Basic Overview on IGST, UtGST and GST Compensation Cess – CS Executive Tax Laws MCQ

Going through the Basic Overview on IGST, UtGST and GST Compensation Cess – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Basic Overview on IGST, UtGST and GST Compensation Cess – Tax Laws CS Executive MCQs

Question 1.
The IGST Act, 2017 has been passed by the Parliament for ……… on inter-state supply of goods and services or both.
(a) Levy of tax by the State Government
(b) Collection of tax by State Government
(c) Levy & collection of tax by State Government
(d) Levy & collection of tax by Central Government
Answer:
(d) Levy & collection of tax by Central Government

Question 2.
The IGST Bill was presented by Union Government:
(a) First in Lok Sabha & then in Rajya Sabha
(b) First in Rajya Sabha & then in Lok Sabha
(c) Simultaneously in both the houses
(d) Directly assented by the President
Answer:
(a) First in Lok Sabha & then in Rajya Sabha

Question 3.
The IGST Bill was presented by Union Government in Lok Sabha and was passed by the same on and Rajya Sabha
passed the bill on ………..
(a) 29th March, 2017 & 6th April, 2017
(b) 6th April, 2017 & 29th March, 2017
(c) 25th March, 2017 & 28th March, 2017
(d) 18 th March, 2017 & 28th March, 2017
Answer:
(a) 29th March, 2017 & 6th April, 2017

Question 4.
The IGST Act, 2017 was assented to by the President on….
(a) 10th April, 2017
(b) 12th April, 2017
(c) 14th April, 2017
(d) 1st July, 2017
Answer:
(b) 12th April, 2017

Question 5.
Under IGST Act, 2017, the Integrated Tax is levied and collected by …….
(a) The Centre
(b) The State Government
(c) The Union Territory
(d) Both (b) and (c)
Answer:
(a) The Centre

Question 6.
Tax on inter-State supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged under
(a) CGST&SGST
(b) CGST& UTGST
(c) CGST&IGST
(d) IGST
Answer:
(d) IGST

Question 7.
The Integrated Tax, collected by the Central Government, is:
(a) Retained by Central Government
(b) Given to State Government
(c) Apportioned between the Union and State Government equally
(d) Apportioned between the Union and State Government in the ratio 60:40
Answer:
(c) Apportioned between the Union and State Government equally

Question 8.
IGST paid is available as credit to set off against the payment of ……….. on output supplies.
(a) IGST
(b) IGST and CGST
(c) CGST and SGST
(d) IGST, CGST and SGST
Answer:
(d) IGST, CGST and SGST

Question 9.
The IGST Act, 2017 deals with
(a) Inter-State Supplies
(b) Import into India
(c) Supplier made outside India
(d) All of the above
Answer:
(d) All of the above

Question 10.
IGST is applicable:
(a) To all States except Jammu and Kashmir
(b) To all States and Union Territories (except Jammu & Kashmir)
(c) To all over India excluding the state of Jammu & Kashmir
(d) To all over India including the state of Jammu & Kashmir
Answer:
(d) To all over India including the state of Jammu & Kashmir

Question 11.
As per section 5 of IGST Act, 2017, a maximum rate of may be imposed on interState supply of goods and/or services.
(a) 20%
(b) 28%
(c) 32%
(d) 40%
Answer:
(d) 40%

Question 12.
Before IGST, …… Regulated the inter-state trade or commerce.
(a) Central Sales Tax Act, 1956
(b) Central Sales Tax Act, 1965
(c) Value Added Tax Act, 1985
(d) Value Added Tax Act, 2002
Answer:
(a) Central Sales Tax Act, 1956

Question13.
Under while Central Sales Tax Act, 1956, the CST was:
(a) Collected & retained by. Central Government
(b) Collected & retained by Origin State
(c) Collected & retained by destination state
(d) None of the above
Answer:
(b) Collected & retained by Origin State

Question 14.
Before IGST, the Input Tax Credit of Central Sales Tax (CST) paid was
(a) Allowed to the buyer
(b) Allowed to the seller
(c) Not allowed to buyer
(d) None of the above
Answer:
(c) Not allowed to buyer

Question 15.
IGST is a mechanism to monitor the inter-state trade of goods and services and ensure that the SGST component accrues to the …….
(a) Union of India
(b) Consumer State
(c) Origin State
(d) Centre
Answer:
(b) Consumer State

Question 16.
Which of the following equation is true?
(a) IGST Rate = CGST Rate + SGST Rate
(b) IGST Rate = CGST Rate – SGST Rate
(c) IGST Rate = 2 [CGST Rate + SGST Rate]
(d) None of the above
Answer:
(a) IGST Rate = CGST Rate + SGST Rate

Question 17.
Chapter IV of the IGST Act, 2017 is related with determination of nature of supply:
I Inter-state supply
II Intra-supply
III Supplies in territorial waters
IV Captive consumption supplies The Chapter IV covers:
(a) I only
(b) I&III
(c) I, II & III
(d) i, ii, iii & iv
Answer:
(c) I, II & III

Question 18.
As per section 7 of IGST Act, 2017, the supply of goods/services shall be treated as inter-state supply, where the location of supplier and the place of supply are in:
(a) Two different states
(b) Two different Union Territories
(c) A State and a Union Territories
(d) All of the above
Answer:
(d) All of the above

Question 19.
The levy and collection under IGST Act, 2017 is given under
(a) Section 5
(b) Section 6
(c) Section 7
(d) Section 9
Answer:
(a) Section 5

Question 20.
Which one of the following statement is wrong as regards IGST Act, 2017?
(a) IGST is imposed on inter-state supply
(b) Value is determined as per section 15 of CGST Act, 2017
(c) The maximum rate of levy under IGST is 40%
(d) Inter-State supply does not include import
Answer:
(d) Inter-State supply does not include import

Question 21.
IGST is levied on imported goods under:
(a) Section 5 of IGST Act
(b) Section 9 of CGST Act
(c) Section 7 of UTGST Act
(d) Section 3 of Customs Tariff Act
Answer:
(d) Section 3 of Customs Tariff Act

Question 22.
As per section 16 of IGST Act, “Zero Rated Supply” includes:
(a) Export of goods or services or both
(b) Supply of goods or services or both to SEZ developer
(c) Supply of goods or services or both to Special Economic Zone unit
(d) All of the above
Answer:
(d) All of the above

Question 23.
As regards section 15 of the IGST Act, 2017, an “International Tourist” has been defined as non-resident of India who enters India for a stay of ………….
(a) Less than 3 months
(b) Up to 3 months
(c) Less than 6 months
(d) Up to 6 months
Answer:
(c) Less than 6 months

Question 24.
Which section of the IGST Act, 2017 provides the application of provisions of CGST Act relating to scope of supply, Com-posite and Mixed supply, Time and Value of Supply, etc. shall, mutatis mutandis, apply in relation to Integrated Tax.
(a) Section 5
(b) Section 10
(c) Section 15
(d) Section 20
Answer:
(d) Section 20

Question 25.
Most of the provisions of CGST Act, 2017 are applicable to Integrated Tax also. How many sections are there in IGST Act, 2017?
(a) 25
(b) 38
(c) 45
(d) 72
Answer:
(a) 25

Question 26.
The section 22 of IGST Act, 2017 empowers the Government to make rules for carrying out the provisions of the Act. These rules are:
(a) Notified by the Central Government at its own motion
(b) Notified by the Central Government, on the recommendations of the Council
(c) Announced by the Central Govern-ment by issue of Circular
(d) Announced by the Central Government by issue of Notice
Answer:
(b) Notified by the Central Government, on the recommendations of the Council

Question 27.
As per section 14 of IGST Act, 2017, In case of supply of online information and database access or retrieval services by any person located in a Non-Taxable Territory and received by a non-taxable online recipient, the of services located in a … territory shall be the person liable for paying integrated tax on such supply of services.
(a) Supplier, Non-Taxable
(b) Supplier, Taxable
(c) Recipient, Non-Taxable
(d) Recipient, Taxable
Answer:
(a) Supplier, Non-Taxable

Question 28.
As per section 13(a) of IGST Act, 2017, the place of supply of transportation of goods, other than by way of mail or courier, shall be the place of ………… of such goods.
(a) Origination
(b) Destination
(c) First stopover of such goods
(d) None of the above
Answer:
(b) Destination

Question 29.
Section 15 of the IGST Act, 2017 provides for
(a) Refund of Integrated Tax paid to an International Tourist leaving India on goods being taken outside India
(b) Refund of Central Tax paid to an International Tourist leaving India on goods being taken outside India
(c) Refund of both, Integrated Tax and Central Tax, paid to an International Tourist leaving India on goods being taken outside India
(d) None of the above
Answer:
(a) Refund of Integrated Tax paid to an International Tourist leaving India on goods being taken outside India

Question 30.
Which Rule of IGST Act, 2017 lays down that the CGST Rules, 2017 shall apply in relation to Integrated Tax as they apply to Central Tax, for carrying out the provisions specified in section 230 of IGST Act, 2017.
(a) Rule 1
(b) Rule 2
(c) Rule 3
(d) Rule 4
Answer:
(b) Rule 2

Question 31.
In case of exports and supplies to SEZs, no tax is payable. In these cases:
(a) ITC is allowed
(b) ITC is not allowed
(c) ITC is allowed provided the export results into inflow of foreign currency
(d) ITC is allowed up to inflow of foreign currency
Answer:
(a) ITC is allowed

Question 32.
In case of Zero Rated Supplies, ITC is allowed and refunds in respect of such supplies may be claimed by option:
(a) Supply made without the payment of IGST under Bond/LUT and claim refund of unutilized ITC
(b) Supply made on payment of IGST and claim refund for the same
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(d) Either (a) or (b)

Question 33
…….. supplies shall attract IGST?
(a) Intra-State
(b) Inter-State
(c) Intra Union-territory
(d) None of the above
Answer:
(b) Inter-State

Question 34.
Unless and until notified, IGST shall not be levied on the Inter-State supply of which of the following?
(a) Works Contract
(b) Taxable Services
(c) Industrial Alcohol
(d) Petroleum
Answer:
(d) Petroleum

Question 35.
Which of the following is an Inter-State supply?
(a) Supplier of goods located in Delhi and place of supply of goods is to an SEZ located in Delhi
(b) Supplier of goods located in Delhi and place of supply of goods in Jaipur
(c) Supplier of goods located in Delhi and place of supply is to an SEZ located in Chandigarh
(d) All of the above
Answer:
(d) All of the above

Question 36.
Supply of goods in the course of imports into the territory of India is:
(a) Inter-State Supply
(b) Intra-State supply
(c) Imports but not subject to GST
(d) Import with applicability of CGST and SGST
Answer:
(a) Inter-State Supply

Question 37.
As regards refunds in IGST Act, 2017, “Tourist” means a person:
(a) Not normally resident in India
(b) Stays for not more than 6 months in India
(c) Stays for legitimate and Non-Immigrant purpose
(d) All of the above
Answer:
(d) All of the above

Question 38.
As per section 15 of IGST Act, 2017, a Tourist can claim refund of :
(a) IGST on supply of services
(b) IGST on supply of goods
(c) IGST on supply of goods & services
(d) CGST & SGST on supply of goods & services
Answer:
(b) IGST on supply of goods

Question 39.
Zero Rated Supply includes:
I Export of Goods
II Export of Services
III Supply of goods to a SEZ developer or SEZ unit
IV Supply of services to a SEZ developer or SEZ unit
V Supply of goods by SEZ developer or SEZ unit
VI Supply of services by SEZ developer or SEZ unit
(a) i&ii
(b) i,ii,iii & iv
(c) i, ii, iii, iv & v
(d) All (I to VI)
Answer:
(b) i,ii,iii & iv

Question 40.
A registered taxable person is eligible to claim refund in respect of export of goods and services in the following cases:
(a) On payment of IGST and claim refund of IGST paid on such goods and services
(b) Under Bond, without payment of IGST and claim refund of unutilized ITC
(c) Both (a) & (b)
(d) Neither (a) nor (b)
Answer:
(c) Both (a) & (b)

Question 41.
As per section 17(1), out of IGST paid to the Central Government, which of the following must be apportioned based on tax rate equivalent to the CGST on similar intra-state supply?
(a) Inter-state supply of goods and services to an unregistered person
(b) Inter-state supply of goods and services to a taxable person paying tax under section 10 of the CGST Act, 2017
(c) Inter-state supply of goods and services to taxable person not eligible for Input Tax Credit
(d) All of the above
Answer:
(d) All of the above

Question 42.
Under IGST Act, 2017, the provisions of apportionment of tax also apply to
(a) Apportionment of Interest
(b) Apportionment of Penalty
(c) Compounding amount realized in connection with tax so apportioned
(d) All of the above
Answer:
(d) All of the above

Question 43
Of IGST Act, 2017 is related with tax wrongfully collected and paid to Central Government or State Government.
(a) Section 17
(b) Section 18
(c) Section 19
(d) Section 20
Answer:
(c) Section 19

Question 44.
The registered person has paid IGST by treating and intra-state supply as inter-state supply. The officer has levied CGST and SGST as the same is intra-state supply. What is the remedy?
(a) Pay CGST and SGST along with applicable interest
(b) Pay CGST and SGST and claim refund of IGST
(c) Forgo IGST paid
(d) None of the above
Answer:
(b) Pay CGST and SGST and claim refund of IGST

Question 45.
Under Chapter IX of v, section 20 is related with application of provisions of CGST to IGST. What are these provisions?
(a) All the provisions of CGST Act
(b) Only a few provisions of CGST Act
(c) The provisions of CGST Act as would be applicable to IGST has not been mentioned
(d) The exact provisions of CGST Act as would be applicable to IGST have not been enumerated. However, a list of items have been mentioned, whose corresponding provisions under CGST would apply to IGST Act.
Answer:
(d) The exact provisions of CGST Act as would be applicable to IGST have not been enumerated. However, a list of items have been mentioned, whose corresponding provisions under CGST would apply to IGST Act.

Question 46.
As per Explanation to Section 21 of v, when is import of services deemed to have been initiated before commencement of IGST Act.
(a) When invoice relating to such supply has been received or made before IGST has come into existence
(b) Payment is made/received either in part or full before IGST has come into existence
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(d) Either (a) or (b)

Question 47.
As per Proviso to section 25 (1) of IGST Act, 2017, what is the maximum period of exercising this power of issuing general or special order for removal of difficulties?
(a) 1 Year
(b) 2 Years
(c) 3 Years
(d) 4 Years
Answer:
(c) 3 Years

Question 48.
The supply of goods to SEZ unit is treated as ………. in the hands of the supplier.
(a) Exempt supply (Reversal of credit)
(b) Deemed Taxable Supply (No reversal of Credit)
(c) Export of supplies
(d) Non-taxable Supply (Outside the scope of GST)
Answer:
(c) Export of supplies

Question 49.
Is the SEZ developer or SEZ unit receiving zero rated supply eligible to claim refund of IGST paid by the registered taxable person on such supply?
(a) Yes (100% of amount paid)
(b) Yes (50% of amount paid)
(c) Yes (30% of amount paid)
(d) No
Answer:
(d) No

Question 50.
The orders made by Central Government under section 25 for removal of difficulties shall be laid before each House of Parliament:
(a) Before it is made
(b) As soon as it may be, after it is made
(c) After 30 days of passing order
(d) None of the above
Answer:
(b) As soon as it may be, after it is made

Question 51.
A registered person has paid Central Tax and State Tax on a transaction considered by him to be an intra-state supply, but which is subsequently held to be an inter-state supply. As per section 19(2) of IGST Act, 2017, such registered person shall ………… on amount of Integrated Tax payable.
(a) Be required to pay interest
(b) Be required to pay half interest
(c) Not be required to pay any interest
(d) May be required to pay as may be decided by Principal Commissioner
Answer:
(c) Not be required to pay any interest

Question 52.
As per section 2 (11) of IGST Act, 2017, “Import of service” means the supply of any service, where:
(a) The supplier is located outside India
(b) The recipient of service is located in India
(c) The place of supply of service is in India
(d) All of the above
Answer:
(d) All of the above

Question 53.
Which Section of IGST Act confers powers on the Central Government to make such provisions not consistent with the provision of the Act or rules by a general or special order, on the recommendation of the Council.
(a) Section 22
(b) Section 23
(c) Section 24
(d) Section 25
Answer:
(d) Section 25

Question 54.
What is the period of stay in India given in Explanation to Section 15 of IGST Act, for the purpose of the term “Tourist”?
(a) Less than 6 Months
(b) 6 Months
(c) More than 6 Months
(d) Not more than 6 Months
Answer:
(d) Not more than 6 Months

Question 55.
The special provisions for payment of tax by a supplier of OIDAR services are given in of IGST Act, 2017.
(a) Section 11
(b) Section 12
(c) Section 13
(d) Section 14
Answer:
(d) Section 14

Question 56.
As per Section 13(11) of IGST Act, the place of Supply of Services provided on board of Conveyance during the course of passenger transfer operation, consumed while on board, shall be the point of departure of that conveyance for the journey.
(a) First
(b) Last
(c) Median
(d) None of the above
Answer:
(a) First

Question 57.
The UTGST Act, 2017 is applicable to
(a) All Union territories
(b) All Union territories except Chandigarh
(c) All Union territories except Delhi and Chandigarh
(d) All Union territories except Delhi and Puducherry
Answer:
(d) All Union territories except Delhi and Puducherry

Question 58
……….. supply shall attract UTGST Act?
(a) Intra-State
(b) Intra Union Territories
(c) Inter State
(d) Inter Union Territories
Answer:
(b) Intra Union Territories

Question 59.
What is the maximum rate of GST given under section 7(1) of the UTGST Act, 2017?
(a) 14%
(b) 18%
(c) 20%
(d) 28%
Answer:
(c) 20%

Question 60.
Provision for levy and collection of tax on intra-State supply of goods or services or both by the Union Territory and for matters connected therewith or incidental thereto are being enumerated in:
(a) CGST Act, 2017
(b) IGST Act, 2017
(c) UTGST Act, 2017
(d) None of the above
Answer:
(c) UTGST Act, 2017

Question 61.
Unless and until notified by the Central Government on the recommendation of the Council, UTGST shall not be levied on the following supplies:
(a) Petroleum Crude & High Speed Diesel
(b) Motor Spirit
(c) Natural Gas and Aviation Turbine Fuel
(d) All of the above
Answer:
(d) All of the above

Question 62.
Which of the following supply will attract CGST & UTGST?
(a) Supply of goods by Mr. A of Delhi to Mr. B of Delhi
(b) Supply of services by Mr. C of Chandigarh to Mr. D of Lakshadweep
(c) Supply of goods by Mr. E to Mr. F, both are in Chandigarh
(d) None of the above
Answer:
(c) Supply of goods by Mr. E to Mr. F, both are in Chandigarh

Question 63.
As per section 9A of UTGST Act, 2017 as inserted w.e.f. 1-2-2019, the ITC on account of Union Territory Tax shall be utilised towards payment of Integrated tax/Union Territory Tax:
(a) When ITC of SGST is not available
(b) When ITC of CGST is available
(c) Only after ITC of Integrated Tax has first been utilised towards such payment
(d) Cannot be used
Answer:
(c) Only after ITC of Integrated Tax has first been utilised towards such payment

Question 64.
Section 11 of UTGST Act, 2017 deals with the officers required to assist proper officers in the implementation of UTGST Act. These officers are:
(a) All officers of Police, Railways and Customs
(b) Officers engaged in collection of Land revenue (including Village Officers)
(c) Officers of central Tax and State tax
(d) All of the above
Answer:
(d) All of the above

Question 65.
Consider the following information:

ITC available on account of Integrated Tax	₹ 40,000
ITC available on account of Central Tax	Nil
ITC available on account of Union Territory Tax	₹ 30,000
Union Territory Tax payable on outward supplies	₹ 25,000

The IGST and CGST on outward supplies have been settled through respective ITC.
Keeping in view the section 9A of UTGST Act, 2017 as inserted with effect from 1-2-2019:
(a) ITC (Integrated Tax) shall be used to pay Union Territory Tax
(b) ITC (Union Territory Tax) shall be used to pay Union Territory Tax
(c) Any of above
(d) None of the above
Answer:
(a) ITC (Integrated Tax) shall be used to pay Union Territory Tax

Question 66.
Integrated tax credit as per section 9A of UTGST Act, 2017 on account of Union Territory Tax shall be utilized towards payment of only after the input tax credit available on account of has first been utilized towards such payment.
(a) Integrated Tax and Union Territory Tax, Integrated Tax
(b) Union Territory Tax, Input Tax
(c) Integrated Tax or Union Territory Tax, Union Territory Tax
(d) Integrated Tax or Union Territory Tax, Integrated Tax
Answer:
(d) Integrated Tax or Union Territory Tax, Integrated Tax

Question 67
of UTGST Act, 2017 gives the items in respect of which the provisions of CGST Act, 2017 shall apply to UTGST Act.
(a) Section 19
(b) Section 20
(c) Section 21
(d) Section 22
Answer:
(c) Section 21

Question 68.
What provisions of CGST Act have been made applicable to UTGST, as per section 21 of UTGST Act, 2017?
(a) All the provisions of CGST Act
(b) Few sections as specified under UTGST Act
(c) The exact provisions are not given but a list of items have been mentioned, whose corresponding provisions under CGST would apply to UTGST Act
(d) None of the above
Answer:
(c) The exact provisions are not given but a list of items have been mentioned, whose corresponding provisions under CGST would apply to UTGST Act

Question 69.
As per section 26 of UTGST Act, 2017, what is the maximum period for exercising the power of issuing general or a special order for removal of difficulties?
(a) 1 Year
(b) 2 Years
(c) 3 Years
(d) 4 Years
Answer:
(c) 3 Years

Question 70.
The order made under section 26 of UTGST Act, 2017 as regards removal of difficulties, shall be:
(a) Laid, prior to the time when it is made, before each House of Parliament
(b) Laid, after it is made, before each House of Parliament
(c) Laid at GST Council, after it is made
(d) Notified only and not required to be laid before any House of Parliament
Answer:
(b) Laid, after it is made, before each House of Parliament

Question 71.
How many sections are there in UTGST Act, 2017?
(a) 22
(b) 25
(c) 26
(d) 28
Answer:
(c) 26

Question 72.
In respect of which item mentioned below, the provisions of CGST Act are NOT applicable as the related provisions are given in UTGST Act, 2017 itself?
(a) Scope of supply
(b) Levy and Collection of UTGST
(c) Registration
(d) Returns
Answer:
(b) Levy and Collection of UTGST

Question 73.
A registered person has paid Central Tax and the Union Territory Tax on a transaction considered by him to be an intra-state supply, but is subsequently held to be an inter-state supply. In this scenario, as per section 12(1) of UTGST Act:
(a) Tax paid (Central Tax and Union Territory Tax) shall be adjusted to-wards Integrated Tax
(b) Tax paid (Central Tax and Union Territory Tax) shall be forfeited and Integrated Tax to be paid
(c) Tax paid (Central Tax and Union Territory Tax) shall be refunded and Integrated Tax to be paid separately
(d) The Central Tax paid shall be adjusted towards Integrated Tax and Union Territory Tax shall be refunded
Answer:
(c) Tax paid (Central Tax and Union Territory Tax) shall be refunded and Integrated Tax to be paid separately

Question 74.
Mr. X had paid Integrated Tax on intrastate supply at which actually Central Tax and Union Territory Tax was payable. In accordance with section 12(2) of UTGST Act, 2017:
(a) Such person is required to pay interest @ 15% on amount of Central Tax and Union Territory Tax payable
(b) Such person is required to pay interest @ 18% on amount of Central Tax and Union Territory Tax payable
(c) Such person shall not be required to pay interest
(d) None of the above
Answer:
(c) Such person shall not be required to pay interest

Question 75.
On which of the following Union Territory, UTGST Act is not applicable?
(a) Andaman & Nicobar Islands
(b) Chandigarh
(c) Delhi
(d) Daman & Diu
Answer:
(c) Delhi

Question 76.
Section 22 of the UTGST Act, 2017 laysdown the power of Central Government to make rules on the recommendation of the Council. Any rule made under sub-section (1) of section 22 may provide that a convention thereof shall be liable to a maximum penalty of
(a) ₹ 10,000
(b) ₹ 1,000
(c) ₹ 5,000
(d) ₹ 2,500
Answer:
(a) ₹ 10,000

Question 77
……………… and are the two Union Territories at which UTGST Act is not applicable?
(a) Delhi & Puducherry
(b) Delhi & Chandigarh
(c) Puducherry & Chandigarh
(d) Andaman and Nicobar & Goa
Answer:
(a) Delhi & Puducherry

Question 78.
As per section 2(3) of UTGST Act, 2017, “Designated Authority” refers to the authority notified by:
(a) Central Government
(b) State Government
(c) Union Territory Government
(d) Commissioner
Answer:
(d) Commissioner

Question 79.
Section ……….. of UTGST Act, 2017 is related with levy and collection of Union Territory Tax.
(a) Section 6
(b) Section 7
(c) Section 8
(d) Section 9
Answer:
(b) Section 7

Question 80.
The exemptions under UTGST Act, 2017 are given in ……………
(a) Section 8
(b) Section 9
(c) Section 10
(d) None of the above
Answer:
(a) Section 8

Question 81.
Section 7(1) of UTGST Act, 2017 provides the levy of Union Territory Tax on all intra-state supplies of goods or services or both on the value determined:
(a) Under section 8 of UTGST Act, 2017
(b) Undersection 15of UTGST Act,2017
(c) Under section 15 of CGST Act, 2017
(d) None of the above
Answer:
(c) Under section 15 of CGST Act, 2017

Question 82.
Under section 15 of UTGST Act, 2017, who is empowered to constitute Authority for Advance Ruling?
(a) Central Government
(b) State Government
(c) Union Territory Government
(d) Any of the above
Answer:
(a) Central Government

Question 83.
The Proviso to section 15 (1) of UTGST Act, 2017 empowers Central Government, on recommendations of GST council, to ………….
(a) Notify Authority of other Union Territory/State to act as Authority
(b) Notify committee to act as Authority
(c) Notify 15 persons to act as Authority, out of which one shall be chairman
(d) Notify that no other Authority shall act as Authority under this Act.
Answer:
(a) Notify Authority of other Union Territory/State to act as Authority

Question 84.
Section 16 of UTGST Act, 2017 is related with constitution of …………
(a) Authority for Advance Ruling
(b) Committee for Advance Ruling
(c) Powers of Authority for Advance Ruling
(d) Appellate Authority for Advance Ruling
Answer:
(d) Appellate Authority for Advance Ruling

Question 85.
As per Section 11 of UTGST Act, 2017, which of the following officers of shall assist the proper officers in the implementation of UTGST Act?
(a) Police
(b) Railways
(c) Customs
(d) All of the above
Answer:
(d) All of the above

Question 86.
The Central Government Constitutes, under section 16(1) of UTGST Act, Appellate Authority for Advance Ruling for hearing appeals against.
(a) Advance Ruling pronounced by Advance Ruling Authority
(b) Ruling of State Govt.
(c) Ruling of officers under CGST
(d) None of the above.
Answer:
(a) Advance Ruling pronounced by Advance Ruling Authority

Question 87.
The UT Authority for Advance Ruling, constituted under Section 15 of UTGST Act, shall consist of ………… member from amongst the officers of Central Tax and members(s) from amongst the officers of Union Territory Tax.
(a) One, one
(b) One, Two
(c) Two, one
(d) Two, Three
Answer:
(a) One, one

Question 88.
The UT Appellate Authority for Advance ruling include the following:
(a) Commissioner of Central Tax
(b) Officer of Central Tax.
(c) Chief Commissioner of Central Tax
(d) Chief Commissioner of UT.
Answer:
(c) Chief Commissioner of Central Tax

Question 89.
The Section 26 of UTGST Act, 2017 Confers powers to Central Government to make provisions, on recommendation of the Council, within a period of ………… from the date of Commencement of Act.
(a) 2 Years
(b) 3 Years
(c) 4 Years
(d) 5 Years
Answer:
(b) 3 Years

Question 90.
What is the amount of penalty specified in Section 22(4) of UTGST Act for contravention of any provisions under the Act?
(a) Less than ₹ 10,000.
(b) ₹ 10,000
(c) Not Exceeding ₹ 10,000
(d) Exceeding ₹ 10,000
Answer:
(c) Not Exceeding ₹ 10,000

Question 91.
How many schedules are given in GST (Compensation to States) Act, 2017?
(a) 1
(b) 2
(c) 3
(d) 4
Answer:
(a) 1

Question 92.
President of India gave assent to
(i) CGST Act, 2017
(ii) IGST Act, 2017
(iii) UTGST Act, 2017 and
(iv) GST Compensation Act, 2017 on:
(a) 13th May, 2017
(b) 12th April, 2017
(c) 16th April, 2017
(d) 6th June, 2017
Answer:
(b) 12th April, 2017

Question 93.
The compensation to states for loss of revenue on account of implementation of GST is for years.
(a) 2
(b) 5
(c) 8
(d) 10
Answer:
(b) 5

Question 94.
The GST (Compensation to States) Act, 2017 extends to :
(a) Whole of India
(b) Whole of India, except Jammu & Kashmir
(c) Whole of India except Special Category States
(d) Whole of India except Union Territories
Answer:
(a) Whole of India

Question 95.
As per section 2( 1)(g) of GST (Compensation to States) Act, 2017, “Input Tax” in relation to taxable person means:
(a) Cess charged on any supply of goods or services or both made to him
(b) Cess charged on import of goods & includes the Cess payable on reverse charge basis
(c) Both (a) & (b)
(d) Neither (a) nor (b)
Answer:
(c) Both (a) & (b)

Question 96.
The GST (Compensation to States) Act, 2017 is an Act to provide for compensation to ….for loss of revenue arising on account of implementation of GST.
(a) Centre
(b) States
(c) Both Centre and States
(d) None of the above
Answer:
(b) States

Question 97.
Under GST (Compensation to States) Act, 2017, “The Taxable Supply” means a supply of goods or services or both which is chargeable to the …….. under
(a) Cess, GST Compensation Act
(b) Tax, CGSTAct
(c) Tax, SGST Tax
(d) Tax, UTGST Act
Answer:
(a) Cess, GST Compensation Act

Question 98.
A period of ………. From the Transition Date is the Transition Period under GST (Compensation to States) Act, 2017.
(a) 2 Years
(b) 5 Years
(c) 6 Years
(d) 7 Years
Answer:
(b) 5 Years

Question 99.
As per section 2(1 )(q) of GST (Compensation to States) Act, 2017, “Transition Date” shall mean the date on which comes into force.
(a) CGST Act
(b) SGST Act
(c) UTGST Act
(d) GST (Compensation to States) Act
Answer:
(b) SGST Act

Question 100.
For The base Financial Year for the purpose of calculating compensation pay-able to the state as per GST (Compensation to States) Act, 2017 shall be taken:
(a) 2014-2015
(b) 2016-2017
(c) 2012-2013
(d) 2015-2016
Answer:
(d) 2015-2016

Question 101.
As per section 4 of GST (Compensation to States) Act, 2017, which financial year has been considered as the base year for calculating the compensation amount payable in any financial year during the transition period?
(a) Financial Year ending 31st March, 2014
(b) Financial Year ending 31st March, 2015
(c) Financial Year ending 31st March,2016
(d) Financial Year ending 31st March, 2017
Answer:
(c) Financial Year ending 31st March,2016

Question 102.
As per section 5(1), which of the following taxes are considered in the calculation of base year revenue?
(a) VAT, Sales Tax, Purchases Tax, Tax collected on works contract
(b) Central Sales Tax
(c) Entry Tax, Octroi, Local Body Tax
(d) All of the above
Answer:
(d) All of the above
₹ 8,00,000 × (1.14)³ = ₹ 11,85,235

Question 103.
If the base year revenue for 2015-2016 for a concerned state (as per section 5) is ₹ 8,00,000, then the projected revenue for financial year 20182019 shall be:
(a) ₹ 11,36,000
(b) ₹ 11,85,235
(c) ₹ 10,24,000
(d) ₹ 10,39,680
Answer:
(b) ₹ 11,85,235

Question 104.
State the “Base Year” and “Projected Growth Rate” for the purpose of calculating the compensation amount payable by the Centre on account of Revenue loss to the states as specified under the GST (Compensation to States) Act, 2017:
(a) Financial Year 2014-15, @ 14%
(b) Financial Year 2015-16, @ 14%
(c) Financial Year 2016-17, @ 14%
(d) Financial Year 2017-18, @ 14%
Answer:
(b) Financial Year 2015-16, @ 14%

Question 105.
The compensation payable under GST (Compensation to States) Act, 2017 shall be finally calculated for every financial year, after the receipt of final revenue figures. These final revenue figures should have been audited by
(a) The Chartered Accountant
(b) The Chartered Accountant in Practice for at least 20 years
(c) Central Government
(d) Comptroller and Auditor General of India
Answer:
(d) Comptroller and Auditor General of India

Question 106.
If any excess amount has been released as compensation to a state in any financial year during the transition period, then as per Proviso to section 7(2) of GST (Compensation to States) Act, 2017, the excess amount so released:
(a) Shall be returned by that state immediately
(b) Shall be returned by that state within one month
(c) Shall be returned by that state within months
(d) Shall be adjusted against the Compensation amount payable to such state in the subsequently financial year
Answer:
(d) Shall be adjusted against the Compensation amount payable to such state in the subsequently financial year

Question 107.
The total compensation payable in any financial year shall be:
(a) The Projected Revenue
(b) The actual Revenue collected
(c) Difference between the Projected Revenue and Actual Revenue collected
(d) None of the above
Answer:
(c) Difference between the Projected Revenue and Actual Revenue collected

Question 108.
What shall be the actual revenue collected by a state in any financial year during the transition period?
(a) The actual revenue from state tax collected by the state, net of refunds given by the said state under Chapters XI & XX of the SGST Acts.
(b) The Integrated goods and services tax apportioned to that state
(c) Any collection of taxes on account of the taxes levied by the respective state under the Acts specified in section 5(4), net of refunds of such taxes.
(d) All of the above
Answer:
(d) All of the above

Question 109.
As per section 7(6) of GST (Compensation to States) Act, 2017, where no compensation is due to be released in any financial year, and in case any excess amount has released to a state in the previous year, this amount:
(a) Shall be refunded by the state to that state where less compensation has been paid
(b) Shall be refunded by the state to Central Government
(c) Shall be foregone by the Centre
(d) Shall be transferred by that state in “Welfare Fund” of the state.
Answer:
(b) Shall be refunded by the state to Central Government

Question 110.
As per section8of GST (Compensation to States) Act, 2017, which of the following supplies of goods or services or both would be subject to Cess?
(a) Supplies under section 9 of the CGST Act
( b) Supplies under section 5 of the IGST Act
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Question 111.
The period, as specified in section 8( 1) of GST (Compensation to States) Act, 2017, during which Cess will be levied on supplies of goods and services or both is:
(a) 4 Years
(b) 5 Years
(c) 6 Years
(d) 7 Years
Answer:
(b) 5 Years

Question 112.
Total proceeds of the cess levied under section 8 of GST (Compensation to States) Act, 2017 as per section 10 shall be credited to a fund which is known as ……….. and shall form part of the public account of India to be utilized for the purposes specified and shall be a non lapsable Fund.
(a) GST Cess Fund
(b) GST Cess Compensation Fund
(c) GST Compensation Fund
(d) GST Fund
Answer:
(c) GST Compensation Fund

Question 113.
What is the objective behind the levy of Cess through GST (Compensation to States) Act, 2017?
(a) To generate surplus resources to cater the welfare needs of Nation
(b) To discourage the use of Sin and Luxury Goods and Services
(c) To provide compensation to the Centre for loss of revenue arising due to GST
(d) To provide compensation to the state for loss of revenue arising due to GST
Answer:
(d) To provide compensation to the state for loss of revenue arising due to GST

Question 114
….. are liable to pay Cess on supplies of goods or services or both GST (Compensation to States) Act, 2017
(a) All taxable persons
(b) Only Composition Taxable Person
(c) All Taxable Persons except Composition Taxable Person
(d) Only regular Taxable Persons
Answer:
(d) Only regular Taxable Persons

Question 115.
As per Proviso to section 14(1) of GST (Compensation to States) Act, 2017, what is the maximum period of exercising the power of issuing general or special order for removal of difficulties?
(a) 1 Year
(b) 2 Years
(c) 3 Years
(d) 4 Years
Answer:
(c) 3 Years

Question 116.
Which Act needs to be referred for compliances under GST (Compensation to States) Act, 2017, by taxable person in relation to Returns, payments and refunds?
(a) CGST Act and Rules made thereunder
(b) SGST Act and Rules made thereunder
(c) IGST Act and Rules made thereunder
(d) None of the above
Answer:
(a) CGST Act and Rules made thereunder

Question 117.
As per section 1(5) of GST (Compensation to States) Act, 2017, the accounts of the GST Compensation fund, as certified by CAG or any appointed person in this behalf together with the audit report thereon shall be laid before:
(a) Lok Sabha
(b) Rajya Sabha
(c) Before each House of Parliament
(d) Central Government
Answer:
(c) Before each House of Parliament

Question 118.
What is the maximum rate at which GST Compensation Cess may be collected on Pan Masala, as per Schedule to GST (Compensation to States) Act, 2017?
(a) 28%
(b) 100%
(c) 135%
(d) 150%
Answer:
(c) 135%

Question 119.
The maximum rate of Cess on “Aerated Waters” is
(a) 15%
(b) 30%
(c) 50%
(d) 100%
Answer:
(a) 15%

Question 120.
If the Projected Revenue for any year calculated in accordance with section 6 is ₹ 1,00,000, for calculating the Projected Revenue that could be earned till the end of the period of 10 months for the purpose of section 7(4) shall be
(a) ₹ 83,333
(b) ₹ 90,000
(c) ₹ 80,000
(d) ₹ 1,00,000
Answer:
(a) ₹ 83,333
₹1,00,000 × \(\frac{10}{12}\) =₹ 83,333

Question 121.
For the purpose of calculating the compensation payable to the states under the GST (Compensation to States) Act, 2017, the Base Year for reckoning the revenue is:
(a) 31-3-2014
(b) 31-3-2015
(c) 31-3-2016
(d) 31-3-2017
Answer:
(c) 31-3-2016

Question 122.
The terms like tariff item, heading, sub-heading, etc. used in Schedule to GST (Compensation to States) Act, 2017 shall mean:
(a) As defined in GST Compensation Act
(b) As defined in CGST Act
(c) As given in first schedule to Customs Tariff Act, 1975
(d) None of the above
Answer:
(c) As given in first schedule to Customs Tariff Act, 1975

Question 123.
The power to remove difficulties is given in …….. of GST (Compensation to States) Act, 2017.
(a) Section 12
(b) Section 13
(c) Section 14
(d) Section 15
Answer:
(c) Section 14

Question 124.
As per section 7(2) of GST (Compensation to States) Act, 2017, the compensation payable to a state shall be provisionally calculated and released at the end of every ………… period.
(a) One month
(b) Two months
(c) Three months
(d) Four months
Answer:
(b) Two months

Question 125.
As per section 3 of GST (Compensation to States) Act, 2017, the Projected nominal growth rate of revenue subsumed for a state during the transition period shall be:
(a) 8%
(b) 10%
(c) 12%
(d) 14%
Answer:
(d) 14%

Question 126.
The proceeds of the Cess and such other amounts as being recommended by the GST Council shall be credited to a non-Iapsable fund known as :
(a) GST Compensation Fund
(b) GST Cess Fund
(c) GST Welfare fund
( d) None of the above
Answer:
(a) GST Compensation Fund

Question 127.
The GST (compensation to States) Amendment Act, 2018 has inserted Motor Vehicles for the transport of not more than 13 persons in schedule. The rate of cess that may be collected on this item is:
(a) 20%
(b) 20% ad valorem
(c) 25%
(d) 25%
Answer:
(d) 25%

Question 128.
Considering Section 6 of GST (Compensation to states) Act, if the base year revenue for 2015-16 for a concerned state, calculated as per Section 5 is ₹ 8,000, then the projected revenue for financial year 2018-19 shall he:
(a) 8000 (1.14)2
(b) 8,000 (1.14)3
(c) 8,000 (1.15)2
(d) 8,000 (1.15)3
Answer:
(b) 8,000 (1.14)3

Question 129.
If the projected revenue for any year calculated in accordance with Section 6 is ₹ 10,000, then for calculating the projected revenue that could be earned till the end of period of 10 months for the purpose of Sec. 7(4) shall be:
(a) 10,000 (1.14)2 (5/6)
(b) 10,000 (1.15)2 (5/6)
(c) 10,000(5/6)
(d) None of these.
Answer:
(c) 10,000(5/6)

Question 130.
The accounts relating to GST Compensation Fund under Section 10 of GST Compensation Act shall be audited by:
(a) Central Government
(b) CAG of India
(c) ICAI
(d) Principal secretary to Govt, of India
Answer:
(b) CAG of India

Question 131.
The audit expenditure incurred for audit of GST Compensation Fund is payable by:
(a) CAG
(b) ICAI
(c) Central Government
(d) None of the above
Answer:
(c) Central Government

Question 132.
The certified accounts of the GST compensation fund together with audit Report Shall be laid before:-
(a) Central Government
(b) Either of the House of Parliament
(c) Each house of Parliament
(d) Upper House only
Answer:
(c) Each house of Parliament

Question 133.
As per Section 10(3) of the GST (Compensation to states) Act, ……… of the amount remaining unutilized in the fund at the end of transition period shall be transferred to the considered fund of India as the share of centre.
(a) 25%
(b) 40%
(c) 50%
(d) 70%
Answer:
(c) 50%

Question 134.
As per Section 2(1)(r) of GST (Compensation to states) Act, transition period means a period of ……….. years from the transition date.
(a) Three years
(b) Four year
(c) Five year
(d) Six year
Answer:
(d) Six year