The Goods and Service Tax(GST) : The Constitution 122nd Amendment Bill,2014

Part-1

1) Which of the following statements is correct with respect to Goods and Service Tax (GST)?

a) It will replace various indirect taxes with one simple nationwide tax.
b) It will be the tax on manufacture, sale and consumption of goods and services.
c) It will be levied and collected at each stage of sale or purchase of goods or services
d) All of the above

2) Which of the following statements is not the correct highlight of this bill?

a) Exemption of  Alcohol for human consumption from the purview of GST.
b) The GST Council to recommend the rates of tax.
c) Supreme powers with parliament to make laws on GST.
d) Integrated GST (IGST) on the interstate supply of goods and services, and imports to be levied by centre.

3) The GST Council will not consist of which of the following functionaries?

a) Union Finance Minister
b) Central Bank Governor
c) Union Minister of State for Revenue
d) state Finance Ministers.

4) The GST council will be constituted by :

a) President of India
b) Prime Minister
c) Union Finance Minister
d) Governor of RBI

5) What exclusive powers have been vested with the central government with respect to the GST bill, 2014?

a) To levy and collect GST on supplies in course of interstate trade and commerce.
b) Levying and collection of additional tax on supplies in course of interstate trade and commerce.
c) Both a and b
d) Neither a nor b

Answers

1) d
2) c, Parliament and state legislatures will have concurrent powers to make laws on GST.
3) b, The GST Council will recommend rates of tax, period of levy of additional tax, principles of supply, special provisions to certain states etc. 
4) a
5) c , Additional tax not to exceed 1%

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Part-2

1) Which of the following legislative actions will be needed to pass this constitution amendment bill?

a) Special majority of both the houses of parliament.
b) Simple majority of both the houses of parliament.
c) Special majority of both the houses of parliament and ratification of minimum 50% of the states.
d)  Simple majority of Lok Sabha only.

2) Which of the following statements is correct with respect to Goods and Service Tax (GST)?

a) GST will be the destination based tax.
b) GST council will be set up the Parliament of India.
c) Both a and b
d) Neither a nor b

Answers

1) b
2) a , GST council will be set up the President of India.

Reference : Business Standard Link , PRS Link , www.ey.com