Impact of Goods and Services Tax

Q. How does GST tackle smuggling of goods?

1. It imposes varied tax rates across the country.
2. It imposes uniform tax rates across the country.
3. It imposes zero taxes across the country.
4. It imposes flexible tax rates across the country.

Q. How is the goods and services tax (GST) more beneficial than the earlier indirect tax system?

1. GST increases the final prices.
2. GST increases smuggling of goods.
3. GST reduces paperwork.
4. GST increases competition between states.

Q. The government is in a dillema on whether to adopt the goods and services tax (GST) system or follow the old indirect tax system. As a advisor to the government, how will you convince the government to adopt the goods and services tax system?

1. GST reduces paperwork as e-bills are generated and tax payment is done online.
2. A uniform GST rate throughtout the country reduces smuggling of goods .
3. GST promotes equality as the rich and the poor pay the same rate of tax on goods and services.
4. Implementation of GST reduces transportation and operation costs of logistics companies.

Q. In order to file GST, one can get themselves registered online and generate an online bill known as _______.

1. e-bill
2. cash memo
3. bill
4. receipt

Q. The goods and services tax is entirely computerised. How is this beneficial?

1. Ease in payment of taxes
2. Increase in revenue of the central government
3. Ease in tracking GST payments
4. Decrease in amount of tax to be paid