DELHI PUBLIC SCHOOL- BOPAL, AHMEDABAD

Notes-3 (2022- 23)

CHAPTER-3 JOURNAL
CLASS :XI
SUBJECT : ACCOUNTANCY

Goods and Services Tax

(One Country One Tex)
1. What is GST
GST is a destination tax on the consumption of goods and services levied
at all stages right from manufacturing up to the final consumption with credit
of taxes paid at previous stages. GST ensures one country one Tax. There are
three main components of GST which are CentralGST, StateGST, IGST.
What are the Components of GST?
Three main components of GST are Central GST (CGST), State GST
(SGST), Integrated GST (IGST).

2. What is CGST?
Central GST-Taxes collected under CGST will constitute the revenues
of the Central Government. The present central taxes like central excise
duty, additional excise duty, special excise duty, central sales tax etc., will be
absorbed under CGST.

3.What is SGST?
State GST SGST means State Good and Services Tax. A collection of
SGST is the revenue of the State Government. All state taxes like VAT,
entertainment tax, luxury tax, entry tax etc, will be merged with SGST.

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4.What is IGST?
Integrated GST.-IGST means Integrated Goods and Services Tax.
Revenue collected under IGST is divided between Central and State
Government as per the rates specified by the Government. IGST is charged
on transfer of goods and services from one state to another.
Import of goods and services are also covered under IGST.

5. What is Tax? Types of Tax.

Taxes are levied by governments on their citizens to generate income.
Taxes are mainly divided into two 1. Direct Taxes e.g. Income tax, Capital gain
etc. 2. Indirect Taxes. Service Tax, VAT, Excise duty etc.

6.What is Indirect Taxes? Types of Tax.

Taxes that are levied on products and services are called indirect tax.
Indirect taxes are collected by the seller of the products or services. Now
All indirect taxes are replace by GST Indirect Tax divided into two 1.
Collected by Centre Govt. eg. Service Tax, Excise duty, CST, custom duty 2.
Collected by State Govt.

7. What are the Characteristics of Goods and Services Tax?

1. GST is a common law and procedure throughout India

2. GST is a destination based tax.

3. GST is levied at a single point at the time of consumption of goods and

services by the endconsumer.
4. Minimum number of rates of tax does not exceed two.

5. There is no multiple levy of tax on goods and services such as sales tax

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6. Dual GST Central GST and State GST

8. What is the Current rates of GST

1. 0% 2. 5% 3. 12% 4. 18% 5. 28%

9.What are the Advantages of GST ?

1. One country One Tax
2. Abolition of multiple types of taxes in goods and services.
3. GST widens the tax base and increased revenue to Centre and
State.
4. GST has removed the cascading effect on taxation.
5. By introducing GST reduces administrative cost for the
Government.
6. GST has affected rates of tax to the maximum of two floor rates.
7. GST will eventually promote economic efficiency and sustainable
long term economic growth of the country. Show the Chart on Types of
G.S.T.

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 9. What is input Tax Credit
When any goods or services is supplied to a taxable person, the GST
charged is known as Input Tax. Input Credit means at the time of paying tax
on sales, you can reduce the tax you have already paid on purchases..

10. What is Output GST?

Output GST is applied on sale of goods or services provided.

11. A single tax levied at all stages right from manufacture up to

final consumption is ---Ans: GST

12. What is the dual aspect of GST?

Ans: GST has a dual aspect with the Central Govt. Will levy and
administer CGST & IGST while respective State Govts. Will levy and
administer SGST.

13. Which taxt is charged on transfer of goods and services from

one state to another. Ans: IGST

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14. Whcih Govt will levy and administer IGST
A) State Govt. B) Central Govt. C) Both A and B D) None of
these Ans: B) Central Govt.

15. Revenue collected under which tax is divided between Central and
State Government.
Ans: IGST

16. Leather bags worth Rs. 10,000 is sold by a Manufacturer in

Maharashtra to a Dealer in Delhi Which GST will be applied in this case
Ans: IGST

17. Ramesh a Mobile dealer in Kerala sold Mobile to Suma in Kerala

worth Rs. 10,000. If the GST rate is 18%, What GST will go to Kerala
Government.
Ans: Rs.900 (CGST 9% SGST 9%)

18. When goods are transferred from Madhya Pradesh to Rajasthan then
which GST is to be levied
Ans: IGST

19. What are different Accounts to be maintained by the trader under

GST Accounting?
1. Input CGST A/c
2, Output CGST A/c
3. Input SGST A/c

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4. Output SGST A/c

5. Input IGST A/c

6. Output IGST A/c

7. Electronic Cash Ledger (to be maintained on Govt. GST portal to pay GST)

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