Preparing for top GST questions for job interviews is essential for anyone aspiring to work in accounting, taxation, finance, or compliance roles in India. Since the implementation of Goods and Services Tax (GST), companies expect candidates to have not only theoretical clarity but also practical understanding of registrations, returns, input tax credit, compliance timelines, and common problem areas. Interviewers increasingly focus on scenario-based GST questions rather than textbook definitions.
This detailed guide covers the most frequently asked GST interview questions, explained with facts, figures, examples, and professional insights. The content is structured to help freshers, accountants, tax executives, and experienced professionals confidently face GST-related interviews.
Why Interviewers Focus on GST Knowledge
GST is one of the most significant tax reforms in India. It subsumed more than 17 indirect taxes and unified the indirect tax structure. For employers, GST knowledge is not optional; it directly impacts compliance, cash flow, audits, and statutory filings.
Interviewers evaluate:
- Conceptual clarity
- Practical compliance exposure
- Accuracy in return filing knowledge
- Understanding of real-world GST challenges
Core GST Concepts Interviewers Expect You to Know
1. What is GST and why was it introduced?
GST is a destination-based indirect tax levied on the supply of goods and services. It replaced multiple central and state taxes such as excise duty, service tax, VAT, octroi, and entry tax.
Key objectives of GST:
- Eliminate cascading effect of taxes
- Create a unified national market
- Improve tax compliance through digitization
- Increase transparency
Fact: GST follows the principle of “one nation, one tax,” though rates vary by category.
2. Types of GST in India
| Type of GST | Meaning |
|---|---|
| CGST | Central GST collected by the Central Government |
| SGST | State GST collected by the State Government |
| IGST | Integrated GST on inter-state supplies |
| UTGST | GST applicable in Union Territories |
Interview Tip: Always mention that CGST and SGST are charged together on intra-state supplies, while IGST applies to inter-state transactions.
Top GST Questions for Job Interviews (Most Frequently Asked)
3. What is the GST registration threshold limit?
| Category | Threshold Limit |
|---|---|
| Goods suppliers (normal states) | ₹40 lakh |
| Service providers | ₹20 lakh |
| Special category states | ₹10–20 lakh |
Important Point: E-commerce sellers and inter-state suppliers usually require compulsory registration regardless of turnover.
4. What is Input Tax Credit (ITC)?
Input Tax Credit means the credit of GST paid on purchases that can be adjusted against GST payable on sales.
Conditions to claim ITC:
- Valid tax invoice
- Goods or services received
- Tax paid to government by supplier
- Return filed by recipient
Fact: Blocked credits under GST include motor vehicles (with exceptions), personal expenses, and food & beverages in most cases.
5. Difference between GSTR-1 and GSTR-3B
| Return | Purpose |
|---|---|
| GSTR-1 | Details of outward supplies |
| GSTR-3B | Summary return with tax payment |
Interview Insight: GSTR-3B is a self-declared return, while GSTR-1 feeds data into recipients’ ITC through auto-population.
Advanced GST Interview Questions (For Experienced Candidates)
6. What is Reverse Charge Mechanism (RCM)?
Under RCM, the liability to pay GST shifts from the supplier to the recipient of goods or services.
Common RCM examples:
- Legal services by advocate
- Goods transport agency services
- Specified notified supplies
Practical Tip: Under RCM, ITC can be claimed only after payment of tax in cash.
7. What is GST composition scheme?
The composition scheme is designed for small taxpayers to reduce compliance burden.
| Feature | Composition Scheme |
|---|---|
| Maximum turnover | ₹1.5 crore (₹75 lakh for special states) |
| Tax rate | 1%–6% depending on category |
| ITC eligibility | Not allowed |
Important: Composition dealers cannot collect GST from customers.
8. What is e-invoicing under GST?
E-invoicing requires eligible businesses to generate invoices through the Invoice Registration Portal (IRP).
Key facts:
- Mandatory for businesses above notified turnover limits
- Generates IRN (Invoice Reference Number)
- Reduces fake invoicing and tax evasion
Compliance and Practical GST Questions
9. What are GST return due dates?
| Return | Due Date |
|---|---|
| GSTR-1 (monthly) | 11th of next month |
| GSTR-3B | 20th of next month |
| GSTR-9 | 31st December following the financial year |
Interview Note: Late fees and interest apply automatically for delayed filings.
10. What is GST audit and who is required to conduct it?
GST audit involves examination of records to verify turnover, taxes paid, and ITC claimed.
Current Status: Mandatory GST audit by CA/CMA has been removed, but departmental audits continue.
Common GST Scenario-Based Interview Questions
11. How is GST calculated on inter-state supply?
Inter-state supply attracts IGST, calculated on transaction value including:
- Price of goods/services
- Incidental expenses
- Taxes other than GST
12. What happens if GST is paid under wrong head?
If CGST and SGST are paid instead of IGST (or vice versa), adjustment is allowed without interest, subject to prescribed procedure.
Mistakes Candidates Make in GST Interviews
- Confusing GSTR-2A with GSTR-2B
- Claiming ITC without eligibility
- Ignoring compliance timelines
- Not understanding real-life GST scenarios
How to Prepare GST for Job Interviews Effectively
- Study practical GST cases
- Practice calculation-based questions
- Understand recent compliance changes
- Focus on ITC reconciliation
FAQ: Top GST Questions for Job Interviews (Featured Snippet Optimized)
1. What are the most important GST questions asked in interviews?
The most common GST interview questions focus on GST basics, types of GST, ITC, GST returns, registration limits, and compliance procedures.
2. Is GST knowledge mandatory for accounting jobs?
Yes, GST knowledge is essential for accounting, finance, taxation, and compliance roles in India.
3. What level of GST knowledge is required for freshers?
Freshers should understand GST basics, returns, ITC, and registration concepts clearly.
4. How can I explain GST simply in an interview?
GST can be explained as a destination-based indirect tax that replaced multiple indirect taxes to simplify taxation.
5. Are GST calculations asked in interviews?
Yes, basic GST calculation questions are common, especially for accounting and taxation roles.
6. What is the difference between ITC and GST refund?
ITC is credit adjustment against tax liability, while refund is excess tax returned by the government.
Conclusion
Mastering top GST questions for job interviews significantly improves your chances of securing roles in accounting, taxation, and finance. Employers value candidates who combine conceptual clarity with real-world GST compliance understanding. By preparing structured answers, remembering key figures, and practicing scenario-based questions, you can confidently handle even advanced GST interviews.
Disclaimer
This article is intended for educational and interview preparation purposes only. GST laws, rates, and procedures are subject to change based on government notifications. Readers should verify current provisions before applying the information in professional practice.