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What is GST?

The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services. In other words, Goods and Service Tax (GST) is a broad, multi-stage, tax applied on every stage where value is added. GST is the only indirect domestic tax for the entire country.

The Goods and Service Tax Act was approved and passed in Parliament on 29th March 2017 and it came into effect on 1st July 2017.

The rate of GST, rules and the act is the same across all Indian states including union territories are uniform. 

If you are looking for a job that specializes in GST or if you are keen to know more in-depth about it, it is ideal to enroll in one of the best courses that offer certification in GST. This would be an added advantage in your bag of abilities. 

Henry Harvin’s GST course has been featured by Aaj Tak, Hindustan Times, and ranked as the #1 GST course by India Today and Tribune India, in the industry.

Henry Harvin’s GST course is trusted by more than 160 corporates and is the first institute to launch a GST course formally in December 2016.

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The course curriculum has four modules with two complimentary modules on Soft skills and Resume writing. Topics covered are – Supply or Levy E-Way Bills, Registrations, Litigation Management etc. 

Let us now ponder upon Top 40 GST Interview Questions and Answers in 2022:

Q1. What Are the Taxes That Were in Place Instead of GST?

Many indirect taxes were levied which are now replaced by GST. They are 

Central Excise Duty, Countervailing Duty, Service Tax, Special Countervailing Duty, Central Sales Tax (CST), Value Added Tax (VAT), Entertainment Tax, Octroi, Entry Tax, Taxes on lotteries, Advertisement taxes, Purchase Tax, Luxury Tax

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Q.2  What do you Understand by the Remission of Tax/Duty?

It means that the taxpayer is free from the obligation to pay tax on goods in case they are lost or destroyed because of natural causes. Some conditions also apply as per the law and rules under remission. 

Q.3  What is Reverse Charge Mechanism(RCM)? Does it Apply only to Services?

Reverse Charge Mechanism is a mechanism under GST,  wherein  the usual cycle of tax payment is reversed.

No, reverse charge mechanism is applied to both, supply of services and goods.

Q.4 Can the Working Government Exempt Supplies from Levying GST under the Model GST Law?

Yes. There is a provision under the Model GST Law’s section 10, the Central or State Government, can exempt the supplies from the levy of GST based on the recommendation of the GST council in general or subject to conditions.

Q.5  What does a Taxable Event under GST Mean?

A taxable event is an event that takes place for the tax to be levied – CGST & SGST will be levied on intra-state supplies; IGST will be levied on inter-state supplies.

Q.6 What does GST Credit Mean?

If input GST is higher than the output GST, then it is called the GST Credit. It is calculated differently for different types of GST.

Q.7 How would you Differentiate Between CGST, SGST and IGST?

1. CGST stands for Central Goods and Services Tax. CGST is levied on sales within the State and is collected by Central Government. CGST replaces taxes like Central Excise and Service tax

2. SGST ( State Goods and Services Tax) is levied on local sales within State and is collected by State Government. SGST will replaces taxes like VAT, Entertainment tax and Luxury tax 

3. IGST (Interstate Goods and Services Tax) is levied on central sales, that is sales out of state. This is collected by Central Government as Interstate Supply of Goods and Services. IGST replaces taxes like CST(Central Sales Tax).

Q.8 What is Meant by Input GST?

GST on purchase is called Input GST.

Q.9  What is Payable GST?

The difference between the Output GST and  Input GST is the GST payable.

Q.10  What is the Limit for Registration in GST?

The limit for registration in GST is Rs. 20 Lacs. In case the turnover is more than 20 lacs or likely to go beyond 20 lacs, then compulsory registration in GST is applicable. 

The turnover includes 

1. Taxable Sales

2. Exempt Sales

3. Export Sales

4. Interstate Sales

5. Sales by Agent of Principal

Q.11 Are all Goods, Services Covered Under GST?

Except for a particular list of exempted items, all other goods and services come under the GST. It is the most comprehensive indirect tax in the Indian economy.  

Question 13  Will GST be higher if the cost of supply rises?

GST will have a standard rate. There will be different effects for various goods and services in the country based on the current rate. If the current rate is higher,  the GST will be going down to a lower rate but if the current rate is lower then GST will be higher. In all, with multiple taxes removed it will finally lead to savings for the consumer.

Q.12 Where is GST Collected?

The GST is collected at the point wherever the sale is made, so that there is no confusion about when it has to be paid. Earlier different taxes were collected at different stages of the business process so there was a tax at every step such as manufacturing, sale and even when goods were moved from one place to the other. Under the GST all of these are eliminated making it easy for all in the supply chain. 

Q.13  How Does One File a GST Return Online?

GST return can be filed online on the GST Portal. You need to be registered under GST and have the 15 digit GST identification number which is based on your state code and PAN. 

Q.14 What Is the Contribution of Technology in Bringing GST into Effect?

Goods and Services Tax Network GST Practitioner Course has created an Indirect Taxation platform for GST to help taxpayers in India to make ready, file returns, pay indirect tax liabilities and complete other compliances online. It supplies IT infrastructure and services to the Central and State  Governments, taxpayers and other stakeholders for the implementation of GST in India. The main aim of the GSTN  Goods and service tax network is to have a uniform and transparent medium easily reachable to all the taxpayers, members, stakeholders and government.

Q.15  Is GST a Common System of Taxation in Other Parts of the World?

Most countries across the world have a GST system. More than 160 countries have implemented the GST in their economies with France being the first country to do so.

Q.16 How will GST affect Corporate Tax or Income Tax?

Corporate tax and Income tax are direct taxes that are to be paid by the person or entity they are levied on and cannot pass on to anyone else. They will remain as they are. Whereas GST is an indirect tax. 

Q.17 In a Business Process, Who Pays the Final Tax?

The GST is an indirect tax wherein the tax keeps passed on till the last stage where the customer bears the tax. The change under the GST is that with multiple taxes levied in each stage the final cost to the customer will be eventually lower as double charging is eliminated from the system.

Q.18  What Are the Effects of Purchasing Goods from Unregistered Dealers?

The person who receives goods or services will get ITC(Input Tax Credit ). In fact, the receivers of goods or services who are registered under any composition schemes are liable to pay tax under reverse charge.

The taxable person who becomes non-eligible under composition scheme would still be liable to pay tax with interest and also he is liable to a penalty equal to the amount of tax outstanding.

Q.20 What Is the Minimum Amount for GST?

With GST in action, all businesses with a turnover of over Rs. 40 lakhs* (Rs 10 lakhs for the NE and hill states) are needed to register as a normal taxable person. This process of registering is called GST registration. For many businesses, this registration is compulsory. 

Q.21 Can a Taxable Person Avail a Composition Scheme for Inter-State Supplies?

No, the composition scheme is subject to the condition that the taxable person does not involve in inter-state supplies.

Q.22 What Is GST Under the Composition Scheme?

The Composition Scheme is a plain and easy scheme under GST for taxpayers. The advantage for small taxpayers is that they can be free from tedious GST formalities and make their GST payment at a fixed rate of turnover. Any taxpayer whose turnover is less than Rs. 1.5 crore* can choose this scheme.

Q.23 Who Is Qualified for the Composition Scheme?

  • The Composition scheme requirements are :
  • The supplier of goods or service should have a turnover of less than Rs. 50 lakh in the previous financial year. 
  • The supplier must not supply non-taxable goods. 
  • The supplier must not be involved in inter-state supplies

If I have a proprietorship registered and want to trade many products, what other documents would I need or do I have to change anything in GST?

You need to provide the HSN code of the top five products you are dealing with while registering. You don’t have to provide any additional documents for this.

Q.24 What Are the Types of GST?

There are 4 types of GST in India:

  • SGST (State Goods and Services Tax)
  • CGST (Central Goods and Services Tax)
  • IGST (Integrated Goods and Services Tax)
  • UGST (Union Territory Goods and Services Tax)

Q.25 Which Are the Products on Which GST Does Not Apply?

Items that are free from the GST are live fish, fresh fish, bird’s eggs in the shell, fresh milk, fresh ginger, garlic, grapes, melon, unroasted coffee beans, unprocessed green tea leaves, etc. Corn, rice, wheat, maize, soybean, hulled cereal grains, etc.

Q.26 What are the New Compliances Under GST?

Apart from the online filing of the GST returns, the GST regime has introduced several new systems along with it.

e-Way Bills

A centralised system of GST for waybills with the  “E-way bills”. This system was launched on 1st April 2018 for inter-state movement of goods and on 15th April 2018 for intra-state movement of goods step by step.

Under this e-way bill system, manufacturers, traders and transporters can generate e-way bills for the goods transported from the place of their origin to their destination on the same platform easily. The tax authorities also benefit as this system has lessened the time spent at check -posts and helps reduce tax evasion.

E-invoicing

This system of e-invoicing came into effect from 1st October 2020 for businesses with an annual turnover of more than Rs.500 crore in any former financial years (from 2017-18). Also, from 1st January 2021, this system was stretched to those with an annual turnover of more than Rs.100 crore.

The businesses should procure a unique invoice reference number for every business-to-business invoice by uploading it on the GSTN’s invoice registration portal. This portal validates the invoice and authorises using the digital signature with a QR code.

e-Invoicing allows replication of invoices and helps lessen data entry mistakes. The invoice information is transferred directly from the IRP to the GST portal and the e-way bill portal and so eliminate the need for manual data of filing GSTR-1.

Q.27 Give Reasons as to Why the Time, Place and Value of Supply Is Important?

Time of supply is the point in time when goods/services are actually supplied. The seller needs to know the ‘time’ as it helps him find the due date for payment of taxes. The place of supply is required for finalizing the right tax to be charged on the invoice if IGST or CGST/SGST will apply. Value of supply is needed as GST is calculated on the actual value of the sale. If it is inaccurate, the GST amount charged will be incorrect. 

Q.28 What Is the Threshold Limit to Pay Tax Under the Composition Scheme?

The threshold limit for the composition scheme is Rs. 50 Lakhs of aggregate turnover in the financial year.

Q.29 Can the Customer of a Taxable Person Who Is Under the Composition Scheme Claim Composition Tax as an Input Tax Credit?

No, he cannot. A customer buying goods from a taxable person who is under a composition scheme is not eligible for composition input tax credit as a composition scheme supplier cannot issue any tax invoice.

Q.30 How Do Frauds Make Use of Fake Gst Invoices?

Issuing invoices without any supply of goods or services is one instance. The supplier uses his available input tax credit to discharge tax liability and passes this on to the buyer. The buyer uses this tax credit to further pass it on to his buyer. This process contradicts section 16(2) which lays down four specific conditions to use ITC, like, Goods or services must be received by the buyer in addition to being in possession of a tax invoice.

Section 122 states this as a punishable offence and attracts a penalty with a jail term.

Another instance is claiming ITC with no tax invoice nor goods. ( As per Rule 36(4) 5% of invoices not present in GSTR 2A can be claimed as ITC ). Fraudster “recipient” has the ability to claim ghost ITC to get over his present fund’s crunch and reverse it at a later stage.

Q.31 What Do You Mean by Output GST?

GST on sales is called Output GST which is also referred to as GST Liability.

Q.32 What Are the Various Invoices Under GST?

The various invoices under GST are –

1. Normally a tax invoice is to be issued for all types of Taxable Sales (Local or Central), 

2. Local and central sales begin with the same serial number of invoice 

3. The same series is to be used for any sale made to registered and to unregistered person

4.  A tax invoice is to be issued for all types of taxable sales (Local or Central), generally

5. Sale of exempted goods

6. Sale by composition dealer

Q.33 What Are the Disadvantages of GST?

Some of the disadvantages of GST are –

1. There are too many returns to be filed

2. Returns have become complicated

3. Difficulty in computation

4. IGST and not CGST on Interstate Sales

5. Last Period Tax to be paid first

6. Last Period Tax to be paid first

Hoping these questions and answers will help you to crack the interview and boost your confidence. Soft skills like communication also play a vital role in being successful in interviews. With both, knowledge and good communication, you are not far away from your dream job of being a GST certified practitioner.

34. In which states does GST not apply?

Except for Jammu and Kashmir, GST is appropriate in all states.

35. What are the effects of the GST tax?

The introduction of the GST will help to reduce charge rates, do away with the collection of various point taxes, and increase incomes. Fundamentally, a consistent tax system will normalize the market in India and facilitate product, commerce, and exchange.

36. What does a GST specialist do for an organization?

A licensed individual who goes about as an extension between the GST System and the Registered Person is known as a GST proficient. They support the enrolled citizens with various GST compliances. Government form preparers for at least five years according to an outdated legislation.

37. Are there any aspects of the GST concept that you are familiar with?

 If you have any knowledge about handling GST, please share it with the person asking the question.

38. Define the GST’s Slabs?

There are currently 5 rate components for the GST: 3%, 5%, 12%, 18%, and 28%. This is distinct from the manner that some products are absolved and zero-evaluated.

39. Who is the head of GST?

Finance Minister(Nirmala Sitarman)

40. What is the GST number?

 Organizations should enroll for the Goods and Services Tax (GST) and get an exceptional 15-digit Goods and Services Tax Identification Number (GSTIN). The Tax Identification Number (TIN) that businesses received from state tax authorities in order to register with the VAT system has been replaced by this.

41. Which Indian state implemented the GST first?

Assam

42. How is a GST number assigned?

Ans. A 15-digit identification number makes up the GST Registration number. In view of the candidate’s PAN and express, the citizen was doled out a number. The State Code is addressed by the initial two digits of a GST enrollment number. The candidate’s PAN is addressed by the following 10 numbers.

43. What purpose does the registration of GST practitioners serve?

An authorized GST practitioner may file returns on behalf of a registered business. The taxpayers can send a request to employ a certain person as their practitioner once the GST practitioner enrolls with the GST system. The professional can then choose whether to allow or deny the citizen’s solicitation.

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FAQ’s

Q1. Can a GST practitioner work after completion of the course?

Ans.  GST practitioners can pay taxes or submit refund requests on behalf of the registered parties. Before any official of the GST Department, Appellate authority, and Tribunal, a GST practitioner may attend in person as an authorized representative.
Q2.  What are the GST’s advantages for the government?
Ans. The GST lowers indirect taxation and tax-on-tax. Eliminating redundant compliances like VAT, service tax, etc., increases outflow. With the introduction of GST, the outflow has been significantly decreased, eliminating the taxation’s cascading effect.
Q3.  How are the GST interview questions and answers prepared?
Ans.  Preparing for an interview generally entails giving careful attention to how your objectives and credentials compare to those of the position and company. The interviewer attentively reads the job description to comprehend why you would be a suitable fit to achieve this.
Q4.  What makes these GST interview questions and answers real?
Ans. Yes, research and assessment were used to create the questions. However, the format will change, so I advise you to go over and address any questions you have about it as you get ready for an interview.
Q5.  Most of the GST interview questions and answers are found in which round.
Ans. During your first round, you can encounter simple questions. On the technical round, you. will, however, typically encounter all of the detailed GST questions.

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89 Comments

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  74. Vaishnavi Darekar Reply

    I learn the tools and techniques used by companies to improve production processes, eliminate defects and guarantee quality. Best blog of GST interview questions and answers

  75. Vaishnavi Darekar Reply

    A very understandable, interactive and practical approach that I can apply to the foundations of my digital marketing practices going forward.

  76. Anuj Dange Reply

    Great course – easy to follow and a great insight intro. Very modern with interesting GST interview questions and answers of how well known companies have marketed their products and services.

  77. Gautam Sharma Reply

    Excellent work !!! The content u choose of GST interview questions and answers and the way u shared it actually a result of deep thinking and knowledge. because it is very helpful for me to crack interview for GST department. Thanku Henry Harvin

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