorporated or not, in India or outside India
any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 2(45) of the Companies Act, 2013 (18 of 2013)
any body corporate incorporated by or under the laws of a country outside India
a co-operative society registered under any law relating to cooperative societies
a local authority
government
society as defined under the Societies Registration Act, 1860 (21 of 1860)
trust; and
every artificial juridical person, not falling within any of the preceding sub-clauses.

Question 13.
Who is a non-resident person?
Answer:
The Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

Question 14.
Who is a casual taxable person?
Answer:
A person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business.

Question 15.
What is place of business?
Answer:
It includes:

a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or
a place where a taxable person maintains his books of account; or
a place where a taxable person is engaged in business through an agent, by whatever name called.

Question 16.
What is principal supply?
Answer:
Principal supply basically signifies the supply of goods and services that is formed as a substantial element of a composite supply and any other related supply being ancillary.

Question 17.
What is composite supply?
Answer:
It means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.

Question 18.
What is mixed supply?
Answer:
Mised supply refers to two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Question 19.
What is Exempt’Supply?
Answer:
Exempt Supply of any goods or services is one which attracts nil rate of tax or which may be wholly exempt from tax. It includes non-taxable supply. In case of exempt supply in respect of any goods and/or services, the taxable person shall hot be required to pay tax.

Question 20.
What is Zero-Rated Supply?
Answer:
It means export or supply of goods or services to a Special Economic Zone developer or a Special Economic Zone unit.

Question 21.
What is Non-Taxable Supply?
Answer:
Non-taxable supply is sale of any goods or services which attracts nil rate of tax and is similar to exempt supply.

Question 22.
What is Taxable Supply?
Answer:
It means the Supply on which tax shall be paid under GST.

Question 23.
What Is inward supply?
Answer:
It means in relation to a person, shall mean receipt of goods and/or services whether by purchase, acquisition or any other means and whether or not for any consideration.

Question 24.
What is outward supply?
Answer:
It is in relation to a person, shall mean supply of goods or services, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other means made or agreed to be made by such person in the course or furtherance of business.

Question 25.
What is job work?
Answer:
It means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job worker” shall be construed accordingly.

Question 26.
What is input?
Answer:
It means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.

Question 27.
What is input service?
Answer:
Input service means any service used or intended to be used by a supplier in the course or furtherance of business.

Question 28.
What is input service distributor?
Answer:
It means an office of the supplier of goods and / or services which receives tax invoices issued under section 28 towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above.

Question 29.
What is input tax?
Answer:
A input tax in relation to a taxable person, means the IGST, including that on import of goods, CGST and SGST charged on any supply of goods or services to him and includes the tax payable under sub-section (3) of section 8, but does not include the tax paid under section 9.

Question 30.
What is reverse charge?
Answer:
Reverse charge is the liability to pay tax by the recipient of supply of goods or services instead of the supplier of such goods or services in respect of such categories of supplies as notified under sub-section (3) of section 8.

Question 31.
What is works contract?
Answer:
It means a contract wherein transfer of property in goods is involved in the execution of such contract and includes contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property.

Question 32.
Who is a non taxable person?
Answer:
It means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India.

Question 33.
What is taxable event under GST?
Answer:
Supply of taxable goods and services by a registered person is called as Taxable Event, which also includes time of supply and place of supply of goods and services.

Question 34.
Who is a supplier?
Answer:
It means in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied.

Question 35.
What Is export of services?
Answer:
Export of services means the supply of any service when:

The supplier of service is located in India.
The recipient of service is located outside India.
The place of supply of service is outside India.
The payment for such service has been received by the supplier of service in convertible foreign exchange.
The supplier of service and the recipient of service are not merely establishments of a distinct person.

Question 36.
What is import Of services?
Answer:
“Import of services” means the supply of any service, where:

The supplier of service is located outside India.
The recipient of service is located in India.
The place of supply of service is in India.

Question 37.
Who is an intermediary?
Answer:
A. “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.