TOP 25 GST INTERVIEW QUESTIONS AND ANSWERS

GST 

GST, or Goods and Services Tax, is a comprehensive indirect tax introduced to simplify India's tax structure. It replaced multiple indirect taxes such as VAT, service tax, and excise duty. Implemented on July 1, 2017, GST is designed to bring uniformity and streamline taxation.

Here are some highlights about GST:

Key Features:

• Dual Tax System: GST in India is divided into CGST (Central), SGST/UTGST (State/Union Territory), and IGST (Integrated for inter-state transactions).
• Destination-Based Taxation: Tax is levied at the place of consumption.
• Elimination of Cascading Effect: ITC (Input Tax Credit) ensures that tax is only paid on the value addition, reducing the cascading tax effect.
• Threshold Exemption: Businesses with turnovers below specified limits are exempt from GST registration.

Advantages of GST:

1. Simplifies the tax structure with a single indirect tax.
2. Boosts transparency by enabling digital compliance and reducing tax evasion.
3. Encourages ease of doing business by unifying the market.
4. Reduces the overall tax burden for consumers.

Important Components:

1. Input Tax Credit (ITC): Allows businesses to claim credit for taxes paid on inputs used for producing goods or services.
2. GST Returns: Taxpayers file regular returns to declare transactions, ITC, and tax liabilities.
3. E-Way Bill System: Facilitates the seamless movement of goods.

GST INTERVIEWS

Preparing for GST (Goods and Services Tax) interviews can feel overwhelming, but a structured approach can help. Interviews typically cover the basics, compliance procedures, tax calculations, and practical scenarios.

Key Areas for GST Interviews:

1. Basic Understanding:
2. • What is GST, and why was it introduced?
   • Types of GST: CGST, SGST, IGST, and UTGST.
   • Difference between the origin-based and destination-based tax systems.
   • Milestones in GST implementation in India.
3. Registration and Filing:
4. • Who needs to register for GST? What is the threshold limit?
   • Steps to register on the GST portal.
   • What is GSTIN, and how is it structured?
   • Types of GST returns: GSTR-1, GSTR-3B, GSTR-9, etc.
5. Input Tax Credit (ITC):
6. • What is ITC, and how does it reduce tax liability?
   • Conditions for claiming ITC.
   • Restrictions on ITC claims.
7. Tax Mechanism:
8. • How is GST calculated? Provide examples.
   • Reverse Charge Mechanism: When and how does it apply?
   • What is the e-way bill system, and when is it mandatory?
9. Compliance and Challenges:
10. • Common penalties for non-compliance with GST rules.
    • Challenges businesses face with GST implementation.
    • Importance of the anti-profiteering clause.
11. Advanced Topics:
12. • GST Compensation Cess: Why is it levied?
    • Role of GSTN (Goods and Services Tax Network) in the ecosystem.
    • GST impact on exports and zero-rated supplies.

Tips for GST Interviews:

• Understand Practical Scenarios: Be prepared to explain how GST applies in real-life business situations.
• Stay Updated: GST laws and rates are subject to change, so ensure your knowledge is current.
• Know the Technology : Familiarize yourself with the GST portal, return filing process, and e-invoicing system.

Top 25 GST Interview Questions and Answers

Here are 25  GST interview questions and answers to help you prepare:

Basic Concepts

1. What is GST? GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services, replacing multiple indirect taxes.
2. What are the types of GST?
3. • CGST (Central Goods and Services Tax)
   • SGST (State Goods and Services Tax)
   • IGST (Integrated Goods and Services Tax)
   • UTGST (Union Territory Goods and Services Tax)
4. When was GST introduced in India? GST was implemented on July 1, 2017, through the 101st Constitutional Amendment Act.
5. What is the GST Council? The GST Council is a constitutional body responsible for making recommendations on GST-related issues.
6. What is Input Tax Credit (ITC)? ITC allows businesses to reduce the tax they have paid on inputs from their output tax liability.

Registration and Compliance

1. What is the threshold limit for GST registration? Businesses with an annual turnover exceeding ₹40 lakhs (₹10 lakhs for North-Eastern states) must register under GST.
2. What is the reverse charge mechanism? Under this, the recipient of goods or services is liable to pay GST instead of the supplier.
3. What is GSTIN? GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit number assigned to every registered taxpayer.
4. What are HSN and SAC codes? HSN (Harmonized System of Nomenclature) and SAC (Service Accounting Code) are used for the classification of goods and services under GST.
5. What is the penalty for non-compliance under GST? Penalties include monetary fines and imprisonment, depending on the nature and severity of the offense.

Tax Calculation and Filing

1. How is GST calculated? GST = (GST Rate / 100) × Transaction Value.
2. What are the different GST returns?
3. • GSTR-1: Details of outward supplies.
   • GSTR-3B: Monthly summary return.
   • GSTR-9: Annual return.
4. What is the composition scheme under GST? It allows small taxpayers to pay a fixed percentage of their turnover as GST instead of the regular tax rates.
5. What is the e-way bill system? An electronic document generated for the movement of goods worth more than ₹50,000.
6. What is the GST compensation cess? A cess levied on certain luxury and sin goods to compensate states for revenue loss due to GST implementation.

Advanced Topics

1. What is the anti-profiteering clause in GST? It ensures that the benefits of reduced tax rates or ITC are passed on to consumers by way of reduced prices.
2. What are exempted goods and services under GST? Essential items like fresh fruits, vegetables, milk, and educational services are exempt from GST.
3. What is the role of the GST Network (GSTN)? GSTN is the IT backbone of GST, providing a platform for taxpayers to register, file returns, and make payments.
4. What is the destination-based taxation principle? GST is levied at the point of consumption rather than the point of origin.
5. What is the difference between CGST, SGST, and IGST?
6. • CGST: Collected by the Central Government on intra-state supplies.
   • SGST: Collected by the State Government on intra-state supplies.
   • IGST: Collected by the Central Government on inter-state supplies.

Practical Scenarios

1. How does GST impact small businesses? GST simplifies tax compliance but may increase costs due to mandatory registration and filing requirements.
2. What is the process for GST registration? Registration involves submitting an online application with required documents on the GST portal.
3. What is the impact of GST on exports? Exports are zero-rated under GST, meaning no tax is levied, and exporters can claim refunds on input taxes.
4. What is the GST audit? A GST audit is an examination of records to ensure compliance with GST laws.
5. What are the challenges in GST implementation? Challenges include technical issues, compliance burdens, and understanding the complex tax structure.

GET PREPAID FOR GST INTERVIEWS WITH DALTON DIRAC

Dalton Dirac appears to offer resources and guidance for GST interview preparation, focusing on taxation, compliance, and practical applications. Their materials often include detailed explanations of GST concepts, practical scenarios, and commonly asked interview questions. For example, they provide insights into topics like GST registration, Input Tax Credit (ITC), reverse charge mechanism, and compliance requirements.

What You’ll Learn in a GST Interview Preparation Program with  DALTON DIRAC 

1. In-Depth Knowledge of GST Concepts:
2. • Basics of GST: Objectives, advantages, and structure (CGST, SGST, IGST, UTGST).
   • Key principles, such as destination-based taxation and the elimination of cascading taxes.
   • Special schemes like the Composition Scheme and GST Compensation Cess.
3. Practical Scenarios and Applications:
4. • Calculation of GST for various transactions.
   • Understanding reverse charge mechanisms, input tax credit (ITC), and e-way bills.
   • How GST applies to exports, imports, and inter-state transactions.
5. Technical Compliance:
6. • Overview of the GST registration process and threshold limits.
   • Filing GST returns: GSTR-1, GSTR-3B, GSTR-9, and more.
   • Using the GST portal for registration, return filing, and payment.
7. Real-Life Problem Solving:
8. • Case studies to identify errors in GST returns and rectify them.
   • Examples of anti-profiteering cases and how businesses should manage compliance.
9. Updates and Amendments:
10. • Latest changes in GST rates, policies, and compliance requirements.
    • Understanding evolving rules and their implications on businesses.

Why Choose Dalton Dirac for GST Interview Preparation?

• Experienced Faculty: Learn from experts with practical GST knowledge.
• Interactive Sessions: Participate in mock interviews, live quizzes, and case studies.
• Customized Study Plans: Tailored materials to address specific interview formats and industries.
• Resources: Access comprehensive guides, practice papers, and GST-related FAQs.

Steps to Prepare for GST Interviews

1. Study Materials: Use resources like guides, articles, and handbooks to build foundational knowledge.
2. Practice Mock Interviews: Focus on explaining concepts and solving case studies confidently.
3. Stay Updated: Regularly review changes in GST laws to demonstrate a current understanding.

"Join the Future of  Learning with Dalton Dirac: Your Career Deserves This!"