What is the maximum GST rate applicable on intra-State supplies of goods or services under the CGST Act, 2017?

The maximum GST rate applicable is 40%, which includes CGST at 20% and SGST at 20%.

Fill in the blank: Section 9(2) of the CGST Act, 2017 states that GST will be levied on the supply of ___, ___, and ___ among others.

Petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel

True or False: A person can opt for the composition scheme if their aggregate turnover exceeds ₹ 1 crore.

False. A person cannot opt for the composition scheme if their aggregate turnover exceeds ₹ 1 crore.

What conditions must be met for a taxable person to be eligible for the composition scheme under Section 10 of the CGST Act, 2017?

Eligibility for Composition Scheme

• Turnover must be below ₹1 crore.

• No specified service engagement allowed.

• Inter-state supplies are not permitted.

According to the CGST Act, 2017, what is meant by 'aggregate turnover'?

Aggregate turnover includes all supplies.

• Total taxable supplies included.

• Exempt and export supplies counted.

• Excludes taxes from calculation.

Riddle: I am a tax collected on inter-State supplies but not on intra-State supplies. What am I?

Integrated Goods and Services Tax (IGST)

What is the significance of reverse charge in the context of the CGST Act, 2017?

Reverse charge shifts tax liability.

• Recipient pays tax, not supplier.

• Used for unregistered suppliers.

• Ensures tax compliance and revenue.

Fill in the blank: The composition scheme limit was increased to ₹ ___ crore effective from 15th November 2017.

1.5

Short Answer: What is the role of the Electronic Commerce Operator (ECO) under the CGST Act, 2017?

ECO handles tax liabilities in India.

• ECO pays tax without presence.

• Must appoint a local representative.

• Ensures compliance with tax laws.

True or False: A registered person must maintain elaborate records if they opt for the composition scheme under the CGST Act, 2017.

False. A registered person opting for the composition scheme is not required to maintain elaborate records.

What is the impact of holding goods purchased from unregistered suppliers on the eligibility for the composition scheme?

Holding goods affects scheme eligibility.

• Tax must be paid under reverse charge.

• Unregistered suppliers impact tax liability.

• Eligibility for composition scheme is affected.

Riddle: I am a tax that is not applicable to alcoholic liquor for human consumption. What tax am I?

Central Goods and Services Tax (CGST)

Explain the term 'inter-State supply' as defined under the CGST Act, 2017.

Inter-State supply refers to the supply of goods or services between two or more states, which is subject to Integrated Goods and Services Tax (IGST).

Fill in the blank: The aggregate turnover excludes central tax, state tax, union territory tax, integrated tax, and ___ when computing for the CGST Act.

Cess

What mandatory display requirements must a composition taxable person fulfill according to the CGST Act, 2017?

Display requirements for composition taxpayers

• Include 'composition taxable person'

• Invoices must state tax collection status

• Signboards must indicate composition status