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CA Intermediate
Goods and Service Tax
Mock Test Paper-7
Time Allowed: 1 Hour Maximum Marks: 40
Q. Questions Marks
No.
Part-A- MCQ
1 M/s. Vittal & Co., a registered supplier under GST, is dealing in the supply of taxable
goods in the State of Karnataka.

The firm opted for Composition Scheme in April month of the last financial year. Its
turnover crossed ₹ 1.50 Crores on 9th May of the current financial year and had
opted for withdrawal of the composition scheme on the said date.

Vittal & Co. removed goods on 10th June for delivery to Suri & Co. on a ‘Sale or
Return Basis’. Suri & Co. accepted the goods vide its confirmation mail dated 15th
December.
The firm has paid GST for various items during August. It comprised the following-

(a) GST paid on input services intended to be used for personal purposes –
₹ 12,000
(b) GST paid on the purchase of Motor Vehicle for business use (being a two-wheeler
having an engine capacity of 25CC) – ₹ 9,000
(c) GST paid on the purchase of computer – ₹ 19,000 (GST portion was included as
part of the cost to claim depreciation under the Income-tax Act, 1961)

During May, Vittal and Co. reversed ITC of ₹ 10,000 for not making payment to
Vendors within the time prescribed under CGST Act, 2017. This pending payment
was cleared in August.

Out of purchases made and ITC availed during earlier months, the following
information is made available as of September:
Supplier Name Payment is due for Related ITC
(Number of days) Component
XYZ 165 ₹ 13,000
ABC 199 ₹ 15,000
PQR 99 ₹ 20,000
Vittal & Co received accounting services from Raghu & Co., an associated enterprise,
located in Sri Lanka. Raghu & Co. issued an invoice for the service on 1st September,
which was entered by Vittal & Co. in its book on 10th October. But the payment was
made on 30th September.

All the supply referred to above is intra-State unless specified otherwise. Conditions
applicable for availing of ITC are fulfilled subject to the information given above.

Based on the information provided above, choose the most appropriate answer for
the following questions:
i) Vittal & Co. needs to furnish a statement containing details of stock of inputs/ 1
inputs held in semi-finished / finished goods on the withdrawal of composition
scheme by ______
a) 9th May
b) 23rd May
c) 8th June
d) 7th July

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ii) In respect of the goods sent on a sale or return basis, Vittal & Co. shall issue the 1
invoice by ________
a) 10th June
b) 10th September
c) 10th December
d) 15th December
iii) Determine the amount of eligible input tax credit that can be availed by Vittal & 1
Co for August.
a) Nil
b) ₹ 19,000
c) ₹ 22,000
d) ₹ 50,000
iv) Compute the amount of ITC to be reversed for September. Ignore interest 1
liability, if any.
a) Nil
b) ₹ 28,000
c) ₹ 15,000
d) ₹ 13,000
v) Time of supply in respect of service imported by Vittal & Co from its Associated 1
Enterprise is ___________
a) 1 st September
b) 30th September
c) 1 st October
d) 10th October
2 For banking companies using inputs and input services partly for taxable supplies 1
and partly for exempt supplies, which of the statement is true?
a) ITC shall be compulsorily restricted to credit attributable to taxable supplies
including zero-rated supplies
b) 50% of eligible ITC on inputs, capital goods, and input service shall be
mandatorily taken in a month, and the rest shall lapse.
c) Banking company can choose to exercise either option (a) or option (b)
d) None of the above
3 M/s. Unique (P) Ltd. is registered under GST in the State of Odisha. It is engaged in 1
the business of manufacturing iron and steel products. It has received IT engineering
services from M/s. TCS Infotech(P) Ltd. for ₹ 11,00,000 (excluding GST @ 18%) on
28-Oct-20XX. The invoice for the service rendered was issued on 5-Nov-XX. M/s
Unique (P) Ltd. made a part-payment of ₹ 4,20,000 on 30-Nov-XX. Being unhappy
with the service provided by M/s TCS Infotech(P) Ltd., it did not make the balance
payment. Deficiency in service rendered was made good by M/s TCS Infotech(P) Ltd.
by 15-Feb-XY. M/s. Unique (P) Ltd. made a payment of ₹ 3,00,000 on 15- Feb-XY and
the balance payment was made on 6-June-20XY, i.e. after 180 days of the issue of the
invoice. Input tax credit available in respect of IT engineering services received from
M/s. TCS Infotech(P) Ltd. in financial year 20XX-XY:
a) ₹ 1,98,000
b) Nil
c) ₹ 64,068
d) ₹ 1,09,831
4 As per Article 279A, ______________ of the total number of members of the GST Council 1
shall constitute the quorum at its meetings.
a) One third
b) One half
c) One fourth
d) One tenth
5 Where the goods being sent or taken on approval for sale or return are removed 1
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.

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c) Earlier of (a) or (b).

d) Later of (a) or (b).d
6 Mr A, who has opted for a composition levy, supplies goods worth ₹24,300 to Mr B 1
and issues an invoice dated 25-09-2023 for ₹24,300 and Mr B pays ₹25,000 on 01-
10-2023 against such supply of goods. The excess ₹700 (being less than ₹1,000) is
adjusted in the next invoice for the supply of goods issued on 05-10-2023. Identify
the time of supply and value of supply:
a) ₹25,000- 01-10-2023
b) For ₹24,300- 25-09-2023 and ₹700- 01-10-2023
c) For ₹24,300- 25-09-2023 and ₹700- 05-10-2023
d) (b) or (c) at the option of the supplier, who has opted for a composition levy.
7 Consequent to section 118 of the Finance Act, 2020, section 2(114) of the CGST Act, 1
2017 has been amended. Which of the following Union Territories has been merged
into a single Union Territory?
i) Andaman and Nicobar Islands
ii) Lakshadweep
iii) Dadra and Nagar Haveli
iv) Daman and Diu
v) Chandigarh
vi) Ladakh
a) (i) and (ii)
b) (iii) and (iv)
c) (v) and (vi)
d) (i) and (iii)
8 The provisions relating to GST Council came into force on 12th September 2016. The 1
President constituted the GST Council on ___________.
a) 12th September 2016
b) 15th September 2016
c) 1st July 2017
d) 30th June 2017
Part-B- Descriptive Questions
Question 1 is compulsory attempt any 2 from the remaining 3
1 George Pvt. Ltd., a registered supplier of goods in Kerala who pays GST under the 8
regular scheme, has made the following transactions (exclusive of tax) during a tax
period:
Purchases (₹) Sales (₹) Tax Rate
5,00,000 [Purchases 10,00,000 [Sale made to IGST - 18%
made from the the registered person in CGST – 9%
registered person in New Delhi] SGST- 9%
New Delhi]
2,50,000 [Purchases 8,00,000 [Sales made to IGST - 18%
made from the the registered person in CGST – 9%
registered person in Trivandrum] SGST- 9%
Trivandrum, Kerala]
The company has complied with all the conditions for availing of the ITC. The
following further information regarding various opening balances available with it
for the tax period is provided by the company:
Source Taxes (₹) Interest (₹) Penalty (₹)
CGST 50,000 1500 500
SGST 30,000 1500 500
IGST 1,00,000 2000 500
Compute the net CGST, SGST and IGST payable from the Electronic Cash Ledger by
George Pvt. Ltd. for the tax period as also ITC to be carried forward to the next tax
period, if any.

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2 a) Varun & Arun Associates started a partnership firm of architects in Bhopal 5

(Madhya Pradesh) on 1st April. The firm provides architecture services in
Madhya Pradesh only. It provided the following details of its turnover during the
current financial year:

April - June ₹ 20 lakhs

July - Sept ₹ 30 lakhs
Oct-Dec ₹ 20 lakhs
The firm has obtained the registration under section 22 with effect from 1st July and
opts to pay tax under the composition scheme. Determine the tax liability of Varun
& Arun Associates for the quarters of April – June, Jul-Sept and Oct-Dec.

Note: The rates of tax on architectural services are CGST- 9% and SGST-9%
b) Mr Nagarjun, a registered supplier of Chennai, has received the following 5
amounts in respect of the activities undertaken by him during September:
S. No. Particulars Amount
(₹)
(i) Amount charged for service provided to recognized 50,000
sports body as a selector of the national team.
(ii) The commission received as an insurance agent from an 65,000
insurance company
(iii) Amount charged as a business correspondent for the 15,000
services provided to the urban branch of a nationalized
bank concerning savings bank accounts.
(iv) Service to foreign diplomatic missions located in India. 28,000
(v) Funeral services. 30,000
He received services from an unregistered goods transport agency for his business
activities and paid freight of ₹ 45,000 (his aggregate turnover of the previous year
was ₹ 9,90,000).

Note: All the transactions stated above are intra-State transactions and also are
exclusive of GST.

You are required to calculate the gross GST liability (ignoring ITC provisions) of Mr
Nagarjun for September assuming that the rate of GST, wherever applicable, is 18%
except for the GTA services where the rate of GST is 5%. Working notes should form
part of your answer.
3 a) List any five exceptions when the theory of unjust enrichment is not applicable 5
under the provisions of the CGST Act, 2017.

b) “Aadhaar authentication is not required for persons who are already registered 5
under GST.” Examine and discuss the correctness of the statement. You are
required to elaborate on the relevant legal provisions.
4 a) Mr Shambhu, a trader registered under GST in Delhi is engaged in the wholesale 5
business of toys for kids. Mr Nandi registered under GST in Patiala, a regular
return filer supplies toys in bulk to Mr Shambhu for selling to end consumers.

Mr Shambhu paying tax in the regular scheme in Delhi has not filed GSTR-3B for the
last 2 months. Mr Nandi wants to generate an e-way bill for toys amounting to ₹
5,00,000 to be supplied to Mr Shambhu. Also, Mr Narayan from Jammu approached
Mr Shambhu for purchasing toys amounting to ₹ 75,000 as a return gift for his son’s
first birthday party. Shambhu wants to generate an e-way bill in respect of an
outward supply of goods to Mr Narayan.

Examine the provisions under GST law, and whether Mr Nandi and Mr Shambhu can
generate an e-way bill.

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b) Plasto Ltd., a registered supplier, is engaged in the manufacture of Tanks. The 5

company provides the following information about GST paid on the purchases
made/input services availed by it during January 2023:
Particulars GST Paid (₹)
Purchase of Machinery where the debit note is issued 1,15,000
Input purchased was directly delivered to MrJoe, a job 80,000
worker and a registered supplier
Computers purchased (Depreciation was claimed on the 50,000
said GST portion under the Income-Tax Act, 1961)
Works Contract services availed for the construction of Staff 4,25,000
quarters within the company premises

Determine the amount of ITC available to M/s. Plasto Ltd. For January 2023 by giving
brief explanations for the treatment of various items. Subject to the information
given above, all the conditions necessary for availing of the ITC have been fulfilled.

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