Page 5 - Chapter 1

CCP 01.03.05.00 borne by the final consumer.
CH 1
What would be the rate structure under GST?
Answer :- The rate structure consists for goods & services will be 0.25%, 3%, 5%, 04. Dual GST Model in India

12%, 18% and 28 % besides goods which are taxed at nil rate (fully exempt). GST CCP 01.04.08.00
Tariff may be referred to know tax rate for respective goods and services. Explain the concept of 'Dual GST' (Nov 17-CA final)[ICAI Material] Introduction of GST
Answer : Under dual GST model, GST is imposed concurrently i.e. Central & States,
CCP 01.03.06.00 simultaneously impose on goods and services.
GST is a destination-based tax on consumption of goods or services or both. Ø Central has power to levy IGST (Integrated Goods & Services tax) on inter
Discuss the validity of the statement. [ICAI Material] state supplies of goods and / or services.
Answer:- The given statement is valid. GST is a destination-based tax on Ø Central & States/UTs with state legislature, have power to levy CGST(Central

consumption of goods or services or both. GST is known as destination-based tax Goods & Services tax) & SGST (State Goods & Services tax) respectively, on
since the tax would accrue to the taxing authority which has jurisdiction over the Intra State supplies of goods/ services.
place of consumption which is also termed as place of supply. Ø UTs without legislature, have power to levy UTGST (Union Territory Goods &
For example, if A in Delhi produces the goods and sells the goods to B in Haryana. In Service tax) on Intra state supplies of Goods/ services.
this case, the tax would accrue to the State of Haryana and not to the State of Delhi.
On the other hand, under pre-GST regime, origin-based taxation was prevailing in

such cases. 05. Constitutional Amendments for GST and Article 246 & Article 269A
Under origin-based taxation, the tax used to accrue to the State from where CCP 01.05.09.00
Write a short note on various Lists provided under Seventh Schedule to the
the transaction originated. In the given case, under origin-based taxation, the central
sales tax would have been levied by Centre and collected by the State of Delhi and Constitution of India. (ICAI Material)
Answer: It contains three lists which enumerate the matters under which the
not by the State of Haryana.
Union and the State Governments have the authority to make laws.

CCP 01.03.07.00 List -I List -II List –III
Under Goods and Services Tax (GST), only value addition is taxed and burden of Union List State List Concurrent List
tax is to be borne by the final consumer. Examine the statement. [ICAI It contains the matters It contains the matters It contains the matters
Material] in respect of which the in respect of which the in respect of which both
Answer:- The statement is correct. Goods and Services Tax is a destination-based Parliament (Central State Government has the Central & State
tax on consumption of goods and services. It is levied at all stages right from Government) has the the exclusive right to Governments have power

manufacture up to final consumption with credit of taxes paid at previous stages exclusive right to make make laws to make laws.
available as setoff. Resultantly, only value addition is taxed and burden of tax is to be laws.

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CA Final GST Questioner