Levy and Charge of GST: Supply, Taxable Person, CGST/SGST/IGST and Intra vs Inter-State Supplies Questions

Question 1

What is the taxable event under GST?

Accepted Answer

The taxable event under GST is **supply** of goods and/or services (concept).

Question 2

Define “taxable person” under GST (basic).

Accepted Answer

A **taxable person** is a person who is **registered** or required to be registered and is liable to pay GST under the law (concept).

Question 3

In an intra-state supply, which GST components are charged?

Accepted Answer

**CGST + SGST/UTGST** (concept).

Question 4

Inter-state supply is generally charged to IGST. (True/False)

Accepted Answer

True. **IGST** applies to **inter-state** supplies (concept).

Question 5

What is meant by “place of supply” (in one line)?

Accepted Answer

**Place of supply** is the rule-based location considered as the **destination/consumption place** for a supply, used to decide intra vs inter-state (concept).

Question 6

Imports are generally treated as inter-state supplies under GST. (True/False)

Accepted Answer

True. Imports are treated as **inter-state** supplies and generally attract **IGST** (concept).

Question 7

Explain “levy” and “charge” in GST (any three points) using a small table.

Accepted Answer

In taxation (concept):

| Term | Meaning | GST context |
|---|---|---|
| **Levy** | the law imposes/creates the tax | GST is imposed by statute |
| **Charge** | states taxable event and liability | GST is charged on **supply** by a **taxable person** |
| Liability | who pays and when | time/place/registration decide payable tax (overview) |

Write any three clear points (exam style).

Question 8

Differentiate taxable supply, exempt supply, nil-rated supply and non-GST supply (basic) using a table.

Accepted Answer

Basic distinction (concept):

| Type | Simple meaning | GST impact |
|---|---|---|
| **Taxable supply** | GST payable at applicable rate | GST charged |
| **Exempt supply** | specifically exempted | GST not charged |
| **Nil-rated** | rate is 0% under GST | tax rate 0% |
| **Non-GST** | outside GST scope | GST not applicable |

(Starter-level answer; detailed ITC effects are studied later.)

Question 9

Explain how to decide whether IGST applies (any three points) and draw a small flowchart.

Accepted Answer

IGST decision (concept):

- first confirm there is a **supply**
- determine the **place of supply** (destination)
- compare supplier location with place of supply:
  - different States/UTs → **inter-state** → **IGST**
  - same State/UT → intra-state → CGST+SGST/UTGST

Flowchart:

```text
Supply? -> Place of supply -> Same state? (Yes) CGST+SGST
                           -> Same state? (No)  IGST
```

Question 10

Write a short note on “taxable person” and why registration matters (any three points).

Accepted Answer

A **taxable person** is generally a person **registered/required to register** and liable to pay GST (concept).

Why registration matters (any three):
- enables lawful charging of GST through proper invoice (concept)
- connects outward supplies/returns and tax payments in the system
- helps claim/flow **ITC** (subject to conditions)
- ensures compliance with reporting and payment requirements

Write any three exam points with brief explanation.

Question 11

Classify the following as intra-state or inter-state supply and state which GST applies (any three points) using a table.

Accepted Answer

Use the basic rule (concept): compare supplier location with **place of supply**.

| Case (assume place of supply shown) | Classification | GST applicable |
|---|---|---|
| Supplier: Delhi; Place of supply: Delhi | **Intra-state** | **CGST + SGST/UTGST** |
| Supplier: Tamil Nadu; Place of supply: Kerala | **Inter-state** | **IGST** |
| Import into India | treated as **inter-state** | **IGST** |

Any similar three examples with correct tax are acceptable (concept).

Question 12

Why is GST called a ‘tax on supply’ and not only a tax on sale? Explain briefly (any three points) with a small table.

Accepted Answer

GST is a **tax on supply** because the levy is triggered by a broader set of transactions than just sale (concept).

Any three points:
- covers **sale** as well as other forms like transfer, barter, exchange, lease/rental, and services (concept)
- focuses on the economic activity of making goods/services available in business
- helps apply one charging concept across goods and services uniformly

| Term | Simple meaning |
|---|---|
| **Sale** | transfer of ownership of goods for price |
| **Supply** | wider term; includes sale + other forms of providing goods/services (concept) |

Question 13

Explain the levy and charge of GST with reference to supply, taxable person and intra vs inter-state supplies (exam-style) with a table.

Accepted Answer

### Meaning of levy and charge
- **Levy** means the law imposes GST.
- **Charge** means the law specifies **what triggers tax** and **who is liable** (concept).

### Charge under GST
GST is charged when there is a **supply** of goods/services by a **taxable person** (concept). After identifying supply, we decide which tax applies using place of supply.

### Table: which GST applies

| Supply classification | Basis (concept) | Tax payable |
|---|---|---|
| **Intra-state** | supplier & place of supply in same State/UT | **CGST + SGST/UTGST** |
| **Inter-state** | supplier & place of supply in different States/UTs | **IGST** |

Conclusion: GST liability is determined by supply + taxable person + place of supply rules, which decide CGST/SGST vs IGST (concept).

Question 14

Discuss the importance of place of supply in GST and how it impacts revenue and tax type (IGST vs CGST/SGST) with a flow and table.

Accepted Answer

### Why place of supply is important
GST is **destination-based**, so the law needs a rule to identify where consumption is deemed to happen. That rule is **place of supply** (concept).

### Impact on tax type
Place of supply helps decide whether a transaction is **intra-state** or **inter-state**, and therefore whether **CGST+SGST/UTGST** or **IGST** applies (concept).

| Decision | What place of supply decides |
|---|---|
| Intra vs inter | same state vs different state |
| Tax type | **CGST+SGST** vs **IGST** |
| Revenue | allocation to the correct State/UT (concept) |

Flow:

```text
Supply -> Determine place of supply -> Compare locations
      -> Same state: CGST+SGST
      -> Different state: IGST
```

Conclusion: Place of supply is central for correct tax levy and proper revenue settlement in GST (concept).

Question 15

Explain the concepts of taxable supply and exempt supply and how they affect GST chargeability (exam-style) using a comparison table.

Accepted Answer

### Meaning
- **Taxable supply**: supply on which GST is payable at an applicable rate (concept).
- **Exempt supply**: supply specifically exempted by law/notification; GST is not charged (concept).

### Comparison table

| Basis | **Taxable supply** | **Exempt supply** |
|---|---|---|
| GST charge | GST is charged | GST is not charged |
| Rate | applicable rate (could be 5/12/18/28 etc.) | exemption applies (concept) |
| Reporting | reported in returns | also reported as exempt turnover (overview) |

Conclusion: Correct classification is essential because it decides whether GST is charged and affects compliance decisions (concept).

Term	Meaning	GST context
Levy	the law imposes/creates the tax	GST is imposed by statute
Charge	states taxable event and liability	GST is charged on supply by a taxable person
Liability	who pays and when	time/place/registration decide payable tax (overview)

Levy and Charge of GST: Supply, Taxable Person, CGST/SGST/IGST and Intra vs Inter-State Supplies

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