GST

Goods & Services Tax

Complete Exhaustive Notes — Handwritten Style

Old Regime vs New Regime (GST 2.0, eff. 22 Sept 2025)

Concepts · Terms · Acts · Council · Returns · ITC · Slabs · MCQs

1. History, Constitutional Basis & GST Council

2. CGST / SGST / IGST / UTGST explained

3. Old Tax Slabs (2017-2025): 0,5,12,18,28% + Cess

4. GST 2.0 New Slabs (from 22 Sep 2025): 0,5,18,40%

5. Item-wise Old vs New Rate Comparison

6. Registration, ITC, Composition Scheme, RCM

7. Returns (GSTR-1,3B,9...), E-way Bill, TDS/TCS

8. Glossary of every important term

9. Practice MCQs with Answer Key

Prepared for self-study · verify rate changes against latest CBIC notifications before exams
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

1. What is GST? — Meaning, History &

Background
GST (Goods and Services Tax) is a single, comprehensive, multi-stage,
destination-based indirect tax levied on every value addition in the supply of goods
and services. It replaced a long list of indirect taxes that were earlier levied
separately by the Central and State Governments, and is built on the slogan “One
Nation, One Tax, One Market”.

Key terms inside the definition

• Multi-stage — tax is collected at every stage of the supply chain: manufacture
→ wholesale → retail → final consumer.
• Value addition — tax is charged only on the value added at each stage, not on
the whole price again (this removes double taxation).
• Destination-based — tax revenue goes to the State where the goods/services
are consumed, not where they are produced.
• Indirect tax — collected by the seller from the buyer and deposited with the
government; the final burden falls on the consumer.

Timeline / History
Year Event

Vajpayee Government sets up a committee (headed by Asim Dasgupta) to

2000
design a GST model.

First official proposal for GST announced in the Union Budget (target
2006
2010).

2014 122nd Constitutional Amendment Bill introduced in Lok Sabha.

Bill passed by both Houses → becomes the 101st Constitutional

2016
Amendment Act, 2016.

CGST, IGST, UTGST and GST (Compensation to States) Acts passed by

12 Apr 2017
Parliament.

GST launched at midnight in a special session of Parliament (Central

1 Jul 2017
Hall).

1 Jul 2017 – 21
“Old GST regime”: multi-slab structure (0, 5, 12, 18, 28% + cess).
Sep 2025

3 Sep 2025 56th GST Council Meeting approves “GST 2.0” — rate rationalisation.

New / GST 2.0 regime rolled out: simplified to mainly 5% and 18%, with a
22 Sep 2025
special 40% slab.

Why was GST needed? (Defects of the earlier system)

• Cascading effect (tax on tax) — earlier, Excise Duty was charged by the Centre
and then VAT was charged by the State on top of (price + excise), so tax was
charged on tax.

-2-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

• Multiplicity of taxes — Excise Duty, Service Tax, VAT, Central Sales Tax (CST),
Entry Tax, Octroi, Luxury Tax, Entertainment Tax, Purchase Tax, etc. all
existed separately.
• No uniform rate across States — the same good could attract different VAT
rates in different States, encouraging tax arbitrage.
• Complex compliance — separate registrations, returns and assessments for
each tax, increasing cost of compliance for businesses.
• Tax barriers at State borders — check-posts for Entry Tax/Octroi delayed
movement of goods across States.

Taxes subsumed (merged) under GST

Subsumed at Centre level Subsumed at State level

Central Excise Duty State VAT / Sales Tax

Duties of Excise (Medicinal & Toilet

Central Sales Tax (CST)
Preparations)

Additional Duties of Excise (Goods of

Entry Tax / Octroi / Local Body Tax
Special Importance)

Additional Duties of Customs (CVD) Luxury Tax

Entertainment Tax (except that levied by

Special Additional Duty of Customs (SAD)
local bodies)

Taxes on advertisements, lotteries, betting

Service Tax
& gambling

Central surcharges and cesses on supply of

Purchase Tax
goods/services

Note:
Basic Customs Duty, Stamp Duty, Property Tax, Excise on alcohol for human
consumption, and tax on petroleum products (petrol, diesel, ATF, natural gas, crude) are
kept outside GST (petroleum is meant to be brought under GST later by Council
decision).

-3-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

2. Constitutional Basis & the GST Council

101st Constitutional Amendment Act, 2016
• Inserted Article 246A — gives Parliament and State Legislatures concurrent
power to make laws on GST (Centre has exclusive power only for inter-State
trade/IGST).
• Inserted Article 269A — deals with levy and collection of IGST on inter-State
trade/commerce, apportioned between Centre and States.
• Inserted Article 279A — provides for constitution of the GST Council.
• Amended Article 366 — added definition of “Goods and Services Tax”
(366(12A)) as tax on supply of goods or services or both, except tax on alcohol
for human consumption.
• Amended the Seventh Schedule (Union, State, Concurrent lists) to reflect GST
powers.

GST Council (Article 279A)

Composition
Chairperson: Union Finance Minister. Members: Union Minister of State for Finance +
Finance/Taxation Minister of every State. Headquartered in New Delhi. Secretariat: GST
Council Secretariat.

• Quorum: 50% of total members.

• Voting: every decision needs at least 3/4th majority of weighted votes cast —
Centre's vote counts as 1/3rd of total votes, and all States together count as
2/3rd.
• Functions: recommends rates, exemptions, threshold limits, model GST laws,
place/time/value of supply rules, special provisions for special-category States,
and resolves disputes.
• It is the GST Council (not Parliament alone) that approves rate changes — e.g.
GST 2.0 was approved in the 56th GST Council Meeting (3 September 2025)
and implemented from 22 September 2025.

Dual GST Model

India follows a Dual GST model (like Canada/Brazil) because of its federal
structure — both the Centre and the States simultaneously levy tax on the same
taxable transaction of supply of goods/services, but on the same value/base, so the
total combined burden stays equal to a single rate.

-4-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

3. Types / Components of GST

Depending on whether a supply happens within a State or between two
States/UTs, GST is collected under one of four heads:

Type Full form Levied by Applies when

Intra-State (within same

CGST Central GST Central Govt.
State) supply

Intra-State (within same

SGST State GST State Govt.
State) supply

Intra-UT supply (UTs

UTGST Union Territory GST Union Territory without legislature, e.g.
Chandigarh, Lakshadweep)

Central Govt. (then Inter-State supply +

IGST Integrated GST apportioned to Imports + Exports
destination State) (zero-rated)

Worked example

Intra-State sale
A dealer in Srinagar (J&K;) sells goods worth ₹1,00,000 to a buyer in Srinagar at 18%
GST → CGST = 9% = ₹9,000 and SGST = 9% = ₹9,000. Total tax = ₹18,000, split equally
between Centre and J&K; UT (here UTGST applies since J&K; is a UT).

Inter-State sale
A dealer in Delhi sells goods worth ₹1,00,000 to a buyer in Mumbai at 18% GST → IGST
= 18% = ₹18,000, collected by the Centre and then apportioned to the destination State
(Maharashtra) since GST is a destination-based tax.

Rule of thumb: CGST + SGST/UTGST = IGST rate, for the same goods/service.

-5-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

4. The “Old” GST Regime (1 July 2017 — 21

September 2025)
From launch in 2017 till 21 September 2025, GST in India operated on a multi-slab
structure with four main rate slabs plus a few special/niche rates, and an
additional GST Compensation Cess on luxury and “sin” goods.

Slab Typical goods/services covered

Fresh fruits & vegetables, milk, curd, unbranded foodgrains, books, fresh
0% (Nil)
meat/fish, education and healthcare services (basic), salt, bangles, etc.

Packaged food items, edible oils, spices, coal, life-saving drugs (some),
5% small restaurants (non-AC, no ITC), footwear below ₹1000, economy class
air travel.

Processed food, business class air travel, mobile phones, ayurvedic

12% medicines, umbrellas, sewing machines, ready-made garments (in some
bands).

Most goods & services (“standard rate”) — soaps, toothpaste, hair oil,
18% capital goods, industrial intermediaries, IT services, telecom, financial
services, restaurants (AC).

Luxury & demerit/sin goods — cars, motorcycles (large engine), ACs,

28% refrigerators, washing machines, cement, tobacco, pan masala, aerated
drinks, 5-star hotel stay.

Special niche rates for gold, silver, precious & semi-precious stones,
3% / 0.25%
diamonds (continued even after GST 2.0).

GST Extra levy (over and above 28%) on luxury cars, tobacco, pan masala,
Compensation aerated/caffeinated drinks, coal — collected to compensate States for
Cess revenue loss during GST transition.

Drawbacks of the old multi-slab system

• Classification disputes — e.g. the famous “popcorn case” where the same
product attracted 5%, 12% or 18% depending on packaging/branding/flavour,
leading to litigation.
• Inverted duty structure — raw materials/inputs taxed higher than the finished
product in some sectors (e.g. textiles, footwear, fertilisers), blocking working
capital in unutilised Input Tax Credit and delaying refunds.
• Compliance complexity — businesses had to track which of 5+ rates applied to
each product/service (HSN-wise), increasing litigation and administrative cost.
• High tax on essentials — items like cement (28%) and individual health/life
insurance (18%) were taxed heavily despite wide use.

-6-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

5. The “New” Regime — GST 2.0 (effective 22

September 2025)
In one line:
GST 2.0 is the biggest rate-rationalisation reform since GST's 2017 launch, approved by
the 56th GST Council Meeting (3 September 2025) and rolled out from 22 September
2025, replacing the old 0/5/12/18/28% structure with a simplified two main slabs (5% &
18%) + a special 40% slab for luxury/sin goods.

Slab Description / typical coverage

Daily essentials, fresh food, life-saving drugs/medicines (33

0% (Nil) specified drugs), educational services, individual life & health
insurance (now exempted).

Packaged food, daily-use FMCG (soap, shampoo, toothpaste, hair

5% (“Merit rate”) oil), agricultural equipment, healthcare-related items, footwear,
small cars/two-wheelers in some categories, fertilisers.

Most goods and services — consumer electronics (AC, TV, fridge,

18% (“Standard
washing machine), cement, small cars, motorcycles, telecom,
rate”)
financial & IT services, restaurants.

Luxury items and “sin” goods — premium/luxury cars, pan masala,

40% (Special/Demerit
tobacco products, aerated & caffeinated beverages — replaces the
rate)
old 28% + compensation cess combination.

3% / 0.25%
Gold, silver, diamonds and precious/semi-precious stones continue
(unchanged niche
at these special legacy rates.
rates)

Phased out for most goods from 22 Sep 2025; continues only on
tobacco, pan masala, gutkha, cigarettes, bidi etc. until loan &
Compensation Cess
interest obligations under the cess account are fully discharged,
after which they too migrate to the 40% slab.

What got cheaper vs costlier under GST 2.0

Cheaper (rate cut) Same (no change) Costlier (rate hike)

Basic daily essentials

Individual health & life
already at 0% (milk, bread, Luxury & premium cars
insurance (now Nil)
vegetables)

Most 18%-rated services

Daily essentials: hair oil, (restaurants, banking, Tobacco, pan masala,
soap, shampoo, toothpaste telecom, education already gutkha, cigarettes
exempt)

Packaged food items,

Aerated & caffeinated
footwear, small
beverages
cars/2-wheelers

Household appliances: AC,

High-end “sin” / demerit
TV, fridge, washing machine
goods generally
(28%→18%)

-7-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

Cheaper (rate cut) Same (no change) Costlier (rate hike)

Cement (28%→18%),
agricultural equipment,
medicines

Why GST 2.0 was brought in

• Rate simplification — fewer slabs means cleaner classification and fewer
disputes.
• Compliance ease — auto-populated returns, AI-driven invoice matching, faster
refund processing.
• Economic alignment — lower tax on mass-consumption goods to boost
household consumption; higher tax on luxury/demerit goods for social equity
and revenue balance.
• Boost to key sectors — real estate, agriculture, automobiles, FMCG, and
consumer durables expected to benefit from lower rates.

Caution for exams:

Always check the latest CBIC/GST Council notification before an exam date — specific
item-to-slab mapping (HSN-wise) can be revised by further notifications, and
tobacco-related items are on a special transitional timeline.

-8-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

6. Old Regime vs New Regime (GST 2.0) —

Side-by-Side
New Regime / GST 2.0 (from
Feature Old Regime (2017–2025)
22 Sep 2025)

Number of main 4 main slabs: 5%, 12%, 18%,

2 main slabs: 5%, 18%
slabs 28%

40% special slab for luxury/sin

Special slab None (only Cess on top of 28%)
goods

Expanded — includes individual

Exempt (Nil) goods Limited list life/health insurance, more
medicines

3% & 0.25% Continue unchanged at 3% &

Niche legacy rates
(gold/silver/diamonds) 0.25%

Phased out for most items;

Charged on luxury/sin goods
Compensation Cess continues only on tobacco-class
over 28%
goods till loan dues are cleared

Existed (processed food, Abolished — most items moved to

12% slab
garments, etc.) 5% or 18%

Existed (cars, ACs, cement, Abolished — most items moved to

28% slab
etc.) 18%; luxury items moved to 40%

Classification Frequent (e.g., multi-rate

Reduced due to fewer slabs
disputes popcorn dispute)

Effective date 1 July 2017 22 September 2025

GST Council (pre-launch 56th GST Council Meeting, 3

Approved by
deliberations) September 2025

Important transitional rules (old → new)

• GST rate applicable is normally the rate on the date of supply (time of supply
rules), not the date of order/payment — so invoices straddling 22 Sep 2025
needed careful handling.
• A mere rate reduction does not automatically require reversal of Input Tax
Credit (ITC) already availed — ITC reversal is required only where a supply has
become fully exempt from 22 September 2025.
• Businesses had to update billing/ERP systems, HSN-to-rate mapping, MRP
labels (legal metrology compliance), and review long-term contracts/AMC
agreements for the new rates.
• Late filing of returns continues to attract late fees and interest exactly as under
the old law — procedural/compliance law did not change, only rates did.

-9-
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

7. GST Registration
Threshold limits for compulsory registration (turnover
based)
Special Category
Category Normal Category States
States*

Supplier of goods ₹40 lakh ₹20 lakh

Supplier of services ₹20 lakh ₹10 lakh

*Special category States (as per GST law) include several North-Eastern and hill States such as
Manipur, Mizoram, Nagaland, Tripura, Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand,
etc. — they get a lower threshold to ease compliance for small local businesses.

Compulsory registration regardless of turnover

• Persons making any inter-State taxable supply.
• Casual taxable persons making taxable supply (e.g., occasional exhibition
stalls).
• Persons required to pay tax under Reverse Charge Mechanism (RCM).
• Non-resident taxable persons.
• Persons required to deduct TDS or collect TCS under GST.
• E-commerce operators and persons supplying through an e-commerce
platform.
• Input Service Distributors (ISD).

GSTIN — GST Identification Number

Structure (15 characters)
2 digits — State code (as per Census 2011) + 10 characters — PAN of the business + 1
digit — entity/registration number for that PAN in that State + 1 digit — the letter ‘Z’ by
default + 1 digit — checksum/check code.

- 10 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

8. Input Tax Credit, Reverse Charge &

Composition Scheme
Input Tax Credit (ITC)
ITC is the credit of GST already paid on purchases (inputs, input services, capital
goods) that a registered taxpayer can use to set off against the GST payable on his
outward supplies (sales). This is the mechanism that prevents the cascading
(tax-on-tax) effect.

• Conditions to claim ITC: possession of a valid tax invoice, goods/services

actually received, tax actually paid to government by the supplier, and the
relevant return (GSTR-3B) filed.
• ITC is not available on items in the “blocked credit” list (e.g. motor vehicles for
personal use, food & beverages, club memberships, works contract for
immovable property in most cases) under Section 17(5) of the CGST Act.
• Matching of ITC happens via auto-drafted statement GSTR-2B.

Reverse Charge Mechanism (RCM)

Normally, the supplier collects GST from the buyer and pays it to the government.
Under RCM, this liability is reversed — the recipient (buyer) of goods/services has
to pay GST directly to the government, instead of the supplier. Applies, for
example, to supplies by an unregistered person to a registered person (in specified
cases), import of services, and a specified list of goods/services (e.g. legal services
from an advocate, GTA services, etc.).

Composition Scheme
Who can opt
Small taxpayers with turnover up to ₹1.5 crore (goods; ₹75 lakh for special category
States) or up to ₹50 lakh (services, under the separate composition scheme for services)
can opt to pay GST at a small fixed % of turnover instead of the regular rate.

• Composition dealers cannot collect GST from customers and cannot claim ITC
on purchases.
• Pay tax at nominal rates — commonly 1% (traders), 1.5% (manufacturers, after
relief), 5% (restaurants not serving alcohol), 6% (service providers under the
special composition scheme).
• File a simplified quarterly statement-cum-payment (CMP-08) and an annual
return (GSTR-4) instead of monthly returns.
• Not available to inter-State suppliers, e-commerce suppliers, or manufacturers
of certain notified goods (e.g. ice-cream, pan masala, tobacco).

- 11 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

9. GST Returns — Forms Glossary

Form Purpose Frequency

Monthly / Quarterly
GSTR-1 Statement of outward supplies (sales)
(QRMP scheme)

GSTR-2B Auto-drafted, static ITC statement for the recipient Monthly

Summary self-assessed return of sales, ITC and tax

GSTR-3B Monthly / Quarterly
payment

GSTR-4 Annual return for Composition taxpayers Annually

Quarterly statement-cum-challan for Composition

CMP-08 Quarterly
taxpayers

GSTR-5 Return for Non-Resident foreign taxable persons Monthly

GSTR-6 Return for Input Service Distributor (ISD) Monthly

GSTR-7 Return for persons deducting TDS under GST Monthly

GSTR-8 Return for E-commerce operators collecting TCS Monthly

GSTR-9 Annual Return for regular taxpayers Annually

Reconciliation Statement (self-certified) for

GSTR-9C Annually
taxpayers above prescribed turnover

Final Return (on cancellation/surrender of Once, on

GSTR-10
registration) cancellation

Return for persons having a Unique Identity Number

GSTR-11 Monthly
(UIN) — e.g. UN bodies, embassies

E-way Bill
An E-way Bill (Electronic Way Bill) is a document required for the movement of
goods worth more than ₹50,000 (single invoice/consignment value), generated
electronically on the e-way bill portal. It contains details of the goods, consignor,
consignee and transporter, and helps track movement of goods to curb tax
evasion.

TDS & TCS under GST

• TDS (Tax Deducted at Source): notified government departments/agencies
must deduct 2% GST TDS while making payment to a supplier, where the
contract value exceeds ₹2.5 lakh.
• TCS (Tax Collected at Source): e-commerce operators must collect 0.5% TCS
on the net value of taxable supplies made through their platform by other
suppliers (raised from 1% to the current effective rate after the 9 July 2024
amendment to GST law).

- 12 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

10. Glossary — Every Important Term, Explained

Term Meaning

Central Goods and Services Tax — levied by the Centre on intra-State

CGST
supply.

State Goods and Services Tax — levied by the State on intra-State

SGST
supply.

Union Territory GST — levied in UTs without their own legislature

UTGST
(e.g. Chandigarh).

Integrated GST — levied by the Centre on inter-State supply and

IGST
imports; equals CGST+SGST combined rate.

15-digit, PAN-based unique registration number allotted to every

GSTIN
GST-registered taxpayer.

Harmonized System of Nomenclature — internationally accepted

HSN Code
numeric code used to classify GOODS for tax rate purposes.

Services Accounting Code — numeric code used to classify SERVICES

SAC Code
for tax rate purposes.

Input Tax Credit — credit for GST already paid on purchases, usable
ITC
to offset GST payable on sales.

Reverse Charge Mechanism — recipient (instead of supplier) pays

RCM
GST directly to government.

Composition Simplified scheme for small taxpayers to pay GST at a low fixed % of
Scheme turnover, without ITC.

Exports and supplies to SEZ — taxed at 0%, but the supplier CAN still
Zero-rated supply
claim ITC (unlike normal exempt supply).

Supply on which no GST is charged AND no ITC can be claimed on

Exempt supply
related inputs.

Nil-rated supply Supply that is specifically notified at a 0% GST rate.

Items kept entirely outside GST law (e.g. petrol, diesel, alcohol for
Non-GST supply
human consumption).

The point in time when GST liability arises (used to decide which rate
Time of Supply
applies, especially during a rate change).

Determines whether a transaction is intra-State (CGST+SGST) or

Place of Supply
inter-State (IGST).

Compensation Extra levy on luxury/sin goods, originally to compensate States for

Cess revenue loss for 5 years after GST launch.

Input Service An office of a business that receives invoices for input services and
Distributor (ISD) distributes the ITC to its branches.

Casual Taxable A person who occasionally supplies goods/services in a State where

Person they have no fixed place of business (e.g. at an exhibition).

- 13 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

Term Meaning

Non-Resident A foreign person/business making taxable supply in India without a

Taxable Person fixed place of business here.

Electronic document required for movement of goods worth more

E-way Bill
than ₹50,000.

Constitutional body (Article 279A) that recommends GST rates,

GST Council
exemptions and rules.

Central Board of Indirect Taxes and Customs — apex body

CBIC
administering GST/Customs at the Central level.

Legal requirement that businesses must pass on the benefit of any

Anti-profiteering
rate cut or extra ITC to consumers via lower prices.

Inverted Duty Situation where tax rate on inputs is higher than on the
Structure output/finished product, leading to accumulated ITC.

Unique Identity Number — given to specialised agencies like UN

UIN
bodies/embassies for claiming GST refunds.

Quarterly Return Monthly Payment — lets small taxpayers (turnover

QRMP Scheme
up to ₹5 crore) file GSTR-1/3B quarterly while paying tax monthly.

System where B2B invoices above a notified turnover threshold must

E-invoicing be electronically authenticated by the GST portal (IRP) with a unique
Invoice Reference Number (IRN).

- 14 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

11. Offences, Penalties & Other Important

Points
• Penalty for not registering when liable: 10% of tax due (minimum ₹10,000), or
100% of tax due if it is a deliberate evasion.
• Interest on late payment of tax: 18% per annum on the tax amount.
• Interest on excess/wrongly claimed ITC: 24% per annum.
• Late fee for late filing of returns: ₹50 per day (₹25 CGST + ₹25 SGST) for
normal returns; ₹20 per day (₹10+₹10) for Nil returns, subject to a maximum
cap.
• GST is destination-based — unlike the earlier origin-based CST, so revenue
accrues to the consuming State.
• GSTN (Goods and Services Tax Network) is the IT backbone — a non-profit,
non-government company that manages the common GST portal (registration,
returns, payments).

- 15 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

12. Practice MCQs (with Answer Key)

1. GST was launched in India with effect from:
(a) 1 April 2017
(b) 1 July 2017
(c) 1 January 2017
(d) 1 July 2016
Answer: (b) 1 July 2017

2. GST is based on which Constitutional Amendment Act?

(a) 99th
(b) 100th
(c) 101st
(d) 102nd
Answer: (c) 101st Amendment Act, 2016

3. Which Article provides for the GST Council?

(a) Article 246A
(b) Article 269A
(c) Article 279A
(d) Article 286
Answer: (c) Article 279A

4. Who is the Chairperson of the GST Council?

(a) President of India
(b) RBI Governor
(c) Union Finance Minister
(d) Cabinet Secretary
Answer: (c) Union Finance Minister

5. What majority of weighted votes is required for a GST Council decision?

(a) 1/2
(b) 2/3
(c) 3/4
(d) Unanimous
Answer: (c) 3/4th of weighted votes cast

6. In the GST Council's weighted voting, the Centre's vote counts as:
(a) 1/4th
(b) 1/3rd
(c) 1/2
(d) 2/3rd
Answer: (b) 1/3rd (States together hold 2/3rd)

7. IGST is levied on:

(a) Intra-State supply only
(b) Inter-State supply and imports
(c) Exports only
(d) None of the above
Answer: (b) Inter-State supply and imports

8. Which tax is NOT subsumed under GST?

(a) Service Tax
(b) Central Excise Duty
(c) State VAT

- 16 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

(d) Stamp Duty

Answer: (d) Stamp Duty (kept outside GST)

9. GST 2.0 (new slab structure) became effective from:

(a) 1 April 2025
(b) 3 September 2025
(c) 22 September 2025
(d) 1 January 2026
Answer: (c) 22 September 2025 (approved on 3 Sept 2025 in 56th Council
meeting)

10. Under GST 2.0, the main GST slabs are:

(a) 5%, 12%, 18%, 28%
(b) 5% and 18% (+ special 40%)
(c) 10% and 20%
(d) 6%, 12%, 18%
Answer: (b) 5% and 18%, with a special 40% slab for luxury/sin goods

11. Which slab was abolished under GST 2.0?

(a) 0% and 5%
(b) 12% and 28%
(c) 18% only
(d) 40% only
Answer: (b) 12% and 28% (items moved mostly to 5%/18%, luxury items to
40%)

12. The threshold limit for compulsory GST registration for a supplier of
goods (normal category States) is:
(a) ₹10 lakh
(b) ₹20 lakh
(c) ₹40 lakh
(d) ₹1 crore
Answer: (c) ₹40 lakh

13. A registered person under the Composition Scheme can:

(a) Collect GST from customers and claim ITC
(b) Neither collect GST nor claim ITC
(c) Claim ITC only
(d) Collect GST only
Answer: (b) Neither collect GST from customers nor claim ITC

14. E-way Bill is mandatory for movement of goods valued above:

(a) ₹10,000
(b) ₹25,000
(c) ₹50,000
(d) ₹1,00,000
Answer: (c) ₹50,000

15. Under Reverse Charge Mechanism (RCM):

(a) Supplier pays tax
(b) Recipient pays tax directly to government
(c) No tax is payable
(d) Government waives the tax
Answer: (b) Recipient pays tax directly to the government

- 17 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

16. GSTR-3B is filed:

(a) Annually only
(b) As a summary self-assessed return, monthly/quarterly
(c) Only by composition dealers
(d) Only by exporters
Answer: (b) As a summary self-assessed return, monthly/quarterly

17. Which body manages the common GST IT portal?

(a) CBIC
(b) GSTN
(c) RBI
(d) SEBI
Answer: (b) GSTN (Goods and Services Tax Network)

18. Compensation Cess under GST 2.0 continues mainly on:

(a) Cement
(b) Tobacco/pan masala class goods
(c) Mobile phones
(d) Footwear
Answer: (b) Tobacco/pan masala class goods (till loan & interest dues are
cleared)

19. Which of these remains OUTSIDE the scope of GST?

(a) Restaurant services
(b) Petrol and diesel
(c) Mobile phones
(d) Cement
Answer: (b) Petrol and diesel (along with alcohol for human consumption)

20. “Zero-rated supply” under GST refers to:

(a) Exempt supply with no ITC
(b) Exports/SEZ supply taxed at 0% but ITC is allowed
(c) Supply with no GSTIN required
(d) Supply by Composition dealer
Answer: (b) Exports/SEZ supply — taxed at 0% but ITC IS allowed (unlike
ordinary exempt supply)

- 18 -
GST — Goods & Services Tax : Complete Notes Exam Prep — JKSSB / SSC / UPSC

Quick Revision — One Page Summary

Old regime (2017–2025)
0%, 5%, 12%, 18%, 28% + Compensation Cess on luxury/sin goods. 4 main slabs.
Frequent classification disputes.

New regime / GST 2.0 (from 22 Sep 2025)

0%, 5%, 18% + special 40% slab for luxury/sin goods. Niche 3%/0.25% on
gold-silver-diamonds unchanged. Cess phased out except on tobacco class goods.
Approved in 56th GST Council Meeting (3 Sep 2025).

Remember
GST = Destination-based, multi-stage, value-added, indirect tax. Constitutional basis:
101st Amendment Act, 2016 (Articles 246A, 269A, 279A). Launched 1 July 2017. Council
headed by Union Finance Minister; decisions need 3/4th weighted majority.

- 19 -