Set – 1

Ans 2.

Objectives and Features of Indirect Taxation

Indirect taxation refers to the levy of taxes on goods and services, where the tax burden is indirectly passed on to the end consumer. Unlike direct taxes, which are paid directly to the government by the individual or entity, indirect taxes are collected by intermediaries such as manufacturers or retailers and remitted to the government. The system of indirect taxation serves multiple objectives and is characterized by unique features that distinguish it from other

3. Distinguish Mixed and Composite Supply, explain taxation thereon and illustrate with a few transactions

Ans 3.

Mixed and Composite Supply and Taxation Thereon

The Goods and Services Tax (GST) framework recognizes the concepts of mixed and composite supplies, both of which are relevant in scenarios where multiple goods or services are bundled together. Understanding the distinction between the two is crucial for determining the appropriate taxation rates and compliance requirements.

Distinction Between Mixed and Composite Supply

A composite supply refers to a situation where two or more goods or services are naturally b

Set – 2

4. Customs duty is exempt or excluded in certain scenarios. Analyse the various situations

Ans 4.

Situations Where Customs Duty is Exempt or Excluded

Customs duty, levied on the import and export of goods, plays a pivotal role in regulating international trade and generating revenue for the government. However, certain situations warrant an exemption or exclusion from customs duty, either to promote specific economic activities or to align with international obligations. These exemptions are typically provided u

5a. Describe salient features of Job work. Who is a job worker and principal  

5b. Discuss period of retention of accounts and records. Analyse consequences of non maintenance of records under GST    

Ans 5

1. Salient Features of Job Work: Role of Job Worker and Principal

Job work refers to the processing or treatment undertaken by one person (the job worker) on goods belonging to another person (the principal). Under GST, job work holds special significance as it allows businesses to outsource certain stages of production while maintaining tax efficiency.

The principal feature of job work is the involvement of two distinct entities: the principal and the job worker. The principal is the owner of the goods who sends them for processing, whereas

1. Period of Retention of Accounts and Records Under GST and Consequences of Non-Maintenance

The GST Act mandates the maintenance of detailed accounts and records to ensure transparency and compliance. Every registered taxpayer is required to retain these records for a specific period to facilitate audits, assessments, and investigations.

The standard retention period under GST is six years from the end of the financial year to which t

6. Candy Blue Limited., Mumbai, a registered supplier, is manufacturing Chocolates and Biscuits. It provides the following details of taxable inter-¬‐state supply made by it for the month of October, 2024