1) What are final GST rate slabs?

The Goods and Services Tax (GST) will be levied at multiple rates ranging from 0 per
cent to 28 per cent. GST Council finalised a four-tier GST tax structure of 5%, 12%,
18% and 28%, with lower rates for essential items and the highest for luxury and de-
merits goods that would also attract an additional cess.

Service Tax will go up from 15% to 18%. The services being taxed at lower rates, owing
to the provision of abatement, such as train tickets, will fall in the lower slabs.

2) What are CGST, SGST and IGST?

India is a federal democracy that is one which has clear demarcation of powers,
responsibility and revenue collection between the states and the centre in its
constitution. For example law and order falls under the state’s jurisdiction while the
nation’s defence is the centre’s responsibility. The GST too needs to have clear
provisions on what areas the centre and the state are allowed to collect revenue from
taxation to prevent an overlapping.

The Central GST or CGST is the areas where the centre has the powers and State GST
where the State has taxation capabilities. The IGST or Integrated GST is for movement
of goods within the states of the Indian union. This will be collected by the union
however will be transferred over to the states. Thus it is essential that if and when the
GST comes out it is rolled over in the entire nation simultaneously.

3) What are the taxes that GST replaces?

The GST replaces numerous different indirect taxes such as:

1. Central Excise Duty

2. Service Tax
3. Countervailing Duty
4. Special Countervailing Duty
5. Value Added Tax (VAT)
6. Central Sales Tax (CST)
7. Octroi
8. Entertainment Tax
9. Entry Tax
10. Purchase Tax
11. Luxury Tax
12. Advertisement taxes
13. Taxes applicable on lotteries.
4) Identify the Place of supply in the Following cases

Case 1- Intra-state sales

Mr. Raj of Mumbai, Maharashtra sells 10 TV sets to Mr. Vijay of Nagpur, Maharashtra
The place of supply is Nagpur in Maharashtra. Since it is the same state CGST & SGST
will be charged.
Case 2-Inter-State sales
Mr. Raj of Mumbai, Maharashtra sells 30 TV sets to Mr. Vinod of Bangalore, Karnataka
The place of supply is Bangalore in Karnataka. Since it is a different state IGST will be
charged.
Case 3- Deliver to a 3rd party as per instructions
Anand in Lucknow buys goods from Mr. Raj in Mumbai (Maharashtra). The buyer
requests the seller to send the goods to Nagpur (Maharashtra)
In this case, it will be assumed that the buyer in Lucknow has received the goods &
IGST will be charged.
Place of supply: Lucknow (UP)
GST: IGST

5)Calculate tax liability if any , Considering Input tax Credit utilisation

Mr.X has an IGST liability of Rs.50 lakhs, a CGST liability of Rs.1 Cr and his SGST
liability of Rs. 1Cr
His Input Tax credit is as follows – IGST credit of Rs.2 Cr, CGST credit of Rs. 15L and
SGST credit of Rs. 15L.

As per the existing system, the set-off takes place as follows-(all figures in INR)
Type of Tax Liability Credit Set-off of Liability Balance to Balance
Available be paid in credit
cash available

IGST 50,00,000 2,00,00,000 50,00,000 (from

IGST)

CGST 1,00,00,000 15,00,000 15,00,000 – –

(from CGST)
Rs.85,00,000 (from
IGST)

SGST/UTGST 1,00,00,000 15,00,000 Rs. 15,00,000 (from 20,00,000 –

SGST)
Rs.65,00,000
(from IGST)

6) Types of GST Returns (Min 5 nos ,Dates ,Use )

7) Differentiate Direct Tax and Indirect Tax

8) Explain GST Council

9) Who is a Composition dealer What are the GST rates for a composition dealer?

10) Calculate Value of GST

Let us consider an example of ABC, a manufacturer, selling tools and hardware like drills,
polishers, spades etc. It sells a power drill to XYZ a wholesaler. The MRP is Rs. 5,500 but
ABC sells it for Rs. 3,000.
Currently, the invoice will look like-

Power Drill 3,000

Add: Excise @ 12.5% 375

Subtotal 3,375

Add: VAT @14.5% (on subtotal) 490

Total 3,865

Value of supply under GST

The value of goods &/or services supplied is the transaction value, i.e. the price
paid/payable, which is Rs 3,000 in the example. Assuming CGST=9% and SGST=
9%

Power Drill 3,000

Add: CGST @9% 270

Add: SGST @9% 270

Total 3,540