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Under the Goods and Service Tax Slabs, Which of the Following is the Maximum Tax Charged on Goods and Services? - Current Affairs Including General Knowledge

Question

MCQ

After two consecutive months of contraction in September and October, Goods and Services Tax (GST) collections in December (for November sales) rose over the Rs. 1-lakh crore mark, a growth of 8.9 percent year-over-year. In November too, the GST mop-up had topped Rs. 1 lakh crore, but December figures were keenly awaited since the November collections were largely attributed to higher festive sales. In December, GST collections at Rs 1,03,184 crore were marginally lower than the previous month, but rise for the second month in a row indicates improvement in revenue growth and higher compliance due to enforcement of more anti-evasion measures and a cap on input tax credit. Until December 31, as many as 81.21 lakh GSTR 3B (monthly summary returns) were filed, 4.3 percent more than 77.83 lakh in November. Also, a cap on input tax credit at 20 percent of the eligible credit for businesses effective October helped in higher collections. This cap, which was only for buyers whose suppliers did not upload invoices, prevented fraudulent claims and revenue leakage, said tax officials.

Under the Goods and Service Tax slabs, which of the following is the maximum tax charged on goods and services?

Options

  • 25%

  • 26% 

  • 27%

  • 28%

Solution

28%

Explanation:

The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18% and 28% under GST. This is aside from the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25% under GST. A total of 81% of all the goods and services fall below or in the 18% tax slab.

Concept: National Event (Entrance Exam)
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