1 Introduction of GST - Expert Study Planner · (d) None of the above Ans:- (c) Charging both CGST...

1 Introduction of GST

Q. 1. __________ was first country to adopt GST as indirect system of taxation.(a) France (b) Germany(c) UK(d) IndiaAns:- a) France

Q. 2. The GST is recommended by the __________ on implementation of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003(a) Kelkar Task Force (b) Chidambaram Task Force (c) Jaitely Task Force(d) None of the aboveAns:- a) Kelkar Task Force

Q 3:- What kind of tax can be transferred from one person to another?

(a) Direct tax(b) Indirect tax(c) Both of the above(d) None of the above

Ans:- (b) Indirect tax

Q 4:- What is the difference between a direct & an indirect tax?(a) Charge of levy(b) Nature of transfer (c) Different collection pattern of tax(d) All of the above

Ans:- (d) All of the above

Q 5:- When did the GST act come into force?(a) Year 2015(b) Year 2016(c) Year 2017(d) None of the above

Ans:- (c ) Year 2017

Q 6:- Which of the following constitutional amendment governs GST act?(a) 101 st amendment, (b) 122 nd amendment,(c) 152 nd amendment (d) 140 th amendment,

Ans:- (a) 101 st amendment

Q 7:- What kind of tax is GST called as..?(a) Consumption based tax(b) Movement based tax(c) Destination based tax(d) None of the above

Ans:- (c) Destination based tax

Q 8:- Which of the following is the main motive of the

government behind the introduction of the Goods & Service tax act?

(a) To bring uniformity of taxes in the country(b) To increase the government revenue(c) To replace all indirect taxes (d) All of the above Ans:- (d) All of the above

Q. 9.Which article of the Constitution outlines the composition and functions of the GST Council ?

(a) 270 (b) 279-A (c) 246-A(d) 269-A Ans:- (c) 246-A

Q. 10 GSTN is a -----------(a) Non-profit organisation (b) Profit organisation (c) None of the above (d) One Person company

Ans :- a) Non-profit organisation

Q 11:- Who of the following will be the members of the GST Council?

1. Union Finance Minister2. Union Minister of State in charge of Revenue or

Finance3. Chief Ministers of States

(a) 1 & 3(b) 1 & 2(c) 2 & 3(d) All of the above

Ans:- (b) 1 & 2

Q 12:- Who amongst the following will be considered as the chairman of GST Council ?(a) Union Minister of State (b) Union Finance Minister(c) Minister of state revenue(d) Chief Minister of state

Ans:- (b) Union Finance Minister

Q 13:- Which of the following functions are performed by Goods & Service Network (GSTN)?(a) Facilitating registration(b) Computation & settlement of IGST(c) Matching of tax payment details with banking

network(d) All of the above


Q 14:- What does dual GST concept mean?(a) Charging CGST & IGST(b) Charging SGST & IGST(c) Charging both CGST & SGST

MCQ’s

(d) None of the aboveAns:- (c) Charging both CGST & SGST

Q 15:- What kinds of taxes are subsumed under GST?(a) Central excise duty(b) State VAT/Sales Tax(c) Central Sales Tax(d) Service Tax(e) All of the above

Ans:- (e) All of the above

Q 16:- Which of the taxes are out of purview of GST?(a) Property tax & stamp duty(b) Additional duties of Custom (CVD & SAD)(c) Excise duty on Alcohol(d) Entertainment tax by local body(e) Only (a) & (c)

Ans:- (e) Only (a) & (c)

Q 17 :- Which of the following good will not be covered under the GST act?

(a) Cooking gas(b) Liquor(c) Petrol(d) All of the above

Ans:- (b&c) liquor & Petrol

Q. 18:-.GST is levied on supply of all goods and services except:(a) Alcoholic liquor for human consumption (b) Tobacco (c) Health care services(d) All of the above Ans:- (a) Alcoholic liquor for human consumption

Q 19:- How many Companies are given permission to act as GST Suvidha Providers? a) 30 b) 34 c) 40 d) 20

Ans:- b) 34

Q. 20:- The Authority shall consists of?a) 1 Chairman & 1 Technical member b) 1 Chairman & 2 Technical members c) 1 Chairman & 3 Technical members d) 1 Chairman & 4 Technical membersAns:- d) 1 Chairman & 4 Technical members

Q 21:- Who will notify the rate of tax to be levied under CGST?

(a) Central government suo moto(b) State government suo moto(c) GST council suo moto(d) Central government as per recommendations of

the GST councilAns:- (d) Central government as per recommendations of

the GST council

Q 22:- The proceeds of the GST Compensation Cess leviable under section 8 shall be distributed among States as and when collected. a) Yes b) Noc) d)Ans:- b) No

Q.23. If a state loses revenue because of abolition of central sales tax, Central Government will pay compensation in the form of GST compensation cess for:

(a) 1 year (b) 3 years (c) 5 years (d) 10 years.

Ans:- (c) 5 years

Q. 24. Which of the following statement is correct ?(A) GST is based on principle of ‘pay as you earn’.(B) GST is a destination based tax.(c) GST is technically paid by consumers but it is

actually funded by suppliers. (D) All of the above

Q.25 The term 'public interest' is ----------vague and uncertain.

a) Definitely b) not c) To an extent d) Both (a) and (c) are correct

Ans:- b) Not

Q.26.Whether IGST revenue is to be apportioned to state?(a) No (b) Yes- apportioned to origin state(c) Yes- apportioned to destination state (d) Discretion of ParliamentAns:- Yes- apportioned to destination state

Q. 27.Who will legislate GST law?(a) State Legislature(b) Parliament(c) Both (d) Depends upon nature of supply Ans:- (a) State Legislature

Q. 28.Presently GST law/Act extends to — (a) All States (except the State of J&K) (b) All States as well as all Union territories (c) All States (except the State of J&K) and All Union

territories(d) All States (except the State of Telangana) but

including Union territories

Ans:- (b) All States as well as all Union territories

Q. 29.The recommendation of the GST Council will be __________ .

(a) Mandatory (b) Only Advisory Power (c) Mandatory and sometimes Advisory(d) Mandatory on States onlyAns:- (d) Jammu & Kashmir

Q.30.One of the following states does not fall under special category given under Article 279A of the Constitution(a) Himachal Pradesh (b) Uttarakhand(c) Chhattisgarh (d) Jammu & KashmirAns:- (d) Jammu & Kashmir

Q. 31.Goods and Services Tax (Compensation to the States) Act, 2017 is popularly known as ----------. a) GST CSAb) GST Compensation Cess Act c) GST Cess Act d) GST Compensation Act

Ans:- b) GST Compensation Cess Act

Q 32. GST is levied on which of the following?(a) Sale of goods(b) Manufacture of goods(c) Provision of services(d) Supply of goods/ services

Ans:- (d) Supply of goods/ services

Q 33:- Which of the following would attract levy of CGST & SGST?(a) Inter-state supplies(b) Intra-state supplies(c) Any of the above(d) None of the above

Ans:- (b) Intra-state supplies

Q 34:- What are the taxes levied on an intra-state supply?(a) CGST(b) SGST (c) CGST & SGST(d) IGST

Ans:- (c) CGST & SGST

Q. 35. If any supply made by a trader from Delhi to another trader in Delhi, the supply will be subject to:

(a) CGST and SGST (b) CGST and UTGST (c) IGST (d) SGST and UTGST.

Ans:- (b) CGST and UTGST

Q 36:- Which of the following supplies will be classified as Inter-state supply?

(a) Supply within same state(b) Supply within same union territory(c) Supply between two different states/ union

territory(d) None of the above

Ans:- (c) Supply between two different states/ union territory

Q 37:- What is Integrated Goods and Services Tax?(a)Tax imposed on import or export of goods and

services(b)Tax imposed on value additions to exports(c)Tax imposed on interstate trade(d)Tax on international trade

Ans:- (a&c)

Q. 38.The items which will be taxable both under current Central Excise Law and GST even after the implementation of the GST Act.

(a) Motor Spirit (b) Alcoholic Liquor for Human Consumption (c) Tobacco and Tobacco Products(d) Natural Gas Ans:- (c) Tobacco and Tobacco Products

Q. 39. What does “I” stand for IGST or CT for CGST or Stand for SGST ?

(a) International , Central, State (b) Integrated, Central, State(c) Integral , Central, State(d) Intra, Central, StateAns:- (c) Integral , Central, State

Q 40:- ITC of CGST can be utilised for payment of (a) Only CGST(b) Only SGST(c) 1st CGST & then IGST(d) 1st SGST & then IGST

Ans:- (c) 1st CGST & then IGST

Q 41:- ITC of SGST can be utilised for payment of (a) Only CGST(b) Only SGST(c) 1st CGST & then IGST(d) 1st SGST & then IGST

Ans:- (d) 1st SGST & then IGST

Q 42:- ITC of IGST can be utilised for payment of (a) Only CGST(b) Only SGST(c) Only CGST & SGST(d) 1st IGST 2nd CGST & then SGST

Ans:- (d) 1st IGST 2nd CGST & then SGST

Q. 43. For purposes of GST law, the territory of “India” shall be taken to cover up following:

(a) Sea Area upto 12 nautical miles from base line (b) Sea Area upto 200 nautical miles from base line (c) Air space above its territory and territorial waters (d) All of the above

Ans:- (D) All of the above

Q.44 . Which of the following type of GST is payable on all Inter-State supply of goods and / or services ?

(a) State GST (SGST) (b) State GST (SGST) & Integrated GST (IGST) (c) Central GST (CGST) & integrated GST (IGST) (d) Integrated GST (IGST)

Ans:- (d) Integrated GST (IGST)

Q.45. Which of the following is not the role of GSTN in GST regime?(a) Facilitating registration, forwarding return to Central

and State authorities.(b) Computation and Settlement of IGST, matching tax

payment details with banking network(c) Providing platform for litigation(d) Providing various MIS reports to Central and State

Governments, providing analysis on tax payers profile, running the matching engine, reversal and reclaim of Input tax credit

Ans:- (c) Providing platform for litigation

Q.46. Officers under SGST Act shall be deemed to be the officers appointed under: (a) Income tax Act, 1961 (b) Customs Act, 1962(c) CGST Act (d) None of the Above

Ans:- (c) CGST Act

Q. 47. Officers under which Act shall be deemed to be the officers appointed under the provisions of CGST Act: a. Central Excise Act, 1944 b. Central Sales Tax Act, 1956 c. Delhi Value Added Tax Act, 2004 d. Customs Act, 1962 Ans:- a. Central Excise Act, 1944

Q. 48. The officers appointed under which of the

following Acts are authorised to be the proper officers for the purposes of the CGST Act, 2017: a. State Goods and Services Tax Act b. Union Territory Goods and Services Tax Act c. Both (a) and (b) d. None of the above Ans:- c. Both (a) and (b)

Q. 49. The Commissioner may, subject to such conditions and limitations as may be specified in this behalf by him, delegate his powers to: a. Any other officer who is sub-ordinate to him b. Any other officer who is senior to him

c. Both (a) and (b) d. None of the aboveAns:- a. Any other officer who is sub-ordinate to him

2 Levy of GST

Q. 1 What is the taxable event under GST? a. Manufacturing of goods b. Sales of goods c. Provision of Services d. SupplyAns:- d) Supply

Q.2. what are different types of supply covered under scope of supply a) Supplies made with consideration b)Supplies made without considerationc) Both of the aboved) None of the above

Ans:- c) Both of the above

Q. 3. Output tax in relation to a taxable person under the CGST Act, 2017 includes:

a. Tax chargeable on taxable supplies made by himb. Tax chargeable on taxable supplies made by his

agentc. Tax payable by him under reverse charged. Both (a) and (b)

Ans:- d) both (a) and (b)

Q. 4. The term “place of business” includes:a. Place from where business is ordinarily carried out

including godown, warehouse, etc. b. Place where a taxable person maintains his books of

accountc. Place where taxable person is engaged in business

through an agentd. All the aboveAns:- d. All the above

Q.5. which of the following activity is treated as supply in accordance with section 7 of CGST Act

a) Mr. Raj sold electronic gadgets to XYZ Co.b) Mr. Veer Supply Beer Shampoo to M/s priya c) Vijay Electronics disposed scrap part of electric unit to a scrap dealerd) All of the above Ans:- d) All of the above

Q.6. Supplier within the meaning of supply includes a) Person supplying goods b) Person providing services c) Both d) None of the aboveAns:- c) Both

Q.7. The term ‘casual taxable person’ includes:a) A person occasionally supplying goods or services or

both in a State or a Union territory where he has no fixed place of business.

b) A person occasionally supplying goods or services or both in a State or a Union territory where he has fixed place of business.

c. Both (a) and (b)d. None of the above

Ans:- a) A person occasionally supplying goods or services or both in a State or a Union territory where he has no fixed place of business.

Q. 8. A person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India is:a. Non–resident taxable personb. Composition dealerc. Registered persond. Casual taxable person

Ans:- a. Non–resident taxable person

Q. 9. Which of the following is a non–taxable supply under the CGST Act, 2017:

(A) Supply on which GST levy is not attracted under Sec 9 of CGST Act

(B) Supply on which GST levy is not attracted under Sec 5 of IGST Act

(C) Supply on which GST levy is not attracted under Sec 9 of CGST Act as well as Sec 5 of IGST Act

(D) Supply on which GST is exempted by Government upon recommendation of GST Council

Ans:- (C) Supply on which GST levy is not attracted under Sec 9 of CGST Act as well as Sec 5 of IGST Act

Q. 10. Amit of Delhi is participating in Ayush Furniture Expo in Haryana where he has no fixed place of business and exhibiting his products. During the expo, the said products will be sold to the people attending and intending to purchase such products including foreign buyer. In such scenario, Amit shall obtain which of the following registration under the CGST Act, 2017:(a) Non–resident taxable person registration (b) Casual taxable person registration(c) Regular taxpayer registration (d) No registration under GST required. Ans:- (b) Casual taxable person registration

Q. 11. “Manufacture” means processing of raw material or inputs in any manner that results in emergence of ………………

a. A new product having a distinct name, character and use

b. An old product having a distinct name, character and use

c. A new product having a distinct named. Either (a) or (b)Ans:- a. A new product having a distinct name, character

and use

Q. 12. ‘P’ Ltd. has its registered office under the Companies Act, 2013 in the State of Maharashtra. It also has a corporate office in the State of Telangana. What will be the place of business of ‘P’ Ltd. under the CGST Act, 2017?

a. Telanganab. Maharashtrac. Both (a) and (b)d. None of the above

Ans:- c. Both (a) and (b)

Q. 13 Which among the following are zero rated supplies?

a) Exports b) Supplies to SEZ c) Exports and Imports d) Both (a) and (b)Ans:- d) Both (a) and (b)

Q. 14. An exempt supply includesa. Supply of goods or services or both which attracts Nil

rate of taxb. Non-taxable supplyc. Supply of goods or services or both which are wholly

exempt from tax under Section 11 of the CGST Act or under Section 6 of IGST Act

d. All of the aboveAns:- d. All of the above

Q. 15 As per Section 2(47) of CGST Act, 2017, exempt supply includes the supply of following type of goods and services:

(a) Supply attracting nil rate of tax (b) Supplies wholly exempt from tax, by way of a

notification; (c) Non-taxable supply (d) All of the above.Ans:- (d) All of the above.

Q. 16 Goods under CGST Act excludes: (a) Securities (b) Unsecured debts (c) Right to participate in the draw to be held in a lottery (d) Growing crops.Ans:- (a) Securities

Q. 17. The term ‘goods’, as defined under section 2(52) of the CGST Act, 2017, does not include-(a) Grass(b) Money and securities(c) Actionable claims(d) Growing crops Ans:- (b) Money and securities

Q. 18. What is the statue of ‘money and securities’ under GST law(a) Treated as ‘Goods’

(b) Treated as ‘Services’ (c) Treated neither as ‘Goods’ nor as ‘Services’(d) Status is not clearAns:- (c) Treated neither as ‘Goods’ nor as ‘Services’

Q.19. What is the statue of ‘lottery as an actionable claim’ under GST law (a) Treated as ‘Goods’ (b) Treated as ‘Services’ (c) Treated as ‘goods’ but out of scope of supply(d) Treated as ‘goods’ and remains within scope of

supplyAns:- (d) Treated as ‘goods’ and remains within scope of

supply

Q. 20. "Services" means anything other than goods, money and securities includes

a) Activities relating to the use of money or its conversion by cash

b) Immovable property c) Securities d) Actionable claimsAns:- a) Activities relating to the use of money or its

conversion by cash

Q. 21 Activity of ‘supply of money’ by Bank to a business entity on interest -

(a) Treated as ‘Supply of Goods’(b) Treated as ‘Supply of Services’ (c) Treated as ‘Supply of Services’ to the extent it is

relating to use of money(d) None of the aboveAns:- (b) Treated as ‘Supply of Services’

Q. 22. Activity of ‘conversion of money/ foreign exchange’ by Bank/ Authorized Dealer to a business entity on interest (a) Treated as ‘Supply of Goods’ (b) Treated as ‘Supply of Services’ (c) Treated as ‘Supply of Services’ and attracts GST payment is made to end user(d) Treated as ‘Supply of Services’ and attracts GST payment when made to another Bank/ Authorized DealerAns:- (c) Treated as ‘Supply of Services’ and attracts GST payment is made to end user

Q.23. Which of the following activities will be considered as a supply of service (a) Mr A borrows an amount of ` 1, 50,000 from one of

his relative Mr Q and agrees to repay the entire amount with interest after a year.

(b) M/s Raj enterprises applied for loan from SBI Bank against which a processing fees and interest is charged by the bank

(c) Mr H exchanged INR against purchase of US $ for which a commission was charged

(d) All of the above.Ans:- (d) All of the above.

Q.24. which of the following is not a business activitya) Ms. Pooja sold her old jeweller b) Mr. rajesh sold his business car c) (a) or (b)d)None of the aboveAns:- a) Ms. Pooja sold her old jeweller

Q. 25. When will the recipient and supplier be treated as related persons under GST? a) Where such persons are employer and employee b) Where one of them directly or indirectly controls other c) Where such persons are officers or direc- tors of one another?s business d) All of the above

Ans :- d) All of the above

Q. 26. Mr. A has received techical consultancy services from IT Star Consultants, USA. The import of technical consultancy will not be liable to GST if- (I) Mr. A pays some consideration for the services

received (ii) Mr. A pays some consideration for the services

received and if Mr. A uses the said service for business purposes

(iii) Mr. A uses the said service for business purposes even though he does not pay any consideration for the same

(iv) Mr. A uses the said service for personal purposes and does not pay any consideration for the same and is also a partner in IT Star Consultants

(v) Mr. A uses the said service for business purposes and does not pay any consideration for the same and is also a partner in IT Star Consultants (a) (I), (ii), (v) (b) (ii), (iii) and (v) (c) (iii), (iv) (d) (iii), (iv) and (v)

Ans: c) (iii), (iv)

Q .27 . A Ltd. (GST registered in Delhi) has appointed Mr C (UP) to act as his agent and supply goods on his behalf to buyers in UP. A Ltd. has dispatched first lot of 10,000 units to Mr C (UP) for sales to buyers in UP. Such dispatch to Mr C (UP) :(a) Be treated as ‘supply’ (b) Not be treated as ‘supply’ (c) Will be treated as supply subsequently(d) None of the aboveAns:- Be treated as ‘supply’

Q. 28. A Ltd. (GST registered in Delhi) appointed Mr C (UP) to act as his agent and supply goods on his behalf to buyers in UP. A Ltd. dispatched first lot of

10,000 units to Mr C (UP) for sales to buyers in UP paying IGST on such dispatch supply. These GST paid goods were subsequently sold by Mr C (UP)- the agent. He issued his invoice to the buyer too. Such subsequent sale to buyer -(a) shall not attract GST as GST has already been paid

on such goods(b) shall attract GST as further supply (c) shall attract GST as further supply – such further

GST payable by Principal (A Ltd.)(d) shall attract GST as further supply – such further

GST payable by Agent (Mr C)Ans:- (d) shall attract GST as further supply – such

further GST payable by Agent (Mr C)

Q.29. Smart pvt ltd has head office located in Bangalore (Karnataka). However, the branch of Smart pvt ltd is located in state of Gujarat. Will be treated as ------------------- under GST Act?

a) deemed distinctb) principle and Agent c) Both (a) or (b)d) None of the aboveAns:- a) deemed distinct

Q. 30. In which of the following cases, import of services is taxable under GST?(1) Import of service with consideration in course or

furtherance of business.(2) Import of service with consideration not in course or

furtherance of business.(3) Import of service without consideration from a

related person in course or furtherance of business.

(4) Import of service without consideration from a related person not in course or furtherance of business.

(a) (1) and (3)(b) (2) and (4)(c) (1), (2) and (3)(d) (4)Ans:- (c) (1), (2) and (3)

Q. 31. A Ltd. Holding entity made certain transfer of fixed asset on permanent basis to its subsidiary X Ltd. entity without any consideration. Does the same classify as a supply under GST?a. Yesb. Noc. On prior Permission of Governmentd. Not anyAns:- a)Yes

Q. 32. ABC Ltd. provides certain services to Mr. Joy who holds 35% of the voting right in the company. T h e t r a n s f e r m a d e w a s w i t h o u t a n y consideration. Does the same qualify as supply?

a. Yes, if made in the course or furtherance of businessb. No, since made without any considerationc. Not a supplyd. YesAns:- a) Yes, if made in the course or furtherance of business

Q. 33. Mr. Amar being a managing director of Alpha Project Pvt. Ltd. made gifts to his employees worth of INR 60,000 each for assisting in the architectural work of his house. Does the same be considered supply?a. Yes, since the value of gift exceeds the provided limit

of INR 50,000b. No, since the gift is not made in course or furtherance

of businessc. As per the option of appropriate authorityd. NoAns:- b. No, since the gift is not made in course or

furtherance of business

Q. 34. ABC Pvt. Ltd. makes certain supplies to Mr. X and Mr. Z. Both of them hold 51% of the voting rights in the company and exercise major stake in the decision making. Does the same supply stands as related party transaction?

a. Yesb. Noc. As per the opinion of the appropriate authorityd. None of the aboveAns:- a. Yes

Q. 35. Supply of food or drink items in a restaurant as per CGST Act is------------

a) Supply of goods b) Supply of service c) not a supply under GST d) none of the above

Ans:- b) Supply of Service

Q. 36. Mr. A, being a Director of ABC Pvt. Ltd. Is provided a car which he uses for his personal purpose. Does the same classify as supply? If yes under which group?a. Yes, supply of goodsb. Yes, supply of servicesc. Does not qualify as supplyd. None of the aboveAns:- b. Yes, supply of services

Q. 37. What shall be the proper classification of Renting of immovable property under supply?a. Supply of Goodsb. Supply of Servicesc. Does not qualify as supplyd. None of the aboveAns:- Supply of Services

Q. 38. ABC Ltd. offers a software to businesses for smooth processing of returns and accounts. Such software shall be considered as:a. Supply of Goodsb. Supply of Servicesc. Does qualify as supplyd. None of the aboveAns:- b. Supply of Services

Q. 39. Temporary transfer or permitting use of intellectual right or property is classified as:

a. Supply of goodsb. Supply of servicesc. Does not qualify as supplyd. Supply on the prior permission of Government

Q. 40. Ram has received a sum of ` 5,00,000 from his employer on premature termination of his contract of employment. The GST implication will be:(a)It is not a supply, hence not chargeable to GST. (b) It is a supply without consideration, hence not chargeable to GST. (c) It is a supply, hence chargeable to GST. (d) It is not supply, but exemption is there. Ans:- (a)It is not a supply, hence not chargeable to GST.

Q. 41. GST is payable on the services provided by the employee to the employer in the course of employment on: (a) Regular basis; (b) Contract basis as employed by the company;(c) Contract basis as employed by a contractor;(d) None of the above. Ans:- (c) Contract basis as employed by a contractor;

Q. 42. Which of the following activity shall be treated neither as a supply of goods nor a supply of services?

(i) Permanent transfer of business assets where input tax credit has been availed on such assets

(ii) temporary transfer of intellectual property right(iii) transportation of deceased(iv) services by an employee to the employer in the

course of employment(a) (i) & (iii) (b) (ii) & (iv) (c) (i) & (ii) (d) (iii) & (iv) Ans:- d) (iii) & (iv)

Q. 43. As per the CGST Act, 2017, the term “workscontract” includes:

a. Construction, fabrication, completion, erection, installation, etc. of movable property

b. Construction, fabrication, completion, erection, installation, etc. of immovable property

c. Both (a) and (b)

d. None of the aboveAns:- b) Construction, fabrication, completion, erection,

installation, etc. of immovable property

Q. 44. While repairing the factory shed, few goods werealso supplied along with the labour service.Whether it is a :a. Composite Supplyb. Mixed Supplyc. Works Contract Serviced. None of the aboveAns:- c. Works Contract Service

Q. 45. What type of supply shall transfer of title in goods under works contract constitute?a. Supply of Goodsb. Supply of servicesc. Either of the two at the option of authorityd. None of the aboveAns:- b) Supply of services

Q. 46. Mr. A has sold his old furniture of the house. Does this constitute a supply?

a) Yes b) No c) Maybe d) None of the above

Ans:-b) No

Q. 47. Ajay let out his land for tenancy for a period of 3 years to Mohan. Such tenancy shall be classified as: a) Supply of goods b) Supply of services c) Either of the two d) None of the above

Ans:- b) Supply of Service

Q. 48. High sea sales are considered as supply under GST. True or False?a. Yesb. Noc. May bed. None of the aboveAns:- b) No

Q. 49. Michael Ltd. of US supplies certain goods to ABC Pvt. Ltd. of Mumbai. Before goods reach Mumbai port, it supplies those goods to XYZ Pvt. Ltd. by transfer of documents of title to goods. What kind of transaction is this?

a) Transfer b) High sea sales c) Composite supply d) SupplyAns:- b) High sea sales

Q. 50. Mr. X, supplied a laptop for ` 40,000 to Mr. Y along with a barter of printer, the value of which is ` 4,000 but the open market value of the laptop is not known. The GST liability will be:

(a) Mr. X for ̀ 40,000 and Mr. Y for ̀ 4,000 (b) Mr. X for ̀ 44,000 and Mr. Y for ̀ 4,000 (c) Mr. X for ̀ 36,000 and Mr. Y for ̀ 4,000 (d) Mr. X for ̀ 40,000 and no GST liability for Mr. Y.

Ans:- (b) Mr. X for ̀ 44,000 and Mr. Y for ̀ 4,000

Q. 51. Mr. A is a well-known singer. He receives a life-time achievement award which consist of a memento and a cheque of ̀ 10,00,000. It is:(a) Supply and chargeable to GST (b) Supply but not chargeable to GST (c) Not supply and hence not chargeable to GST(d) None of the above.

Ans:- (c) Not supply and hence not chargeable to GST

Q.52. Mr. Vishal has head office in pune and has branches in state of Gujarat, Goa, and Punjab. Mr. Vishal send goods to its branch Goa worth ` 2,50,000 in a own conveyance. Value of conveyance ̀ 15,00,000 and With the conveyance some tools and spares parts are also send worth ` 50,000. Calculate total value of taxable supply on which GST is payable.a) 3,00,000b) 2,50,000c) 18,00,000d) 15,50,000

Ans:- b) 2,50,000

Q.53. Mr. X is a dealer of new cars. He sells new cars for `8,25,000 agrees to reduce ` 1,25,000 on surrendering of old car. Mr. Y who intends to buy new car worth ` 8,25,000 agreed to exchange his old car with new car. Under GST law, if Mr. X and Mr.Y is registered person, who will be liable to pay GST and what is the value.a) X on 825000 and Y on 125000b) X on 700000 and Y on 125000c) only X on 700000d) only Y on 125000Ans:- a) X on 825000 and Y on 125000

Q.54. There is a difference in taxability of goods forming part of composite supply and mixed supply. Here are few examples from which you need to identify which is correct example of composite supply and mixed supply.

i) Mr. A buys a car and purchases warranty and maintenance of the car by paying nominal amount. Car, warranty and maintenance here are a mixed supply.

ii) Mr. A buys a car and purchases warranty and maintenance of the car by paying nominal amount.

Case Study:- Case Study:-

Car, warranty and maintenance here are a composite supply.

iii) Mrs. A buys a microwave oven and some utensils for use in microwave oven. Both microwave oven and utensils are sold at a single price. Microwave oven and its utensils here are a mixed supply.

iv) Mrs. A buys chocolates, juices and biscuits from a shop. All items have different prices. Chocolates, juices and biscuits are a mixed supply.

The correct examples of composite and mixed supply are: - a) i,iv b) ii,iii c) ii,iii,iv d) None of the above

Q. 55. What shall constitute main item under composite supply? a) Principal Item b) Item with Highest tax rate c) As per the option of the taxpayer d) None of the above

Ans:- b) Item with Highest tax rate

Q. 56. In composite supply, the principal supply is supply of goods whereas the ancillary supply is supply of services. Which provision shall apply in respect of time of supply? a) Time of supply of service b) Time of supply of goods c) Either (a) or (b)d) None of the above

Ans :- b) Time of supply of goods

Q. 57. M/s X Ltd. a dealer offer combo packs of shirt, watch, wallet, book and they are bundled as a kit and this kit is supplied for a single price as a mixed supply. Tax rate for shirt, watch, wallet and book are 12%, 18%, 5% and Nil respectively. The mixed supply will be taxed at:

(a) 12% (b) 18% (c) 5% (d) NilAns:- (b) 18%

Q. 58. What kind of supply is this transaction: Food supplied to the in – patients as advised by the doctor in the hospital.”

a. Composite Supplyb. Mixed Supplyc. Works Contract Serviced. None of the aboveAns:- a. Composite Supply

Q. 59. XYZ Pvt. Ltd. manufactures the jeans on order of ABC Pvt. Ltd. Further, after manufacturing, it also

gets it delivered to ABC Ltd. & gets the in transit insurance done. What kind of supply is this?a. Mixed supplyb. Composite supplyc. None of the aboved. Don’t knowAns:- b. Composite supply

Q. 60 Which of the following transactions does not qualify as supply under GST law?

(I) When the Head Office makes a supply of services to its own branch outside the State.

( i i )When a person impor t serv ices wi thout consideration for the purposes of his business from his elder brother living outside India.

(iii) Disposal of car without consideration and where the supplier has not claimed input tax credit on such car.

(iv) When a principal makes supplies to his agent who is also registered and is situated within the same State.(a) (i) & (iii)(b) (I), (ii) & (iii)(c) (iii)(d) (iii) & (ii)Ans:- (c) (iii)

Case Study:-

Mr. X(Maharashtra)registered under GST is running a business from last 40 years, supply the goods to overall India. He has a branch in Punjab, Goa, Delhi, Karnataka. He want to increase sale so he had started working with agent also in the Assam, Gujarat and made a supply through them in there state. Mr. X had want to maintain inventory so that he should not loss any customer he haspurchase software(note1)from his brother who is reside in USA, market value ̀ 8,00,000and his old computer with software he has donate to seva charity of Mumbai. Value of computer is ̀ 65,000. Following is supply toPunjab – 20,00,000 Goa- 3,80,000Delhi- 9,85,000Karnataka- 4,65,000Assam- 22,80000Gujarat- 8,55,000

GST rate is 12% for goods and service is 18%. During the year Mr. X has given goods to his employee on Diwali worth ` 28000 also given some goods to use in marriage function of his friend for 4days worth ̀ 2,85,000. Mr. X has sale land in Punjab worth ̀ 58,00,000. At the time of sale some issue came and he had paid fees ` 8000 to district court to clear the sale. Answer the following question.

Note1: license of a pre packed software.

Q. 1 which of the following is supply a) supply to branch b)supply to agent c) supply to friend d) all of the aboveAns: d) All of the above

Q.2 what is the supply made during year a) 1,31,43,000 b) 70,30,000 c) 73,15,000 d) 1,30,50,000Ans:- b) 70,30,000

Q. 3 what is GST amount payable on sale of land a) 6, 96,000 b) 10, 44,000 c) on sale no need to pay GST only at the time of

purchase need to pay GST d) none of the aboveAns:- d) none of the above

Q. 4what has GST amount payable in case of supply made to seva charity a) 3250b) 7800c) 11700d) none of the above Ans:- b) 7800

Q. 5 goods to use in marriage function of his friend what will be the GST a) 34200b) 51300c) 14250d) None of the above Ans:- b) 51300

Q. 6 purchase of software from brother has treated asa) supply of goods b)supply of servicec) supply of both (goods as well as services)d) It is not a supply Ans:- b)supply of service

Q. 7 which of the following is supply without consideration (as per schedule I) a) supply seva charity b) supply to friend c) supply to employeed) all of the aboveAns:- a) supply seva charity

Q. 8 on which of the following activity GST is not pay

a) supply to friend b) supply to Agentc)court feesd) supply from his brother Ans:- c) court fees

Q. 9 which of the following activity or transaction is not a supply as per schedule IIIa)sale of land b) court fees paid c) both of the above d) none of the above Ans:- c) both of the above

Q. 10 which of the following is supply of servicea) supply to friendb) fees paid to the court c) supply to employeed) all of the above Ans:- a) supply to friend

PRACTICE QUESTION PRACTICE QUESTION PRACTICE QUESTION

Q.1 Which one of the following is not a composite supply:

(a) Supply of an air conditioner along with freight, insurance and installation

(b) Supply of UPS along with external battery(c) Supply of architect services along with supply of

material incidental to his services (d) Supply of lodging service by a hotel including

breakfastAns:- (b) Supply of UPS along with external battery

Q.2 Which of the following is not covered under Schedule III of CGST Act: -

(I) Service provided by an employer to his employee on the occasion of his marriage

(ii) The functions performed by the members of municipalities and local authorities

(iii) The duties performed by a director in a body established by the Central Government

(iv) Actionable claims, other than lottery, betting and gambling (a) (i) & (iii) (b) (I) (c) (iii) (d) None of the aboveAns:- (b) (I)

Q. 3. Mr. Z trades in certain items which are exempt and supplies certain items to SEZ which are zero-rated. He wants to understand which of the following will be included in computation of taxable supplies for purpose of availing input tax credit?

a) Zero-rated supplies b) Exempt supplies c) Both i.e., Zero-rated and exempt supplies d) None of the aboveAns:- a) Zero-rated supplies

Q 4. GST compliance rating would be given to whom (a) Input Service Distributor (b) Supplier of Goods and/ or Services whose value of

taxable turnover is greater than 20 lakhs (c) Composition Dealer & Person who is liable to deduct

TDS/ collect TCS (d) All of the above


Q.5 Mr. Kabira is engaged in the business of sale and purchase of handbags taxable @ 18%. Calculate his tax liability to be paid in cash for the month of Jul2018 considering the following details-

Mr. Kabira has also procured consultancy services from lawyer for Rs. 1 lakh who is situated in same State in which Mr. Kabira is registered being taxable @ 18%.

(a) IGST: Rs. 2,00,000; CGST: Rs. 2,50,000; SGST: Rs. 2,50,000

(b) IGST: Nil; CGST: Rs. 50,000; SGST: Rs. 2,50,000 (c) IGST: Nil; CGST: Rs. 59,000; SGST: Rs. 2,59,000 d) IGST: Rs. 3,00,000; CGST: Rs. 4,50,000; SGST: Rs.

4,50,000Ans:- (b) IGST: Nil; CGST: Rs. 50,000; SGST: Rs. 2,50,000

Q.6 Ms. Chulbuli is registered in Delhi. She has been engaged in the modeling business. Her taxable turnover during the month of Jul-2018 is 48 lakh taxable @ 18%. She has made all supplies within the State. The carried forward ITC are as under:-

(I) CGST: Rs. 2,35,000 (ii) SGST: Rs. 1,30,000 (iii) IGST: Rs. 1,00,000

During the month of Jul-2018, she travelled abroad and purchased camera for Rs. 5 lakh on which she paid IGST of Rs. 90,000. She utilized this camera partly for business purpose and partly for non-business purposes. Calculate the net GST liability on her output supplies (to be paid in cash) for the month of Jul-2018. (a) CGST: Rs. 4,32,000; SGST: Rs. 4,32,000; IGST: Rs.

90,000 (b) CGST: Rs. 1,97,000; SGST: Rs. 3,02,000; IGST: Rs.

Nil (c) CGST: Rs. 1,01,000; SGST: Rs. 3,02,000; IGST: Rs.

90,000 (d) CGST: Rs. 11,500; SGST:Rs. 3,02,000; IGST: Rs.

Nil

Value of inter-State outward supply to registered persons

Value of intra-State outward supply to registered persons

Value of intra-State outward supply to un-registered persons

Value of intra-State inward supply fromregistered persons

Value of inter-State inward supply fromregistered persons

Value of intra-State inward supply fromun-registered persons

CGST/ SGST credit on other inward supplies (including credit of Rs. 5,000 each on account of Food and Beverages expenses)

Carried forward creditsCGST : ` 2 lakhSGST : ` 2 lakhIGST : ` 5 lakh

Particulars Amount(`)

30 lakh

50 lakh

15 lakh

10 lakh

5 lakh

2 lakh

1.5 lakhIGST credit on capital goods purchased in the month of july

0.5 lakh each

Ans:- (d) CGST: Rs. 11,500; SGST:Rs. 3,02,000; IGST: Rs. Nil

Q. 7. Which of the following transactions does not qualify as supply under GST law?

(i) When the Head Office makes a supply of services to its own branch outside the State.

(ii) When a person import services without consideration for the purposes of his business from his elder brother living outside India.

(iii) Disposal of car without consideration and where the supplier has not claimed input tax credit on such car.

(iv) When a principal makes supplies to his agent who is also registered and is situated within the same State. (a) (i) & (iii) (b) (I), (ii) & (iii) (c) (iii) (d) (iii) & (ii)Ans:- (c) (iii)

Q. 8. Factory that should Not be considered in determining whether goods or services are related include---------.

(a) the nature of the goods or services(b) the nature of the production processes(c) the type or class of customers for the goods or services(d) the type or class of raw material for the goods or servicesAns:- (d) the type or class of raw material for the goods or

services

Q. 9. Meaning of “family” does not include: (a) spouse(b) Children(c) independent parents(d) dependent grand-parentsAns:- (c) independent parents Q. 10. Supply of goods by any unicorporated

association or body of persons to a member thereof for cash, deferred payment or other valuable consideration is .............

(a) Supply of goods(b) Neither as a supply of goods nor a supply of services(c) Supply of services(d) Either as a supply of goods or as a supply of servicesAns:- (a) Supply of goods

Q. 11. Out of the IGST paid to the Central Government in respect of import of goods or service, if the registered taxable person does not avail the said credit within the specified period, what is the treatment?(a) refund it back to the taxable person(b) Can be claimed after the expiry of the specified

period(c) Apportion to the Central Government based on rate

equivalent to CGST on similar intra-State supply

ans Apportionment to the state where such supply takes place.

(d) None of the aboveAns:- (c) Apportion to the Central Government based on

rate equivalent to CGST on similar intra-State supply ans Apportionment to the state where such supply takes place.

Q. 12. The provisions of apportionment of tax under IGST also apply to --------(a) Interest(b) Penalty(c) Compounding sum realized in connection with tax(d) All of the above


Q. 13. Suppose, One Business Group has 35 Business Verticals within a state and has to take separate GST registrations under the same PAN. How many online registration applications with scanned documents have to be filed by that Business Group? a) 35 separate applications in GST REG-01 b) Only one registration application incorporating the

entire business verticals in one go c) Either of the above at the option of the Business

Group d) Either of the above at the discretion of the Proper

OfficerAns:-a) 35 separate applications in GST REG-01

Q. 14. There is a difference in taxability of goods forming part of composite supply and mixed supply. Here are few examples from which you need to identify which is correct example of composite supply and mixed supply.

i) Mr. A buys a car and purchases warranty and maintenance of the car by paying nominal amount. Car, warranty and maintenance here are a mixed supply.

ii) Mr. A buys a car and purchases warranty and maintenance of the car by paying nominal amount. Car, warranty and maintenance here are a composite supply.

iii) Mrs. A buys a microwave oven and some utensils for use in microwave oven. Both microwave oven and utensils are sold at a single price. Microwave oven and its utensils here are a mixed supply.

iv) Mrs. A buys chocolates, juices and biscuits from a shop. All items have different prices. Chocolates, juices and biscuitsare a mixed supply. The correct examples of composite and mixed supply are: - a) i,iv b) ii,iii c) ii,iii,iv d) None of the above

Ans:- b) ii,iii

Q. 15. Mr. Z has an agency of wholesale trading of a particular brand in Gas Stoves for Rajasthan and Gujarat and has separate proprietorship firms in each of the two States. In Gujarat, Mr. Z additionally trades in shoes from the same firm. In the context of the above information, which of the following statement is correct? a) Mr. Z can operate with single registration for Gas

Stoves business for Rajasthan and Gujarat. For Shoes business, he has to compulsorily take separate registration since it is different business vertical.

b) Mr. Z will have to get separate registration for each of the States i.e., Rajasthan and Gujarat for Gas stove Business. For shoes business, he has an option to register separate business verticals independently.

c) Mr. Z will have to compulsorily take 3 registrations two for Gujarat (Gas Stoves and Shoes separately) and one for Rajasthan business (Gas stoves).

d) Mr. Z can operate with single registration for Gas Stoves business for Rajasthan and Gujarat and Shoes business for Gujarat.

Ans:- b) Mr. Z will have to get separate registration for each of the States i.e., Rajasthan and Gujarat for Gas stove Business. For shoes business, he has an option to register separate business verticals independently.

Q. 16. M/s. Jolly Electronics (P) Ltd., is an authorized dealer of M/s. GG Micro Ltd., located and registered in Lucknow, Uttar Pradesh. It has sold following items to Mr. Alla Rakha (a consumer):

M/s. Jolly Electronics (P) Ltd. has given a single invoice, indicating price of each item separately to Mr. Alla Rakha. Mr. Alla Rakha, has given a single cheque of Rs. 1,00,000/- for all the items as a composite discounted price. State the type of supply and the tax rate applicable on the same.

a) Composite supply; Highest tax rate applicable to split air conditioner, i.e. 28%

b) Mixed supply; Highest tax rate applicable to split air conditioner, i.e. 28%

c) Supply other than composite and mixed supply; Highest tax rate applicable to split air conditioner i.e. 28%

Ans:- d) Supply other than composite and mixed supply; respective tax rate applicable to each item

Q. 17. Where any agent supplies goods on behalf of his principal:

(a) Such agent shall be jointly and severally liable to pay the GST payable on such goods.

(b) The principal shall be jointly and severally liable to pay the GST payable on such goods.

(c) Both (a) and (b)(d) None of the above

Ans:- c) (c) Both (a) and (b)

Q. 18. Which of the following transactions does not qualify as supply under GST law?

(a) Disposal of car without consideration and where the supplier has not claimed input tax credit on such car.

(b) When a principal makes supplies to his agent who is also registered and is situated within the same State.

(c) When the Head Office makes a supply of services to its own branch outside the State.

(d) When a person import services without consideration for the purposes of his business from his elder son living outside India.

Ans:- (a) Disposal of car without consideration and where the supplier has not claimed input tax credit on such car.

Q.19 Which of the following services received without consideration amount to supply?

1) Import of services by a person in India from his son well-settled in USA

2) Import of services by a person in India from his brother well-settled in Germany

3) Import of services by a person in India from his brother (wholly dependent on such person in India) in France

4) Import of services by a person in India from his daughter (wholly dependent on such person in India) in Russia

a) 1), 3) and 4)b) 2), 3) and 4)c) 2) and 3)d) 1) and 2)

Ans:- a) 1), 3) and 4)

Product Amount

refrigerator (500 litres) taxable@18%

Stabilizer for refrigerator @12%

LED television (42 inches) taxaxble @12%

Split air conditioner (2 tons) taxable @28%

Stabilizer for air conditioner taxable @12%

Total Value

40,000/-

5,000/-

30,000/-

35,000/-

5,000/-

1,15,000/-

3 Reverse Charge

Q.1 When was the notification in respect to suspension of RCM u/s 9(4) was being issued? a) 13th October 2017 b) 15th November 2017 c) 15th October 2017 d) None of the above

Ans:- a) 13 October 2017

Q. 2 In case of reverse charge who is liable to pay tax?(a) Supplier(b) Recipient(c) Both a and b(d) None of these

Ans:- (b) Recipient

Q. 3. Who are the persons liable to pay tax under reverse charge mechanism?

a) Registered Supplier b) Registered Recipient c) Unregistered Supplier d) Unregistered Recipient

Ans:- b) Registered Recipient

Q. 4 Sec 9(4) of CGST reverse charge is applicable when supply of goods or services by (a) Unregistered supplier to registered person(b)Unregistered supplier to unregistered person©) Registered supplier to registered person(d) Registered supplier to Unregistered person

Ans:- (a) Unregistered supplier to registered person

Q. 5. When is the person eligible to claim the tax in case of RCM?

a. Same month b. Next month c. Any of the two months d. In any month of the yearAns:- a. Same month

Q. 6. Can Input tax credit standing in the Electronic credit ledger be utilized for payment of tax under Reverse Charge Mechanism? a. Yes b. No c. Not Applicable d. May beAns:- b. No

Q. 7 Is ITC available to the supplier, supplying goods / services under Reverse Charge Mechanism

a. Yes b. No c. Not applicable d. Yes, if permitted by the authorityAns:- b. No

Q. 8. What is the amount of Input tax credit available to a

composite dealer falling under Reverse charge mechanism? a. 100% of tax paid b. 50% of tax paid c. Nil d. Some portion of tax paid Ans:- c. Nil

Q. 9. Which of the following statements are true? a. Self – invoicing must be done b. A single consolidated monthly invoice can be issued. c. Both statements are correct d. Both statements are incorrectAns:- a. Self – invoicing must be done

Q. 10 Is the below statement correct: “A person is not required to obtain registration if he is required to pay tax under reverse charge but he has not exceeded his threshold limit”

a. Incorrect, the person is required to take registration & pay tax under reverse charge irrespective the fact that threshold is crossed or not.

b. Incorrect, if the person is required to pay tax under reverse charge he shall obtain registration only if the value of supply under reverse charge exceeds the threshold limit.

c. Above statement is correct d. Correct, a person is required to obtain registration if he is

required to pay tax under reverse charge and, he is making taxable supplies irrespective of the threshold limit.

Ans:- a) Incorrect, the person is required to take registration & pay tax under reverse charge irrespective the fact that threshold is crossed or not.

Q.11.Micro Apparels in Chennai, Tamil Nadu, avails fashion designing services of ` 50,00,000 from Prabhu Designs in Singapore. Who is liable to pay GST? (a) Micro Apparels (b) Prabhu Designs (c) Both (d) None of the above.

Ans:- a) Micro Apparels

Q. 12 True or False: In case of legal services by an individual advocate including a senior advocate or firm of advocated, GST is payable by recipient if he is a business entity located in India. a) True b) Falsec) d)

Ans:- a) trueQ.13. ABC Pvt. Ltd. appointed Mr. Z as their independent

director and paid him the sitting fees. Is this supply covered under RCM?

a) Yes b) No c) Not taxable at all d) Taxable under forward chargeAns:- a)Yes

Q. 14. GST is payable by recipient of services in the following cases:- (i)Services provided by way of sponsorship to ABC Ltd.(ii)Services supplied by a director of Galaxy Ltd. to Mr.

Krishna. (iii)Services by Department of Posts by way of speed

post to MNO Ltd. (iv)Services supplied by a recovering agent to SNSP

Bank (a) (i) & (iii) (b) (i) & (iv) (c) (ii) & (iii) (d) (ii) & (iv)

Ans:- b) (i)&(iv) Q. 15. In case of Goods Transport Agency (GTA) services,

tax is to be paid under forward charge if: (a) GST is payable @ 12% (b) GST is payable @ 5% and a factory registered under

the Factories Act, 1948 is the recipient of GTA service.

(c) GST is payable @ 5% and an unregistered individual end customer is the recipient of GTA service.

(d) None of the above

Q.16.Express Parcel Post Services provided by Department of Post to a business entity. The GST is liable to be paid by:

(a) business entity (b) Department of Post (c) Exempted supply (d) Not at all supply.Ans:- (b) Department of Post

Q.17.Mr. A businessman who take legal service from individual advocate and pay the tax under RCM by using

(a) Electronic credit ledger (b) Electronic cash ledger(c) Both a and b(d) None of the aboveAns:- (b)Electronic cash ledger

Q.18 ABC Ltd. avail service of Rudra goods transport agency for transportation of goods from factory located in Mumbai to its Nasik depot and paid freight `1,00,000 and GST is applicable @ 5%. Who will pay GST?

(a) Rudra goods transport agency(b) XYZ Ltd. company(c) both a 50% and b 50%(d) None of the aboveAns:- (b) XYZ Ltd. company

Q.19 Bharat Jewellers paid `50,00,000 for sponsorship

of Miss India beauty pageant for sponsorship service. Who is liable to pay GST?

(a)Bharat Jewellers (b)Miss India Beauty(c)both a 50% and b 50%(d)None of the aboveAns:- (b)Miss India Beauty

Q. 20 GST is payable by the recipient under reverse

charge on (a) Sponsorship service (b) Transport of goods by rail(c) transport of passenger by air(d) all of the aboveAns:- (a)Sponsorship service Q. 21 Kokilabehen is appointed as an arbitral tribunal to

reliance Industry Ltd. GST is payable by (a) kokilabehen (b) Reliance Industry Ltd.(c) Service of arbitral tribunal is Exempt(d) service of arbitral tribunal is not a supply Ans:- (b)Reliance Industry Ltd.

Q. 22 Mr. CA Vishal appointed as a director of ABC Ltd. company (not in capacity of employee) an earn sitting fees ̀ 5,00,000. Who is liable to pay GST ?

(a) Mr. CA Vishal(b) ABC Ltd. Company(c) Exempt supply(d) Not cover in a supplyAns:- (b)ABC Ltd. Company

Q. 23 Mr Veer is an agent of Life Insurance company. The insurance company pays commission ` 8,00,000 excluding taxes. Who is liable to pay GST ?

(a) Mr. Veer(b) Life insurance company(c) Exempt supply(d) no GST because taxable supply not exceed ̀ 20 lakhAns:- (b)Life insurance company

Q. 24 In which case Govt. is not liable to pay tax (a) Renting of immovable property to registered person(b) Renting of immovable property to other than registered

person (c) Renting of immovable property for residential dwelling(d) All of the aboveAns:- (a) Renting of immovable property to registered

person

Q. 25 Goods transportation agency (GTA) is registered and does not avail the ITC. He provides GTA services to another registered person. Will this transaction

fall under RCM? What shall be the GST Rate? a. RCM applicable, Rate – 5% b. RCM applicable, Rate – 12% c. RCM not applicable, Rate – 18% under forward charge d. Not taxableAns:- a. RCM applicable, Rate – 5%

Q. 26. ABC Pvt. Ltd. has taken consultancy services from an engineer in USA. Who shall be liable to pay tax and under what head? a. ABC Pvt. Ltd. will pay the tax, IGST b. ABC Pvt. Ltd. will pay the tax, CGST and SGST

c. Engineer will pay the tax, IGST d. Engineer will pay the tax, CGST & SGSTAns:- a. ABC Pvt. Ltd. will pay the tax, IGST

Q. 27. Mr. A was having Rs.50,000 in his credit ledger in the month of January, 2018 and in the same month he made purchases on which tax of Rs. 30,000 under RCM was to be paid. Which of the following method can be used for the same? a. Pay Rs. 30,000 by utilizing ITC of Rs. 50,000 b. Pay Rs. 30,000 from cash ledger c. Pay Rs. 15,000 by cash and utilize ITC for the balance

amount d. Anyone of the above can be followedAns:- b. Pay Rs. 30,000 from cash ledger

Q. 28. GTA is under expansion mode and is acquiring lot of trucks for the transportation. It wants to take the ITC on such capital goods. What rate shall he charge in order to avail the ITC? a. 18% b. 12% c. 5% d. 28% Ans:- b. 12%

Q. 29. ABC National Bank appointed Mr. A, a recovery agent in order to recover the amount paid to a defaulter Mr. B. who shall pay the tax in this supply? a. ABC National Bank b. Mr. A c. Mr. B d. None of them Ans:- a. ABC National Bank

Q. 30. Mr. B, a GTA in Delhi supplied services of Rs. 60,000 to Mr. Q, a registered person in Delhi and the entire amount was being paid to the GTA. What shall be the tax amount to be paid under RCM? a. Rs. 1,500 each in CGST and Delhi GST b. Rs. 3,000 in IGST c. Rs. 2,857 each in CGST and Delhi GST d. Rs. 2,857 in IGST

Ans:- a. Rs. 1,500 each in CGST and Delhi GST

Q. 31. In case of Goods Transport Agency (GTA) services, tax is to be paid under forward charge if: (a) GST is payable @ 12% (b) GST is payable @ 5% and a factory registered under

the Factories Act, 1948 is the recipient of GTA service. (c) GST is payable @ 5% and an unregistered individual

end customer is the recipient of GTA service. (d) None of the aboveAns:- (a) GST is payable @ 12%

Q. 32. Which category of supply specify in sec 9(5)? (a) Supply of goods only(b) Supply of service only(c) Both a and b(d) None of the aboveAns:- (b) Supply of service only

Q.33.Which supply of service is specified under sec 9(5) (a) Supply through ECO transportation of passengers by

cab (b) Supply through ECO renting of accommodation by

unregistered hotels(c) Supply through ECO service by unregistered

plumber, housekeeper, etc.(d) all of the above

Ans:- (d)all of the above

Q. 34. Ola being an E – commerce operator provides cab services to the passengers through various local service providers. The liability to pay tax on such services shall be applicable to:

a. Ola b. Passengers c. Local Service Providers d. NoneAns:- a. Ola

Q. 35. Mr. Alok had to transport his personal goods from Mumbai to Goa. He contacts Sigma travel services. Sigma travels is passenger bus traveler and also does transportation of goods i.e., Goods Transport Agency. He transports goods of all persons including non- passengers. Mr. Alok hands over the goods to Sigma travel services. Sigma travels issues consignment note for his goods. Alok is an unregistered person. What will be GST scenario in this case?

a) Goods transport agency service rendered to un-registered person is exempt from tax

b) Goods transport agency is required to pay GST under reverse charge for service rendered to un-registered person

c) Unregistered person is required to pay GST to transport agency which in turn will be deposited by Goods transport agency to government.

d) None of the aboveAns:- a) Goods transport agency service rendered to un-

registered person is exempt from tax

Q. 36. Which of the following legal services does not fall under RCM provisions as contained under section 9(3) of the CGST Act-(a) Representation services provided by an individual advocate(b) Representation services provided by a senior advocate(c) Representation services provided by a firm of advocates(d) Legal services provided by an advocate to an unregistered individual Ans:- (d) Legal services provided by an advocate to an unregistered individual

4Composition

Scheme

Q. 1. The total composition rate of tax for manufacturers under composition scheme is:(a) 0.5% of turnover (b) 5% of turnover (c) 1% of turnover (d) 2.5% of turnover.Ans:- c) 1% of turnover

Q. 2. ABC Ltd., a manufacturer has got itself registered in Delhi on 1.2.2018 in composition scheme. It makes a supply to XYZ Ltd., a registered entity in Delhi. It is confused in respect to what is the GST rate applicable on it under CGST?

a. 0.5%b. 1%c. 2%d. 2.5%

Ans:- a) 0.5%

Q. 3.To be eligible for registration under Composition scheme it is required that the aggregate turnover of a registered tax-payer should not exceed __________ in the preceding financial year. (The limit is _______ for Special Category States (other than State of J&K & Uttrakhand)

(a) Rs. 1,00,00,000; Rs. 75,00,000 (b) Rs. 50,00,000; Rs. 75,00,000 (c) Rs. 50,00,000; Rs. 25,00,000 (d) None of the above

Ans:- (a) Rs. 1,00,00,000; Rs. 75,00,000

Q. 4. Mr. Fardeen Khan, is the owner of a proprietorship firm (located in the State of Jammu and Kashmir), which is engaged in trading of ice-cream (not containing cocoa) and supplies the same locally within the same State itself. The turnover details of his firm are as under:Ü For the period April, 2016 to March, 2017: Rs.

80,00,000/-Ü For the period April, 2017 to June, 2017: Rs.

25,00,000/-Ü For the period July, 2017 to March, 2018:

Rs.75,00,000/-He wants to opt for Composition Scheme. State the composition turnover limit for the State of Jammu and Kashmir and whether he is eligible to opt for Composition Scheme or not.a) Rs. 75,00,000/-: Yesb) Rs. 75,00,000/-: Noc) Rs. 1,00,00,000/-: Yes d) Rs. 80,00,000/-: YesAns:- c) Rs. 1,00,00,000/-: Yes

Q. 5. Mr. X, a registered supplier of Meghalaya wants to opt for composition levy. The turnover limit for composition levy is-

(a) Rs. 50 lakh (b) Rs. 75 lakh (c) Rs. 1 crore

(d) none of the aboveAns:- (b) Rs. 75 lakh

Q. 6. According to Section 2 (6) of the CGST Act, 2017 “aggregate turnover” will include

(A) value of all taxable supplies (B) value of all outward supplies – whether taxable or

non-taxable, whether exempt or non-exempt, whether zero-rated or not, whether under forward charge or reverse charge

(C) value of outward supplies as well as inward supplies on which tax is payable on reverse charge basis

(D) value of outward supplies under forward charge and value of inward supplies with reverse charge

Ans:- (B) value of all outward supplies – whether taxable or non-taxable, whether exempt or non-exempt, whether zero-rated or not, whether under forward charge or reverse charge

Q. 7.Which of the following will be excluded from the computation of turnover?

a) Value of taxable supplies b) Value of exempt Suppliesc) Non-taxable supplies d) Value of inward supplies on which tax is paid on

reverse charge basisAns:- d) Value of inward supplies on which tax is paid on

reverse charge basis

Q. 8.In computation of aggregate turnover for composition levy, which of the following item should be excluded from the aggregate turnover?

(a) The value of exported goods/services (b) Inter-state supplies between distinct persons having

same PAN (c) Compensation Cess (d) Supply on own account and on behalf of principal.

Ans:- (c) Compensation Cess

Q. 9. Raj Ltd. is having 4 places of business – 2 in Delhi (Registered), 1 in Maharahstra (Registered) and 1 in Madras (Unregistered as selling Alcholic liquor for human consumption) 'Aggregate Turnover' shall be

(A) Aggregate TO from all 4 places of business (having same PAN);

(B) Aggregate TO of all registered places – 2 places in Delhi and 1 in Maharashtra (registered with same PAN);

Ans:- a) Aggregate TO from all 4 places of business (having same PAN);

Q. 10. Rama Ltd. has provided following information for the month of September:

(I) Intra-State outward supply ̀ 8,00,000/- (ii) Inter-State exempt outward supply` 5,00,000/- (iii) Turnover of exported goods ̀ 10,00,000/- (iv) Payment made for availing GTA services ̀ 80,000/- Calculate the aggregate turnover of Rama Ltd. (a) ̀ 8,00,000/-

(b) ̀ 23,80,000/- (c) ̀ 23,00,000/- (d) ̀ 18,00,000/-Ans:- (c) ̀ 23,00,000/-

Q. 11 ABC Pvt. Ltd. is having place of business in 3 states namely Haryana, Punjab & Rajasthan each having turnover of Rs. 20 lacs, 60 lacs, 80 lacs respectively. Which State is eligible to opt for composition scheme?

a. Haryanab. Punjabc. Rajasthand. None of the above

Ans:- d. None of the above

Q. 12. As per the CGST Act, 2017, “exempt supply” means supply of any goods or services

(i) Which attracts nil rate of tax (ii) Which may be wholly exempt from tax u/Sec 11 or

u/Sec 6 of the IGST Act (iii) Which is non-taxable supply Select the correct

answer from the options given below : (A) (ii) (B) (I)(c) (iii) (D) All of the above

Ans:- (D) All of the above

Q. 13. ABC Ltd., a trader has got itself registered in Delhi on 1.2.2018 in composition scheme. In the month of Aug’18, it make supply of taxable goods worth Rs. 3 lacs and exempted goods worth Rs. 1 lac. On what value it shall pay the GST to the Government?

a. Rs. 1 lacb. Rs.3 lacsc. Rs.4 lacsd. Rs.2 lacs

Ans:- b. Rs.3 lacs

Q. 14. Mr. Bala has made supply (within State) of a taxable goods to the turn of Rs. 17 lakh, export supplies of Rs. 3 lakh and intra-state supply of exempt services of Rs. 4 lakh. His aggregate turnover as per section 2(6) of the CGST / SGST Act, 2017 is :

(a) Rs. 17 Lakhs (b) Rs. 20 Lakhs (c) Rs. 24 Lakhs (d) None of the above

Ans:- c) (c) Rs. 24 Lakhs

Q. 15 ABC Pvt. Ltd., a registered entity in Delhi in composition scheme has received order from 4 states as specified below of Rs. 5 lacs, 6 lacs, 7 lacs & 2 lacs respectively. Being a composition dealer, which order can he

accept?a. Delhib. Haryanac. Rajasthand. Maharashtra

Ans:- a. Delhi

Q.16. Mr. A, a composition dealer who trades in garments has received an order from China of Rs 5 lacs. Can accept this order?

(a) Yes(b) No(c) Maybe(d) Yes, with prior permission of Central GovernmentAns:-(b) No

Q.17. Mr. Kanjoos located in Delhi wants to opt for composition scheme for financial year 2018-19. He is engaged in trading of branded flour which is taxable @ 5% and unbranded flour which is taxable at 0%. Turnover of branded flour in FY 2017-18: Rs. 70,00,000 Turnover of unbranded flour in FY 2017-18: Rs. 20,00,000 He was also providing service in the previous year by way of renting of a residential unit for which he is charging Rs. 1,00,000 per month as rent. Calculate his aggregate turnover to determine his eligibility to opt for composition scheme?

(a) Rs. 90,00,000 (b) Rs. 70,00,000 (c) Rs. 1,02,00,000 (d) Rs. 91,00,000

Ans:- (a) Rs. 90,00,000

Q.18. Which of the following manufacturer cannot opt for composition levy?

(a) Manufacturer of pan masala (b) Manufacturer of ice cream (c) Manufacturer of tobacco substitutes (d) All of the above


Q. 19. Which of the following persons can opt for the composition scheme? 1) Registered person whose aggregate turnover in the

preceding financial year did not exceed Rs. 75 lakh.

2) Registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 1 crore.

3) A person engaged in business of Pan Masala, Tobacco and manufactured tobacco substitutes

4) A person engaged in the business of Ice Cream, other edible ice, whether or not containing Cocoa.

5) A person engaged exclusively in the providing restaurant service.

6) A person engaged exclusively in supply of medicines.

Which of the above are correct:- (a) 1,2,3,5 (b) 1,2,5,6(c) 2,3,4,5 (d) 3,4,5,6

Ans:- (b) 1,2,5,6

Q. 20. Which of the following statements is not correct for a tax payer who has opted for composition scheme?

(a) A registered person supplying goods under the composition scheme shall issue a bill of supply.

(b) Last date for payment of liability towards tax, interest, penalty, fee or any other sum is 20th day of each month.

(c) A composition dealer shall mention the words “Composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply issued by him.

(d) Last date for payment of liability towards tax, interest, penalty, fee or any other sum is 18th day of the month following each quarter.

Ans:- (b) Last date for payment of liability towards tax, interest, penalty, fee or any other sum is 20th day of each month

Q. 21. Which of the following person cannot opt for composition scheme?a. Mr. B, a garment trader having turnover of Rs. 40

lacs. He further rents out his shop and charges Rs. 70,000 per month.

b. Mr. C, manufacturer of hand bags having turnover upto Rs. 60 lacs

c. Mr. D, selling hand bags through e – commerce portal which is not liable to collect tax at source U/s 52

d. None of the aboveAns:- a. Mr. B, a garment trader having turnover of Rs.

40 lacs. He further rents out his shop and charges Rs. 70,000 per month.

Ans:- a. Mr. B, a garment trader having turnover of Rs. 40 lacs. He further rents out his shop and charges Rs. 70,000 per month.

Q. 22. In which of the following condition the person cannot pay tax under composition scheme?

(a) he was not engaged in the manufacture of goods as notified under clause (e) of sub-section (2) of section 10, during the preceding financial year.

(b) he shall mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply issued by him.

(c) He is a casual taxable person (d) the goods held in stock by him on the appointed day

have not been purchased in the course of inter-State trade

Ans:- (c) He is a casual taxable person

Q. 23. Which of the following persons is not eligible for composition scheme even though their aggregate turnover does not exceed Rs. 1 crore in preceding FY, in Uttar Pradesh?

a) A person supplying restaurant servicesb) A person supplying restaurant services and earning

bank interestc) A person supplying restaurant services and

warehousing of riced) A person supplying restaurant services and

warehousing of processed teaAns:- d) A person supplying restaurant services and

warehousing of processed tea

Q. 24. Whether a restaurant serving alcohol along with other foods etc. to its customers can opt for composition scheme under Section 10?

a. Yesb. Noc. None of the aboved. MaybeAns:- b. No

Q. 25. Can a person paying tax under composition scheme make supplies of goods to SEZ located in same State?

a. Yesb. Noc. Yes, subject to prior approval of the Central

Governmentd. Yes, subject to prior approval of the concerned

State Government

Q. 26. ABC Pvt. Ltd., a Mumbai based manufacturer of the pan masala, has started manufacturing biscuits within same PAN. His threshold of Rs. 20 lacs is crossed but is expected to be below Rs. 80 lacs in the current financial year. Can he opt for composition scheme?

a. Yesb. Noc. Maybed. Yes, with prior approvalAns:- b. No

Q.27. Mr. A is a manufacturer of ice cream. If all other conditions satisfies, the total effective composition tax rate will be:

(a) 1% (b) 5%(c) 2% (d) Not eligible for composition scheme.

Ans:- d) Not eligible for composition scheme.

Q. 28 Which of the following persons can opt for the composition scheme? 1) Registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 75 lakh. 2)

Registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 1 crore. 3) A person engaged in business of Pan Masala, Tobacco and manufactured tobacco substitutes 4) A person engaged in the business of Ice Cream, other edible ice, whether or not containing Cocoa. 5) A person engaged exclusively in the providing restaurant service. 6) A person engaged exclusively in supply of medicines.

Which of the above are correct:- (a) 1,2,3,5(b) 1,2,5,6 (c) 2,3,4,5 (d) 3,4,5,6 Ans:- (b) 1,2,5,6

Q. 29. ABC Ltd., a person registered in composition scheme, operating in 4 different states has filed the withdrawal intimation in one State. Will this intimation be applicable to all places of business?

a. Yesb. Noc. Yes, but with prior permission of Central

Governmentd. No, but with prior permission of respective State

GovernmentAns:- a. Yes

Q. 30.Can a registered person opt for composition scheme only for one out of his 3 business verticals having same Permanent Account Number?

a) Yes b) No c) Yes, subject to prior approval of the Central

Government d) Yes, subject to prior approval of the concerned

State GovernmentAns:- b) No

Q. 31. Calculate the tax to be paid by Mr. A, a composition dealer who is involved in trading of garments. Details of his business is as below:

Purchases = Rs. 30,000 (including GST of 4,500)Cost of products sold = Rs. 7,00,000Invoice value = Rs. 9,00,000a. Rs. 3,000b. Rs. 7,000c. Rs. 9,000d. Rs. 2,542Ans:- c. Rs. 9,000

Q. 31. ABC Pvt. Ltd., has started his business in Delhi a n d h a s g o t h i m s e l f r e g i s t e r e d i n Composition Scheme. He has purchased

capital goods worth Rs. 1,28,000 (tax amount Rs. 28,000) and inputs worth Rs. 50,000 (tax amount Rs. 7,000). What is the eligible amount of ITC that it can claim?

a. Rs. 28,000b. Rs. 7,000c. Rs. 35,000d. Zero

Ans:- d. Zero

Q. 32. Will composition supplier make the payment of CGST & SGST in separate heads or shall make one combined payment?a. Yes, pay under separate headsb. No, pay a consolidate amountc. Maybed. Make payment under IGSTAns:-a. Yes, pay under separate heads

Q. 33 Grand Foods is engaged in supplying restaurant service in Delhi. In the preceding financial year, it has an aggregate turnover of ` 90 lakh from restaurant service and ` 10 lakh from supply of farm labour and has earned a bank interest of ̀ 10 lakh. Which of the following statements are true in the given case? (1) Aggregate turnover of Grand Foods, for

determining eligibility for composition scheme, in the preceding FY is ̀ 90 lakh.

(2) Aggregate turnover of Grand Foods, for determining eligibility for composition scheme, in the preceding FY is ̀ 100 lakh.

(3) Aggregate turnover of Grand Foods, for determining eligibility for composition scheme, in the preceding FY is ̀ 110 lakh.

(4) Supply of farm labour and supply of service of extending loans/deposits does not make Grand Foods ineligible for composition scheme.

(5) Supply of services other than restaurant service - supply of farm labour and supply of service of extending loans/deposits - by Grand Foods makes it ineligible for composition scheme.

(a) (1) and (4) (b) (2) and (4) (c) (1) and (5) (d) (3) and (5)

Ans:- a) (1) and (4)

Q. 34. Can the person operating in regular scheme shift to composition scheme in middle of the financial year?(a) Yes(b) No(c) None of the above(d)

Ans:- (b) No

Q. 35. Can a registered person opting for composition scheme collect GST on his outward supplies?

(a) Yes, in all cases (b) Yes, only on such goods as may be notified by the Central Government (c) Yes, only on such services as may be notified by the Central Government (d) No

Ans:- d) No

Q. 36. A Is composition dealer required to maintain books of account as per GST Laws?

a) Yesb) No c) May be d) None of the above

Ans:- a) Yes

Q.37. In which form can the person file for withdrawal of composition scheme? a) Form GST CMP-01 b) Form GST CMP-02 c) Form GST CMP-03 d) Form GST CMP-04

Ans:- d) form GST CMP-04

Q. 38. A person who has opted for composition levy is required to file quarterly return in Form GSTR-4 on or before:

(a) 18th day of the succeeding the quarter (b) 20th day of the succeeding the quarter (c) 25th day of the succeeding the quarter (d) 30th day of the succeeding the quarter.

Ans:- (a) 18th day of the succeeding the quarter

Q. 39. Which of the following information is not required to be furnished by a composition taxpayer for quarter April to June in FORM GSTR-4?

(i) import of service (ii) invoice wise inter-State and intra-State inward supplies received from un-registered persons

(iii) invoice wise inter-State and intra-State outward supplies made to registered persons

(iv) invoice wise inter-State and intra-State outward supplies made to un-registered persons

(a) (I), (ii) (b) (iii), (iv) (c) (I), (ii), (iv) (d) All of the above

Ans:- (b) (iii), (iv)

5 Time of Supply

Q. 1. Which section governs the provisions regarding determining time of supply of goods?a. Section 12b. Section 13c. Section 14d. Section 15

Ans:- a. Section 12

Q. 2. Which section governs the provisions regarding determining time of supply of services?a. Section 12b. Section 13c. Section 14d. Section 15

Ans:- b. Section 13

Q. 3. The time of supply fixes the point when the _______________ to / of GST arises.

a. Liabilityb. Paymentc. Provisiond. Recovery

Ans:- a. Liability

Q. 4. Reverse charge means the liability to pay tax by the _______________ of goods or services or both instead of the _______________ of such goods or services or both.a. Recipient, Supplierb. Recipient, Agentc. Supplier, Recipientd. Agent, Recipient

Ans:- a. Recipient, Supplier

Q. 5. What is the date of receipt of payment?a. Date on which payment is entered in the books of

accountb. Date on which payment is credited to the bank accountc. Earlier of (a) or (b)d. Either of (a) or (b)Ans:- c. Earlier of (a) or (b)

Q. 6. What is time of supply of goods, in case of forward charge?

a. Date of issue of invoiceb. Due date of issue of invoicec. Date of receipt of consideration by the supplierd. Earlier of (a) & (b)

Q. 7. What is time of supply of goods, in case of supplier opting for composition levy under Section 10 of the CGST Act, 2017?

a. Date of issue of invoiceb. Date of receipt of consideration by the supplierc. Later of (a) & (b)d. Earlier of (a) & (b)

Q. 8. Which notification removed the requirement of

payment of tax on advance receipt case of supply of goods?

a. Notification No. 10/2017 – Central Tax dated 15.11.2017

b. Notification No. 66/2017 – Central Tax dated 15.11.2017

c. Notification No. 70/2017 – Central Tax dated 15.11.2017

d. None of the aboveAns:- b. Notification No. 66/2017 – Central Tax dated

15.11.2017

Q. 9. The relaxation of non payment of taxes on the advance receipt is only to the supplier of goods and not to the providers of service.

a. Correctb. Incorrectc. Partially correctd. None of the aboveAns:- a. Correct

Q. 10. Mr. Ram sold goods to Mr. Shyam worth ` 5,00,000. The invoice was issued on 15th November. The payment was received on 30th November. The goods were supplied on 20th November. The time of supply of goods will be:—

(a) 15th November (b) 30th November (c) 20th November (d) None of the above.

Ans:- a) 15th November

Q. 12. M/s ABC made an arrangement with M/x PQR for supply of goods on 15th July, at this time goods didn't cross frontiers. The payment of goods has been made on 16th July, while the invoice was made on 18th July. What will be the time of supply in such a case? a) 15th July b) 16th July c) 18th July d) 16th July or 18th July whichever is suitable to supplier

Ans:- c) 18th July

Q. 13. Determine the time of supply of goods a) Date of issue of Invoice by supplier - 21st July b) Date of dispatch of goods by the supplier – 22nd July c) Date of receipt of payment in bank account – 15th June

d) Date of record of payment in books of account – 17th June

Ans:- a) Date of issue of Invoice by supplier - 21st July

Q.14. Banke Bihari (Pedewala), is a famous sweets maufacturer, located and registered in Mathura, Uttar Pradesh. He received an order for 200 Kg. of sweets on 2nd November, 2018 from M/s.

Statement of accounts issued by supplier for the quarter july-September

Differential payment of ` 56,000 received by supplier for the quarter July-September as per statementof accounts

Ghoomghoom Travels (P) Ltd., located and registered in same locality of Mathura for a total consideration of Rs. 1,00,000/- on occasion of Diwali festival. All 200 Kg. sweets were delivered to M/s. Ghoomghoom Travels (P) Ltd. on 5th November, 2018, but without invoice, as accountant of Mr. Banke Bihari was on leave on that day. However, the invoice was raised for the same on 6th November, 2018, when the accountant joined the office after leave. Payment in full was made on 7th November, 2018.Determine the time of supply of goods in this case.a) 2 nd November, 2018b) 5 th November, 2018c) 6 th November, 2018d) 7 th November, 2018Ans:- b) 5 th November, 2018

Q. 15. What is time of supply of goods liable to tax under reverse charge mechanism?

a. Date of receipt of goodsb. Date on which the payment is madec. Date immediately following 30 days from the date

of issue of invoice by the supplierd. Earlier of (a) or (b) or (c)Ans:- d. Earlier of (a) or (b) or (c)

Q. 16. On 04.09.2018, supplier invoices goods taxable on reverse charge basis to ABC & Co. ABC & Co. receives the goods

on 12.09.2018 and makes payment on 30.9.2018. determine the time of supply.

a. 04.09.2018b. 04.10.2018c. 12.09.2018d. 30.09.2018Ans:- c. 12.09.2018

Q. 17. Kutch Refineries supplies LPG to XYZ Ltd. by a pipeline under a contract. The terms of contract are: (i) Monthly payment of ` 2 lakh to be made by the recipient on fifth day of the month. (ii) A quarterly statement of the goods dispatched and payments made will be issued by seventh day of the month succeeding the relevant quarter.

Which of the following statements is true? (a) Invoice will be issued on August 5, September 5,

October 5 and October 7.

(b) Invoice will be issued on August 5, September 5 and October 5.

(c) Invoice will be issued on August 5, September 5, October 5, October 7 and October 17

(d) None of the above Ans- a) Invoice will be issued on August 5, September

5, October 5 and October 7.

Q. 18. Mr. A, who has opted for composition levy, supplies goods worth Rs. 24,300 to Mr. B and issues an invoice dated 25.09.2018 for Rs. 24,300. and Mr. B pays Rs. 25,000 on 1.10.2018 against such supply of goods. The excess Rs 700 (being less than Rs. 1,000) is adjusted in the next invoice for supply of goods issued on 5.01.2018. Identify the time of supply and value of supply:

a. Rs. 25,000 – 1.10.2018b. For Rs. 24,300 – 25.09.2018 and for Rs. 700 –

1.10.2018c. For Rs. 24,300 – 25.09.2018 and for Rs. 700 –

5.10.2018.d. (b) or (c) at the option of supplier, who has

opted for composition levyAns:- d. (b) or (c) at the option of supplier, who

has opted for composition levy

Q. 19. What is the time of supply of service if the invoice is issued within 30 days from the date of provision of service?a. Date of issue of invoiceb. Date on which the supplier receives paymentc. Date of provision of serviced. Earlier of (a) & (b)Ans:- d. Earlier of (a) & (b)

Q.20. Mr. X enters into a contract with a client for supply of certain services on 18.12.2017. GST is payable on such services under forward charge. Services are supplied on 25.12.2017 and invoiced on 05.01.2018. The client makes payment by cheque for the services on 29.12.2017 and such payment is credited to the bank account of Mr. X on 06.01.2018. The payment is recorded in the books of account of the client and Mr. X on 30.12.2017 and 07.01.2018 respectively. The time of supply of services is:

(a) 29.12.2017 (b) 30.12.2017 (c) 06.01.2018

Ans:- (d) 05.01.2018

Q. 21. M/s. Radhika Travels (P) Ltd., purchased a bus chassis from M/s. Jyoti Motors Ltd., for a consideration of Rs. 80.00 Lakh on 1-Aug-2018. M/s. Radhika Travels (P) Ltd., sent the bus chassis for body building to M/s. Hanumant Fabricators,

August 5, September 5, October 5

October 7

October 17

Payments of ` 2 Lakh made in each month

and paid in advance the total consideration of Rs. 25.00 Lakh on 10-Aug2018. M/s. Hanumant Fabricators, after completing the bus body, informed M/s. Radhika Travels (P) Ltd., for inspection of the work done on 1-Sep-2018. M/s. Radhika Travels (P) Ltd., visited the work shop of M/s. Hanumant Fabricators, on 7-Sep-2018, and confirmed that the bus body was in accordance with the terms of the contract. M/s. Hanumant Fabricators, raised an invoice of Rs. 25.00 Lakh on 15-Sep-2018, and supplied chassis along with the bus body so constructed, along with the invoice on 16-Sep-2018.

State the time of supply in this case, out of the choices given below-

a) 10-Aug-2018b) 7-Sep-2018c) 15-Sep-2018d) 16-Sep-2018Ans:- a) 10-Aug-2018

Q. 22. Mr. A purchases redeemable vouchers worth INR 8000/- on 1st January. The vouchers are redeemable against purchase of any goods. The vouchers are valid till 30th June. What will be the time of supply in case of such vouchers?

a) 1st January b) 30th June c) The date of redemption of vouchers d) None of the above

Ans:- c) The date of redemption of vouchers

Q. 23. Value of services rendered is Rs. 1,00,000/. Date of issue of invoice is 5th October 2018. Advance Received is Rs. 25,000/- on 20th September 2018. Balance amount received on 7th October 2018. What is the time of supply for Rs. 1,00,000/-a. 5th October 2018 for Rs. 1,00,000/-b. 20th September 2018 for Rs. 1,00,000/-c. 20th September 2018- Rs.25,000/- and 5th

October 2018 for Rs. 75,000/-d. 20th September 2018- Rs. 25,000/- and 7th

October 2018 for Rs. 75,000/-Ans:- c. 20th September 2018- Rs.25,000/- and 5th

October 2018 for Rs. 75,000/-

Q. 24. What is the time of supply of service in case of reverse charge mechanism?

a. Date of payment as entered in the books of account of the recipient

b. Date immediately following 60 days from the date of issue of invoice

c. Date of invoiced. Earlier of (a) & (b)

Ans:- d. Earlier of (a) & (b)

Q. 25 What is the time of supply of service in case an associated enterprise receives services from the service provider located outside India?

a. Date of entry in the books of account of associated enterprise(recipient)

b. Date of paymentc. Earlier of (a) & (b)d. Date of entry in the books of the supplier of service Ans:- c. Earlier of (a) & (b)

Q. 26. Continuous supply of services means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding _____________ with ________________ payment obligations.

a. 1 year, annualb. 3 months, periodicc. 6 months, half yearlyd. 1 year, periodicAns:- b. 3 months, periodic

Q. 27. What is the time of supply of service for the supply of taxable services up to Rs.1000 in excess of the amount indicated in the taxable invoice?

a. At the option of the supplier – Invoice date or Date of receipt of consideration

b. Date of issue of invoicec. Date of receipt of consideration.d. Date of entry in books of accountAns:- a. At the option of the supplier – Invoice date or

Date of receipt of consideration

Q. 28. What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?

a. Date of issue of voucherb. Date of redemption of voucherc. Earlier of (a) & (b)d. (a) & (b) whichever is laterAns:- a. Date of issue of voucher

Q. 29. What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?

a. Date of issue of voucherb. Date of redemption of voucherc. Earlier of (a) & (b)d. (a) & (b) whichever is laterAns:- b. Date of redemption of voucher

Q. 30. ABC Ltd. has purchased for its customers 50 vouchers dated 20.8.2018 worth Rs.100 each from PQR Ltd., a footwear manufacturing company. The vouchers were issued by ABC Ltd. on 20.09.2018. the vouchers can be

encashed at retail outlets of PQR Ltd. The employees of ABC Ltd. encashed the same on 01.10.2018. Determine the time of supply of vouchers.a. 20.08.2018b. 20.09.2018c. 01.10.2018d. Supply is not identified

Ans:- b. 20.09.2018

Q. 31. Ms. A purchased a gift voucher (it can be redeemed against any product of the departmental store) from a super market worth Rs.2,000 on 30.7.2018 and gifted it to her friend on the occasion of her marriage on 05.08.2018. her friend encashed the same on 01.09.2018 for purchase of a watch. Determine the time of supply.a. 30.07.2018b. 05.08.2018c. 01.09.2018d. Supply is identified

Ans:- c. 01.09.2018

Q. 32 M/s. Tanatan received testing services from Aquarian Solution (P) Ltd. on 10-May-2018. The payment was entered in the books of account of M/s. Tanatan on 16-May-2018 and was credited in the bank account of supplier on 19-May-2018. In the meantime, supplier issued invoice on 18-May-2018. What will be the time of supply in this case? a) 10-May-2018 b) 18-May-2018 c) 16-May-2018 d) 19-May-2018

Ans:-(b) 18-May-2018

Q. 33. What is the time of supply of goods in residuary cases, in case where a periodical return has to be filed?a. Date on which return is to be filedb. Actual date of filing of returnc. Date of payment of taxd. Date of collection of tax

Ans:- a. Date on which return is to be filed

Q. 34. What is the time of supply in case of addition in the value of way of interest, late fee or penalty or any delayed payment of consideration?

a. Last date on which such late fees / penalty has been charged

b. Date of payment of such additional amountc. Date of collection of whole amountd. It doesn’t constitute supply

Ans:- b. Date of payment of such additional amount

Q. 35. Mr. A entered into a contract with mr. C & agreed to make the payment by 30th September 2018. if the payment is not made in time, then he shall pay late fees @ Rs. 100/day. No payment of late fees has been made so far. What shall be the time of supply in respect of the late fees due on mr. A? a) September 2018 b) October 2018 c) Time of supply has not arisen d) None of the above

Ans:- c) Time of supply has not arisen

Q. 36. Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply. Which section will govern the time of supply provisions in this case? a) Section 12 b) Section 13 c) Section 14 d) Section 15

Ans:- a) Section 12

Sec 14

Q. 37. Om which of the following situations, ‘New rate’ shall be applicable?

a. When the goods have been supplied before the change in rate of tax but issue of invoice and receipt of payment is after the change in rate of tax.

b. When the goods have been supplied after the change in rate of tax but issue of invoice and receipt of payment is before the change in rate of tax.

c. When the supply of goods and issue of invoice has been done before the change in rate of tax but receipt of payment is after the change in rate of tax.

d. When the supply of goods and receipt of payment has been done before the change in rate of tax.

Ans:- a. When the goods have been supplied before the change in rate of tax but issue of invoice and receipt of payment is after the change in rate of tax.

Q. 38. In which of the following situations, ‘Old rate’ shall be applicable?a. When the goods have been supplied before the change in rate of tax but issue of invoice and receipt of payment is after the change in rate of tax.

b. When the goods have been supplied after the change in rate of tax but issue of invoice and receipt of payment is before the change in rate of tax.

c. When the supply of goods and issue of invoice

has been done after the change in rate of tax but receipt of payment is before the change in rate of tax.

d. When the supply of goods and receipt of payment has been done after the change in rate of tax but issue of invoice is before the change in rate of tax.

Ans :- b. When the goods have been supplied after the change in rate of tax but issue of invoice and receipt of payment is before the change in rate of tax.

Q. 39. If 9% of the work is complete before the change in rate of tax but invoice can be raised only after completion of supply, then what is the rate of tax to be applied?

a. New tax rateb. Old tax ratec. Either (a) or (b)d. None of the aboveAns:- a. New tax rate

Q. 40. An online portal, Best Info, raises invoice for database access on 21st February, 2017 on Roy & Bansal Ltd. The payment is made by Roy & Bansal Ltd. by a demand draft sent on 25th February, 2017 which is received and entered in the accounts of Best Info on 28th February, 2017. Best Info encashes the demand draft and thereafter, gives access to the database to Roy & Bansal Ltd from 3rd March, 2017. In the meanwhile, the rate of tax is changed from 1st March 2017. What is the time of supply of the service of database access by Best Info? (a) 25th February, 2017 (b) 28th February, 2017 (c) 21st February, 2017 (d) 3rd March Ans:- c) (c) 21st February, 2017

Q. 41. Determine the amount of GST in case of supply of service of Rs. 10, 00,000 on 04-09-2018 and invoice has also been issued on the same date. The date of payment is 30-08-2018. The CGST rate has been increased from 5% to 12% w.e.f. 01-09-2018.a) Rs. 50,000 b) Rs. 1, 00,000 c) Rs. 70,000 d) Rs. 1, 20,000Ans:- d) Rs. 1, 20,000

Q. 42. In cases of change in rate of tax and amount is credited to the bank account after 4 working days from the date of change in rate of tax, the date of receipt of payment will be:(a) Date of book entry or date of bank entry, whichever

is earlier (b) Date of bank entry (c) Date of book entry (d) Date of book entry or date of bank entry, whichever

is later.

Ans:- (b) Date of bank entry

Q.43. M/s ABC is regular dealer registered under GST in Jaipur. He supplies goods to M/s PQR of Ahmedabad. The tax rate on items supplied increased from 18% to 28% w.e.f 01st September. The goods were supplied by M/s ABC with invoice date of 31st August and goods were also dispatched from the godown on the same date. The payment of the same goods was received by M/s ABC on 2nd September. Which of the following rate is applicable in this transaction? a) Lower of the two i.e. 18% b) Higher of the two i.e. 28% c) 28% as supply has completed and payment has

been received after change of rate to 28% d) 18% as date of invoice and dispatch has happened

before change of tax rate. Ans;- d) 18% as date of invoice and dispatch has happened

before change of tax rate.

Q. 44. Mr. Tommy entered into a contract for supply of service of exploration of petroleum crude on 15 -Jan2018. He raised the invoice on 20-Jan-2018 and received the payment via cheque on 24-Jan-2018

which he presented to bank for clearance on the same day. On 25-Jan-2018, the rate of tax on this

service changed from 18% to 12%. The payment was credited in his bank account on 31-Jan-2018,

assuming 27-Jan-2018, 28-Jan-2018, 29-Jan-2018, and 30-Jan-2018 to be working days. The service

was rendered to the recipient on 1-Feb-2018. What will be the rate of tax and time of supply in this case?(a) 18%, 20-Jan-2018(b) 18%, 24-Jan-2018(c) 12%, 31-Jan-2018(d) 12%, 1-Feb-2018 Ans:- (c) 12%, 31-Jan-2018

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