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 20 September 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
GST replaced which earlier taxes?
Why (d): GST subsumed the whole indirect maze — excise, service tax, VAT, CST, entry tax, octroi, luxury tax and more.
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 1,681 AFM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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 September 2026; verify from official sources before relying on them in practice.
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