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

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