JAIIB · Accounting & Financial Management · Module D — Cost Management Accounting and Taxation
JAIIB AFM Unit 30 — Goods and Services Tax: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 2 November 2026 · Paper 3 of the November 2026 cycle (28 November 2026)
This page is a free slice of our JAIIB AFM question bank for Unit 30 — Goods and Services Tax (Module D — Cost Management Accounting and Taxation). The Mock Centre holds 44 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.
AFM · Module D44 MCQs in the Mock Centre5 free belowPaper on 28 November 2026
Key facts examiners test from this unit
GST effective 1 JULY 2017 — an indirect, multi-stage, DESTINATION-based consumption tax on supply of goods and services.
Dual structure: intra-state = CGST + SGST (half-half); inter-state = IGST; UT without legislature = CGST + UTGST.
Destination-based = the CONSUMING state earns the revenue (reversing origin-based CST).
Law update, September 2026. From 22 September 2025 (GST 2.0) individual life and health insurance premiums are EXEMPT from GST — but an exempt supply is still inside the GST law; alcohol for human consumption is outside the law itself, so the key stays (c). Current structure (from 22 September 2025, 'GST 2.0'): two main slabs — 5% and 18% — plus a 40% de-merit rate on tobacco, pan masala, aerated drinks and luxury cars; the 12% and 28% slabs were abolished and the compensation cess wound down. Stem says 'currently' → 5 / 18 / 40.
5 free practice questions — tap an option
Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.
Question 1 of 5
GST came into force in India on:
Why (b): GST launched on 1 JULY 2017 (101st Constitutional Amendment) — 'one nation, one tax'.
Question 2 of 5
Which of these taxes was NOT subsumed into GST?
Why (d): GST subsumed central excise, service tax, state VAT, CST, entry tax, octroi, luxury tax and others. Basic customs duty continues on imports, with IGST levied in addition.
Which of the following is currently OUTSIDE the GST net?
Why (c): Alcohol for human consumption stays constitutionally outside GST (petroleum products and electricity also remain outside for now); states tax it separately.
Law update, Sep 2026: From 22 September 2025 (GST 2.0) individual life and health insurance premiums are EXEMPT from GST — but an exempt supply is still inside the GST law; alcohol for human consumption is outside the law itself, so the key stays (c).
Question 5 of 5
Exports under GST are:
Why (b): Zero-rating keeps Indian exports competitive: the supply bears no GST and input credits are refundable (or exports move under LUT without payment).
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
CGST + SGST
IGST
Intra-state split vs inter-state single levy
SGST
UTGST
State with legislature vs UT without one
Practise all 44 questions on Unit 30. The free demo opens a slice of every subject with the same explanations; the AFM Online-only pass unlocks all 1,600+ AFM questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of November 2026; verify from official sources before relying on them in practice.
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