Going through the Input Tax Credit, Computation of GST Liability & Job Work – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.
Input Tax Credit, Computation of GST Liability & Job Work – Tax Laws CS Executive MCQs
Question 1.
Taxes paid on inward supply of is/are called as Input Taxes.
(a) Inputs
(b) Inputs and Capital Goods
(c) Inputs, Capital Goods and Services
(d) Capital Goods and Services
Answer:
(c) Inputs, Capital Goods and Services
Question 1A.
Input tax credit is available in respect of ………..
(a) goods used for personal consumption
(b) free samples
(c) services on which tax has been paid under composition levy
(d) None of the above
Answer:
(d) None of the above
Question 1B.
Which one of the following is a condition as per section 16(2) to avail ITC
(a) Possession of tax invoice
(b) Receipt of goods/services and Payment of tax to the government
(c) Filing of valid return
(d) All of the above
Answer:
(d) All of the above
Question 2.
Taxes paid under Reverse Charge Mech¬anism are:
(a) Not a part of input taxes
(b) Also a part of input taxes
(c) Part of input taxes if paid under section 10
(d) None of the above
Answer:
(b) Also a part of input taxes
Question 3.
Section 2(62) of CGST Act, 2017 specify input tax in relation to a registered person, means the Central Tax. State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both made to him but does not include:
(a) Integrated goods and service tax charged on import of goods
(b) Tax under the provisions of section 9(3) and 9(4)
(c) Tax paid under composition levy
(d) Tax under Union Territory Goods & Services Tax Act.
Answer:
(c) Tax paid under composition levy
Question 4.
A registered taxable person is eligible to obtain Input Tax Credit (ITC) as per section 16 of the CGST Act, on fulfilling of certain conditions which consists of that such person should:
(i) Be in possession of tax invoice
(ii) Have received the goods
(iii) Supplier have not paid the tax charged
(iv) Supplier have furnished the return u/s 39
(a) (i), (ii) & (iv)
(b) (i), (iii) & (iv)
(c) (i), (ii) & (iii)
(d) (i), (ii), (iii) & (iv)
Answer:
(a) (i), (ii) & (iv)
Question 5.
When the taxes paid on inputs are available as a set off against the taxes payable on outward taxable supplies, then it is called as …….
(a) Input Tax Credit
(b) Input Tax Adjustment
(c) Input Tax Benefit
(d) Blocked Credit
Answer:
(a) Input Tax Credit
Question 6.
Input Tax in relation to ………..person, means ……… charged on any supply of goods or services or both made to him.
(a) Registered; Central Tax or State Tax
(b) Unregistered; Central Tax or State Tax
(c) Registered; Central Tax or State Tax or Integrated Tax or Union Territory Tax
(d) Unregistered; Central Tax or State Tax or Integrated Tax or Union Territory Tax
Answer:
(c) Registered; Central Tax or State Tax or Integrated Tax or Union Territory Tax
Question 7.
To avail input tax credit, which of the following factors is not relevant
(a) Tax Invoice
(b) Furnishing of return by supplier
(c) Receipt of goods and services
(d) Payment by buyer (Recipient) for supply received
Answer:
(d) Payment by buyer (Recipient) for supply received
Question 8.
The term “Used in the course or furtherance of business” means
(a) It should be directly co-related to output supply
(b) It is planned to use in the course of business
(c) It is used or intended to be used in the course of business
(d) None of the above
Answer:
(c) It is used or intended to be used in the course of business
Question 9.
The amount of ITC shall be ………..
(a) Credited to the Electronic Cash Ledger
(b) Credited to the Electronic Credit Ledger
(c) Debited to the Electronic Cash Ledger
(d) Debited to the Electronic Credit Ledger
Answer:
(b) Credited to the Electronic Credit Ledger
Question 10.
As per section 16(1) of CGST Act, 2017, ITC is available:
I. Only to registered person
II. Only to unregistered person
III. Both registered and unregistered person
IV. Supplies are used in the course or furtherance of business
V. Supplies are intended to he used in the course or furtherance of business
VI. No condition of use of supply in business
Which of the following combination is correct
(a) I.IV&V
(b) II.IV&V
(c) III, IV, V & VI
(d) I, IV & VI
Answer:
(a) I.IV&V
Question 11.
If the goods are received in lots/instalment,
(a) 50% of ITC can be taken on receipt of 1 st instalment and balance 50% on receipt of last instalment
(b) ITC can be availed upon receipt of last instalment
(c) 100% ITC can be taken on receipt of 1st Instalment
(d) Proportionate ITC can be availed on receipt of each lot/instalment
Answer:
(b) ITC can be availed upon receipt of last instalment
Question 12.
As per section 16(2) of CGST Act, 2017, the registered person is entitled to the credit of any Input Tax Credit on fulfilment of conditions:
I. Possession of Tax Invoice or Debit Note
II. Receipt of goods and services
III. Payment of tax to the Government
IV. Filing of valid return under section 39
V. Filing of valid return under section 44
VI. Payment of invoice by recipient to supplier
(a) I & II
(b) I,II, III & IV
(c) I, II, III & V
(d) I, III, V & VI
Answer:
(b) I,II, III & IV
Question 12A.
Mr. Prakash has received the goods in 2 lots in respect of a single invoice. Which of the following is in accordance with the first proviso to section 16(2)?
(a) 100% ITC can be taken on receipt of 1st lot.
(b) 50% ITC can be taken on receipt of each lot
(c) 100% ITC can be availed upon receipt of last instalment.
(d) None of the above
Answer:
(c) 100% ITC can be availed upon receipt of last instalment.
Question 12B.
What is the rate of interest as per Rule 37(3) applicable in case of reversal of ITC in case of non-payment of consideration within 180 days.
(a) 5% p.a.
(b) 10% p.a.
(c) 12% p.a.
(d) 18% p.a.
Answer:
(d) 18% p.a.
Question 13.
As per Rule 36(4) of CGST Rules, w.e.f. 1-1-2020 the ITC in respect of invoices or debit notes, the details of which have not been uploaded by suppliers in GSTR-1 and not reflected in GSTR 2A of the recipient, shall not exceed of the eligible credit available in respect of uploaded invoices.
(a) 25%
(b) 20%
(c) 15%
(d) 10%
Answer:
(d) 10%
Question 14.
When the invoice/debit note has been uploaded by the supplier in GSTR-1, the amount of ITC, as per Rule 36(4), to be claimed by the recipient shall be ………..
(a) Full
(b) 50%
(c) 25%
(d) 20%
Answer:
(a) Full
Question 15.
Liberty limited purchases an aircraft for the purpose of transaction of goods manufactured by it. ITC shall be
(a) Allowed
(b) Blocked under Section 17(5)
(c) Allowed to the extent of 50%
(d) Blocked under section 17(5) to the extent of 50%
Answer:
(a) Allowed
Question 16.
Which one of the following is not an exception to section 17(5)(a).
(a) Purchase of car for running as taxi.
(b) Purchase of car by dealer for resale.
(c) Bus purchased by a company for transportation of employees from their residence to office and back.
(d) Purchase of Car (Capacity 5 persons) for commutation of employees from their residence to factory & back.
Answer:
(d) Purchase of Car (Capacity 5 persons) for commutation of employees from their residence to factory & back.
Question 17.
Availability of Input Tax Credit in special cases as per section 18(1) of the CGST Act, 2017 is available where a registered person is having tax invoice relating to such supply issued not after expiry of from the date of issue
of tax invoice.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 9 months
Answer:
(c) 1 year
Question 18.
As per Rule 36(1) of CGST Rules, 2017, which of the following documents will not suffice the condition of possession of invoice for availing ITC
(a) Invoice or debit note issued by the supplier of goods or services or both
(b) Invoice raised by recipient in case of inward supplies from registered person
(c) Bill of entry prescribed under the Customs Act
(d) An input service distributor’s or credit note issued by Input Service Distributor for distribution of credit
Answer:
(b) Invoice raised by recipient in case of inward supplies from registered person
Question 19.
One of the essential conditions for availing ITC is that the tax should have actually been paid to the Government on the goods or services or both for which ITC is being taken. This payment can be done by the supplier by
(a) Making payment through cash
(b) Making payment through utilization of ITC
(c) Either by (a) or (b) or both
(d) None of the above
Answer:
(c) Either by (a) or (b) or both
Question 20.
Filing of valid return is one of the essential condition for availing ITC. This return is
(a) Under section 37
(b) Under section 38
(c) Under section 39
(d) Under section 44
Answer:
(c) Under section 39
Question 21.
Which of the following statement is true for a Composition Tax Payer
(a) A Composition Tax Payer can avail only 50% of ITC on Capital Goods
(b) A Composite Tax Payer can avail 100% of ITC on inputs
(c) ITC is not available on inward sup-plies made by a Composition Tax Payer
(d) None of the above
Answer:
(c) ITC is not available on inward sup-plies made by a Composition Tax Payer
Question 22.
As per the first Proviso to section 16(2), where the recipient receives the goods and / or services in instalments, the registered person ….
(a) Shall NOT be entitled to take ITC
(b) Shall be entitled to take ITC upon receipt of FIRST Lot
(c) Shall be entitled to take ITC upon receipt of LAST Lot
(d) Shall be entitled to take ITC immediately on receipt of FIRST Lot provided the invoice is issued by the supplier for all the goods
Answer:
(c) Shall be entitled to take ITC upon receipt of LAST Lot
Question 23.
As per second proviso to section 16(2) of CGST Act, 2017, the time limit to pay the value of supply with taxes to avail the ITC is:
(a) 3 months
(b) 6 months
(c) 180 days
(d) Till the date of filing of Annual Return
Answer:
(c) 180 days
Question 23A.
As per section 49(8) of CGST Act, 2017, which of the following shall be first in the order of discharge of liability
(a) Previous tax period
(b) Current tax period
(c) Demand raised under sections 73 and 74
(d) None of the above
Answer:
(a) Previous tax period
Question 23B.
The liability of taxable person, as reflected in the Electronic Liability Register can be paid through
(a) Debit in Electronic Debit Ledger
(b) Credit in Electronic Debit Ledger
(c) Debit in Electronic Cash Ledger
(d) Both (a) and (c)
Answer:
(d) Both (a) and (c)
Question 24.
Where the registered person has claimed depreciation on the …….. of the Capital Goods, ITC shall not be allowed.
(a) Cost
(b) Tax component of cost
(c) Both (a) & (b)
(d) None of the above
Answer:
(b) Tax component of cost
Question 25.
ABC Limited purchased a machine for ₹ 10,00,000 plus GST @ 18%. It has been capitalized in the books at ₹ 11,80,000 (i.e. inclusive of GST paid). Accordingly, the depreciation was claimed @ 15% on ₹ 11,80,000 under the Income-tax Act. What is the amount of ITC to be allowed
(a) ₹ 1,80,000
(b) 15% of₹ 1,80,000
(c) 85% of₹ 1,80,000
(d) ITC will not be allowed
Answer:
(d) ITC will not be allowed
Question 26.
A manufacturer takes deduction of depreciation on the GST component of the cost of capital goods as per Income-tax Act, 1960. The manufacturer
(a) Can avail only 25% of the said tax component as ITC
(b) Can avail only 50% of the said tax component as ITC
(c) Can avail only 100% of the said tax component as ITC
(d) Cannot avail ITC on the said tax component
Answer:
(d) Cannot avail ITC on the said tax component
Question 27.
If debit note is issued in respect of an invoice subsequently, in the next financial year, will be relevant in determining the time limit.
(a) Date of invoice
(b) Date of debit note
(c) Date of debit note, if issued within 6 months
(d) Time limit is one year after the issue of debit note
Answer:
(a) Date of invoice
Question 28.
If the payment is not made by the recipient to the supplier within …….. from the date of invoice, then the taxpayer needs to reverse the credit already taken.
(a) 45 Days
(b) 90 Days
(c) 180 Days
(d) 200 Days
Answer:
(c) 180 Days
Question 29.
What is the time limit for reclaiming ITC reversed due to non-payment within 180 days
(a) 3 months
(b) 1 financial year
(c) 2 financial years
(d) No time limit, as section 16(4) is not applicable in this case
Answer:
(d) No time limit, as section 16(4) is not applicable in this case
Question 30.
Input Tax Credit cannot be availed after the expiry of ……….from the date of invoice of tax invoice of supply.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 2 years
Answer:
(c) 1 year
Question 31.
Which of the following inward supplies are not eligible for ITC in case of a company manufacturing taxable goods
(a) Food and Beverages
(b) Outdoor Catering
(c) Health Services
(d) All of the above
Answer:
(d) All of the above
Question 32.
Mukesh purchased goods for the business, in respect of which ITC admissible is ₹ 36,000. 20% of such goods have been used for personal purposes, 60% sold and 20% goods are still lying in godown. Considering section 17(1) of CGST Act, ITC will be available for
(a) ₹ 36,000
(b) 2096 of ₹ 36,000
(c) 6096 of ₹ 36,000
(d) 8096 of ₹ 36,000
Answer:
(d) 8096 of ₹ 36,000
Question 33.
The turnover of taxable and exempted goods are ₹ 6,00,000 and ₹ 4,00,000 re-spectively. The common inputs on which GST paid is ₹ 1,08,000. The common inputs on which GST paid is ₹ 1,08,000. The eligible ITC on common input as per section 17(2) is:
(a) ₹ 1,08,000
(b) 6096 of ₹ 1,08,000
(c) 4096 of ₹ 1,08,000
(d) None of the above
Answer:
(b) 6096 of ₹ 1,08,000
Question 34.
What is the time limit for availing the ITC, as given in section 16(4)
(a) Due date of furnishing of return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains
(b) Furnishing of the relevant Annual Return
(c) Earlier of (a) or (b)
(d) Later of (a) or (b)
Answer:
(c) Earlier of (a) or (b)
Question 35.
ABC Ltd. is engaged in manufacture of electrical appliances supply following details relating to GST paid on various items by them: The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be
(a) ₹ 2,00,000
(b) ₹ 2,12,500
| Item | GST Paid (₹) |
| Electrical Transformers utilized in the manufacturing process | 1,20,000 |
| Trucks used for transporting materials | 80,000 |
| Cakes and Pastries for consumption within factory | 12,500 |
The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be
(a) ₹ 2,00,000
(b) ₹ 2,12,500
(c) ₹ 52,500
(d) ₹ 1,00,000
Answer:
(a) ₹ 2,00,000
Question 36.
As per section 17(2) of CGST Act, 2017, the ITC is not available in respect of ………..
(a) Taxable Supplies
(b) Zero-rated Supplies
(c) Exempted Supplies
(d) All of the above
Answer:
(c) Exempted Supplies
Question 37.
For banking companies using inputs and input services partly for taxable supplies and partly for exempt supplies, which of the following statement is true?
(a) ITC shall be compulsorily restricted to credit attributable to taxable supplies including zero rates supplies
(b) 50% of eligible ITC on inputs, Capital goods and Input service shall be mandatorily taken in a month and rest shall lapse
(c) Either (a) or (b), at the option of banking company
(d) None of the above
Answer:
(c) Either (a) or (b), at the option of banking company
Question 38.
Determine the amount of ITC, available to ABC Bank as per section 17(4)
| ITC on inward supply (Same PAN) | ₹ 3,00,000 |
| ITC on inward supply (Different PAN) | ₹ 14,00,000 |
(a) ₹ 10,00,000
(b) ₹ 15,50,000
(c) ₹ 17,00,000
(d) None of the above
Answer:
(a) ₹ 10,00,000
Question 39.
Section 17(5) of CGST Act, 2017 deals with
(a) Available Credit
(b) Restricted Credit
(c) Blocked Credit
(d) Deemed Credit
Answer:
(c) Blocked Credit
ITC = (100% of ₹ 3 Lakh) + (50% of ₹ 14 Lakh) = ₹ 10 Lakh
Question 40.
The Input Tax credit (ITC) is being credited to of a person which may be used by the person to pay his output tax liability.
(a) Electronic Cash Ledger
(b) Electronic Credit Ledger
(c) Electronic Tax Ledger
(d) Electronic Tax Credit Ledger
Answer:
(b) Electronic Credit Ledger
Question 41.
Which one of the following is the case of Blocked Credit?
(a) Goods destroyed due to natural calamities
(b) Goods destroyed due to fire
(c) Goods lost due to theft
(d) All of the above
Answer:
(d) All of the above
Question 42.
As per Explanation to section 16(2)(b) of CGST Act, 2017, w.e.f. 1-2-2019, in case of “Bill To Ship To” situation, the ITC is allowed on deemed receipt basis. It may be
(a) In respect of services only
(b) In case of goods only
(c) In case of both goods and services
(d) Not allowed w.e.f. 1-2-2019
Answer:
(c) In case of both goods and services
Question 43.
Considering the amendments made by CGST (Amendment) Act, 2018, in which of the following case, the ITC is blocked. The motor vehicle has been used for:
(a) Making further taxable supply of such motor vehicles
(b) Making taxable supply for transportation of passenger
(c) Making taxable supply of imparting training on driving such motor vehicle
(d) None of the above
Answer:
(d) None of the above
Question 44.
As per section 17(5), ITC is blocked when motor vehicle is used for transportation of persons with seating capacity (including the driver).
(a) Less than 13 persons
(b) Up to 13 persons
(c) Less than 15 persons
(d) Up to 15 persons
Answer:
(b) Up to 13 persons
Question 45.
In which of the following case, the ITC is not blocked?
(a) Car purchased by manufacturing company for official use of its employees
(b) Car purchased by a company for commutation of CEO from residence to factory and back
(c) Car purchased by a car driving school for exclusive use by the officers for commutation purposes and not for imparting driving skills.
(d) Truck purchased by a company for transportation of its finished goods
Answer:
(d) Truck purchased by a company for transportation of its finished goods
Question 46.
ITC on aircraft purchased by an aviation school providing training on flying aircraft is
(a) Allowed
(b) Allowed but 80% only
(c) Allowed but 50% only
(d) Not allowed
Answer:
(a) Allowed
Question 47.
ITC on general insurance taken on car used by employees of a manufacturing company for official purposes is
(a) Allowed (100%)
(b) Allowed (80%)
(c) Allowed (50%)
(d) Not allowed (i.e. Blocked credit)
Answer:
(d) Not allowed (i.e. Blocked credit)
Question 48.
A company has paid for membership of a health club Centre for employees. The related ITC is
(a) Allowed, if provided by employer to its employees under statutory obligation
(b) Allowed, if it is provided by others working in the same industry
(c) Not allowed, in case it is provided under voluntary move
(d) Not Allowed, in any case
Answer:
(a) Allowed, if provided by employer to its employees under statutory obligation
Question 49.
In which of the following case, the ITC is blocked under section 17(5)?
(a) Tax payable due to evasion of taxes
(b) Detention, seizure and release of goods and conveyances in transit
(c) Confiscation of goods or conveyances and levy of penalty
(d) All of the above
Answer:
(d) All of the above
Question 50.
In which of the following case, ITC is not blocked?
(a) Tax paid on inputs by Composition Dealer
(b) Tax paid on inputs by NRTP
(c) Tax paid on goods/services used for personal purposes
(d) None of the above
Answer:
(d) None of the above
Question 51.
As per section 18(1)(a) of CGST Act, 2017, when person already engaged in business before GST now requires mandatory registration, ITC is
(a) Allowed on Inputs held in stock
(b) Allowed on Capital Goods only
(c) Allowed on both Input and capital goods
(d) None of the above
Answer:
(a) Allowed on Inputs held in stock
Question 52.
As per section 18(2), in case of new registration, the registered person shall not be entitled to take ITC in respect of any supply of good/services after the expiry of from the date of issue of tax invoice relating to such supply.
(a) 6 months
(b) 1 Year
(c) 18 Months
(d) 180 days
Answer:
(b) 1 Year
Question 53.
Raj & Co., applied for voluntary registration under CGST Act, 2017 on 5th July, 2017 and the registration was granted on 15th July, 2017. Raj & Co., was having the stock available against the invoices for a period of 3 months old. Raj & Co., shall be eligible for input tax credit on such stock as held as on :
(a) 30th June, 2017
(b) 5th July, 2017
(c) 15th July, 2017
(d) 14th July, 2017
Answer:
(d) 14th July, 2017
Question 54.
As regards availability of credit in special circumstances, given in section 18, ITC on Capital goods is available in case of:
(a) Compulsory registration under section 18(1)(a)
(b) Voluntary registration under section 18(1)(b)
(c) Shifting from Composition scheme to Regular scheme under section 18(1)
(d) None of the above
Answer:
(c) Shifting from Composition scheme to Regular scheme under section 18(1)
Question 55.
Where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of input tax on capital goods subject to reduction by
(a) 5% for use for every completed quarter
(b) 5% for use for every quarter or part
(c) 8% for use for every quarter or part
(d) 5% for use for every year
Answer:
(b) 5% for use for every quarter or part
Question 56.
Capital goods were brought in the factory on 1-10-2017 worth ₹ 10,00,000 on which IGST of 18% was paid. These capital goods were sold at ₹ 7,80,000 on 2-2-2019. The ITC to be reversed is
(a) Nil
(b) ₹ 1,26,000
(c) ₹ 1,40,000
(d) None of the above
Answer:
(c) ₹ 1,40,000
IGST paid = 18% of ₹ 10 Lakh = ₹ 1,80,000
No. of quarters for the period of use= 2(2017-2018) + 4 (2018-2019) = 6 Quarters ITC after deduction @ 5% per quarter = 1,80,000 – (1,80,000 × 5% × 6 Quarters) = ₹ 1,26,000
Duty Leviable on Transaction Value = (7,80,000 × 18%) = ₹ 1,40,400 ITC to be reversed = Higher of ₹ 1,26,000 & ₹ 1,40,400 = × 1,40,400
Question 57.
Calculate the amount of ITC available from the following information:
(a) ₹ 3,00,000
(b) ₹ 4,80,000
(c) ₹ 4,10,000
(d) ₹ 3,80,000
Answer:
(d) ₹ 3,80,000
ITC = 3,00,000 + 1,80,000 – (70,000 + 30,000) = ₹ 3,80,000 70. ITC = 24,000 + 2,000 + 4,500 + 3,000 = ₹ 33,500
Question 58.
X Limited purchased goods on 20-2-2018. A debit note was issued in respect of the same invoice on 7-4-2018. The last date for claiming ITC will be:
I. Due date of furnishing of return under section 39 for the month of September following financial year 2017- 18
II. Due date of furnishing of return under section 39 for the month of September following financial year 2018- 19
III. Furnishing of the Annual return for financial year 2017-18
IV. Furnishing of the Annual return for financial year 2018-19
(a) Earlier of I & III
(b) Later of I & III
(c) Earlier of II & IV
(d) Later of II & IV
Answer:
(a) Earlier of I & III
Question 59.
When the goods or services are used by the registered person partly effecting taxable supplies including ‘Zero Rated supplies’ and partly for effecting ‘Exempt Supplies’, the amount of credit shall be available
(a) To the extent as it is attributable to the taxable supply/zero rated supply
(b) To the extent as it is attributable to the exempt supply
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(a) To the extent as it is attributable to the taxable supply/zero rated supply
Question 60.
Blocked credit means, the inward supply of goods or services on which ITC
(a) Shall be allowed fully
(b) Shall be allowed provisionally
(c) Shall not be allowed provisionally
(d) Shall not be allowed forever
Answer:
(d) Shall not be allowed forever
Question 61.
In which of the following cases, ITC would be available?
(a) Goods lost and destroyed
(b) Goods for business purpose
(c) Goods disposed of by way of gift
(d) Goods written off
Answer:
(d) Goods written off
Question 62.
Section 17(4) allows a banking company or financial institution to avail:
(a) 50% of ITC (Different PAN)
(b) 100% of ITC (Same PAN)
(c) Any of (a) or (b), at the option of taxpayer
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)
Question 63.
ITC on capital goods and inputs can be availed in instalments.
(a) One
(b) Six
(c) Twelve
(d) Thirty five
Answer:
(a) One
Question 64.
Zebra, a supplier of goods located at Jaipur paid GST under regular scheme both Inter-State and Intra-State. The supplies are chargeable to GST @ 18%. The outward taxable supply in the month
of February, 2019 made by him of Intra-State ₹ 12,00,000 and Inter-State ₹ 5,00,000. The total tax liability under GST Act on both these supplies shall be ……… if he is having the Opening Balance of ITC available of ₹ 45,000 each under CGST and SGST and of ₹ 55,000 under IGST.
(a) ₹ 3,06,000
( b) ₹ 2,16,000
(c) ₹ 1,61,000
(d) ₹ 1,71,000
Answer:
(c) ₹ 1,61,000
Question 65.
Which one of the following is a tax paying document in section 16(2)?
(a) Bill of entry
(b) Acknowledged copy of tax paid to Government
(c) Transportation Bill
(d) All of the above
Answer:
(a) Bill of entry
Question 66.
The proportionate credit for capital goods is allowed
(a) For business and Non-business purpose
(b) For business or Non-business purpose
(c) Both of the above
(d) None of the above
Answer:
(a) For business and Non-business purpose
Question 67.
The capital goods are supplied as scrap and accordingly taxable person shall pay on the transaction value determined under section 15 of CGST Act, 2017. Which of the following is/are covered under this provision?
(a) Refractory bricks
(b) Moulds and dies
(c) Jigs and Fixtures
(d) All of the above
Answer:
(d) All of the above
Question 68.
Which of the following expenditure is eligible for Input Tax Credit?
(a) Membership Fee of a Club
(b) Home Travel Concession extended to employees
(c) Goods given as free gifts
(d) None of the above
Answer:
(d) None of the above
Question 69.
The date of invoice for supply of goods is 24-10-2017 for which ITC is available. The annual return has been furnished on 5th October, 2018. The time limit for availing ITC is
(a) Date of filing return under section 44 i.e. 5th October, 2018
(b) Due date of filing return for the month of September 2018 (i.e. 20th October, 2018)
(c) Earlier of (a) and (b)
(d) Later of (a) and (b)
Answer:
(c) Earlier of (a) and (b)
Question 70.
Determine the amount of ITC admissible to XYZ Limited in respect of following:
| Amount (₹) | ||
| (a) | Inputs used for manufacture of the final product | 24,000 |
| (b) | Inputs used in trial runs | 2,000 |
| (c) | Packing materials used in a factory | 4,500 |
| (d) | Goods destroyed due to fire | 1,000 |
| (e) | Goods destroyed due to natural calamities | 2,400 |
| (f) | Goods used for providing services in warranty period | 3,000 |
(a) ₹ 36,900
(b) ₹ 35,900
(c) ₹ 33,500
(d) ₹ 30,500
Answer:
(c) ₹ 33,500
Question 71.
Mr. Kamal becomes liable to registration on 25th October, 2018. Accordingly, he has applied for GST registration on 7th November, 2018. As per section 18(1)(a), Kamal shall be eligible for ITC on Inputs held in stock as on:
(a) 24th October
(b) 25th October
(c) 26th October
(d) 7th November
| Date when becomes liable for registration | 14-7-2018 |
| Applied for mandatory registration | 24-7-2018 |
Input tax in respect of following held on 31-7-2018:
|
62,000 14,000 24,000 |
Answer:
(a) 24th October
Question 72.
What is the amount of ITC available as per section 18(1)(a)?
(a) ₹ 1,00,000
(b) ₹ 76,000
(c) ₹ 38,000
(d) ₹ 86,000
Answer:
(b) ₹ 76,000
As per section 18(1)(a), when a person has applied for GST registration within 30 days from the date on which he becomes liable for registration, the ITC is available in respect of inputs in stock and inputs contained in semi-finished and finished goods in stock on the day preceding the date from which he becomes liable to pay under GST. ITC is not available on Capital Goods.
ITC = 62,000 + 14,000 = ₹ 76,000.
Question 73.
ITC on capital goods is allowed under section 18(1) in case of :
(a) Fresh registration under section 18(1)
(b) Voluntary registration under section 18(1)(6)
(c) Shifting from composition scheme to Regular scheme under section 18(1) (c)
(d) Both (a) and (b)
Answer:
(c) Shifting from composition scheme to Regular scheme under section 18(1) (c)
Question 74.
KMB limited is a registered person engaged in supply of goods which are exempt from tax. On 22-6-2018, exemption notification was rescinded and the goods become liable for tax. Determine the eligible credit in respect of capital goods purchased on 4-12-2017 for ₹ 7,00,000 plus GST @ 12%. These capital goods have been exclusively used in supplying exempted goods. What is the amount of ITC available on capital goods
(a) ₹ 84,000
(b) ₹ 71,400
(c) ₹ 12,600
(d) ₹ 7,00,000
Answer:
(b) ₹ 71,400
| Date of invoice of Capital Goods | 4-12-2017 |
| Date from which the exempt goods become taxable | 22-6-2018 |
| Number of quarters or part thereof from the date of invoice | 3 Quarters |
| IGST paid on capital goods (7,00,000 × 12%) | 84,000 |
| ITC to be reduced by 5% per quarter | 84,000 × 15% = ₹ 12,600 |
| Amount of ITC available in respect of capital goods | 71,400 |
Question 75.
When a person under regular scheme changes to composition scheme, he shall pay an amount by way of debit in the Electronic Credit Ledger or Electronic cash ledger, equivalent to credit of input tax in respect of inputs held in stock and inputs contained in semi-finished stock and on capital goods on the
(a) Day preceding the date of exercising such option
(b) Date of exercising such option
(c) Day after the date of exercising such option
(d) None of the above
Answer:
(a) Day preceding the date of exercising such option
Question 76.
Mr. A bought a machinery for ₹ 1,00,000 on which IGST was paid @ 18% (i.e. ₹ 18,000). After use of machine for 3 years, 7 months and 15 days. Mr. A decided to convert from normal to composition scheme. The amount to be reversed in this case is :
(a) ₹18,000
(b) ₹ 4,800
(c) ₹ 9,000
(d) ₹ 4,000
Answer:
(b) ₹ 4,800
Amount of ITC availed = ₹ 18,000
Assumed Life = 60 Months
Used Life = 43 months +15 days
Remaining Life =16 months (ignoring part)
Proportionate ITC = 18,000 \(\frac{16 \text { Months }}{60 \text { Months }}\) ₹ 4,800
Question 77.
When the capital goods are removed, on which ITC has been taken, the registered person shall pay an amount equal to ITC taken as reduced by
(a) 5% per completed quarter
(b) 5% per quarter or part there of
(c) 8% per completed quarter
(d) 5% per month
Answer:
(b) 5% per quarter or part there of
Question 78.
What is the assumed life of capital goods, while calculating reversal of ITC under section 18(4)?
(a) 3 Years or 36 months
(b) 4 Years or 48 months
(c) 5 Years or 60 months
(d) 65 months
Answer:
(c) 5 Years or 60 months
Question 79.
Mohan is registered under normal scheme in GST. He wants to shift from normal scheme to composition scheme. At the time of exercise of such option, the machine has already been used for 4 years, 8 months and 2 days. The ITC taken at the time of purchase of machine was ₹ 2,10,000. How much ITC needs to be reversed in respect of this machine (capital goods)?
(a) ₹ 2,10,000
(b) ₹ 1,05,000
(c) ₹ 21,000
(d) ₹ 10,500
Answer:
(d) ₹ 10,500
Remaining life = 3 months
Proportionate ITC = 2,10,000 × \(\frac{3 \text { Months }}{60 \text { Months }}\) = ₹10,500.
Question 80.
When a person under regular scheme changes to composition scheme, the ITC in respect of inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods (subject to deduction) is reversed. After reversing the ITC so calculated, the balance in the credit of Electronic Credit ledger will
(a) Be refunded
(b) Be adjusted for other business vertical
(c) Be lapsed
(d) None of the above
Answer:
(c) Be lapsed
Question 81.
Sanjay is registered under normal scheme in GST. He wants to shift from normal scheme to composition scheme. The following information is available:
(i) Balance in Electronic Credit Ledger: ₹ 1,00,000
(ii) ITC in respect of inputs contained in finished goods held in stock: ₹ 25,000
What is the amount of ITC to be reversed and the treatment of balance in Electronic Credit ledger, if any.
(a) ₹ 25,000 to be reversed and ₹ 1,00,000 to be refunded to the taxpayer
(b) ₹ 25,000 to be reversed and balance t 75,000 will be refunded
(c) ₹ 25,000 to be reversed and balance ₹ 75,000 will be lapsed
(d) After reversal, ₹ 75,000 to paid by taxpayer to government
Answer:
(c) ₹ 25,000 to be reversed and balance ₹ 75,000 will be lapsed
Question 82.
At the time of shifting from normal scheme to composition scheme, the following information is available:
(i) Balance in Electronic Credit Ledger : ₹ 30,000
(ii) ITC in respect of inputs contained in finished goods held in stock: ₹ 65,000
As per section 18(4) of CGST Act, 2017, which of the following is correct
(a) ₹ 65,000 to be reversed and ₹ 30,000 to be refunded
(b) ₹ 65,000 to be reversed and ₹ 30,000 will be lapsed
(c) ₹ 30,000 to be reversed and ₹ 35,000 to be lapsed
(d) ₹ 65,000 to be reversed by debit to Electronic Credit Ledger ( ₹ 30,000) and balance through E-Cash ledger ( ₹ 35,000)
Answer:
(d) ₹ 65,000 to be reversed by debit to Electronic Credit Ledger ( ₹ 30,000) and balance through E-Cash ledger ( ₹ 35,000)
Question 83.
Dev Anand becomes liable to pay tax on 15-7-2019 and has applied for registration on 19-7-2019. He obtained registration on 24-7-2019. As per section 18(I)(cf), Dev is entitled to take credit of input tax paid in respect of inputs held in stock, inputs contained in finished and semi-finished goods held in stock on:
(a) 14-7-2019
(b) 15-7-2019
(c) 16-7-2019
(d) 24-7-2019
Answer:
(a) 14-7-2019
Question 84.
Shashi acquired a capital asset on 1-11-2017, at a cost of ₹ 4,00,000 plus GST @ 18%. He used this machinery for production of exempt supplies only. On 15-5-2019, his supplies becomes taxable. As per section 18(1)(d) will be available as ITC on capital goods.
(a) ₹ 72,000
(b) ₹ 25,200
(c) ₹ 46,800
(d) ₹ 36,000
Answer:
(c) ₹ 46,800
ITC = 72,000 × [100 – (5 × 7)]% = 72,000 × 65% = ₹ 46,800
Question 85.
The ITC as self-assessed in the return of a registered person shall be credited to
(a) Electronic Liability Ledger
(b) Electronic Cash Ledger
(c) Electronic Credit Ledger
(d) Electronic Available Ledger
Answer:
(c) Electronic Credit Ledger
Question 86.
Job work means any treatment or process undertaken by a person on goods belonging to another registered person. The person who is providing goods or raw material is called as
(a) Job worker
(b) Principal
(c) Consignor
(d) Supplier
Answer:
(b) Principal
Question 86A.
Which type of items can be sent by the Principal to Job Worker for processing job work
(a) Capital goods only
(b) Inputs only
(c) Both capital and inputs
(d) None of the above
Answer:
(c) Both capital and inputs
Question 87.
As per section 143(1) of the CGST Act, 2017, a registered person may send inputs/capital goods under intimation and subject to certain to a job worker for job work.
(a) Without payment of tax
(b) With payment of tax (100%)
(c) With payment of tax (50%)
(d) With payment of tax (25%)
Answer:
(a) Without payment of tax
Question 87A.
What is the time limit within which the moulds and dies, jigs and fixtures, tools, etc. sent for job work must be brought back
(a) One year
(b) Two years
(c) Three years
(d) Need not be returned back
Answer:
(d) Need not be returned back
Question 87B.
For job work, the registered person may send any input or capital goods
(a) Without payment of tax
(b) With full payment of tax
(c) With payment of tax on capital goods only
(d) With payment of tax on inputs only
Answer:
(a) Without payment of tax
Question 88.
The ……… of CGST Rules, 2017 is related with the conditions and restrictions in respect of inputs and capital goods sent to the job-worker.
(a) Rule 43
(b) Rule 44
(c) Rule 45
(d) Rule 46
Answer:
(c) Rule 45
Question 89.
The details of challans in respect of goods dispatched to a job worker or received from a job worker during a quarter shall be included in FORM ………… furnished for that period.
(a) GST ITC-01
(b) GST ITC-02
(c) GST ITC-03
(d) GST ITC-04
Answer:
(d) GST ITC-04
Question 90.
When the goods are sent from one job worker to another job worker, the challan may be issued by
(a) Principal
(b) Principal or job worker sending the goods to another job worker.
(c) Principal or job worker who is receiving the goods from other job worker.
(d) Either of the Job-workers
Answer:
(b) Principal or job worker sending the goods to another job worker.
Question 91.
When goods are dispatched by the Principal to the job worker; the Principal is:
(a) Required to reverse the ITC availed on such inputs
(b) Not required to reverse the ITC availed on such inputs
(c) Required to reverse 50% of ITC availed on such inputs
(d) None of the above
Answer:
(c) Required to reverse 50% of ITC availed on such inputs
Question 92.
What is the time limit within which the inputs sent to a job worker are required to be returned to the Principal
(a) 6 Months
(b) 1 year
(c) 2 years
(d) 3 years
Answer:
(b) 1 year
Question 92A.
After CGST (Amendment) Act, 2018, the time period of one year (for inputs) and three years (for capital goods)be extended for a further period not exceeding and respectively.
(a) One year and one year
(b) One year and two years
(c) Two years and two years
(d) Two years and one year
Answer:
(b) One year and two years
Question 93.
As per CGST (Amendment) Act, 2018, the commissioner is empowered to extend the “One year period” applicable to inputs sent to a job worker, on sufficient cause being shown, for a further period:
(a) Of 6 months
(b) Of 1 year
(c) Not exceeding 1 year
(d) Not exceeding 3 years
Answer:
(c) Not exceeding 1 year
Question 94.
Which of the following items sent out to a job worker need not be brought within 3 years’ time
(a) Moulds & Dies
(b) Jigs & Fixtures
(c) Tools
(d) All of the above
Answer:
(d) All of the above
Question 95.
What is the time limit within which the Capital Goods sent to a job worker are required to be returned to the Principal
(a) 6 Months
(b) 1 year
(c) 2 years
(d) 3 years
Answer:
(d) 3 years
Question 96.
The responsibility for keeping proper accounts for the inputs or capital goods sent to job worker lies with:
(a) Principal only
(b) Job Worker only
(c) Both Principal & Job Worker
(d) Any of (a) & (b)
Answer:
(a) Principal only
Question 96A.
The section 143(5) in relation to waste and scrap is
(a) Overriding to section 143(1)
(b) Overriding to section 143(2)
(c) Both (a) and (b)
(d) Subject to section 143(1) and (2)
Answer:
(c) Both (a) and (b)
Question 96B.
Any waste or scrap generated during the job work may be supplied by
(a) Job worker on payment of tax
(b) Job worker on payment of tax if he is registered
(c) Principal, if the job worker is not registered
(d) Both (b) and (c)
Answer:
(b) Job worker on payment of tax if he is registered
Question 96C.
When goods are transferred for further processing by job worker-1 to job worker-2, the Challan may be issued by:
I. Principal
II. Job Worker-1
III. Job Worker-2
(a) I only
(b) I or II
(c) I or III
(d) II or III
Answer:
Question 97.
Any waste and scrap generated during the job work may be supplied by the job worker directly from his business on payment of tax if:
(a) Such Job Worker is registered
(b) Such Job Worker is not registered
(c) Principal is not registered
(d) Principal is registered
Answer:
(a) Such Job Worker is registered
Question 98.
As per CGST (Amendment) Act, 2018, the commissioner is empowered to extend the “Three year period” applicable to Capital Goods sent to a job worker, on sufficient cause being shown, for a further period:
(a) 6 months
(b) Not exceeding 1 year
(c) Not exceeding 2 years
(d) Not exceeding 3 years
Answer:
(c) Not exceeding 2 years
Question 99.
When the goods are sent to job worker, input tax credit will be reversed if the goods are not received back by the principal after completion of job work within of being sent out.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 3 years
Answer:
(c) 1 year
Question 100.
The Job Work procedure is given in ………… of CGST Act, 2017.
(a) Section 135
(b) Section 139
(c) Section 140
(d) Section 143
Answer:
(b) Section 139
Question 101.
If the job worker is not registered under section 25, then the principal shall not supply the goods from the place of business of a job worker unless the principal:
(a) Declares the place of business of job worker as his additional place of business
(b) Declares the place of business of job worker as his principal place of business
(c) Makes payment of GST
(d) None of the above
Answer:
(a) Declares the place of business of job worker as his additional place of business
Question 102.
As per section 143(3) and (4) of CGST Act, 2017, if the goods are not received back or not supplied from the premises of job worker within specified time limit, it shall be deemed to be supply from principal to the job worker from the day when it was sent for job work. In that case, who will be liable to pay GST₹
(a) Principal, GST without interest
(b) Principal, GST with interest
(c) Job-worker, GST without interest
(d) Job-worker, GST with interest
Answer:
(b) Principal, GST with interest
Question 103.
As per section 16(2)(d), receipt of goods or services or both is a necessary condition for claiming ITC. Instead of first bringing the goods to the premises of the principal and then sending it to the place of job worker, Mr. X has sent the inputs directly from the supplier to the job worker. In this scenario:
(a) ITC is not allowed to Principal
(b) ITC is allowed to Principal immediately
(c) ITC is allowed to Principal when goods are returned by the job worker
(d) None of the above
Answer:
(b) ITC is allowed to Principal immediately
Question 103A.
Where the inputs or capital goods are not returned to principal within the stipulated time period, it shall be deemed as supply and ….
(a) Shall be declared in GSTR-1 and tax shall be paid by the principal
(b) Shall be declared in GSTR-1 and tax along with interest shall be paid by the principal
(c) Shall be declared in GSTR-2A and ITC shall be reversed
(d) Shall be declared in GSTR-3B and ITC shall be reversed.
Answer:
Question 103B.
The details of Challan in respect of goods dispatched to a job worker or received from a job worker during a particular quarter shall be included in FORM
GST furnished for that period on or before …… of the month succeeding the said quarter.
(a) GSTR-1; 15th Day
(b) GSTR-1; 25th Day
(c) ITC-4; 15th Day
(d) ITC-4; 25th Day
Answer:
(d) ITC-4; 25th Day
Question 104.
A company may have a number of units and the GST paid by it on input services received can be distributed to the beneficiary units on the basis of their previous year turnover. The office of the company which distributes this ….. is called as ……..
(a) Credit, Input Credit Distributor
(b) Debit, Input Credit Distributor
(c) Credit, Input Service Distributor
(d) Debit, Input Service Distributor
Answer:
(c) Credit, Input Service Distributor
Question 105.
Input Service Distributor (ISD) may distribute the CGST credit within the State as :
(a) UTGST
(b) CGST
(c) SGST
(d) Any of the above
Answer:
(b) CGST
Question 106.
An input service distributor shall distribute ITC
(a) Fortnightly
(b) Monthly
(c) Quarterly
(d) Half yearly
Answer:
(b) Monthly
Question 107.
The ITC on account of integrated tax shall be distributed by input service distributor as ITC of to every recipient.
(a) Central Tax
(b) State Tax
(c) UTTax
(d) Integrated tax
Answer:
(d) Integrated tax
Question 108.
As regards the Contents of ISD in-voice and ISD credit note, the document for distributing credit need not be serially numbered if the ISD is a ………….
(a) Banking Company
(b) Finance Institution
(c) NBFC
(d) Any of the above
Answer:
(d) Any of the above
Question 109.
The ITC of CGST and SGST/UTGST to be distributed as if recipient is in different state.
(a) IGST
(b) CGST
(c) CGST&SGST
(d) CGST & SGST/UTGST
Answer:
(a) IGST
Question 110.
The input service distributor is required to distribute
(a) Eligible ITC only
(b) Ineligible ITC only
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)
Question 111.
In respect of recipient located in the same State or Union Territory in which the ISD is located, the ITC of CGST and SGST/UTGST to be distributed as …………….
(a) CGST
(b) SGST/UTGST
(c) CGST & SGST/UTGST respectively
(d) IGST
Answer:
(c) CGST & SGST/UTGST respectively
Question 112.
The credit of tax paid on input services used by more than one supplier be distributed as per provisions of the CGST Act, 2017
(a) only to one supplier
(b) equally among all the suppliers
(c) among the suppliers who used such input service on prorata basis of turnover in such state
(d) cannot be distributed
Answer:
(c) among the suppliers who used such input service on prorata basis of turnover in such state
Question 113.
In respect of recipient located in the same State or Union Territory other than that of the input service distributor, the ITC of CGST and SGST/UTGST to be distributed as ……………..
(a) CGST
(b) SGST/UTGST
(c) CGST & SGST/UTGST respectively
(d) IGST
Answer:
(a) CGST
Question 114.
As per Rule 39 of CGST Rules, 2017, the ITC on account of Integrated Tax (i.e. IGST) shall be distributed as ITC of …….
(a) Integrated Tax only
(b) Central Tax only
(c) State/UT Tax only
(d) Central Tax and State/UT Tax equally
Answer:
(a) Integrated Tax only
Question 115.
The ITC available for distribution in a month shall be distributed in the same month and the details thereof shall be furnished in FORM
(a) GSTR-5
(b) GSTR-6
(c) GSTR-7
(d) None of the above
Answer:
(b) GSTR-6
Question 116.
Every taxable person registered as on Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, within ………. days after the end of such
(a) 10, month
(b) 10, quarter
(c) 13, month
(d) 13, quarter
Answer:
(c) 13, month
Question 117.
As per section 49(5)(a) read with Rule 88A, the ITC of IGST shall be utilised in the sequence:
(a) For IGST only
(b) Firstly for IGST, then for CGST and balance for SGST/UTGST
(c) Firstly for IGST and balance for CGST and SGST/UTGST equally
(d) Firstly for IGST and balance for CGST and SGST/UTGST in any order
Answer:
(d) Firstly for IGST and balance for CGST and SGST/UTGST in any order
Question 118.
The ITC of IGST can be utilised for payment of …… On outward supply.
(a) IGST
(b) CGST
(c) SGST/UTGST
(d) All of the above
Answer:
(d) All of the above
Question 119.
As per clause (e) of section 49(5),the ITC of CGST ………….. Utilised towards payment of SGST/UTGST.
(a) Shall be
(b) Shall not be
(c) May be
(d) Shall be, if there is no ITC (IGST) remaining left.
Answer:
(b) Shall not be
Question 120.
The ITC of CGST can be used for CGST on outward supply:
(a) Without any condition
(b) Provided the ITC available on account of IGST has been utilised fully
(c) Only after its use for SGST
(d) None of the above
Answer:
(b) Provided the ITC available on account of IGST has been utilised fully
Question 121.
Radhey & Company registered supplier paying GST under regular scheme had made Inter-state Taxable Supply of ₹ 8,00,000 and Intra-state Taxable Supply of ₹ 6,00,000 chargeable under CGST, SGST, and IGST at the rates of 9%, 9% and 18% respectively. He is having available amount of ITC under CGST of ₹ 30,000 and under SGST of ₹ 20,000. Supplies made are exclusive of taxes. Amount of the total tax payable as CGST, SGST and IGST after availing the amount of ITC by Radhey & Company on such supplies shall be of ……
(a) 2,30,000
(b) 2,00,000
(c) 2,02,000
(d) 2,26,000
| Type of GST | ITC | GST on outward supplies |
| IGST | 80,000 | 16,000 |
| CGST | 40,000 | 30,000 |
| SGST | 38,000 | 30,000 |
Answer:
(c) 2,02,000
Liability = ₹ 1,44,000 + 54,000 + 54,000 – 30,000 – 20,000 = ₹ 2,02,000
Question 122.
What would be the balance in ITC to be carried forward after utilisation as per sections 49, 49A, 49B and Rule 88A
(a) ₹ 64,000 (IGST), ₹ 10,000 (CGST) and ₹ 8,000 (SGST)
(b) ₹ 4,000 (IGST), ₹ 40,000 (CGST) and ₹ 38,000 (SGST)
(c) ₹ 34,000 (IGST), ₹ 40,000 (CGST) and ₹ 8,000 (SGST)
(d) ₹ 34,000 (IGST), ₹ 10,000 (CGST) and ₹ 38,000 (SGST)
Answer:
(b) ₹ 4,000 (IGST), ₹ 40,000 (CGST) and ₹ 38,000 (SGST)
| IGST | CGST | SGST | |
| GST Payable on Outward Supplies | 16,000 | 30,000 | 30,000 |
| Less: ITC of IGST | (16,000) | (30,000) | (30,000) |
| Balance GST payable in Cash | Nil | Nil | Nil |
| ITC Available | 80,000 | 40,000 | 38,000 |
| ITC utilised | (76,000) | Nil | Nil |
| Balance ITC Carried Forward | 4,000 | 40,000 | 38,000 |
Question 123.
Mr. Pankaj of Delhi supplied goods to Mr. Krishna of Delhi for ₹ 1 lakh, on which total GST was charged @ 12%. Mr. Krishna, after purchase of goods, added 20% margin of profit (on cost) and sold the entire goods to Mr. Ravi of Delhi. The total amount of tax payable after claiming input tax on such transaction by Mr. Krishna is:
(a) ₹ 12,000
(b) ₹ 14,400
(c) ₹ 2,400
(d) None of the above
Answer:
(a) ₹ 12,000
GST Payable = (1,20,000 × 12%) – (1,00,000 × 12%) = ₹ 2,400
Question 124.
As per Rule 88A, the ITC of IGST shall first be utilised towards payment of IGST on outward supply- The amount remaining may be utilised towards the payment of
(a) CGST only
(b) SGST/UTGST only
(c) CGST & SGST/UTGST equally
(d) CGST & SGST/UTGST in any order
Answer:
(d) CGST & SGST/UTGST in any order
Question 125.
The ITC of IGST is still available even after its utilisation for outward IGST. In this case, for payment of outward CGST:
(a) The ITC of CGST to be used firstly
(b) The ITC of IGST to be used firstly
(c) The ITC of SGST to be used firstly
(d) Any of (a) & (b)
Answer:
(b) The ITC of IGST to be used firstly
Question 126.
Whenever the ITC of CGST is to be utilised, it shall be used firstly for payment of
(a) CGST
(b) SGST
(c) IGST
(d) UTGST
Answer:
(a) CGST
Question 127.
Consider the following:
| Type of GST ITC Available | GST on outward supplies | |
| IGST | 7,00,000 | 3,00,000 |
| CGST | 65,000 | 1,64,000 |
| SGST | 48,000 | 1,64,000 |
Considering the changes made wide the Central GST (Amendment) Act, 2018, what would be the balance of IGST, CGST & SGST to be carried forward₹
(a) ₹ 4,00,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(b) ₹ 2,36,000 (IGST), ₹ 65,000 (CGST) and ₹ Nil (SGST)
(c) ₹ 72,000 (IGST), ₹ 65,000 (CGST) and ₹ 48,000 (SGST)
(d) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
Answer:
(c) ₹ 72,000 (IGST), ₹ 65,000 (CGST) and ₹ 48,000 (SGST)
Question 128.
Consider the following:
| Type of GST | ITC Available | GST on outward supplies |
| IGST | 2,10,000 | 6,00,000 |
| CGST | 5,10,000 | 8,20,000 |
| SGST | 4,20,000 | 8,20,000 |
Considering the changes made vide the Central GST (Amendment) Act, 2018, what would be the amounts of IGST, CGST & SGST payable through Cash Ledger?
(a) ₹ 3,90,000 (IGST), ₹ 3,10,000 (CGST) and ₹ 4,00,000 (SGST)
(b) ₹ Nil (IGST), ₹ 4,30,000 (CGST) and ₹ 4,00,000 (SGST)
(c) ₹ Nil (IGST), ₹ 3,10,000 (CGST) and ₹ 7,90,000 (SGST)
(d) None of the above.
Answer:
(a) ₹ 3,90,000 (IGST), ₹ 3,10,000 (CGST) and ₹ 4,00,000 (SGST)
Question 129.
Consider the following:
| Type of GST | ITC, Available | GST on outward supplies |
| IGST | 1,10,000 | 1,75,000 |
| CGST | 3,30,000 | 2,90,000 |
| SGST | 3,25,000 | 2,90,000 |
Considering the changes made vide the Central GST (Amendment) Act, 2018, what would be the amounts of IGST, CGST & SGST payable through Cash Ledger?
(a) ₹ 65,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(b) ₹ 25,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(c) ₹ 65,000 (IGST), ₹ 40,000 (CGST) and ₹ 40,000 (SGST)
(d) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
Answer:
(d) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
Question 130.
Consider the following:
| Type of GST | ITC Available | GST on outward supplies |
| IGST | 25,000 | 1,80,000 |
| CGST | 65,000 | 18,000 |
| SGST | 75,000 | 18,000 |
Considering the changes made vide the Central GST (Amendment) Act, 2018, what would be the amounts of IGST, CGST & SGST payable through Cash Ledger
(a) ₹ 1,55,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(b) ₹ 51,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(c) ₹ Nil (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
(d) None of the above
Answer:
(b) ₹ 51,000 (IGST), ₹ Nil (CGST) and ₹ Nil (SGST)
| IGST | CGST | SGST | |
| GST Payable on Outward Supplies | 1,80,000 | 18,000 | 18,000 |
| Less: ITC of IGST | (25,000) | ……….. | ……….. |
| Less: ITC of CGST | (18,000) | ……….. | |
| Less: ITC of SGST | ……….. | ……….. | (18,000) |
| Balance | 1,55,000 | Nil | Nil |
| Less: Balance ITC of CGST | (47,000) | ||
| Less: Balance ITC of SGST . | (57,000) | ||
| Balance GST payable in Cash | 51,000 | Nil | Nil |
Question 131.
The available balance of input tax credit in the electronic ledger of the registered person on account of Union territory tax shall be utilized as per section 9 of UTGST Act, 2017
(a) First towards payment of central tax
(b) First towards payment of integrated tax
(c) First towards payment of union territory tax and the amount remaining, if any towards payment of integrated tax
(d) None of the above
Answer:
(c) First towards payment of union territory tax and the amount remaining, if any towards payment of integrated tax
Question 132.
What is the amount of ITC to be credited to electronic credit ledger (i.e. C,) is respect of following data:
T = 4,20,000
T1 = 70,000
T2= 11,000
T3 = 35,000
(a) ₹ 3,04,000
(b) ₹ 3,39,000
(c) ₹ 3,50,000
(d) ₹ 4,31,000
Answer:
(a) ₹ 3,04,000
C1=T- (T1 + T2 + T3)
= 4,20,000 – (70,000 + 11,000 + 35,000)
= 3,04,000
Question 133.
Find out common credit of ITC (C2) from the following:
T = 3,50,000
T3 = 15,000
C1 = 1,25,000
T4 = 35,000
(a) ₹ 35,000
(b) ₹ 40,000
(c) ₹ 50,000
(d) ₹ 90,000
Answer:
(d) ₹ 90,000
C2 = C1 -T4
= 1,25,000-35,000
= 90,000
Question 134.
What is the standard percentage of common credit, which is to be taken as credit attributable to Non-business purposes (i.e. D2) ?
(a) 4%
(b) 5%
(c) 8%
(d) Actual Basis
Answer:
(b) 5%
5% of C2 is considered as credit attributable to Non-Business Purposes
Question 135.
What is the total credit eligible?
(a) T4 + C3
(b) T2 + C2
(c) T + C1
(d) D1 + D2
Answer:
(a) T4 + C3
Question 136.
The inadmissible credit to be reversed by the registered person in FORM GSTR- 3B is:
(a) T1 + T2
(b) T3 + T4
(c) C1 + C2
(d) D1 +D2
Answer:
(d) D1 +D2
Question 137.
Mukesh, a registered supplier, receives 100 invoices involving GST of ₹ 10 Lakh from various suppliers during January, 2020. Out of 100 invoices, 80 invoices involving GST of ₹ 6 Lakh have been uploaded by the supplier in their respective GSTR-1 filed on the prescribed time. What is the amount of ITC that can be claimed for the month of December 2019 as newly invested Rule 36(4) of CGST Rules, 2016:
(a) ₹ 6,00,000
(b) ₹ 1,20,000
(c) ₹ 10,00,000
(d) ₹ 7,20,000
Answer:
(d) ₹ 7,20,000
Question 138.
(i) Total GST on Inputs (50 invoices) = ₹ 3,00,000
(iI) 40 invoices uploaded in GSTR-1 involving ITC ₹ 2,10,000.
(iii) 10 invoices not uploaded.
Compute the ITC that can be claimed in GSTR-3B in view of Rule 36(4) inserted in CGST Rules with effect from 1-1-2020.
(a) ₹ 3,00,000
(b) ₹ 2,10,000
(c) ₹ 1,50,000
(d) ₹ 2,31,000
Answer:
(d) ₹ 2,31,000