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CA ROHIT GAMBHIR

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CA ROHIT GAMBHIR

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INDEX

Lesson Description Page No

1. Overview of GST --

2. GST International Scenario 1

3. GST in India 3

4. Introduction to CGST Act, 2017 8

5. Supply 10

6. Composite and Mixed Supply 17

7. Composition levy 19

8. Time of Supply 23

9. Value of Supply 30

10. Input Tax Credit 33

11. Job Work 38

12. Accounts and Records 43

13. Tax Invoice, Credit and Debit Notes 45

14. Registration 48

15. Returns 53

16. Payment 55

17. Refunds 60

18. Assessment 63

19. Audit 66

20. Inspection, Search, Seizure and Arrest 68

21. Introduction to IGST Act, 2017 71

22. Nature of Supply

23. Place of Supply

24. Union Territory Goods and Services Tax Act, 2017 78

25. Introduction to GST (Compensation to States) Act, 2017 89

26. MCQs by ICSI 94

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2. GST International Scenario

Multiple Choice Questions:

Q

1) More than __________ countries in the world have already adopted GST?

a) 120

b) 130

c) 140

d) 160

2) GST was first adopted by a country in 1954. Name that country?

a) USA

b) Australia

c) France

d) Germany

3) France has been the first country to implement GST in _______?

a) 1945

b) 1954

c) 1964

d) 1944

4) _____ is the most recent country to join the bandwagon?

a) Germany

b) Sri Lanka

c) Bangladesh

d) Malaysia

5) GST has been structured as a ________ based comprehensive tax?

a) Origin

b) Destination

c) Purchase

d) Sale

6) Australian Model wherein, tax is collected by the _______ and distributed to the _____?

a) Centre, State

b) State, Centre

c) Both (a) and (b)

d) None of the above

7) Canadian Model wherein there are _____variants of taxes?

a) Two

b) Three

c) Four

d) Five

8) Kelkar-Shah Model based on ________ Model?

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a) UK Model

b) Canada Model

c) USA Model


9) __________Model which envisages a combination of Central Excise, Service Tax and VAT to make it a common base of GST to be levied both by the Centre and the States separately.

a) Canadian Model

b) Australian Model

c) Bagchi-Poddar Model

d) Kelkar Shah Model

10) Currently, _____ and ______ also follow dual GST model.

a) Brazil and Australia

b) Canada and Australia

c) Brazil and USA

d) Brazil and Canada

Q A Q A Q A Q A Q A

1) c 2) c 3) b 4) d 5) b

6) a 7) b 8) b 9) C 10) d

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3. GST in India


Q

1) Goods and Services Tax is a tax levied on goods and services imposed at each point of _____:

a) Sale

b) Service

c) Supply

d) Manufacturing

2) GST is a national level tax based on _______?

a) First point tax principle

b) Value Added principle

c) Last point tax principle

d) All of the above

*3) The following tax has not been subsumed into State GST

a) Electricity Duty

b) Luxury Tax

c) Entertainment Tax (except levied by local bodies)

d) Value Added Tax

4) The following tax has been subsumed into Central GST

a) Central Sales Tax

b) Custom Duty

c) Service Tax

d) All of the above

5) Which of the following taxes have been subsumed in GST?

a) Central Sales Tax

b) Central Excise Duty

c) VAT

d) All of the above

6) List-I of the Constitution contains matters in respect of which ____________ has the exclusive right to make laws (Discussed in the Chapter 1-Overview)

a) Central Government

b) State Government

c) Both Centre and State Governments


Q A Q A Q A Q A Q A

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

6) a

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Q

1) Government of India set up the Empowered Committee of State Finance Ministers on ______:

a) 17th June 2000

b) 17th July 2000

c) 17th June 2001

d) 17th July 2001

2) The __________ Task Force on Indirect Tax had suggested a comprehensive Goods and Services Tax (GST) based on VAT principle in 2003.

a) Chidambaram

b) Kelkar

c) Jaitley

d) Pranab

3) Which has been the first target date decided for GST?

a) 1st April 2017

b) 1st July 2017

c) 1st April 2010

d) 1st July 2010

4) First target date has been decided for GST under which Budget_______?

a) 2006-07

b) 2007-08

c) 2008-09

d) 2009-10

5) Who decided the first target date?

a) Mr. Pranab Mukherjee

b) Mr. Arun Jaitley

c) Mr. P. Chidambaram

d) Mr. Manmohan Singh

6) Based on inputs from Government(s) of Centre and States, Empowered Committee released its First Discussion Paper on GST in _______?

a) Nov-08

b) Nov-09

c) Nov-10

d) Nov-11

7) 122nd Constitutional Amendment Bill, 2014 was PLACED in Lok Sabha on?

a) 19th Dec 2014

b) 6th May 2015

c) 3rd August 2016

d) 8th Sept 2016

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8) 122nd Constitutional Amendment Bill, 2014 was PASSED in Lok Sabha on?

a) 19th Dec 2014

b) 6th May 2015

c) 3rd August 2016

d) 8th Sept 2016

9) Select Committee submitted its report to Rajya Sabha on ________?

a) 22nd July 2015

b) 6th May 2015

c) 3rd August 2016

d) 8th Sept 2016

10) The Ministry of Finance released draft model law on GST in public domain for views and suggestion on ________?

a) 22nd July 2015

b) 14th June 2016

c) 3rd August 2016

d) 8th Sept 2016

11) 122nd Constitutional Amendment Bill, 2014 was PASSED in Rajya Sabha with certain amendments on______?

a) 19th Dec 2014

b) 6th May 2015

c) 3rd August 2016

d) 8th Sept 2016

12) The changes made by Rajya Sabha were unanimously passed by Lok Sabha, on ________?

a) 19th Dec 2014

b) 6th May 2015

c) 3rd August 2016

d) 8th August 2016

13) 122nd Constitutional Amendment Bill, 2014 was assented by PRESIDENT (& thus becomes 101st Amendment Act, 2016) on?

a) 19th Dec 2014

b) 6th May 2015

c) 3rd August 2016

d) 8th Sept 2016

14) 122nd Constitutional Amendment Bill becomes ______ Constitutional Amendment Act, 2016 was passed for the implementation of GST?

a) 100th

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b) 101st

c) 102nd

d) 103rd

15) GST was introduced in India on?

a) 1st April 2017

b) 1st May 2017

c) 1st June 2017

d) 1st July 2017

Q A Q A Q A Q A Q A

1) b 2) b 3) c 4) b 5) C

6) b 7) a 8) b 9) a 10) B

11) c 12) d 13) d 14) b 15) D


Q

1) ______is the main decision-making body that has been formed to finalize the design of GST.


b) State Government

c) Central Board of Excise & Customs

d) GST Council

2) Who is the Chairman of GST Council?

a) Union Finance Minister

b) State Finance Ministers

c) Prime Minister

d) President

3) The recommendation of the GST council will be

a) Mandatory on both Centre and State

b) Mandatory on Centre

c) Mandatory on State

d) Only Advisory power

4) Which article of the Constitution outlines the composition and functions of the GST Council?

a) 270

b) 279A

c) 246A

d) 269A

5) In the GST Council, a decision will be taken based on majority votes not less than_________:

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a) 1/2 of the weighted votes

b) 1/3 of the weighted votes

c) 2/3 of the weighted votes

d) 3/4 of the weighted votes

6) The weightage of the votes of the Central Government in GST council Decision will be________





7) The weightage of the votes of the State Government in GST council Decision will be________





Q A Q A Q A Q A Q A

1) d 2) a 3) d 4) b 5) d

6) b 7) c

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4. Introduction to CGST Act, 2017


Q

1) Does GST applies for Alcoholic liquor for Human Consumption?

a) Yes

b) No

c) May be

d) Can’t say

2) Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have _______ been kept out?

a) Permanently

b) Temporarily

c) Both of the above


3) Electricity has also been kept _______GST.

a) Under

b) Out of



-

4) Aggregate Turnover under GST does not include:

a) Exempt Supplies

b) Export of goods and/or services

c) All taxable services

d) Value of inward supplies on which tax has been paid under Reverse Charge

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

a) Motor spirit

b) Tobacco and Tobacco Products

c) Alcoholic liquor for human consumption

d) Natural Gas

6) On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol), Natural Gas, and Aviation Turbine Fuel:

a) GST is not levied at all

b) GST will be levied from a date to be notified on the recommendations of the GST Council

c) GST is levied, but exempt


7) Intra-state supply is liable to ________

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a) CGST

b) SGST

c) CGST and SGST

d) IGST and SGST

8) The tax applicable to interstate supplies will be_______

a) SGST only

b) CGST only

c) IGST only

d) SGST and IGST

9) Supply of the following is not liable to GST________

a) Alcoholic liquor for industrial consumption

b) Alcoholic liquor for medicinal consumption

c) Alcoholic liquor for human consumption

d) Alcoholic liquor for other usage

10) The Central tax on the supply __________shall be levied with effect from such date as may be notified by the Government on the recommendation of the Council

a) Petroleum crude

b) High speed diesel

c) Aviation turbine fuel

d) All of the above

11) Whether Alcoholic liquor for industrial and other usages is taxable under GST?

a) Exempted

b) Yes

c) No

d) Non- Taxable

12) The tax liability of a person receiving the goods instead of the person supplying the goods will be known as:

a) Reverse tax

b) Purchase tax

c) Reverse Charge


13) ____________ is the maximum rate prescribed under CGST Act, 2017

a) 14%

b) 28%

c) 20%

d) 40%

Q A Q A Q A Q A Q A

1) b 2) b 3) b 4) d 5) b

6) b 7) c 8) c 9) c 10) d

11) b 12) c 13) c

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5. Supply Multiple Choice Questions:

Q

1) What are different types of supplies covered under the scope of Supply?

a) Supplies made with consideration

b) Supplies made without consideration



2) The activities to be treated as supply of goods or supply of services as referred to in ______of CGST Act, 2017.

a) Schedule I of CGST Act

b) Schedule II of CGST Act

c) Schedule III of CGST Act

d) Section 7

3) Which of the following taxes will be levied on Imports?

a) CGST

b) SGST

c) IGST

d) Exempt

4) Which of the following is not a supply as per section 7 of the CGST Act?

a) Management consultancy services not in course or furtherance of business

b) Import of service for consideration not in course or furtherance of business

c) Both (a) and (b)


5) _____________ specifies the activities to be treated as supply even if made without Consideration




d) All of the above

6) Which of the following activity is outside the scope of supply and not taxable under GST?

a) Services by an employee to the employer in the course of or in relation to his employment

b) Services of funeral

c) Actionable claims, other than lottery, betting and gambling.

d) All of the above

7) Which of the following activities is a supply of services?

a) Transfer of right in goods/ undivided share in goods without transfer of title in goods

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b) Transfer of title in goods

c) Transfer of title in goods under an agreement which stipulates that property shall pass at a future date

d) All of the above

8) Supply includes import of services for a consideration___________

a) In the course or furtherance of business

b) Not In the course or furtherance of business

c) Whether or not In the course or furtherance of business


9) _____________ specifies the activities which are neither to be treated as supply of goods nor a supply of services




d) All of the above

10) Activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall treated as _________

a) Supply of goods

b) Supply of services

c) Neither as a supply of goods nor a supply of services

d) Either as a supply of goods or a supply of services

11) Transfer of the title in goods shall be considered as _________

a) Supply of goods




12) Transfer of right in goods or of undivided share in goods without the transfer of title thereof shall be considered as______

a) Supply of goods




13) Transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed shall be considered as ________

a) Supply of goods




14) Lease, tenancy, easement, licence to occupy land shall be considered as_____

a) Supply of goods

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15) Lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly shall be treated as ___________

a) Supply of goods




16) Any treatment or process which is applied to another person's goods shall be treated as ______

a) Supply of goods




17) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a __________ by the person

a) Supply of goods




18) Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a__________

a) Supply of goods




19) Renting of immovable property is__________

a) Supply of goods




20) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, shall be treated as __________

a) Supply of goods




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21) Temporary transfer or permitting the use or enjoyment of any intellectual property Right shall be treated as __________

a) Supply of goods




22) Development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software shall be treated as _______

a) Supply of goods




23) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is _______

a) Supply of goods




24) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration shall be treated as_______

a) Supply of goods




25) Works contract as defined in section 2 (119) shall be treated as_______

a) Supply of goods




26) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration is_________

a) Supply of goods




27) Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration shall be treated as_______

a) Supply of goods




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28) Services by an employee to the employer in the course of or in relation to his employment is _______

a) Supply of goods




29) Services by any court or Tribunal established under any law for the time being in force is _______

a) Supply of goods




30) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities shall be treated as_________

a) Supply of goods




31) The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity shall be considered as_________

a) Supply of goods




32) The duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause shall be considered as __________

a) Supply of goods




33) Services of funeral, burial, crematorium or mortuary including transportation of the deceased shall be treated as__________

a) Supply of goods




34) Actionable claims, other than lottery, betting and gambling shall be treated as_________

a) Supply of goods




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35) Gifts not exceeding ________in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

a) 50,000

b) 1,00,000

c) 2,00,000

d) 2,50,000

36) The _________shall be treated as supply even if made without consideration

a) Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.

b) Permanent transfer or disposal of business assets where input tax credit has NOT been availed on such assets.




a) Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal;

b) Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.




a) Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal;

b) Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

c) Permanent transfer or disposal of business assets where input tax credit has been availed on such assets

d) All of the above

39) Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business shall_______

a) Supply of services

b) Not to be treated as supply of service

c) Be treated as supply even when made without consideration


40) Which of the following is - the supply in which possession of the goods are transferred but the title on the same will be transferred at the future date?

a) Rent a car

b) Hire Purchase

c) Normal sale of goods


41) Which of the following is - the supply in which possession of the goods are transferred but the title of the goods is not transferred at all and thereby attains the character of the supply of service?

a) Rent a car

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b) Hire Purchase

c) Normal sale of goods


42) Suppose XYZ Ltd has a license to operate a particular business venture but he refrain from operating such business venture by the other business houses in the same line of business and paid certain amount. Is this a supply of service?

a) Yes

b) No

c) Exempted


43) Which of the following is the supply even if made without consideration?

a) Stock transfer out to another state

b) Temporary application of business asset for a non-business needs

c) Free transfer of business asset

d) All of the above

44) Money is_______

a) Specifically included in the definition of goods

b) Specifically included in the definition of services

c) Specifically excluded from the definition of goods as well as services


45) Actionable Claims are_______

a) Specifically included in the definition of goods

b) Specifically included in the definition of services

c) Specifically excluded from the definition of goods as well as services

d) Specifically excluded from the definition of goods only

Q A Q A Q A Q A Q A

1) c 2) b 3) c 4) a 5) a

6) d 7) a 8) c 9) c 10) c

11) a 12) b 13) a 14) b 15) b

16) b 17) a 18) b 19) b 20) b

21) b 22) b 23) b 24) b 25) b

26) b 27) a 28) c 29) c 30) c

31) c 32) c 33) c 34) c 35) a

36) a 37) c 38) d 39) c 40) b

41) a 42) a 43) d 44) c 45) a

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6. Composite and Mixed supply


Q

1) What are the factors differentiating Composite Supply & Mixed Supply?

a) Nature of bundling i.e. artificial or natural

b) Existence of Principal Supply



2) Which of the following supplies are naturally bundled?

a) Rent deed executed for renting of two different floors of a building-one for residential and another for commercial purpose to same person

b) Pack of watch, tie and belt

c) Package of canned food such as burger, chocolates, sweets, cake etc.


3) A _______________ supply comprising of two or more supplies shall be treated as the supply of that particular supply that attracts highest rate of tax.

a) Composite

b) Mixed

c) Both (a) and (b)


4) ___________ means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

a) Composite Supply

b) Principal Supply

c) Mixed Supply

d) Inward Supply

5) __________ means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply

a) Mixed Supply

b) Principal Supply

c) Inward Supply

d) Exempt Supply

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5) __________ means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;

a) Mixed Supply

b) Principal Supply

c) Inward Supply

d) Exempt Supply

6) What are the factors differentiating Composite Supply and Mixed Supply?

a) Existence of Principal Supply

b) Natural Bundling i.e. artificial or natural



Q A Q A Q A Q A Q A

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

6) b 7) c

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7. Composition Levy


Q

1) Which of the following persons can opt for composition scheme?

a) Person making any supply of goods which are not leviable to tax under this Act;

b) Person making any inter-State outward supplies of goods;

c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source

d) All of the above

e) None of the above

2) What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for OTHER THAN SPECIAL CATEGORY STATES?

a) Rs.30 lacs

b) Rs.10 lacs

c) Rs.75 lacs

d) Rs.50 lacs

3) What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme?

a) 2.50%

b) 1%

c) 0.5%


4) What is the rate applicable under CGST to a registered person being a hotelier opting to pay taxes under composition scheme?

a) 1%

b) 0.50%

c) 2.50%

d) No Composition for Hotelier

5) What is the rate applicable under CGST to a registered person opting to taxes under composition scheme, not being a manufacturer or a hotelier?

a) 1%

b) 2.50%

c) 0.50%

d) No Composition available

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6) Can a registered person opt for composition scheme only for one out of his 4 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 Board

7) Can Composition scheme be availed if the registered person effects interstate supplies?

a) Yes

b) No

c) Yes, subject to prior approval of the Central Government

d) Yes, subject to prior approval of the Board

8) Can a registered person under Composition Scheme claim input tax credit?

a) Yes

b) No

c) Input tax credit on inward supply of goods and/or services can be claimed


9) Can a registered person opting for composition scheme collect tax on his outward supplies?

a) Yes

b) No

c) Yes, if the amount of tax is prominently indicated in the invoice issued by him

d) Yes, subject to the approval of the Central Government

10) Which of the following will be excluded from the computation of ‘aggregate turnover’?

a) Value of Taxable supplies

b) Value of Exempt Supplies

c) Non-taxable supplies

d) Value of inward supplies on which tax is paid on reverse charge basis

11) What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2017-18 crosses Rs.75 lakhs?

a) He can continue under composition scheme till the end of the financial year

b) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year 2017-18

c) He will cease to remain under the composition scheme with immediate effect.

d) He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds Rs.75 lacs.

12) What is the minimum rate of tax prescribed for composition scheme?

a) 4%

b) 2%

c) 1%

d) 5%

13) For certain Special category States, the reduced limit of Rs.50 lakhs for opting composition scheme is available. Out of 11 Special category States, the reduced limit of Rs.50 Lakhs is not available for?

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a) Sikkim

b) Assam

c) Uttarakhand

d) Nagaland

14) For certain Special category States, the reduced limit of Rs.50 lakhs for opting composition scheme is available. Out of 11 Special category States, the reduced limit of Rs.50 Lakhs is not available for?

a) Manipur

b) Meghalaya

c) Himachal Pradesh

d) Jammu & Kashmir

15) A person having ____business verticals in a State ____obtain a separate registration for each business vertical.

a) Single, shall

b) Multiple, shall

c) Multiple, may


16) Can a person apply for registration to pay tax under Composition Scheme for any of his business verticals at his choice?

a) Yes, irrespective of the registration status of other business verticals.

b) No all of his other business verticals also should have obtained registration for paying tax under Composition Scheme

c) Yes, provided majority of the business verticals are paying under Composition Scheme


17) The threshold limit of turnover in the preceding financial year for opting to pay tax under Composition Scheme in North Eastern States is________

a) Rs.30 lacs

b) Rs.10 lacs

c) Rs.75 lacs

d) Rs.50 lacs

*18) ABC Ltd is supplier of goods as well as services (Other than restaurant business). He can opt for composition scheme in respect of_______

a) Supply of services

b) Supply of goods

c) Supply of services as well as goods

d) Neither for supply of goods nor supply of services

19) ABC Ltd is manufacturer of goods opted for Composition Scheme has effected turnover of Rs.60 Lakhs during the financial year 2017-18. The CGST portion for composition tax payable by ABC Ltd is_____

a) Rs. 60,000

b) Rs. 1,50,000

c) Rs.30,000

d) Rs,1,20,000

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20) The following suppliers cannot opt for composition scheme______

a) Inter-state supplier of goods

b) Supplier of services other than restaurant services

c) Person supplying goods through E-Commerce Operator

d) All of the above

21) Suppose, one taxable person with same PAN having business verticals at Lucknow, UP and Kanpur, UP and Aggregate Turnover in the financial year does not exceed Rs.75 lakhs. Can he opt composition levy for Lucknow and normal levy at Kanpur?

a) No

b) Yes

c) Upto an Aggregate Turnover of Rs.75 lakhs at Lucknow only

d) Subject to the approval of GST Council

22) Can Mr.X who is engaged in the services of Interior decorator services in the state of Maharashtra opt for Composition Scheme

a) Yes

b) No

c) Yes, subject to the prior approval of Proper Officer

d) Yes, subject to the prior approval of Central Government and Maharashtra Government.

Q A Q A Q A Q A Q A

1) e 2) c 3) b 4) c 5) C

6) b 7) b 8) b 9) b 10) d

11) c 12) c 13) c 14) d 15) c

16) b 17) d 18) d 19) a 20) d

21) a 22) b

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8. Time of Supply


Q

1) What is time of supply of goods under CGST Act, 2017?

a) Date of issue of invoice

b) Date of receipt of consideration by the supplier

c) Date of despatch of goods

d) Earlier of (a) & (b)

2) What is time of supply of goods liable to tax under reverse charge mechanism?

a) Date of receipt of goods

b) Date on which the payment is made

c) Date immediately following 30 days from the date of issue of invoice by the supplier

d) Earlier of (a) (b) (c)

3) What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?

a) Date of issue of voucher

b) Date of redemption of voucher

c) Earlier of (a) & (b)

d) Any of the above

4) What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?

a) Date of issue of voucher

b) Date of redemption of voucher


d) Any of the above

5) What is date of receipt of payment?

a) Date of entry in the books

b) Date of payment credited into bank account

c) Earlier of a and b

d) Any of the above

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*6) Mr. A supplies goods worth Rs. 24,300 to Mr. B and issues an invoice dated 25.7.2017 for Rs. 24,300 and Mr. B pays Rs. 25,000 on 30.7.2017 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 5.8.2017. Identify the time of supply and value of supply:

a) Rs. 25,000 – 30.7.2017

b) For Rs. 24,300 – 25.7.2017 and for Rs. 700 – 30.7.2017

c) For Rs. 24,300 – 25.7.2017 and for Rs. 700 – 5.8.2017

d) Both (b) or (c) is available at the option of the registered person

7) What is the time of supply of service if the invoice is issued within 30 days from the date of provision of service?


b) Date on which the supplier receives payment

c) Date of provision of service


8) What is the time of supply of service if the invoice is NOT issued within 30 days from the date of provision of service?


b) Date on which the supplier receives payment

c) Date of provision of service

d) Earlier of (b) & (c)

9) 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 invoice

c) Date of receipt of consideration


10) How is the date of receipt of consideration by the supplier determined?

a) Date on which the receipt of payment is entered in the books of account

b) Date on which the receipt of payment is credited in the bank account


d) (a) & (b) whichever is later

11) What is the time of supply of service in case of reverse charge mechanism?

a) Date on which payment is made to the supplier

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

c) Date of invoice


12) 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 payment


d) Date of entry in the books of the supplier of service

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13) Value of services rendered is Rs. 2,00,000/. Date of issue of invoice is 5th August 2017.Advance Received is Rs. 1,25,000/- on 20th July 2017. Balance amount received on 7th August 2017. What is the time of supply for Rs. 2,00,000/-

a) 5th August 2017 for Rs. 2,00,000/-

b) 20th July 2017 for Rs. 2,00,000/-

c) 20th July 2017- Rs. 1,25,000/- and 5th August 2017 for Rs. 75,000/-

d) 20th July 2017- Rs. 1,25,000/- and 7th August 2017 for Rs. 75,000/-

14) There was increase in tax rate from 20% to 24% w.e.f. 1.6.2018. Which of the following rate is applicable when services are provided after change in rate of tax in June 2018 but invoice issued and payment received, both in April 2018?

a) 20% as it is lower of the two

b) 24% as it is higher of the two

c) 20% as invoice and payment were received prior to rate change

d) 24% as the supply was completed after rate change

15) There was increase in tax rate from 20% to 24% w.e.f. 1.6.2018. Which of the following rate is applicable when services provided and invoice raised after change in rate of tax in June 2018, but payment received in April 2018?



c) 20% as payment (being one of the factors) was prior to rate change

d) 24% as invoice was issued in the period during which supply is completed

16) There was increase in tax rate from 20% to 24% w.e.f. 1.6.2018. Which of the following rate is applicable when invoice was issued after change in rate of tax in June 2018 but payment received and goods supplied in April 2018?



c) 20% as payment was issued in the period during which the supply was effected

d) 24% as invoice being one of the factors was issued after rate change

17) There was decrease in tax rate from 24% to 20% w.e.f. 1.6.2018. Which of the following rate is applicable when invoice was issued after change in rate of tax in June 2018 but payment received and goods supplied in April 2018?



c) 24% as two of the three factors occurred prior to rate change

d) 20% as one of the factors occurred after rate change

18) The liability to pay GST arise ____________ in case of supply of goods.

a) At the time of supply of goods

b) At the time of issue of invoice

c) On receipt of payment


19) Where the supplier of taxable goods receives an amount upto __________ in excess of the amount

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indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.

a) Rs.10,000

b) Rs.1,000

c) Rs.5,000

d) Rs.50,000

20) Mr.A sold goods to Mr.B.Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods.

Date of removal – 1st Oct 2018 Date of Invoice – 2nd Oct 2018 Date when goods made available to the recipient – 3rd Oct 2018 Date of receipt of payment – 15th Nov 2018

a) 1st Oct 2018

b) 2nd Oct 2018

c) 3rd Oct 2018

d) 15th Nov 2018


Date of removal – 3rd Oct 2018 Date of Invoice – 1st Oct 2018 Date when goods made available to the recipient – 4th Oct 2018 Date of receipt of payment – 25th Nov 2018

a) 3rd Oct 2018

b) 1st Oct 2018

c) 4th Oct 2018

d) 25th Nov 2018


Date of removal – 4th Nov 2018 Date of Invoice – 4th Nov 2018 Date when goods made available to the recipient – 4th Nov 2018 Date of receipt of payment – 1st Oct 2018

a) 4th Nov 2018

b) 4thDec 2018

c) 6th Nov 2018

d) 1st Oct 2018

23) Mr.A sold goods to Mr.B.Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply does not involve movement of goods.

Date of delivery – 2nd Oct 2018 (Date when the goods made available to the recipient) Date of Invoice – 3rd Oct 2018 Date of receipt of payment – 15th Nov 2018

a) 2nd Oct 2018

b) 3rd Oct 2018

c) 15th Nov 2018

d) 1st Nov 2018

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*24) Value of services rendered is Rs.1,18,000. Date of issue of invoice is 5th Sept 2018. Advance received is Rs.20,000 on 20th August 2017. Balance amount received on 7th Sept 2018. What is the TOS of service?

(Very Imp)

a) 5th Sept 2018 – Rs.1,18,000

b) 20th August 2018 – Rs.1,18,000

c) 20th August 2018 – Rs.20,000 and 5th Sept 2018 – Rs.98,000

d) 20th August 2018 – Rs.20,000 and 7th Sept 2018 – Rs.98,000

25) Determine the TOS in each of the following independent cases in accordance with provisions of CGST Act, 2017

Date of actual supply of service – 10th Nov 2018 Date of Invoice- 30th Nov 2018 Date on which payment received – 15th Dec 2018

a) 10th Nov 2018

b) 30th Nov 2018

c) 15th Nov 2018

d) 10th Dec 2018


Date of actual supply of service – 10th Nov 2018 Date of Invoice- 30th Nov 2018 Date on which payment received – 15th Nov 2018

a) 10th Nov 2018

b) 30th Nov 2018

c) 15th Nov 2018

d) 10th Dec 2018


Date of actual supply of service – 10th Nov 2018 Date of Invoice- 12th Dec 2018 Date on which payment received – 30th April 2019

a) 10th Nov 2018

b) 12th Dec 2018

c) 30th April 2019

d) 10th Dec 2018


Date of actual supply of service – 10th Nov 2018 Date of Invoice- 22th Dec 2018 Date on which payment received – 12th Dec 2018

a) 10th Nov 2018

b) 22th Dec 2018

c) 12th Dec 2018

d) 10th Dec 2018

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28) From the following information detremine the TOS of goods where goods are taxed on reverse charge basis Date of issue of invoice by the supplier- 30th Nov 2018 Date of receipt of goods- 30th Nov 2018 Date of payment by the recipient – 10th Dec 2018 Entry of receipt of services in the recipient’s BOA – 12th Dec 2018

a) 30th Nov 2018

b) 10th Dec 2018

c) 12th Dec 2018

d) 30th Dec 2018

29) From the following information detremine the TOS of goods where goods are taxed on reverse charge basis Date of issue of invoice by the supplier- 30th Nov 2018 Date of receipt of goods- 30th Nov 2018 Date of payment by the recipient – 15th Nov 2018 Entry of receipt of services in the recipient’s BOA – 12th Dec 2018

a) 30th Nov 2018

b) 15th Nov 2018

c) 12th Dec 2018

d) 30th Dec 2018

30) From the following information detremine the TOS of goods where goods are taxed on reverse charge basis Date of issue of invoice by the supplier- 30th Nov 2018 Date of receipt of goods- 30th Jan 2019 Date of payment by the recipient – 10th Mar 2019 Entry of receipt of services in the recipient’s BOA – 12th Dec 2018

a) 30th Nov 2018

b) 30th Jan 2019

c) 10th Mar 2018

d) 30th Dec 2018

31) A Ltd is located in India and W Ltd located in USA are associated enterprises (as A Ltd holds 51% of the shares of W Ltd). W Ltd provides some technical services to A Ltd in India. From the following details, determine the TOS for A Ltd (as importation of services is the case of RCM) Agreed Consideration - $ 10,000 Date on which services are supplied on W Ltd – 16th Dec 2018 Date on which invoice is sent by W Ltd – 19th Dec 2018 Date of entry in the Books of Account of A Ltd – 30th Dec 2018 Date on which payment is made by A Ltd – 23rd March 2019

a) 16th Dec 2018

b) 19th Dec 2018

c) 30th Dec 2018

d) 23rd Mar 2019

32) From the following information detremine the TOS of services where services are taxed on reverse charge basis Date of issue of invoice by the supplier- 30th Nov 2018

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Date of completion of service- 30th Nov 2018 Date of payment by the recipient – 10th Dec 2018 Entry of receipt of services in the recipient’s BOA – 12th Dec 2018

a) 30th Nov 2018

b) 10th Dec 2018

c) 12th Dec 2018

d) 30th Jan 2019

33) From the following information detremine the TOS of services where services are taxed on reverse charge basis Date of issue of invoice by the supplier- 30th Nov 2018 Date of completion of service- 30th Nov 2018 Date of payment by the recipient – 15th Nov 2018 Entry of receipt of services in the recipient’s BOA – 30th Nov 2018

a) 30th Nov 2018

b) 15th Nov 2018

c) 30th Jan 2019

d) 15th Jan 2019

34) From the following information detremine the TOS of services where services are taxed on reverse charge basis Date of issue of invoice by the supplier- 30th Nov 2018 Date of completion of service- 30th Nov 2018 Date of payment by the recipient – 10th Mar 2019 Entry of receipt of services in the recipient’s BOA – 30th Nov 2018

a) 30th Nov 2018

b) 28th Nov 2018

c) 10th Mar 2019

d) 30th Jan 2019

Q A Q A Q A Q A Q A

1) D 2) d 3) a 4) b 5) c

6) D 7) d 8) d 9) a 10) C

11) d 12) c 13) c 14) c 15) D

16) c 17) c 18) a 19) b 20) A

21) b 22) d 23) a 24) c 25) B

26) c 27) a 28) a 29) b 30) D

31) c 32) b 33) b 34) d

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9. Value of Supply


Q

1) The value of supply of goods and services shall be the

a) Transaction value

b) MRP

c) Market Value

d) Any of the above

2) The value of supply should include

a) Any non-GST taxes, duties, cesses, fees charged by supplier separately

b) Interest, late fee or penalty for delayed payment of any consideration for any supply

c) Subsidies directly linked to the price except subsidies provided by the Central and State Government

d) All of the above

3) When can the transaction value be rejected for computation of value of supply.

a) When the buyer and seller are related AND price is not the sole consideration

b) When the buyer and seller are related OR price is not the sole consideration

c) It can never be rejected


4) What deductions are allowed from the transaction value

a) Discounts offered to customers, subject to conditions

b) Packing Charges, subject to conditions

c) Amount paid by customer on behalf of the supplier, subject to conditions

d) Interest, late fee or penalty for delayed payment of any consideration for any supply

5) If the goods are supplied to related persons then how should the taxable person ascertain the value of supplies?

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a) Seek the help of the GST officer

b) Use the arm’s length price as required under the Income Tax law

c) Refer the Rules which will be prescribed for this purpose


6) Which of the following shall not be included in value of supply?

a) GST

b) Interest

c) Late fee

d) Commission

7) Which of the following statement(s) is/are correct?

a) Section 15 of CGST Act prescribes different provisions for valuation of goods and Services

b) CGST Act and IGST Act have different provisions for valuation of supply

c) Section 15 of CGST Act prescribes same set of provisions for valuation of goods and services

d) (a) and (b)

8) Discount given after the supply is deducted from the value of taxable supply, if –

a) such discount is given as per the agreement entered into at/or before the supply

b) such discount is linked to the relevant invoices

c) proportionate input tax credit is reversed by the recipient of supply

d) all of the above

9) The value of taxable supply should not include---

a) Taxes levied under SGST Act, 2017

b) Taxes levied under CGST Act, 2017

c) Taxes levied under GST Compensation Cess Act, 2017

d) All of the above

10) Interest or late fee or penalty for delayed payment of any consideration for any supply

a) Shall be excluded from the value of taxable supply

b) Shall be included from the value of taxable supply

c) Shall require no adjustment

d) Can be included or excluded from the value of the taxable supply

11) Subsidies provided by the CG and the SG

a) Shall be excluded from the value of taxable supply

b) Shall be included from the value of taxable supply

c) Shall require no adjustment

d) Can be included or excluded from the value of the taxable supply

*12) When deductions are allowed from the Transaction Value?

a) Discount offered to customers subject to conditions

b) Freight charges

c) Incidental expenses

d) Amount paid by customer on behalf of the supplier.

13) If the goods are supplied to the related persons then the value of taxable supply shall be determined

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_______

a) Referring the rules which are prescribed in this behalf

b) With the help of the proper officer under the GST law

c) By identifying the prices at which goods are sold by the unrelated person to his customer

d) By identifying the prices at which goods are sold by the supplier to the customer

14) Persons shall be deemed to be “related persons” if any person directly or indirectly owns, controls or holds _____________ or more of the outstanding voting stock or shares of both of them;

a) 25%

b) 26%

c) 51%

d) 20%

15) Persons shall be deemed to be “related persons” if

a) such persons are officers or directors of one another’s businesses

b) such persons are legally recognised partners in business

c) such persons are employer and employee;

d) All of the above

Q A Q A Q A Q A Q A

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

6) a 7) c 8) d 9) d 10) b

11) a 12) a 13) a 14) a 15) d

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10. Input Tax Credit


Q

1) Whether definition of Inputs includes capital goods

a) Yes

b) No

c) Certain capital goods only

d) Notified capital goods

2) Is it mandatory to capitalize the capital goods in books of Accounts?

a) Yes

b) No

c) Optional

d) Yes, subject to conditions

3) Whether credit on capital goods can be taken immediately on receipt of the goods?

a) Yes

b) No

c) Anytime

d) After capitalizing in books of Accounts

4) Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement of credit?

a) All the conditions

b) Any two out of four conditions

c) Conditions not specified


5) Whether credit on inputs should be availed based on receipt of documents or receipt of goods?

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a) Receipt of goods

b) Receipt of Documents

c) Both


*6) In case supplier has deposited the taxes but the receiver has not received the documents, is receiver entitled to avail credit?

a) Yes it will be auto populated in recipient monthly returns

b) No as one of the conditions of 16(2) is not fulfilled

c) Optional


7) Input tax credit on capital goods and Inputs can be availed in one installment or in multiple installments?

a) In thirty six installments

b) In two installments

c) In one installment

d) In six installments

8) The time limit to pay the value of supply with taxes to avail the input tax credit?

a) Four months

b) Six Months

c) One hundred and eighty days

d) Till the date of filing of Annual Return

9) What is the time limit for taking input tax credit by a registered taxable person?

a) No time limit

b) 2 years from the date of invoice

c) Due date of furnishing of the 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

d) Due date of furnishing of the 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 or furnishing of the relevant annual return, whichever is earlier

*10) Can the recipient avail the Input tax credit for the part payment of the amount to the supplier within one hundred and eighty days?

a) Yes on full tax amount and partly value amount

b) No he can’t until full amount is paid to supplier

c) Yes but proportionately to the extent of value and tax paid


11) Whether credit can be availed without actual receipt of goods where goods are transferred through transfer of document of title before or during the movement of goods?

a) Yes

b) No

c) Can be availed only after transfer of document of title after movement of goods


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12) Whether depreciation on tax component of capital goods and Plant and Machinery and whether input tax credit is Permissible?

a) Yes

b) No

c) Input tax credit is eligible if depreciation on tax component is not availed

d) Any of the above

13) What is the maximum time limit to claim the Input tax credit?

a) Till the date of filing annual return

b) Due date of September month which is following the financial year

c) Earliest of (a) or (b)

d) No limit

14) 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) no proportionate credit allowed

15) Which of the following is included for computation of taxable supplies for the purpose of availing credit?

a) Exempted supplies

b) Zero-rated supplies

c) Both


16) In which of the following situations, taxpayer needs to reverse the credit already taken?

a) If payment is not made to the supplier within 45 days from the date of invoice

b) If payment is not made to the supplier within 90 days from the date of invoice

c) If payment is not made to the supplier within 180 days from the date of invoice


17) What is the time limit for taking ITC?

a) 180 days

b) 1 year

c) 20th October of the next financial year or the date of filing annual return, whichever is earlier

d) No limit

18) If the goods are received in lots/installment, ------------------------------

a) 50% ITC can be taken on receipt of 1st installment and balance 50% on receipt of last installment.

b) ITC can be availed upon receipt of last installment.

c) 100% ITC can be taken on receipt of 1st installment.

d) Proportionate ITC can be availed on receipt of each lot/installment.

19) A supplier takes deduction of depreciation on the GST component of the cost of capital goods as per Income- tax Act, 1961. The supplier can-

a) avail only 50% of the said tax component as ITC

b) not avail ITC on the said tax component

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c) avail 100% ITC of the said tax component

d) avail only 25% of the said tax component as ITC

20) Which of the following inward supplies are not eligible for ITC in case of a company manufacturing shoes?

a) Food and beverages

b) Outdoor catering

c) Health services

d) All of the above

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 composition tax payer can avail 100% ITC on inputs

c) ITC is not available on inward supplies made by a composition tax payer

d) Composition tax will be available as ITC to the recipient only if the tax is mentioned separately in the invoice raised by the composition tax payer

22) Input means_________

a) Any goods excluding Capital Goods

b) Capital Goods only

c) Any goods including Capital Goods

d) Capital Goods used for furtherance of business

23) Input tax credit can be taken by_________

a) Registered Dealer opting for Composition Scheme

b) Registered Dealer not opting for composition Scheme

c) Unregistered dealers

d) All of the above

24) Where any person claims that he is eligible for input tax credit under this Act, the burden of proving such claim shall lie to ______

a) On the department

b) On such person

c) On department as well as such person equally


25) Input Tax Credit in respect of Motor Vehicles and other conveyance will be available when they are used for making taxable supplies of________

a) Transportation of passengers

b) Of such vehicles or conveyances

c) Imparting training on driving, flying, navigating such vehicles or conveyance

d) All of the above

26) Input Tax Credit in respect of inputs supplied by principal to job worker for job work shall be allowed to:

a) Job worker

b) Principal

c) Partly to principal and partly to Job worker

d) No one

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*27) Any input tax paid on purchase of goods or services by an assessee for employees is eligible?

a) No

b) Yes

c) Yes, on the services notified which are obligatory for an employer to provide to its employees under any law for the time being in force


*28) In case of Input Service Distributor whether distributor and the recipient should have same PAN.

a) No

b) Yes

c) Yes, if in same state and different in other state


*29) Suppose the HO of the Business group enter into a centralised service contract in respect of its subsidiary units and branches business places and wants to distribute input tax credit among them and that dealer also conducts normal taxable business activities. The type of registration required to that HO will be:

a) ISD Registration

b) Normal Registration

c) Both ISD Registration and Normal Registration

d) No Registration required

30) ITC is allowed on those goods and / or services which are intended for making:

a) Zero rated supplies

b) Taxable supplies

c) Both Taxable supplies and zero rated supplies


31) Input Tax Credit is not available on_______

a) Goods used for personal use

b) Capital Goods

c) Trading Goods

d) Inputs used for business

32) The conditions for claiming ITC doesn’t include the following:

a) He has received the goods/services

b) He is in the possession of tax invoice

c) The tax charged has been paid to the Government

d) He must have inter-state supply

Q A Q A Q A Q A Q A

1) b 2) a 3) a 4) a 5) c

6) b 7) c 8) c 9) d 10) c

11) a 12) c 13) c 14) a 15) b

16) c 17) c 18) b 19) b 20) d

21) c 22) a 23) b 24) b 25) d

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26) b 27) c 28) a 29) c 30) c

31) a 32) d

11. Job Worker

Multiple Choice Questions

Q

1) The time limit beyond which if goods are not returned, the inputs sent for job work shall be treated as supply:

a) One year

b) Three years

c) Six months

d) Seven years

2) The time limit beyond which if goods are not returned, the capital goods sent for job work shall be treated as supply

a) One year

b) Six years

c) Three Years

d) Seven years

3) Principal entitled for input tax credit on inputs sent for job work

a) If goods sent are returned within one year

b) If goods sent are returned within three years

c) If goods sent are returned within six months

d) If goods sent are returned within seven months

4) Principal entitled for input tax credit on capital goods if sent for job work

a) If goods sent are returned within one year

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b) If goods sent are returned within three years

c) If goods sent are returned within six months

d) If goods sent are returned within seven months

5) Is the principal entitled for credit of goods though he has not received the goods and has been sent to job worker directly by vendor

a) Yes

b) No

c) Yes vendor should be located in same place

d) All of the above

6) The job workers are allowed to send such goods to other

a) Manufacturers

b) Traders

c) Job workers

d) Service Providers

7) Who will undertake responsibility and accountability for any contravention under this section?

a) Principal

b) Manufacturer

c) Job worker

d) Government

8) What is the time limit within which inputs return to principal?

a) 365 days (One Year)

b) 180 days

c) 270 days

d) 3 years

9) What is the time limit within which Capital goods have to be returned to principal?

a) One Year

b) Two Years

c) Three years

d) Four years

10) Should the principal be registered?

a) Yes

b) No

c) Can’t say


11) Which section provides tax-free movement for sending inputs and/or capital for job-worker?

a) 20

b) 55

c) 123

d) 143

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*12)

When will the inputs and/or capital goods sent to job-work become a supply?

a) When the inputs and/or capital goods sent to job-worker are not received within 1 year or 3 years respectively

b) When the inputs and/or capital goods sent to job-worker are not supplied, with or without payment of tax, from the job-workers place within 1 year or 3 years respectively

c) Both under (a) or (b)


*13)

From when will the period of one or three years be calculated under Section 143?

a) The day when such inputs and/or capital goods sent to job-worker

b) The day when the job-worker receives the said goods, in case the job-worker receives the goods directly

c) Option (a) and (b)


14) Whether any time limit for moulds, dies, jigs, tools and fixtures has been prescribed in case this is removed from principal place to job worker’s place

a) 1 year

b) 3 years, if not received within time limit

c) No time limit.


15) GST is applicable on__ ___

a) Inputs and/or capital goods sent to job-worker (Satisfying conditions u/s 143)

b) The job-worker charges and additional material added by the job-worker on the inputs sent by the principal


d) Not applicable

16) When should a job-worker take registration?

a) Mandatory

b) Only if his aggregate turnover exceeds the threshold limits specified under Section 22 of the Act

c) Never


*17)

Can a principal supply inputs and/or capital goods from the job-worker’s premises?

a) Yes, only when the job-worker is registered

b) Yes, even if the job-worker is unregistered by declaring the job-worker’s premises as his additional place of business

c) Yes, irrespective of whether the job-worker is registered or not, principal is engaged in the supply of goods which are notified by the Commissioner on this behalf

d) All of the above

18) Mr. X has sent his goods to Mr. Y on job-work on 07-05-2018. From when it will be considered as deemed supply if not received back within one year?

a) 06-05-19

b) 07-05-18

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c) 03-11-19

d) Not Taxable

19) If the inputs are not received back within the prescribed limit by the principal then, who is responsible to pay the GST?

a) Job worker

b) Principal

c) Job worker is responsible when sending such inputs and Principal needs to reverse the ITC taken earlier.

d) No one

20) If the inputs or capital goods are considered as deemed supply in the hands of principal then, whether ITC of such output tax charged by the principal can be claimed by the Job worker?

a) Yes

b) No

c) Can’t say


21) Will the inputs and/or capital goods supplied from the job-worker’s premises be considered for calculating the aggregate turnover of the job-worker?

a) Yes

b) No

c) Can’t say


22) Which section specifies the conditions to be fulfilled for claiming ITC on inputs and/or capital goods sent to job-worker?

a) 19

b) 55

c) 143

d) 177

23) Can principal take input tax credit on the inputs and/or capital goods sent directly to job-worker?

a) Yes

b) No

c) Yes subject to section 143


24) If the job-worker is eligible to claim ITC on the goods received from the principal, is there a time limit within which such ITC shall be availed/claimed by the job-worker?

a) Within September 30th of following year

b) Filing the annual return for the period

c) Option (a) or (b), whichever is earlier

d) No time limit

25) How can the principal move goods to the job-worker?

a) Job-work challan

b) Tax invoice

c) Delivery challan containing the details as specified in the Tax invoice, credit and debit note rules.

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d) Any other document

26) If the inputs and/or capital goods are not received or returned within the prescribed time limit:

a) It shall be deemed to be a supply on the day such inputs and/or capital goods are sent to job-worker and the principal to discharge the GST along with interest.

b) No consequences

c) The job-worker to discharge GST on expiry of the prescribed time limit.


27) Who is responsible for accountability for any contravention under this Act?

a) Principal

b) Job-worker

c) Manufacturer

d) Government

28) Who should discharge the liability of GST on the scrap generated during job-work?

a) Job-worker, if registered

b) Principal, if job-worker is not registered

c) Always Job worker

d) Option (a) or (b)

Q A Q A Q A Q A Q A

1) a 2) c 3) a 4) b 5) a

6) c 7) a 8) a 9) c 10) a

11) d 12) c 13) c 14) c 15) b

16) b 17) d 18) b 19) b 20) a

21) b 22) a 23) c 24) c 25) c

26) a 27) a 28) d

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12. Accounts and Records


Q

1) The books and other records U/S 35 are to be maintained at

a) Place where the books and accounts are maintained

b) Place of address of the Proprietor/ Partner/Director/Principal Officer/Managing Director

c) Principal place of business mentioned in the Certificate of Registration

d) Any of the above

2) In case, more than one place of business situated within a state specified in the Registration Certificate, the books and Accounts shall be maintained at

a) Each place of business pertaining to such place alone

b) Place where the books of accounts are maintained for all places situated within a state

c) At principal place of business covered mentioned in the Registration Certificate for all places of business in each state

d) All of the above

3) Accounts are required to be maintained in

a) Manual form

b) E- form

c) Manual and E- form

d) Manual or E- form

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4) Who of the below, even if not registered, is required to maintain records:

a) Owner of warehouse

b) Owner of godown

c) Owner of any other place used for storage of goods

d) All of the above

5) If a turnover during a financial year exceeds the prescribed limit, then accounts get audited by

a) Chartered Accountant

b) Cost Accountant

c) Comptroller & Auditor General of India

d) Either (a) or (b)

6) What accounts and records are required to be maintained by every registered taxable person at his principal place of business

a) Account of production or manufacture of goods

b) Inward or outward supply of goods and/or services

c) Stock of goods

d) ITC availed

e) output tax payable and paid

f) All of the above

*7) Can all the records be maintained in an electronic form?

a) Yes

b) No

c) Notified records

d) Yes, if authenticated by digital signature

8) Taxable person has to maintain his records for a period of

a) expiry of seventy two months from the last date of filing of Annual Return for the year

b) expiry of forty five months from the last date of filing of Annual Return for the year

c) expiry of thirty months from the last date of filing of Annual Return for the year

d) expiry of ninety months from the last date of filing of Annual Return for the year

9) The time period prescribed for maintenance of accounts and records if the taxable person is a party to an appeal or revision shall be-

a) Two year after final disposal of such appeal or revision or proceeding, or until the expiry of thirty-six months from the last date of filing of Annual Return for the year pertaining to such accounts and records, whichever is later.

b) Five years after final disposal of such appeal or revision or proceeding, or until the expiry of sixty months from the last date of filing of Annual Return for the year pertaining to such accounts and records, whichever is later.

c) One year after final disposal of such appeal or revision or proceeding, or until the expiry of seventy two months from the last date of filing of Annual Return for the year pertaining to such accounts and records, whichever is later.

d) One year after final disposal of such appeal or revision or proceeding, or until the expiry of forty months from the last date of filing of Annual Return for the year pertaining to such accounts and records, whichever is later

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Q A Q A Q A Q A Q A

1) c 2) a 3) d 4) d 5) d

6) f 7) d 8) a 9) c 10)

13. Tax Invoice, Credit and Debit Notes


Q

1) Tax invoice must be issued by________ on supplies made by him

a) Every supplier

b) Every taxable person

c) Registered persons not paying tax under composition scheme

d) All the above

2) An invoice must be issued:

a) At the time of removal of goods

b) On transfer of risks and rewards of the goods to the recipient

c) On receipt of payment for the supply


*3) In case of goods sent on sale on approval basis, invoice has to be issued:

a) While sending the goods; another Invoice has to be issued by the recipient while rejecting the goods;

b) When the recipient accepts the goods or ten months from the date of supply whichever is earlier

c) When the recipient accepts the goods or six months from the date of supply whichever is earlier;

d) When the recipient accepts the goods or three months from the date of supply whichever is earlier.

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4) If Supply of Services has ceased under a contract before the completion of supply:

a) Invoice has to be issued within 30 days from the date of cessation;

b) Invoice has to be issued at the time of cessation to the extent of the supply effected;

c) Invoice has to be issued for the full value of the contract after deducting a percentage thereof as prescribed;


5) The tax invoice should be issued _______the date of supply of service:

a) Within 30 days from

b) Within 2 months from

c) Within 15 days from

d) On

6) A credit note is issued by ________ and it is a document accepted for GST purposes:

a) Supplier, for reducing the tax/ taxable value;

b) Recipient, for reducing the tax/ taxable value;

c) Supplier, for increasing the tax/ taxable value

d) Recipient, for increasing the tax/ taxable value.

e) Any of the above

7) For an increase in the tax/ taxable value, a debit note for GST purposes:

a) Should be issued by the supplier;

b) Should be issued by the recipient;

c) May be issued by the supplier;

d) May be issued by the recipient.

e) None of the above

8) In case of taxable supply of services, invoice shall be issued within a period of ____________ from the date of supply of service.

a) 30 days

b) 45 days

c) 60 days

d) 90 days

*9) In case of taxable supply of services by an insurer, invoice shall be issued within a period of __________ from the date of supply of service.

a) 30 days

b) 45 days

c) 60 days

d) 90 days

*10) In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice shall be issued:

a) before or at the time when the supplier of service receives the payment

b) on or before the due date of payment

c) Either (a) or (b)


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11) In case of continuous supply of services, where due date of payment is not ascertainable from the contract, invoice shall be issued:

a) before or at the time when the supplier of service receives the payment

b) on or before the due date of payment

c) Either (a) or (b)


12) Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued:

a) before/at the time of supply

b) 6 months from the date of removal

c) Earlier of (a) or (b)


13) A registered person supplying taxable goods shall issue a tax invoice showing:

a) The description

b) Quantity and the value of goods

c) The tax charged thereon

d) All of the above

14) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be LESS THAN the taxable value or tax payable in respect of such supply, the registered person who has supplied such goods or services or both, shall issue to the recipient ________containing such particulars as may be prescribed.

a) Debit note

b) Credit note

c) Payment voucher

d) Receipt voucher

15) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to EXCEED the taxable value or tax payable in respect of such supply, the registered person who has supplied such goods or services or both, shall issue to the recipient ________containing such particulars as may be prescribed.

a) Debit note

b) Credit note

c) Payment voucher

d) Receipt voucher

16) The impact of the issuance of a Debit Note by a supplier in his value of supplies will be:

a) An increase

b) A decrease

c) No impact


17) The impact of the issuance of a Credit Note by a supplier in his value of supplies will be:

a) An increase

b) A decrease

c) No impact

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18) Continuous supply of services” means a supply of services who provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding ______MONTHS with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify;

a) Three

b) Four

c) Six

d) Twelve

Q A Q A Q A Q A Q A

1) c 2) a 3) c 4) b 5) a

6) a 7) a 8) a 9) b 10) b

11) a 12) c 13) d 14) a 15) b

16) a 17) b 18) a

14. Registration


Q

1) How the aggregate turnover is calculated?

a) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis.

b) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person computed for each state separately.

c) Aggregate value of all taxable intrastate supplies, export of goods/services and exempt supplies of a person having same PAN computed for each state separately.

d) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis and excluding taxes if any charged under CGST Act, SGST Act and IGST Act.

2) Which one of the following is true?

a) A person can’t collect tax unless he is registered.

b) Registered person not liable to collect tax till his aggregate turnover exceeds Rs.20 lakhs/ Rs.10 Lakhs as the case may be.

c) A person can collect the tax during the period of his provisional registration.

d) None of the above.

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3) An E-commerce operator should get registered irrespective of his threshold limit?

a) Yes

b) No, required to register only if his aggregate turnover exceeds the threshold limit.

c) He is required to register if he is liable to collect tax at source and his aggregate turnover exceeds the threshold limit.


4) What is the validity of the registration certificate?

a) One year

b) No validity

c) Valid till it is cancelled.

d) 5 years

5) Which of the following require compulsory registration, irrespective of threshold limit:

a) Casual taxable person

b) Non Resident taxable person

c) Person liable to pay under Reverse Charge Mechanism

d) All of the above

*6) A person not required to obtain registration if he is required to pay tax under reverse charge and there are no taxable supplies made by him.

a) Incorrect, if person who are required to pay tax under reverse charge, irrespective of threshold shall obtain registration.

b) Incorrect, if person who are required to pay tax under reverse charge obtain registration only if such value of supplies under reverse charge exceeds the threshold limit.

c) Above statement is correct

d) A person is required to obtain registration if he is required to pay tax under reverse charge and also he is also making taxable supplies irrespective of the threshold limit.

7) Mr. A has started supply of goods in Delhi. He is required to obtain registration, if his aggregate turnover exceeds ____________ during a financial year.

a) Rs. 10 lakh

b) Rs. 20 lakh

c) Rs. 30 lakh

d) Rs. 50 lakh

8) Aggregate turnover includes:

a) Taxable supplies

b) Exempt supplies

c) Exports

d) All of the above

9) Which of the following persons are compulsorily required to obtain registration?

a) Persons making any inter-State taxable supply

b) Non-resident taxable persons making taxable supply

c) Casual taxable persons making taxable supply

d) All of the above

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*10) Which of the following persons are not liable for registration?

a) Any person engaged exclusively in supplying services wholly exempt from tax

b) Casual Taxable Person

c) Both (a) and (b)


11) Rohan Toys is a registered supplier of goods in Delhi. It intends to attend a 7 days’ Business Fair organised in Mumbai (next month) where it does not have a fixed place of business. Examine which of the following statements are true for Rohan Toys:

a) Rohan Toys is not required to obtain registration in Mumbai for attending a 7 days’ Business Fair.

b) Rohan Toys has to obtain registration as a casual taxable person for attending the Business Fair.

c) Rohan Toys has to obtain a Unique Identification Number for attending the Business Fair.


12) Every supplier shall be liable to be registered under this Act in the State or Union Territory, other than Special Category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds________

a) 10 Lakhs

b) 25 Lakhs

c) 1.5 Crores

d) 20 Lakhs

13) Where such person makes taxable supplies of goods or services or both from any of the Special Category States , he shall be liable to be registered if his aggregate turnover in a financial year exceeds_______

a) 10 Lakhs

b) 25 Lakhs

c) 1.5 Crores

d) 20 Lakhs

14) The calculation of aggregate turnover to decide the registration limit will be based on----------

a) State wise Turnover

b) State wise Turnover excluding Export

c) All over India Turnover

d) All over Turnover excluding Export

15) Taxable minimum turnover limit in GST that is applicable to the State of Maharashtra_______

a) 10 Lakhs

b) 25 Lakhs

c) 1.5 Crores

d) 20 Lakhs

16) The dealer who are not eligible for any threshold limit for registration under GST law are?

a) Input Service Distributors and Dealers making supply through Electronic Commerce Operator

b) Casual Dealers and Non-resident Taxable Persons

c) Dealers making inter-state supplies and those having Reverse Charge Liability

d) All of the above

17) Suppose a dealer who is a resident of Delhi has business places both at Delhi and Uttar Pradesh. From

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where he has to take GST registration?

a) From Delhi only

b) From Uttar Pradesh only

c) He has to take separate GST registration both at Delhi and Uttar Pradesh with the same PAN

d) From either of the states

18) Suppose one Multi National Company (MNC) has places of business all over India. Can such an MNC take a single centralised GST registration?

a) Yes

b) No (it has to take registration in all the states from where it makes supplies of goods or services)

c) Registration only from the state in which its Head Office in India is situated

d) Either (a) or (c)

19) Whether all persons are mandatorily required to obtain registration?

a) Yes

b) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services

c) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services and for others if the specified threshold exceeds in any financial year

d) No only if the specified threshold exceeds in any financial year

20) Whether all persons are mandatorily required to obtain registration?

a) Yes

b) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services

c) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services and for others if the specified threshold exceeds in any financial year

d) No only if the specified threshold exceeds in any financial year

*21) The supply of goods after the completion of the Job work from the registered place of business place of a Job worker OR by declaring it as an additional place of business of the former to the place of the business of the recipient of the supply will a taxable supply of:

a) The Principal or the Dealer who despatched the goods for Job work

b) The Job worker

c) Either of the party

d) Deemed supply of the Job worker

22) Where a business carried on by a taxable person registered under this Act is transferred to another person as agoing concern,_______

a) Transferor’s regsitration shall be taken as transferee’s registration

b) The transferee shall be liable to be registered wef the date of transfer

c) Both transferor and transferee are required to obtain fresh registration


23) Whether the dealer making the exclusive supply of Liquor or Petrol, Diesel and Crude Oil should have to take regsitration under the GST Act?

a) Yes

b) No

c) Optional

d) Either (a) or (c)

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24) Who is called a Deemed supplier of Services?

a) Input Service Distributor

b) Job Worker

c) Agent

d) Subsidiary Company

25) Which of the following person is compulsorily required to get himself registered under GST law irrespective of the threshold limit

a) Person making any inter-state taxable supply

b) Persons who are required to pay tax under Reverse Charge

c) Caual taxable persons making taxable supply

d) All of the above

26) Threshold limit of registration is applicable to the following persons:

a) Input Service Distributor, whether or not separately registered under this Act

b) Non-resident taxable persons making taxable supply

c) Every Electronic Commerce Operator


27) A person having ____business verticals in a State ____obtain a separate registration for each business vertical.

a) Single, shall

b) Multiple, shall

c) Multiple, may


28) Which of the following statements are correct?

a) Voluntary registration is not possible under GST

b) Voluntary regsitered person not liable to comply with all the provisions of the GST

c) A person may get himself registered voluntary and shall comply with all the provisions of the Act


Q A Q A Q A Q A Q A

1) d 2) a 3) a 4) c 5) d

6) a 7) b 8) d 9) d 10) a

11) b 12) d 13) a 14) c 15) d

16) d 17) c 18) b 19) c 20) c

21) a 22) b 23) b 24) a 25) d

26) d 27) c 28) c

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15. Returns


Q

1) The details of outward supplies of goods or services in Form GSTR 1 shall be submitted by

a) 10th of the succeeding month

b) 18th of the succeeding month

c) 17th of the succeeding month

d) 20th of the succeeding month

2) The details of inward supplies of goods or services in Form GSTR 2 shall be submitted by


b) 18th of the succeeding month



3) A registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52, shall file its periodical return by

a) 18th of the month succeeding the quarter

b) 16th of the month succeeding the quarter



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4) Every tax payer paying tax under section 10 (Composition levy) shall file the return by:

a) 18th of the month succeeding the quarter



d) 20th of the month succeeding the quarter

5) Which of the following is correct?

a) Non-Resident taxable person shall file the return by 20th of succeeding month

b) Input Service Distributor shall furnish the return by 13th of the succeeding month

c) The person deducting tax at source shall furnish the return by 10th of the succeeding month

d) All the above

6) The e-commerce operator collecting tax under section 52 shall file its monthly return by





*7) State which is a true statement

a) The last date for payment of taxes to the appropriate government is the last date on which the registered taxable person is required to furnish the return

b) Every person who is required to furnish return under 39(1) [Normal Assessee] and 39(2) [Composition Assessee] shall furnish return for every tax period whether or not supplies have been effected during such period.

c) Both (a) and (b)

d) Both (a) or (b)

8) The due date for furnishing the annual return for every financial year by every registered taxable person other than ISD, non-resident tax payer, a person paying tax under section 10, 51 or 52 and a casual taxable person is

a) 30th of September following the end of the financial year

b) 20th of October following the end of the financial year

c) 31st of December following the end of the financial year

d) 31st of June following the end of the financial year

9) The final return shall be filed by the registered taxable person within

a) 3 months of the date of cancellation

b) Date of order of cancellation

c) LATER of the (a) or (b)

d) Earlier of the (a) or (b)

Q A Q A Q A Q A Q A

1) a 2) c 3) d 4) a 5) d

6) d 7) c 8) c 9) c

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16. Payment of Taxes


Q

1) A person is entitled to take credit of input tax as self-assessed in the return and credited to Electronic credit ledger on

a) Final basis

b) Provisional basis

c) Partly Provisional and partly final basis

d) All of the above

2) Provisional Input tax credit can be utilized against

a) Any Tax liability

b) Self Assessed output Tax liability

c) Interest, Penalty, Fine

d) Late fee

3) Matching of Input Tax credit on inward supply by recipient is undertaken with

a) Monthly return filed by the supplier

b) Outward supply filed by the supplier

c) Invoices maintained by the supplier

d) No matching is required

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4) Is it mandatory that the tax on the supply has to be paid by the supplier so that the recipient can claim credit?

a) No

b) Yes

c) Optional


5) Input Tax credit as credited in Electronic Credit ledger can be utilized for

a) Payment of Interest

b) Payment of penalty, fine

c) Payment of late fees

d) Payment of Taxes

6) Deposits towards tax, penalty, interest, fee or any other amount are credited into the ---- -----------of a taxable person:

a) Electronic Credit Ledger

b) Electronic Tax Liability Ledger

c) Electronic Cash Ledger

d) All of the above

*7) The Input Tax Credit as self-assessed by a taxable person is credited into the

a) Electronic Credit Ledger

b) Electronic Tax Liability Ledger

c) Electronic Cash Ledger

d) All of the above

8) Cross-Utilization of credit of available IGST after utilization towards payment of IGST is done in the following chronological order:

a) CGST then SGST/UTGST

b) SGST/UTGST then CGST

c) CGST, UTGST and SGST simultaneously

d) Only IGST

9) Which of the following Statements is true?

a) ITC of CGST is first utilized for payment of CGST and the balance is utilized for payment of SGST/UTGST

b) ITC of SGST is first utilized for payment of SGST and the balance is utilized for payment of CGST

c) ITC of CGST is first utilized for payment of CGST and the balance is utilized for payment of IGST

d) All of the Above

10) Interest is payable on :-

a) Late payment of tax

b) Undue/excess claim of Input Tax Credit.

c) Undue/Excess reduction in output tax liability

d) All of the above

11) Interest is calculated:

a) From the date following the day on which tax becomes due to be paid

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b) Last day such tax was due to be paid

c) No periods specified

d) Last day of the month in which such tax was due to be paid

12) Which of these registers/ledgers are maintained online?

a) E-Tax liability register

b) E-Credit ledger

c) E-Cash ledger

d) All of them

13) Payment made through Challan will be credited to which registers/ledgers?

a) E- Tax liability register

b) E- Credit ledger

c) E- Cash ledger

d) All of them

14) Balance in electronic cash ledger can be utilized against which liability?

a) Output tax payable

b) Interest

c) Fees or Penalty

d) All of the above

15) Balance in electronic credit ledger under IGST can be used against which liability?

a) IGST Liability only

b) IGST and CGST liability

c) IGST, CGST and SGST liability

d) No sequence prescribed

16) Balance in electronic credit ledger under CGST can be used against which liability?

a) GST Liability only

b) CGST and IGST liability

c) CGST, IGST and SGST liability


17) Balance in electronic credit ledger under SGST can be used against which liability?

a) SGST Liability only

b) SGST and IGST liability

c) SGST, IGST and CGST liability


18) A Company has head office in Bangalore and 4 branches in different states, all registered under GST and one ISD registered unit in Delhi. How many electronic cash ledgers will the company have?

a) 1

b) 2

c) 5

d) 6

19) A taxable person failed to pay tax and/or file returns on time. He should pay interest on?

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a) Gross tax payable

b) Goss tax payable & input credit claimed

c) Net tax payable

d) No interest payable, if reasonable cause is shown

*20)

From which date interest is liable in case of excess input tax credit claimed?

a) From the late date of the month in which credit is claimed

b) From the due date for filing Inward Return [GSTR-02] of the month in which credit is claimed

c) From the due date for filing periodic return [GSTR-03] of the month in which credit is claimed

d) From the date of utilization of credit

21) Over the Counter Payment can be made in branches of Banks Authorized for deposits up to Rs.__________ per challan per tax period?

a) 5,000

b) 10,000

c) 20,000

d) 40,000

22) If a person liable to pay tax, fails to pay such tax or any part thereof shall for the period for which the tax or any part thereof remains unpaid, is liable to pay, on his own, interest not exceeding___

a) 6%

b) 12%

c) 18%

d) 24%

23) If a taxable person who makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability, shall pay interest at such rate not exceeding____.

a) 6%

b) 12%

c) 18%

d) 24%

24) Utilization of Integrated GST would be in order of

a) IGST, CGST, SGST

b) IGST, SGST, CGST

c) CGST, SGST, IGST

d) SGST, IGST, CGST

25) Which of the following items are debited to electronic credit ledger?

a) Output tax

b) Interest

c) Penalty

d) All of the above

26) Which input tax credit cannot be claimed against which output tax liability?

a) IGST, SGST

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b) CGST, IGST

c) SGST, IGST

d) CGST, SGST

27) Which of the following shall be discharged first, while discharging liability of a taxable person?

a) All dues related to previous tax period

b) All dues related to current tax period

c) Additional demand raised

d) No such condition is mandatory

28) Cross utilization of ITC is not allowed between:

a) CGST and SGST

b) SGST and IGST

c) IGST and CGST


29) Tax paid on goods and services under _________ Act is allowable both under SGST Act and CGST Act?

a) IGST

b) CGST

c) SGST

d) VAT

30) ITC includes tax payable _________also

a) VAT

b) Reverse Charge

c) Excise

d) Custom laws

31) The amounts can be credited in E-Cash ledger by_______

a) Internet Banking

b) Using Credit cards or Debit Cards

c) NEFT or RTGS

d) Any of the above

32) The limit for Over the Counter payment is Rs.__________ per challan per tax period

a) 10,000

b) 20,000

c) 40,000

d) 80,000

33) Suppose Mr.X has a SGST credit of Rs.10 lakhs in his ITC ledger and at the same time, he has a CGST output liability of Rs.7 lakhs. What an amount should be deposited by Mr.X to his E-Cash ledger maintained at the GSTN portal

a) No deposit is required

b) Rs. 2 Lakhs

c) Rs. 5 Lakhs

d) Rs. 7 Lakhs

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34) Suppose Mr.Y has a IGST credit of Rs.14 lakhs in his ITC ledger and at the same time, he has a IGST liability of Rs.7 lakhs, CGST liability of Rs.8 lakhs and SGST liability of Rs.5 lakhs. What an amount should be deposited by Mr.Y to his E-Cash ledger maintained at the GSTN portal

a) Rs. 6 lakhs (Rs.1 lakhs to SGST + Rs.5 lakhs to CGST)

b) Rs. 6 lakhs (Rs.1 lakhs to CGST + Rs.5 lakhs to SGST)

c) Rs. 6 lakhs (Rs.1 lakhs to IGST + Rs.5 lakhs to SGST)

d) Rs. 6 lakhs (Rs.2 lakhs to IGST + Rs.4 lakhs to SGST)

35) Suppose Mr.Z has a credit of Rs.15 lakhs in his ITC ledger and at the same time, he has an interest arrears dues of Rs. 16 Lakhs and penalty dues of Rs.12 lakhs. If so, how much Mr.Z has to deposit to settle the above interest and penalty dues?

a) Rs.16 Lakhs

b) Rs.28 Lakhs

c) Rs.12 Lakhs

d) Rs.15 Lakhs

Q A Q A Q A Q A Q A

1) b 2) B 3) b 4) b 5) d

6) c 7) A 8) a 9) c 10) d

11) a 12) D 13) c 14) a 15) c

16) b 17) B 18) c 19) a 20) c

21) b 22) C 23) d 24) a 25) a

26) d 27) a 28) a 29) a 30) b

31) d 32) a 33) d 34) b 35) b

17. Refunds


Q

1) What is the relevant date in case of refund on account of excess payment of GST due to mistake or inadvertence?

a) Date of payment of GST

b) Last day of the financial year

c) Date of providing of service

d) Due date of payment of GST

2) Refund of accumulated input tax credit at the end of any tax period is eligible in cases of?

a) Due to purchase of huge stocks

b) Credit cannot be used for any reason

c) Due to Exports and input tax rate being higher than output tax rate (Inverted duty structure)

d) Due to Exports only

3) Interest U/s 56 is applicable on delayed payment of refunds issued under?

a) Section 54

b) Section 44

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c) Section 34

d) Section 45

4) Interest U/s 56 has to be paid for delayed refunds, if the refund is not granted within ……….

a) 90 days

b) 3 months

c) 60 days

d) 120 days

5) In cases where the application of refund is found to be in order, the refund amount shall be credited to …………………. Fund.

a) Investor Protection and Education Fund

b) Refund Claim Fund

c) Consumer Welfare Fund


6) The overall objective of the Consumer Welfare Fund is

a) To facilitate a simplified refund mechanism.

b) To promote and protect the welfare of the consumers and strengthen the consumer movement in the country.

c) To boost the overall growth of the economy

d) Both a and b

*7) Proper and separate account and other relevant records in relation to the Fund in prescribed form in consultation with the Comptroller and Auditor-General of India shall be maintained by ……………….

a) the Government

b) the authority specified by the Government

c) (a) and (b)

d) (a) or (b)

8) Refund application is to be filed before the expiry of ____________ from the relevant date.

a) Two years

b) One year

c) 180 days

d) 360 days

9) A specialised agency of the UNO can claim refund of tax paid on_________

a) Intra-State supply of goods and/or services

b) Inter-state supply of goods and/or services

c) Inward supply of goods and/or services


10) What is the time limit for filing of refund application by a specialised agency of the UNO?

a) Before the expiry of nine months from the last day of the quarter in which such inward supply received

b) Before expiry of nine months from the last day of the month in which such inward supply received

c) Before expiry of six months from the last day of the MONTH in which such inward supply was received.

d) Before expiry of six months from the last day of QUARTER in which such inward supply was received

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11) A registered person claiming refund of balance in electronic cash ledger may make such a claim in:-

a) Application for refund

b) Annual Return

c) Returns filed at the end of tax periods

d) Any of the above

12) The applicant is not required to furnish documentary evidence if the amount of refund claimed is

a) Rs 6 lacs

b) Rs 2 lacs

c) Rs 5 lacs

d) Rs 10 lacs

13) The time limit to proper officer to pass final order after accepting the refund application is -

a) Within sixty days from the date of receipt of application.

b) Within seventy days from the date of receipt of application.

c) Within ninety days from the date of receipt of application

d) Within thirty days from the date of receipt of application.

14) Interest on refund amount is required to be paid after expiry of ………. from the date of receipt of the application

a) 60 days

b) 70 days

c) 90 days

d) 30 days

15) What is the rate of interest to be payable in case of delay in sanctioning the refund claimed?

a) Not exceeding 6%

b) Not exceeding 9%

c) Not exceeding 12%

d) Not exceeding 18%

16) Zero rated supply includes-

a) Exports of goods or/ and services

b) Supply of goods or/and services to a SEZ developer or SEZ Unit

c) Both (a) and (b)


*17) A registered taxable person is eligible to claim refund in respect of export of goods and services in the following cases:

a) Under bond, without payment of IGST and claim refund of unutilized Input tax credit

b) On payment of IGST and claim refund of IGST paid on such goods and services

c) None of the above

d) Both (a) and (b)

Q A Q A Q A Q A Q A

1) a 2) C 3) a 4) c 5) c

6) b 7) D 8) a 9) c 10) d

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11) c 12) B 13) a 14) a 15) A

16) c 17) d

18. Assessment


Q

1) Provisional assessment under the GST law is permitted to be

a) At the instance of the taxable person

b) At the instance of the tax authorities on a best judgment basis in absence of adequate details or response from registered person

c) Either of (a) and (b)

d) No such provision

2) On the grounds of sufficient reasons being provided by proper officer the time period for passing final assessment order can be extended by Joint/ Additional Commissioner for further period of not exceeding

a) 2 months

b) 3 months

c) 6 months

d) 9 months

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3) On the grounds of sufficient reasons being provided by proper officer the time period for passing final assessment order can be extended by Commissioner for further period of

a) 6 months

b) 4 years

c) 2 years

d) 6 years

4) A taxable person may apply for provisional assessment:

a) when the taxable person is not able to determine the value of goods and/or services

b) when the taxable person is not able to determine the rate of tax

c) (a) or (b)


5) Proper officer shall pass an order, within a period not later than _______ from the date of receipt of such request, allowing payment of tax on provisional basis:

a) 30 days

b) 60 days

c) 90 days

d) 120 days

6) The provisional assessment sought by a taxable person can be used by:

a) The taxable person who has sought the provisional assessment.

b) The friends and relatives of the taxable person who has sought the provisional assessment.

c) The holding/subsidiary company of the taxable person who has sought the provisional assessment.

d) Any of the above

*7) What is the time period within which the final assessment order should be passed?

a) Six months from the date of the provisional assessment.

b) Nine months from the date of the provisional assessment.

c) Ten months from the date of the provisional assessment.

d) One year from the date of the provisional assessment.

8) If final order is not passed within six months, time period specified in 60(1) may, on sufficient cause being shown and for reasons to be recorded in writing, be extended:

a) by the Joint/Additional Commissioner for a further period of six months and by the Commissioner for such further period not exceeding four years.

b) by the Commissioner for a further period of seven months.

c) by the Joint/Additional Commissioner for a further period of two years.

d) by the Joint/Additional Commissioner for a further period of one year and by the Commissioner for a further period of six months

9) Section 63 deals with

a) Assessment of taxable persons who have failed to file the returns.

b) Assessment of registered taxable person who have filed returns as per the law.

c) Assessment of unregistered taxable persons

d) Assessment of any taxable person, whether registered or unregistered

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10) What is the time limit for passing order u/s 63?

a) 5 years from the date due date for filing of the annual return for the year to which tax not paid relates.

b) 6 years from the date due date for filing of the annual return for the year to which tax not paid relates.

c) 5 years from the end of financial year in which tax not paid relates to

d) No time limit

11) No Notice is required to be given before passing assessment order under section 63?

a) True

b) False

c) Can’t say


12) What is the consequence, where a taxable person fails to obtain registration even though liable to do so?

a) PO may assess the tax liability to the best of his judgement.

b) Issue a SCN and pass assessment order after providing opportunity of being heard.

c) (a) or (b)

d) (a) and (b)

13) What are the pre requisites for proper officer to pass assessment order under Section 63?

a) Period selected for assessment has to be within 5 years from the end of due date for filing annual return of relevant period.

b) Show cause notice has to be issued before passing assessment order.

c) Opportunity of being heard has to be given before passing assessment order.

d) All of the above.

14) Whether proper officer can proceed Suo-moto in assessing the tax liability of a taxable person on possession of relevant evidence?

a) No, the proper officer has to obtain prior permission of [Additional/Joint Commissioner] to proceed to assess the tax liability.

b) No, the proper officer has to obtain prior permission of Chief Commissioner to proceed to assess the tax liability.

c) No, the proper officer has to obtain prior permission of Principle Chief Commissioner to proceed to assess the tax liability.

d) No, the proper officer has to obtain prior permission of Principle Chief Commissioner to proceed to assess the tax liability

15) Whether summary assessment can only be initiated on previously filed return [u/s 39 – Normal periodic return) and u/s 45 – Final return)?

a) Summary assessment can be initiated on a person who has previously filed the return.

b) Summary assessment can be initiated on a person who has previously not filed the return

c) (a) or (b). Submission of return u/s 39 [Normal periodic return] and u/s 45 [Final return] is not prerequisite.

d) Only (a)

16) The basic nature of assessment in GST will be:

a) Self Assessment

b) Provisional Assessment

c) Best Judgement Assessment

d) Summary Assessment

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17) The assessment made with the proper sanction and mostly without any personal hearing due to the sufficient reason that the person will fail to discharge the tax liability or delay in assessment will adversely affect the interest of revenue is called:

a) Self Assessment

b) Provisional Assessment

c) Best Judgement Assessment

d) Summary Assessment

Q A Q A Q A Q A Q A

1) a 2) c 3) b 4) c 5) c

6) a 7) a 8) a 9) c 10) a

11) b 12) d 13) d 14) a 15) c

16) a 17) d

19. Audit


Q

1) Who is authorised to undertake the audit of a registered person?

a) The Commissioner of CGST/Commissioner of SGST

b) any officer authorised by Commissioner of CGST/Commissioner of SGST by way of a general or a specific order.

c) Only (b)

d) (a) or (b)

2) Whether any reason to believe or evidence is required for initiation of audit u/s 65?

a) Reason to believe is a prerequisite for initiation of audit u/s 65.

b) Proper evidence is a prerequisite for initiation of audit u/s 65.

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c) (a) or (b)

d) No, Sec 65 does not specify any such requirements.

3) Prior to the conduct of audit u/s 65 the registered person shall be informed, by way of a notice, sufficiently in advance

a) not less than fifteen working days

b) not less than thirty working days

c) not less than forty working days

d) not less than sixty working days

4) The time limit for completion of the audit u/s 65(1) is:

a) six months from the date of commencement of audit

b) three months from the date of commencement of audit

c) One year from the date of commencement of audit.

d) Fifteen months from the date of commencement of audit

5) Where the [Commissioner] is satisfied that audit in respect of such taxable person cannot be completed within three months from the date of commencement of audit the time limit can be extended:

a) by a further period not exceeding six months

b) by a further period not exceeding seven months

c) by a further period not exceeding eight months

d) No extension of time limit is permissible

*6) During the course of audit, the authorised officer may require the registered person:

a) to afford him the necessary facility to verify the books of account or other documents as he may require

b) to furnish such information as he may require and render assistance for timely completion of the audit.

c) (a) and/or (b)

d) Only (b)

*7) Special audit u/s 66 can be directed at any stage of scrutiny, enquiry, investigation or any other proceedings having regard to nature and complexity of the case if, any officer not below the rank of [Assistant Commissioner]:

a) is of the opinion that the value has not been correctly declared

b) the credit availed is not within the normal limits.

c) At the discretion of the officer

d) (a) or (b)

8) Who can direct the registered person to get his records audited u/s 66?

a) An officer not below the rank of [Assistant Commissioner], with the prior approval of the [Commissioner]

b) An officer not below the rank of [Joint/Additional], with the prior approval of the [Chief Commissioner]

c) An officer not below the rank of [Chief Commissioner], with the prior approval of the [Principle Chief Commissioner]

d) All of the above.

9) Who is authorised to conduct the audit including books of account u/s 66?

a) Chartered Accountant as may be nominated by the [Commissioner].

b) Cost Accountant as may be nominated by the [Commissioner].

c) (a) or (b)

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d) Comptroller and Auditor General of India.

10) The time limit to submit a report of the audit u/s 66 is:

a) within the period of ninety days without any extension of time.

b) within the period of thirty days without any extension of time.

c) within the period of ninety days. The proper officer may, on an application made to him in this behalf or for any material and sufficient reason, extend the said period by another ninety days.


*11) The expenses of audit u/s 66 is determined and paid by:

a) the [Commissioner]

b) the [Deputy/ Assistant Commissioner] with prior approval of the Commissioner.

c) the registered person.

d) Central Government

Q A Q A Q A Q A Q A

1) d 2) d 3) a 4) b 5) a

6) c 7) d 8) a 9) c 10) c

11) a

20. Inspection, search, seizure, arrest


Q

1) Initiation of action under section 67 is by a Proper Officer not below the rank of …………..

a) Superintendent

b) Assistant Commissioner

c) Joint Commissioner

d) Commissioner

2) Which are the places of business / premises which can be inspected by the proper officer under this section?

a) Any places of business of a taxable person

b) Any places of business of a taxable person engaged in the business of transporting goods

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c) Any places of business of an owner or an operator of a warehouse or godown

d) Any other place

e) All of the above

3) Is it mandatory that ‘reasons to believe’ must exist before issuing authorization for Inspection or Search and Seizure by the proper officer?

a) Yes

b) No

c) No such requirement


4) Can the seized goods be released on provisional basis upon execution of a bond and furnishing of security or on payment of applicable tax, interest and penalty?

a) Yes

b) No

c) At proper officer’s discretion


5) The authorisation to conduct the inspection or search or, as the case may be, seizure of goods, documents, books or things liable to confiscation will be in form _____.

a) GST INS- 01.

b) GST INS- 02.

c) GST INS- 03.

d) GST INS- 04.

6) Seizure is defined as taking of something by____

a) Being liberal

b) Force

c) Coercion

d) Influence

7) Proper officer not below the rank of Joint Commissioner or an officer authorised by such proper officer can make an order of seizure in form ______

a) GST INS-01

b) GST INS-02

c) GST INS-03

d) GST INS-04

8) Where Goods cannot be seized (due to its volume, weight or other physical characteristics or due to its being of a dangerous nature) the proper officer or the authorised officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM ________ that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer

a) GST INS-01

b) GST INS-02

c) GST INS-03

d) GST INS-04

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9) Goods seized by a proper officer or an authorised officer can be released on a provisional basis upon execution of a bond in Form _______ for the value of goods and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable

a) GST INS-01

b) GST INS-02

c) GST INS-03

d) GST INS-04

10) If the goods so seized are of perishable or hazardous nature, such goods can be released by an order under ________

a) Form GST INS-02

b) Form GST INS-03

c) Form GST INS-04

d) Form GST INS-05

11) For the offences mentioned, where the value of the offence exceeds 200 to 500 lakh Rupees, the imprisonment may extend to ________and with fine?

a) 2 years

b) 3 years

c) 4 years

d) 5 years

12) For the offences mentioned, where the value of the offence exceeds 500 lakh Rupees, the imprisonment may extend to ________and with fine?

a) 2 years

b) 3 years

c) 4 years

d) 5 years

13) Where any person convicted again (second or every subsequent time) of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to ________and with fine.

a) 2 years

b) 3 years

c) 4 years

d) 5 years

14) The ____________ is vested with a power to authorise by an order any CGST officer to arrest a person, where there is a reason to believe that such person has committed the specified offences

a) Commissioner

b) Joint Commissioner

c) Assistant Commissioner

d) Chief Commissioner

Q A Q A Q A Q A Q A

1) c 2) e 3) a 4) a 5) a

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6) b 7) b 8) c 9) d 10) d

11) b 12) d 13) d 14) a

21. Introduction to IGST Act, 2017


Q

1) Which of the following is an inter-State supply?

a) Supplier of goods located in Lucknow, UP and place of supply of goods SEZ located in Lucknow, UP

b) Supplier of goods located in Lucknow, UP and place of supply of goods in Jaipur

c) Supplier of goods located in Lucknow, UP and place of supply of goods SEZ located in Chandigarh

d) All the above

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2) Which of the following is an intrastate supply?

a) Supplier of goods located in Lucknow, UP and place of supply of goods SEZ located in Lucknow, UP

b) Supplier of goods located in Lucknow, UP and place of supply of goods in Jaipur

c) Supplier of goods located in Lucknow, UP and place of supply of goods in Lucknow, UP

d) All the above

3) Which of the following transaction is inter-state supply of goods?

a) Location of supplier is in Lucknow, UP and location of recipient is in Mumbai.

b) Location of supplier is in Lucknow, UP and place of supply is Mumbai

c) Location of supplier and place of supply is Lucknow, UP


4) Supply of goods imported into the territory of India till they cross the customs frontiers of India is an____

a) Intra-state supply

b) Inter-State supply [Inter-state trade or commerce]

c) Export


5) The maximum rate of IGST can be:

a) 20%

b) 30%

c) 40%


6) IGST is levied on:

a) Inter-State supplies

b) Intra-State Supplies

c) Both (a) and (b)


7) _________________ is levied on the import of goods and/or services.

a) IGST

b) CGST and SGST

c) CGST and UTGST


8) IGST means________

a) Inter-state GST

b) Integrated GST

c) Import GST

d) International GST

9) IGST Act is passed by_______

a) Parliament

b) State Legislature

c) Union Territory

d) All of the above

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10) IGST levied and collected is_______

a) Allotted to Centre only

b) Allotted to State only

c) Allotted to UTs only

d) Apportioned between Centre and the States

*11) Unless and until notified, IGST shall not be levied on the inter-state supply of which of the following:

a) Industrial alcohol

b) Works Contract

c) Petroleum


12) What is the rate of IGST?

a) CGST rate

b) SGST rate

c) CGST + SGST rate

d) VAT rate

13) The Tourist can reclaim refund of following taxes paid

a) CGST and SGST/UTGST on supply of goods and services

b) IGST on supply of goods consumed

c) IGST paid by tourist leaving India on any supply of goods taken out of India by him


14) Tourist means a person not normally resident in India, who enters India for a stay of not more than ________ for legitimate non-immigrant purposes.

a) One month

b) Three month

c) One year

d) Six months

15) Supply of services/ goods or both to a unit in Special Economic Zone is considered as________

a) Export supply

b) Import supply

c) Zero rated supply


Q A Q A Q A Q A Q A

1) d 2) c 3) b 4) b 5) c

6) a 7) a 8) b 9) a 10) d

11) c 12) c 13) c 14) d 15) c


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Q

1) Which of the following supply of goods is an intra-State supply?

a) Location of supplier in Maharashtra and place of supply in Tamil Nadu

b) Location of supplier in Uttar Pradesh and place of supply in Uttar Pradesh

c) Location of supplier in Maharashtra and place of supply on Andhra Pradesh


2) Place of supply in case of installation of lift in a building is_______

a) Where the movement of lift commences from the supplier’s place

b) Where the delivery of lift is taken

c) Where the installation of lift is made

d) Where address of the recipient is mentioned in the invoice

3) Place of supply of food taken onboard at Delhi for an aircraft departing from Delhi to Bangalore via Hyderabad is________

a) Address of the aircraft carrier mentioned on the invoice of the supplier

b) Delhi

c) Bangalore

d) Hyderabad

4) What is place of supply in case of importation of goods?

a) Customs port where the goods are cleared

b) Location of the importer in India

c) Place where the goods are delivered after clearance from customs port

d) Owner of the goods

5) Real estate agent in Delhi charges brokerage fee to Company A located in Chandigarh for assistance in getting a commercial property in Mumbai. Which is the place of supply in this case?

a) Delhi

b) Chandigarh

c) Mumbai


6) What is the place of supply of service where a restaurant provides catering service at the premise of the customer (outdoor catering)?

a) Address of the restaurant from where the food is supplied

b) Customer premise where catering service is provided

c) Optional


7) Mr. X a resident from Pune conducts training for employees of P Ltd. being a registered person under GST based out in Mumbai at a resort in Darjeeling. The place of supply in this case is_______

a) Mumbai

b) Pune

c) Darjeeling


8) Place of supply of service for DTH by ABC Pvt. Ltd. located in Mumbai to customer in Delhi is__________

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a) Mumbai

b) Delhi

c) Optional


9) Mr. X of Hyderabad not having bank account takes a demand draft in Mumbai from ABC Bank for his visa purpose. The place of supply is_________

a) Hyderabad

b) Mumbai

c) Optional


10) Place of supply of goods, other than supply of goods imported into, or exported from India, when supply involves movement of goods is the________

a) Location of the goods at the time at which the movement terminates for delivery

b) Location of the goods at the time at which the movement starts for delivery

c) Location of the principal place of business of the recipient

d) Location of the principal place of business of the supplier

11) Place of supply of goods, other than supply of goods imported into, or exported from India, when supply does not involve movement of goods is the________

a) Location of the supplier

b) Location of the goods at the time of the delivery to the recipient

c) Location of the goods at the time of purchase order

d) Location of the recipient

12) Place of supply of goods, other than supply of goods imported into, or exported from India, where the goods are assembled or installed is the__________

a) Location of the agent of the recipient

b) Location of the recipient

c) Location of the supplier

d) Place of the such assembly or installation

13) Place of supply of goods, other than supply of goods imported into, or exported from India, where the goods are supplied on board a conveyance such as vessel, an aircraft, a train or motor vehicle is the_________

a) Location of the recipient

b) Location of the supplier

c) Location at which such goods are taken on board


14) The place of supply of goods imported into India shall be the_________

a) Location of the importer

b) Location of the exporter

c) Location of the agent of exporter


15) The place of supply of goods exported from India shall be the_________

a) Location of the importer

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b) Location of the exporter

c) Location of the agent of exporter

d) Location outside India

16) The default rule of place of supply of services made to a registered person shall be the________

a) Location of the registered person

b) Location of the service provider

c) Location where the service is provided

d) Any of the above

17) The default rule of place of supply of services made to any person other than a registered person if address on record exist shall be the________

a) Location where service is rendered


c) Location of the recipient

d) Any of the above

18) The default rule of place of supply of services made to any person other than a registered person if address on record doesn’t exist shall be the________

a) Location where service is rendered


c) Location of the recipient

d) Any of the above

19) Place of supply of services of architects in relation to the design of office building shall be the_________



c) Location of such office building

d) Any of the above

20) Place of supply of services in relation to lodging accomodation shall be the_______



c) Location at which the lodging accomodation is located

d) Any of the above

21) ABC Ltd of Delhi has entered into a contract with KSM Training Ltd. Of Mumbai for training and performance appraisal of its employees. The services were performed at Nainital Training Centre of KSM Training Ltd. Determine the place of supply of services in case ABC Ltd is not registered.

a) Mumbai

b) Nainital

c) Delhi

d) Any of the above

22) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto shall be the _______

a) Place where the event is actually held

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b) Location of the supplier of service

c) Location of the recipient of service

d) Any of the above

23) The place of supply of services provided by way of transportation of goods, including by mail or courier, to a person other than a registered person, shall be the________

a) Place at which such goods are handed over for their transportation



d) Any of the above

24) Place of supply of services in relation to mobil connection for pre-paid customers other than through internet banking shall be the_________

a) Location where such prepayment is received as such vouchers are sold



d) Any of the above

25) The place of supply of passenger transportation services to a person other than a registered person, shall be the________

a) Location of the supplier of service

b) Place where the passenger embarks on the conveyance for a ontinuous journey

c) Place of destination of the journey

d) Any of the above

26) The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle shall be the________

a) Location of the supplier of service

b) Place where the passenger embarks on the conveyance for a ontinuous journey

c) Location of the first scheduled point of departure of that conveyance for the journey

d) Place of destination of journey

27) The place of supply of insurance services to a regsitered person, shall be the _________



c) Location where the services are performed

d) Any of the above

28) Place of supply of a transaction in territorial waters is_______



c) Coastal state where the nearest point of the appropriate baseline is located


29) Where will be the place of supply when the goods are supplied on the direction of the third party?



c) Location of the third party

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d) Any of the above

30) Where will be the place of supply of goods supplied in a train which is heading towards Delhi from Chennai, if the goods are taken on board at Coimbatore?

a) Delhi

b) Chennai

c) Coimbatore


31) In case of any ambiguity where the place of supply cannot be determined as provided in IGST Act, 2016 who will determine place of supply?

a) Central Government or State Government on the recommendation of the Council

b) Central Government and State Government on the recommendation of the Council

c) In a manner as may be prescibed

d) Central Government

Q A Q A Q A Q A Q A

1) b 2) c 3) b 4) b 5) c

6) b 7) a 8) b 9) b 10) a

11) b 12) d 13) c 14) a 15) d

16) a 17) c 18) b 19) c 20) c

21) b 22) a 23) a 24) a 25) b

26) c 27) b 28) c 29) c 30) c

31) c

24.UTGST Act, 2017


Q

1) UTGST Act shall not be applicable to which Union Territory?

a) Chandigarh

b) Daman & Diu

c) Delhi

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d) Andaman & Nicobar Islands

2) UTGST Act shall not be applicable to which Union Territory?

a) Dadra & Nagar Haveli

b) Daman & Diu

c) Lakshadweep

d) Pondicherry (Puduchery)

3) How many UTGST Act will be there?

a) 4

b) 5

c) 1

d) 2

4) Which of the following taxes would be levied on an intra-State supply of goods or services or both?

a) CGST

b) Union Territory tax


d) IGST

5) Does GST applies on Alcoholic liquor for Human Consumption?

a) Yes

b) No

c) May be

d) Can’t say

6) Is there any maximum rate prescribed under UTGST?

a) 14%

b) 28%

c) 20%

d) 30%

7) Who will notify the rate of tax to be levied under UTGST?

a) Central Government suo moto

b) State Government suo moto

c) GST Council suo moto

d) Central Government as per the recommendations of the GST Council

8) Unless and until notified, UTGST shall not be levied on the intra-State supply of which of the following:

a) Industrial alcohol

b) Restaurant Service

c) Petroleum


9) What are the supplies on which reverse charge mechanism would apply?

a) Notified categories of goods or services or both

b) Inward supply of goods or services or both from an unregistered dealer


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10) What if an e-commerce operator having no physical presence in the taxable territory, does not have a representative in the taxable territory?

a) His will have to discharge his tax liability in foreign currency

b) He will not be liable to tax

c) He has to appoint a person in the taxable territory for the purpose of paying tax on his behalf

d) Any of the above

11) Which of the following can be issued by Central Government/ State Government to exempt goods and/or services on which tax is leviable in exceptional cases?

a) Exemption Notification

b) Special order



12) For the purpose of clarifying the scope or applicability of any notification or order issued, insert an explanation in such notification or order by notification at any time WITHIN _____YEAR of issue of the notification or order, and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.

a) One year

b) Two years

c) Three years


13) “Government” under UTGST Act means-

a) Chandigarh Government

b) Daman & Diu Government

c) Lakshdweep and other territory Goverment

d) The Administrator or any authority or officer authorised to act as a Administrator by the Central Government

14) The Union territory tax on the supply of ___________shall be levied with effect from such date as may be notified by the Central Government on the recommendation of the council.

a) Petroleum Crude

b) High Speed Diesel

c) Motor Spirit

d) All of the above

15) The Union Territory tax in respect of supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid be such person on _________as the recipient

a) Normal Charge basis

b) Reverse Charge basis

c) Partial Reverse Charge basis


16) A registered person who has paid the Central tax and Union Territory tax on a transaction considered by him to be an Intra-state supply, but which is subsequently held to be an inter-state supply, shall be _________

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a) Allowed as Input tax credit

b) Refunded

c) Appropriated as Integrated tax

d) Adjusted against future tax liability

Q A Q A Q A Q A Q A

1) c 2) d 3) c 4) c 5) b

6) c 7) d 8) c 9) c 10) c

11) c 12) a 13) d 14) d 15) b

16) b

Multiple Choice Questions

Q

1) Does an existing Tax payer have to surrender the existing Registration certificates to obtain GST registration?

a) No, automatically he will receive final registration.

b) Yes, all registration certificates to be surrendered

c) No, Provisional Registration is automatic


2) Is PAN Mandatory for Migration to Provisional GST registration?

a) No

b) Yes

c) PAN Application is sufficient


3) What is the validity of the provisional registration certificate issued to the existing dealers?

a) 6 months

b) 12 months

c) 3 months

d) Not mentioned in the law

4) Is a Composition dealer registered under the old law required to obtain Final GST Registration?

a) No, Old number will continue

b) Yes, mandatory for all Composition dealers

c) Yes, Subject to the turnover crossing the GST Turnover limit.


5) Will a person having multiple registration in various states receive single registration on Migration

a) Separate Registration would have to be obtained on migration for each State even for a single PAN number.

b) Centralised Registration will be obtained for each PAN number across all States.

c) Separate Registration would have to be surrendered and fresh registration is required to be obtained


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6) What will be the amount carried forward as CGST/SGST/UTGST from the earlier law and shown in the return filed for the period ending as on appointed date?

a) No amount will be carried forward from the earlier law

b) Amount which is admissible under earlier law but may not be admissible under GST

c) Amount which is admissible under both the GST and earlier law


7) So as to avail the credit, the return has to filed within ________days from the appointed date?

a) 50 days

b) 90 days

c) 140 days

d) 180 days

8) So as to avail the credit, the taxable person should have furnished the returns under the earlier law for a period of ________months before the appointed date?

a) 3 months

b) 6 months

c) 9 months

d) 12 months

9) Which amount will be carried forward as UTGST under GST law (Assuming applicability of GST from 1st July, 2017)?

a) Input tax credit as per the CENVAT Credit Register on 30th June, 2017.

b) Input tax credit as per the books as on 30th June, 2017

c) Input tax credit as per the return furnished for the period ending 30th June, 2017


10) Input tax credit as per the VAT law will be carried forward as (in the context of Union Territory):

a) CGST

b) UTGST

c) IGST

d) CGST or SGST at the option of the supplier

11) Who among the following persons are allowed to carry forward credit under the CGST/ SGST /UTGST law?

a) COT dealers not required to take registration under GST law in view of minimum threshold turnover.

b) Regular dealers under the earlier law and opting for COT scheme under the GST law

c) Regular dealers under the earlier law and NOT opting for COT scheme under GST law


12) Is there any requirement of a pre-approval or assessment or verification by the GST officers for transitioning the credit lying in balance in the VAT/ Cenvat Return into GST return?

a) Specific approval of the jurisdictional officer is required

b) Automatic, closing credit in the respective return would be automatically carried forward into the electronic credit ledger under GST

c) Detailed assessment / audit is mandatory for allowing credit


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13) Whether credit brought forward under the old law is eligible as input tax credit under GST law?

a) Yes, without any restrictions

b) Credit irregularly taken under the earlier law will also be available

c) Eligible credit under the earlier law will be available only if it is also admissible as input tax credit under the GST law


14) Unavailed Input Tax Credit on Capital Goods will be carried forward as (in the context of Union Territory)

a) CGST

b) SGST

c) UTGST

d) CGST or SGST at the option of the supplier

15) What is the condition for taking unavailed CENVAT Credit on Capital Goods?

a) The CENVAT Credit should have been admissible under earlier law but not under GST

b) The CENVAT Credit should have been admissible under GST but not under earlier law

c) The CENVAT Credit should have been admissible under both the earlier law and GST


16) If the unavailed Input Tax Credit on Capital Goods under the earlier law which has been subsequently availed under the GST law is found to be inadmissible as per the Proceedings of the Department, then what will be the course of action for the Department?

a) Such amount will be recovered under the GST law

b) Such amount will be recovered under the earlier law

c) Such amount cannot be recovered


17) For credit to be allowable, invoices should not be issued earlier than:

a) Three months before the appointed day

b) Four months before the appointed day

c) Ten months before the appointed day

d) Twelve months before the appointed day

*18) A manufacturer of exempted and non-exempted goods or a service provider of exempted and taxable services are entitled to Cenvat credit

a) All goods whether in stock or in finished goods or in semi-finished goods is eligible

b) Only goods directly pertaining to non-exempted goods or taxable services is eligible

c) Only proportionate credit based on the previous year turnover of non-exempted goods or taxable services is eligible


*19) Which of the following is a condition for availing credit on goods in transit or incomplete services

a) Credit should be taken in 30 days from the appointed date

b) Duty or tax should have been paid before the appointed date

c) Should be in possession of valid invoice or duty paid document

d) All of the above

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*20) Which of the following is not a conditions for a tax payer paying taxes under the composition scheme under the earlier law now switching to the regular scheme under the GST law:

a) Said person is eligible for input tax credit of such inputs under the GST law

b) Said person is in possession of invoice or duty paid documents not earlier than 12 months preceding the appointed date

c) The said person is continuing to pay taxes under the composition scheme under sec 9

d) The goods are intended to be used for making taxable supplies.

*21) In case of Transitional provisions for Job worker, the time limit of six months or the extended period shall be counted from?

a) Appointed date

b) Date of removal of inputs to job worker

c) Date of receipt of inputs by job worker


22) Declaration of inputs held in stock by job worker on behalf of manufacturer is to be filed by?

a) Manufacturer

b) Job Worker

c) Both (a) and (b)

d) Any of the above

23) What happens to duties and taxes paid on goods which are returned within six months form the appointed date?

a) Revise old return and claim reduction in output liaility

b) Claim refund of taxes paid earlier on such goods

c) Claim re-credit of taxes paid under earlier law as input tax credit under GST law


*24) Which of the following is not necessary pre-requisite in respect of upward price revision during transition period?

a) Supplier should supplementary issue invoice or debit note

b) Such document should be raised within 30 days of price revision

c) Contract should have entered prior to appointed date

d) Goods should be removed or sold prior or services should be provided prior to appointed date

e) Supplier should revise earlier return and pay tax on differential

25) Which of the following is mandatory pre-condition in respect of downward price revision during transition period?

a) Recipient of credit note reduced his input tax credit

b) Supplier should revise earlier return and reduce tax liability

c) Supplier claims refund of downward revision


26) If the refund claim is fully or partially rejected the amount would _____________

a) Lapse

b) Be carried forward

c) Be refunded

d) All of the above

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27) Under what circumstances will the refund claim filed under the earlier law be rejected?

a) Refund claim is filed after appointed date

b) Credit is carried forward equivalent to refund amount

c) Refund claim is withdrawn


28) How will the refunds occurring due to any proceedings under the earlier law relating to CENVAT Credit is treated under GST?

a) Such refund will be made in cash

b) Such refund will be allowed as input tax credit

c) Either a or b at the option of the taxable person


29) The proceedings can involve:

a) Appeal

b) Review

c) Revision

d) All of the above

30) Whether the amount paid as arrears of tax under the earlier law is admissible as input tax credit?

a) Yes

b) No

c) Can’t say


31) Where a supplier has made a sale of goods and deducted tax thereon under earlier law and issued invoice for the same before the appointed day but received payment after the appointed day

a) No TDS is required to be deducted again under GST Act

b) TDS is be deducted again under GST Act



Q A Q A Q A Q A Q A

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

6) c 7) b 8) b 9) c 10) b

11) c 12) b 13) c 14) a 15) c

16) a 17) d 18) a 19) d 20) c

21) a 22) c 23) b 24) e 25) a

26) a 27) b 28) a 29) d 30) b

31) a


Q

1) The …………………. Officer is empowered to assist the proper officer.

a) Police/Customs

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b) Health

c) CBI

d) State Excise

2) The __________ officer is empowered to assist the proper officer

a) Registrar of Companies

b) Health

c) CBI

d) Railway

*3) __________ Officer is not empowered to assist the proper officer u/s 72(1) of the Act.

a) Police

b) Custom

c) State Excise

d) Railway

4) What happens if a taxable person has paid CGST & SGST or, as the case may be, CGST & UTGST (in SGST / UTGST Act) on a transaction considered by him to be an intra-state supply but which is subsequently held to be an inter-state supply?

a) Seek refund

b) Adjust against future liability

c) File a suit for recovery


5) What happens if a taxable person has paid IGST (in IGST Act) on a transaction considered by him to be an inter-state supply but which is subsequently held to be an intra-state supply?

a) Seek refund

b) Adjust against future liability

c) Take re-credit


6) Whether a taxable person who has paid IGST on a transaction considered by him to be an inter-state supply, but which is subsequently held to be an intra-state supply is required to pay interest?

a) Yes

b) No


d) At Commissioner’s discretion

7) Whether a taxable person who has paid CGST & SGST or, as the case may be, CGST & UTGST on a transaction considered by him to be an intra-state supply, but which is subsequently held to be an inter-state supply is required to pay interest?

a) Yes

b) No


d) At Commissioner’s discretion

8) The registered person has paid IGST by treating an intra-State supply as inter-State supply. The officer has levied CGST and SGST as the same is intra-State supply. What is the remedy?

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a) Pay CGST and SGST along with applicable interest

b) Pay CGST and SGST and Claim refund of IGST

c) Forgo IGST paid


Q A Q A Q A Q A Q A

1) a 2) d 3) c 4) a 5) a

6) b 7) b 8) b


Q

1) The _________ shall, by notification, constitute an Authority for Advance Ruling and Appellate Authority for Advance Ruling


b) State Government

c) Union Territory

d) Board

2) Where shall the Advance Ruling Authority and Appellate Authority for Advance Ruing be located?

a) The Authority shall be located in each state / Union Territory

b) The Authority shall be located in Centre

c) The Authority shall be located in both Centre & State


*3) The Advance Ruling Authority shall comprise of

a) One member from amongst the officers of Central tax

b) One member from amongst the officers of State tax or Union Territory tax, as the case may be, to be appointed by Central Government

c) (a) & (b)


4) The Appellant Authority for Advance Ruling shall comprise of

a) Chief Commissioner of Central tax as designated by the board

b) Commissioner of State tax or union Territory tax, as the case may be, having jurisdiction over the applicant

c) (a) & (b)

d) (a) or (b)

Q A Q A Q A Q A Q A

1) a 2) a 3) c 4) c


Q

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1) The ___________ may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.


b) State Government

c) Union Territory

d) Board

2) Whether the rules can be made with retrospective effect?

a) Yes

b) No

c) Yes. Subject to the limitation that it cannot be made beyond the date on which the chapter comes into force


3) Government has the power to enact provisions in the rules stating that contravention thereof would be liable to penalty. Maximum penalty amount has been restricted to Rs._______

a) 5,000

b) 10,000

c) 20,000

d) 1,00,000

4) Every rule made by the Central Government, every regulation made by the Board and every notification issued by the Central Government under this Act, shall be laid before:

a) Lok Sabha

b) Rajya Sabha


d) Either of the above

5) What would be the sanctity of anything done/ omitted to be done on the basis of Rules, Regulations or Notifications, which are subsequently modified/ annulled by the Parliament?

a) The modification or annulment made by the Parliament shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be [Whatever is done is done - that is freezed]

6) The _________ may, if he considers it necessary or expedient so to do for the purpose of uniformity in the implementation of this Act, issue such orders, instructions or directions to the Union territory tax officers.


b) State Government

c) Commissioner

d) Board

7) The Central Government has the power to issue General Order/ Special Order to remove the difficulty arising while giving effect to the provisions of this Act, within a period of _____ years from the date of commencement of the CGST Act.

a) Two

b) Three

c) Four

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d) Five

8) Should the General/ Special Order so passed by the Central Government for the removal of difficulty arising while giving effect to the provisions of this Act be laid before the Parliament?

a) No

b) Yes, Lok Sabha

c) Yes, Rajya Sabha

d) Yes, Both house

Q A Q A Q A Q A Q A

1) a 2) c 3) b 4) c 5) __

6) c 7) b 8) d

25. The Goods & Services Tax (Compensation to States) Act, 2017

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Q

1) The GST (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax for the period of _____years

a) Four

b) Five

c) Six

d) Ten

2) The compensation shall be met out from _________

a) Compensation Cess

b) CGST Collection

c) SGST collection


3) The financial year______ shall be taken as base year for the purpose of calculating compensation amount payable to the States.

a) 2014-15

b) 2015-16

c) 2013-14

d) 2012-13

4) Compensation to the States shall be based on the figures as audited by_______

a) Chartered Accountant

b) Cost Accountant

c) Company Secretary

d) Comptroller & Auditor General of India

5) The projected growth rate of revenue during transition period shall be _______

a) 12%

b) 13%

c) 14%

d) 15%

6) The compensation shall be released _______ on provisional basis and final adjustment shall be made after getting audited accounts of the year from the Comptroller and Auditor General of India.

a) Quarterly

b) Bi-monthly

c) Half Yearly

d) Annually

7) The proceeds of the cess shall be credited to the non lapsable fund called ________

a) Consumer Welfare Fund

b) GST Compensation Fund

c) Investor Protection Fund


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8) The balance if any left out in the GST compensation fund after five year shall be _______shared between the Centre and the States.

a) 1:1

b) 3:2

c) 5:6


*9) Referring to the above question, from half of the portion allocated to the States. States and UTs gets:

a) Equally

b) In the ratio of total revenues from the State tax or the Union territory tax in the last year of the transition period

c) 5:6


10) For the purpose of computing actual revenue which forms the basis of release of compensation, who certifies the amount of IGST apportioned to the respective State?

a) Comptroller & Auditor General of India

b) Principal Chief Controller of Accounts of CBEC

c) Chartered Accountant

d) Cost Accountants

11) No cess shall be leviable on supplies made by a taxable person who has decided to opt for __________ of the Central Goods and Services Tax Act.

a) Regular Scheme

b) Composition Scheme



12) Input tax credit in respect of cess on supply of goods and services leviable under section 8, shall be utilised only towards payment of ________ on supply of goods and services?

a) CGST

b) SGST

c) IGST

d) Compensation Cess

13) GST Compensation Cess will be levied on _________ of goods or services otr both, including import of goods-

a) All inter-state supplies

b) All intra-state supplies

c) Both (a) and (b)


14) GST (Compensation to States) Act, 2017 is applicable to:

a) Whole of India excluding Jammu & Kashmir

b) Whole of India excluding Jammu & Kashmir and Union Territories with legislation

c) Whole of India excluding Jammu & Kashmir and Union Territories without legislation

d) Whole of India

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15) Maximum rate at which GST Compensation Cess may be collected on Pan Masala-

a) 200%

b) 100%

c) 135%

d) 115%

16) Maximum rate at which GST Compensation Cess may be collected on Aerated Water-

a) 20%

b) 15%

c) 25%

d) 28%

17) Purpose of levy of GST Compensation Cess is to -

a) Higher revenue by the Government

b) Provide compensation to the States for loss of revenue arising due to implementation of GST

c) Meeting international taxation needs

d) All of the above

18) Maximum rate at which GST Compensation Cess on Motor cars and other motor vehicles principally designed for the transport of persons (other than motor vehicles for the transport of ten or more persons, including the driver), including station wagons and racing cars may be collected at the rate of-

a) 20%

b) 15%

c) 25%

d) 28%

19) Maximum rate at which GST Compensation Cess on Tobacco and manufactured tobacco substitutes, including tobacco products may be collected on-

a) Rs.4,125 per thousand sticks or 125% or a combination thereof but not exceeding Rs.4,125 per thousand sticks plus 125%

b) Rs.4,170 per thousand sticks or 290% or a combination thereof but not exceeding Rs.4,170 per thousand sticks plus 290%

c) Rs.4,170 per thousand sticks or 150% or a combination thereof but not exceeding Rs.4,170 per thousand sticks plus 150%

d) Rs.4,125 per thousand sticks or 290% or a combination thereof but not exceeding Rs.4,125 per thousand sticks plus 290%

20) GST Compensation Cess chargeable on supply of goods or services or both shall be leviable on value to be determined

a) As per Section 15 of the CGST Act, 2017

b) As per Industry rates

c) On the basis of prevailing market rates


21) Maximum rate at which GST Compensation Cess on Coal, briquettes, ovoids and similar solid fuels manufactured from coal, lignite, whether or not agglomerated, excluding jet, peat (including peat litter), whether or not agglomerated may be collected on-

a) Rs.100 per tonne

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b) Rs.200 per tonne

c) Rs.300 per tonne

d) Rs.400 per tonne

22) Base year revenue as per Section 5 of GST (Compensation to States) Act, 2017 means the-

a) Sum of revenue collected and levied by the state and net of refunds with respect to those taxes.

b) Sum of revenue collected and levied by the State and the local bodies during the year, and net of refunds with respect to those taxes imposed by the State.

c) Sum of revenue collected by the state and the local bodies during the base year, on account of taxes levied by the respective State/UT and net of refunds with respect to those taxes that are subsumed into GST


23) Taxes not to be included in the calculation of the Base Year Revenue are___________

a) Entertainment tax levied by the State but collected by local bodies under any Act

b) Any Cess imposed by State Government on the sale or purchase of petroleum crude, HSD, motor spirit, natural gas, ATF and alcoholic liquor for human consumption

c) Any tax levied under Central Sales Tax Act, 1956, on the sale or purchase of petroleum crude, HSD, motor spirit, natural gas, ATF and alcoholic liquor for human consumption

d) All of the above

24) Base year revenue of North Eastern states includes the amount of __________

a) Tax collected on sale of services by the State Government during the base year

b) Revenue foregone on account of exemption or remission given by the State Government to promote industrial investment in the state

c) Excise Duty collected on manufacture in the North Eastern States

d) All of the above

25) Excess amount as compensation released to a State in any finanacial year during the transition period as per audited figures of revenue collected, shall be adjusted in_____________

a) Current financial year

b) Subsequent financial year

c) Any financial year


26) If no compensation due in the next year and in case any excess amount of compensation has been released to a state in the previous financial year, such amount____________

a) Can be utilised by the State Government for incurring specified expenditures

b) Can be utilised by any purpose by the State Government

c) Shall be refunded by the State Government to the Centre Government


27) Total compensation means_________

a) Difference between Projected Revenue and Actual Revenue for any financial year

b) Amount as determined by C&AG for any financial year

c) Amount as determined by the officials of State Government


28) Projected revenue that could have earned by the State in the absence of GST till the end of relevant 2 months period of respective financial year shall be calculated on a __________ basis.

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a) Actual

b) Accrual

c) Pro-rata


*29) The cess on goods imported into India shall be levied and collected on a value __________

a) Determined as per Section 15 of CGST Act, 2017

b) Determined by the Proper Officer

c) Taken on specified basis

d) Determined under Custom Tariff Act, 1975

30) In this Act, Input tax in relation to a taxable person means_______

a) Cess charged on any supply of goods or services or both made to him

b) Cess charged on import of goods including the cess payable on reverse charge basis

c) Only (a)

d) Both (a) and (b)

31) Accounts relating to the GST Compensation fund shall be audited by __________and expenditure in connection with audit shall be payable by_________

a) Officer appointed by the Central Government, Central Government

b) C&AG or any person appointed by him, Central Government

c) C&AG , Central Government


32 Provisions of _______and __________Act shall be applicable for Intra-state supplies and inter-state supplies in relation to the levy and collection of cess leviable under section 8 of GST (Compensation to States) Act, 2017

a) CGST and IGST

b) CGST and UTGST

c) CGST and SGST

d) SGST and IGST

33) As per Section 12, _________shall on the recommendations of the council, by notification in the Official Gazette, make rules for carrying out the provisions of then Act


b) State Government

c) Proper Officer

d) All of the above

Q A Q A Q A Q A Q A

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

6) b 7) b 8) a 9) b 10) b

11) b 12) d 13) c 14) d 15) c

16) b 17) b 18) b 19) b 20) a

21) d 22) c 23) d 24) b 25) b

26) c 27) a 28) c 29) d 30) d

31) b 32) a 33) a

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EXECUTIVE PROGRAMME

PRACTICE QUESTIONS ON GST

1) Compensation to states under GST(Compensation to States ) Act , 2017 is paid by

a) Central Government from consolidated fund of India b) Central Government from GST compensation fund of India c) Central Government directly from the collection of compensation cess d) GST Council under Constitution of India.

2) While computing compensation to states, tax revenue of this tax/

these taxes is excluded a) petroleum crude, diesel, petrol, ATF and natural gas b) Alcohol for human consumption c) entertainment tax collected by local authorities d) All of the above

3) Input tax credit on compensation cess paid under GST(Compensation

to States ) Act , 2017 a) is not available b) is available c) is available but not fully d) is available after one year

4) Input tax credit under GST(Compensation to States ) Act , 2017

includes GST Compensation Cess charged on any supply of a) goods and/or services, b) Goods imported c) GST Compensation Cess payable on reverse charge basis; d) All of the above

5) Maximum rate of CGST prescribed by law for intrastate supply made

is---- a) 18% b) 20% c) 40% d) 28%+cess

6) Input tax credit on Compensation cess paid under GST (Compensation to States) Act, 2017 is available for payment of

a) IGST only b) IGST and CGST only c) compensation under GST (Compensation to States) Act d) None of the above

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7) IGST is payable when the supply is --- a) Interstate b) Intra-state c) Intra- UT d) All of the above

8) Zero rated supply includes supplies made-

a) By SEZ unit in India b) to SEZ unit in India c) Both (a & (b above d) None of the above

9) With the introduction of GST, imports will be—

a) more expensive b) cheaper c) neutral with no change d) None of the above

10) The first committee to design GST model was headed by

a) Vijay Kelkar b) Asim Das Gupta c) Dr. Chidambaram d) None of the above

11) First discussion paper (FDP) which formed the basis for GST in

2009 was released by a) Union Finance Ministry b) Dr. Manmohan Singh c) GST Council d) Empowered Committee

12) Roll out of GST requires constitutional amendment because—

a) existing laws were cascading b) the powers of levy were exclusive c) there are separate laws for goods and services d) All of the above

13) Works contract under GST is goods used in work relating to-

a) Immovable property b) Both movable and immovable property c) Immovable property treated as supply of service d) Immovable property treated as supply of goods

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14) IGST deals with

a) Composition scheme b) Time of supply c) Service tax on imported services d) All of the above

15) The turnover limit of Rs. 50 Lakh for composition scheme is not

applicable to the state of a) Himachal Pradesh b) Assam c) Uttarakhand d) None of the above

16) A supplier is liable to get registered under GST if his aggregate

turnover in a financial year crosses Rs. 20 lakh in a state or UT other than special category states if he is-

a) an interstate supplier b) an intra-state supplier c) Electronic commerce operator d) Person liable to pay GST under reverse charge

17) Registration under GST is not compulsory to-

a) Casual taxable person b) Input service distributor c) Non-resident taxable person d) None of the above

18) One of the following states does not fall under special category given under Art. 279A of the Constitution

a) Himachal Pradesh b) Uttarakhand c) Chhattisgarh d) Jammu & Kashmir

19) Exemption from registration is available to

a) Central & State Govt. Departments b) Agriculturists c) a) & b) above d) None of the above

20) Address for delivery

a) Recipient address mentioned in the tax invoice b) Recipient address mentioned in the delivery challan c) Recipient address not necessary

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d) Recipient address mentioned in the Gate pass

21) When President assent was obtained for central GST a) 18th April 2017 b) 22nd April 2017 c) 5th April 2017 d) 12th April 2017

22) What is applicability of GST

a) Applicable all over India except Sikkim b) Applicable all over India except Jammu and Kashmir c) Applicable all over India d) Applicable all over India except Nagaland

23) Money means

a) Indian legal tender b) Foreign currency c) Cheque/promissory note d) All the above

24) non-taxable territory means

a) Outside taxable territory b) Inside taxable territory c) Inter-state taxable territory d) None of the above

25) Person includes

a) Individual b) HUF c) LLP d) All the above

26) Goods and Service Tax council referred in which section

a) 279A of the constitution b) 276 of the constitution c) 277 of the constitution d) 279 of the constitution

27) Weight age of vote for centre at GST council

a) 1/4th of total votes cast b) 1/3rd of total votes cast c) ½ of total votes cast d) Only B

28) Weightage of States ( combined together) at GST council

a) 2/3rd of total votes cast

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b) 1/3rd of total votes cast c) 1/4th of total votes cast d) None of the above

29) Who is chairperson of GST council

a) Finance secretary b) State Finance Minister c) Union Finance Minister d) None of the above

30) Taxable turnover of below Rs.1.5 crore assessee under control of

a) Centre b) State c) Both a and b d) Only c

31) Powers to declare certain activities/transactions as neither supply of

goods nor of services a) Schedule I b) Schedule III c) Schedule II d) Schedule IV

32) When GST council constituted

a) 15.09.2016 b) 13.09.2016 c) 12.09.2016 d) 20.09.2016

33) Address for delivery

a) Recipient address mentioned in the invoice b) Recipient address mentioned in the delivery challan c) Recipient address not necessary d) Recipient address mentioned in the Gate pass

34) Agriculturist

a) Individual or HUF b) Individual and HUF c) Partnership d) All the above

35) Associated enterprise mentioned

a) Income tax act 1961 b) Companies Act 2013 c) Central GST Act 2017 d) State GST Act 2017

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36) Appointed day a) Date on which the provisions of this Act shall come into force b) Date on which President assent c) Date of which both houses passed the act d) Date on which sent to Finance Ministry

37) Deemed exports mentioned in which section a) Section 137 b) Section 147 c) Section 142 d) Section 145

38) Quarter means

a) March b) September c) December d) All the above

39) Taxable levy in case of manufacture under composite scheme

a) Two percent b) Three per cent c) One per cent d) Half per cent

40) Whether person opted for composite scheme collect tax under GST

a) No b) Yes c) Only A d) None of the above

41) Participation of ITC value chain in composite scheme

a) With participation b) Without participation c) Either a or b d) None of the above

42) Taxes paid on

a) Transaction value b) Manufacturing cost c) Both A and B d) None of the above

43) ITC available

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a) In the course or Furtherance of business b) Other than business exp c) Only A d) None of the above

44) Input tax credit availability a) On receipt of goods b) On payment of taxes paid by supplier to Govt. c) Taken to manufacturing site or availed services d) None of the above

45) Input tax on capital goods

a) In one installment b) Partly five equal installments c) Only A d) Equally 10% every year

46) Appellate Tribunal mentioned in which section

a) Section 109 b) Section 105 c) Section 103 d) Section 119

47) Authorised representative referred in which section


48) Common portal referred in which section


49) Debit note and credit note mentioned in which section

a) Section 36 b) Section 39 c) Section 34 d) None of the above

50) Electronic cash ledger and Electronic credit ledger mentioned in

which section a) Section 39 b) Section 42 c) Section 49 d) Section 47

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51) “invoice” or “tax invoice mentioned in which section a) Section 27 b) Section 29 c) Section 31 d) Section 47

52) Valid return mentioned in which section


53) GST Registration

a) Aadhar based b) Passport based c) Pan based d) None of the above

54) A person is having multiple business requires registration

a) Single b) Each business separately c) Either A or B d) None of the above

55) Deemed Registration

a) After four working days b) After five working days c) After three common working days d) After seven working days

56) Annual Return to be filed every year

a) 30th June b) 30th September c) 31st December d) 31st October

57) IGST tax levy means

a) Within state b) Between two states c) Only A d) None of the above

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58) IGST levy can be levied

a) Centre b) State c) Union Territory d) Both a and b

Answers:

1 (b), 2 (d), 3 (b), 4 (d), 5 (b), 6 (c), 7 (a), 8 (b), 9 (a), 10 (b), 11 (d), 12 (d), 13 (c), 14 (c), 15 (c), 16 (b), 17 (d), 18 (c), 19 (b), 20 (a), 21 (d), 22 (c), 23 (d), 24 (a), 25 (d), 26 (a), 27 (b), 28 (a), 29 (c), 30 (c), 31 (b), 32 (c), 33 (a), 34 (a), 35 (a), 36 (a), 37 (b), 38 (d), 39 (c), 40 (c), 41 (b), 42 (a), 43 (a), 44 (b), 45 (c), 46 (a), 47 (b), 48 (b), 49 (c), 50 (c), 51 (c), 52 (b), 53 (c), 54 (b), 55 (c), 56 (c), 57 (b), 58 (a)

Additions to be read for ICSI Material:

S N Particulars Description

1 Address of delivery

“Address of delivery” means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both;

2 Money “Money” means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; Notes:

Promissory note: A signed document containing a written promise to pay a stated sum to a

specified person or the bearer at a specified date or on demand.

Traveller Cheque: When individuals travel, particularly abroad, they often need cash to cover certain expenses. A traveler's check is a certified bank draft that travelers may use the same way they use regular paper currency. Banks typically charge a small fee and require that individuals order travelers' checks prior to when they will need them.

Numismatics: Numismatics is the art/science of preserving antique currency/coins. Lots of people have a hobby of collecting rare coins and currency notes, they're antique and the value they are sold at is quite a lot depending on how old the coin/currency is. That is what is currency held for numismatic value.

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3 Taxable territory

“Taxable territory” means the territory to which the provisions of this Act apply;

4 Non-taxable territory

“Non-taxable territory” means the territory which is outside the taxable territory;

5 Person “Person” includes— (a) an individual; (b) a Hindu Undivided Family; (c) a company; (d) a firm; (e) a Limited Liability Partnership; (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (g) any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013; (Life Insurance Corporation, Delhi Transport Corporation, etc) (h) any body corporate incorporated by or under the laws of a country outside India (Foreign Company); (i) a co-operative society registered under any law relating to co-operative societies; (j) a local authority; (k) Central Government or a State Government; (l) society as defined under the Societies Registration Act, 1860; (m) trust; and (n) every artificial juridical person, not falling within any of the above;

6 Agriculturist “Agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land— (a) by own labour, or (b) by the labour of family, or (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;

7

Deemed exports [Section 147]

“Deemed exports” means such supplies of goods as may be notified under section 147; Sec 147 :Deemed Exports: The Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.

8 Appearance by authorised representative [Sec 166]

Any person who is entitled or required to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act, may, otherwise than when required under this Act to appear personally for examination on oath or affirmation, subject to the other provisions of this section, appear by an authorised representative.

9 Common Portal [Section 146]

“Common portal” means the common goods and services tax electronic portal referred to in section 146; Sec 146: Common Portal: The Government may, on the recommendations of the Council, notify the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax, electronic way bill and for carrying

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out such other functions and for such purposes as may be prescribed.

10 Valid return “Valid return” means a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full; Section 39 (1): Furnishing of returns Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof.

11 Deemed Registration

Rule 9: Verification of the application and approval (1) The application shall be forwarded to the proper officer who shall examine the

application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of three working days from the date of submission of the application.

(2) If the proper officer fails to take any action, within a period of three working days from the date of submission of the application; the application for grant of registration shall be deemed to have been approved.

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