Understanding GST: Reversal, Payable Setoff, and Reverse Charge Mechanism

The video tutorial covers GST calculations, including intrastate and interstate transactions, journal entries, and GST reversal scenarios. It explains how to calculate GST payable using input tax credit and discusses the reverse charge mechanism, highlighting its application in transactions with unregistered dealers and ecommerce operators.

What is the GST rate applied to intrastate transactions in the first question?

• 9%

• 27%

• 18%

• 36%

In the second question, what type of GST is charged for interstate sales?

• CGST

• SGST

• UGST

• IGST

When should input GST be reversed?

• When goods are sold

• When goods are purchased

• When goods are received

• When goods are returned to the seller

What is the journal entry for an intrastate sales return?

• Sales account credit, input CGST account credit, input SGST account credit to Data's account

• Sales return account credit, output CGST account credit, output SGST account credit to Data's account

• Sales account debit, input CGST account debit, input SGST account debit to Data's account

• Sales return account debit, output CGST account debit, output SGST account debit to Data's account

How is GST payable calculated?

• By adding input GST to output GST

• By subtracting input GST from output GST

• By multiplying input GST with output GST

• By dividing input GST by output GST

What is the term for the deduction of GST paid on purchases?

• Output tax credit

• GST refund

• Input tax credit

• GST rebate

Who pays the GST under the reverse charge mechanism?

• The receiver

• The government

• The e-commerce operator

• The supplier

In which scenario is reverse charge applicable?

• When the transaction is exempt from GST

• When the supplier is unregistered under GST

• When the supplier is registered under GST

• When the transaction is intrastate

What is the purpose of the reverse charge mechanism?

• To reduce tax rates

• To increase tax collection

• To simplify tax filing

• To prevent tax evasion

What are the key concepts covered in the summary section?

• GST reversal, GST payable setoff, and reverse charge mechanism

• GST filing, GST audit, and GST refund

• GST exemption, GST rebate, and GST credit

• GST registration, GST compliance, and GST payment