CS Executive

Going through the Procedural Compliances Under GST – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Procedural Compliances Under GST – Tax Laws CS Executive MCQs

Question 1.
What is the threshold limit of aggregate turnover for registration under section 22(1)?
(a) ₹ 10 Lakhs
(b) ₹ 15 Lakhs
(c) ₹ 20 Lakhs
(d) ₹ 40 Lakhs
Answer:
(c) ₹ 20 Lakhs

Question IA.
Mr. Raman is only supplying services which are exclusively taxable under RCM. The value of such supplies is ₹ 50 lakhs. Which of the following statement is true
(a) Compulsory registration is required as supplies are taxable
(b) Compulsory registration is required as turnover exceeds ₹ 40 lakhs
(c) Registration is not required in this case
(d) All of the above
Answer:
(c) Registration is not required in this case

Question IB.
M/s Alliance Enterprises is engaged in supplying of goods which are taxable under section 9(3) of CGST Act on RCM basis. What will be the threshold limit for the registration if M/s Alliance Enterprise operates in Delhi only
(a) ₹ 40 Lakhs
(b) ₹ 20 Lakhs
(c) ₹ 10 Lakhs
(d) Benefit of threshold limit is not available
Answer:
(d) Benefit of threshold limit is not available

Question 2.
After CGST (Amendment) Act, 2018, for which of the following special category state, the threshold limit of turnover is ₹ 10 Lakhs
(a) Jammu & Kashmir
(b) Mizoram
(c) Meghalaya
(d) Sikkim
Answer:
(b) Mizoram

Question 2A.
In which of the following case, the threshold limit is ₹ 20 Lakhs instead of ₹ 10 Lakhs, as per section 22(1)?
(a) Manipur
(b) Meghalaya
(c) Mizoram
(d) Nagaland
Answer:
(b) Meghalaya

Question 2B.
What is the threshold limit for registration under Notification No. 10/2019 dated 7-3-2019
(a) ₹ 10 lakhs
(b) ₹ 20 lakhs
(c) ₹ 30 lakhs
(d) ₹ 40 lakhs
Answer:
(d) ₹ 40 lakhs

Question 3.
Every supplier as per section 22 of the CGST Act, 2017 shall be liable to be registered under this Act in the State where he makes taxable supplies of goods or services or both, if his aggregate turnover in the Financial Year exceeds
(a) ₹ 20,00,000
(b) ₹ 40,00,000
(c) ₹ 30,00,000
(d) ₹ 60,00,000
Answer:
(a) ₹ 20,00,000

Question 4.
After CGST (Amendment) Act, 2018, the threshold limit of turnover for registration is ₹ 20 Lakh for the special category state;
(a) Himachal Pradesh
(b) Uttarakhand
(c) Assam
(d) All of the above
Answer:
(d) All of the above

Question 5.
Section 22 of CGST (Amendment) Act, 2017 creates liability for registration on certain persons. The basis covered are:
(a) Threshold limit and Persons already registered under earlier indirect tax laws
(b) Transfer of business or in case of amalgamation or demerger
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Question 6.
ABC Enterprises is engaged in supply of taxable goods with place of business in two states namely Haryana & Tripura. What will be the threshold limit for registration under GST
(a) ₹ 10 Lakhs
(b) ₹ 20 Lakhs
(c) ₹ 20 Lakh for Haryana & t 10 Lakh for Tripura
(d) None of the above
Answer:
(a) ₹ 10 Lakhs

Question 7.
Mr. Bala has made supply (within state) of taxable goods to the tune of ₹ 17 Lakhs, export supplies of ₹ 3 lakh and intrastate supply of exempt services of ₹ 4 Lakh. His aggregate turnover as per section 2(6) of the CGST/SGST Act, 2017 is:
(a) ₹ 17 Lakh
(b) t 20 Lakh
(c) ₹ 24 Lakh
(d) None of the above
Answer:
(c) ₹ 24 Lakh
Aggregate Turnover =₹ 17 + ₹ 3 + ₹ 4 = ₹ 24 Lakh 9.

Question 8.
Section 2(6) of the CGST/SGST Act, 2017 defines aggregate turnover which is being computed on all India basis excluding the taxes charged under CGST Act, SGST Act, UTGST Act and IGST Act. Aggregate turnover shall include all supplies made by a taxable person comprising of:
I Taxable supply II Exempt supply
III Export of goods
IV All Inter-state supply of persons having same PAN
V Inward supply on which tax is levied on reverse charge basis VI Value of all inward supply
(a) I, III, IV and V
(b) I, III, IV and VI
(c) I, II, III and IV
(d) All the above (I to VI)
Answer:
(d) All the above (I to VI)

Question 8A.
Which of the following is not covered under section 24 of CGST Act, 2017 related with compulsory registration after CGST (Amendment) Act, 2018
(a) Person making inter-State taxable supply
(b) ECO who is NOT required to collect tax at source under section 52
(c) NRTP making taxable supplies
(d) Person liable to deduct tax under section 51, NOT separately registered under COST Act
Answer:
(b) ECO who is NOT required to collect tax at source under section 52

Question 8B.
As per section 25(1), a person should apply for registration within ……. days from the date he becomes liable for registration
(a) 30
(b) 60
(c) 90
(d) 120
Answer:
(a) 30

Question 9.
Consider the following information:

Type of Supply	Inward Supply	Outward Supply
Supply of taxable goods	4,00,000	8,00,000
Supply under Re­verse Charge	3,00,000	2,00,000
Exempted	1,00,000	1,90,000

Find out the value of aggregate turnover as per Explanation I of section 22 of CGST Act, 2017
(a) ₹ 11,90,000
(b) ₹ 8,00,000
(c) ₹ 9,90,000
(d) ₹ 12,90,000
Answer:
(a) ₹ 11,90,000
Aggregate Turnover = ₹8 + ₹2 + ₹ 1.9 = ₹11.90 Lakh

Question 10.
The supply of goods, after completion of Job Work, by a registered Job Worker:
(a) Shall be treated as supply by Job Worker
(b) Shall not to be treated as supply
(c) Shall be included in the aggregate turnover of Job Worker
(d) Shall be included in the aggregate turnover of the Principal
Answer:
(d) Shall be included in the aggregate turnover of the Principal

Question 11.
Section 22 of the CGST Act, 2017 refers to the expression “Special Category States ” and there are total ………….. Special category States as persub-clause (2) of Clause (4) of Article 279A of the Constitution. However, at present, special category States for the purpose of registration under the CGST Act, 2017 out of which are ………………….
(a) 7,2
(b) 7,4
(c) 11,4
(d) 11,7
Answer:
(c) 11,4

Question 12.
Which of the following is not covered under section 24 for compulsory registration
(a) Casual Taxable Person
(b) Non-Resident Taxable Person
(c) Input Service Distributor
(d) Persons making any Intra-state taxable supply
Answer:
(d) Persons making any Intra-state taxable supply

Question 13.
A person who is not liable to be registered under section 22 or section 24:
(a) May get himself registered under voluntary registration [Section 25(3)]
(b) Cannot be registered
(c) Can be registered under section 22
(d) Can be registered under section 23
Answer:
(a) May get himself registered under voluntary registration [Section 25(3)]

Question 14.
Madan is located in Chennai. He has a branch office in Cochin. He wants to transfer goods. His turnover was always below ₹ 10 Lakhs. His registration under GST is:
(a) Voluntary
(b) Compulsory
(c) Compulsory only when turnover exceeds ₹20 Lakhs
(d) As and when deemed by the Revenue Department
Answer:
(b) Compulsory

Question 15.
Section 24 of the CGST Act, 2017 lists categories of persons who are required to take registration even if they are not covered under section 22 of the Act. Find out from the following categories of persons who are being required to take registration as per section 24 of the CGST Act, 2017:
I Casual Taxable Person II Non-resident Taxable Person
III Recipient of service under Reverse Charge
IV Inter-state supplier
V Input service distributor
(a) I, III and V
(b) I, II, IV and V
(c) I, El and V
(d) All the persons in I to V
Answer:
(d) All the persons in I to V

Question 16.
As per section 2(7) of CGST Act, 2017, the term ‘Agriculturist’ means an individual/HUF who undertakes cultivation of land:
(a) By own labour
(b) By the labour of family
(c) By servants on wages
(d) Any of the above
Answer:
(d) Any of the above

Question 17.
What is the time limit for voluntary registration under section 2(3)?
(a) Within 30 days from becoming liable for registration
(b) Five days prior to starting of business
(c) Ten days after the starting of business
(d) At any time (No time limit)
Answer:
(d) At any time (No time limit)

Question 18.
A Casual Taxable Person or a Non-Resident Taxable Person shall be required to apply for registration at least days prior to the commencement of business.
(a) 30
(b) 5
(c) 15
(d) 7
Answer:
(b) 5

Question 19.
In Part A of FORM GST REG-01, what is not declared
(a) Mobile Number
(b) Aadhaar Number
(c) PAN Number
(d) E-Mail address
Answer:
(b) Aadhaar Number

Question 20.
As a part of procedure for registration, PAN is ……whereas Mobile Number/E-Mail Address is…………
(a) Validated on line, Verified by OTP
(b) Validated by post, Verified on line
(c) Verified on line, Validated by OTP
(d) Verified, Verified
Answer:
(a) Validated on line, Verified by OTP

Question 21.
Find out from the following, who are the persons not liable for registration under section 30 of the CGST Act, 2017:
(a) Non-Resident making taxable supply
(b) Person supplying exempted goods and services which are not liable for tax under GST
(c) An agriculturist, to the extent of supply of produce out of cultivation of land
(d) Both (b) and (c)
Answer:
(d) Both (b) and (c)

Question 22.
On successful verification of PAN, Mobile Number and E-Mail address, a Temporary Reference Number (TRN) is generated and communicated to the applicant on .
(a) Mobile Number
(b) Mobile Number & E-Mail address
(c) E-Mail address & Postal Address
(d) Mobile Number & Speed Post Mail
Answer:
(b) Mobile Number & E-Mail address

Question 23.
On receipt of application in Part B of GST REG-01, the acknowledgement is issued to the applicant in FORM
(a) GST REG 01
(b) GST REG 02
(c) GST ACK 01
(d) GST ACK 02
Answer:
(b) GST REG 02

Question 24.
A taxable person whose registration has been cancelled or surrendered must file the final return of GST within:
(a) 6 months of the cancellation
(b) 6 months after the end of the financial year
(c) 3 months after the end of the financial year
(d) 3 months after the date of cancellation
Answer:
(d) 3 months after the date of cancellation

Question 25.
State which shall be taken as the effective date of registration as per CGST Act, 2017 where the aggregate turnover of Madhur company engaged in supply of taxable services in the state of Rajasthan exceeded ₹ 20 Lakh during the year on 25th September, 2017, the application for registration under GST was filed on 19th October, 2017 and the registration certificate was granted on 29th October, 2017 by the authority:
(a) 25-9-2017
(b) 19-10-2017
(c) 24-10-2017
(d) 29-10-2017
Answer:
(a) 25-9-2017
As per Rule 10 of CGST Rules, 2017, the registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within a period of 30 days from such date.

Question 26.
The certificate of registration issued to casual taxable person or non-resident taxable person shall be valid for the period specified in the application for registration or for …….. days from the effective date of registration whichever is earlier. The validity of registration period on a request made by such taxable person may be further extended by the proper officer for a period not exceeding ………. days.
(a) 60,45
(b) 90,60
(c) 90,90
(d) 90,30
Answer:
(c) 90,90
The registration certificate granted to CTP/NRTP will be valid for:
(i) Period specified in the registration application, or
(ii) 90 days from the effective date of registration, whichever is earlier The validity of registration certificate can be extended further by a period not exceeding 90 days by making an application before the end of the validity of registration granted to him.

Question 27.
The cancellation of registration under section 29 may be made ……
(a) On application filed by registered person
(b) On application filed by legal heirs (in case of death)
(c) By proper officer on his own motion
(d) Any of the above
Answer:
(a) On application filed by registered person

Question 28.
Section 2(77) of CGST Act, 2017 defines “non-resident taxable person ’’who has the business outside India, conies to India for a temporary business purpose. Such person would need to register as a non-resident taxable person in the State and he will be rated registration for a maximum period of Under the Act.
(a) 90 days
(b) 45 days
(c) 60 days
(d) 30 days
Answer:
(a) 90 days

Question 29.
Maximum validity period of certificate of registration issued to a Casual Taxable person and Non-Resident Taxable person as per section 27 of the CGST Act, 2017 is:
(a) 90 days from the effective day of registration
(b) 180 days from the effective date of registration
(c) 365 days from the effective date of registration
(d) None of the above
Answer:
(a) 90 days from the effective day of registration

Question 30.
The proper officer may cancel the GST registration, if any registered person other than a person paying tax under section 10 of CGST Act, 2017 has not furnished the returns for a continuous period of:
(a) 12 months
(b) 9 months
(c) 6 months
(d) 3 months
Answer:
(a) 12 months

Question 31.
The registration can be cancelled by the proper officer under section 29(2), if a voluntary registered person has not commenced the business within ………. from the date of registration.
(a) 3 months
(b) 4 months
(c) 5 months
(d) 6 months
Answer:
(d) 6 months

Question 32.
Where a registered person has not furnished returns for a continuous period of ……….. months, the registration can be cancelled by the proper officer.
(a) 3 months
(b) 4 months
(c) 5 months
(d) 6 months
Answer:
(d) 6 months

Question 33.
Where the registration of a person is cancelled ‘Suo Motu’ by the proper officer, such registered person may apply for revocation of cancellation within …………. days from the date of service of the order of cancellation of registration.
(a) 10 days
(b) 20 days
(c) 30 days
(d) 45 days
Answer:
(c) 30 days

Question 34.
The application for revocation of cancellation is made in FORM GST
(a) REG-19
(b) REG-20
(c) REG-21
(d) REG-22
Answer:
(c) REG-21

Question 35.
In case, the change in the constitution of any business results in the change of PAN of a registered person:
(a) Fresh registration is required
(b) Old registration is amended
(c) Any of (a) or (b), at the option of proper officer
(d) None of the above
Answer:
(a) Fresh registration is required

Question 36.
Which one of the following is not Core¬Field information
(a) PAN Number
(b) Legal Name
(c) Mobile Number
(d) Retirement of a Partner
Answer:
(c) Mobile Number

Question 37.
As per Rule 10 of CGST Rules, 2017, where the applicant submits application for registration after 30 days from the date he becomes liable to registration, the effective date of registration is:
(a) Date when he becomes liable for registration
(b) Date of grant of registration
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(b) Date of grant of registration

Question 38.
The CTP and NRTP apply for registration in the FORM ……. and ………… Respectively.
(a) REG-01 & REG-09
(b) REG-04 & REG-09
(c) REG-03 & REG-09
(d) REG-02 & REG-06
Answer:
(a) REG-01 & REG-09

Question 39.
The registration certificate granted to CTP/NRTP will be valid for ………
(a) Period specified in the registration application
(b) 90 days from the effective date of registration
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(c) Earlier of (a) and (b)

Question 39 A.
A NRTP should apply for registration ……….. the commencement of business.
(a) Within 5 days from
(b) Within 30 days from
(c) At least 5 days prior to
(d) At least 10 days prior to
Answer:
(c) At least 5 days prior to

Question 39B.
Which of the following statement is true as regards a casual taxable person
(a) Not required to take registration under GST.
(b) Registration is required, if the aggregate turnover in a financial year exceeds ₹ 20 lakh.
(c) Compulsory registration irrespective of the threshold limit.
(d) None of the above
Answer:
(c) Compulsory registration irrespective of the threshold limit.

Question 39C.
What is the validity of the registration certificate issued under CGST Act, 2017
(a) One year
(b) Five years
(c) Ten years
(d) Valid till it is cancelled.
Answer:
(d) Valid till it is cancelled.

Question 39D.
The registration certificate granted to Casual taxable Person is valid for the period specified in registration application or …… days from the effective date of registration, whichever is………
(a) 60, Earlier
(b) 90, Earlier
(c) 60, Later
(d) 90, Later
Answer:
(b) 90, Earlier

Question 39E.
The section 30 of CGST Act, 2017 read with Rule 23 of CGST Rules, 2017 provide that an application for revocation of cancellation of registration can be made within days from the date of ……….. of the cancellation order
(a) 7, service
(b) 15, issue
(c) 30, service
(d) 45, issue
Answer:
(c) 30, service

Question 40.
For CTP & NRTP, registration is required compulsorily at least ……. Prior to commencement of business.
(a) 5 days
(b) 9 days
(c) 1 days
(d) 14 days
Answer:
(a) 5 days

Question 41.
The GSTIN consists of digits
(a) 13
(b) 14
(c) 15
(d) 16
Answer:
(c) 15

Question 42.
The registration under GST is ……… based with State specific number and is known as GST Identification Number (GSTIN) which is …… a Digit number under the CGST Act, 2017.
(a) TAN, 12
(b) PAN, 15
(c) TAN, 15
(d) PAN, 12
Answer:
(b) PAN, 15

Question 43.
As per Notification No. 1/2019, w.e.f. 1-4-2019, any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed …….. is exempt from registration, subject to certain conditions.
(a) ₹ 10 Lakh
(b) ₹ 20 Lakh
(c) ₹ 30 Lakh
(d) ₹ 40 Lakh
Answer:
(d) ₹ 40 Lakh

Question 44.
After CGST (Amendment) Act, 2018, the requirement of having multiple business verticals to obtain separate registrations in a state has been dispensed with. Now, a person having multiple places of business in a state or Union Territories may be granted
(a) Single registration for all places
(b) Separate registration for each such place of business
(c) Separate registration for each place provided business at each place is different
(d) Separate registration for each de-pending upon supply of goods and services
Answer:
(a) Single registration for all places

Question 45.
W.e.f. 1-2-2019, where a registered person has applied for cancellation of registration, the registration shall be deemed to be suspended from
(a) Date of submission of the application
(b) Date from which the cancellation is sought
(c) Earlier of (a) or (b)
(d) Later of (a) or (b)
Answer:
(d) Later of (a) or (b)

Question 45A.
Which section of CGST Act, 2017 provides that a person who is not registered shall not collect any tax in respect of any supply
(a) Section 29
(b) Section 30
(c) Section 31
(d) Section 32
Answer:
(d) Section 32

Question 45B.
A bill of Supply is issued when registered person
(a) Supplies exempted goods
(b) Supplies exempted services
(c) Is paying tax under composition levy scheme
(d) All of the above
Answer:
(d) All of the above

Question 45C.
As per section 31(2) read with Rule 47 of CGST Rules, 2017, an invoice shall be issued within a period of 45 days from the date of supply of service
in case of taxable supply of services by
(a) Insurance company
(b) Banking company
(c) Financial Institution
(d) All of the above
Answer:
(d) All of the above

Question 45D.
As per Rule 48 of CGST Rules, 2017, the invoice shall be prepared in ………… and ……….. in case of taxable supply of goods and services, respectively.
(a) Duplicate, Duplicate
(b) Triplicate, Triplicate
(c) Duplicate, Triplicate
(d) Triplicate, Duplicate
Answer:
(d) Triplicate, Duplicate

Question 46.
Narayan and sons, operates in Delhi with multiple branches in Delhi itself. The firm can take Registration under GST for the multiple branches in Delhi.
(a) Separate
(b) Single
(c) Either (a) or (b), at the choice of firm
(d) Either (a) or (b), at the choice of Commissioner
Answer:
(c) Either (a) or (b), at the choice of firm

Question 47.
When the business is transferred under an order of High Court or Tribunal, the company is liable to be registered under GST from the date on which
(a) All the assets and liabilities are transferred
(b) The Registrar of Companies issues Certificate of Incorporation giving effect to such order.
(c) All the liabilities/dues have been paid.
(d) Order of the court or Tribunal is received
Answer:
(b) The Registrar of Companies issues Certificate of Incorporation giving effect to such order.

Question 47A.
The ……. of CGST Rules, 2017 specifies the cases where goods may be remarked on delivery challan and invoice may be issued after delivery.
(a) Rule 53
(b) Rule 54
(c) Rule 55
(d) Rule 56
Answer:
(c) Rule 55

Question 47B.
Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued:
(a) before/at the time of supply.
(b) 6 months from the date of removal.
(c) Earlier of (a) or (b).
(d) Later of (a) or (b).
Answer:
(c) Earlier of (a) or (b).

Question 47C.
As per section 45, Final Return has to be filed within ……… Of the date of cancellation of registration or date of order of cancellation whichever is …………..
(a) 2 months, later
(b) 2 months, earlier
(c) 3 months, later
(d) 3 months, earlier
Answer:
(c) 3 months, later

Question 48.
The appointed day for the purposes of Registration in GST refers to …………
(a) 22-6-2017
(b) 30-6-2017
(c) 1-7-2017
(d) 1-10-2017
Answer:
(a) 22-6-2017

Question 49.
Any person required to deduct tax or required to collect tax at source under GST as per Rule 12 shall electronically submit an application for the grant of registration in Form ……. and ………..after verification of the application the proper officer may grant the registration and issue the certificate on registration in Form
(a) GST REG-5, GST REG-4
(b) GST REG-8, GST REG-7
(c) GST REG-7, GST REG-6
(d) GST REG-10, GST REG-9
Answer:
(c) GST REG-7, GST REG-6

Question 50.
Ram Setu is making supplies from territorial waters of India shall obtain registration in the …………
(a) Territorial waters of India
(b) Coastal State where the nearest point of the appropriate baseline is located
(c) Union Territory where the nearest point of the appropriate baseline is located
(d) Any of (a) & (b), depending upon state or union territory
Answer:
(d) Any of (a) & (b), depending upon state or union territory

Question 51.
In which form, the application for registration under GST Act is to be filed
(a) FORM GST REG-01
(b) FORM GST REG-02
(c) FORM GST REG-03
(d) None of the above
Answer:
(a) FORM GST REG-01

Question 52.
The proper officer, if has reasons to believe that the registration of a person is liable to be cancelled under section 29 of CGST Act, then he shall issue a notice to ……..such person in Form And after considering the reply furnished by such person shall pass on order to drop proceedings in Form ……………
(a) GST REG-16, GST REG-17
(b) GST REG-17, GST REG-18
(c) GST REG-17, GST REG-19
(d) GST REG-17, GST REG-20
Answer:
(d) GST REG-17, GST REG-20

Question 53.
The registration under GST is granted to the applicant within ……… from the date of submission of application, if everything is in order and no clarification is required.
(a) 3 days
(b) 3 working days
(c) 5 days
(d) 5 working days
Answer:
(b) 3 working days

Question 54.
Suppose a notice has been issued by the proper officer to the applicant in case of deficiency in the application for registration under GST. What is the time limit for furnishing the clarification
(a) 5 days
(b) 5 working days
(c) 7 days
(d) 7 working days
Answer:
(d) 7 working days

Question 55.
The application for amendment in registration shall be filed within
(a) 5 days of such change
(b) 7 days of such change
(c) 15 days of such change
(d) 30 days of such change
Answer:
(c) 15 days of such change

Question 56.
The clarification regarding deficiency in application for registration is filed in FORM
(a) GST REG-01
(b) GST REG-02
(c) GST REG-03
(d) GST REG-04
Answer:
(d) GST REG-04

Question 57.
The application of registration filed as per Rule 8, prior to grant of registration be examined and if found to be deficient, a notice to the applicant in Form …………..Be issued with a period of ……….days from the date of submission of application.
(a) GST REG-03, 7
(b) GST REG-03, 3
(c) GST REG-05, 7
(d) GST REG-01, 3
Answer:
(b) GST REG-03, 3

Question 58.
The application for revocation of cancellation of registration has to be applied to the proper officer by the person within ……….. days from the date of……………
(a) 30, Communication of cancellation order
(b) 30, Service of cancellation order
(c) 45, Communication of cancellation order
(d) 45, Service of cancellation order
Answer:
(b) 30, Service of cancellation order

Question 59.
Which of the following FORM is used for application for amendment of registration
(a) GST REG-06
(b) GST REG-10
(c) GST REG-14
(d) GST REG-15
Answer:
(c) GST REG-14

Question 60.
Where the supply involves the movements of goods, the due date for issuing tax invoice for supply of goods shall be:
(a) At the time of receipt of consideration
(b) On or before the removal of goods for supply to the recipient
(c) On or before the delivery of goods to the recipient
(d) None of the above
Answer:
(b) On or before the removal of goods for supply to the recipient

Question 61.
In the case of supply of services, the due date for issue of tax invoice shall be within days from the date of supply of services.
(a) 7
(b) 15
(c) 30
(d) 45
Answer:
(c) 30

Question 62.
In case of supply of goods, the invoice invest he issued in triplicate i.e. original for ………… duplicate for ……….and triplicate for …..
(a) Recipient, Transporter & supplier
(b) Supplier, Transporter & Recipient
(c) Recipient, Supplier & Transporter
(d) Supplier, Recipient & Transporter
Answer:
(a) Recipient, Transporter & supplier

Question 63.
Under GST, as regards tax invoice:
(a) Specific format is to be used
(b) There is no format but fields have been prescribed as mandatory fields
(c) The format prescribed under erstwhile CST Act
(d) Nothing is given regarding the fields or formats
Answer:
(b) There is no format but fields have been prescribed as mandatory fields

Question 64.
Mundra Manufacturing Company of Jaipur on the order placed by Dheeraj Enterprises of Noida for supply of goods dispatched the goods from the factory located at Jaipur on 1st March, 2019. The tax invoice for such supply by Mundra Manufacturing Company must be issue on Dheeraj Enterprises on or before
(a) 30th March, 2019
(b) 1st March, 2019
(c) 15th March, 2019
(d) 7th March, 2019
Answer:
(b) 1st March, 2019

Question 65.
The GST system is based on electronic networking. Under GST, invoices may be issued:
(a) Manually
(b) Electronically
(c) Any of (a) or (b)
(d) Electronic issue of invoice is mandatory
Answer:
(c) Any of (a) or (b)

Question 66.
Debit Note is issued by the supplier of goods when:
(a) Tax charged in the invoice is excessive
(b) When the goods are returned by the recipient
(c) Tax charged is lees than the tax payable
(d) When the goods supplied are deficient
Answer:
(c) Tax charged is lees than the tax payable

Question 67.
When the goods being sent or taken on approval for sale or return are removed before the supply taken place, the invoice shall be issued:
(a) Before or at the time of supply
(b) Six months from the date of removal
(c) Earlier of (a) & (b)
(d) Later of (a) & (b)
Answer:
(c) Earlier of (a) & (b)

Question 68.
As per Section 31(3)(c) of CGST Act, Bill of Supply is issued in case of Registered person engaged in:
(a) Supply of exempted goods/services
(b) Paying tax under Composition Levy Service.
(c) Either (a) or (b)
(d) None of the above
Answer:
(c) Either (a) or (b)

Question 69.
Which Rule of CGST Rules, 2017 specifies the cases where goods may be remarked on delivery challan & invoice is issued after delivery
(a) Rule 52
(b) Rule 53
(c) Rule 54
(d) Rule 55
Answer:
(d) Rule 55

Question 70.
Registered supplier may issue, credit note to recipient of such supply where a tax invoice has been issued but:
(a) Taxable value in Invoice is more than actual taxable value
(b) Tax charged in invoice is more than tax payable in respect of such supply.
(c) Where goods are returned by the recipient
(d) All of the above.
Answer:
(d) All of the above.

Question 71.
In the case of supply of services by BANKING company, the due date for issue of tax invoice shall be within days from the date of supply of services.
(a) 7
(b) 15
(c) 30
(d) 45
Answer:
(d) 45

Question 72.
In case of supply of services of exempted goods/services, is issued.
(a) Tax Invoice
(b) Acknowledgement Only
(c) Bill of Supply
(d) Bill of Invoice
Answer:
(c) Bill of Supply

Question 73.
In case of taxable supply of goods, the invoice shall be prepared in …….
(a) Single copy
(b) Duplicate copies
(c) Triplicate copies
(d) Quadruplicate
Answer:
(c) Triplicate copies

Question 74.
In which of the following case, invoice shall be prepared in duplicate
(a) Taxable supply of goods
(b) Taxable supply of services
(c) Both (a) & (b)
(d) Exempt supply of goods
Answer:
(b) Taxable supply of services

Question 75.
In case of taxable supply of goods, the invoice shall be prepared in Triplicate. The original, duplicate and Triplicate copy shall be for …..respectively.
(a) Recipient, Transporter and Supplier
(b) Supplier, Transporter and Recipient
(c) Recipient, Supplier and Transporter
(d) Supplier, Recipient and Transporter
Answer:
(a) Recipient, Transporter and Supplier

Question 76.
What is the number of digits of HSN code required to be mentioned in tax invoice, if the Annual Turnover in the preceding year is more than ₹ 1.5 Crore but not exceeding 5 Crore.
(a) Nil
(b) 2
(c) 3
(d) 4
Answer:
(b) 2

Question 77.
Tax invoice referred to in Rule 46 of CGST Rules, 2017, in case of taxable supply of services shall be issued under Rule 47 of CGST Rules, 2017, within a period of from the date of supply of service.
(a) 7 days
(b) 15 days
(c) 30 days
(d) On the same day
Answer:
(c) 30 days

Question 78.
In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice shall be issued:
(a) Before or at the time when the supplier of service receives the payment
(b) On or before the due date of payment
(c) Either (a) or (b)
(d) None of the above
Answer:
(b) On or before the due date of payment

Question 79.
In case of continuous supply of services, where due date of payment is NOT ascertainable from the contract, invoice shall be issued:
(a) Before or at the time when the supplier of service receives the payment
(b) On or before the due date of payment
(c) Either (a) or (b)
(d) None of the above
Answer:
(a) Before or at the time when the supplier of service receives the payment

Question 80.
Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued:
(a) Before or at the time of supply
(b) 6 months from the date of removal
(c) Either of (a) or (b)
(d) None of the above
Answer:
(c) Either of (a) or (b)

Question 81.
In case of taxable supply of services by an insurer, invoice shall be issued within a period of ………..from the date of supply of service.
(a) 30 days
(b) 45 days
(c) 60 days
(d) 90 days
Answer:
(b) 45 days

Question 82.
A registered person may not issue a tax invoice if Instead such registered person shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.
(a) Value of goods/services/both sup-plied ₹ 200
(b) The recipient is unregistered
(c) The recipient does not require such invoice
(d) All of the above
Answer:
(d) All of the above

Qestion 83.
A draft template of invoice to be raised by a registered person liable to pay tax under Reverse Charge Mechanism (RCM) under GST is known as ……….
(a) GSTINV-1
(b) GSTINV-2
(c) GSTINV-3
(d) GSTINV-4
Answer:
(a) GSTINV-1

Question 84.
Which of the following person shall issue a Bill of Supply instead of a Tax Invoice
(a) A registered person supplying exempted goods
(b) A registered person supplying exempted services
(c) A registered person paying under Composition Scheme
(d) All of the above
Answer:
(d) All of the above

Question 85.
Where at the time of receipt of advance, the rate of tax of supply is not determinable, then tax shall be paid at the rate of ……………
(a) 12%
(b) 18%
(c) 2496
(d) 28%
Answer:
(b) 18%

Question 86.
Where at the time of receipt of advance, the nature of supply is not determinable, then the same shall be treated as
(a) Intra-state supply
(b) Inter-state supply
(c) Any of (a) and (b)
(d) Zero rated supply
Answer:
(b) Inter-state supply

Question 87.
Rahul, a registered dealer, has removed the goods from his premises on 24th December 2019 for sending the same on approval basis to Mr. Avinash. Avinash Signifies his acceptance on 12th June, 2020. But he made the payment on 11th July, 2020. At what date, the invoice should be issued by Rahul, as per Section 31(7) of CGST Act, 2017.
(a) 12th June, 2020
(b) 11th July, 2020
(c) 24th December, 2019
(d) None of above.
Answer:
(a) 12th June, 2020

Question 88.
As per Rule 55A of CGST Rules, where the person-in-charge is not required to carry e-way bill, then such person shall carry a copy of:
(a) Tax Invoice
(b) Bill of supply
(c) Either (a) or (b)
(d) None of the above
Answer:
(c) Either (a) or (b)

Question 89.
Rule 46A of CGST Rules provides for issue of single “Invoice-Cum-bill of supply” where such registered person is supplying:
(a) Taxable Goods/Services
(b) Exempted Goods / Services
(c) Taxable as well as Exempted goods / services
(d) Zero rated goods.
Answer:
(c) Taxable as well as Exempted goods / services

Question 90.
The responsibility of maintaining the records lies with
(a) Registered person
(b) Owner of warehouse or godown
(c) Operator of transporter
(d) All of the above
Answer:
(d) All of the above

Question 91.
A registered person as per section 35 of the CGST Act, 2017 is required to maintain proper accounts and records, and keep at his registered, principal place of business. Following are the records specified under this section are to be maintained by the registered person:
I Production or manufacturing of goods
II Inward and Outward supply of goods or services or both
III Stock of goods
IV Input credit availed
V Output tax payable and paid VI Such other particulars as may be prescribed
(a) I, III and IV
(b) All the six as given in above
(c) I, II, III and V
(d) I, IB, IV, V and VI
Answer:
(b) All the six as given in above

Question 92.
The books of account shall be kept and maintained at …………..
(a) Principal Place of business only
(b) Principal Place of business and Additional Place of business, as given in certificate of registration
(c) Administrative Place of Business
(d) Place where factory is situated
Answer:
(b) Principal Place of business and Additional Place of business, as given in certificate of registration

Question 93.
Every registered person other than ………… Shall keep and maintain an account, containing the details of tax payable, tax collected, taxes paid, ITC claimed, etc.
(a) Casual Taxable Person
(b) Non Resident Taxable Person
(c) Composition Dealer
(d) All of the above
Answer:
(c) Composition Dealer

Question 94.
A registered person is required to keep the particulars of …..
(a) Suppliers, from goods or services have been received
(b) Recipients, to whom goods and services were supplied
(c) Both (a) and (b)
(d) Bankers to the firm
Answer:
(c) Both (a) and (b)

Question 95.
Every owner or operator of warehouse or godown or any other place used for storage of goods to maintain records of ….
(a) Consignor
(b) Consignee
(c) Other prescribed detail
(d) All of the above
Answer:
(d) All of the above

Question 96.
When accounts and records are maintained manually
(a) Each volume of books of account shall be serially numbered
(b) No entry to be erased or overwritten in the books
(c) All incorrect entries other than of clerical nature, should be scored out under attestation
(d) All of the above
Answer:
(d) All of the above

Question 97.
XYZ Co. Ltd. registered under GST has to maintain accounts and records until the expiry of ……. months from the due date of furnishing the annual return for the year.
(a) 36 months
(b) 84 months
(c) 72 months
(d) 60 months
Answer:
(c) 72 months

Question 98.
The time duration for retention of accounts and records under Goods and Services Tax (GST) as per section 36 of the CGST Act, 2017 is :
(a) Until expiry of 36 months from the due date of furnishing of annual return for the year pertaining to such accounts and records
(b) Until expiry of 48 months from the due date of furnishing of annual return for the year pertaining to such accounts and records
(c) Until expiry of 60 months from the due date of furnishing of annual return for the year pertaining to such accounts and records
(d) Until expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records
Answer:
(d) Until expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records

Question 99.
Time duration as per section 36 of the CGST Act, 2017 for retention of accounts and records under GST is until expiry of months from the due date of furnishing of annual return for the year pertaining to such accounts and record.
(a) 72
(b) 84
(c) 60
(d) None of the above
Answer:
(a) 72

Question 100.
Which of the following is a specified person under CGST Rules for maintaining specific records
(a) Agent
(b) Manufacturer
(c) Supplier of services
(d) All of the above.
Answer:
(d) All of the above.

Question 101.
When records are maintained in electronic FORM under GST, the records so maintained shall by authenticated by means of:
(a) Manual signature on hand copy
(b) Signature
(c) Digital Signature
(d) Lock by the service Provider
Answer:
(c) Digital Signature

Question 102.
As per Section 36 of CGST Act, the books of account or other records shall be …retained until the expiry of from the due date of furnishing of annual return for the year pertaining to such a accounts and records.
(a) 48 Months
(b) 60 Months
(c) 72 Months
(d) 84 Months
Answer:
(c) 72 Months

Question 103.
Every person required to maintain records and accounts in accordance with the provisions of Section 35(2) of CGST Act, if not already registered under the Act, shall submit the details regarding his business electronically on the common portal in :
(a) FORM GST REG-01
(b) FORM GST INV-01
(c) FROM GST PMT-01
(d) FORM GST ENR-01
Answer:
(d) FORM GST ENR-01

Question 104.
E Way Bill is generated electronically in FORM on the common portal.
(a) GST 01
(b) EWB01
(c) GST 02
(d) EWB02
Answer:
(b) EWB01

Question 105.
When a movement of goods is of more than …….. in value, the e-way bill must accompany the goods.
(a) 120,000
(b) ₹ 50,000
(c) ₹ 1,00,000
(d) ₹ 2,00,000
Answer:
(b) ₹ 50,000

Question 106.
An e-way bill FORM GST EWB 01 contains ………parts.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(a) Two

Question 107.
E-Way bill is valid for movement of goods by road only when the information in Part B is furnished. However, the detail of conveyance may not be furnished in Part B, where goods are transported for a distance of within the state/Union Territory.
(a) Upto 10 Kms.
(b) Up to 50 Kms.
(c) Up to 75 Kms.
(d) Up to 100 Kms.
Answer:
(b) Up to 50 Kms

Question 108.
Every registered person as per section 68 of CGST Act, 2017 who causes movement of goods of consignment value greater than whether for supply or otherwise or due to the inward supply from an unregistered person, shall before commencement of such movement, furnish the necessary information electronically on the portal in the prescribed form.
(a) ₹ 50,000
(b) ₹ 25,000
(c) ₹ 1,00,000
(d) ₹ 5,000
Answer:
(a) ₹ 50,000

Question 109.
Mr. Bala has made supply (within State) of taxable goods to the tune of ₹ 17 lakh, export supplies of ₹ 3 lakh and intra-state supply of exempt services of ₹ 4 lakh. His aggregate turnover as per section 2(6) of the CGST/SGST Act, 2017 is :
(a) ₹ 17 lakh
(b) ₹ 20 lakh
(c) ₹ 24 lakh
(d) None of the above
Answer:
(c) ₹ 24 lakh
Aggregate Turnover = ₹17 + ₹3 + ₹4 = ₹24 Lakh

Question 110.
The validity period specified for an e-way bill or a consolidated e-way bill under E-way rules as specified in rule 138 for
(a) Distance upto 1 km – half day
(b) Distance upto 10 km -1 day
(c) For every 100 km or part thereof thereafter – one additional day
(d) Both (b) and (c) above
Answer:
(c) For every 100 km or part thereof thereafter – one additional day

Question 111.
Where an e-way bill has been generated, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically within ………… of generation of e-way bill.
(a) 12 Hours
(b) 24 Hours
(c) 36 Hours
(d) 48 Hours
Answer:
(b) 24 Hours

Question 112.
E-way bill may be cancelled electronically on the common portal within ……….. of generation of e-way bill.
(a) 12 Hours
(b) 24 Hours
(c) 30 Hours
(d) 36 Hours
Answer:
(b) 24 Hours

Question 113.
The e-way bill FORM GST EWB-01 Contains …… parts.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(a) Two

Question 114.
Which part of e-way bill comprises of details of GSTIN of supplier & recipient, place of delivery, etc.?
(a) Part A
(b) Part B
(c) Part C
(d) Part D
Answer:
(a) Part A

Question 115.
Which of the following statements is true
(a) E-way Bill is not valid for movement of goods without vehicle number on it
(b) Once E-Way Bill is generated, it cannot be edited for any mistake. However, it can be cancelled within 24 hours of generation.
(c) E-Way Bill may be updated with vehicle number any number of times
(d) All of the above
Answer:
(d) All of the above

Question 116.
If the distance involved is less than or equal to 100 Kms., the validity of E-way Bill generated is
(a) Half Day
(b) One Day
(c) Two Days
(d) 36 Hours
Answer:
(b) One Day

Question 117.
When E-Way Bill is generated, a Unique E-Way Bill Number (EBN) is generated and made available to the ……………..
(a) Supplier
(b) Recipient
(c) Transporter
(d) All of the above
Answer:
(d) All of the above

Question 118.
Where goods are sent by principal located in one state/UT to a Job worker located in any other state/UT, the e-way bill is :
(a) Not generated at all
(b) Generated in all cases
(c) Generated if value of consignment is less than ₹ 50,000
(d) Generated if value of consignment is more than ₹ 50,000.
Answer:
(b) Generated in all cases

Question 119.
In which of the following case, e-way bill is not required to be generated ……..
(a) Kerosene oil sold under PDS
(b) Currency
(c) Personal & Household effects
(d) All of the above.
Answer:
(d) All of the above.

Question 120.
The validity of the e-way bill starts when first entry is made in :
(a) Part A
(b) Part B
(c) Part C
(d) Part D
Answer:
(b) Part B

Question 121.
Where the E-Way Bill has not been generated and the consignment is handed over to a transporter:
(a) E-Way Bill Cannot be generated
(b) W-Way Bill is to be generated by the transporter
(c) E-Way Bill Cannot may be generated
(d) None of the above
Answer:
(c) E-Way Bill Cannot may be generated

Question 122.
In which of the following cases, E-Way Bill needs to be issued even if value of consignment is less than ₹ 50,000.
(a) Inter-state transfer of goods by principal to job worker
(b) Inter-state transfer of handicraft goods by a person exempted from obtaining registration
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

Question 123.
E-Way Bill is mandatory in case of movement of goods of consignment value exceeding ₹ 50,000. This movement should be
(a) In relation to a supply
(b) For reasons other than supply
(c) Due to inward supply from an un-registered person
(d) Any of the above
Answer:
(d) Any of the above

Question 124.
If goods are supplied by an unregistered supplier to a registered known recipient, movement shall be caused by
(a) Supplier
(b) Mediator
(c) Such recipient
(d) Transporter
Answer:
(c) Such recipient

Question 125.
As regards information furnished in E-Way Bill ……….
(a) Part A to be furnished by registered person who is causing movement of goods
(b) Part B to be furnished by the person who is transporting the goods
(c) Both (a) &. (b)
(d) None of the above
Answer:
(c) Both (a) &. (b)

Question 126.
If the e-way bill has been generated on 14th March, 2020 at 23:58 Hours, the first day would end on …………
(a) Midnight (14-15 March)
(b) Midnight (15-16 March)
(c) 15th March, 2020 at 23:58 Hrs.
(d) 15th March, 2020 at 23:57 Hrs.
Answer:
(b) Midnight (15-16 March)

Question 127.
Consolidated e-way bill is generated in FORM ………… on the common portal prior to movement of goods.
(a) EWB-01
(b) EWB-02
(c) EWB-03
(d) None of these
Answer:
(b) EWB-02

Question 128.
Where the goods are transported by railways, which of the following is true
(a) Railway should carry e-way bill along with the goods
(b) E-way bill is not generated at all.
(c) Railway shall deliver goods on the basis of invoice
(d) Railways shall not deliver goods unless the e-way bill is produced at the time of delivery.
Answer:
(d) Railways shall not deliver goods unless the e-way bill is produced at the time of delivery.

Question 129.
KMB Traders, registered under GST in Delhi, provided the following information of a consignment which is to be supplied to Mumbai:-

	Particulars	(₹ Amt.)
(i)	Taxable value of sup­plies indicated on tax invoice	30,000
(ii)	Value of Exempted sup­plies	10,000
(iii)	Value of goods to be sent to Job worker on delivery challan	21,600

The Consignment value for generating e-way bill for inter-supply of Goods is …………  if the rate of tax on taxable goods to be 18%.
(a) ₹ 61,600
(b) ₹ 51,600
(c) ₹ 57,000
(d) None of these
Answer:
(c) ₹ 57,000

(i)	Taxable Value of Supplies	30,000
	Add: GST @ 18%	5,400
		35,400
(ii)	Value of Exempt supplies	–
(iii)	Value of Goods to be sent to job workers on delivery challan	21,600
	Consignment Value For Generating E-way Bill	57,000

Question 130.
As per Section 122(l)(xiv) of CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill) shall be liable to penalty of :
(a) ₹ 10,000
(b) Tax sought to be evaded (wherever applicable)
(c) Greater of (a) or (b)
(d) Lower of (a) or (b)
Answer:
(c) Greater of (a) or (b)

Question 131.
As per Rule 138(14) of CGST Rules, 2017, no e-way bill is required to be generated, where the goods are being transported from the place of the businessof the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by ………. issued in accordance with Rule 55.
(a) Less than distance of 10 Kms., invoice
(b) Less than distance of 10 Kms., delivery challan
(c) Up to a distance of 20 Kms., invoice
(d) Up to a distance of 20 Kms., delivery challan
Answer:
(d) Up to a distance of 20 Kms., delivery challan

Question 132.
Which one of the following is required to file GSTR 1 under section 37 of CGST Act, 2017
(a) Casual Taxable Person
(b) Input Service Provider
(c) Non-Resident Taxable Person
(d) Person paying tax under Composition Scheme
Answer:
(a) Casual Taxable Person

Question 133.
All the GST returns are to be filed online. These can be filed using the method:
(a) GST Portal
(b) Offline utilities provided by GSTN
(c) GST suvidha providers
(d) Any of the above
Answer:
(d) Any of the above

Question 134.
Input Service Distributor shall file the return in GSTR-6 for the input service distributed by :
(a) 10th of the next month
(b) 18th of the next month
(c) 13th of the next month
(d) 20th of the next month
Answer:
(c) 13th of the next month

Question 135.
Mr. Pandit is engaged in trading of gifts articles and his annual turnover will exceeds ₹ 200 lakh. The due date for filing annual return would be …….. of the following financial year.
(a) 31st October
(b) 31st December
(c) 30th September
(d) 30th November
Answer:
(b) 31st December

Question 136.
GSTR1 cannot be filed within ….. of the month
(a) 10th to 13th
(b) 10th to 15th
(c) 11th to 15th
(d) None of the above
Answer:
(c) 11th to 15th

Question 137.
GSTR 1 of the month November has to be filed by ……….
(a) 10th of November
(b) 10th of December
(c) 11th of November
(d) 11th of December
Answer:
(b) 10th of December

Question 138.
The GST council has decided to introduce a new return filing system from April 2020. In the new GST return system, there will be main components to the new return
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three

Question 139.
In new GST Return system, effective from April 2020, the returns included
(a) Main Return (FORM GST RET-1)
(b) Annexure (FORM GST ANX-1)
(c) Annexure (FORM GST ANX-2)
(d) All of the above.
Answer:
(d) All of the above.

Question 140.
As a measure of easing the compliance requirement for small taxpayers, GSTR-1 has been allowed to be filed by small taxpayers with aggregate annual turnover up to in the preceding financial year or the current financial year.
(a) Quarterly, ₹ 1.5 Crore
(b) Monthly, ₹ 1.5 Crore
(c) Quarterly, ₹ 2 Crore
(d) Half Yearly, ₹ 2 Crore
Answer:
(a) Quarterly, ₹ 1.5 Crore

Question 141.
In GSTR-1, Invoice-wise details of all invoices is not required in Case of :
(a) Inter-State Supplies made to registered persons. (B2B Supplies)
(b) Intra-State supplies made to registered persons (B2B supplies)
(c) Inter-State Supplies made to unregistered persons with invoice value exceeding ₹ 2,50,000 (B2C supplies)
(d) Inter-State B2C supplies with invoice value upto ₹ 2,50,000.
Answer:
(d) Inter-State B2C supplies with invoice value upto ₹ 2,50,000.

Question 142.
Non-resident taxable person is required to provide details in the return for non-resident foreign taxable person in the Return Form No.:
(a) GSTR-3
(b) GSTR-5
(c) GSTR-8
(d) None of the above
Answer:
(b) GSTR-5

Question 143.
Section 38 of CGST Act, 2017 is related with the details of inward supplies of goods/services in form
(a) GSTR 1
(b) GSTR 2
(c) GSTR 3
(d) GSTR 4
Answer:
(b) GSTR 2

Question 144.
The Proper Officer may make the best judgment assessment of the registered person where he fails to file general return under section 39 or final return under section 45 even after notice given under section 46 of the CGST Act, 2017 within ………. years from the due date of annual return of the period to which the tax not paid relates.
(a) 5
(b) 3
(c) 2
(d) 1
Answer:
(b) 3

Question 145.
GSTR 1 signifies the whilst GSTR 2 signifies the …………
(a) Tax Liability, ITC availability
(b) Tax Liability, Tax Payable
(c) ITC available, Tax Liability
(d) Tax Paid, Tax Payable
Answer:
(a) Tax Liability, ITC availability

Question 146.
AS regards GSTR 1, in case of B2C interstate supplies, the state-wise consolidated details are to be uploaded if
(a) Invoices > ₹ 2,50,000
(b) Invoices < ₹ 2,50,000
(c) Invoices >= ₹ 2,50,000
(d) Invoices <= ₹ 2,50,000
Answer:
(d) Invoices <= ₹ 2,50,000

Question 147.
The due dates of filing GSTR-3B Return for the months October, 2019 to March, 2020 is :
(a) 10th day of succeeding month
(b) 11th day of succeeding month
(c) 15th day of succeeding month
(d) 20th day of succeeding month
Answer:
(d) 20th day of succeeding month

Question 148.
In case of composition supplier, the registered person will furnish a statement in FORM containing details of payment of self-assessed tax, for every quarter by of the month succeeding such quarter.
(a) GST CMP-08, 15th day
(b) GST CMP-08, 18th day
(c) GST CMP-04, 15th day
(d) GST CMP-04, 18th day
Answer:
(b) GST CMP-08, 18th day

Question 149.
The registered person paying composition tax shall discharge his liability towards tax or interest payable by :
(a) Debiting the Electronic Cash Ledger
(b) Debiting the Electronic Credit ledger
(c) Either (a) or (b)
(d) Both (a) and (b)
Answer:
(a) Debiting the Electronic Cash Ledger

Question 150.
A simplified monthly tax return has been prescribed in for a NRTP for every calendar month or part thereof.
(a) GSTR-2
(b) GSTR-3
(c) GSTR-4
(d) GSTR-5
Answer:
(d) GSTR-5

Question 151.
What is the last date of furnishing details in GSTR-5
(a) Within 20 days after the end of the Calendar Month
(b) Within 7 days after the last day of validity period of the registration
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(c) Earlier of (a) and (b)

Question 152.
The Input service Distributor (ISD) is required to file only a monthly return in Form………electronically through the common portal.
(a) GSTR-3
(b) GSTR-4
(c) GSTR-5
(d) GSTR-6
Answer:
(d) GSTR-6

Question 153.
How many number of digits of HSN Code is required, if the Annual Turnover in the preceding financial year is more than ₹ 1.5 Crore and up to ₹ 5 Crore
(a) Nil
(b) 2
(c) 3
(d) 4
Answer:
(b) 2

Question 154.
What is the last date of filing return (GSTR-5) by non-resident taxable persons
(a) Within 20 days after the end of the calendar month
(b) Within 7 days after the last day of validity period of the registration
(c) Earlier of (a) & (b)
(d) Later of (a) & (b)
Answer:
(c) Earlier of (a) & (b)

Question 155.
The details of GSTR-6 by 15D should be furnished after 10th of the month and before ………. of the month succeeding the tax period.
(a) 11th
(b) 13 th
(c) 15 th
(d) 20th
Answer:
(b) 13 th

Question 156.
A monthly return in form ………… electronically through the common portal, shall be furnished by the tax Deductors at source.
(a) GSTR-5
(b) GSTR-6
(c) GSTR-7
(d) GSTR-8
Answer:
(c) GSTR-7

Question 157.
A TDS Certificate is required to be issued by the deductor in FORM to the deducted, within days of crediting the amount to the Government.
(a) GSTR-6, 5 days
(b) GSTR-6A, 7 days
(c) GSTR-7, 7 days
(d) GSTR-7A, 5 days
Answer:
(d) GSTR-7A, 5 days

Question 158.
A person paying tax under composition scheme is required to file the Annual Return in Form .
(a) GSTR-8
(b) GSTR-9
(c) GSTR-9A
(d) GSTR-9B
Answer:
(c) GSTR-9A

Question 159.
The Central Government vide Notification No. 47/2019-CT dated 9-10-2019 has made the filing of annual return under Section 44(1) for FY 2017-18 and FY 2018-19 optional for small taxpayers whose aggregate turnover in a financial year does not exceed and who have not filed the said return before the due date.
(a) ₹ 1 Crore
(b) 11.5 Crore
(c) ₹ 2 Crore
(d) ₹ 2.5 Crore
Answer:
(c) ₹ 2 Crore

Question 160.
The annual return under section 44 shall furnish an annual return for every financial year in FORM ‘
(a) GSTR6
(b) GSTR7
(c) GSTR8
(d) GSTR9
Answer:
(d) GSTR9

Question 161.
What is the last date of filing annual return under section 44 of CGST Act, 2017
(a) 31 st December of same financial year
(b) 31st December of previous financial year
(c) 31 st December of succeeding financial year
(d) 10th September of succeeding financial year
Answer:
(c) 31 st December of succeeding financial year

Question 162.
What is the date of filing final return [GSTR 10]?
(a) Within 3 months of the date of can-cellation
(b) Within 3 months of the date of order of cancellation
(c) Earlier of (a) & (b)
(d) Later of (a) & (b)
Answer:
(d) Later of (a) & (b)

Question 163.
What is the late fee for delay in furnishing of return required under section 37/38/39
(a) ₹ 100 for every day during which such failure continues
(b) ₹ 5,000
(c) Lower of (a) & (b)
(d) Higher of (a) & (b)
Answer:
(c) Lower of (a) & (b)

Question 164.
Any registered person who fails to furnish the return required under section 44 (Annual Return) by the due date, shall be liable to pay a late fee of:
I ₹ 100 per day during which such failure continues
II ₹ 5,000
III 0.25% of Turnover
IV 1% of Turnover
(a) Lower of I & II
(b) Lower of I & III
(c) Lower of I & IV
(d) Lower of II & IV
Answer:
(b) Lower of I & III

Question 165.
A notice in FORM ……….. Shall be……… issued, electronically, to a registered person who fails to furnish return under section 39/44/45/52.
(a) GSTR 2
(b) GSTR2A
(c) GSTR 3
(d) GSTR3A
Answer:
(d) GSTR3A

Question 166.
If there is no business activity in the tax period:
(a) Nil return is to be filed
(b) No return is to be filed
(c) Return may be filed on receipt of notice
(d) None of the above
Answer:
(a) Nil return is to be filed

Question 167.
In case of GSTR 1, outward taxable B2B supplies are to be uploaded with in-voice-wise details of all supplies in case of:
(a) Inter-state supplies
(b) Intra-state supplies
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Question 168.
CPIN stands for
(a) Common Payment Interface Net-work
(b) Cloud Payment Interface Network
(c) Common Portal Identification Number
(d) Common Public Interface Network
Answer:
(c) Common Portal Identification Number

Question 169.
The deposit towards tax, interest, penalty, fee or any other amount by a person can be made by:
(a) Internet Banking
(b) Using credit or debit Cards
(c) NEFT/RTGS
(d) Any of the above
Answer:
(d) Any of the above

Question 170.
Electronic cash ledger is maintained on/by .
(a) GST Portal
(b) CBIC
(c) Ministry of Finance
(d) Registered person on himself
Answer:
(a) GST Portal

Question 171.
The input tax credit as self-assessed in the return of a registered person shall be ………… to his electronic ledger.
(a) Debited, Credit
(b) Credited, Credit
(c) Debited, debit
(d) Credited, debit
Answer:
(b) Credited, Credit

Question 172.
Which one of the following is a minor head in Electronic Cash ledger
(a) Tax
(b) Interest-and Penalty
(c) Fee
(d) All of the above
Answer:
(d) All of the above

Question 173
Which one of the following is not a major head in Electronic cash ledger
(a) IGST
(b) CGST
(c) SGST/UTGST
(d) Tax
Answer:
(d) Tax

Question 174.
Rule 87(3) of CGST Rules allows deposit through over the counter payment through authorized banks for deposits upto ₹ per challan per tax period,by Cash, cheque or demand draft.
(a) 5,000
(b) 10,000
(c) 15,000
(d) 25,000
Answer:
(b) 10,000

Question 175.
The electronic credit ledger is maintained in FORM for each registered person eligible for ITC under the Act on the common portal.
(a) GST PMT-01
(b) GST PMT-02
(c) GST PMT-03
(d) GST PMT-04
Answer:
(b) GST PMT-02

Question 176.
The Challan in FORM GST PMT-06 generated at the common portal shall be valid for a period of days.
(a) 5
(b) 8
(c) 15
(d) 25
Answer:
(c) 15

Question 177.
The Challan Identification Number (C/A/) is digit number.
(a) 10
(b) 14
(c) 17
(d) 20
Answer:
(c) 17

Question 178.
The Electronic Liability Register specified under section 49(7) of the CGST Act, 2017 as per Rule 85 of the CGST Rules, 2017 shall be maintained in Form for each person liable to pay tax, penalty, late fees or any other amounts payable by him on the common portal which shall be debited to the said register.
(a) GST PMT-10
(b) GST PMT-01
(c) GST PMT-05
(d) GST PMT-02
Answer:
(b) GST PMT-01

Question 179.
A taxable person who makes an excess claim of input tax credit or excess reduction in output tax liability shall pay interest at such rate not exceeding :
(a) 1896
(b) 24%
(c) 20%
(d) 2196
Answer:
(b) 24%

Question 180.
When a person liable to pay tax under GST claims excess ITC or excess reduction in output tax liability, he shall pay interest not exceeding:
(a) 1296
(b) 1396
(c) 2496
(d) 2196
Answer:
(c) 2496

Question 181.
Modified Section 51 of the CGST Act, 2017 mandates deduction of tax at source (TDS)at a specified percentage by the Government or Local Authorities from the payments made or credited to the supplier where the value of supply under a contract exceeds specified limit. State the specified percentage of TDS (Total) and the threshold limit of taxable goods or services or both under the contract
(a) 0.596, ₹ 1,00,000 .
(b) 0.7596, ₹ 1,50,000
(c) 296, ₹ 5,00,000
(d) 2%,₹ 2,50,000
Answer:
(d) 2%,₹ 2,50,000

Question 181 A.
What is the time limit under which an operator has to pay tax collected to the government under section 52 of CGST Act, 2017
(a) 5 days
(b) 7 days
(c) 10 days
(d) 15 days
Answer:
(c) 10 days

Question 18IB.
Every operator who collects the amount specified in section 52(1) furnish E-statement within after the end of such month.
(a) 5 days
(b) 7 days
(c) 10 days
(d) 15 days
Answer:
(c) 10 days

Question 181C.
What is the maximum penalty for non-furnishing of the details required by Deputy Commissioner under CGST Act
(a) ₹ 5,000
(b) ₹ 10,000
(c) ₹ 25,000
(d) None of these
Answer:
(c) ₹ 25,000

Question 181D.
ABC Limited (Registered supp¬lier of goods) has made taxable supplies ₹ 25,00,000 in June 2020 through ECO. ECO has returned goods amounting to ₹ 3,00,000 to ABC Limited you during June 2020. What will be the amount of TCS under CGST
(a) ₹ 25,000
(b) ₹ 22,000
(c) ₹ 3,000
(d) None of these
Answer:
(b) ₹ 22,000

Question 18IE.
Which of the following has the power to collect TCS as per section 52 of CGST Act, 2017
(a) Supplier
(b) Recipient
(c) Government Agencies
(d) E-Commerce Operator
Answer:
(d) E-Commerce Operator

Question 181F.
An ECO has collected tax in the form of TCS on 2nd January 2020. What is the last date within which such amount of TCS has to be remitted into the Government’s treasury
(a) 10-1-2020
(b) 20-1-2020
(c) 10-2-2020
(d) 20-2-2020
Answer:
(c) 10-2-2020

Question 181G.
In respect of TCS, who will claim credit
(a) ECO
(b) Supplier who has supplied goods/ services
(c) Recipient of goods/services
(d) None of these
Answer:
(b) Supplier who has supplied goods/ services

Question 181H.
Any person who fails to furnish the information required by the notice served under section 52(12) shall be liable to penalty. What is the maximum penalty provided under CGST Act, 2017
(a) ₹ 5,000
(b) ₹ 10,000
(c) ₹ 25,000
(d) ₹ 50,000
Answer:
(c) ₹ 25,000

Question 181-I.
Mr. X is a supplier and is selling his own products through a website owned by him. Which of the following statements is correct in this regard
(a) As per section 2(44) & 2(45) of CGST Act, 2017, Mr. X will come under the definition of ECO.
(b) Section 52 does not apply to Mr. X as he is selling his own product through website.
(c) These transactions will be liable to GST at the prevailing tax rates.
(d) All of the above
Answer:
(d) All of the above

Question 181J.
Rajesh, a registered dealer, purchases goods from different registered suppliers. He sells them through a website owned and maintained by him under his own building. In respect of this information, which of the following statements is incorrect
(a) There are two transactions- one where Rajesh purchase the goods and the other where he sells’it
(b) GST is leviable on first transaction
(c) Second transaction is his own supply. So, neither he will collect GST nor he will collect tax at source
(d) TCS provisions are not applicable
Answer:
(c) Second transaction is his own supply. So, neither he will collect GST nor he will collect tax at source

Question 181K.
In which FORM, the proper officer issues a certificate of registration while granting registration to E-commerce operator, who is required to collect tax at source under section 52
(a) FORM GST-REG 04
(b) FORM GST-REG 05
(c) FORM GST-REG 06
(d) None of these
Answer:
(c) FORM GST-REG 06

Question 181L.
The Commissioner has served a notice to an E-Commerce Operator requiring details relating to stock of goods held in the warehouse for supplies. The ECO shall be liable to pay penalty up to ……… in CGST Act.
(a) ₹ 5,000
(b) ₹ 10,000
(c) ₹ 25,000
(d) ₹ 50,000
Answer:
(c) ₹ 25,000

Question 181M.
In which form the operator, collecting tax as TCS, is liable to deposit such amount with the government
(a) GSTR-06
(b) GSTR-07
(c) GSTR-08
(d) GSTR-09
Answer:
(c) GSTR-08

Question 182.
Who must perform the function of Tax Collection at Source (TCS) under GST
(a) E-Commerce Operator
(b) Transport Operator
(c) Job Workers
(d) Input Service Distributor
Answer:
(a) E-Commerce Operator

Question 182A.
Tax deduction at source is also known as ……….
(a) Withholding Tax
(b) Advance Tax
(c) Tax collected at source
(d) None of the above
Answer:
(a) Withholding Tax

Question 182B.
What is the category of tax which is collected by the ECO when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the ECO.
(a) TDS
(b) TCS
(c) Pay as you earn
(d) Withholding tax
Answer:
(b) TCS

Question 182C.
The amount of tax deducted/collected is reflected in the
(a) Electronic cash ledger of deductee/ supplier
(b) Electronic cash ledger of deductor/ recipient
(c) Electronic Credit ledger of deductor
(d) Electronic Credit ledger of deductor
Answer:
(a) Electronic cash ledger of deductee/ supplier

Question 182D.
As per section 51, the deductor has to detect tax from the payment made or credited to the supplier of taxable goods of services or both, where the total value of such supply, under a contract exceeds
(a) ₹ 1,00,000
(b) ₹ 2,50,000
(c) ₹ 5,00,000
(d) ₹ 10,00,000
Answer:
(b) ₹ 2,50,000

Question 182E.
Total value of taxable supply (including 18% GST) is ₹ 2,95,000 by ABC Enterprises to Municipal Corporation of Delhi. What will be the amount of tax to be paid as per section 51 of CGST Act, 2017
(a) ₹ 2,950
(b) ₹ 5,900
(c) ₹ 5,000
(d) Not applicable as value of supply does not exceed ₹ 2,50,000.
Answer:
(d) Not applicable as value of supply does not exceed ₹ 2,50,000.

Question 182F.
A public sector undertaking has supplied services to other public sector undertaking for ₹ 8,00,000 (excluding GST). How much TDS shall be deducted in this transaction
(a) ₹ 8,000
(b) ₹ 16,000
(c) 2% of ₹ 8,00,000 + GST
(d) TDS is not applicable
Answer:
(d) TDS is not applicable

Question 182G.
What is the rate of TDS under CGST Act, 2017
(a) 1%
(b) 2%
(c) 5%
(d) 10%
Answer:
(a) 1%

Question 182H.
Who can never be deductor of TDS under GST laws
(a) Governmental agencies
(b) Local authority
(c) Public Sector Undertaking
(d) None of these
Answer:
(c) Public Sector Undertaking

Question 182-I.
On what value TDS needs to be deducted
(a) Invoice value including GST
(b) Invoice value excluding GST
(c) Invoice value in excess of ₹ 2,50,000
(d) None of the above
Answer:
(d) None of the above

Question 182J.
The amount deducted as Tax under section 51 shall be paid to the government by the deductor within days after the end of the month in which such deduction is made.
(a) 5
(b) 7
(c) 10
(d) 15
Answer:
(c) 10

Question 182K.
In which FORM, the deductor furnishes TDS certificate to the deductee
(a) GSTR5A
(b) GSTR6A
(c) GSTR7A
(d) GSTR8A
Answer:
(c) GSTR7A

Question 182L.
Which of the following particulars are mentioned in GSTR-7A (TDS Certificate)
(a) Contract Value
(b) Rate of deduction and amount deducted
(c) Amount paid to the Government
(d) All of the above
Answer:
(c) Amount paid to the Government

Question 182M.
What is the levy of late fees for not furnishing certificate to deductee within 5 days
(a) ₹ 100 per day
(b) ₹ 5,000
(c) Higher of (a) or (b)
(d) Lower of (a) or (b)
Answer:
(c) Higher of (a) or (b)

Question 182N.
The detector would be liable to pay tax deducted plus interest at the rate ……… if deducted amount is not deposited with the government.
(a) 12%
(b) 15%
(c) 18%
(d) 20%
Answer:
(c) 18%

Question 182-O.
ABC Limited has supplied goods to local authority for ₹ 10,79,700 (inclusive of GST @18%). The TDS was made on 25-12-2019 and is deposited on 28-3-2020. The interest payable for delay in payment is …….
(a) ₹ 18,300
(b) ₹ 1,830
(c) ₹ 702
(d) ₹ 183
Answer:
(c) ₹ 702

Question 182P.
Which of the following statements is correct regarding registration of persons liable to deduct tax at source
(a) Deductor has to register compulsorily without any threshold limit
(b) Deductor has a privilege of obtaining registration without requiring PAN
(c) Deductor can claim registration using TAN issued under the Income-tax Act.
(d) All of the above
Answer:
(d) All of the above

Question 182Q.
As per Rule 66 of CGST Rules, 2017, every detector shall furnish a return in ……….. electronically.
(a) FORM GSTR-5
(b) FORM GSTR-6
(c) FORM GSTR-7
(d) FORM GSTR-8
Answer:
(c) FORM GSTR-7

Question 183.
The CIN, generated by the banks, is a 17 digit number that is:
(a) 14-digt CPIN plus 3-digit Bank Code
(b) 14 digit BRN plus 3 digit Bank Code
(c) 14 digit E-FPB plus 3 digit CPIN
(d) 14 digit Bank code plus 3 digit CPIN
Answer:
(a) 14-digt CPIN plus 3-digit Bank Code

Question 184.
If a taxable person who makes an undue or excess claim of ITC, interest is charged at the rate not exceeding
(a) 18%p.a.
(b) 20% p.a.
(c) 24% p.a.
(d) None of the above
Answer:
(c) 24% p.a.

Question 185.
Consider the following:

Due date of Payment of Tax	20-5-2019
Actual date of payment of tax	31-7-2019
GST Payable (₹)	1,50,000

The interest liability will be for…. days and shall be ……….
(a) 72, ₹ 7,082
(b) 71, ₹ 6,984
(c) 73, ₹ 7,180
(d) None of the above
Answer:
(a) 72, ₹ 7,082

Question 186.
Tax deduction at source (TDS) is similar to “Pay as you earn” scheme and is also known as;
(a) Holding Tax
(b) Withholding Tax
(c) Advance Tax
(d) Prepaid Tax
Answer:
(b) Withholding Tax

Question 187.

Due Date for deposit of TDS	10-1-2020
Actual Date of deposit of TDS	28-3-2020
Amount of TDS (₹)	20,000

The interest on delay in deposit of TDS will be @ ………. for ……….. days amounting to
(a) 18%, 78, ₹ 767
(b) 15%, 78, ₹ 639
(c) 18%, 79, ₹ 777
(d) 18%, 77, ₹ 758
Answer:
(b) 15%, 78, ₹ 639

Question 187.
Section 54 states that any person claiming a refund may file an application in FORM ……….. Electronically through
GST Portal.
(a) GST RFD-01
(b) GST RFD-02
(c) GST RFD-03
(d) GST RFD-04
Answer:
(a) GST RFD-01

Question 188.
Refund order should be made by the Proper Officer within …….days from the date of receipt of application which is complete in all respects and where the Proper Officer is satisfied with the amount so refundable is payable to the applicant, he shall make an order in Form which shall be credited to the account of the applicant.
(a) 45, GST-RFD-05
(b) 90, GST-RFD-04
(c) 60, GST-RFD-06
(d) 90, GST-RFD-06
Answer:
(a) 45, GST-RFD-05

Question 190.
According to section 54 of the CGST Act, 2017, any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of …………. from the relevant date.
(a) One year
(b) Two years
(c) Three years
(d) Four years
Answer:
(b) Two years

Question 191.
Where the amount claimed as refund is …………… it shall not be necessary for the applicant to furnish any documentary and other evidences subject to certain conditions.
(a) Less than ₹ 1 Lakh
(b) Up to ₹ 1 Lakh
(c) Less than ₹ 2 Lakh
(d) Up to ₹ 2 Lakh.
Answer:
(c) Less than ₹ 2 Lakh

Question 192.
As per Rule 92(5) of CGST Rules, where the proper officer is satisfied that the amount refundable is not payable to the applicant under Section 54(8), he shall make on order in FORM and issue a payment order in FORM for the amount of refund to be credited to the consumer welfare fund.
(a) GST RFD-06, GST RFD-05
(b) GST RFD-05, GST RFD-06
(c) GST RFD-02, GST RFD-03
(d) GST RFD-04, GST RFD-05
Answer:
(a) GST RFD-06, GST RFD-05

Question 193.
As per Section 54(6) of CGST Act, provisional refund of ……… of the amount claimed in case of zero rated supply of goods or services or both.
(a) 75%
(b) 80%
(c) 85%
(d) 90%
Answer:
(d) 90%

Question 194.
Under Rule 91(2) of CGST Rules, the proper officer shall make an order in FORM, sanctioning the amount of refund due on a provisional basis within a period from the date of acknowledgement under Rule 90(1 )/(2).
(a) GST RFD-02, not exceeding 5 days
(b) GST RFD-02, not exceeding 7 days
(c) GST RFD-03, not exceeding 5 days
(d) GST RFD-04, not exceeding 7 days
Answer:
(d) GST RFD-04, not exceeding 7 days

Question 195.
If the amount of Refund is ₹ 5,00,000, date of making application and date of grant of refund are 1-10-2019 and 25-12 – 2019, the interest payable as per provisions of section 56 shall be:
(a) ₹ 3,250
(b) ₹ 3,100
(c) ₹ 2,049
(d) ₹ 2,000
Answer:
(c) ₹ 2,049

Question 196.
As per Rule 94, where any interest is due and payable to the applicant under Section 56, the proper officer shall make an order along with a payment order in FORM GST .
(a) RFD-03
(b) RFD-04
(c) RFD-05
(d) RFD-06
Answer:
(c) RFD-05

Question 197.
An acknowledgement for the receipt of the application for refund shall be issued in FORM GST
(a) RFD-02
(b) RFD-03
(c) RFD-04
(d) RFD-05
Answer
(a) RFD-02

Question 198.
Where any amount claimed as refund is rejected under Rule 92, the amount debited, to the extent of rejection, shall be ………. to the electronic credit ledger by an order made in FORM GST .
(a) Re-debited, PMT-03
(b) Re-debited, RFD-03
(c) Re-credited, PMT-03
(d) Re-Credited, RFD-03
Answer:
(c) Re-credited, PMT-03

Question 199.
The claim of UN bodies and other entities notified under section 55 on their purchases, has to be made before the expiry of months from the last day of the in which such supply was received.
(a) 5, Year
(b) 5, Quarter
(c) 6, Year
(d) 6, Quarter
Answer:
(d) 6, Quarter

Question 200.
Section 56 of the CGST Act, 2017 specifies that if any tax ordered to be refunded after the order of an Appellate Authority is not refunded within 60 days from the date of application filed conse-quent to such order, interest as such rate not exceeding shall be payable in respect of such refund.
(a) 90%
(b) 6%
(c) 12%
(d) 18%
Answer:
(b) 6%

Question 201.
Consumer Welfare Fund has been constituted by the Government of India and as per section 57 of the CGST Act, 2017, the following amounts will be credited to this fund :
I Amount referred to in section 54(5) II Refund of tax in pursuance of section 77
III Income from investment of the fund amount
IV Refund of unutilized input tax credit
(a) II and III
(b) I and III
(c) I, II and IV
(d) All the four above
Answer:
(b) I and III

Question 202.
Where the refund arises out of an appeal, and the same is not refunded within 60 days from date of receipt of application, interest shall be payable at the rate of
(a) 5%
(b) 6%
(c) 9 %
(d) 12%
Answer:
(c) 9 %

Question 203.
Where the amount claimed as refund is……… it shall not be necessary for the applicant to furnish any documentary and other evidences to
(a) Less than ₹ 1 Lakh
(b) Up to₹ 1 Lakh
(c) Less than ₹ 2 Lakhs
(d) Up to ₹ 2,00,000
Answer:
(c) Less than ₹ 2 Lakhs

Question 204.
Section 56 of the CGST Act, 2017 states that claim of refund arising from an order passed by an adjudicating authority or Appellate Authority or an Appellate Tribunal or Court which is not being refund with in ……….days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding …….per annum, shall be payable in respect of such refund.
(a) 30 days, 6%
(b) 30 days, 9%
(c) 60 days, 9%
(d) 60 days, 6%
Answer:
(d) 60 days, 6%

Question 205.
What is the time limit for sanction of refund order
(a) 30 days from the date of receipt of application
(b) 30 days from the date of sanction by proper officer
(c) 60 days from the date of receipt of application
(d) 60 days from the date of sanction by proper officer
Answer:
(c) 60 days from the date of receipt of application

Question 206.
As per section 564(14) of CGST Act, 2017, no refund shall be paid to an applicant, if the amount is:
(a) Less than ₹ 100
(b) Not more than ₹ 100
(c) Less than ₹ 1,000
(d) Less than ₹ 5,000
Answer:
(c) Less than ₹ 1,000

Question 207.
As per section 54(5) of CGST Act, 2017, if on receipt of any application for refund, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the ……
(a) Applicant
(b) Consumer Welfare Fund
(c) Government’s Account
(d) None of the above
Answer:
(b) Consumer Welfare Fund

Question 208.
Consider the following information:

ITC availed on Inputs	3,60,000
ITC availed on Input Services	36,000
Turnover of inverted rated supply of goods (GST @ 5%)	30,00,000
Turnover of other supplies of goods	10,00,000

Determine the maximum amount of refund admissible on account of inverted duty structure.
(a) ₹ 1,00,000
(b) ₹ 11,20,000
(c) ₹ 3,24,000
(d) ₹ 3,60,000
Answer:
(b) ₹ 11,20,000
The maximum amount of refund admissible on account of inverted duty structure is computed as under:

(a)	Net ITC i.e. input tax credit availed on inputs during the rel­evant period	3,60,000
(b)	Turnover of inverted rated supply of goods	30,00,000
(c)	Adjusted Total Turnover [turnover of Inverted Rated Supply of goods + Turnover of other supplies of goods] [30,00,000 + 10,00,000]	40,00,000
(d)	Tax payable on such inverted rated supply of goods [30 Lakh×5%]	1,50,000
(e)	Maximum Refund = [(b -5- c) × a] – d	1,20,000

Question 209.
What is the rate of interest, if refund is not paid within 60 days from the receipt of application
(a) 5%
(b) 6%
(c) 9%
(d) 12%
Answer:
(b) 6%

Question 210.
Where the refund is as a consequence of adjudicating/Appellate authority order, then rate of interest is ………. if refund is not paid within 60 days from the receipt of application.
(a) 5%
(b) 6 %
(c) 9%
(d) 12 96
Answer:
(c) 9%

Question 211.
As per the definition of Audit under section 2(13) of CGST Act, 2017, Audit means examination of
(a) Records
(b) Returns
(c) Other documents maintained or furnished
(d) All of the above
Answer:
(d) All of the above

Question 212.
Under GST, Audit is done with the objective of ……….
(a) Verification of various aspects
(b) To assess the compliances fulfilled
(c) Both (a) & (b)
(d) Neither (a) nor (b)
Answer:
(c) Both (a) & (b)

Question 213.
Prevention of revenue leakage is one of the objectives of GST Audit. This objective is served by the verification of correctness of:
(a) Turnover declared
(b) Taxes paid & ITC availed
(c) Refund claimed
(d) All of the above
Answer:
(d) All of the above

Question 214.
The registered person shall be informed by way of a notice not less than ……….working days prior to conduct of audit by tax authorities Under Section 65 of CGST Act.
(a) 7
(b) 10
(c) 15
(d) 21
Answer:
(c) 15

Question 215.
If the value is not correctly declared/ excess ITC availed, then which of the following audit is conducted
(a) Mandatory audit by CA
(b) Departmental Audit
(c) Special audit
(d) None of the above.
Answer:
(c) Special audit

Question 216.
What is the time period of special audit under Section 66
(a) 75 days
(b) 80 days
(c) 90 days
(d) 100 days
Answer:
(c) 90 days

Question 217.
The registered person’s accounts have already been audited under other provisions of CGST Act or any other law for the time being-in-force. In that case, the special audit under Section 66 of CGST Act:
(a) Can be done
(b) Cannot be done
(c) Is not required
(d) Can be done depending upon Turnover.
Answer:
(a) Can be done

Question 218.
What is the maximum period for which the audit by tax authorities under section 65 can be extended by the Commissioner
(a) 3 Months
(b) 4 Months
(c) 5 Months
(d) 6 Months
Answer:
(d) 6 Months

Question 219.
The audit under Section 65 may be conducted by the officers at the:
(a) Place of business of the registered person
(b) Office of registered person
(c) Either (a) or (b)
(d) None of the above
Answer:
(c) Either (a) or (b)

Question 220.
The findings of audit under Section 65 is to be informed to taxable person within ………..days of audit.
(a) 15
(b) 30
(c) 45
(d) 60
Answer:
(b) 30

Question 221.
The section 35(5) stipulates that every registered person whose turnover during a financial year exceeds the prescribed limit, shall get his accounts audited by a Chartered Accountant or Cost Accountant. As per Rule 80(3), the prescribed limit is:
(a) ₹ 1 Crore
(b) ₹ 2 Crore
(c) ₹ 5 Crore
(d) None of the above
Answer:
(b) ₹ 2 Crore

Question 222.
The Reconciliation statement, duly certified in prescribed form is furnished electrically along with audited annual accounts, if the aggregative turnover during financial year exceeds
(a) ₹ 1 Crore
(b) ₹ 2 Crore
(c) ₹ 5 Crore
(d) None of the above
Answer:
(b) ₹ 2 Crore

Question 223.
The period of audit to be conducted under section 65 shall be
(a) A financial year
(b) Multiples of financial year
(c) Any of (a) or (b)
(d) None of the above
Answer:
(c) Any of (a) or (b)

Question 224.
Section 65 is concerned with the audit by tax authorities. Which of the following statement is not true, in this regard
(a) The audit is conducted by the commissioner or any other officer authorised by him
(b) The audit may be conducted at the place of business of the registered person and/or in their office
(c) For this audit, general order is required only
(d) The notice of not less than 15 working days is required.
Answer:
(c) For this audit, general order is required only

Question 225.
Section 35(5) of Central Goods & Services Tax (CGST) Act, 2017 mandates that every registered person must get his accounts audited by a if his aggregated turnover during a financial year exceeds
(a) Chartered Accountant or Company Secretary, 2 Crore
(b) Chartered Accountant or Cost Accountant, 2 Crore
(c) Chartered Accountant or Company Secretary or Cost Accountant, 3 Crore
(d) Chartered Accountant, 3 Crore
Answer:
(b) Chartered Accountant or Cost Accountant, 2 Crore

Question 226.
On conclusion of audit under section 65, the proper office shall within ………. Inform the registered person whose accounts are audited.
(a) 20 days
(b) 30 days
(c) 35 days
(d) 40 days
Answer:
(b) 30 days

Question 227.
The audit by tax authorities under section 65 is required to be completed within From the date of commencement of audit. This period is extendable for a further period of a maximum of by the commissioner.
(a) 3 months, 3 months
(b) 3 months, 6 months
(c) 6 months, 3 months
(d) 6 months, 6 months
Answer:
(b) 3 months, 6 months

Question 228.
The report of audit under section 65 is to be sent by proper officer to registered person in ………
(a) GST ADT-01
(b) GST ADT-02
(c) GST ADT-03
(d) None of the above
Answer:
(b) GST ADT-02

Question 229.
Grounds which leads a commissioner to order for a special audit in case of a registered person by a communication in writing for getting his records including books of account examined and audited and by a person who ….
(a) Supplies any goods or services or both without issue of any invoice by Cost Accountant or Company Secretary
(b) Avail input tax credit with bogus invoice by Company Secretary or Cost Accountant
(c) Has not correctly declared the value or the credit availed is not within the normal limits, by a Chartered Accountant or a Cost Accountant
(d) None of the above
Answer:
(c) Has not correctly declared the value or the credit availed is not within the normal limits, by a Chartered Accountant or a Cost Accountant

Question 230.
When a special audit is directed under GST with the prior approval of commissioner, the audit report signed and certified must be submitted within days.
(a) 15
(b) 45
(c) 90
(d) 150
Answer:
(c) 90

Question 231.
When special audit is conducted by a Chartered Accountant/Cost Accountant, the remuneration shall be determined by and paid by ……….
(a) GST Council, Assessee
(b) Commissioner, Assessee
(c) Government, Assessee
(d) Commissioner, Commissioner
Answer:
(d) Commissioner, Commissioner

Question 232.
On conclusion of special audit, the registered person shall be informed of the findings of special audit in FORM:
(a) GST ADT-01
(b) GST ADT-02
(c) GST ADT-03
(d) GST ADT-04
Answer:
(d) GST ADT-04

Question 233.
The special audit under section 66, is conducted by the Chartered Accountant/ Cost Accountant, who will be nominated by:
(a) Commissioner
(b) GST Council
(c) Central Government
(d) None of these
Answer:
(a) Commissioner

Question 234.
Advance ruling means a decision provided by the to an applicant on the matter or a question specify u/ss 97(2) and 100(1) of the CGST Act, in relation of the supply of goods or services or both being undertaken by the applicant.
(a) Commissioner (Appeals)
(b) Authority or Appellate Authority
(c) Appellate Tribunal
(d) Adjudicating Authority
Answer:
(b) Authority or Appellate Authority

 

Going through the Input Tax Credit, Computation of GST Liability & Job Work – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Input Tax Credit, Computation of GST Liability & Job Work – Tax Laws CS Executive MCQs

Question 1.
Taxes paid on inward supply of is/are called as Input Taxes.
(a) Inputs
(b) Inputs and Capital Goods
(c) Inputs, Capital Goods and Services
(d) Capital Goods and Services
Answer:
(c) Inputs, Capital Goods and Services

Question 1A.
Input tax credit is available in respect of ………..
(a) goods used for personal consumption
(b) free samples
(c) services on which tax has been paid under composition levy
(d) None of the above
Answer:
(d) None of the above

Question 1B.
Which one of the following is a condition as per section 16(2) to avail ITC
(a) Possession of tax invoice
(b) Receipt of goods/services and Payment of tax to the government
(c) Filing of valid return
(d) All of the above
Answer:
(d) All of the above

Question 2.
Taxes paid under Reverse Charge Mech¬anism are:
(a) Not a part of input taxes
(b) Also a part of input taxes
(c) Part of input taxes if paid under section 10
(d) None of the above
Answer:
(b) Also a part of input taxes

Question 3.
Section 2(62) of CGST Act, 2017 specify input tax in relation to a registered person, means the Central Tax. State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both made to him but does not include:
(a) Integrated goods and service tax charged on import of goods
(b) Tax under the provisions of section 9(3) and 9(4)
(c) Tax paid under composition levy
(d) Tax under Union Territory Goods & Services Tax Act.
Answer:
(c) Tax paid under composition levy

Question 4.
A registered taxable person is eligible to obtain Input Tax Credit (ITC) as per section 16 of the CGST Act, on fulfilling of certain conditions which consists of that such person should:
(i) Be in possession of tax invoice
(ii) Have received the goods
(iii) Supplier have not paid the tax charged
(iv) Supplier have furnished the return u/s 39
(a) (i), (ii) & (iv)
(b) (i), (iii) & (iv)
(c) (i), (ii) & (iii)
(d) (i), (ii), (iii) & (iv)
Answer:
(a) (i), (ii) & (iv)

Question 5.
When the taxes paid on inputs are available as a set off against the taxes payable on outward taxable supplies, then it is called as …….
(a) Input Tax Credit
(b) Input Tax Adjustment
(c) Input Tax Benefit
(d) Blocked Credit
Answer:
(a) Input Tax Credit

Question 6.
Input Tax in relation to ………..person, means ……… charged on any supply of goods or services or both made to him.
(a) Registered; Central Tax or State Tax
(b) Unregistered; Central Tax or State Tax
(c) Registered; Central Tax or State Tax or Integrated Tax or Union Territory Tax
(d) Unregistered; Central Tax or State Tax or Integrated Tax or Union Territory Tax
Answer:
(c) Registered; Central Tax or State Tax or Integrated Tax or Union Territory Tax

Question 7.
To avail input tax credit, which of the following factors is not relevant
(a) Tax Invoice
(b) Furnishing of return by supplier
(c) Receipt of goods and services
(d) Payment by buyer (Recipient) for supply received
Answer:
(d) Payment by buyer (Recipient) for supply received

Question 8.
The term “Used in the course or furtherance of business” means
(a) It should be directly co-related to output supply
(b) It is planned to use in the course of business
(c) It is used or intended to be used in the course of business
(d) None of the above
Answer:
(c) It is used or intended to be used in the course of business

Question 9.
The amount of ITC shall be ………..
(a) Credited to the Electronic Cash Ledger
(b) Credited to the Electronic Credit Ledger
(c) Debited to the Electronic Cash Ledger
(d) Debited to the Electronic Credit Ledger
Answer:
(b) Credited to the Electronic Credit Ledger

Question 10.
As per section 16(1) of CGST Act, 2017, ITC is available:
I. Only to registered person
II. Only to unregistered person
III. Both registered and unregistered person
IV. Supplies are used in the course or furtherance of business
V. Supplies are intended to he used in the course or furtherance of business
VI. No condition of use of supply in business
Which of the following combination is correct
(a) I.IV&V
(b) II.IV&V
(c) III, IV, V & VI
(d) I, IV & VI
Answer:
(a) I.IV&V

Question 11.
If the goods are received in lots/instalment,
(a) 50% of ITC can be taken on receipt of 1 st instalment and balance 50% on receipt of last instalment
(b) ITC can be availed upon receipt of last instalment
(c) 100% ITC can be taken on receipt of 1st Instalment
(d) Proportionate ITC can be availed on receipt of each lot/instalment
Answer:
(b) ITC can be availed upon receipt of last instalment

Question 12.
As per section 16(2) of CGST Act, 2017, the registered person is entitled to the credit of any Input Tax Credit on fulfilment of conditions:
I. Possession of Tax Invoice or Debit Note
II. Receipt of goods and services
III. Payment of tax to the Government
IV. Filing of valid return under section 39
V. Filing of valid return under section 44
VI. Payment of invoice by recipient to supplier
(a) I & II
(b) I,II, III & IV
(c) I, II, III & V
(d) I, III, V & VI
Answer:
(b) I,II, III & IV

Question 12A.
Mr. Prakash has received the goods in 2 lots in respect of a single invoice. Which of the following is in accordance with the first proviso to section 16(2)?
(a) 100% ITC can be taken on receipt of 1st lot.
(b) 50% ITC can be taken on receipt of each lot
(c) 100% ITC can be availed upon receipt of last instalment.
(d) None of the above
Answer:
(c) 100% ITC can be availed upon receipt of last instalment.

Question 12B.
What is the rate of interest as per Rule 37(3) applicable in case of reversal of ITC in case of non-payment of consideration within 180 days.
(a) 5% p.a.
(b) 10% p.a.
(c) 12% p.a.
(d) 18% p.a.
Answer:
(d) 18% p.a.

Question 13.
As per Rule 36(4) of CGST Rules, w.e.f. 1-1-2020 the ITC in respect of invoices or debit notes, the details of which have not been uploaded by suppliers in GSTR-1 and not reflected in GSTR 2A of the recipient, shall not exceed of the eligible credit available in respect of uploaded invoices.
(a) 25%
(b) 20%
(c) 15%
(d) 10%
Answer:
(d) 10%

Question 14.
When the invoice/debit note has been uploaded by the supplier in GSTR-1, the amount of ITC, as per Rule 36(4), to be claimed by the recipient shall be ………..
(a) Full
(b) 50%
(c) 25%
(d) 20%
Answer:
(a) Full

Question 15.
Liberty limited purchases an aircraft for the purpose of transaction of goods manufactured by it. ITC shall be
(a) Allowed
(b) Blocked under Section 17(5)
(c) Allowed to the extent of 50%
(d) Blocked under section 17(5) to the extent of 50%
Answer:
(a) Allowed

Question 16.
Which one of the following is not an exception to section 17(5)(a).
(a) Purchase of car for running as taxi.
(b) Purchase of car by dealer for resale.
(c) Bus purchased by a company for transportation of employees from their residence to office and back.
(d) Purchase of Car (Capacity 5 persons) for commutation of employees from their residence to factory & back.
Answer:
(d) Purchase of Car (Capacity 5 persons) for commutation of employees from their residence to factory & back.

Question 17.
Availability of Input Tax Credit in special cases as per section 18(1) of the CGST Act, 2017 is available where a registered person is having tax invoice relating to such supply issued not after expiry of from the date of issue
of tax invoice.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 9 months
Answer:
(c) 1 year

Question 18.
As per Rule 36(1) of CGST Rules, 2017, which of the following documents will not suffice the condition of possession of invoice for availing ITC
(a) Invoice or debit note issued by the supplier of goods or services or both
(b) Invoice raised by recipient in case of inward supplies from registered person
(c) Bill of entry prescribed under the Customs Act
(d) An input service distributor’s or credit note issued by Input Service Distributor for distribution of credit
Answer:
(b) Invoice raised by recipient in case of inward supplies from registered person

Question 19.
One of the essential conditions for availing ITC is that the tax should have actually been paid to the Government on the goods or services or both for which ITC is being taken. This payment can be done by the supplier by
(a) Making payment through cash
(b) Making payment through utilization of ITC
(c) Either by (a) or (b) or both
(d) None of the above
Answer:
(c) Either by (a) or (b) or both

Question 20.
Filing of valid return is one of the essential condition for availing ITC. This return is
(a) Under section 37
(b) Under section 38
(c) Under section 39
(d) Under section 44
Answer:
(c) Under section 39

Question 21.
Which of the following statement is true for a Composition Tax Payer
(a) A Composition Tax Payer can avail only 50% of ITC on Capital Goods
(b) A Composite Tax Payer can avail 100% of ITC on inputs
(c) ITC is not available on inward sup-plies made by a Composition Tax Payer
(d) None of the above
Answer:
(c) ITC is not available on inward sup-plies made by a Composition Tax Payer

Question 22.
As per the first Proviso to section 16(2), where the recipient receives the goods and / or services in instalments, the registered person ….
(a) Shall NOT be entitled to take ITC
(b) Shall be entitled to take ITC upon receipt of FIRST Lot
(c) Shall be entitled to take ITC upon receipt of LAST Lot
(d) Shall be entitled to take ITC immediately on receipt of FIRST Lot provided the invoice is issued by the supplier for all the goods
Answer:
(c) Shall be entitled to take ITC upon receipt of LAST Lot

Question 23.
As per second proviso to section 16(2) of CGST Act, 2017, the time limit to pay the value of supply with taxes to avail the ITC is:
(a) 3 months
(b) 6 months
(c) 180 days
(d) Till the date of filing of Annual Return
Answer:
(c) 180 days

Question 23A.
As per section 49(8) of CGST Act, 2017, which of the following shall be first in the order of discharge of liability
(a) Previous tax period
(b) Current tax period
(c) Demand raised under sections 73 and 74
(d) None of the above
Answer:
(a) Previous tax period

Question 23B.
The liability of taxable person, as reflected in the Electronic Liability Register can be paid through
(a) Debit in Electronic Debit Ledger
(b) Credit in Electronic Debit Ledger
(c) Debit in Electronic Cash Ledger
(d) Both (a) and (c)
Answer:
(d) Both (a) and (c)

Question 24.
Where the registered person has claimed depreciation on the …….. of the Capital Goods, ITC shall not be allowed.
(a) Cost
(b) Tax component of cost
(c) Both (a) & (b)
(d) None of the above
Answer:
(b) Tax component of cost

Question 25.
ABC Limited purchased a machine for ₹ 10,00,000 plus GST @ 18%. It has been capitalized in the books at ₹ 11,80,000 (i.e. inclusive of GST paid). Accordingly, the depreciation was claimed @ 15% on ₹ 11,80,000 under the Income-tax Act. What is the amount of ITC to be allowed
(a) ₹ 1,80,000
(b) 15% of₹ 1,80,000
(c) 85% of₹ 1,80,000
(d) ITC will not be allowed
Answer:
(d) ITC will not be allowed

Question 26.
A manufacturer takes deduction of depreciation on the GST component of the cost of capital goods as per Income-tax Act, 1960. The manufacturer
(a) Can avail only 25% of the said tax component as ITC
(b) Can avail only 50% of the said tax component as ITC
(c) Can avail only 100% of the said tax component as ITC
(d) Cannot avail ITC on the said tax component
Answer:
(d) Cannot avail ITC on the said tax component

Question 27.
If debit note is issued in respect of an invoice subsequently, in the next financial year, will be relevant in determining the time limit.
(a) Date of invoice
(b) Date of debit note
(c) Date of debit note, if issued within 6 months
(d) Time limit is one year after the issue of debit note
Answer:
(a) Date of invoice

Question 28.
If the payment is not made by the recipient to the supplier within …….. from the date of invoice, then the taxpayer needs to reverse the credit already taken.
(a) 45 Days
(b) 90 Days
(c) 180 Days
(d) 200 Days
Answer:
(c) 180 Days

Question 29.
What is the time limit for reclaiming ITC reversed due to non-payment within 180 days
(a) 3 months
(b) 1 financial year
(c) 2 financial years
(d) No time limit, as section 16(4) is not applicable in this case
Answer:
(d) No time limit, as section 16(4) is not applicable in this case

Question 30.
Input Tax Credit cannot be availed after the expiry of ……….from the date of invoice of tax invoice of supply.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 2 years
Answer:
(c) 1 year

Question 31.
Which of the following inward supplies are not eligible for ITC in case of a company manufacturing taxable goods
(a) Food and Beverages
(b) Outdoor Catering
(c) Health Services
(d) All of the above
Answer:
(d) All of the above

Question 32.
Mukesh purchased goods for the business, in respect of which ITC admissible is ₹ 36,000. 20% of such goods have been used for personal purposes, 60% sold and 20% goods are still lying in godown. Considering section 17(1) of CGST Act, ITC will be available for
(a) ₹ 36,000
(b) 2096 of ₹ 36,000
(c) 6096 of ₹ 36,000
(d) 8096 of ₹ 36,000
Answer:
(d) 8096 of ₹ 36,000

Question 33.
The turnover of taxable and exempted goods are ₹ 6,00,000 and ₹ 4,00,000 re-spectively. The common inputs on which GST paid is ₹ 1,08,000. The common inputs on which GST paid is ₹ 1,08,000. The eligible ITC on common input as per section 17(2) is:
(a) ₹ 1,08,000
(b) 6096 of ₹ 1,08,000
(c) 4096 of ₹ 1,08,000
(d) None of the above
Answer:
(b) 6096 of ₹ 1,08,000

Question 34.
What is the time limit for availing the ITC, as given in section 16(4)
(a) Due date of furnishing of return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains
(b) Furnishing of the relevant Annual Return
(c) Earlier of (a) or (b)
(d) Later of (a) or (b)
Answer:
(c) Earlier of (a) or (b)

Question 35.
ABC Ltd. is engaged in manufacture of electrical appliances supply following details relating to GST paid on various items by them: The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be
(a) ₹ 2,00,000
(b) ₹ 2,12,500

Item	GST Paid (₹)
Electrical Transformers uti­lized in the manufacturing process	1,20,000
Trucks used for transporting materials	80,000
Cakes and Pastries for con­sumption within factory	12,500

The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be
(a) ₹ 2,00,000
(b) ₹ 2,12,500
(c) ₹ 52,500
(d) ₹ 1,00,000
Answer:
(a) ₹ 2,00,000

Question 36.
As per section 17(2) of CGST Act, 2017, the ITC is not available in respect of ………..
(a) Taxable Supplies
(b) Zero-rated Supplies
(c) Exempted Supplies
(d) All of the above
Answer:
(c) Exempted Supplies

Question 37.
For banking companies using inputs and input services partly for taxable supplies and partly for exempt supplies, which of the following statement is true?
(a) ITC shall be compulsorily restricted to credit attributable to taxable supplies including zero rates supplies
(b) 50% of eligible ITC on inputs, Capital goods and Input service shall be mandatorily taken in a month and rest shall lapse
(c) Either (a) or (b), at the option of banking company
(d) None of the above
Answer:
(c) Either (a) or (b), at the option of banking company

Question 38.
Determine the amount of ITC, available to ABC Bank as per section 17(4)

ITC on inward supply (Same PAN)	₹ 3,00,000
ITC on inward supply (Different PAN)	₹ 14,00,000

(a) ₹ 10,00,000
(b) ₹ 15,50,000
(c) ₹ 17,00,000
(d) None of the above
Answer:
(a) ₹ 10,00,000

Question 39.
Section 17(5) of CGST Act, 2017 deals with
(a) Available Credit
(b) Restricted Credit
(c) Blocked Credit
(d) Deemed Credit
Answer:
(c) Blocked Credit
ITC = (100% of ₹ 3 Lakh) + (50% of ₹ 14 Lakh) = ₹ 10 Lakh

Question 40.
The Input Tax credit (ITC) is being credited to of a person which may be used by the person to pay his output tax liability.
(a) Electronic Cash Ledger
(b) Electronic Credit Ledger
(c) Electronic Tax Ledger
(d) Electronic Tax Credit Ledger
Answer:
(b) Electronic Credit Ledger

Question 41.
Which one of the following is the case of Blocked Credit?
(a) Goods destroyed due to natural calamities
(b) Goods destroyed due to fire
(c) Goods lost due to theft
(d) All of the above
Answer:
(d) All of the above

Question 42.
As per Explanation to section 16(2)(b) of CGST Act, 2017, w.e.f. 1-2-2019, in case of “Bill To Ship To” situation, the ITC is allowed on deemed receipt basis. It may be
(a) In respect of services only
(b) In case of goods only
(c) In case of both goods and services
(d) Not allowed w.e.f. 1-2-2019
Answer:
(c) In case of both goods and services

Question 43.
Considering the amendments made by CGST (Amendment) Act, 2018, in which of the following case, the ITC is blocked. The motor vehicle has been used for:
(a) Making further taxable supply of such motor vehicles
(b) Making taxable supply for transportation of passenger
(c) Making taxable supply of imparting training on driving such motor vehicle
(d) None of the above
Answer:
(d) None of the above

Question 44.
As per section 17(5), ITC is blocked when motor vehicle is used for transportation of persons with seating capacity (including the driver).
(a) Less than 13 persons
(b) Up to 13 persons
(c) Less than 15 persons
(d) Up to 15 persons
Answer:
(b) Up to 13 persons

Question 45.
In which of the following case, the ITC is not blocked?
(a) Car purchased by manufacturing company for official use of its employees
(b) Car purchased by a company for commutation of CEO from residence to factory and back
(c) Car purchased by a car driving school for exclusive use by the officers for commutation purposes and not for imparting driving skills.
(d) Truck purchased by a company for transportation of its finished goods
Answer:
(d) Truck purchased by a company for transportation of its finished goods

Question 46.
ITC on aircraft purchased by an aviation school providing training on flying aircraft is
(a) Allowed
(b) Allowed but 80% only
(c) Allowed but 50% only
(d) Not allowed
Answer:
(a) Allowed

Question 47.
ITC on general insurance taken on car used by employees of a manufacturing company for official purposes is
(a) Allowed (100%)
(b) Allowed (80%)
(c) Allowed (50%)
(d) Not allowed (i.e. Blocked credit)
Answer:
(d) Not allowed (i.e. Blocked credit)

Question 48.
A company has paid for membership of a health club Centre for employees. The related ITC is
(a) Allowed, if provided by employer to its employees under statutory obligation
(b) Allowed, if it is provided by others working in the same industry
(c) Not allowed, in case it is provided under voluntary move
(d) Not Allowed, in any case
Answer:
(a) Allowed, if provided by employer to its employees under statutory obligation

Question 49.
In which of the following case, the ITC is blocked under section 17(5)?
(a) Tax payable due to evasion of taxes
(b) Detention, seizure and release of goods and conveyances in transit
(c) Confiscation of goods or conveyances and levy of penalty
(d) All of the above
Answer:
(d) All of the above

Question 50.
In which of the following case, ITC is not blocked?
(a) Tax paid on inputs by Composition Dealer
(b) Tax paid on inputs by NRTP
(c) Tax paid on goods/services used for personal purposes
(d) None of the above
Answer:
(d) None of the above

Question 51.
As per section 18(1)(a) of CGST Act, 2017, when person already engaged in business before GST now requires mandatory registration, ITC is
(a) Allowed on Inputs held in stock
(b) Allowed on Capital Goods only
(c) Allowed on both Input and capital goods
(d) None of the above
Answer:
(a) Allowed on Inputs held in stock

Question 52.
As per section 18(2), in case of new registration, the registered person shall not be entitled to take ITC in respect of any supply of good/services after the expiry of from the date of issue of tax invoice relating to such supply.
(a) 6 months
(b) 1 Year
(c) 18 Months
(d) 180 days
Answer:
(b) 1 Year

Question 53.
Raj & Co., applied for voluntary registration under CGST Act, 2017 on 5th July, 2017 and the registration was granted on 15th July, 2017. Raj & Co., was having the stock available against the invoices for a period of 3 months old. Raj & Co., shall be eligible for input tax credit on such stock as held as on :
(a) 30th June, 2017
(b) 5th July, 2017
(c) 15th July, 2017
(d) 14th July, 2017
Answer:
(d) 14th July, 2017

Question 54.
As regards availability of credit in special circumstances, given in section 18, ITC on Capital goods is available in case of:
(a) Compulsory registration under section 18(1)(a)
(b) Voluntary registration under section 18(1)(b)
(c) Shifting from Composition scheme to Regular scheme under section 18(1)
(d) None of the above
Answer:
(c) Shifting from Composition scheme to Regular scheme under section 18(1)

Question 55.
Where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of input tax on capital goods subject to reduction by
(a) 5% for use for every completed quarter
(b) 5% for use for every quarter or part
(c) 8% for use for every quarter or part
(d) 5% for use for every year
Answer:
(b) 5% for use for every quarter or part

Question 56.
Capital goods were brought in the factory on 1-10-2017 worth ₹ 10,00,000 on which IGST of 18% was paid. These capital goods were sold at ₹ 7,80,000 on 2-2-2019. The ITC to be reversed is
(a) Nil
(b) ₹ 1,26,000
(c) ₹ 1,40,000
(d) None of the above
Answer:
(c) ₹ 1,40,000
IGST paid = 18% of ₹ 10 Lakh = ₹ 1,80,000
No. of quarters for the period of use= 2(2017-2018) + 4 (2018-2019) = 6 Quarters ITC after deduction @ 5% per quarter = 1,80,000 – (1,80,000 × 5% × 6 Quarters) = ₹ 1,26,000
Duty Leviable on Transaction Value = (7,80,000 × 18%) = ₹ 1,40,400 ITC to be reversed = Higher of ₹ 1,26,000 & ₹ 1,40,400 = × 1,40,400

Question 57.
Calculate the amount of ITC available from the following information:
(a) ₹ 3,00,000
(b) ₹ 4,80,000
(c) ₹ 4,10,000
(d) ₹ 3,80,000
Answer:
(d) ₹ 3,80,000
ITC = 3,00,000 + 1,80,000 – (70,000 + 30,000) = ₹ 3,80,000 70. ITC = 24,000 + 2,000 + 4,500 + 3,000 = ₹ 33,500

Question 58.
X Limited purchased goods on 20-2-2018. A debit note was issued in respect of the same invoice on 7-4-2018. The last date for claiming ITC will be:
I. Due date of furnishing of return under section 39 for the month of September following financial year 2017- 18
II. Due date of furnishing of return under section 39 for the month of September following financial year 2018- 19
III. Furnishing of the Annual return for financial year 2017-18
IV. Furnishing of the Annual return for financial year 2018-19
(a) Earlier of I & III
(b) Later of I & III
(c) Earlier of II & IV
(d) Later of II & IV
Answer:
(a) Earlier of I & III

Question 59.
When the goods or services are used by the registered person partly effecting taxable supplies including ‘Zero Rated supplies’ and partly for effecting ‘Exempt Supplies’, the amount of credit shall be available
(a) To the extent as it is attributable to the taxable supply/zero rated supply
(b) To the extent as it is attributable to the exempt supply
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(a) To the extent as it is attributable to the taxable supply/zero rated supply

Question 60.
Blocked credit means, the inward supply of goods or services on which ITC
(a) Shall be allowed fully
(b) Shall be allowed provisionally
(c) Shall not be allowed provisionally
(d) Shall not be allowed forever
Answer:
(d) Shall not be allowed forever

Question 61.
In which of the following cases, ITC would be available?
(a) Goods lost and destroyed
(b) Goods for business purpose
(c) Goods disposed of by way of gift
(d) Goods written off
Answer:
(d) Goods written off

Question 62.
Section 17(4) allows a banking company or financial institution to avail:
(a) 50% of ITC (Different PAN)
(b) 100% of ITC (Same PAN)
(c) Any of (a) or (b), at the option of taxpayer
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

Question 63.
ITC on capital goods and inputs can be availed in instalments.
(a) One
(b) Six
(c) Twelve
(d) Thirty five
Answer:
(a) One

Question 64.
Zebra, a supplier of goods located at Jaipur paid GST under regular scheme both Inter-State and Intra-State. The supplies are chargeable to GST @ 18%. The outward taxable supply in the month
of February, 2019 made by him of Intra-State ₹ 12,00,000 and Inter-State ₹ 5,00,000. The total tax liability under GST Act on both these supplies shall be ……… if he is having the Opening Balance of ITC available of ₹ 45,000 each under CGST and SGST and of ₹ 55,000 under IGST.
(a) ₹ 3,06,000
( b) ₹ 2,16,000
(c) ₹ 1,61,000
(d) ₹ 1,71,000
Answer:
(c) ₹ 1,61,000

Question 65.
Which one of the following is a tax paying document in section 16(2)?
(a) Bill of entry
(b) Acknowledged copy of tax paid to Government
(c) Transportation Bill
(d) All of the above
Answer:
(a) Bill of entry

Question 66.
The proportionate credit for capital goods is allowed
(a) For business and Non-business purpose
(b) For business or Non-business purpose
(c) Both of the above
(d) None of the above
Answer:
(a) For business and Non-business purpose

Question 67.
The capital goods are supplied as scrap and accordingly taxable person shall pay on the transaction value determined under section 15 of CGST Act, 2017. Which of the following is/are covered under this provision?
(a) Refractory bricks
(b) Moulds and dies
(c) Jigs and Fixtures
(d) All of the above
Answer:
(d) All of the above

Question 68.
Which of the following expenditure is eligible for Input Tax Credit?
(a) Membership Fee of a Club
(b) Home Travel Concession extended to employees
(c) Goods given as free gifts
(d) None of the above
Answer:
(d) None of the above

Question 69.
The date of invoice for supply of goods is 24-10-2017 for which ITC is available. The annual return has been furnished on 5th October, 2018. The time limit for availing ITC is
(a) Date of filing return under section 44 i.e. 5th October, 2018
(b) Due date of filing return for the month of September 2018 (i.e. 20th October, 2018)
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(c) Earlier of (a) and (b)

Question 70.
Determine the amount of ITC admissible to XYZ Limited in respect of following:

		Amount (₹)
(a)	Inputs used for manufac­ture of the final product	24,000
(b)	Inputs used in trial runs	2,000
(c)	Packing materials used in a factory	4,500
(d)	Goods destroyed due to fire	1,000
(e)	Goods destroyed due to natural calamities	2,400
(f)	Goods used for providing services in warranty period	3,000

(a) ₹ 36,900
(b) ₹ 35,900
(c) ₹ 33,500
(d) ₹ 30,500
Answer:
(c) ₹ 33,500

Question 71.
Mr. Kamal becomes liable to registration on 25th October, 2018. Accordingly, he has applied for GST registration on 7th November, 2018. As per section 18(1)(a), Kamal shall be eligible for ITC on Inputs held in stock as on:
(a) 24th October
(b) 25th October
(c) 26th October
(d) 7th November

Date when becomes liable for registration	14-7-2018
Applied for mandatory reg­istration	24-7-2018
Input tax in respect of fol­lowing held on 31-7-2018: Inputs held in stock Inputs contained in fin­ished/ semi-finished goods held in stock Inputs on capital goods	62,000 14,000 24,000

Answer:
(a) 24th October

Question 72.
What is the amount of ITC available as per section 18(1)(a)?
(a) ₹ 1,00,000
(b) ₹ 76,000
(c) ₹ 38,000
(d) ₹ 86,000
Answer:
(b) ₹ 76,000
As per section 18(1)(a), when a person has applied for GST registration within 30 days from the date on which he becomes liable for registration, the ITC is available in respect of inputs in stock and inputs contained in semi-finished and finished goods in stock on the day preceding the date from which he becomes liable to pay under GST. ITC is not available on Capital Goods.
ITC = 62,000 + 14,000 = ₹ 76,000.

Question 73.
ITC on capital goods is allowed under section 18(1) in case of :
(a) Fresh registration under section 18(1)
(b) Voluntary registration under section 18(1)(6)
(c) Shifting from composition scheme to Regular scheme under section 18(1) (c)
(d) Both (a) and (b)
Answer:
(c) Shifting from composition scheme to Regular scheme under section 18(1) (c)

Question 74.
KMB limited is a registered person engaged in supply of goods which are exempt from tax. On 22-6-2018, exemption notification was rescinded and the goods become liable for tax. Determine the eligible credit in respect of capital goods purchased on 4-12-2017 for ₹ 7,00,000 plus GST @ 12%. These capital goods have been exclusively used in supplying exempted goods. What is the amount of ITC available on capital goods
(a) ₹ 84,000
(b) ₹ 71,400
(c) ₹ 12,600
(d) ₹ 7,00,000
Answer:
(b) ₹ 71,400

Date of invoice of Capital Goods	4-12-2017
Date from which the exempt goods become taxable	22-6-2018
Number of quarters or part thereof from the date of invoice	3 Quarters
IGST paid on capital goods (7,00,000 × 12%)	84,000
ITC to be reduced by 5% per quarter	84,000 × 15% = ₹ 12,600
Amount of ITC available in respect of capital goods	71,400

Question 75.
When a person under regular scheme changes to composition scheme, he shall pay an amount by way of debit in the Electronic Credit Ledger or Electronic cash ledger, equivalent to credit of input tax in respect of inputs held in stock and inputs contained in semi-finished stock and on capital goods on the
(a) Day preceding the date of exercising such option
(b) Date of exercising such option
(c) Day after the date of exercising such option
(d) None of the above
Answer:
(a) Day preceding the date of exercising such option

Question 76.
Mr. A bought a machinery for ₹ 1,00,000 on which IGST was paid @ 18% (i.e. ₹ 18,000). After use of machine for 3 years, 7 months and 15 days. Mr. A decided to convert from normal to composition scheme. The amount to be reversed in this case is :
(a) ₹18,000
(b) ₹ 4,800
(c) ₹ 9,000
(d) ₹ 4,000
Answer:
(b) ₹ 4,800
Amount of ITC availed = ₹ 18,000
Assumed Life = 60 Months
Used Life = 43 months +15 days
Remaining Life =16 months (ignoring part)
Proportionate ITC = 18,000 \(\frac{16 \text { Months }}{60 \text { Months }}\) ₹ 4,800

Question 77.
When the capital goods are removed, on which ITC has been taken, the registered person shall pay an amount equal to ITC taken as reduced by
(a) 5% per completed quarter
(b) 5% per quarter or part there of
(c) 8% per completed quarter
(d) 5% per month
Answer:
(b) 5% per quarter or part there of

Question 78.
What is the assumed life of capital goods, while calculating reversal of ITC under section 18(4)?
(a) 3 Years or 36 months
(b) 4 Years or 48 months
(c) 5 Years or 60 months
(d) 65 months
Answer:
(c) 5 Years or 60 months

Question 79.
Mohan is registered under normal scheme in GST. He wants to shift from normal scheme to composition scheme. At the time of exercise of such option, the machine has already been used for 4 years, 8 months and 2 days. The ITC taken at the time of purchase of machine was ₹ 2,10,000. How much ITC needs to be reversed in respect of this machine (capital goods)?
(a) ₹ 2,10,000
(b) ₹ 1,05,000
(c) ₹ 21,000
(d) ₹ 10,500
Answer:
(d) ₹ 10,500
Remaining life = 3 months
Proportionate ITC = 2,10,000 × \(\frac{3 \text { Months }}{60 \text { Months }}\) = ₹10,500.

Question 80.
When a person under regular scheme changes to composition scheme, the ITC in respect of inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods (subject to deduction) is reversed. After reversing the ITC so calculated, the balance in the credit of Electronic Credit ledger will
(a) Be refunded
(b) Be adjusted for other business vertical
(c) Be lapsed
(d) None of the above
Answer:
(c) Be lapsed

Question 81.
Sanjay is registered under normal scheme in GST. He wants to shift from normal scheme to composition scheme. The following information is available:
(i) Balance in Electronic Credit Ledger: ₹ 1,00,000
(ii) ITC in respect of inputs contained in finished goods held in stock: ₹ 25,000
What is the amount of ITC to be reversed and the treatment of balance in Electronic Credit ledger, if any.
(a) ₹ 25,000 to be reversed and ₹ 1,00,000 to be refunded to the taxpayer
(b) ₹ 25,000 to be reversed and balance t 75,000 will be refunded
(c) ₹ 25,000 to be reversed and balance ₹ 75,000 will be lapsed
(d) After reversal, ₹ 75,000 to paid by taxpayer to government
Answer:
(c) ₹ 25,000 to be reversed and balance ₹ 75,000 will be lapsed

Question 82.
At the time of shifting from normal scheme to composition scheme, the following information is available:
(i) Balance in Electronic Credit Ledger : ₹ 30,000
(ii) ITC in respect of inputs contained in finished goods held in stock: ₹ 65,000
As per section 18(4) of CGST Act, 2017, which of the following is correct
(a) ₹ 65,000 to be reversed and ₹ 30,000 to be refunded
(b) ₹ 65,000 to be reversed and ₹ 30,000 will be lapsed
(c) ₹ 30,000 to be reversed and ₹ 35,000 to be lapsed
(d) ₹ 65,000 to be reversed by debit to Electronic Credit Ledger ( ₹ 30,000) and balance through E-Cash ledger ( ₹ 35,000)
Answer:
(d) ₹ 65,000 to be reversed by debit to Electronic Credit Ledger ( ₹ 30,000) and balance through E-Cash ledger ( ₹ 35,000)

Question 83.
Dev Anand becomes liable to pay tax on 15-7-2019 and has applied for registration on 19-7-2019. He obtained registration on 24-7-2019. As per section 18(I)(cf), Dev is entitled to take credit of input tax paid in respect of inputs held in stock, inputs contained in finished and semi-finished goods held in stock on:
(a) 14-7-2019
(b) 15-7-2019
(c) 16-7-2019
(d) 24-7-2019
Answer:
(a) 14-7-2019

Question 84.
Shashi acquired a capital asset on 1-11-2017, at a cost of ₹ 4,00,000 plus GST @ 18%. He used this machinery for production of exempt supplies only. On 15-5-2019, his supplies becomes taxable. As per section 18(1)(d) will be available as ITC on capital goods.
(a) ₹ 72,000
(b) ₹ 25,200
(c) ₹ 46,800
(d) ₹ 36,000
Answer:
(c) ₹ 46,800
ITC = 72,000 × [100 – (5 × 7)]% = 72,000 × 65% = ₹ 46,800

Question 85.
The ITC as self-assessed in the return of a registered person shall be credited to
(a) Electronic Liability Ledger
(b) Electronic Cash Ledger
(c) Electronic Credit Ledger
(d) Electronic Available Ledger
Answer:
(c) Electronic Credit Ledger

Question 86.
Job work means any treatment or process undertaken by a person on goods belonging to another registered person. The person who is providing goods or raw material is called as
(a) Job worker
(b) Principal
(c) Consignor
(d) Supplier
Answer:
(b) Principal

Question 86A.
Which type of items can be sent by the Principal to Job Worker for processing job work
(a) Capital goods only
(b) Inputs only
(c) Both capital and inputs
(d) None of the above
Answer:
(c) Both capital and inputs

Question 87.
As per section 143(1) of the CGST Act, 2017, a registered person may send inputs/capital goods under intimation and subject to certain to a job worker for job work.
(a) Without payment of tax
(b) With payment of tax (100%)
(c) With payment of tax (50%)
(d) With payment of tax (25%)
Answer:
(a) Without payment of tax

Question 87A.
What is the time limit within which the moulds and dies, jigs and fixtures, tools, etc. sent for job work must be brought back
(a) One year
(b) Two years
(c) Three years
(d) Need not be returned back
Answer:
(d) Need not be returned back

Question 87B.
For job work, the registered person may send any input or capital goods
(a) Without payment of tax
(b) With full payment of tax
(c) With payment of tax on capital goods only
(d) With payment of tax on inputs only
Answer:
(a) Without payment of tax

Question 88.
The ……… of CGST Rules, 2017 is related with the conditions and restrictions in respect of inputs and capital goods sent to the job-worker.
(a) Rule 43
(b) Rule 44
(c) Rule 45
(d) Rule 46
Answer:
(c) Rule 45

Question 89.
The details of challans in respect of goods dispatched to a job worker or received from a job worker during a quarter shall be included in FORM ………… furnished for that period.
(a) GST ITC-01
(b) GST ITC-02
(c) GST ITC-03
(d) GST ITC-04
Answer:
(d) GST ITC-04

Question 90.
When the goods are sent from one job worker to another job worker, the challan may be issued by
(a) Principal
(b) Principal or job worker sending the goods to another job worker.
(c) Principal or job worker who is receiving the goods from other job worker.
(d) Either of the Job-workers
Answer:
(b) Principal or job worker sending the goods to another job worker.

Question 91.
When goods are dispatched by the Principal to the job worker; the Principal is:
(a) Required to reverse the ITC availed on such inputs
(b) Not required to reverse the ITC availed on such inputs
(c) Required to reverse 50% of ITC availed on such inputs
(d) None of the above
Answer:
(c) Required to reverse 50% of ITC availed on such inputs

Question 92.
What is the time limit within which the inputs sent to a job worker are required to be returned to the Principal
(a) 6 Months
(b) 1 year
(c) 2 years
(d) 3 years
Answer:
(b) 1 year

Question 92A.
After CGST (Amendment) Act, 2018, the time period of one year (for inputs) and three years (for capital goods)be extended for a further period not exceeding and respectively.
(a) One year and one year
(b) One year and two years
(c) Two years and two years
(d) Two years and one year
Answer:
(b) One year and two years

Question 93.
As per CGST (Amendment) Act, 2018, the commissioner is empowered to extend the “One year period” applicable to inputs sent to a job worker, on sufficient cause being shown, for a further period:
(a) Of 6 months
(b) Of 1 year
(c) Not exceeding 1 year
(d) Not exceeding 3 years
Answer:
(c) Not exceeding 1 year

Question 94.
Which of the following items sent out to a job worker need not be brought within 3 years’ time
(a) Moulds & Dies
(b) Jigs & Fixtures
(c) Tools
(d) All of the above
Answer:
(d) All of the above

Question 95.
What is the time limit within which the Capital Goods sent to a job worker are required to be returned to the Principal
(a) 6 Months
(b) 1 year
(c) 2 years
(d) 3 years
Answer:
(d) 3 years

Question 96.
The responsibility for keeping proper accounts for the inputs or capital goods sent to job worker lies with:
(a) Principal only
(b) Job Worker only
(c) Both Principal & Job Worker
(d) Any of (a) & (b)
Answer:
(a) Principal only

Question 96A.
The section 143(5) in relation to waste and scrap is
(a) Overriding to section 143(1)
(b) Overriding to section 143(2)
(c) Both (a) and (b)
(d) Subject to section 143(1) and (2)
Answer:
(c) Both (a) and (b)

Question 96B.
Any waste or scrap generated during the job work may be supplied by
(a) Job worker on payment of tax
(b) Job worker on payment of tax if he is registered
(c) Principal, if the job worker is not registered
(d) Both (b) and (c)
Answer:
(b) Job worker on payment of tax if he is registered

Question 96C.
When goods are transferred for further processing by job worker-1 to job worker-2, the Challan may be issued by:
I. Principal
II. Job Worker-1
III. Job Worker-2
(a) I only
(b) I or II
(c) I or III
(d) II or III
Answer:

Question 97.
Any waste and scrap generated during the job work may be supplied by the job worker directly from his business on payment of tax if:
(a) Such Job Worker is registered
(b) Such Job Worker is not registered
(c) Principal is not registered
(d) Principal is registered
Answer:
(a) Such Job Worker is registered

Question 98.
As per CGST (Amendment) Act, 2018, the commissioner is empowered to extend the “Three year period” applicable to Capital Goods sent to a job worker, on sufficient cause being shown, for a further period:
(a) 6 months
(b) Not exceeding 1 year
(c) Not exceeding 2 years
(d) Not exceeding 3 years
Answer:
(c) Not exceeding 2 years

Question 99.
When the goods are sent to job worker, input tax credit will be reversed if the goods are not received back by the principal after completion of job work within of being sent out.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 3 years
Answer:
(c) 1 year

Question 100.
The Job Work procedure is given in ………… of CGST Act, 2017.
(a) Section 135
(b) Section 139
(c) Section 140
(d) Section 143
Answer:
(b) Section 139

Question 101.
If the job worker is not registered under section 25, then the principal shall not supply the goods from the place of business of a job worker unless the principal:
(a) Declares the place of business of job worker as his additional place of business
(b) Declares the place of business of job worker as his principal place of business
(c) Makes payment of GST
(d) None of the above
Answer:
(a) Declares the place of business of job worker as his additional place of business

Question 102.
As per section 143(3) and (4) of CGST Act, 2017, if the goods are not received back or not supplied from the premises of job worker within specified time limit, it shall be deemed to be supply from principal to the job worker from the day when it was sent for job work. In that case, who will be liable to pay GST₹
(a) Principal, GST without interest
(b) Principal, GST with interest
(c) Job-worker, GST without interest
(d) Job-worker, GST with interest
Answer:
(b) Principal, GST with interest

Question 103.
As per section 16(2)(d), receipt of goods or services or both is a necessary condition for claiming ITC. Instead of first bringing the goods to the premises of the principal and then sending it to the place of job worker, Mr. X has sent the inputs directly from the supplier to the job worker. In this scenario:
(a) ITC is not allowed to Principal
(b) ITC is allowed to Principal immediately
(c) ITC is allowed to Principal when goods are returned by the job worker
(d) None of the above
Answer:
(b) ITC is allowed to Principal immediately

Question 103A.
Where the inputs or capital goods are not returned to principal within the stipulated time period, it shall be deemed as supply and ….
(a) Shall be declared in GSTR-1 and tax shall be paid by the principal
(b) Shall be declared in GSTR-1 and tax along with interest shall be paid by the principal
(c) Shall be declared in GSTR-2A and ITC shall be reversed
(d) Shall be declared in GSTR-3B and ITC shall be reversed.
Answer:

Question 103B.
The details of Challan in respect of goods dispatched to a job worker or received from a job worker during a particular quarter shall be included in FORM
GST furnished for that period on or before …… of the month succeeding the said quarter.
(a) GSTR-1; 15th Day
(b) GSTR-1; 25th Day
(c) ITC-4; 15th Day
(d) ITC-4; 25th Day
Answer:
(d) ITC-4; 25th Day

Question 104.
A company may have a number of units and the GST paid by it on input services received can be distributed to the beneficiary units on the basis of their previous year turnover. The office of the company which distributes this ….. is called as ……..
(a) Credit, Input Credit Distributor
(b) Debit, Input Credit Distributor
(c) Credit, Input Service Distributor
(d) Debit, Input Service Distributor
Answer:
(c) Credit, Input Service Distributor

Question 105.
Input Service Distributor (ISD) may distribute the CGST credit within the State as :
(a) UTGST
(b) CGST
(c) SGST
(d) Any of the above
Answer:
(b) CGST

Question 106.
An input service distributor shall distribute ITC
(a) Fortnightly
(b) Monthly
(c) Quarterly
(d) Half yearly
Answer:
(b) Monthly

Question 107.
The ITC on account of integrated tax shall be distributed by input service distributor as ITC of to every recipient.
(a) Central Tax
(b) State Tax
(c) UTTax
(d) Integrated tax
Answer:
(d) Integrated tax

Question 108.
As regards the Contents of ISD in-voice and ISD credit note, the document for distributing credit need not be serially numbered if the ISD is a ………….
(a) Banking Company
(b) Finance Institution
(c) NBFC
(d) Any of the above
Answer:
(d) Any of the above

Question 109.
The ITC of CGST and SGST/UTGST to be distributed as if recipient is in different state.
(a) IGST
(b) CGST
(c) CGST&SGST
(d) CGST & SGST/UTGST
Answer:
(a) IGST

Question 110.
The input service distributor is required to distribute
(a) Eligible ITC only
(b) Ineligible ITC only
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

Question 111.
In respect of recipient located in the same State or Union Territory in which the ISD is located, the ITC of CGST and SGST/UTGST to be distributed as …………….
(a) CGST
(b) SGST/UTGST
(c) CGST & SGST/UTGST respectively
(d) IGST
Answer:
(c) CGST & SGST/UTGST respectively

Question 112.
The credit of tax paid on input services used by more than one supplier be distributed as per provisions of the CGST Act, 2017
(a) only to one supplier
(b) equally among all the suppliers
(c) among the suppliers who used such input service on prorata basis of turnover in such state
(d) cannot be distributed
Answer:
(c) among the suppliers who used such input service on prorata basis of turnover in such state

Question 113.
In respect of recipient located in the same State or Union Territory other than that of the input service distributor, the ITC of CGST and SGST/UTGST to be distributed as ……………..
(a) CGST
(b) SGST/UTGST
(c) CGST & SGST/UTGST respectively
(d) IGST
Answer:
(a) CGST

Question 114.
As per Rule 39 of CGST Rules, 2017, the ITC on account of Integrated Tax (i.e. IGST) shall be distributed as ITC of …….
(a) Integrated Tax only
(b) Central Tax only
(c) State/UT Tax only
(d) Central Tax and State/UT Tax equally
Answer:
(a) Integrated Tax only

Question 115.
The ITC available for distribution in a month shall be distributed in the same month and the details thereof shall be furnished in FORM
(a) GSTR-5
(b) GSTR-6
(c) GSTR-7
(d) None of the above
Answer:
(b) GSTR-6

Question 116.
Every taxable person registered as on Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, within ………. days after the end of such
(a) 10, month
(b) 10, quarter
(c) 13, month
(d) 13, quarter
Answer:
(c) 13, month

Question 117.
As per section 49(5)(a) read with Rule 88A, the ITC of IGST shall be utilised in the sequence:
(a) For IGST only
(b) Firstly for IGST, then for CGST and balance for SGST/UTGST
(c) Firstly for IGST and balance for CGST and SGST/UTGST equally
(d) Firstly for IGST and balance for CGST and SGST/UTGST in any order
Answer:
(d) Firstly for IGST and balance for CGST and SGST/UTGST in any order

Question 118.
The ITC of IGST can be utilised for payment of …… On outward supply.
(a) IGST
(b) CGST
(c) SGST/UTGST
(d) All of the above
Answer:
(d) All of the above

Question 119.
As per clause (e) of section 49(5),the ITC of CGST ………….. Utilised towards payment of SGST/UTGST.
(a) Shall be
(b) Shall not be
(c) May be
(d) Shall be, if there is no ITC (IGST) remaining left.
Answer:
(b) Shall not be

Question 120.
The ITC of CGST can be used for CGST on outward supply:
(a) Without any condition
(b) Provided the ITC available on account of IGST has been utilised fully
(c) Only after its use for SGST
(d) None of the above
Answer:
(b) Provided the ITC available on account of IGST has been utilised fully

Question 121.
Radhey & Company registered supplier paying GST under regular scheme had made Inter-state Taxable Supply of ₹ 8,00,000 and Intra-state Taxable Supply of ₹ 6,00,000 chargeable under CGST, SGST, and IGST at the rates of 9%, 9% and 18% respectively. He is having available amount of ITC under CGST of ₹ 30,000 and under SGST of ₹ 20,000. Supplies made are exclusive of taxes. Amount of the total tax payable as CGST, SGST and IGST after availing the amount of ITC by Radhey & Company on such supplies shall be of ……
(a) 2,30,000
(b) 2,00,000
(c) 2,02,000
(d) 2,26,000

Type of GST	ITC	GST on out­ward supplies
IGST	80,000	16,000
CGST	40,000	30,000
SGST	38,000	30,000

Answer:
(c) 2,02,000
Liability = ₹ 1,44,000 + 54,000 + 54,000 – 30,000 – 20,000 = ₹ 2,02,000

Question 122.
What would be the balance in ITC to be carried forward after utilisation as per sections 49, 49A, 49B and Rule 88A
(a) ₹ 64,000 (IGST), ₹ 10,000 (CGST) and ₹ 8,000 (SGST)
(b) ₹ 4,000 (IGST), ₹ 40,000 (CGST) and ₹ 38,000 (SGST)
(c) ₹ 34,000 (IGST), ₹ 40,000 (CGST) and ₹ 8,000 (SGST)
(d) ₹ 34,000 (IGST), ₹ 10,000 (CGST) and ₹ 38,000 (SGST)
Answer:
(b) ₹ 4,000 (IGST), ₹ 40,000 (CGST) and ₹ 38,000 (SGST)

	IGST	CGST	SGST
GST Payable on Outward Supplies	16,000	30,000	30,000
Less: ITC of IGST	(16,000)	(30,000)	(30,000)
Balance GST payable in Cash	Nil	Nil	Nil
ITC Available	80,000	40,000	38,000
ITC utilised	(76,000)	Nil	Nil
Balance ITC Carried Forward	4,000	40,000	38,000

Question 123.
Mr. Pankaj of Delhi supplied goods to Mr. Krishna of Delhi for ₹ 1 lakh, on which total GST was charged @ 12%. Mr. Krishna, after purchase of goods, added 20% margin of profit (on cost) and sold the entire goods to Mr. Ravi of Delhi. The total amount of tax payable after claiming input tax on such transaction by Mr. Krishna is:
(a) ₹ 12,000
(b) ₹ 14,400
(c) ₹ 2,400
(d) None of the above
Answer:
(a) ₹ 12,000
GST Payable = (1,20,000 × 12%) – (1,00,000 × 12%) = ₹ 2,400

Question 124.
As per Rule 88A, the ITC of IGST shall first be utilised towards payment of IGST on outward supply- The amount remaining may be utilised towards the payment of
(a) CGST only
(b) SGST/UTGST only
(c) CGST & SGST/UTGST equally
(d) CGST & SGST/UTGST in any order
Answer:
(d) CGST & SGST/UTGST in any order

Question 125.
The ITC of IGST is still available even after its utilisation for outward IGST. In this case, for payment of outward CGST:
(a) The ITC of CGST to be used firstly
(b) The ITC of IGST to be used firstly
(c) The ITC of SGST to be used firstly
(d) Any of (a) & (b)
Answer:
(b) The ITC of IGST to be used firstly

Question 126.
Whenever the ITC of CGST is to be utilised, it shall be used firstly for payment of
(a) CGST
(b) SGST
(c) IGST
(d) UTGST
Answer:
(a) CGST

Question 127.
Consider the following:

Type of  GST                       ITC Available		GST on out­ward supplies
IGST	7,00,000	3,00,000
CGST	65,000	1,64,000
SGST	48,000	1,64,000

Considering the changes made wide the Central GST (Amendment) Act, 2018, what would be the balance of IGST, CGST & SGST to be carried forward₹
(a) ₹ 4,00,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(b) ₹ 2,36,000 (IGST), ₹ 65,000 (CGST) and ₹ Nil (SGST)
(c) ₹ 72,000 (IGST), ₹ 65,000 (CGST) and ₹ 48,000 (SGST)
(d) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
Answer:
(c) ₹ 72,000 (IGST), ₹ 65,000 (CGST) and ₹ 48,000 (SGST)

Question 128.
Consider the following:

Type of GST	ITC Available	GST on out­ward supplies
IGST	2,10,000	6,00,000
CGST	5,10,000	8,20,000
SGST	4,20,000	8,20,000

Considering the changes made vide the Central GST (Amendment) Act, 2018, what would be the amounts of IGST, CGST & SGST payable through Cash Ledger?
(a) ₹ 3,90,000 (IGST), ₹ 3,10,000 (CGST) and ₹ 4,00,000 (SGST)
(b) ₹ Nil (IGST), ₹ 4,30,000 (CGST) and ₹ 4,00,000 (SGST)
(c) ₹ Nil (IGST), ₹ 3,10,000 (CGST) and ₹ 7,90,000 (SGST)
(d) None of the above.
Answer:
(a) ₹ 3,90,000 (IGST), ₹ 3,10,000 (CGST) and ₹ 4,00,000 (SGST)

Question 129.
Consider the following:

Type of GST	ITC, Available	GST on out­ward supplies
IGST	1,10,000	1,75,000
CGST	3,30,000	2,90,000
SGST	3,25,000	2,90,000

Considering the changes made vide the Central GST (Amendment) Act, 2018, what would be the amounts of IGST, CGST & SGST payable through Cash Ledger?
(a) ₹ 65,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(b) ₹ 25,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(c) ₹ 65,000 (IGST), ₹ 40,000 (CGST) and ₹ 40,000 (SGST)
(d) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
Answer:
(d) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)

Question 130.
Consider the following:

Type of GST	ITC Available	GST on out­ward supplies
IGST	25,000	1,80,000
CGST	65,000	18,000
SGST	75,000	18,000

Considering the changes made vide the Central GST (Amendment) Act, 2018, what would be the amounts of IGST, CGST & SGST payable through Cash Ledger
(a) ₹ 1,55,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(b) ₹ 51,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(c) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(d) None of the above
Answer:
(b) ₹ 51,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)

	IGST	CGST	SGST
GST Payable on Outward Supplies	1,80,000	18,000	18,000
Less: ITC of IGST	(25,000)	………..	………..
Less: ITC of CGST		(18,000)	………..
Less: ITC of SGST	………..	………..	(18,000)
Balance	1,55,000	Nil	Nil
Less: Balance ITC of CGST	(47,000)
Less: Balance ITC of SGST .	(57,000)
Balance GST payable in Cash	51,000	Nil	Nil

Question 131.
The available balance of input tax credit in the electronic ledger of the registered person on account of Union territory tax shall be utilized as per section 9 of UTGST Act, 2017
(a) First towards payment of central tax
(b) First towards payment of integrated tax
(c) First towards payment of union ter­ritory tax and the amount remaining, if any towards payment of integrated tax
(d) None of the above
Answer:
(c) First towards payment of union ter­ritory tax and the amount remaining, if any towards payment of integrated tax

Question 132.
What is the amount of ITC to be credited to electronic credit ledger (i.e. C,) is respect of following data:
T = 4,20,000
T₁ = 70,000
T₂= 11,000
T₃ = 35,000
(a) ₹ 3,04,000
(b) ₹ 3,39,000
(c) ₹ 3,50,000
(d) ₹ 4,31,000
Answer:
(a) ₹ 3,04,000
C₁=T- (T₁ + T₂ + T₃)
= 4,20,000 – (70,000 + 11,000 + 35,000)
= 3,04,000

Question 133.
Find out common credit of ITC (C₂) from the following:
T = 3,50,000
T₃ = 15,000
C₁ = 1,25,000
T₄ = 35,000
(a) ₹ 35,000
(b) ₹ 40,000
(c) ₹ 50,000
(d) ₹ 90,000
Answer:
(d) ₹ 90,000
C₂ = C₁ -T₄
= 1,25,000-35,000
= 90,000

Question 134.
What is the standard percentage of common credit, which is to be taken as credit attributable to Non-business pur­poses (i.e. D₂) ?
(a) 4%
(b) 5%
(c) 8%
(d) Actual Basis
Answer:
(b) 5%
5% of C₂ is considered as credit attributable to Non-Business Purposes

Question 135.
What is the total credit eligible?
(a) T4 + C3
(b) T₂ + C₂
(c) T + C₁
(d) D₁ + D₂
Answer:
(a) T4 + C3

Question 136.
The inadmissible credit to be reversed by the registered person in FORM GSTR- 3B is:
(a) T₁ + T₂
(b) T₃ + T₄
(c) C₁ + C₂
(d) D₁ +D₂
Answer:
(d) D₁ +D₂

Question 137.
Mukesh, a registered supplier, receives 100 invoices involving GST of ₹ 10 Lakh from various suppliers during January, 2020. Out of 100 invoices, 80 invoices involving GST of ₹ 6 Lakh have been up­loaded by the supplier in their respective GSTR-1 filed on the prescribed time. What is the amount of ITC that can be claimed for the month of December 2019 as new­ly invested Rule 36(4) of CGST Rules, 2016:
(a) ₹ 6,00,000
(b) ₹ 1,20,000
(c) ₹ 10,00,000
(d) ₹ 7,20,000
Answer:
(d) ₹ 7,20,000

Question 138.
(i) Total GST on Inputs (50 invoices) = ₹ 3,00,000
(iI) 40 invoices uploaded in GSTR-1 involving ITC ₹ 2,10,000.
(iii) 10 invoices not uploaded.
Compute the ITC that can be claimed in GSTR-3B in view of Rule 36(4) inserted in CGST Rules with effect from 1-1-2020.
(a) ₹ 3,00,000
(b) ₹ 2,10,000
(c) ₹ 1,50,000
(d) ₹ 2,31,000
Answer:
(d) ₹ 2,31,000

Going through the Concept of Time, Value & Place of Taxable Supply – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Concept of Time, Value & Place of Taxable Supply – Tax Laws CS Executive MCQs

Question 1.
Which one of the following is inter-State supply?
(a) Goods supplied by Mohan of Delhi to Radha of Delhi
(b) Goods sold by Manas of Jaipur to Vijay of Udaipur
(c) Services provided by Salman of Mumbai to Amir of Pune
(d) Goods supplied by Roshan of Punjab to Mr. Shyam of Faridabad
Answer:
(d) Goods supplied by Roshan of Punjab to Mr. Shyam of Faridabad

Question 2.
The supply of Goods/Services/both, where location of supplier and the place of supply are in the same State or same Union Territory under CGST Act, 2017 and UTGST Act, 2017 is known as a ……………..
(a) Inter-State supply
(b) Export supply
(c) Intra-State supply
(d) Not Intra-State supply
Answer:
(c) Intra-State supply

Question 3.
Which of the following is considered as Inter-State Supply?
(a) Supplies received from SEZ unit in Noida to Domestic Tariff Area
(b) Supplies made to SEZ developer in Kandla from Kerala
(c) Goods imported from Japan
(d) All of the Above
Answer:
(c) Goods imported from Japan

Question 4.
Which of the following is not considered as Intra-State Supply?
(a) Supplies to and by SEZ
(b) Imported goods till they cross the customs frontiers of India
(c) Supplies made to a foreign tourist taking the goods out of India
(d) All of the above
Answer:
(d) All of the above

Question 5.
The limit of nautical miles from base line of sea coast into the sea in order to determine the supply in territorial water as per section 9 of the IGST Act, 2017 is :
(a) Upto 7 nautical miles
(b) Upto 10 nautical miles
(c) Upto 12 nautical miles
(d) Upto 20 nautical miles
Answer:
(c) Upto 12 nautical miles

Question 6.
IGST is payable for ………………..
(a) Inter-State supply
(b) Intra-State supply
(c) Both (a) and (b)
(d) None of the above
Answer:
(a) Inter-State supply

Question 7.
Tax on inter-State supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged to:
(a) CGST and SGST
(b) CGST and UTGST
(c) CGST and IGST
(d) IGST
Answer:
(d) IGST

Question 8.
Which of the following supplies can be regarded as intra-State supply?
(a) Import of goods
(b) Export of goods
(c) Transferred to SEZ
(d) None of the above
Answer:
(d) None of the above

Question 9.
Export of service does not include:
(a) The supplier of service located outside India
(b) The recipient of service located outside India
(c) The place of supply of service is outside India
(d) The supplier of service is located in India
Answer:
(a) The supplier of service located outside India

Question 10.
1 Nautical Mile is equal to ……………..
(a) 1.253 Km
(b) 1.853 Km
(c) 1.583 Km
(d) None of the above
Answer:
(b) 1.853 Km

Question 11.
The expression territorial waters has not been defined under GST laws. It should be understood that area up to nautical miles from base line of sea coast into the sea.
(a) 10
(b) 12
(c) 15
(d) 18
Answer:
(b) 12

Question 12.
Which one of the following is inter-State supply?
(a) Supplier and Recipient are in same State
(b) Supplier and Recipient are in same Union Territory
(c) Supplier and Recipient are in, different States/Union Territory
(d) All are intra-State supplies
Answer:
(c) Supplier and Recipient are in, different States/Union Territory

Question 13.
Some goods were supplied to a fishing trawler located in territorial waters near “YANAM”, a part of Union Territory of Puducherry. Which of the following statement is correct?
(a) Since the nearest base line is at YANAM, place of supply shall be the Union Territory of Puducherry
(b) IfthesupplierislocatedinPuducherry, it shall be an INTRA-STATE Supply
(c) If the supplier is located in Chennai, it shall be an INTER-STATE supply
(d) All of the above
Answer:
(d) All of the above

Question 14.
Which of the following statement is incorrect?
(a) Under GST, the supplies may be Inter-State or Intra-State
(b) If the location of supplier & the place of supply is within the same State, it is an Intra-State supply
(c) If the location of supplier & the place of supply are in different same States, it is an Inter-State supply
(d) Import of goods is neither Inter-State nor Intra-State
Answer:
(d) Import of goods is neither Inter-State nor Intra-State

Question 15.
In which of the following case, CGST and SGST will be levied?
(a) Supply by Mr. A of Delhi to Mr. B of Ghaziabad (UP)
(b) Supply by Mr. A of Delhi to Mr. Z of Delhi
(c) Supply by Mr. C of Chandigarh to Mr. D of Chandigarh
(d) Supply by Mr. E of Puducherry to Mr. F of Goa
Answer:
(b) Supply by Mr. A of Delhi to Mr. Z of Delhi

Question 16.
What is the taxable event under GST?
(a) Manufacture of goods
(b) Receipt of consideration
(c) Supply of goods or services or both
(d) None of the above
Answer:
(c) Supply of goods or services or both

Question 17.
The place of supply is important to determine the ….
(a) Kind of tax
(b) Rate of Tax
(c) Value of supply
(d) Neither (a) nor (b)
Answer:
(a) Kind of tax

Question 17A.
The services under GST is …………….. in nature.
(a) Tangible
(b) Intangible
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(b) Intangible

Question 17B.
Place of supply provisions are contained in …………
(a) CGST Act
(b) SGST Act
(c) UTGST Act
(d) IGST Act
Answer:
(d) IGST Act

Question 18.
In which case, no question arises about availability of ITC?
(a) B2B supply
(b) B2C supply
(c) Supply by manufacture to retailer
(d) None of the above
Answer:
(b) B2C supply

Question 19.
Tax on inter-State supplies, import into India, supplies made outside India and supplies made in SEZ shall he charged to :
(a) CGST and SGST
(b) CGST and UTGST
(c) CGST and IGST
(d) IGST
Answer:
(d) IGST

Question 20.
Which section of IGST Act 2017 deals with place of Supply of services, where location of supplier and recipient is in India?
(a) Section 9
(b) Section 10
(c) Section 11
(d) Section 12
Answer:
(d) Section 12

Question 20A.
Which of the following has not been defined in IGST Act?
(a) Location of supplier of services
(b) Location of recipient of services
(c) Location of supplier of goods
(d) Both (a) and (b)
Answer:
(c) Location of supplier of goods

Question 20B.
The place of business, in CGST, does not include:
(a) Place from where business is ordinarily carried on
(b) Place where a taxable person maintains his books of account
(c) Place where a taxable person is engaged in business through broker
(d) Place where the recipient is situated and registered.
Answer:
(d) Place where the recipient is situated and registered.

Question 20C.
Which of the following is incorrect as regards Fixed Establishment?
(a) Place characterized by sufficient degree of permanence
(b) Registered place of business
(c) It has sufficient human and technical resource to supply and receive services
(d) Number of staff at a location is irrelevant.
Answer:
(d) Number of staff at a location is irrelevant.

Question 21.
Mr. A registered person in Delhi, is supplier of mobile Phone. Mr. B, unregistered person resides in Bihar, came to Delhi for IAS coaching, bought one mobile Phone from Mr. A. Which is the place of supply in this situation?
(a) Delhi
(b) Bihar
(c) Any of A or B
(d) None of the above
Answer:
(a) Delhi

Question 22.
In case of domestic transactions involving movement of goods, the place of supply shall be location of goods at the time at which movement of goods
(a) Starts for delivery
(b) Terminates for delivery
(c) Either (a) or (b), at the option of Supplier
(d) Either (a) or (b), at the option of Recipient
Answer:
(b) Terminates for delivery

Question 23.
Mr. A registered person having head office in Uttar Pradesh and it’s one of the Branch office is in West Bengal. From the branch office, Mr. A supplied tools to Mr. B registered in Rajasthan. Which is the place of supply in this situation?
(a) Uttar Pradesh
(b) West Bengal
(c) Rajasthan
(d) None of the above
Answer:
(c) Rajasthan

Question 24.
Mr. Murari of Nasik, Maharashtra sells electronic items to Mr. Subodh of Pune, Maharashtra for delivery at the place of Subodh in Pune. The place of supply and the nature of supply shall be:
(a) Nasik, Inter-State
(b) Nasik, Intra-State
(c) Pune, Inter-State
(d) Pune, Intra-State
Answer:
(d) Pune, Intra-State

Question 24A.
Mr. Varad with registered place of business in Mumbai and having other fixed establishments in Delhi, Ghaziabad, Jaipur and Faridabad. He enters into an agreement with Mr. Vinod in Mumbai for up gradation and maintenance of software’s for his offices. The services are received in Mumbai and then the same is utilized in the other offices. What will be the location of the recipient of service by Mr. Varad?
(a) Mumbai
(b) Delhi and Ghaziabad
(c) Jaipur and Faridabad
(d) All of the above
Answer:
(a) Mumbai

Question 24B.
As per section 7(1) of IGST Act, Inter-State supply means supply of goods where the location of supplier and place of supply are in
(a) Two different states
(b) Two different UT
(c) A State and UT
(d) All of the above
Answer:
(d) All of the above

Question 24C.
Which of the following is not inter-State supplies?
(a) Import of services
(b) Supplies to International tourists
(c) Import of goods when they are beyond Customs Frontier of India
(d) Supply of goods and/or services by/ to SEZ
Answer:
(c) Import of goods when they are beyond Customs Frontier of India

Question 25.
Mr. Gautam of Meerut (registered in UP) asks Mr. Rohit Shetty of Mumbai (Registered in Maharashtra) to deliver goods to his buyer Mr. Motabhai at Surat, Gujarat. As per section 10(1)(2) of IGST Act, the place of supply shall be …………..
(a) Meerut (UP)
(b) Mumbai (Maharashtra)
(c) Surat (Gujarat)
(d) None of the above
Answer:
(a) Meerut (UP)

Question 26.
Manish, a registered supplier under GST in Mumbai, is directed by PRC Enterprises, Andhra Pradesh to deliver goods valued at ? 2,50,000 to Kumar of Pune in Maharashtra. The goods were delivered by Manish to Kumar locally in Maharashtra. The place of supply of this transaction between Manish and PRC Enterprises shall be
(a) Mumbai, Maharashtra
(b) Andhra Pradesh
(c) Pune, Maharashtra
(d) None of the above
Answer:
(b) Andhra Pradesh

Question 27.
As per section 10(I)(fe) of IGST Act, in case of “Bill TO Ship TO” Model, the place of supply shall be the principal place of
(a) Supplier
(b) Recipient
(c) Third person
(d) None of the above
Answer:
(c) Third person

Question 28.
In case of domestic transaction of supply not involving movement of goods, the place of supply, as per section 10(I)(c) shall be …
(a) Location of supplier
(b) Location of Recipient
(c) Location of goods at the time of delivery to the recipient
(d) None of the above
Answer:
(c) Location of goods at the time of delivery to the recipient

Question 29.
A purchases a machine from Mr. B, where both A and B are in Delhi. The machine, however, needs to be installed in Faridabad (Haryana). The place of supply as per section 10(I)(d) shall be
(a) Delhi
(b) Haryana
(c) Any of (a) and (b) at the option of supplier
(d) Any of (a) and (b) at the option of recipient
Answer:
(b) Haryana

Question 29 A.
Mr. Anil of Delhi sells 50 motor-pumps to Mr. Bhuvan of Pune, Maharashtra for delivery at Mr. Bhuvan’s place of business in Pune. What is the place of supply of goods?
(a) Delhi
(b) Pune, Maharashtra
(c) It is not supply
(d) None of the above
Answer:
(b) Pune, Maharashtra

Question 30.
Mr. Kartik located in Ghaziabad (UP) places an order to Mr. Vipul of Jaipur (Rajasthan) for installation of machinery at his factory in Wazirpur Industrial Area (Delhi). Mr. Vipul (supplier) procured different parts from two States Gujarat and Madhya Pradesh. The machine was assembled and installed in factory of Mr. Kartik in Delhi. The place of supply shall be
(a) Delhi
(b) UP
(c) Rajasthan
(d) Gujarat
Answer:
(a) Delhi

Question 31.
When the goods are supplied on board or conveyance, then as per section 10(l)(c) of IGST Act, the place of supply shall be the location at which such goods are taken on board. This conveyance includes
(a) Vessel
(b) Aircraft
(c) Train or Motor Vehicle
(d) All of the above
Answer:
(d) All of the above

Question 32.
Ram & Company of Delhi has taken a contract to supply of food in New Delhi-Mumbai Rajdhani Express and the supplies of food in the train are being taken on board at Kota in Rajasthan from Agarwal Food & Caterers. The place of supply in such case shall be
(a) Delhi
(b) Kota
(c) Mumbai
(d) None of the above
Answer:
(b) Kota

Question 33.
Ms. P (New Delhi) boards a New Delhi-Kolkata flight to attend a business meeting at Kolkata. She buys lunch in the flight. The food items were loaded into the aircraft at New Delhi. The airline is registered in New Delhi and Kolkata. The place of supply of such food articles shall be …………..
(a) New Delhi, since it is the starting point
(b) New Delhi, since she boarded flight at Delhi
(c) New Delhi, since goods were taken on board at Delhi
(d) Kolkata
Answer:
(c) New Delhi, since goods were taken on board at Delhi

Question 34.
Mr. Manmohan, an unregistered person, (New Delhi) is travelling from New Delhi to Habibganj in a train. The train starts at New Delhi and stops at four stations before reaching Bhopal. These stations are Mathura, Agra, Gwalior and Jhansi. The food items were taken into the train at Agra (UP). Mr. Manmohan buys lunch on board when the train was in Jhansi. The place of supply shall be
(a) New Delhi
(b) Mathura
(c) Agra
(d) Jhansi
Answer:
(c) Agra

Question 35.
Mahima Limited located in Surat (Gujarat) is exporting goods on the basis of order received from Relto Inc. located in USA. Determine the place of supply and the type of GST to be levied.
(a) Gujarat, CGST & SGST
(b) Gujarat, IGST
(c) USA, CGST & SGST
(d) USA, IGST
Answer:
(d) USA, IGST

Question 36.
CA. K. M. Bansal, registered in New Delhi provided consultancy services to his client Mr. Ravinder Singh who is a resident of Khurja (UP) but is not registered under GST. What shall be the place of supply?
(a) New Delhi ie. place of supplier as recipient is unregistered
(b) UP i.e. place of recipient as the address of Ravinder is available on records of supplier
(c) New Delhi, as it is a supply of services
(d) None of the above
Answer:
(b) UP i.e. place of recipient as the address of Ravinder is available on records of supplier

Question 37.
Mr. Jhunjhunwala is located in Pune (Maharashtra) and has provided services to the following:
I. A registered person located in UP
II. A non-registered person located in Rajasthan
III. A non-registered person located in Goa whose address does not exist on record
IV. A registered person located in Pune (Maharashtra)
V. A non-resident person located in Assam
Determine the cases wherein the supply shall be treated as Intra-State.
(a) I&n
(b) n&III
(c) m&iv
(d) IV &V
Answer:
(c) m&iv

Question 38.
Refreshments were supplied on board in an aircraft proceeding from Chennai to Delhi. It had a stop at Hyderabad. The refreshments were taken on board at Hyderabad. The place of supply is:
(a) Delhi
(b) Chennai
(c) Hyderabad
(d) None of the above
Answer:
(c) Hyderabad

Question 39.
Mr. Vibhuti Narain, a resident of Delhi, holds an account in SBI in Delhi. He goes to Ahmedabad for work. During his visit to Ahmedabad he takes certain services relating to his account from State Bank of India in Ahmedabad in relation to some transaction to be carried out at Mumbai. What will be the place of supply in this case?
(a) Delhi
(b) Ahmedabad
(c) Mumbai
(d) None of the above
Answer:
(a) Delhi

Question 40.
Raj Kiran is a Mumbai Based interior architect. He provided his professional services in respect of building located in Film City, NOIDA (UP). The payment has been made to Raj Kiran in Delhi. The place of supply and type of GST will be:
(a) Mumbai, IGST
(b) UP, IGST
(c) Delhi, IGST
(d) UP, SGST&CGST
Answer:
(b) UP, IGST

Question 41.
Amirchand is a resident and registered under GST in Delhi. He has properties in Gujarat and Himachal Pradesh also. He visited Mumbai along with family and dines in the restaurant of Taj Palace, Mumbai. The place of supply will be …………..
(a) Delhi
(b) Gujarat
(c) Himachal Pradesh
(d) Mumbai
Answer:
(d) Mumbai

Question 42.
Mr. Rajiv, a resident of Faridabad (Haryana) buys a ticket for a circus organised at Red Fort, Delhi by a circus company based in Kolkata. The place of supply shall be ………….
(a) Haryana
(b) Delhi
(c) West Bengal
(d) None of the above
Answer:
(b) Delhi

Question 43.
Heera Singh is travelling from Delhi to Andaman & Nicobar in an Airjet flight. He watched ‘English Movie’ on demand payment basis. The place of supply shall be
(a) First Scheduled point of departure
(b) First halt after departure
(c) Point of termination
(d) None of the above
Answer:
(a) First Scheduled point of departure

Question 44.
Mr. A, CEO of XY Limited, Mumbai (a company registered in Maharashtra) buys insurance cover for the inventory stored in company’s factory located at Mumbai, from Excellent Z Insurers, Chennai (registered in Tamil Nadu). The place of supply shall be….
(a) Mumbai
(b) Chennai
(c) Delhi
(d) None of the above
Answer:
(a) Mumbai

Question 45.
Kingfisher Airlines registered under GST and located in Mumbai operates flight from Delhi-Dubai-London-Dubai-Delhi. Mr. Vipin who is unregistered person, purchases air ticket for Delhi-London. Two tickets are issued to him showing Delhi-Dubai with a halt at Dubai for 5 Hours and Dubai-London. The place of supply shall be
(a) Delhi
(b) Dubai
(c) London
(d) None of the above
Answer:
(a) Delhi

Question 46.
Goods are imported by Mr. Prakash of Delhi from USA. The place of supply shall be
(a) USA
(b) Delhi
(c) Not a supply
(d) None of the above
Answer:
(b) Delhi

Question 47.
A of Pune supplied services to B of Punjab and B is not a registered person. A does not have B’s address records. In this case, the place of supply will be:
(a) Pune
(b) Punjab
(c) GST not applicable
(d) None of the above
Answer:
(a) Pune

Question 48.
Simran, an unregistered person, from New Delhi, has an account with a bank at New Delhi. She is on a vacation in Nainital and visits a bank of the same bank for getting a demand draft made. The place of supply would be
(a) New Delhi
(b) Nainital
(c) Any of (a) & (b)
(d) None of the above
Answer:
(a) New Delhi

Question 49.
Mr. Devidayal (unregistered) based in Ahmedabad, solicits the services of an event management company based in New Delhi, for his daughters marriage. They plan a destination wedding at a palace in Udaipur. Since, Mr. Devidayal is unregistered, the place of supply will be:
(a) Ahmedabad
(b) Udaipur (Rajasthan)
(c) Delhi
(d) None of the above
Answer:
(b) Udaipur (Rajasthan)

Question 50.
Mr. Ravi Raj a registered person based in Ahmedabad solicits the services of an Event Management Company based in Mumbai for his daughter’s marriage planned as a destination wedding at a Palace located in Udaipur. The place of supply in this case shall be ……………… And tax to be ……………. charged under
(a) Ahmedabad, IGST
(b) Mumbai, IGST
(c) Udaipur, IGST
(d) Ahmedabad, SGST
Answer:
(c) Udaipur, IGST

Question 51.
Go Air Airline sells various products to its passengers on board during the flight. The flight originates from Jaipur, halts at Mumbai and finally lands in Chennai. What would be place of supply of such products by the Airline company?
(a) Jaipur
(b) Chennai
(c) Location where goods were taken on board
(d) Location where passengers buying goods disembark
Answer:
(c) Location where goods were taken on board

Question 52.
Export of service does not include:
(a) The supplier of service located outside India
(b) The recipient of service located outside India
(c) The place of supply of service is outside India
(d) The supplier of service is located in India
Answer:
(a) The supplier of service located outside India

Question 53.
Inter-State supply of service is primarily covered in section ……………… of the IGST Act, 2017.
(a) 12
(b) 14
(c) 8
(d) 18
Answer:
(a) 12

Question 54.
ABC Consultants, registered at Delhi provides GST training to employees of XYZ & Co. at Panipat, Haryana. XYZ & Co. is unregistered under GST Act. In this case, which is the place of supply?
(a) Delhi
(b) Haryana
(c) Both of the above
(d) None of the above
Answer:
(b) Haryana

Question 55.
As per section 12(2) of CGST Act, 2017, where the supplier is liable to pay tax under forward charge, the time of supply shall be ….
(a) Date of issue of invoice or the last date on which supplier is required to issue invoice
(b) Date on which supplier receives the payment with respect to supplies
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(c) Earlier of (a) and (b)

Question 55A.
Which section of the CGST Act is related with the Time of Supply of goods?
(a) Section 12
(b) Section 13
(c) Section 14
(d) Section 15
Answer:
(a) Section 12

Question 55B.
The time of supply reflects:
(a) Time when GST is attracted
(b) Time when GST is collected by the supplier
(c) Time when GST is paid to Government
(d) All of the above
Answer:
(a) Time when GST is attracted

Question 56.
Mr. Ram supplied goods to Mr. Laxman. The invoice is dated 30-7-2018. Payment was received for the supply on 30-10-2018. The goods were dispatched on 5-8-2018. What is the time of supply under CGST Act?
(a) 5-8-2018
(b) 30-7-2018
(c) 30-10-2018
(d) None of the above
Answer:
(b) 30-7-2018
The time of supply shall be earlier of the following dates:
(a) Date of issue of invoice 30-7-2018
(b) Date of payment 30-10-2018
Time of Supply 30-7-2018
Thus, the time of supply shall be 30-7-2018

Question 57.
ABC Ltd. of Mumbai supplied goods to XYZ Ltd. of Delhi under a contract for the goods to be delivered at the factory of the buyers. Goods removed from the factory of ABC Ltd. on 19-8-2018 and were delivered in the factory of XYZ Ltd. of Delhi on 26-8-2018. Invoice for the supplies was raised by ABC Ltd. on 18-8¬2018. Payment of the bill was received on 20-9-2018. The time of supply in this case under GST be taken as :
(a) 9-8-2018
(b) 16-8-2018
(c) 18-8-2018
(d) 20-9-2018
Answer:
(a) 9-8-2018
The time of supply shall be earliest of the following dates:
(a) Actual Date for issue of invoice
(Since issued has been issued within time limit) —- 18-8-2018
(b) Date of payment —- 20-9-2018
Time of Supply —- 18-8-2018
Thus, the time of supply shall be —- 18-8-2018.

Question 58.
Kamal has supplied goods to Mr. X on 24-12-2017. The invoice had already been raised on 22-12-2017. Mr. X has paid the due amount on 29-12-2017. The receipt was entered in books of account by Kamal on 30-12-2017. But, the same was credited in his bank account on 2-1-2018. In this case, the time of supply shall be
(a) 22-12-2017
(b) 30-12-2017
(c) 2-1-2018
(d) 25-12-2017
Answer:
(a) 22-12-2017

Question 59.
ABC Ltd., supplied goods to XYZ Ltd. under a contract for the goods to be delivered to the factory of XYZ Ltd. The goods were removed from the factory of ABC Ltd. on 9th September, 2018 and the goods were delivered to the factory of XYZ Ltd. on 15th September, 2018.The invoice was issued on 18th September, 2018 and the payment was credited to ABC’s account on 20th Oct. 2018 although the entry in the books was made on 19th Sept., 2018 when the Cheque was received. The time of supply in this case will be:
(a) 18th September, 2018
(b) 9th September, 2018
(c) 15th September, 2018
(d) 20th October, 2018
Answer:
(a) 18th September, 2018
The time of supply shall be earliest of the following dates:
(a) Date of issue of actual invoice (Since issued within time —- 22-12-2017 limit)
(b) Date of payment entered in the books of account —– 30-12-2017
(c) Date on which amount credited in bank account —- 2-1-2018
Time of Supply (Earliest) —– 22-12-2017
Thus, the time of supply shall be ——- 22-12-2017

Question 59A.
What is the time of supply of goods under Reverse Charge Mechanism?
I. Date of removal of goods II. Date of receipt of goods
III. Date of payment by the recipient
IV. date of payment in the books of recipient
V. Date of receipt in the books of supplier
VI. Date of debit in the bank account of recipient
VII. Date immediately following 30 days from the issue of invoice by supplier
VIII. Date immediately following 60 days from the issue of invoice by supplier
(a) Earlier of II, IV, VI & VII
(b) Earlier of II, IV, VI & VIII
(c) Earlier of I, HI, V & VII
(d) Earlier of I, HI, V & VIE
Answer:
(a) Earlier of II, IV, VI & VII

Question 59B.
Varun Bros, supplied to Mr. Rishi certain goods, which are liable to be paid on Reverse Charge Basis. The following details are available:
(i) Date of receipt of goods by Rishi = 12-1-2020
(ii) Date on which payment is made by Rishi = 18-2-2020
(iii) Date on which above payment is entered in books by Rishi = 20-2-2020
(iv) Date on which above payment is debited in Bank A/c of Rishi = 21 – 2-2020
(v) Date of issue of invoice by Varun Bros. = 10-1-2020
Based on this information, what is the Time of Supply?
(a) 12-1-2020
(b) 18-2-2020
(c) 20-2-2020
(d) 21-2-2020
Answer:
(b) 18-2-2020

Question 60.

Date of Removal	1-10-2019
Date of Invoice	2-10-2019
Goods available to recipient	3-10-2019
Date of receipt of Payment	15-11-2019

The Time of Supply as per Section 12 of CGST Act, 2017 is:
(a) 1-10-2019
(b) 2-10-2019
(c) 3-10-2019
(d) 15-11-2019
Answer:
(a) 1-10-2019

Question 60A.
Under CGST, the liability to pay tax on supply of goods shall arise at ……….
(a) Time of supply
(b) Time of Payment
(c) Time of recording of transaction
(d) Time of issue of invoice
Answer:
(a) Time of supply

Question 61.
XYZ Ltd. has purchased for its customers 100 vouchers dated 24-12-2019 worth ₹ 1,000 each from ABC Ltd., a footwear manufacturing company. The values were issued by ABC Limited on 25-12-2019. The vouchers can be enchashed at retail outlets of Abe Ltd. the employees of XYZ Ltd. enchashed the same on 1-1-2020. The time of supply vouchers will be:
(a) 24-12-2019
(b) 25-12-2019
(c) 1-1-2020
(d) None of the above
Answer:
(b) 25-12-2019

Question 61A.
Sunil purchases a Sony Bravia-48 inch LED TV from Janki Dass Bros, on November 24, 2020 for ₹ 32,000, under Diwali Bumper offer. Sunil gets a voucher which can be used to purchase any item in the outlet up to ₹ 3,000. The rate of GST is different for different items in the outlet. The time of supply of voucher shall be ….
(a) Date of Time of supply of goods due to which voucher is received
(b) Date of issue of Voucher
(c) Date of redemption of Voucher
(d) Earliest of the above
Answer:
(c) Date of redemption of Voucher

Question 61B.
Services of Technical testing are provided on November 8, 2020 by High Tech Services to Rishi Enterprises. Invoice is issued on November 16,2020. The payment is received on 10th December, 2020. Time of supply is ……………..
(a) 8-11-2020
(b) 16-11-2020
(c) 10-12-2020
(d) None of the above
Answer:
(b) 16-11-2020

Question 62.

Date of actual provision of service	10-11-2019
Date of Invoice	30-11-2019
Date on which payment received	15-11-2019

The Time of supply of services under Section 13(2) of CGST Act is:
(a) 15-11-2019
(b) 10-11-2019
(c) 30-11-2019
(d) 25-11-2019
Answer:
(a) 15-11-2019

Question 63.
The invoice has not been issued within 30 days and payment is received after completion of service. The time of supply will be:
(a) Date of invoice
(b) Date of Completion of service.
(c) 30 days after completion of service
(d) Date of Payment
Answer:
(b) Date of Completion of service.

Question 63A.
Naman received an order from Suresh for supply of goods at agreed price of ₹ 1,20,000 on 10-11-2019. He issued invoice on 21-12-2019. Removal of goods was done on 27-12-2019 and Suresh received such goods on 2-1-2020. Suresh paid ₹ 50,000 as advance on 11-11-2019 and balance on 5-1-2020. What will be the time of supply of goods
(a) 11-11-2019
(b) 21-12-2019
(c) 27-12-2019
(d) 5-1-2020
Answer:
(b) 21-12-2019

Question 63B.
Determine the time of supply of goods under forward charge from the following particulars:
(i) Date of removal = 8-10-2020
(ii) Date of invoice = 10-10-2020
(iii) Date when goods made available to recipient = 12-10-2020
(iv) Date of receipt of payment = 5-10-2020
(a) 5-10-2020
(b) 8-10-2020
(c) 10-10-2020
(d) 12-10-2020
Answer:
(b) 8-10-2020

Question 63C.
After notification number 66/2017 dated 15th November, 2017, which of the following is not considered while determining time of supply of goods under forward charge
(a) Date of removal
(b) Date of payment
(c) Date of Invoice
(d) All are considered
Answer:
(b) Date of payment

Question 63D.
You are given the following particulars:
(i) Date of Invoice = 7-10-2020
(ii) Date of receipt of payment = 3-10-2020
(iii) Date when goods made available to recipient = 5-10-2020
Determine time of supply if supply does not involve movement of goods.
(a) 3-10-2020
(b) 5-10-2020
(c) 7-10-2020
(d) None of these
Answer:
(b) 5-10-2020

Question 64.
KMB Ltd. receives the order and advance payment on 25-1-2020 for carrying out an architectural decision job. It delivers the designs on 30-4-2020. By oversight, no invoice is issued at that time, and it is issued on 15-10-2020. The time of Supply service is:
(a) 15-10-2020
(b) 25-01-2020
(c) 30-4-2020
(d) None of these
Answer:
(b) 25-01-2020

Question 65.
Varad of Delhi received taxable services from Daniel Inc. of USA on 1-12-2019 for which an invoice was raised on same date. Varad made payment of services on 5-3-2020. The time of supply of service is:
(a) 1-12-2019
(b) 31-12-2019
(c) 31-1-2020
(d) 5-3-2020
Answer:
(c) 31-1-2020

Question 66.

Date of Supply of service	4-10-2019
Date of Invoice	28-9-2019
Date of Payment	30-9-2019

The GST rate has been changed w.e.f. 1-10 -2019. The time of supply is ………….. & ………….. rate of GST shall be applicable.
(a) 28-9-2019, Old Rate
(b) 28-9-2019, New Rate
(c) 30-9-2019, Old Rate
(d) 30-9-2019, New Rate
Answer:
(a) 28-9-2019, Old Rate

Question 66A.
During the course of search, it was found that 300 units were dispatched on 12th October, 2020 but no invoice was made. These units were not entered in the accounts. There was no evidence of receipt of payment. The due date of October return is 20th November, 2020. What is the time of supply of 300 units?
(a) 12th October, 2020
(b) 20th November, 2020
(c) Date of furnishing GSTR-1
(d) Inadequate information
Answer:
(a) 12th October, 2020

Question 67.
Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued:
(a) Before the time of Supply
(b) At the time of Supply
(c) 6 Months from the date of removal
(d) Earliest of above three.
Answer:
(d) Earliest of above three.

Question 67A.
Manav has introduced new product in the market. Since, there are so many competitors; he started selling goods on approval basis. What shall be the time of supply in respect of following information:
a. Removal of goods = 1-12-2019
b. Issue of invoice = 25-7-2020
c. Accepted by recipient = 25-7-2020
d. Receipt of payment = 20-7-2020
(a) 1-12-2019
(b) 2-6-2020
(c) 20-7-2020
(d) 25-7-2020
Answer:
(b) 2-6-2020

Question 67B.
Sultan International supplied goods to Wazir for ₹2,50,000 on 18-6-2020. Payment for the same can be made up to 30-6-2020 without any interest. But, Beyond 30-6-2020, Interest was payable @ ₹ 500 per day subject to a maximum of 50% of the invoice value. Wazir paid 20 days after the due date. After negotiations, the late charges (₹10,000) settled at ₹ 8,000 and payment was made on 24-7-2020. The time of supply as per section 12(6) of CGST Act in respect of ₹ 8,000 shall he :
(a) 18-6-2020
(b) 30-6-2020
(c) 11-7-2020
(d) 24-7-2020
Answer:
(d) 24-7-2020

Question 67C.
Consider the following in respect of sale on approval basis transaction:
(i) Date of removal of goods=30-7-2019
(ii) Issue of invoice by supplier = 20-12-2019
(iii) Payment by recipient = 6-1-2020
(iv) Acceptance by recipient=20-12-2019
What shall be the time of supply?
(a) 30-7-2019
(b) 20-12-2019
(c) 6-1-2020
(d) Earliest of the above
Answer:
(b) 20-12-2019

Question 68.
In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the, namely:
(a) The date of the receipt of the goods
(b) The date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier
(c) The date immediately following 30 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.
(d) Earliest of the above dates in (a), (b) and (c)
Answer:
(d) Earliest of the above dates in (a), (b) and (c)

Question 69.
If the supply is identifiable at the point at which Voucher is issued, the time of supply shall be
(a) Date of issue of Voucher
(b) Date of redemption
(c) 3 months from the date of issue
(d) Earlier of (a) and (c)
Answer:
(a) Date of issue of Voucher

Question 70.
When an unregistered dealer supplied goods to a registered dealer, the time of supply under reverse charge shall be earliest of the :
(a) date of receipt of goods
(b) date of supply of goods
(c) date of loading of goods in transport
(d) date of intimation of supply of goods
Answer:
(a) date of receipt of goods

Question 71.
Date on which the supplier receives the payment as per section 12 of CGST Act is
(a) Date entered in books of account
(b) Date of credit in bank account
(c) Date entered in books of account or date of credit in bank account, whichever is earlier
(d) Date on which receipt voucher is issued by supplier
Answer:
(c) Date entered in books of account or date of credit in bank account, whichever is earlier

Question 72.
What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Date of entry in books of account
(d) Earlier of (a) or (b) or (c)
Answer:
(b) Date of redemption of voucher

Question 73.
What is time of supply of goods liable to tax under reverse charge mechanism?
(a) Date of receipt of goods
(b) Date on which the payment is made
(c) Date immediately following 30 days from the date of issue of invoice by the supplier
(d) Earlier of (a) or (b) or (c)
Answer:
(d) Earlier of (a) or (b) or (c)

Question 74.
Section 12(6) prescribes that the time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which
(a) the supplier receives such addition in value
(b) the supplier becomes entitled to such
addition in value
(c) Earlier of (a) and (b)
(d) None of the above
Answer:
(a) the supplier receives such addition in value

Question 75.
What is the time of supply of service if the invoice is not issued within 30 days from the date of provision of service?
(a) Date of issue of invoice
(b) Date on which the supplier receives payment
(c) Date of provision of service
(d) Earlier of (b) & (c)
Answer:
(d) Earlier of (b) & (c)

Question 76.
What is the time of supply of service in ……….. case of reverse charge mechanism?
(a) Date on which payment is order to supplier
(b) Date immediately following 60 days from the date of issue of invoice
(c) Date of invoice
(d) Earlier of (a) and (b)
Answer:
(d) Earlier of (a) and (b)

Question 77.
What is the time of supply of service if ………. the invoice is issued within 30 days from
the date of provision of service?
(a) Date of issue of invoice
(b) Date on which the supplier receives payment
(c) Date of provision of service
(d) Earlier of (a) & (b)
Answer:
(d) Earlier of (a) & (b)

Question 78.
In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be ………..
(a) The date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, which ever is earlier, or
(b) The date immediately following 60 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(c) Earlier of (a) and (b)

Question 79.
The time of supply “where goods or services or both have been supplied in a situation where the invoice issued before the change in the rate of tax but payment received after the change in rate of tax”, as per section 14 of the CGST Act, 2017 shall be:
(a) Date of issue of invoice
(b) Date of receipt of payment or the date of issue of invoice whichever is earlier
(c) Date of receipt of payment
(d) None of the above
Answer:
(a) Date of issue of invoice

Question 80.
What is the time of supply of service where services are received from an associated enterprise located outside India?
(a) Date of entry of services in the books of account of recipient of service
(b) Date of payment
(c) Earlier of (a) & (b)
(d) Date of entry of services in the books of the supplier of service
Answer:
(c) Earlier of (a) & (b)

Question 80A.
On September 12, 2020, Surbhi Limited provides computer consultancy to Ganesh vide invoice dated October 2, 2020. Ganesh had paid entire consideration in advance even before the provision of service i.e. on 5th September, 2020. The time of supply of services shall be
(a) 5th September 2020
(b) 12th September 2020
(c) 2nd October 2020
(d) None of these
Answer:
(a) 5th September 2020

Question 80B.
Sumit is a registered supplier of plastic goods. On 10th April, 2020, Sumit received an order from Veenu for supply of a consignment of plastic goods. Sumit gets the consignment ready by 15th April, 2020. The invoice for the consignment was issued on 16th April, 2020. Veenu collects the consignment from the Godown of Sumit on 25th April, 2020 and hands over the cheque towards payment on the same date. The said payment is entered in the books of account of Sumit on 26th April, 2020 and amount is credited in their bank account on 27th April, 2020. Determine the time of supply of the plastic goods supplied by Sumit to Veenu as per the provisions of CGST Act, 2017.
(a) 16-4-2020
(b) 26-4-2020
(c) 27-4-2020
(d) None of the above
Answer:
(a) 16-4-2020

Question 80C.
Masoom Limited receive the order and advance payment on 4th October 2020 for carrying out an architectural design job for the office of Mr. Shyam. By oversight, no invoice is issued at that time and it is issued much later on December 22, 2020. The designs were delivered on 1st November 2020. When is the time of supply of service?
(a) 4-10-2020
(b) 1-11-2020
(c) 22-12-2020
(d) Latest of above
Answer:
(a) 4-10-2020

Question 80D.
A machine has to be supplied at site. It is done by sourcing various components from vendors and assembling the machine at site. The details of the Determine the time of supply(ies) in the above scenario for the purpose of payment of tax.

17th Sep­tember	Purchase order with ad­vance of ₹ 50,000 is received for goods worth ₹ 12 lakh and entry duly made in the seller’s books of account
20th Octo­ber	The machine is assembled, tested at site, and accepted by buyer
23rd Octo­ber	Invoice raised
4th No­vember	Balance payment of ₹ 11,50,000 received

(a) 17th September (₹ 50,000); 4th November (₹ 11,50,000)
(b) 17th September (₹ 50,000); 23rd October (₹ 11,50,000)
(c) 20th September (₹ 12,00,000)
(d) 20th October (₹ 12,00,000)
Answer:
(d) 20th October (₹ 12,00,000)

Question 80E.
Determine the time of supply from the following particulars:

8th September	Community hall booked for a marriage, sum ag­reed ₹ 1,20,000, advance ₹ 20,000 recorded in the books of account
10th September	Advance amount credited in bank account
2nd November	Marriage held in the Community hall
18th December	Invoice issued for ₹ 1,20,000 indicating the balance of ₹ 1,00,000 payable
22nd December	Balance ₹ 1,00,000 recorded in the books of accounted in the books of account
24th December	Payment ₹1,00,000 credited to the bank account

(a) 8th September (₹ 20,000); 2nd November (₹ 1,00,000)
(b) 8th September (₹ 20,000); 18th November (₹ 1,00,000)
(c) 10th September (₹ 1,20,000)
(d) 22nd December (₹ 1,20,000)
Answer:
(a) 8th September (₹ 20,000); 2nd November (₹ 1,00,000)

Question 81.
Allahabad Bank has provided the following detail in respect of a service provided by it.

1	Date of Supply of Services	6-12-2017
2	Date of issue of Invoice (Within 45 days of pro­vision of service)	10-1-2018
3	Date of receipt of payment	18-12-2017

(a) 6-12-2017
(b) 10-1-2018
(c) 18-12-2017
(d) None of the above
Answer:
(c) 18-12-2017
The time of supply shall be earlier of the following:
1 Date of issue of Invoice 10-1-2018
(Since it has been issued within 45 Days)
2 Date of receipt of payment — 18-12-2017
Being, the earlier of the two dates, the time of supply shall be 18-12-2017.

Question 82.
Jindal Consultancy services, provides the following details:

1	Date of Supply of Services	16-12-2017
2	Date of issue of Invoice	28-1-2017
3	Date of entering the payment in the books of supplier	29-1-2018
4	Date of credit of pay­ment in bank account	1-2-2018

Determine the time of supply of service.
(a) 16-12-2017
(b) 29-1-2018
(c) 1-2-2018
(d) None of the above
Answer:
(a) 16-12-2017

Amount (₹)
1 Date of Supply of Services — 16-12-2017
2 Date of issue of Invoice — NA (Note 1)
3 Date of entering the payment in the books of supplier — 29-1-2018
4 Date of credit of payment in bank account — 1-2-2018
Time of supply (Earliest of all the dates) — 16-12-2017
Note 1: In the given case, the invoice has not been issued within time limit. Therefore, the date of supply of service shall be considered and not the date of invoice

Question 83.
Determine the time of supply from the following information: 83A. An income-tax

May 4	Supplier invoices goods taxable on reverse charge basis to Shiv Hari (30 days from the date of issuance of invoice elapse on June 3)
June 12	Shiv-Hari receives the goods
July 3	Shiv-Hari makes the payment for goods

(a) 4 May
(b) 4 June
(c) 12 June
(d) 3 July
Answer:
(b) 4 June

Event	Date
Date of receipt of goods by Shiv-Hari	12 June
The date of payment	3 July
The date immediately following 30 days from the date of issue of invoice (ie. the 31st day from the date of issuance of invoice by supplier)	4 June
Point of Supply (Earliest)	4 June

Question 83A.
An income-tax and money laundering case against Mr. XYZ, working in a multinational company, reveals a large volume of undisclosed assets (on 11th June, 2020), which he claims as service income. On this basis, the GST authorities investigate the GST liability (on 14th July 2020). Dates of provision of service, whether in the first half or the second half of the financial year being scrutinised by income-tax authorities, are not known. Mr. XYZ voluntarily pays GST (on 5th August 2020)during the investigation. What is the time of supply of the services?
(a) 11-6-2020
(b) 14-7-2020
(c) 5-8-2020
(d) 20-9-2020
Answer:
(c) 5-8-2020

Question 83B.
Alkane Chemicals Limited Engaged the services of Choudhary Transporters for road transport of a consignment on 28 November 2020 and made advance payment for the transport today’s after i.e. on 30th November 2020. On account of “Kisan Aandolon” nationwide, the consignment could not be sent immediately and instead was sent on 12-12-2020. Invoice was received from the Transporter on 14-12-2020. What is the time of supply of GTA, if it comes under the purview of RCM?
(a) 28-11-2020
(b) 30-11-2020
(c) 12-12-2020
(d) 14-12-2020
Answer:
(b) 30-11-2020

Question 83C.
Shyam Limited is located in India and holding 60% of shares of Dwarka Limited, a UK based company. Dwarka Limited provides business auxiliary services to Shyam Limited, with the following particulars:
(i) Date of service by Dwarka 21-10-2020
(ii) Invoice issued by Dwarka 28-10-2020
(iii) Date of debit in the books of Shyam 5-11-2020
(iv) Date of payment by Shyam 12-2-2021
In the light of section 13(3) of CGST Act, 2017 of relating to supply by associated Enterprises, what is the time of supply of services by Dwarka Limited?
(a) 21-12-2020
(b) 28-10-2020
(c) 5-11-2020
(d) 12-2-2021
Answer:
(c) 5-11-2020

Question 83D.
Kanu & Kanu is located in India and holding 69% of shares of Prince Ltd., a Hungarian based company. Prince Ltd. provides Business Auxiliary Services to Kanu & Kanu Ltd. From the following details, determine the time of supply & Kanu & Kanu Ltd.:

Agreed consideration	US$5,00,000
Date on which services are provided by Prince Ltd.	15-12-2020
Date on which invoice is sent by Prince Ltd.	18-12-2020
Date of debit in the books of account of Kanu & Kanu Ltd.	29-12-2Q20
Date on which payment is made by Kanu & Kanu Ltd.	31-12-2020

(a) 15-12-2020
(b) 18-12-2020
(c) 29-12-2020
(d) 31-12-2020
Answer:
(c) 29-12-2020

Question 83E.
Consider the following supply by issue of voucher (for the same nature of service) valid for 6 months. The vouchers are issued after supply of first service:
(i) First service = 14-9-2020
(ii) Issue of voucher = 14-9-2020
(iii) Redemption of voucher = 20-1 -2021
(iv) Last date for acceptance of voucher = 13-3-2021
What is the time of supply of services provided by voucher?
(a) 14-9-2020
(b) 20-1-2021
(c) 13-3-2021
(d) Latest of these
Answer:
(a) 14-9-2020

Question 83F.
Varad Enterprises provides three different taxable services with varying rate of GST rates. On the occasion of New Year, the firm issued vouchers of ₹ 2,000 and ₹ 3,000 to Ram and Mohan respectively on 1st January 2020. The voucher issued to Ram can be redeemed for one specific service whereas the voucher issued to Mohan can be redeemed for either of the three services or partly for any combination of three services. The vouchers can be redeemed within one month only. Both redeemed the vouchers on 28th January 2020. What will be the time of supply of these vouchers.
(a) 1st January 2020
(b) 28th January 2020
(c) 1st Jan. 2020 (Ram) & 28th Jan. 2020 (Mohan)
(d) 1st Jan. 2020 (Mohan) & 20th Jan. 2020 (Ram)
Answer:
(c) 1st Jan. 2020 (Ram) & 28th Jan. 2020 (Mohan)

Question 83G.
An online portal, Best Info, raises in-voice for database access on 21 st February 2020 on Roy & Bansal Ltd. The payment is made by Roy & Bansal Ltd. by a demand draft sent on 25th February 2020, which is received and entered in the accounts of Best Info on 28th February 2020. Best Info encash the demand draft and there after, gives access to the database to Roy & Bansal Ltd. from 3rd March 2020. In the meanwhile, the rate of tax is changed from 1st March, 2020. What is the time of supply of the service of database access by Best Info?
(a) 21-2-2020
(b) 25-2-2020
(c) 28-2-2020
(d) 3-3-2020
Answer:
(a) 21-2-2020

Question 83H.
Mr. A buys a motor car from a card dealer. Mr. A has made payment for the same and car dealer has issued an invoice in respect of the same on 25th October, 2019. The car was to be delivered on 1st November, 2019 on occasion of his birthday. On 26th October, 2019, the rate of tax applicable to motor car was revised upward, and the car dealer is demanding differential amount of tax. Which rate of tax shall be applicable?
(a) Old rate only
(b) New rate only
(c) Rate as per the option of supplier
(d) Rate as per the option of recipient
Answer:
(a) Old rate only

Question 83-I.
The rate of GST has been changed w.e.f. 1-10-2020. Following particulars are given:

(i)	Date of supply of service	4-10-2020
(ii)	Date of Invoice	30-9-2020
(iii)	Date of payment	8-10-2020

What will be the Time of Supply and applicable GST rate?
(a) 30-9-2020; Old Rate
(b) 30-9-2020; New Rate
(c) 8-10-2019; Old Rate
(d) 8-10-2019; New Rate
Answer:
(a) 30-9-2020; Old Rate

Question 83J.
A service provider supplied service on 25-12-2020 for a value of ₹ 10,00,000. He issued invoice for the same on 5th January, 2021. The payment for the same was made on 8th January 2021. What is the time of supply as per section 14 of CGST Act, 2017?
(a) 25-12-2020
(b) 5-1-2021
(c) 8-1-2021
(d) Latest of above
Answer:
(b) 5-1-2021

Question 84.
Value of supply under section 15(1) is: ……………
(a) Wholesale price
(b) Market value
(c) Maximum retail price
(d) Transaction value
Answer:
(d) Transaction value

Question 85.
Discount given after the supply is deducted from the value of supply, if- ….
(a) Such discount is given as per the agreement entered into at/or before
the supply
(b) Such discount is linked to the relevant invoices
(c) Proportionate input tax credit is reversed by the recipient of supply
(d) All of the above
Answer:
(d) All of the above

Question 86.
Subsidy given by the Central Government or a State Government while determining value of taxable supply under Goods and Services Tax (GST) as per section 15 of the CGST Act, 2017:
(a) included in the transaction value ie. (value of taxable supply)
(b) just ignored no treatment
(c) shall not be included in transaction value ie. (value of taxable supply)
(d) deducted from the transaction value ie. (value of taxable supply)
Answer:
(c) shall not be included in transaction value ie. (value of taxable supply)

Question 87.
Which of the following shall not be included in value of supply
(a) GST
(b) Interest
(c) Late fee
(d) Commission
Answer:
(a) GST

Question 88.
Which of the following though shown in bill not be included in determining the value of supply for the purpose of GST
(a) Packing
(b) Discount
(c) Interest for late payment
(d) Installation Charges
Answer:
(b) Discount

Question 89.
When the supplier and recipient are not related and price is the sole consideration for supply, the valuation is done as per
(a) Section 15(1)
(b) Section 15(2)
(c) Section 15(3)
(d) All of the above
Answer:
(d) All of the above

Question 90.
In respect of supplies notified by the Central Government, on the recommendation of GST Council, the valuation is done as per
(a) Section 15(5)
(b) Rule 32
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

Question 91.
The value of supply should include:
(a) Any non-GST taxes, duties, Cesses, fees charged separately by supplier
(b) Interest, late fee or penalty for de-layed payment of any consideration for any supply
(c) Subsidies directly linked to the price except subsidies provided by the Central and State Governments
(d) All of the above
Answer:
(d) All of the above

Question 92.
When supplier and recipient are related and price is NOT the sole consideration, the valuation is done as per:
(a) Section 15(l)/(2)/(3)
(b) Section 15(4) and Rules (27 to 31)
(c) Section 15(5) and Rule 32
(d) None of the above
Answer:
(b) Section 15(4) and Rules (27 to 31)

Question 93.
Which of the following subsidy will
not be included in transaction value as per section 15(2)?
(a) Subsidy provided by Central Government
(b) Subsidy provided by NGO
(c) Subsidy provided by company under
corporate governance
(d) All of the above
Answer:
(a) Subsidy provided by Central Government

Question 94.
A him training Institute has subsidized its course on account of subsidies received. Which of the following shall be included in the value of supply
(a) Subsidy from Cine Association, Mumbai
(b) Subsidy from US Government
(c) Subsidy from Warren Brothers of Hollywood
(d) All of the above
Answer:
(d) All of the above

Question 95.
Mishra Enterprises had made supplies of ₹ 5,50,000 to Bee Kay Enterprises. Municipal Authorities of Jaipur on such supplies levied the tax @ 10% of ₹ 55,000. CGST and SGST chargeable on the supply was of ₹ 66,000-Packing charges not included in the price of t 5,50,000 amounted to ₹ 15,000. Subsidy of ₹ 25,000 was received from an NGO on the sale of such goods and the price of ₹ 5,50,000 is after taking into account the amount of subsidy so received. Discount offered is @ 1% which was mentioned on the invoice. The value of supply in this case shall be
(a) ₹ 6,45,000
(b) ₹ 6,39,500
(c) ₹ 6,20,000
(d) ₹ 6,38,550
Answer:
(b) ₹ 6,39,500

Question 96.
Where a laptop is supplied for ₹ 40,000 along with the barter of a printer that is manufactured by the recipient and the value of the printer known at the time of supply is ₹ 4,000 but the open market value of the laptop is not known, the value of the supply of the laptop is
(a) ₹ 44,000
(b) ₹ 40,000
(c) ₹ 6,000
(d) ₹ 4,000
Answer:
(a) ₹ 44,000
Since supplier and recipient are related, valuation cannot be done on the basis of Section 15(1).

Question 97.
What will the value of supply of the mobile phone sold by Micromax to Anil Kumar for ₹ 35,000 in exchange with of his old mobile phone. The sale price of the new mobile phone without exchange is ₹ 40,000. The value of old mobile phone so exchange with of ₹ 7,000.
(a) ₹ 35,000
(b) ₹ 40,000
(c) ₹ 42,000
(d) ₹ 33,000
Answer:
(b) ₹ 40,000

Question 98.
The rule 28 is applicable:
(a) When the supply is between distinct persons
(b) Where the supplier and recipient are related
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

Question 99.
If a lottery is not allowed to be sold in any State other than the organizing State, then it is treated as lottery …………by the
State Government:
(a) Run
(b) Authorised
(c) Allowed
(d) None of the above
Answer:
(a) Run

Question 100.
The supply of lottery is covered under
(a) Supply of goods
(b) Supply of services
(c) Neither goods nor services
(d) Both goods and services
Answer:
(a) Supply of goods

Question 101.
As per Notification No. 2/2017, the Supply of lottery is exempt from GST if :
(a) The Supplier of lottery is any person other than Government/Union territory/Local authority.
(b) The appropriate GST was paid when lottery was supplied by Government/ Union territory/Local authority to the authorized distributor.
(c) Both (a) and (b) conditions are satisfied
(d) No such condition is there
Answer:
(c) Both (a) and (b) conditions are satisfied

Question 102.
Which of the following statement(s) is/are correct
(a) Section 15 of CGST Act prescribes different provisions for valuation of goods and services
(b) CGST Act and IGST Act have different provisions for valuation of supply
(c) Section 15 of CGST Act prescribes same set of provisions for valuation of goods and services
(d) (a) and (b)
Answer:
(c) Section 15 of CGST Act prescribes same set of provisions for valuation of goods and services

Question 103.
Shivani Enterprises has sold goods with list price ₹ 40,000 to a customer. A discount of 10% is given to the customer, which is reflected in invoice, to arrive at the final price of ₹ 36,000. The transaction value is ……..
(a) ₹ 40,000
(b) ₹ 36,000
(c) ₹ 44,000
(d) None of the above
Answer:
(b) ₹ 36,000

Question 104.
X Limited and Y Limited are related person as per explanation to section 15 of CGST Act, 2017. X Limited sold goods to Y Limited at ₹ 80,000. The similar goods are sold by X Limited in the open market at ₹ 1,25,000. Is the valuation possible as per section 15(1)? Also find out the transaction value as per the applicable provisions.
(a) Yes, ₹ 1,25,000
(b) No, ₹ 1,25,000
(c) Yes, ₹ 80,000
(d) No, ₹ 80,000
Answer:
(b) No, ₹ 1,25,000

Question 105.
The US $ 3,000 are converted into UK £ 2,200. The RBI reference rate at that time for US $ is ₹ 63 per US dollar and for UK £ is ₹ 85 per UK Pound. What will be the Value of supply
(a) ₹ 1,870
(b) ₹ 1,250
(c) ₹ 1,95,000
(d) None of the above
Answer:
(a) ₹ 1,870

Step I	Find out value converted into Indian Rupees Value 1= US Dollar converted into Indian Currency = US $ 3,000 @ ₹ 63 = ₹ 1,89,000 Value 2= UK Pound converted into Indian Currency = UK £2,200 @ ₹ 85 = ₹ 1,87,000
Step II	Take lesser of the two amounts as calculated in step I Lower of ₹ 1,89,000 or ₹ 1,87,000 ie. 1 1,87,000
Step III	Value of Supply = 1 % of value determined in Step II = 1% of ₹ 1,87,000 = ₹ 1,870

Question 106.
Mr. A, an air travel agent, has provided the following details for February, 2018.

Basic air fare collected for domestic booking of tickets	₹ 5,00,000
Basic air fare collected for international booking of tickets	₹ 15,00,000

Determine the total value of taxable supply of services.
(a) ₹ 2,15,000
(b) ₹,25,000
(c) ₹ 1,75,000
(d) ₹ 2,00,000
Answer:
(c) ₹ 1,75,000
The value of supply shall be ₹ 1,75,000 (ie. aggregate of 5% of ₹ 5,00,000 and 10% of ₹15,00,000).

Question 107.
Vinod is an air travel agent. For the month of March 2018, he has collected ₹ 22,00,000 (Basic Fare for Domestic Booking) and ₹ 30,00,000 (Basic Fare for International Booking). Determine the value of taxable supply of services as per rule 32(3) of CGST Rules, 2017.
(a) ₹ 4,10,000
(b) ₹ 52,00,000
(c) ₹ 22,00,000
(d) ₹ 30,00,000
Answer:
(a) ₹ 4,10,000
The value of supply shall be determined as follows:

Type of Booking	Calculations	Value of Supply
Domestic	₹22,00,000 @ 5%	1,10,000
International	₹ 30,00,000 @ 10%	3,00,000
Total Value of Supply of services		4,10,000

Question 108.
“Santosh Interiors” have charged ₹ 3,77,600 from their client in respect of services provided in the Month of February, 2018. The rate of GST is 18%. The amount ₹ 3,77,600 is inclusive of GST and Tax has not been shown separately in the invoice. Determine the amount of total Tax included in invoice.
(a) ₹ 3,77,600
(b) ₹ 2,15,000
(c) ₹ 65,000
(d) ₹ 57,600
Answer:
(d) ₹ 57,600
Tax amount = Value inclusive of taxes \(\frac{\text { Tax Rate in } \%}{(100+\text { Tax rate in } \%)}\)
\(= 3,77,600 \times \frac{18}{(100+18)}=\approx 57,600\)

Question 109.
Babbur Automobiles of Jaipur has supplied the goods of ₹ 2,66,090 to Goel Automobiles of Ajmer in the month of March, 2019. The supply so made was inclusive of tax charged as CGST and SGST which on the products so sold as per rates prescribed under CGST 2017 is @ 18% The value of supply as per Rule 35 of the CGST Rules, 2017 of such supply shall be
(a) ₹ 2,66,090
(b) ₹ 2,25,000
(c) ₹ 3,13,986
(d) ₹ 2,25,500
Answer:
(d) ₹ 2,25,500

Question 110.
Goa Government has issued 1,600 tickets of Mahalakshmi weekly lottery (Face Value per ticket is ₹ 1,000 whereas the price as notified by official Gazette is ₹ 800) to Bhuvan Limited, who is one of its lottery distributor. This lottery can be sold by Bhuvan Limited even outside Goa. The applicable GST rate is 28%. The recipient of Supply is Head Office of Bhuvan Limited located at Pune, Maharashtra. What is the value of Supply as per relevant sub-rule of Rule 31A of CGST Rules, 2017.
(a) ₹ 1,25,000
(b) ₹ 1,35,000
(c) ₹ 16,00,000
(d) None of the above
Answer:
(a) ₹ 1,25,000
As per Rule 31 A(2)(a), the value of supply for lottery authorised by State Government shall be deemed to be 100/128 of the face value of tickets or of the price as notified in the official gazette by the organizing states, whichever is higher.
Value of Supply = No. of tickets × Face Value × \(\frac{100}{128}\)= 1600 × 100 × \(\frac{100}{128}\) =₹ 1,25,000

Question 111.
As per subrule (3) of Rule 31A, the value of Supply of actionable claim in the form of chance to win in betting, gambling of horse racing in a race shall be……….. of the face value of the bet or the amount paid into the totalisator.
(a) 80%
(b) 100%
(c) 100/112
(d) 120%
Answer:
(b) 100%

Question 112.
Which one of the following is treated as incidental expenses under section 15(2)(c)
(a) Commission
(b) Packing Expenses
(c) Weighment Charges
(d) All of the above
Answer:
(d) All of the above

Question 113.
The selling price of a notebook is ₹ 50. For notebooks sold to students in Government schools, a company uses its CSR funds to pay the seller ₹ 30, so that the students pay only ₹ 20 per note book. The value of the notebook will be as this is a non-government subsidy.
(a) ₹20
(b) ₹ 30
(c) ₹ 50
(d) ₹ 80
Answer:
(c) ₹50
Since the subsidy is given by person other than the Government, it will be added to the value of supply of the supplier who receives the subsidy. Accordingly, the value of the notebook would be ₹ 50

Question 114.
A supply priced at ₹ 10,000 is made, with a credit period of 1 Month for payment. Thereafter, interest of 12% is charged. The payment is received after the lapse of three Months from the date of supply. The amount of 12% p.a. (i.e. 1% per month) on ₹ 10,000 for two months after the free credit period is ₹ 300. Such interest will be to the value.
(a) Added
(b) Deducted
(c) Added at 50%
(d) None of the above
Answer:
(b) Deducted
As per section 15(2)(d), the value for a supply will include not only the base price but also the charges for delay in payment. Therefore, the interest will be added in the value.

Question 115.
Chitra Advertisers conceptualised and designed the advertising campaign for a new product launched by New Moon Private Ltd. for a consideration of ₹ 5,00,000. Chitra Advertisers owed ₹ 20,000 to one of its vendors in relation to the advertising service provided by it to New Moon Private Ltd. Such liability of Chitra Advertisers was discharged by New Moon Private Ltd. New Moon Private Ltd. delayed the payment of consideration and thus, paid ₹ 12,712 as interest. Assume the rate of GST to be 18%. The value of taxable supply made by Chitra Advertisers is
(a) ₹ 5,32,712
(b) ₹ 5,20,000
(c) ₹ 5,12,712
(d) ₹ 5,00,000
Answer:
(a) ₹ 5,32,712
Computation of Value of Taxable Supply

Service Charges	5,00,000
Discharge of liability of supplier	20,000
Interest for delay in payment	12,712
Value of Taxable Supply	5,32,712

Question 116.
Smart Ltd. provides you the following particulars relating to goods supplied by it:

Particulars	Amount
List price of the goods (exclu­sive of Taxes and discounts).	3,00,000
Special packing at the request of customer to be charged to the customer.	15,000
Duty levied by local authority on the sale of such goods.	30,000
CGST and SGST charged in invoice.	36,000
Subsidy received from a NGO (The price of ₹ 3,00,000 given above is after considering the subsidy)	10,000

Smart Ltd offers 5% discount of the List price of the goods which is recorded In the invoice for the goods. Determine the value of taxable supp1Íe made by Smart Ltd.
(a) ₹ 3,91,000
(b) ₹ 3,55,000
(c) ₹ 3,40,000
(d) None of these
Answer:
(c) ₹ 3,40,000

Question 117.
Surya Agencies has agreed to supply goods to customer’s premises. Goods valued, ₹80,000 are taxable at 5% IGST as it is an inter-State supply. It also pays freight arid transit insurance of ₹ 12,000. GTA is a registered entity and has charged GST (6% CGST and 6% SGST) under forward charge. What is the Invoice value of supply including IGST.
(a) ₹ 92,000
(b) ₹ 96,600
(c) ₹ 97,000
(d) None of the above
Answer:
(b) ₹ 96,600

Question 118.
AVON Electronics sells branded LED to Mr. Kishore for ₹ 45,000. However, an option is given to Kishore to pay instalments of ₹ 17,000 every month before 5th day of the following month, over next 3 months. Kishore agrees to pay by way of monthly instalment. What is Value of Supply
(a) ₹ 45,000
(b) ₹ 51,000
(c) ₹ 62,000
(d) None of these
Answer:
(b) ₹ 51,000

Question 119.
Prithvi Theaters organized a musical evening and charged ₹ 2,500 per person (any age). The State Government imposed entertainment tax @ 5%, which was also collected by the organizer. The GST is 18%. What is the Value of Supply at which GST shall be charged.
(a) ₹ 2,500
(b) ₹ 2,625
(c) ₹ 3,098
(d) None of these
Answer:
(b) ₹ 2,625

Question 120.
Subhash Ghai owns a film coaching institute in Pune. The usual change per student is ₹ 2,50,000 per student for 1-year training programme, total amount being programme, total amount being payable at the time of admission. The training programme is subsidized as follows:

(i)	State Government of Maharashtra	₹ 10,000 per student
(ii)	Cine Association, Mumbai	₹ 25,000 per student
(iii)	Government of USA	₹ 30,000 per student
(iv)	Central Govern­ment	₹ 15,000 per student

Consequently, the institute charges ₹ 17,000 + GST @ 18%. What is Value of Supply?
(a) ₹ 1,70,000
(b) ₹ 2,00,600
(c) ₹ 2,25,000
(d) None of these
Answer:
(c) ₹ 2,25,000

Question 121.
Consider the following:

Transaction Value	₹ 4,00,000
Value of Taxable Supply	₹ 6,00,000
Rate of GST	9% CGST
	9% SGST

Customer (inclusive of GST)?
(a) ₹ 4,72,000
(b) ₹7,08,000
(c) ₹ 5,08,000
(d) None of these
Answer:
(c) ₹ 5,08,000

Question 122.
As per the definition of Family given in section 2(49) of CGST Act, 2017? Which of the following is not included in Family?
(a) Dependent Parents
(b) Grand-Parents (Dependent or not)
(c) Dependent brothers
(d) Children of the person
Answer:
(b) Grand-Parents (Dependent or not)

Question 123.
What are the provisions of the valuation rules applicable?
(a) Consideration is not in money terms
(b) Parties are related
(c) Transaction value is not reliable
(d) All of the above
Answer:
(a) Consideration is not in money terms

Question 124.
Which of the following will not be included in value of supply?
(a) Buying commission paid by buyer
(b) Commission paid to agent by supplier and recovered from buyer
(c) Packing Charges
(d) Testing and Certification Charges
Answer:
(a) Buying commission paid by buyer

Question 125.
Sita decided to gift a watch to her friend Gita. She requests the supplier to pack the watch in a particular packing to give it an attractive look. The special packing charges (₹ 500) is separately paid by Sita. Sita also paid for the watch. Which of the following statement is true about cost of packing?
(a) It will not be included in value of supply.
(b) It can be included if paid along with the price of the watch.
(c) It can be included if it is reflected in invoice
(d) It will be included in value even if paid separately.
Answer:
(d) It will be included in value even if paid separately.

Question 126.
As per section 15(2), which of the following subsidy will be included in value of taxable supply?
(a) Provided by Central Government
(b) Provided by State Government
(c) Provided by NGO, not linked to Price.
(d) Provided by NGO, directly linked to Price.
Answer:
(d) Provided by NGO, directly linked to Price.

Question 127.
Purshottam rents out a commercial building owned by him to Aakash for the month of December for which he charged a rent of ₹ 3,00,000. The owner paid the following:
Out of above, only maintenance charges have been reimbursed to Purshottam by Aakash and others are borne by the landlord. What is the Value of Supply for the month of December?
(a) ₹ 3,00,000
(b) ₹ 3,10,000
(c) ₹ 3,42,000
(d) ₹ 3,40,000
Answer:
(b) ₹ 3,10,000

Question 128.
Mr. X, a money changer, has exchanged US $ 10,000 to Indian rupees @ ₹ 64 per US $. Mr. X.
(a) ₹ 6,40,000
(b) ₹ 6,400
(c) ₹ 3,700
(d) None of these
Answer:
(c) ₹ 3,700

Question 129.
Rolex Forex Private Limited, registered in Delhi, is a money changer. It has undertaken the following purchase and sale of foreign currency: 1,000 US $ are purchased from Rajesh Enterprises at the rate of ₹ 68 per US $. RBI reference rate for US $ on that day is ₹ 68.60. What is the value of supply in each of the above cases in terms of Rule 32(2)(a) of the CGST Rules, 2017.
(a) ₹ 250
(b) ₹ 600
(c) ₹ 680
(d) None of these
Answer:
(b) ₹ 600

Question 130.
When the supplier offers discount to his customer in such a manner that there is increase in discount with increase in purchase volume, it is called as
(a) Volume Discount
(b) Trade Discount
(c) Normal Discount
(d) Staggered Discount
Answer:
(d) Staggered Discount

Question 131.
Hamdard Laboratories is a manufacturer of Rose Thandai. The company sells it to retail shop-keepers and gives 10 bottles free along with purchase of every 100 bottles. The price printed on the bottle is ₹ 500 per bottle, but the transaction value is ₹ 430 per bottle. During a month, the firm sold 25,000 bottles and gave away 2,500 bottles free to the retail-shopkeepers. What is the amount of GST @18%?
(a) ₹ 19,35,000
(b) ₹ 21,28,500
(c) ₹ 22,50,000
(d) ₹ 24,75,000
Answer:
(a) ₹ 19,35,000

Question 132.
Gagan Limited supplied a machine from its establishment located in Delhi to Dharti Limited @ ₹ 5,00,000. The company supplied such machines during the same period to independent recipient @ ₹ 7,31,600 (including GST @ 18%). What is Open Market Value in accordance with the provisions of CGST Act and the rules made thereof. It is given that Gagan Limited and Dharti Limited are related persons.
(a) ₹ 5,00,000
(b) ₹ 6,20,000
(c) ₹ 7,31,600
(d) None of these
Answer:
(b) ₹ 6,20,000

Question 133.
As per Rule 30, where the value of a supply of goods or services or both is not determined by any of preceding Rules, the value shall be 110% of the …………
(a) Cost of production or manufacture
(b) Cost of acquisition of such goods
(c) Cost of provision of such services
(d) Any of the above
Answer:
(d) Any of the above

Question 134.
Shiv sells a LED to Rahul for ₹ 40,000. Rahul provides free consultancy to Shiv (value of such consultancy is ₹ 8,000). The same LED is normally sold by Shiv to unknown person for ₹ 68,000. What is the value of supply of LED as per Rule 27 of CGST Rules, 2017
(a) ₹ 40,000
(b) ₹ 48,000
(c) ₹ 68,000
(d) None of these
Answer:
(c) ₹ 68,000

Question 135.
Mr. A sells a product to Mr. B for ₹ 18,000. Mr. B provided free consultancy to Mr. B valued at ₹ 3,000. The normal value of product is not available. The value of supply of product to Mr. B will be
(a) ₹ 18,000
(b) ₹ 21,000
(c) ₹ 15,000
(d) None of the above
Answer:
(b) ₹ 21,000

Question 136.
Zindagi Life Insurance Company Limited (ZLICL) has collected premium from subscribers and it intimates the amount allocated for investment to subscribers at the time of collection of premium. During the month of September 2018, it has collected the following receipts:

SI. No.	Particulars	Amount
1.	Premium for only risk cover	25,00,000
2.	Premium from new subscribers	40,00,000
3.	Renewal Premium	80,00,000
4.	Single premium on an annuity policy	1,00,00,000

All amounts are exclusive of tax. What is the value of supply by ZLICL in accordance with GST laws.
(a) ₹ 55,00,000
(b) ₹ 45,00,000
(c) ₹ 35,00,000
(d) ₹ 25,00,000
Answer:
(a) ₹ 55,00,000

Question 137.
A Limited is a software development company with specialisation in application and system softwares. It controls 40 per cent equity share capital in B Limited. A Limited develops an integrated ERP for B Limited for ₹ 7,80,000. A similar integrated software is developed by A Limited for an unrelated customer for ₹ 10,00,000. B Limited is eligible for full Input Credit for this input supply. What is the value of supply as per second proviso to Rule 28
(a) ₹ 7,80,000
(b) ₹ 10,00,000
(c) Either (a) or (b), at the option of supplier
(d) None of the above
Answer:
(a) ₹ 7,80,000

Question 138.
Which of the following is the residual method for determination of value of supply ………
(a) Rule – 28
(b) Rule-29
(c) Rule – 30
(d) Rule – 31
Answer:
(d) Rule – 31

Question 139.
The time of supply in case of voucher is “time of issue of voucher”, if the supply is against the voucher.
(a) Identifiable
(b) Not identifiable
(c) Variable
(d) Indecisive
Answer:
(a) Identifiable

Question 140.
Mr. Kalakar is a famous painter registered under GST in UP. In an art exhibition organised by “Lalit Kala Academy” in Delhi, he sends his art work. The visitor is allowed to purchase any painting exhibited for cash immediately. Suppose, the painting of Mr. Kalakar is purchased by one visitor, then at what point of time, supply is considered to have been made under GST
(a) When painting is completed by Mr. Kalakar
(b) When painting is sent from UP to Delhi for exhibition
(c) When painting is displayed at the exhibition by Lalit Kala Academy
(d) When painting is sold to one of the visitors in the exhibition
Answer:
(d) When painting is sold to one of the visitors in the exhibition

Question 141.
The rate of GST has been changed from 28% to 18% w.e.f. June 1.Date of supply of services: 10 June Date of issue of invoice: 9 June Date of receipt of payment: 28 May What will be the time of supply in accordance with section 14 of CGST Act, 2017
(a) June 9
(b) June 10
(c) June 1
(d) May 28
Answer:
(a) June 9

Question 142.
In case of notified supplies, the value of supply is determined as per …………. of CGST Rules, 2017.
(a) Rule 30
(b) Rule 31
(c) Rule 32
(d) Rule 33
Answer:
(c) Rule 32

Question 143.
The transaction value as per section 15(1) shall be the value of supply if ……..
(a) Supplier and recipient are not related
(b) Price is the sole consideration
(c) Rule 27 is applicable
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

Question 144.
In case of supply through an agent, which of the following Rule is applicable for valuation
(a) Rule 27
(b) Rule 28
(c) Rule 29
(d) Rule 30
Answer:
(c) Rule 29

Question 145.
Mr. Krishna has received an advance of ₹ 1,00,000 from his client in respect of service to be provided. But, Mr. Krishna is not sure about the rate of tax and the nature of supply of this service, which will be determined at the time of provision of service only. What will be the rate of tax and nature of supply of a service
(a) 10%, Inter-State supply
(b) 10%, Intra-State supply
(c) 18%, Inter-State supply
(d) 18%, Intra-State supply
Answer:
(c) 18%, Inter-State supply

Question 146.
As per section 15(3) of CGST Act, 2017, any discount given after the supply is deducted from the value of taxable supply, if ……………
(a) such discount is given as per the agreement entered into at/or before the supply
(b) such discount is linked to the relevant invoices
(c) proportionate input tax credit is reversed by the recipient of supply
(d) All of the above
Answer:
(d) All of the above

Question 147.
“GM Sales Ltd.” is a public limited company duly incorporated under the answers.
Companies Act, 2013 with its registered office in Delhi, where it ordinarily carries on its business of taxable goods. The company has a warehouse in NOIDA for storage of such taxable goods. What will be the place of business of “GM Sales Ltd.” under GST laws
(a) Delhi only
(b) NOIDA only
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(c) Both (a) and (b)

Question 148.
Mr. Roshan Singh is employed as a full time teacher in a Government school in Ghaziabad, UP. He has to purchase a laptop for his son. He visited the computer market situated in Nehru Place, Delhi. At the time of purchase, the shopkeeper insisted on demand draft instead of cash. Mr. Roshan got the demand draft generated at State Bank of India, registered in Delhi against cash. Mr. Roshan does not have a bank account in State Bank of India. Determine the place of supply of service provided by State Bank of India, Delhi to Mr. Roshan.
(a) Ghaziabad
(b) Delhi
(c) Any of the above
(d) None of the above
Answer:
(b) Delhi

Going through the Basics of Goods and Services Tax – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Basics of Goods and Services Tax – Tax Laws CS Executive MCQs

Question 1.
GST is a based tax levied on the basis of the ………… Principle.
(a) Consumption, Destination
(b) Utility, Destination
(c) Regressive, Destination
(d) Marginal, Welfare
Answer:
(a) Consumption, Destination

Question 2.
With the advent of GST, which of the following is subsumed ……………
(a) CST on Inter-State Sales
(b) VAT on Intra-State Sales
(c) Service Tax
(d) All of the above
Answer:
(d) All of the above

Question 3.
Under GST, the final tax is borne by ……………
(a) The end consumer
(b) The interim parties
(c) The supplier
(d) Partly by Government and balance by Supplier.
Answer:
(a) The end consumer

Question 4.
Since the GST is imposed concurrently by the Centre and the States, it can be said that India has adopted:
(a) Uni GST Model
(b) Dual GST Model
(c) Free Rein GST Model
(d) Double GST Model
Answer:
(b) Dual GST Model

Question 5.
For intra-State sales, the GST is divided between Centre and the State in the ratio
(a) Equally
(b) 60:40
(c) 40:60
(d) 25:75
Answer:
(a) Equally

Question 6.
A registered person of Delhi is buying and selling goods only in Delhi. The applicable law for GST in his case will be :
(a) State GST and CGST
(b) UTGST Act, 2017 and CGST
(c) GST (Compensation to States) Act, 2017 and CGST
(d) CGST Act, 2017 only
Answer:
(a) State GST and CGST

Question 7.
Which of the following has been kept out of the GST levy
(a) Generator
(b) Computer
(c) Jewellery
(d) Electricity
Answer:
(d) Electricity

Question 8.
The UTGST Act, 2017 is applicable to Union-Territories except:
(a) Andaman & Nicobar Islands
(b) Lakshadweep
(c) Chandigarh
(d) Delhi
Answer:
(d) Delhi

Question 9.
Which one of the following is kept outside the ambit of GST
(a) Alcoholic Liquor for human consumption
(b) Petroleum crude
(c) High Speed Diesel and Petrol
(d) All of the above
Answer:
(a) Alcoholic Liquor for human consumption

Question 9A.
As per section 2(52) of the CGST Act, 2017, the term “Goods” includes
(a) Actionable claims
(b) Growing crops, Grass
(c) Every kind of movable property other than money and securities
(d) All of the above
Answer:
(d) All of the above

Question 10.
The point at which the liability to charge tax arises is called as the
(a) Execution Event
(b) Taxable Event
(c) Effective Event
(d) Final Event
Answer:
(b) Taxable Event

Question 11.
The term “Goods” under GST does not include:
(a) Actionable claims
(b) Money and Securities
(c) Growing crops
(d) All of the above
Answer:
(b) Money and Securities

Question 11A.
Which of the following is an example of transaction in money under GST laws
(a) Deposit of principal amount in bank
(b) Amount withdrawn from bank
(c) Exchange of ₹ 2,000 note for 10 notes of ₹ 200 (without consideration)
(d) All of the above
Answer:
(d) All of the above

Question 11B.
The section 2(52) defines goods. Which of the following is not considered in this definition of ‘goods’
(a) Sale of shares of unlisted company
(b) Sale of perishable items of goods
(c) Sale of lottery tickets
(d) Sale of old twenty five-paisa coin at ₹ 25
Answer:
(a) Sale of shares of unlisted company

Question 12.
Which of the following GST Model is adopted in India
(a) Australian Model
(b) Bagchi-Poddar Model
(c) Dual Model
(d) America Model
Answer:
(c) Dual Model

Question 13.
An old mobile phone is exchanged for a new one and some additional cash has been paid. It is …..
(a) Transfer
(b) Barter
(c) Exchange
(d) Sale
Answer:
(c) Exchange

Question 14
…………… of CGST Act, 2017 lists down the activities which shall be treated neither as supply of goods nor as supply of services.
(a) Schedule I
(b) Schedule II
(c) Schedule III
(d) Schedule IV
Answer:
(c) Schedule III

Question 15.
As per Schedule I, any kind of disposal or transfer of business assets made by an entity on permanent basis qualifies as supply, even though it is without consideration. This provision would apply only if
(a) ITC has been availed on such assets
(b) ITC has not been availed on such assets
(c) ITC has been availed on other assets
(d) No such condition
Answer:
(a) ITC has been availed on such assets

Question 15A.
Which of the following services received without consideration will not be considered as supply under GST
(a) Import of services by a person in India from his sister (wholly dependent on such person in India) in America
(b) Import of services by a person in India from his brother well-settled in Japan (Independent)
(c) Import of services by a person in India from his son (wholly dependent on such person in India) in China
(d) Import of services by a person in India from his son well-settled in Germany
Answer:
(b) Import of services by a person in India from his brother well-settled in Japan (Independent)

Question 16.
Power to declare certain activities/ transactions as neither supply of goods nor of services is given in :
(a) Schedule IV
(b) Schedule III
(c) Schedule II
(d) Schedule I
Answer:
(b) Schedule III

Question 17.
Which of the following transactions shall be treated as supply without consideration
(a) Disposal of business assets where ITC has been availed
(b) Supply of goods and services between related persons in the course of/ furtherance of business
(c) The import of services by a person from a related person or from his establishment located outside India, in the course or furtherance of business
(d) All of the above
Answer:
(d) All of the above

Question 17A.
Goods have been supplied by a manufacturing company under free warranty. Which of the following statements is true in this regard
(a) No GST is chargeable on such re-placement
(b) Supply is not in the course of business
(c) Supplier is required to reverse ITC on the part/component replaced
(d) All of the above
Answer:
(a) No GST is chargeable on such re-placement

Question 18.
Renting of immovable property is ………….
(a) Supply of goods
(b) Supply of services
(c) Supply of both goods and services
(d) Neither goods nor services
Answer:
(b) Supply of services

Question 18A.
Which of the following is generally not considered as consideration
(a) Grant of pocket money
(b) Gift or reward (not in terms of reciprocity)
(c) Amount Paid for alimony for divorce
(d) All of the above
Answer:
(d) All of the above

Question 19.
When goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance as per provisions of CGST Act, 2017, is called as: ……………..
(a) Mixed Supply
(b) Uniform Supply
(c) Complex Supply
(d) Composite Supply
Answer:
(d) Composite Supply

Question 19A.
What would be the tax rate applicable in case of mixed supply
(a) Tax rate applicable on supply attracting lowest rate of tax
(b) Tax rate applicable on supply attracting highest rate of tax
(c) Average of applicable tax rates
(d) Flat @ 18%
Answer:
(b) Tax rate applicable on supply attracting highest rate of tax

Question 20.
A charger has been supplied by the vendor along with the mobile phone. It is ………..
(a) Mixed Supply
(b) Composite Supply
(c) Embedded Supply
(d) Hybrid Supply
Answer:
(b) Composite Supply

Question 20A.
M/s Vikas Publishers Ltd. agreed to sell its business to S. Chand & Sons for a consideration of ₹ 60 Crores. M/s Vikas Publishers further agrees that it will not conduct same or similar business for a period of 10 years, for which S. Chand & Sons paid ₹ 2 crores. As per the provisions of GST, consideration is
(a) ₹ 60 Crores
(b) ₹ 2 Crores
(c) ₹ 62 Crores
(d) None of these
Answer:
(c) ₹ 62 Crores

Question 20B.
ABC Ltd. is a manufacturer of cosmetic products supplied in a package consisting of hair Oil (GST Rate 18%), Shampoo (GST rate 28%) and Comb (GST Rate 12%). The price per package is ₹ 800 (exclusive of taxes). In a month, 500 such packages were supplied by the company. What is the nature of supply and the amount of GST
(a) Composite; ₹ 1,12,000
(b) Composite; ₹ 48,000
(c) Mixed; ₹ 1,12,000
(d) Mixed; ₹ 48,000
Answer:
(c) Mixed; ₹ 1,12,000

Question 21.
Shiv Steels is a renowned furniture house. As a part of their business policy, the firm donated 5 office tables to charitable school. The ITC has been taken in respect of these goods. Under GST:
(a) It is supply of goods as per Schedule I
(b) It is supply of services as per Schedule I
(c) It is supply of goods as per Schedule II
(d) It is not supply as per Schedule III
Answer:
(a) It is supply of goods as per Schedule I

Question 21A.
Transactions falling outside the ambit of supply are provided in
(a) Schedule I
(b) Schedule II
(c) Schedule IE
(d) All of the above
Answer:
(c) Schedule IE

Question 22.
Section 7 of the CGST Act, 2017 defines the term ‘supply’ which are further being enumerated in the various schedules as specified in that section. The section includes certain transactions which are even without consideration but being construed as supply and also known as deemed supply. Such transactions are being specified in
(a) Schedule II
(b) Schedule I
(c) Schedule El
(d) Schedule IV
Answer:
(b) Schedule I

Question 22A.
Mansi Trading Ltd. made certain gifts to its employees as under:
(i) Mr. Raj ₹ 60,000
(ii) Mr. Dev ₹ 50,000
(iii) Mr. Dilip ₹ 40,000
Which of the above gifts shall be liable to GST
(a) (i), (ii) & (iii)
(b) (i)&(ii)
(c) (i) only
(d) All are not liable
Answer:
(c) (i) only

Question 22B.
As per Schedule III, the services by an employee to the employer in the course of or in relation to his employment are neither supply of goods nor supply of services. In this regard, activities carried by which one of the following for consideration is excluded from the scope of supply
(a) Executive Director
(b) Independent Director
(c) Nominee Director
(d) Non-Executive Director
Answer:
(a) Executive Director

Question 22C.
Which of the following transactions does not qualify as supply under GST law
(a) Import of services by Suresh without consideration for the purposes of his business from his son “Mukesh” living outside India.
(b) Supplies made by the principal to his agent (registered) situated within the same State.
(c) Disposal of car without consideration (ITC has not been claimed).
(d) Supply of service by Head Office (Delhi) to its own branch situated in Mumbai.
Answer:
(c) Disposal of car without consideration (ITC has not been claimed).

Question 23.
In view of Schedule II, which of the following should be classified as supply of goods
(a) Transfer of right in goods without transfer of title in goods
(b) Transfer of title in goods
(c) Works contract
(d) Agreeing to obligation to refrain from an act.
Answer:
(b) Transfer of title in goods

Question 23A.
The distinction between supply of goods and supply of services is relevant for determination of
(a) Place of supply
(b) Time of supply
(c) Valuation of supply
(d) All of the above
Answer:
(a) Place of supply

Question 23B.
When the premises are sold during construction of building and before obtaining occupation certificate, it is considered as ……….
(a) Supply of service by builder to prospective buyer
(b) Supply of goods by builder to prospective buyer
(c) Transaction in sale of immovable property and is liable to GST
(d) Transaction in sale of immovable property but is not liable to GST
Answer:
(a) Supply of service by builder to prospective buyer

Question 24.
The job work performed by job worker has been classified by Schedule II as ……..
(a) Supply of goods
(b) Supply of services
(c) Either goods or services
(d) Neither goods nor services
Answer:
(b) Supply of services

Question 24A.
As per Schedule II of CGST Act, 2017, which of the following is a supply of services
(a) Transfer of title in goods
(b) Title in goods to be passed in future, as per existing agreement
(c) Repairing of Mobile Phone
(d) All of the above
Answer:
(b) Title in goods to be passed in future, as per existing agreement

Question 24B.
Which of the following is not a supply of services
(a) Renting of immovable property
(b) Payment of Non-Compete Fee by an ex-employee to his previous employer
(c) Repairing of Laptop
(d) Transfer of title in goods at a future date
Answer:
(d) Transfer of title in goods at a future date

Question 25.
Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of a completion certificate, where required, by a competent authority or after its first occupation, whichever is earlier as per section 7 of the CGST Act, 2017 read with item specified in schedule is known as …………….
(a) Goods
(b) Both Goods and Services
(c) Services
(d) Contract work
Answer:
(c) Services

Question 26.
Import of services by persons from a related person located outside India without consideration for personal purposes is
(a) Supply of services as per Schedule I
(b) Supply of services as per Schedule n
(c) Not a supply, as not covered under Schedule I
(d) None of the above
Answer:
(c) Not a supply, as not covered under Schedule I

Question 26A.
Mr. Z, a supplier registered in Hyderabad (Telangana), procures goods from China and directly supplies the same to a customer in US. With reference to the provisions of GST law, examine whether the said activity of supply of goods by Mr. Z to customer in US is taxable under GST. If yes, determine the place of supply of the same.
(a) India
(b) China
(c) USA
(d) It is covered in Schedule III
Answer:
(d) It is covered in Schedule III

Question 26B.
The Schedule III of CGST Act, 2017 specifies the transactions and activities which shall be neither treated as supply neither of goods nor as services. Which of the following will not be included in this category
(a) Salary paid to director under employment agreement
(b) Sitting fees to independent directors for attending AGMs
(c) Payment to employee for providing broking services to the employer for purchase of commercial property. Such services do not form part of the employment contract entered into by the employer with the employee.
(d) Both (b) and (c)
Answer:
(d) Both (b) and (c)

Question 27.
If some documentation fees or broking charges are charged in relation to transactions in securities:
(a) It would not be consideration
(b) It would be consideration for goods
(c) It would be consideration for provision of service but not chargeable to GST
(d) It would be consideration for provision of service and chargeable to GST
Answer:
(d) It would be consideration for provision of service and chargeable to GST

Question 28.
A service shall be a continuous supply of service agreed to he provided continuously or on recurrent basis under a contract when the period of service exceeds :
(a) 1 month
(b) 3 months
(c) 6 months
(d) One year
Answer:
(b) 3 months

Question 29.
Mr. Amit purchased goods from China and sold it to Mr. Robert of London without bringing the goods in India. Considering CGST (Amendment) Act, 2018, this trans-action is
(a) Supply of goods as per Schedule I
(b) Supply of services as per Schedule II
(c) Supply of goods as per section 7(1)
(d) Neither supply of goods nor supply of services as per Schedule III
Answer:
(d) Neither supply of goods nor supply of services as per Schedule III

Question 30.
When employer gifts goods to his employees, it will not be considered as taxable supply for the purpose of GST if the value of supply to an employee does not exceed:
(a) ₹ 5,000
(b) ₹ 20,000
(c) ₹ 50,000
(d) ₹ 1,00,000
Answer:
(c) ₹ 50,000

Question 30A.
As per section 2(47) of CGST Act, 2017, an exempt supply includes-
(a) Supplies wholly exempt from tax under section 11 of the CGST Act or under section 6 of IGST Act
(b) Supply of goods or services or both which attracts Nil rate of tax
(c) Non-taxable supply
(d) All of the above
Answer:
(d) All of the above

Question 30B.
Considering the definition of exempt goods given under section 2(47) of CGST Act, 2017, which of the following is treated as exempt supply
(a) Supply of electricity
(b) Sale of liquor
(c) Supply of health care services
(d) All of the above
Answer:
(d) All of the above

Question 31.
Section 8 of CGST Act contains the provisions regarding:
(a) Scope of supply
(b) Tax liability on Composite Supply
(c) Tax liability on Mixed Supply
(d) Tax liability on Composite Supply and Mixed Supply
Answer:
(d) Tax liability on Composite Supply and Mixed Supply

Question 32.
In case of Mixed Supply, the supply is treated as supply of that particular supply which
(a) Is Principal Supply
(b) Attracts lowest rate of tax
(c) Attracts highest rate of tax
(d) None of the above
Answer:
(c) Attracts highest rate of tax

Question 33.
A hotel provides 5 days-4 nights package wherein the facility of breakfast and dinner is provided along with the room accommodation. This supply is ………………….
(a) Composite Supply
(b) Mixed Supply
(c) Neither Composite nor Mixed Supply
(d) Both Composite and Mixed Supply
Answer:
(a) Composite Supply

Question 34.
Which of the following represents composite supply
(a) Doctor’s service with medicines
(b) Package with fruits and chocolates
(c) Coaching centre with monthly excursions on trekking
(d) Supply of computer printer and laptop
Answer:
(a) Doctor’s service with medicines

Question 35.
A Service would be called as “continuous supply of service”, if the service under a contract is provided continuously or on recurrent basis exceeding:
(a) One year
(b) 6 months
(c) 3 months
(d) 1 month
Answer:
(c) 3 months

Question 36.
Goods held/used for business are put to private use or are made available to any person for use for any purpose other than business, by/under directions of persons carrying on the business, whether or not for consideration. For the purpose of taxability as per Schedule II of CGST Act, 2017 shall be treated as supply of:
(a) Goods
(b) Services
(c) Both goods and services
(d) Job work
Answer:
(b) Services

Question 37.
Permanent transfer or disposal of goods forming part of business asset by or under the direction of the person carrying on the business whether or not for consideration as well as transfer of title in goods under an agreement where property in goods passes at a future date on payment of full consideration as per Schedule II of the CGST Act, 2017 to be treated as
(a) Supply of Goods
(b) Supply of Services
(c) Deemed supply
(d) Both, supply and deemed supply
Answer:
(a) Supply of Goods

Question 38.
GST in India is levied on the basis of:
(a) Consumption Principle
(b) Set off against that payable
(c) Destination based principle
(d) Both consumption and destination based principle
Answer:
(c) Destination based principle

Question 39.
Schedule III of CGST Act, 2017 includes ………..
(a) All actionable claims
(b) All actionable claims other than lottery, betting and gambling
(c) Lottery, betting and gambling
(d) Transactions in money
Answer:
(c) Lottery, betting and gambling

Question 40.
In relation to services by an employee to employer, the Schedule III of CGST Act, 2017 includes:
(a) All services by employee
(b) Service other than in course of employment
(c) Services in the course of employment
(d) None of the above
Answer:
(c) Services in the course of employment

Question 41.
Which of the following incomes/activities is liable for GST
(a) Salary
(b) Salary and allowances of MP’s
(c) Services by court.
(d) Sales of jewellery
Answer:
(d) Sales of jewellery

Question 42.
Mr. A of Delhi supplied goods to Mr. B of Chandigarh (Union-Territory). Which law will govern this transaction
(a) CGST
(b) SGST
(c) UTGST
(d) IGST
Answer:
(d) IGST

Question 43.
The Union territory Goods & Services Act, 2017 is applicable on:
(a) Inter-State supply of goods or services or both by union territories
(b) Intra-State supply of goods or services or both by union territories
(c) Both (a) and (b)
(d) None of the above
Answer:
(b) Intra-State supply of goods or services or both by union territories

Question 44.
In which of the following case, IGST shall be levied
(a) Supply of goods by Golu of Delhi to Mr. Vinay of Delhi
(b) Raman of Mumbai provided services to Bhalla of Pune
(c) Mr. Mena of Jaipur supplied goods to Mr. Sohrab of Udaipur.
(d) Akash of Agra supplied goods to Mohan of Raipur (Chhattisgarh)
Answer:
(d) Akash of Agra supplied goods to Mohan of Raipur (Chhattisgarh)

Question 45.
What is the charging section under CGST Act, 2017
(a) Section 7
(b) Section 8
(c) Section 9
(d) Section 11
Answer:
(c) Section 9

Question 46.
As per section 9(1) of CGST Act, 2017, Central Tax on intra-State supplies shall be levied on the transaction value. This value is determined as per of CGST Act, 2017.
(a) Section 9
(b) Section 12
(c) Section 15
(d) Section 18
Answer:
(c) Section 15

Question 47.
Under section 9(1) of the CGST Act, who is liable to pay GST
(a) Supplier
(b) Recipient
(c) Electronic Commerce Operator (ECO)
(d) Any of the above
Answer:
(a) Supplier

Question 48.
The payment of tax by electronic operator who does not have physical presence in taxable territory in India be made by …………..
(a) ECO himself
(b) His appointed representative in India
(c) The person who receives supply
(d) Either (a) or (b)
Answer:
(b) His appointed representative in India

Question 49.
If the rate of GST on intra-State supply of goods is 18%, then it is :
(a) Retained by Central Government only
(b) Retained by respective State Government/Union Territory only
(c) Split into CGST and SGST/UTGST equally
(d) None of the above
Answer:
(c) Split into CGST and SGST/UTGST equally

Question 50.
A registered person of Delhi is buying and selling goods only in Puducherry. The applicable law for GST, in this case, will be:
(a) SGST&CGST
(b) UTGST&CGST
(c) SGST&UTGST
(d) IGST
Answer:
(a) SGST&CGST

Question 51.
Which of the following taxes are levied on intra-State supplies
(a) CGST & IGST
(b) CGST & SGST/UTGST
(c) SGST&UTGST
(d) IGST
Answer:
(b) CGST & SGST/UTGST

Question 52.
The maximum rate of IGST as per section 5(1) of IGST Act, 2017 is:
(a) 2096
(b) 3096
(c) 3596
(d) 4096
Answer:
(d) 4096

Question 53.
On supply of which of the following items, GST shall be levied with effect from such date as may be notified by the Government on the recommendation of the Council:
(a) Alcoholic liquor for human consumption
(b) Natural Gas
(c) Both (a) & (b)
(d) None of the above
Answer:
(b) Natural Gas

Question 54.
IGST is levied on
(a) Inter-State supplies
(b) Intra-State supplies
(c) Both (a) and (b)
(d) None of the above
Answer:
(a) Inter-State supplies

Question 55.
What is the maximum rate prescribed under UTGST Act, 2017
(a) 1896
(b) 2096
(c) 3096
(d) 4096
Answer:
(b) 2096

Question 56.
Section 8 deals with taxability of Composite and Mixed Supplies. What would be the tax rate in case of Mixed Supply
(a) Tax rate as applicable on supply attracting the lowest rate of tax
(b) Tax rate as applicable on supply attracting the highest rate of tax
(c) Flat rate @ 1896
(d) None of the above
Answer:
(b) Tax rate as applicable on supply attracting the highest rate of tax

Question 57.
Schedule I of CGST Act, 2017deals with
(a) Supplies made with consideration
(b) Supplies made without consideration
(c) Both (a) and (b)
(d) None of the above
Answer:
(b) Supplies made without consideration

Question 58.
As regards section 9(5) of the CGST Act, 2017, Maxi-Cab refers to any motor vehicle constructed or adapted to carry Excluding the driver, for hire or reward.
(a) Not more than 6 passengers
(b) More than 6 passengers but not more than 12 passengers
(c) More than 12 passengers
(d) Any number of passengers
Answer:
(b) More than 6 passengers but not more than 12 passengers

Question 59.
If the Electronic Commerce Operator (ECO) is located in taxable territory, then as per section 9(5) of CGST Act, 2017 is liable to pay GST.
(a) ECO
(b) Person representing ECO
(c) Person appointed by ECO
(d) None of the above
Answer:
(a) ECO

Question 59A.
As per Government notification the services by way of transportation of passengers by a shall be considered under section 9(5).
(a) Radio Taxi
(b) Motor Cab and maxi cab
(c) Motor Cycle
(d) All of the above
Answer:
(d) All of the above

Question 60.
What is/are the factor(s) necessary for distinction between Composite Supply and Mixed Supply
(a) Existence of Principal Supply
(b) Nature of bundling (Natural or Artificial)
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Question 61.
Section 9(5) is related with ECO. In this regard, the Government is empowered to notify:
(a) Specific categories of goods
(b) Specific categories of services
(c) Specific categories of goods and services
(d) Exempted supplies
Answer:
(b) Specific categories of services

Question 62.
Who collects Union Territory Tax ………….
(a) Central Government
(b) Respective Union Territory
(c) Respective State Government
(d) GST Council
Answer:
(a) Central Government

Question 63.
What would be the tax rate applicable in case of Composite supply
(a) Tax rates applicable on Principal Supply
(b) Tax rates applicable on Supply attracting lowest rate of supply
(c) Tax rates applicable on Supply attracting highest rate of supply
(d) Tax @ 28%
Answer:
(a) Tax rates applicable on Principal Supply

Question 64.
There are some products which have temporarily been kept out of GST and GST Council shall decide the date from which these shall be included in GST. These products are:
(a) Petroleum Crude
(b) High Speed Diesel & Motor Spirit
(c) Natural Gas and ATF
(d) All of the above
Answer:
(d) All of the above

Question 65.
In case of Intra-State supply of goods/ services, which Act is applied to collect GST
(a) CGST
(b) SGST
(c) IGST
(d) UTGST
Answer:
(c) IGST

Question 66.
The supply is treated as Inter-State supply, where the location of supplier and place of supply are in:
(a) Two different States
(b) Two different Union-Territories
(c) A State and a Union-Territory
(d) Any of the above
Answer:
(d) Any of the above

Question 67.
Mr. Gupta of Delhi (Janakpuri) supplied goods to Mr. Bansal of Delhi (Vivek-Vihar). Identify the type of GST payable.
(a) IGST
(b) CGST & SGST
(c) CGST & UTGST
(d) IGST & UTGST
Answer:
(b) CGST & SGST

Question 68.
The Union Territory GST Act is applicable on Union Territories. Which one of the following is a Union Territory but UTGST Act is not applicable
(a) Chandigarh
(b) Andaman & Nicobar Islands
(c) Puducherry
(d) Lakshadweep
Answer:
(c) Puducherry

Question 69.
The higher eligibility turnover limit X 1.5 Crore, under Composition Scheme, is not applicable to
(a) Uttarakhand
(b) Assam
(c) Himachal Pradesh
(d) Jammu and Kashmir
Answer:
(a) Uttarakhand

Question 69A.
Mr. Kamal is interested to opt for composition scheme. Which of the following goods can be supplied by Kamal under Composition scheme
(a) Milk
(b) Aerated water
(c) Pan masala
(d) Tobacco
Answer:
(a) Milk

Question 69B.
Mr. Vikas, a registered supplier of Himachal Pradesh, wants to opt for composition levy. The turnover limit for composition levy is …………….
(a) ₹ 50 lakh
(b) ₹ 75 lakh
(c) ₹ 1.5 crore
(d) none of the above
Answer:
(c) ₹ 1.5 crore

Question 70.
Which of the categories of registered person who are being eligible for the composition scheme under the CG ST Act, 2017:
(a) Supplier of the Restaurant Services
(b) Manufacturer of notified goods
(c) Non-resident taxable persons
(d) Casual taxable person
Answer:
(a) Supplier of the Restaurant Services

Question 71.
Sumit has opted for composition scheme in the Financial Year 2019-20. His aggregate turnover in Financial Year 2018- 19 is ₹ 90 Lakh. In Financial Year 2019- 20, Mr. Sumit can supply services
(other than restaurant services) up to a value
(a) ₹ 5,00,000
(b) ₹ 9,00,000
(c) ₹ 50,00,000 .
(d) Nil
Answer:
(b) ₹ 9,00,000

Question 72.
As per the amendment made in section 10 through CGST (Amendment) Act, 2018, a composition dealer can provide supply of services (other than restaurant services) not exceeding:
I. 10% of turnover in preceding financial year
II. 10% of taxable supplies in preceding financial year
III. ₹ 5,00,000
IV. ₹ 10,00,000
(a) I or III, whichever is Lower
(b) I or III, whichever is Higher
(c) II or IV, whichever is Lower
(d) II or IV, whichever is Higher
Answer:
(b) I or III, whichever is Higher

Question 73.
With effect from 1-4-2019, a registered person, whose aggregate turnover in the preceding financial year did not exceed ……….. is eligible to opt for composition scheme.
(a) ₹ 75,00,000
(b) ₹ 1 Crore
(c) ₹ 1.5 Crore
(d) ₹ 2 Crore
Answer:
(c) ₹ 1.5 Crore

Question 74.
With effect from 1-4-2019, there is a change in the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for States other than special category States. What is the new threshold limit.
(a) ₹ 50 Lakhs
(b) ₹ 75 Lakh
(c) ₹ 1 Crore
(d) ₹ 1.5 Crore
Answer:
(d) ₹ 1.5 Crore

Question 75.
The composition levy payable by a registered person whose aggregate turnover in the preceding Financial Year did not exceed One Crore and fifty lakh rupees making supply by way of or as part of any services or in any other manner whatsoever of goods being food or any other article for human consumption or any drink (other than Alcoholic Liquor for human consumption) where such supply or service is for cash or defer payment or other valuable consideration shall be at of the turnover.
(a) 0.5%
(b) 1%
(c) 2.5%
(d) 5%
Answer:
(d) 5%

Question 76.
The supplier registered under Composition Levy Scheme cannot
(a) Claim ITC
(b) Collect tax on supply
(c) Raise tax invoice
(d) All of the above
Answer:
(d) All of the above

Question 77.
The following categories of registered persons are not being eligible for the Composition Scheme under the CGST Act, 2017:
(i) Supplier of the Restaurant Services
(ii) Manufacturer of notified goods
(iii) Non-resident taxable persons
(iv) Casual taxable person
(a) (ii) and (iv)
(b) (ii), (iii) and (iv)
(c) (ii) and (iv)
(d) (i), (iii) and (iv)
Answer:
(d) (i), (iii) and (iv)

Question 78.
Which Form has been specified for intimation to pay tax under section 10 (for the persons registered under CGST Act, 2017)?
(a) GST CMP-01
(b) GST CMP-02
(c) GST CMP-03
(d) GST CMP-04
Answer:
(b) GST CMP-02

Question 79.
What is the due date for GST CMP-03 regarding intimation of details of stock and inward supplies from unregistered person
(a) Within 7 days of exercise of option
(b) Within 9 days of exercise of option
(c) Within 1 month of exercise of option
(d) None of the above
Answer:
(b) Within 9 days of exercise of option

Question 80.
A registered supplier under composition scheme levy can withdraw at any time and be required to file the Form for withdrawal from composition levy in :
(a) GST CMP-03
(b) GST CMP-04
(c) GST MIS-01
(d) GST PCT-02
Answer:
(b) GST CMP-04

Question 81.
Which of the following statement is TRUE as per CGST Rules, 2017, regarding Composition Rules
(a) GST CMP-01 is filed for intimation to pay tax under section 10 for persons already registered under GST laws
(b) GST CMP-02 is applicable to persons registered under the existing law migrating on the appointed day
(c) GST CMP-03 is for intimation of details of stock and inward supplies from unregistered person
(d) GST CMP-045 is for show cause notice on contravention of rules or Act by proper officer
Answer:
(c) GST CMP-03 is for intimation of details of stock and inward supplies from unregistered person

Question 82.
In the case of a manufacturer who opts for composition scheme the rate of GST (including CGST and SGST) is
(a) 1%
(b) 2%
(c) 3%
(d) 5%
Answer:
(a) 1%

Question 83.
Mr. Jethalal was registered taxpayer (in Delhi) under composition scheme during 2018-19. His aggregate turnover in financial year 2018-19 was ₹ 40,00,000. In view of Second Proviso inserted to section 10(1) w.e.f. 1-4-2019, the taxpayer is willing to supply services in Financial Year 2019-20. What is the maximum value of services (other than restaurant) which may be provided in such a manner so that he may continue to remain in composition scheme
(a) ₹ 4,00,000
(b) ₹ 5,00,000
(c) ₹ 6,00,000
(d) None of the above
Answer:
(b) ₹ 5,00,000

Question 84.
Which among the following is eligible for availing composition scheme under GST
(a) Supply through e-Commerce operators
(b) Engaged in inter-State supply of goods
(c) Goods not taxable under CGST/ SGST/UTGST/IGST
(d) Restaurants
Answer:
(d) Restaurants

Question 85.
Which of the following goods cannot be manufactured by a composition dealer
(a) Ice Cream
(b) Pan Masala
(c) Tobacco & manufactured tobacco substitutes
(d) All of the above
Answer:
(d) All of the above

Question 86.
Out of the following, who is NOT eligible for the composition scheme under the CGST Act, 2017
(a) Casual Taxable Person
(b) Non-Resident Taxable Person
(c) Person engaged in Inter-State out-ward supplies of goods
(d) None of the above
Answer:
(d) None of the above

Question 87.
Abhijit Sen is engaged in running a textile showroom at Gangtok (Sikkim). In order to avail composition scheme under GST law, his “aggregate turnover” in the preceding financial year should not have exceeded:
(a) ₹ 10 Lakhs
(b) ₹ 20 Lakhs
(c) ₹ 50 Lakhs
(d) ₹ 1.5 Crore
Answer:
(d) ₹ 1.5 Crore

Question 88.
Which of the following statement is TRUE
(a) Composition scheme is compulsory
(b) The taxable person under composition scheme can collect tax from recipients at nominal rate
(c) Composition dealer may effect inter-State supplies
(d) Composition dealer issues Bill of Supply rather than Tax Invoice
Answer:
(d) Composition dealer issues Bill of Supply rather than Tax Invoice

Question 89.
For the purpose of eligibility for composition scheme, the following particulars are given: The aggregate turnover is and composition scheme is ………………..

(i)	Intra-State supply of NIL rated goods	46,00,000
(ii)	Intra- State supplies made under forward charge	95,00,000
(iii)	Intra-State supplies of exempted goods	9,00,000
(iv)	Inward supplies of goods on which tax is payable under RCM	4,00,000

(a) ₹ 1.5 Crore; available
(b) ₹ 1.5 Crore; Not available
(c) ₹ 1.54 Crore; Not available
(d) ₹ 1.54 Crore; Not available
Answer:
(a) ₹ 1.5 Crore; available

Question 90.
Mr. S, a manufacturer of medicines, whose turnover for financial year 2018-19 was of₹ 1.2 Crore opted to pay under GST as per composition scheme from 1st April, 2019. His turnover crosses ₹ 1.5 Crore on 30th November, 2019. Will he be allowed to pay tax under composition scheme for the remainder of year i.e. from 1st December, 2019 to 31st March, 2020
(a) Yes, he can avail the benefit till 31st March, 2020
(b) No, the option availed shall lapse from the day on which his aggregate turnover during the financial year 2019-20 exceeds ₹ 1.5 Crore
(c) Yes, the option can be availed up to completion of financial year ie. till 30th September, 2019
(d) None of the above
Answer:
(b) No, the option availed shall lapse from the day on which his aggregate turnover during the financial year 2019-20 exceeds ₹ 1.5 Crore

Question 91.
Composition Scheme is available to
(a) Supplier of goods
(b) Restaurant service
(c) Supplier of service not exceeding 10% of service not exceeding 10% of turnover in preceding financial year or ₹ 5 Lakh, whichever is higher
(d) All of the above
Answer:
(d) All of the above

Question 92.
Mr. Murari is a manufacturer in Lucknow and has opted for composition scheme of taxation under GST. Determine the rate of GST payable by him under composition scheme.
(a) 0.5% CGST & 0.5% SGST of taxable turnover
(b) 0.5% CGST& 0.5% SGST of Total turnover including exempted supplies.
(c) 0.5% CGST& 0.5% SGST of exempted supplies only.
(d) 1% IGST
Answer:
(b) 0.5% CGST& 0.5% SGST of Total turnover including exempted supplies.

Question 93.
Which section of CGST Act, 2017 deals with Composition Levy
(a) Section 9
(b) Section 10
(c) Section 11
(d) Section 12
Answer:
(b) Section 10

Question 94.
With effect from 1-4-2019, the eligibility turnover limit for Composition Scheme is enhanced from ₹ 1 Crore to
(a) ₹ 1.5 Crore
(b) ₹ 2 Crore
(c) ₹ 5 Crore
(d) None of the above
Answer:
(c) ₹ 5 Crore

Question 95.
In which of the following Special Category States, the enhanced limit of ₹ 1.5 Crore is applicable, under Composition Levy
(a) Arunachal Pradesh
(b) Tripura
(c) Assam
(d) Mizoram
Answer:
(c) Assam

Question 96.
The supply of lottery is covered under reverse charge mechanism vide section 9(3), if the supplier of goods is & recipient is
I. State Government; Union Territory or any Local Authority
II. Lottery Distributor or selling agent
III. Registered person
IV. Manufacturer
(a) I; II
(b) I; HI
(c) II; I
(d) I; IV
Answer:
(a) I; II

Question 96A.
Which of the following sections describe the provisions relating to RCM
(a) Section 5(4) of IGST Act
(b) Section 9(3) of CGST Act
(c) Section 9(4) of CGST Act
(d) All of the above
Answer:
(d) All of the above

Question 97.
The liability to pay GST would depend on the mechanism the transaction aligns to the supplier who is registered with GST, issues a tax invoice, collects the GST and pays it to the Government. This mechanism under GST is known as
(a) Forward charge mechanism
(b) Reverse charge mechanism
(c) Composition levy mechanism
(d) Taxable supply mechanism
Answer:
(a) Forward charge mechanism

Question 97A.
Which of the following services does not fall under reverse charge provisions as contained under section 9(3) of the CGST Act
(a) Services supplied by the arbitral tribunal to business entity
(b) Sponsorship provided to any partnership firm
(c) Sponsorship provided to anybody corporate
(d) None of the above
Answer:
(d) None of the above

Question 98.
Reverse charge under section 9(3) of the CGST Act, 2017 is applicable:
(a) Only on Notified Services
(b) Only on Notified Goods
(c) On Notified Goods & Services
(d) None of the above
Answer:

Question 98A.
In which of the following case, GST is payable by recipient of services
(a) Services supplied by a recovering agent to ICICI Bank
(b) Insurance Agent services
(c) Services provided by way of sponsorship to Reliance Industries Ltd.
(d) All of the above
Answer:
(c) Services provided by way of sponsorship to Reliance Industries Ltd.

Question 99.
Which of the following services, subject to respective conditions, are covered under section 9(3) i.e. reverse charge mechanism
I. Goods Transport Agency
II. Sponsorship Services
III. Services by Director
IV. Insurance Agent Services
V. Recovery Agent Services
VI. Services by business facilitator to a banking company
(a) I & II
(b) I,II &III
(c) I,II,III & IV
(d) I to VI
Answer:
(d) I to VI

Question 99A.
The following information is provided:
(i) Entity: Raman Garments Limited
(ii) Turnover in preceding year period: ₹ 30 Lakhs
(iii) ITC available for the tax period:
₹ 1,12,000
(iv) Turnover in tax period = Nil
Legal services taken from advocate in tax period who has charged t 9,00,0000 as professional legal fees. Normal rate of GST on such fees is 18%. What is the amount of GST payable by Raman Garments in given tax period, considering exemption and RCM provisions
(a) Exempt as per Entry No. 45
(b) ₹ 1,62,000 through Cash ledger
(c) ₹ 50,000 through Cash ledger and ₹ 1,12,000 through Electronic Credit ledger
(d) RCM is not applicable.
Answer:
(d) RCM is not applicable.

Question 100.
In case of GTA services provided to an individual not registered under GST and not a business entity, liability to pay GST is on ………
(a) Supplier
(b) Recipient
(c) Both (a) & (b)
(d) No one as it is exempt supply
Answer:
(d) No one as it is an exempt supply

Question 101.
“Matrix Debt Recovery” has provided services to ICICI Bank as recovery agent. These services are liable for GST’in the hands of:
(a) ICICI bank under Forward Charge Mechanism
(b) ICICI bank under Reverse Charge Mechanism
(c) Matrix Debt Recovery under Forward Charge Mechanism
(d) Matrix Debt Recovery under Reverse Charge Mechanism
Answer:
(a) ICICI bank under Forward Charge Mechanism

Question 102.
Kapil and Jaithmalani are partners in a firm of advocates. The firm has provided legal professional services to the following:
I. An advocate of Delhi High Court
II. A firm of Five advocates
III. ABC Limited, a business entity whose turnover of the preceding year is more than ₹ 20 Lakhs
IV. Rakesh Kumar, an individual
Out of above, which service(s) is/are not exempted and Reverse Charge Mechanism is applicable.
(a) I
(b) II
(c) III
(d) IV
Answer:
(c) III

Question 103.
Services provided by director of a company or body corporate are covered under Reverse Charge Mechanism if these are provided to
(a) Private limited company
(b) Public limited company
(c) Any company/body corporate located in ‘Taxable Territory’
(d) Any company/body corporate located in ‘Any Territory’
Answer:
(c) Any company/body corporate located in ‘Taxable Territory’

Question 104.
Kalyan Limited, a trader has aggregate turnover of outward supply up to 12th July, 2019 is ₹ 7,00,000. The company is under threshold limit, hence not registered under GST. Kalyan has taken sponsorship services from Mr. Rahul on 21 st July, 2019. Who is liable to pay GST on the amount of sponsorship services
(a) Kalyan Limited under reverse charge mechanism
(b) Mr. Rahul under forward charge mechanism
(c) Both Kalyan and Rahul
(d) It is exempt
Answer:
(a) Kalyan Limited under reverse charge mechanism

Question 104A.
Mr. Anubhav is an insurance agent of LIC. He has earned ₹ 3,80,000 as insurance commission during December 2020. The amounts of GST, TDS (under 194D of Income-tax Act) and the net Commission payable to agent are ……………….
(a) ₹ 68,400; ₹ 19,000 and ₹ 3,61,000
(b) ₹ 68,400; ₹ 38,000 and ₹ 3,42,000
(c) ₹ 45,600; ₹ 19,000 and ₹ 3,61,000
(d) ₹ 45,600; ₹ 38,000 and ₹ 3,42,000
Answer:
(a) ₹ 68,400; ₹ 19,000 and ₹ 3,61,000

Question 104B.
In which of the following cases, the RCM provision is optional subject to fulfilment of certain conditions
(a) Services by director
(b) Recovery agent services
(c) Services by an author by way of transfer of copyright
(d) Services provided by business facilitator to a banking company
Answer:
(c) Services by an author by way of transfer of copyright

Question 105.
Indusind Bank located in Delhi, appointed Mr. Bahubali as a recovery agent for collecting outstanding balance amount of loan from a customer, Ballabhdev. Bahubali provided service to the bank for which he charged ₹ 20,000 as fee. Who is liable to pay GST on ₹ 20,000
(a) Bahubali
(b) Ballabhdev
(c) Indusind bank
(d) No one as it is exempt
Answer:
(c) Indusind bank

Question 105A.
In case of Goods Transport Agency (GTA) services, tax is to be paid under forward charge if:
(a) Services supplied to body corporate established under law (GST is payable @ 5%)
(b) Services supplied to Casual Taxable Person located in taxable territory (GST is payable @ 5%)
(c) Services supplied to cooperative society established under law (GST is payable @5%)
(d) Services supplied to factory registered under Factories Act (GST is payable @ 12%)
Answer:
(d) Services supplied to factory registered under Factories Act (GST is payable @ 12%)

Question 106.
Tyagi Limited availed services of “Jaipur Golden”, (GTA) for transportation of goods by road from warehouse (Delhi) to its factory (Delhi) and paid freight of ₹ 2,40,000. Which of the following statement is true
(a) If GTA pays tax @ 12% with ITC, then GTA is liable to pay tax
(b) If GTA pays tax @12% with ITC, then Tyagi Limited is liable to pay tax
(c) If GTA pays tax @5% without benefit of ITC, then GTA is liable to pay tax
(d) Irrespective of tax rate availed (ie. with or without ITC)
Answer:
(a) If GTA pays tax @ 12% with ITC, then GTA is liable to pay tax

Question 106 A.
Golden Transport Limited is a Goods Transport Agency GTA who has opted for GST@ 12% in respect of transport of goods by road. The GTA has provided the services to Mr. Manoj. Who is liable to pay GST
(a) GTA (Service Provider)
(b) Manoj (Recipient)
(c) Both GTA and Manoj, equally
(d) GTA (in case of inter-State) & Recipient (in case of intra-State)
Answer:
(b) Manoj (Recipient)

Question 107.
The services have been provided by the director of a company, in the capacity of employee. Which of the following statement is true
(a) RCM is applicable under section 9(3)
(b) RCM is applicable under section 9(4)
(c) Not a supply as per Schedule I
(d) Not a supply as per Schedule III
Answer:
(c) Not a supply as per Schedule I

Question 107A.
After amendment w.e.f. 1 -10-2019, in which of the following services, the supplier may be liable to pay GST, even though it has been included in RCM
(a) Services by Director
(b) Services by Author
(c) Services by Music Composer
(d) Services by Artist
Answer:
(b) Services by Author

Question 108.
The CGST (Amendment) Act, 2018 has amended section 9(4), which is effective from 1 -2-2019. As per amended provisions of section 9(4), the tax under reverse charge mechanism is payable:
I. By registered persons
II. By notified class of registered persons
III. By notified categories of intra-State supplies of goods and/or services
IV. On all intra-State supplies of goods and/or services
V. Received by such registered persons from any unregistered supplier
VI. Received by unregistered persons from registered supplier
(a) I, III and V
(b) I, IV and VI
(c) II, III and V
(d) II, IV and VI
Answer:
(a) I, III and V

Question 109.
On 4th September, 2019, A. R. Rehman, a famous music composer, received ₹ 4 Crore as consideration from T Series Limited for sale of copyright of his original music album “LARA”. Who is liable to pay GST
(a) A. R. Rehman under forward charge mechanism
(b) A. R. Rehman under reverse charge mechanism
(c) T Series Limited under forward charge mechanism
(d) T Series Limited under reverse charge mechanism
Answer:
(d) T Series Limited under reverse charge mechanism

Question 110.
After CGST (Amendment) Act, 2018, the section 9(4) relating to RCM is applicable on
(a) Every supply of goods by unregistered supplier to registered recipient
(b) Every supply of services by unregistered supplier to registered recipient
(c) Every supply of goods by registered supplier to unregistered recipient
(d) Notified categories of intra-State supplies of goods/services by notified registered persons from any unregistered supplier
Answer:
(d) Notified categories of intra-State supplies of goods/services by notified registered persons from any unregistered supplier

Question 111.
When agriculturist supplies tobacco leaves to a factory, registered under GST, the liability to pay GST is on:
(a) Tobacco leaves seller
(b) The buyer under reverse charge
(c) The agriculturist
(d) Consumer of tobacco leaves
Answer:
(b) The buyer under reverse charge

Question 112.
Section 10 of the CGST Act, 2017 contains provisions related to
(a) Forward Charge Mechanism
(b) Reverse Charge Mechanism
(c) Composition Levy
(d) Time of supply of goods
Answer:
(c) Composition Levy

Question 112A.
What can be supplied under RCM
(a) Goods only
(b) Services only
(c) Both goods and services
(d) None of these
Answer:
(c) Both goods and services

Question 112B.
RCM is applicable in respect of
(a) Intra-State supplies only
(b) Inter-State supplies only
(c) Both (a) & (b)
(d) Cross border supplies only
Answer:
(c) Both (a) & (b)

Question 112C.
When can a claim for ITC be made under Reverse Charge
(a) After payment of tax liability
(b) After issue of invoice
(c) Earliest of (a) & (b)
(d) Whichever is later
Answer:
(a) After payment of tax liability

Question 113.
The provisions relating to Reverse Charge Mechanism are given in……… of CGST Act, 2017.
(a) Section 9(1) & 9(2)
(b) Section 9(2) & 9(3)
(c) Section 9(3) & 9(4)
(d) Section 9(4) & 9(5)
Answer:
(c) Section 9(3) & 9(4)

Question 114.
ABC Limited has provided technical services for ₹ 20,000 to XYZ Limited. The service is taxable under GST laws @ 18%. The liability to pay GST lies with:
(a) ABC Limited, in case of forward charge mechanism
(b) XYZ Limited in case of reverse charge mechanism
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

Question 115.
Which of the following goods have been notified by the Government under reverse charge mechanism under section 9(3) ……….
(a) Shelled cashew nuts
(b) Peeled cashew nuts
(c) Silk yarn
(d) Fabricated cotton
Answer:
(c) Silk yarn

Question 116.
Which one of the following goods is covered under reverse charge mechanism under section 9(3) if the supplier of goods is Agriculturist.
(a) Cashew nuts (Not shelled or peeled)
(b) Bidi wrapper leaves (Tendu)
(c) Tobacco leaves
(d) Silk yarn
Answer:
(d) Silk yarn

Question 116A.
Which of the following return is filed by a registered supplier of goods or services for furnishing details of outward supplies which are taxable under RCM
(a) GSTR-1
(b) GSTR-2
(c) GSTR-3
(d) GSTR-4
Answer:
(a) GSTR-1

Question 117.
The Government has exempted the payment of tax by any taxable person on supply of footwear costing less than ₹ 100. It is ………..
(a) Absolute Exemption
(b) Conditional Exemption
(c) Special Exemption
(d) Ancillary Exemption
Answer:
(b) Conditional Exemption

Question 118.
In relation to section 11(2) of CGST Act, 2017, “E/O” implies ……………..
(a) Exemption Ordinance
(b) Exemption Order
(c) Exemption Opinion
(d) None of the above
Answer:
(b) Exemption Order

Question 119.
The general exemption under section 11(1) requires:
(a) Public interest or circumstances of exemption
(b) Public interest or circumstances of exceptional nature
(c) Public interest and circumstances of exceptional nature
(d) None of the above
Answer:
(c) Public interest and circumstances of exceptional nature

Question 120.
The general exemption may be ………….
(a) Full Exemption
(b) Partial exemption
(c) Both (a) & (b)
(d) Either (a) or (b)
Answer:
(d) Either (a) or (b)

Question 121.
The special exemption under section 11(2) may be ………….
(a) Full Exemption
(b) Partial exemption
(c) Both (a) & (b)
(d) Either (a) or (b)
Answer:
(a) Full Exemption

Question 122.
Which of the following exemption under section 11 is granted by special order
(a) General Exemption
(b) Special exemption
(c) Any of (a) and (b)
(d) None of the above
Answer:
(b) Special exemption

Question 122A.
Which of the following activities are exempt from GST
(a) Religious pilgrimage organised by Ajmer Charitable Trust.
(b) Milling of paddy into rice.
(c) Loading, packing and warehousing of jaggery and pulses.
(d) None of the above
Answer:
(d) None of the above

Question 122B.
As per Entry No. 17, service of transportation of passengers by is exempt from GST.
(a) Railway (Other than first class and AC)
(b) Metro, monorail and tramway
(c) Inland waterways
(d) All of the above
Answer:
(d) All of the above

Question 122C.
Which of the following form of classical art or folk is included under exemption in Entry 78
(a) Music
(b) Dance
(c) Theater
(d) All of the above
Answer:
(d) All of the above

Question 123.
The exempt supply has been defined as supply of any goods/services/both, which attract a Nil rate of tax, or which may be wholly exempt from tax and therefore, includes non-taxable supplies. Which of the following is covered as an exempt supply under GST
(a) Branded Aata/Basin/Maida
(b) Services by IRDA, SEBI, RBI, EPFO
(c) Services by Post Office
(d) Services by the Government for transportation of passenger
Answer:
(b) Services by IRDA, SEBI, RBI, EPFO

Question 124.
Which of the following goods is not exempt from GST
(a) Fish seed
(b) Ice Cream
(c) Pappad
(d) Plastic Bangles
Answer:
(b) Ice Cream

Question 124A.
M/s Legal Consultancy is a partnership of advocates (not involving any senior advocate). The firm provided legal services to Mr. Vivek and charged ₹ 12,000 for their services. Mr. Vivek Is not a business entity under GST laws. In this transaction, who shall be liable to pay tax on ₹ 12,000
(a) The partnership Firm
(b) Mr. Vivek
(c) Not a supply
(d) Exempted supply
Answer:
(d) Exempted supply

Question 125.
Transport of passengers by…………… are exempt from GST.
(a) Railway in First Class
(b) Railway in an air conditioner coach
(c) Metro rail
(d) All of the above
Answer:
(c) Metro rail

Question 126.
Which of the following services provided by Department of Posts are exempt from GST
(a) Speed Post
(b) Life Insurance
(c) Express Parcel Posts
(d) None of the above
Answer:
(d) None of the above

Question 127.
Select the goods not exempt from GST, out of the following.
(a) Puja Samagri
(b) Betal Leaves
(c) Precious Metal Bangles
(d) Hearing Aids
Answer:
(c) Precious Metal Bangles

Question 127A.
Which of the following services are exempt under GST
(a) testing of agricultural produce
(b) supply of farm labour
(c) warehousing of agricultural produce
(d) all of the above
Answer:
(d) all of the above

Question 128.
Transportation of by a GTA in a goods carriage is exempt from GST.
(a) Agricultural Produce
(b) Organic Manure
(c) Milk
(d) All of the above
Answer:
(d) All of the above

Question 129.
Mr. Amitabh Bachchan is the brand ambassador of GST in India. The consideration charged by him up to is exempt vide entry No. 78.
(a) ₹ 75,000
(b) ₹ 1,50,000
(c) ₹ 2,50,000
(d) Nil (ie. 100% is taxable)
Answer:
(d) Nil (ie. 100% is taxable)

Question 130.
The services by way of right to admission to the circus are exempt provided the consideration is
(a) Less than ₹ 250 per person
(b) Not more than ₹ 250 per person
(c) Less than ₹ 500 per person
(d) Not more than ₹ 500 per person
Answer:
(d) Not more than ₹ 500 per person

Question 130A.
What is the limit on consideration for exemption of services by way of right to admission to circus, dance or theater
(a) ₹ 250 per person
(b) ₹ 500 per person
(c) ₹ 750 per person
(d) ₹ 1,000 per person
Answer:
(b) ₹ 500 per person

Question 131.
Entry 66 exempts the services provided by an educational institution to …………
(a) Students
(b) Faculty
(c) Staff
(d) All of the above
Answer:
(d) All of the above

Question 132.
Which of the following service is not exempt under GST
(a) Loading and unloading of tea bags
(b) Loading and unloading of sugarcane
(c) Loading and unloading of paddy
(d) Loading and unloading of potato
Answer:
(a) Loading and unloading of tea bags

Question 133.
Transportation of by rail from Delhi to Haryana are exempt from GST.
(a) Defence equipment
(b) Organic manure
(c) Milk, salt and food grain
(d) All of the above
Answer:
(d) All of the above

Question 134.
Services by way of warehousing of …………. is exempt from GST.
(a) processed coffee
(b) processed tea
(c) rice
(d) jaggery
Answer:
(c) rice

Question 135.
Services by way of admission to ………… are exempt from GST.
(a) Museum
(b) National park
(c) Tiger reserve
(d) All of the above
Answer:
(d) All of the above

Question 136.
Warehousing of which of the following is NOT exempt from GST.
(a) Jaggery
(b) Whole gram
(c) Minor forest produce
(d) Rice
Answer:
(a) Jaggery

Question 137.
Services provided by a goods transport agency, by way of transport in a goods carriage of is exempt from GST:
(a) Agricultural produce
(b) Organic manure
(c) Newspaper registered with registrar of newspapers.
(d) All of the above
Answer:
(d) All of the above

Question 138.
G.D. Goenka school is an educational institution providing education up to higher secondary school. The school is covered under Entry No. 66. Identify which of the following services is not covered in exemption notification
(a) Transportation of students, faculty and staff
(b) Catering services
(c) Cleaning services performed in such educational institution
(d) All of the above are exempt
Answer:
(d) All of the above are exempt

Going through the Concept of Indirect Taxes at a Glance – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Concept of Indirect Taxes at a Glance – Tax Laws CS Executive MCQs

Question 1.
GST is applicable
(a) All over India
(b) All over India except Jammu & Kashmir
(c) All over India except Special States
(d) All over India except Union Territories
Answer:
(a) All over India

Question 1A.
The erstwhile state “Jammu and Kashmir” has been removed as state and framed into two Union Territory of Jammu and Kashmir and UT of Ladakh. Which of these two has its own legislative body?
(a) UT of Jammu and Kashmir
(b) UT of Ladakh
(c) Both (a) and (b)
(d) None of these
Answer:
(a) UT of Jammu and Kashmir

Question 2.
GST is a comprehensive tax regime covering both Goods and Services and be collected on value added at each stage of the supply chain. GST is thus levied on the basis of …………..
(a) Consumption principle
(b) Destination principle
(c) Set-off against that payable principle
(d) Both consumption and destination base principle
Answer:
(b) Destination principle

Question 3.
Which of the following statement is NOT TRUE?
(a) GST is destination based consumption tax
(b) GST adorns dual taxation model
(c) GST ensures seamless flow of ITC
(d) GST is levied on goods and services at equal rates
Answer:
(d) GST is levied on goods and services at equal rates

Question 4.
GST Council has been established under ………. of the Constitution of India.
(a) Article 246
(b) Article 254
(c) Article 279
(d) Article 279A
Answer:
(d) Article 279A

Question 5.
The functions of GST Council include
(a) To decide policy matters
(b) To formulate principles for administration
(c) The implementation of GST
(d) All of the above
Answer:
(d) All of the above

Question 6.
With effect from 31st October, 2019 after enforcement of J&K Reorganization Act, 2019, India has ………. states and union Territories.
(a) 29,7
(b) 28,8
(c) 28,9
(d) None of the above
Answer:
(c) 28,9

Question 7.
The J&K Reorganization Bill was introduced first in and then passed in …………………
(a) Rajya Sabha, Lok Sabha
(b) Lok Sabha, Rajya Sabha
(c) GOM, Lok Sabha
(d) Rajya Sabha, GOM
Answer:
(a) Rajya Sabha, Lok Sabha

Question 8.
The total 33 members of GST council represents of Central Government, ………. of States and of Union Territories with legislature.
(a) 2,28,3
(b) 2,29,2
(c) 2,27,4
(d) None of above
Answer:
(a) 2,28,3

Question 9.
In GST Council, there are 2 members representing Central Government, out of total 33 members. The voting weightage of Central Govt, is ………….
(a) 2/33
(b) 2/31
(c) 1/3
(d) 2/3
Answer:
(c) 1/3

Question 10.
GST was rolled out in India with effect from
(a) 1st July, 2017
(b) 1 st January, 2018
(c) 1st July, 2018
(d) None of the above
Answer:
(a) 1st July, 2017

Question 11.
Which one of the following is not a source of indirect taxes in India?
(a) Customs
(b) Corporation Tax
(c) GST
(d) All of the above
Answer:
(b) Corporation Tax

Question 12.
…………. are consumption based taxes on goods and services
(a) Direct Taxes
(b) Indirect Taxes
(c) Both (a) & (b)
(d) None of the above
Answer:
(b) Indirect Taxes

Question 13.
Most of the countries in the world follow a uniform GST System whereas considering to the federal nature of Indian Constitution, Model of GST proposed and implemented in India from 1st July, 2017 is ……….
(a) Unilateral Model
(b) Bilateral Model
(c) Dual Model
(d) None of the above
Answer:
(c) Dual Model

Question 14.
………. is the Supreme Law of India.
(a) Constitution of India
(b) Indian Penal Code
(c) Competition Act
(d) General Clauses Act
Answer:
(a) Constitution of India

Question 15.
The authority to levy a tax is derived from …………
(a) General Clauses Act
(b) Constitution of India
(c) Parliament of India
(d) None of the above
Answer:
(b) Constitution of India

Question 16.
Every decision of the Goods and Services Tax Council shall be taken at a meeting, by majority of not less than ……… of the weighted votes of the members present and voting. The vote of the Central Government shall have the weightage of ………. of the total votes cast and the votes of all the State Government taken together shall have a weightage of ……….. of the total votes cast in that meeting.
(a) 2/3, 1/3, 3/4
(b) 3/4, 1/3, 2/3
(c) 2/3, 2/3, 1/3
(d) 3/4, 1/2, 2/3
Answer:
(b) 3/4, 1/3, 2/3

Question 17
……. of the Indian Constitution distributes legislative powers including taxation, between the Parliament of India and the State Legislatures.
(a) Article 246
(b) Article 246A
(c) Article 256
(d) Article 265
Answer:
(a) Article 246

Question 18.
The subject matters with respect to which only the state legislatures can exclusively lay down the rules are given in
(a) List I
(b) List II
(c) List III
(d) List IV
Answer:
(b) List II

Question 19.
Before GST, main components of indirect taxes for the Central Government do not include
(a) Central Excise
(b) Value Added Tax
(c) Customs
(d) Service Tax
Answer:
(b) Value Added Tax

Question 20.
Under previous indirect tax regime (Before roll out of GST), the components of indirect taxes for State Government include:
(a) Value Added Tax
(b) Central Sales Tax
(c) Octroi, Entertainment tax, etc.
(d) All of the above
Answer:
(d) All of the above

Question 21.
GST came into force by the …………. Constitutional Amendment Act.
(a) 101
(b) 102
(c) 105
(d) 108
Answer:
(a) 101

Question 22.
The tax under GST legislation in India is being levied
(a) Only by Union Laws
(b) Only by State Laws
(c) Exclusively by Union and State Laws
(d) Simultaneously by Union and State Laws
Answer:
(d) Simultaneously by Union and State Laws

Question 23
………… contains the Residuary Powers of legislation.
(a) Article 246
(b) Article 246A
(c) Article 248
(d) Article 256
Answer:
(c) Article 248

Question 24.
Which of the following countries was the first to introduce GST?
(a) United States
(b) Britain
(c) Canada
(d) France
Answer:
(d) France

Question 25
……….. has the highest GST tax slab in the world.
(a) United States
(b) Britain
(c) France
(d) India
Answer:
(d) India

Question 26.
Almost ………… countries around the world follow GST scheme of indirect taxation.
(a) 110
(b) 140
(c) 160
(d) 166
Answer:
(d) 166

Question 27.
India has the highest tax slab in the world (at 28%) next only to ………. which is at 27%.
(a) France
(b) USA
(c) Argentina
(d) Britain
Answer:
(c) Argentina

Question 28.
Goods and Services to be supplied chargeable under the CGST Act, 2017 have been classified under different specified Code Numbers which are known as Harmonized System of Nomenclature (HSN) Codes. These HSN Codes have been evolved and developed by:
(a) GST Council
(b) HSN/SAC Codes Committee
(c) Customs Cooperation Council of Belgium
(d) None of the above
Answer:
(c) Customs Cooperation Council of Belgium

Question 29.
Under which model, tax is collected by the Centre and distributed to the States?
(a) Australian Model
(b) Canadian Model
(c) Kelkar-Shah Model
(d) Bagchi-Poddar Model
Answer:
(a) Australian Model

Question 30
……. envisages a combination of Central Excise, Service Tax and VAT to make it a common base of GST to be levied both by the Centre and the States respectively.
(a) Australian Model
(b) Canadian Model
(c) Kelkar-Shah Model
(d) Bagchi-Poddar Model
Answer:
(d) Bagchi-Poddar Model

Question 31.
Goods and Services Tax (GST) noted to be a greatest tax reform in India and therefore was rolled out with effect from 1st July, 2017. It transforms a system of taxation and administration into the digital world by adopting latest information technology. The GST model rolled out in India has been adopted from:
(a) France
(b) Canada
(c) Argentina
(d) None of the above
Answer:
(a) France

Question 32.
Which of the following has been omitted at the time of introduction of GST?
(a) Article 268(1)
(b) Article 268(2)
(c) Article 268A
(d) Article 269
Answer:
(c) Article 268A

Question 33.
The three lists regarding power to levy taxes by Centre and States are given in
(a) Sixth Schedule
(b) Seventh Schedule
(c) Eighth Schedule
(d) None of the above
Answer:
(b) Seventh Schedule

Question 34.
The Sixth Schedule of the constitution deals with the provisions as to the administration of Tribal areas in the states of
(a) Assam
(b) Meghalaya
(c) Tripura & Mizoram
(d) All of the above
Answer:
(d) All of the above

Question 35.
On which of the following products, both GST and Central Excise Duty are imposed?
(a) Petroleum
(b) Natural Fuel
(c) Aviation Turbine Fuel
(d) Tobacco & tobacco products
Answer:
(d) Tobacco & tobacco products

Question 36.
On which of the following only Central Excise Duty is levied and GST is not levied?
(a) Petroleum Crude & High Speed Diesel
(b) Motor Spirit & Natural Gas
(c) Aviation Turbine Fuel
(d) All of the above
Answer:
(d) All of the above

Question 37.
Which of the following Article of the Constitution of India specifies that Imports/exports is a deemed inter-state supply?
(a) Article 246A
(b) Article 269
(c) Article 269A
(d) Article 279A
Answer:
(c) Article 269A

Question 38.
Article 246A of the Constitution of India:
(a) Overrides Article 246
(b) Replaces Article 246
(c) Overrides Article 269A
(d) Replaces Article 269
Answer:
(a) Overrides Article 246

Question 39.
As per …………. the IGST will be distributed between Centre and the States/ Union Territory?
(a) Article 246A
(b) Article 269
(c) Article 269A
(d) Article 279A
Answer:
(c) Article 269A

Question 40.
In 2003 was the only state to introduce VAT.
(a) Haryana
(b) Punjab
(c) Goa
(d) Delhi
Answer:
(a) Haryana

Question 41.
……….. was the first state to ratify GST bill.
(a) Arunachal Pradesh
(b) Maharashtra
(c) Assam
(d) Telangana
Answer:
(c) Assam

Question 42.
…………… was the first state to pass State GST Bill.
(a) Arunachal Pradesh
(b) Maharashtra
(c) Assam
(d) Telangana
Answer:
(d) Telangana

Question 43.
GST Council has its headquarters in :
(a) Delhi
(b) Mumbai
(c) Madras
(d) Kolkata
Answer:
(a) Delhi

Question 44.
GST Bill was introduced under Constitutional Amendment Bill, but passed under …………. Amendment Act, 2016.
(a) 122nd; 101st
(b) 101st; 122nd
(c) 122nd; 122nd
(d) 101st; 101st
Answer:
(a) 122nd; 101st

Question 45.
Which of the following is charged by Central Government?
(a) Integrated GST
(b) Compensation Cess
(c) Central GST
(d) All of the above
Answer:
(d) All of the above

Question 46
………… is observed as GST day.
(a) 1st January
(b) 1st July
(c) 1st October
(d) 1st April
Answer:
(b) 1st July

Question 47.
The special purpose Vehicle to cater the IT needs of GST is ……………
(a) GSTN
(b) GSNT
(c) IT-GST
(d) GST-IN
Answer:
(a) GSTN

Question 48.
By virtue of which Article of the Constitution, GST Council has been formed?
(a) Article 246
(b) Article 248
(c) Article 279
(d) Article 279A
Answer:
(d) Article 279A

Question 49.
Who amongst the following is the chairperson of GST Council?
(a) Union Finance Minister
(b) President
(c) State Finance Minister
(d) Prime Minister
Answer:
(a) Union Finance Minister

Question 50.
As per Article 279A, who is empowered to constitute GST council:
(a) President
(b) Parliament
(c) Prime Minister
(d) None of the above
Answer:
(a) President

Question 51.
The GST Council consists of many persons. Its membership consists of which of the following members?
(a) Union Finance Minister
(b) Union Minister of State in charge of Revenue or Finance
(c) Minister in charge of Finance or Taxation, nominated by each State Government
(d) All of the above
Answer:
(d) All of the above

Question 52.
Who is the present chairperson of GST Council?
(a) Arun Jaitley
(b) Amit Shah
(c) Narendra Modi
(d) Nirmala Sitharaman
Answer:
(d) Nirmala Sitharaman

Question 53.
In 38th meeting of GST Council held on 18th December, 2019, the voting was held for the first time when the consensus was challenged by the Finance Minister of
(a) Kerala
(b) Delhi
(c) Maharashtra
(d) Centre
Answer:
(a) Kerala

Question 54.
Which of the following union Territory has its own legislature?
(a) Delhi
(b) Puducherry
(c) Jammu & Kashmir
(d) All of the above
Answer:
(d) All of the above

Question 55.
The voting took place for the first time in 38th meeting of GST council to discuss the matter relating to .
(a) Late fee of pending GSTR-1
(b) Taxability of upfront amount payable on lease
(c) Uniform rate of GST of 28% on lotteries
(d) New GST Returns.
Answer:
(c) Uniform rate of GST of 28% on lotteries

Question 56.
GST Council comprises of various persons from Union and States and is being headed by a chairperson who is:
(a) Finance Secretary to Government of India
(b) Union Finance Minister
(c) Any State Finance Minister
(d) Union Finance Minister
Answer:
(b) Union Finance Minister

Question 57.
As per Article 279A, of the total number of members of GST Council shall constitute the quorum at its meetings?
(a) One third
(b) One half
(c) One fourth
(d) One tenth
Answer:
(b) One half

Question 58.
At the time of taking decision at a meeting of GST Council, the vote of the Central Government shall have a weightage of of the total votes cast.
(a) One-tenth
(b) One-fourth
(c) One-third
(d) One-half
Answer:
(c) One-third

Question 59.
What is the weightage of votes of Central Government and State Government, to be considered for taking decision?
(a) 2:1
(b) 1:3
(c) 1:2
(d) 1:1
Answer:
(c) 1:2

Question 60.
The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute
(a) Relating to any defect in the appointment of a person as a Member
(b) Relating to any procedural irregularity of the Council
(c) Between the Government of India and one or more States
(d) Relating to weightage of vote for taking decision
Answer:
(c) Between the Government of India and one or more States

Question 61.
All decisions of GST Council must have ………. majority in order to implement the same.
(a) One-half
(b) Three-fourth
(c) 60%
(d) 90%
Answer:
(b) Three-fourth

Question 62.
The decision of the GST Council will be adopted when it has the support of:
(a) One-third majority
(b) Two-third majority
(c) Three-fourth majority
(d) Simple majority
Answer:
(c) Three-fourth majority

Question 63.
As per Article 279A, no act or proceedings of the GST Council shall be invalid merely by reason of:
(a) Any vacancy in, or any defect in, the Constitution of the Council
(b) Any defect in the appointment of a person as a member of the Council
(c) Any procedural irregularity of the Council not affecting the merits of the case
(d) All of the above
Answer:
(d) All of the above

Question 64.
Find out from the following, who will be the member in GST council on behalf of each of the state:
(a) Chief Minister of the State
(b) Home Minister of the State
(c) The Minister in charge of Finance or Taxation or any other Minister nominated by the State Government
(d) Chief Secretary of the State
Answer:
(c) The Minister in charge of Finance or Taxation or any other Minister nominated by the State Government

Question 65.
GST Council is being constituted for making recommendation on various issues relating to policy making, formulation of principle and implementation of policies relating to CGST Act, 2017. It is thus ……..
(a) An administrative body
(b) A Central level body
(c) A Committee of Finance Ministers
(d) An Apex Constitutional Body
Answer:
(d) An Apex Constitutional Body

Question 66.
The GST Council is a
(a) Unilateral Forum of Centre only
(b) Unilateral Forum of State only
(c) Joint Forum of Centre and the State
(d) None of the above
Answer:
(c) Joint Forum of Centre and the State

Question 67.
The provisions relating to GST Council came into force on 12th September, 2016. The President constituted the GST Council on
(a) 12th September, 2016
(b) 15th September, 2016
(c) 1st July, 2017
(d) 30th June, 2017
Answer:
(d) 30th June, 2017

Question 68.
The major reason for implementation of GST was:
(a) Plethora of taxes
(b) Plenty of taxable events
(c) Double taxation
(d) All of the above
Answer:
(d) All of the above

Question 69.
The four legislations (CGST Act, IGST Act, UTGST Act and GST Compensation Act) were given assent by the President on:
(a) April, 12, 2017
(b) April 15, 2017
(c) May 12, 2017
(d) July 1,2017
Answer:
(a) April, 12, 2017

Question 70
………. is the apex body for making recommendations on various issues relating to GST Policy making, formulation of principles, etc.
(a) GST Council
(b) CBIC
(c) Department of Revenue
(d) Ministry of Finance
Answer:
(a) GST Council

Question 71.
The Ministry of Finance is headed by ………….
(a) President
(b) Prime Minister
(c) Union Finance Minister
(d) Revenue Secretary
Answer:
(c) Union Finance Minister

Question 72.
The lowest level in the hierarchy of administrative mechanism at the central level is ………
(a) Region
(b) Zone
(c) Commissionerates
(d) Divisions
Answer:
(d) Divisions

Question 73.
Administration and procedural aspects of Goods and Services Tax are to be administered by the ……..which is under the control of the Department of Revenue, Ministry of Finance, Government of India.
(a) Central Board of Indirect Taxes and Customs
(b) Central Board of Indirect Taxes
(c) Central Board of Direct Taxes
(d) GST Council
Answer:
(a) Central Board of Indirect Taxes and Customs

Question 74.
The CBIC is under the control of ………
(a) Department of Revenue
(b) CBDT
(c) Prime Minister
(d) None of the above
Answer:
(a) Department of Revenue

Question 75.
The first discussion paper on GST was released by empowered committee in ………..
(a) February 2009
(b) September 2009
(c) November 2009
(d) March 2011
Answer:
(c) November 2009

Question 76.
“Committee on GST Design” was constituted in ………
(a) February 2009
(b) September 2012
(c) November 2012
(d) December 2012
Answer:
(c) November 2012

Question 77.
The CBIC is headed by …..
(a) Chairman and members
(b) Revenue Secretary
(c) Commissioners
(d) None of the above
Answer:
(a) Chairman and members

Question 78.
Which of the following authorities is headed by Principal Chief Commissioners?
(a) CBIC
(b) Regions
(c) Zones
(d) Divisions
Answer:
(b) Regions

Question 79.
The authorities and are headed by Principal Chief Commissioners and Chief Commissioners respectively.
(a) Regions, Divisions
(b) Regions, Zones
(c) Divisions, Zones
(d) Zones, Divisions
Answer:
(b) Regions, Zones

Question 80.
The administration and procedural aspects of GST are administered by the …………..
(a) CBIC
(b) Principal Commissioner
(c) GST Council
(d) Deputy Commissioners
Answer:
(a) CBIC

Question 81.
Which of the following taxes have not been subsumed in GST?
(a) State Excise Duty
(b) Stamp Duty
(c) Professional Tax
(d) All of the above
Answer:
(d) All of the above

Question 82.
Which of the following has been subsumed in GST?
(a) Basic Customs Duty
(b) Anti-Dumping Duty
(c) Entertainment Tax
(d) All of the above
Answer:
(c) Entertainment Tax

Question 83.
The contract for developing the vast technological back-end (GSTN) was awarded to which of the following company?
(a) Infosys
(b) Reliance Industries
(c) Tata Consultancy Services
(d) Wipro
Answer:
(a) Infosys

Question 84.
Which of the following State taxes has not been subsumed in GST?
(a) Motor Vehicle Tax
(b) State VAT
(c) Taxes on lottery, betting and gambling
(d) None of the above
Answer:
(a) Motor Vehicle Tax

Question 85.
The GST means any tax on supply of goods or services or both except taxes on supply of the………
(a) Alcoholic Liquor (All Types)
(b) Alcoholic Liquor for human consumption
(c) Legal services
(d) Petroleum
Answer:
(b) Alcoholic Liquor for human consumption

Question 86.
The constitutional Amendment Act passed to introduce GST is …………….
(a) Constitutional (101st Amendment) Act, 2016
(b) Constitutional (102nd Amendment) Act, 2016
(c) Constitutional (103rd Amendment) Act, 2016
(d) Constitutional (104th Amendment) Act, 2016
Answer:
(a) Constitutional (101st Amendment) Act, 2016

Question 87.
Which of the following list empowers the Central Government to levy tax?
(a) List I
(b) List II
(c) List III
(d) List IV
Answer:
(a) List I

Question 88.
Which one of the following Central Taxes has not been subsumed by GST?
(a) Central Excise Duty
(b) Safeguard Duty
(c) SAD
(d) Service Tax
Answer:
(b) Safeguard Duty

Question 89.
Which of the following statement is incorrect?
(a) GST Council shall constitute the quorum as per half of the members
(b) 3/4th of the weighted votes of the members present and voting
(c) GST Council was constituted on 12th September, 2016
(d) The GST Council is headed by the Prime Minister as chairman
Answer:
(d) The GST Council is headed by the Prime Minister as chairman

Question 90.
Which one of the following Acts has not been passed by the Union?
(a) CGST Act
(b) IGST Act
(c) SGST Act
(d) UTGST Act
Answer:
(c) SGST Act

Question 91.
To levy, collect UTGST on intra-UT supplies and for other matters, ………….. is the relevant law.
(a) CGST Act
(b) IGST Act
(c) UTGST Act
(d) SGST Act
Answer:
(c) UTGST Act

Question 92.
Which one of the following tax was levied in pre-GST era as State Tax?
(a) Central Excise Duty
(b) Taxes on advertisement
(c) Service Tax
(d) Special additional duty on Customs
Answer:
(b) Taxes on advertisement

Question 93.
Apart from India, …………is the only country in the world which follows a similar dual GST system.
(a) Canada
(b) Japan
(c) Brazil
(d) Hungry
Answer:
(c) Brazil

Question 94
on indirect taxes had suggested a comprehensive GST based on VAT principle.
(a) Malhotra task Force
(b) Kelkar Task Force
(c) Vajpayee Task Force
(d) Tandon Task Force
Answer:
(b) Kelkar Task Force

Question 95.
At present, the ‘alcoholic liquor for human consumption’ is subjected to which of the following?
(a) GST
(b) State excise duty
(c) Central Sales Tax/Value Added Tax
(d) Both (c) and (d)
Answer:
(d) Both (c) and (d)

Question 96.
Which of the taxes have been subsumed in GST?
(a) VAT
(b) Service tax
(c) Luxury tax
(d) All of the Above
Answer:
(d) All of the Above

Question 97.
Tax on sale of computer table by a trader is subjected to ………….
(a) GST
(b) State excise duty
(c) Central Sales Tax/Value Added Tax
(d) Both (c) and (d)
Answer:
(a) GST

Question 98.
Consequent to section 118 of the Finance Act, 2020, the section 2( 114) of the CGST Act, 2017 has been amended. Which of the following Union Territories have been merged into a single Union Territory?
(i) Andaman and Nicobar Islands
(ii) Lakshadweep
(iii) Dadra and Nagar Haveli
(iv) Daman and Diu
(v) Chandigarh
(vi) Ladakh
(a) (i) and (ii)
(b) (iii) and (iv)
(c) (v) and (vi)
(d) (i) and (iii)
Answer:
(b) (iii) and (iv)

Question 99.
In accordance with Article 279A(9), the vote of the Central Government shall have a weightage of …….. of the total votes cast.
(a) One half
(b) One third
(c) One fourth
(d) None of these
Answer:
(b) One third