Chapter 33: Indirect Taxation — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 33: Indirect Taxation with a free chapter-wise online MCQ test.
This chapter covers: The final chapter details indirect taxation structures in India focusing on Goods and Services Tax. Students study CGST SGST IGST classifications tax benefits and GST Council funct....
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Chapter 33: Indirect Taxation — Important Questions & Answers
What does the abbreviation GST stand for in the context of Indian taxation?
- A. Goods and Service Tax
- B. Government Sales Tax
- C. General Service Tax
- D. Gross Sales Tax
Answer: A. Goods and Service Tax
GST stands for Goods and Services Tax, which replaced multiple indirect taxes in India.
GST stands for Goods and Services Tax, which replaced multiple indirect taxes in India.
Which of the following is considered an indirect tax?
- A. Income Tax
- B. Corporate Tax
- C. Goods and Services Tax
- D. Wealth Tax
Answer: C. Goods and Services Tax
Indirect tax is collected by an intermediary from the person who bears the ultimate economic burden, such as GST.
Indirect tax is collected by an intermediary from the person who bears the ultimate economic burden, such as GST.
Which of the following taxes was NOT subsumed under GST?
- A. Central Excise Duty
- B. Value Added Tax (VAT)
- C. Basic Customs Duty
- D. Entertainment Tax
Answer: C. Basic Customs Duty
Basic Customs Duty is still levied on imports and was not replaced by GST.
Basic Customs Duty is still levied on imports and was not replaced by GST.
How does GST promote the 'One Nation, One Tax' vision?
- A. By removing the cascading effect of taxes
- B. By increasing customs duty on all items
- C. By eliminating the role of state governments
- D. By making all taxes direct
Answer: A. By removing the cascading effect of taxes
GST eliminates the cascading effect (tax on tax) by providing seamless input tax credits.
GST eliminates the cascading effect (tax on tax) by providing seamless input tax credits.
If the government decides to keep petroleum products outside GST, what is the most likely reason?
- A. They are not goods
- B. To retain state control over revenue generation from these items
- C. They are universally free of tax
- D. They are only exported
Answer: B. To retain state control over revenue generation from these items
Petroleum products generate significant revenue for states, and including them in GST would restrict state revenue autonomy.
Petroleum products generate significant revenue for states, and including them in GST would restrict state revenue autonomy.