Indirect Tax Executive Interview Questions and Answers

GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services.

• GST is a single tax that replaced multiple indirect taxes in India

• It was implemented on July 1, 2017

• GST has three components: Central GST (CGST), State GST (SGST), and Integrated GST (IGST)

• It aims to simplify the tax structure, reduce tax evasion, and promote ease of doing business

• GST is applicable to all stages of the supply chain, from manufacturing to consum...read more

Drawbacks of GST include complexity, increased compliance burden, and potential for tax evasion.

• Complexity in understanding and implementing GST laws and regulations

• Increased compliance burden for businesses due to multiple filings and documentation requirements

• Potential for tax evasion through fraudulent input tax credit claims

• Impact on small businesses due to higher compliance costs

• Difficulty in determining the correct tax rate for goods and services

Exempt supply refers to goods or services that are not subject to tax.

• Exempt supplies do not attract any tax liability.

• These supplies are specifically listed in the tax laws as exempt.

• Examples include certain food items, healthcare services, and educational services.