GST Interview Questions at teachoo (टीचू)

GST means Goods and Services Tax

It is a tax which is to be soon introduced in India

In each state of India,taxes and rules are different

GST will lead to same rates of tax on different state

It is likely to be introduced by 1 July 2017

There will be 3  Different GST's

1. CGST (Central GST)
2. SGST (State GST)
3. IGST (Integrated GST)

CGST	SGST	Integrated GST (Interstate GST)
Full form of CGST is Central Goods and Services Tax	Full form of SGST is State Goods and Services Tax	Full form of IGST is Interstate Goods and Services Tax
CGST will also be charged on Local Sales within State	SGST will also be charged on Local Sales within State	IGST will be charged on Central Sales (Sales Outside State)
It will be charged and collected by Central Government	It will be charged and collected by State Government	It will be charged and collected by Central Government on Interstate Supply of Goods and Services
It will replace taxes like Central Excise and Service tax	It will replace taxes like VAT, Luxury tax and Entertainment tax	It will replace taxes like CST(Central Sales Tax)

CGST + SGST

IGST

• No Tax on Tax in Case of GST. 

  Previously Excise wass charged on Amount

  VAT/CST was charged on Amount+Excise.

  After GST, both Central and State GST will be on Amount

• Input of Central Purchases will be Available

  Previously on Central Purchases, CST wass charged for which no input is available

  After GST, Input will be available on Central Purchases called IGST Credit.

• Uniform Tax Rates in Different States

  Previously, Rates of Vat were different form state to state

  Also in some states, surcharge wass levied on this Vat

  After GST, Rates will be same for all. Uniform Rates

• Full input on Capital Goods

  Previously on Capital Goods, 50% Cenvat is available in current year and 50% in next year

  Also Input of Vat on Capital Goods is different from State to State

  (In Delhi,it is available in 3 years while in Harayana,not available at all)

  After GST, input will be available in first year

• There are too many returns to be filed

  Previously, a Vat Dealer normally files Quarterly Return for Vat (Four in One Year)

  A Service Provider files Monthly Returns for Service Tax (Two in One Year)

  In GST every person has to file 3 Returns Monthly

  • One for Purchase Details
  • One for Sales Details
  • One for both Purchase and Sales

  That is 36 Returns in One Year

  
  

  Apart from this, there is Annual Return also, so total 37 Returns to be filed

• Returns have become Complicated

  Previously, Party wise Details not to be given for Purchase and Sales in Service Tax and Excise

  After GST, giving Party wise details will be required to be given in case of GST also separately for Local, Central and Integrated GST

• Difficult to compute

  Suppose a shopkeeper sells the goods in Delhi, he currently pays only Vat

  Afrer GST, he will be paying both State GST and Central GST on Same Transaction

• IGST and not CGST on Interstate Sales

  Current Tax	After GST
  Within State VAT	Within State SGST CGST
  Outside State CST	Outside State IGST

• Last Period Tax to be Paid first

  Previously, if you have not paid last year tax, you can very well pay current period tax and file return

  After GST,

  Challan will not have period

  If there is tax outstanding, it will be first adjusted against that and balance against current period

• Concept of PLA to be Continued

  Previously in Excise, there is concept of PLA (Personal Ledger Account or Account Current)

  Whatever tax we pay by challan is deposited in PLA and Our excise duty liability is adjusted in it

  This confusing concept is currently only in Excise and not in Vat and Service Tax

  
  

  After GST, this PLA will be called Electronic Duty Credit Register and will be applicable only for all types of GST

GST on sales is called Output GST. It is also called GST Liability

GST on purchases is called Input GST.

Output GST - Input GST = GST Payable 

If Input GST is more than Output GST it is called GST Credit.

We calculate it Separately for different types of GST

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

• Input IGST  if any

• Input CGST  if any

• Input SGST  if any

CGST credit cannot be adjusted against SGST Payable.

Similarly, SGST Credit cannot be adjusted CGST Payable.

However, both can be adjusted against IGST Payable

Sequence of Adjustment

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

• Input IGST if any

• Input CGST if any

• Input SGST if any

20 Lacs

If Aggregate Turnover is greater than 20 lacs or likely to exceed 20 lacs, then Compulsory Registration

(Limit is 10 lacs for North Eastern States)

Aggregate turnover includes all types of sales

like

1. Taxable Sales

2. Exempt Sales

3. Export Sales

4. Interstate Sales

5. Sales by Agent of Principal (Amount of taxes not to be included)

Hence, If a person is making only exempt sales and the amount of sales is more than 20 lacs,still compulsory registration in GST

Similarly if a person is making only export sales,then also Compulsory Registration in GST

NO LIMIT  OF 20 LACS IN FOLLOWING CASES

However Compulsory Registration Required for making

1. Interstate Sales

2. Supplying goods on behalf of Other Persons

3. Casual Taxable Person

4. Non-resident taxable persons

5. If liable to deduct TDS in GST

6. If liable to deduct TCS in GST

7. Input Service Distributor

8. Making Sale on Behalf of other person (Franchise/Agent)

9. Reverse Charge

10. E-Commerce Companies

11. Online Database Service Provider from Outside India into India

12. Others as may be Notified

Hence, If a person is making only exempt sales and the amount of sales is more than 20 lacs,still compulsory registration in GST

Similarly if a person is making only export sales,then also Compulsory Registration in GST

Form No.	Description	Due Date
GSTR 1	Details of outward supplies of taxable goods and/or services effected	10th of the next month
GSTR 2	Details of inward supplies of taxable goods and/or services effected claiming input tax credit.	15th of the next month
GSTR 3	Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.	20th of the next month
GSTR 4	Quarterly return for compounding taxable person.	18th of the month next to quarter
GSTR 5	Return for Non-Resident foreign taxable person	20th of the next month
GSTR 6	Return for Input Service Distributor (ISD)	13th of the next month
GSTR 7	Return for authorities deducting tax at source	10th of the next month
GSTR 8	Details of supplies effected through e-commerce operator and the amount of tax collected	10th of the next month
GSTR 9	Annual Return	By 31st December of next FY
GSTR 10	Final Return	Within three months of the date of cancellation or date of cancellation order, whichever is later.
GSTR 11	Details of inward supplies to be furnished by a person having UIN	28th of the month following the month for which statement is filed

For All types of Taxable Sales (Local or Central), Normally A Tax Invoice is to be issued

• Same Series number of Invoice will start for Local and Central Sales

• Same Series to be Used for Sale to Registered and Sale to Unregistered person

For All types of Taxable Sales (Local or Central), Normally A Tax Invoice is to be issued

1. Sale of Exempted Goods

2. Sale by Composition Dealer

TAX INVOICE	BILL  OF SUPPLY
It is used for all types of Taxable Sales (Local , Central)	It is used for all types of Exempt Sales Or Sales by Composition Dealer
CGST, SGST, IGST, UTGST to be shown Separately	No Taxes to be shown on Bill
In Case of Unregistered Buyer, Name, Address State, Place of Delivery is compulsorily required if Invoice Value before taxes is more than 50000	No Such provision
Can be Used for Both Local and Central Sales	Can be Used for Both Local Sales in Case of Composition Dealer (as Composition Dealer Cannot Make interstate Sales) However, Exempt Sales can be made  to both Local and Central Sales

FORM No	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)

To learn Basics of GST, you can visit our GST page teachoo.com/gst

To learn GST Return Filing and Challans, you can take our premium course teachoo.com/premium