GST Interview Questions and Answers

GST stands for Goods and Services Tax. It is an indirect tax which was introduced in India with aim of replacing a host of other indirect taxes such as VAT, excise duty service tax, CST, luxury tax, and entrainment tax.

GST on purchases is called Input GST.

GST on sales is called output GST.

GST payable is difference between of Output GST and Input GST.

GST Payable = Output GST – Input GST.

There will be 3 Different GST’s

CGST (Central GST)

SGST (State GST)

IGST (Integrated GST)

If the input GST is more than the Output GST, then its the GST Credit. While the It calculated differently for different types of GST.

Input tax credit (ITC) is the subtraction of the tax money you have paid on inputs on the final output bill.

GST input tax credit is the mechanism to avail of the benefit of tax paid on the purchase. In any value-added tax, every person in the chain pays tax o n their value addition.

GSTR 2A is the auto-populated form of GST.  When a supplier his GSTR 1 the data reflects in 2a of a related party.

RCM stands for Reverse Charge Mechanism.

If Seller Collects GST from Buyer and Pays to Government However, in some cases, Buyer Pays GST Directly to Government This is called Reverse Charge in GST.

CGST credit cannot be adjusted against SGST Payable. Similarly, SGST Credit cannot be adjusted CGST Payable. However, both can be adjusted against IGST Payable

Output IGST can be adjusted with Input GST in the following order

Input IGST if any

Input CGST if any

Input SGST if any

Form Number                Details in form

Form GST PMT – 1     Electronic Tax Liability Register of Taxpayer

Form GST PMT – 2     Electronic Credit Ledger of Taxpayer

Form GST PMT – 3     Order for re-credit of the amount to cash or credit ledger

Form GST PMT – 4     Electronic Cash Ledger of Taxpayer

Form GST PMT – 5     Challan for Deposit of Goods and Services Tax

Form GST PMT – 6     Payment Register of Temporary IDs / Un-registered Taxpayers

Form GST PMT – 7     Application for Credit of Missing Payment (CIN not generated)

Sl. No. Forms  Available for    Description of the Form

1. FORM GST ITC-01 For Taxpayer  Declaration for claim of input tax credit under sub-section (1) of section 18
2. FORM GST ITC-02 For Taxpayer  Declaration for transfer of ITC in case of sale, merger, demerger, amalgamation, lease or transfer of a business under sub-section (3) of

section 18

3. FORM GST ITC-03 For Taxpayer  Declaration for intimation of ITC

reversal/payment of tax on inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under sub-section (4) of section 18

4. FORM GST ITC-04 For Taxpayer  Details of goods/capital goods sent to job worker and received back

As per section 24 of the CGST/SGST Act, the following categories of persons shall be required to register, irrespective of the threshold limit:

• Persons making any interstate taxable supply
• Casual taxable persons
• Persons required to pay tax under reverse charge
• E-commerce operators required to pay tax under sub-section (5) of section 9
• Non-resident taxable persons
• Persons who are required to deduct tax under section 51
• Persons who supply goods and/or services on behalf of other registered taxable persons, whether as an agent or otherwise
• Input service distributor (whether or not separately registered)
• Persons who are required to collect tax under section 52
• Every eCommerce operator
• Every person supplying online information and database retrieval services from a place outside India to a person in India, other than a registered person
• Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources. A dual GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism.

Government may not be able to meet the initial GST implementation date of 1st April 2017. Its widely assumed that GST rollout will start only after 1 July 2017.

It means relieving the tax payer from the obligation to pay tax on goods when they are lost or destroyed due to any natural causes. Remission is subject to conditions stipulated under the law and rules made thereunder.