Top 20 GST Interview Questions and Answers

GST has transformed India’s indirect tax system, making it critical for professionals in accounting, finance, and taxation to understand it very well. Whether you're a fresher or experienced, preparing for GST interview questions is key to job success. This article covers the top 20 GST Interview Questions and answers that will help you excel. To strengthen your knowledge, consider enrolling in a GST Course.

Top 20 GST Interview Questions and Answers

1. What is GST?
solution: GST stands for goods and services Tax. It's by far a comprehensive, multi-stage, destination-based indirect tax levied on each value addition. It replaced multiple indirect taxes like VAT, service tax, and excise duty.

2. What are the types of GST in India?
solution: The 4 types of GST are:

• CGST: Central goods and services Tax
• SGST: State goods and services Tax
• IGST: Incorporated goods and services Tax
• UTGST: Union Territory goods and services Tax

3. What is the GST threshold limit for registration?
solution: The threshold limit varies by country and business type. For goods, it is ₹40 lakhs (₹20 lakhs for special class states), and for services, it is ₹20 lakhs (₹10 lakhs for special class states).

4. What is GSTIN?
solution: GSTIN stands for Goods and Services Tax Identification Number. It is a unique 15-digit registration number assigned to each GST-registered business.

5. What is the meaning of Input Tax credit (ITC)?
solution: ITC means claiming credit for the GST paid on purchases to reduce the GST payable on sales. only registered taxpayers can claim ITC under GST.

6. What are exempted goods and services under GST?
solution: Exempted goods/services are those not subject to GST. Examples include fresh fruits, vegetables, education services, and healthcare services.

7. What is a Composition Scheme in GST?
solution: The Composition Scheme allows small taxpayers to pay GST at a fixed fee on turnover without claiming input tax credit. It simplifies compliance for businesses with a turnover of as much as ₹1.5 crore.

8. What is the difference between IGST and CGST/SGST?
solution: CGST and SGST are levied on intra-state supplies (within the same state), while IGST is levied on inter-state supplies (between states).

9. What are HSN and SAC codes in GST?
solution: HSN (Harmonized System of Nomenclature) is used for items, and SAC (Services Accounting Code) is used for services to classify them under GST for tax rates and compliance.

10. What is GSTR-1?
solution: GSTR-1 is a monthly or quarterly return filed by registered taxpayers to report outward supplies (sales) of goods and services.

11. What's GSTR-3B?
solution: GSTR-3B is a self-declaration summary return to report outward and inward supplies, ITC, and tax charges. It must be filed monthly.

12. What is the Reverse Charge Mechanism (RCM)?
solution: Under RCM, the recipient of goods/services is liable to pay GST instead of the supplier. It applies in precise cases such as services from unregistered dealers.

13. How is GST paid?
answer: GST is paid through challans on the GST portal using cash ledger, credit ledger, or through banks using NEFT/RTGS or cards.

14. What is the penalty for late filing of GST returns?
solution: A late charge of ₹50 per day (₹25 CGST + ₹25 SGST) is charged. For nil returns, the penalty is ₹20 in line with day (₹10 + ₹10). interest at 18% p.a. is also applicable on late payment of tax.

15. Can input Tax credit be claimed on all purchases?
solution: No. ITC cannot be claimed on items like motor cars (unless used for business), personal expenses, and goods/services used for exempt supplies.

16. What is an e-way bill under GST?
solution: An e-way invoice is a file required for the movement of goods worth more than ₹50,000. It ensures tax compliance and helps reduce tax evasion.

17. How does GST affect pricing and price structures?
solution: GST eliminates the cascading of taxes, leading to lower production costs and ultimately reducing charges for consumers. It also promotes transparency and efficiency.

18. What are the benefits of GST for companies?
solution:

• Simplified tax structure
• Seamless flow of ITC
• Reduced tax compliance burden
• Enhanced logistics and supply chain efficiency

19. What are GST returns, and how many types exist?
solution: GST returns are bureaucracy filed to offer tax authorities with details of income, purchases, sales, and tax liabilities. common returns include GSTR-1, GSTR-3B, GSTR-four, GSTR-nine, and GSTR-9C.

20. What steps may be taken to ensure GST compliance?
solution:

• Well-timed registration and submitting of returns
• Maintaining accurate records
• Proper category of goods/services
• Staying updated via a GST, Income Tax, or Accounting course.

How to prepare for GST Interviews
Given the wide implementation of GST in all sectors, interviewers count on a candidate to have in-depth know-how of GST provisions and compliance. Many companies prioritize applicants who have finished GST, specialized Accounting, and Taxation course, as these indicate practical knowledge and readiness for actual-world scenarios.

• Enrolling in those courses can help you:
• Understand the GST framework in detail
• Research return filing with hands-on tools
• Prepare documents as per GST norms
• Live updates on rule changes

Final thoughts
Mastering these top 20 GST Interview Questions and answers will prepare you for interviews and help boost your confidence. whether you're applying for roles in finance, accounting, or taxation, a strong grasp of GST fundamentals is essential. stay updated, stay compliant, and step into your next interview with confidence!