LuLu Group International Interview Questions, Process, and Tips

2A and 2B are different subtypes or classifications within a larger category.

• 2A and 2B are typically used to differentiate between similar items or concepts.

• They may represent different levels, versions, or variations of the same thing.

• For example, 2A could refer to a higher level or more advanced option compared to 2B.

• The distinction between 2A and 2B is important for categorization and organization purposes.

Blocked credit in GST refers to input tax credit that cannot be utilized for payment of output tax liability.

• Blocked credit includes items like motor vehicles, food and beverages, health services, etc.

• Input tax credit on blocked items cannot be used to pay output tax liability.

• Blocked credit provisions are specified under Section 17(5) of the CGST Act.

Reverse input tax credit on fixed assets and expenses for nill rate supply

• Identify the fixed assets and expenses for which input tax credit needs to be reversed

• Calculate the amount of input tax credit to be reversed

• Reverse the input tax credit in the accounting records

• Adjust the tax liability accordingly

Nil rate supply is taxable but at a rate of 0%, while exempt supply is not taxable at all.

• Nil rate supply is a taxable supply but at a rate of 0%, meaning that the supplier can claim input tax credits on related expenses.

• Exempt supply is not taxable at all, meaning that the supplier cannot claim input tax credits on related expenses.

• Examples of nil rate supply include certain food items and healthcare services, while e...read more

Input Tax Credit (ITC) is a mechanism to avoid double taxation on goods and services.

• ITC allows businesses to claim credit for taxes paid on inputs used in the production of goods or services.

• It helps in reducing the overall tax liability of businesses.

• ITC is available for taxes paid on inputs such as raw materials, services, capital goods, etc.

• Example: If a manufacturer pays GST on raw materials, they can claim ITC to...read more

GSTR 2B is a static statement generated on the basis of GSTR 1, 5, 6, 7 filed by suppliers, while GSTR 2A is a dynamic statement reflecting purchases as per suppliers' GSTR 1.

• GSTR 2B is auto-populated and cannot be edited by the recipient, while GSTR 2A can be edited by the recipient.

• GSTR 2B provides a consolidated view of all invoices received from various suppliers, while GSTR 2A shows individual invoices from each s...read more