Chapter 3.

Charges of GST
Advance Level of MCQ’s
1. Dhanvantri Foods is engaged in supplying restaurant service in Goa. In the preceding financial year, it has an
aggregate turnover of Rs. 110 lakh from restaurant service and ₹ 30 lakh from supply of farm labour and has
earned on loan & advances interest of Rs. 30 lakhs. Which of the following statements are true in the given case?
(1) Aggregate turnover of Dhanvantri Foods, for determining eligibility for composition scheme, in the
preceding FY is Rs. 140 lakhs.
(2) Supply of farm labour and supply of service of extending loans/deposits does not make Dhanvantri Foods
ineligible for composition scheme.
(3) Aggregate turnover of Dhanvantri Foods, for determining eligibility for composition scheme, in the
preceding FY is Rs. 110 lakhs.
(4) Supply of services other than restaurant service - supply of farm labour and supply of service of extending
loans/deposits - by Dhanvantri Foods makes it ineligible for composition scheme.
(5) Aggregate turnover of Dhanvantri Foods, for determining eligibility for composition scheme, in the
preceding FY is Rs. 170 lakhs.
(a) (1) and (5) (b) (2) and (3)
(c) (1) and (4) (d) (3) and (5)
(e) None of the above
Solution: (b)
Hint: Dealer supplies restaurant services and also supplies any exempt services by way of extending
deposits/ advances shall be eligible for the composition scheme under Sec 10 of CGST Act,2017
2. Which of the following persons cannot opt for the composition scheme u/s 10 of CGST Act, 2017
1) A person engaged exclusively in supply of printing papers, whose aggregate turnover in the preceding
financial year was Rs. 60 lakhs.
2) Registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 75 lakh.
3) Registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 1.5 crores.
4) A person engaged in manufacture of Pan Masala, Tobacco and manufactured tobacco substitutes
5) A person engaged in the manufacture of Ice Cream, other edible ice, whether or not containing Cocoa.
6) A person engaged exclusively in the providing restaurant service, whose aggregate turnover in the
preceding financial year was Rs. 65 lakh.
(a) 1,2,3,5 (b) 2,3,6,1
(c) 4,5 (d) All of the above.
Solution: (c)

Hint: Manufacturer of Notified goods-Pan Masala, Tobacco & its substitutes and ice-cream and other
edible ice, whether or not containing Cocoa shall not eligible to opt composition scheme. [Sec 10(2)(e)]

3. Find out the correct statement/statements for a tax payer who has opted for composition scheme?
(a) A taxable person who is covered under section 10 shall collect any tax from the recipient on supplies made
by him and shall be entitled to credit of input tax.
(b) A registered person supplying goods under the composition scheme shall issue a bill of supply.
(c) A taxable person who is covered under section 10 shall neither collect any tax from the recipient on
supplies made by him nor shall be entitled to any credit of input tax.
(d) A composition dealer shall mention the words “Composition taxable person, not eligible to collect tax on
supplies” at the top of the bill of supply issued by him.
 (a) (a), (b) and (c) (b) (b) and (c)
(c) (b),(c) and (d) (d) (c) and (d)
Solution: (c)

Hint: Taxable person u/s 10 shall not collect any tax from the recipient on supplies made [Sec 10-CGST Act]

4. Which of the following legal services fall under RCM provisions as contained under section 9(3) of the CGST Act-
(i) Representation services provided by an individual advocate to business entity
(ii) Services provided by a senior advocate to another advocate
(iii) Representation services provided by a firm of advocates to business entity
(iv) Legal services provided by an advocate to an unregistered individuals (not a business entity)
(a) (i) and (ii) (b) only (iv)
(c) (i), (ii) and (iii) (d) All of the above.
Solution: (c)

Hint: 1. Service provided by an individual advocate including a senior advocate or a firm of advocate by
way of legal services, to a business entity located in taxable territory will be taxable under RCM [Sec 9(3)]
2. Legal services provided by an advocate to an URD (not a business entity) is exempt as per Entry No. 45

5. Which of the following services does not fall under reverse charge mechanism provisions as contained under
section 9(3) of the CGST Act, 2017-
(a) Legal services provided by an advocate to an unregistered individual (not business entity)
(b) Representation services provided by a firm of advocates to business entity
(c) Services provided by a GTA to registered person (CGST Rate is 2.5%)
(d) Services provided by an individual direct selling agent to banking company
Solution: (a)
Hint: Legal services provided by an advocate to an URD (not a business entity) is exempt as per Entry No. 45
6. ____________ Supply shall attract IGST?
(a) Supply between Punjab & Maharashtra (Mumbai)
(b) Supply between Chandigarh & Punjab
(c) Supply between Hisar (Haryana) & Ambala (Haryana)
(d) Supply between USA & India (Goa)
(a) (a) & (b) (b) (a) & (c)
(c) (a), (b) & (d) (d) None of the above
Solution: (c)

Hint: Supply between two different states i.e. (a) or state and union territory i.e.(b) or between India and
other country i.e. (d) shall be consider as inter-state supply and IGST shall be charged.

7. Is there any ceiling limit prescribed on the rate under IGST?

(a) No, Any rate can be charged by department. (b) 40%

(c) 28% (d) 18%
Solution: (b)

Hint: Ceiling Limit decided by CBIC is for IGST 40% , for CGST 20% and for SGST / UTGST 20%
8. What if an e-commerce operator [ECO] having no physical presence in India (Taxable Territory), does not have a
representative in the India taxable territory?
(a) He will exempt from Tax
(b) He has to appoint a person in India (taxable territory) for the purpose of paying tax on his behalf
(c) He will have to discharge his tax liability in foreign currency
(d) None of the above
Solution: (b)
Hint: where an ECO does not have a physical presence in the taxable territory, any person representing
such ECO for any purpose in the taxable territory shall be liable to pay tax. [Sec 9(5) of CGST Act,2017]

MCQ’s for Conceptual Clarity

9. ………….of the Constitution provides that no tax shall be levied or collected except by authority of law?

(a) Article 248 (b) Article 245

(c) Article 265 (d) Article 266
Solution: (c)

Hint: Article 265 of the Constitution of India provides such power to the authority of law.
10. What are the taxes levied on an intra-State supply?

(a) CGST and SGST/UTGST (b) UTGST

(c) SGST (d) IGST
Solution: (a)

Hint: Supply of goods within same State/UT shall be treated as intra-State supply. [Sec 8 IGST Act,2017]

11. Who will notify the rate of tax to be levied under CGST Act?

(a) GST Council suo moto

(b) NCLT or Suppliers from its own
(c) Central Government as per the recommendations of the GST Council
(d) Central Government suo moto
Solution: (c)

Hint: On the recommendation of the GST council, the CG will notify the Tax rate to be levied under
CGSTAct
12. Taxes will be levied on importation of Goods?

(a) CGST and SGST (b) SGST

(c) CGST (d) IGST
Solution: (d)

Hint: Supply of goods imported in Indian territory, shall be treated as inter-State supply. [Sec 7-IGST Act]

The maximum rate ceiling limit prescribed for CGST.

13. (a) 40% (b) 14%
(c) 28% (d) 20%
Solution: (d)

Hint: Ceiling Limit decided by CBIC is for IGST 40%, for CGST 20% and for SGST / UTGST 20%

14. Reverse charge mechanism would apply on the following supply:-

i) Inward supply of goods or services or both for specified persons under section 9(4)
ii) Notified categories of goods or services or both under section 9(3)
iii) Services Supplied by Government to Business entity
iv) Services of Speed Post, Express Parcel , Life Insurance , Agency Services provided by Post Office to
Business Entity
(a) Only (iii) (b) (i) & (ii)
(c) All of the above (d) None of the above
Solution: (c)

Hint: Refer Section 9(3)/9(4) of CGST Act, 2017

15. Which of the following services are covered under Reverse Charge Mechanism of CGST Act, 2017?
i. Legal Consultancy Services provided by an Advocate to Rel Ltd. (Mumbai), Previous year turnover of Rel
Ltd. Was Rs. 50 Lakhs
ii. Goods Transport Agency Services provided to Governmental Agencies which is registered under GST only
for deducting TDS as per Section 51 of CGST Act, 2017
iii. Security Services provided by the X Ltd. (Mumbai) to B Ltd. (Pune)
iv. Pre-Primary School related Services
(a) i (b) i, ii & iii
(c) i & iv (d) All the above
Solution: (a)

Hint: Legal services are taxable under RCM [Sec 9(3) of CGST Act read with NN 13/2017]

16. In case of GTA services provided to Mr. Pankaj not registered under GST and not a business entity, and tax rate is
5%,then liability to pay GST is on
(a) Recipient i.e. Mr. Pankaj & Business Entity
(b) GTA
(c) Exempt
(d) None of the above
Solution: (c)

Hint: Exempt under Serial No. 21A of NN 12/2017 dated 28th June 2017]
17. In case of sponsorship services provided by Mr. Anand to M/s Gada & Associates a partnership firm for which
Gada & Associates pays Amounted Rs. 100000/- to Mr.Anand, liability to pay GST is on
 (a) M/s Gada & Associates
(b) Mr. Anand
(c) If less than 1 Lakh then Gada & Associates otherwise Mr. Anand
(d) None of the above
Solution: (a)

Hint: RCM would be applicable under sec 9(3) read with NN 13/2017

18. In case of renting of land, inside an Industrial estate, by Maharashtra State Government to a registered
manufacturing company X Ltd. for Industry development, liability to pay GST is on:
(a) Registered Manufacturer Company i.e. X Ltd.
(b) State Government (Maharashtra)
(c) Both
(d) None of the Above
Solution: (a)

Hint: Renting of immovable property by govt to regulated business entity liable to pay GST in RCM.

19. Mr. Dhiraj is providing Insurance Agency Services, in case of services provided by him to M/s. ABC Insurance Co.
Ltd., GST is to be paid by:
(a) ABC Insurance Co. Ltd. (b) Insurance Agent
(c) Both (a) & (b) (d) All of the above
Solution: (b)

Hint: Services supplied by an Insurance Agent to any person carrying on Insurance Business is taxable
under RCM [Section 9(3) of CGST Act, 2017]
20. Remuneration received by whole time director of Tata Ltd., is liable for GST in the hands of the………
(a)Director (b)Tata Ltd
(c)Partly by Director & Partly by Company (d)None of the above
Solution: (d)

Hint: Not an independent director, remuneration received by whole time director covers under Sch-III

21. Mr. Pratik Desai is a Recovery Agent, Services by him to M/s Jalaram Bank Ltd., are liable for GST in the hands
of:
(a) M/s Jalaram Bank Ltd. (b) Recovery agent
(c) (a) & (b) Both (d) None of the above
Solution: (a)

Hint: Services supplied by a Recovery agent to a banking is covered under RCM [Sec 9(3) -CGST Act, 2017]
In the following cases Reverse Charge is applicable:
22. (a) Services provided by GTA (Mumbai) to A Ltd. (Registered in Pune), CGST rate is 6%
(b) Services provided by GTA (Mumbai) to B Ltd. (Registered in Pune), CGST rate is 2.5%
(c) Services provided by GTA (Mumbai) to Governmental Agency (Registered in Pune only for deducting TDS
under Section 51 of CGST Act, 2017), CGST rate on GTA Service is 6%
(d) All of the above
Solution: (b)
Hint:
(e) (a) If Tax rate is 6% taxable under FCM (b) Taxable under RCM [Sec 9(3)] (c) :- Exempt Entry No. 21B

23. Which of the following services provided by Post Office Department is Taxable?
(i) Post Services
(ii) Speed Post, Express Parcel, Life Insurance & Agency Services
(iii) Recurring Deposit Services
(iv) All of the above
(a) (i) and (ii) (b) (iv)
(c) Only (iii) (d) Only (ii)
Solution: (d)

Hint: Case (a) and (c) are Exempt as per Entry No.6
24. If a Mr. Bablu (a supplier) is under the composition scheme 10(1)/(A), does RCM still apply to the recipient
(a) Yes (b) No
Solution: (b)

Hint:
(b) Supplier is liable for Payment of Tax at the prescribed rate
25. If all supplies made by Mr. Kartik are covered under RCM, should he still register under the CGST Act if the
threshold exceeds the prescribed limit
(a) Yes (b) No
Solution: (b)

Hint: Notification No. 05/2017-Central Tax dated 19.06.2017 not required to obtain registration
26. When can credit for tax paid under reverse charge be taken? (Give most appropriate ans)
(a) Same month (b) Next month
(c) Any of the two months (d) When in GSTR 2A it appears
Solution: (a)

Hint: In case of RCM credit can be taken in Same Month.

27. Mr. Avinash, a supplier is under the composition scheme, does RCM still apply to the Mr.Avinash
(a) Yes (b) No
Solution: (a)

Hint: liable for payment of Tax under RCM if supply received from services covered under Sec 9(3)/(4)

28. Mr. Mussa, is Direct Selling Agent (DSA), Whether services supplied by him to banks/ non-banking financial
company (NBFCs) will be covered under Reverse Charge Mechanism:
 (a) Yes (b) No
Solution: (a)

Hint: Services supplied by individual DSAs other than a body corporate, partnership or LLP firm to bank or
NBFCs is covered under RCM [Section 9(3) of CGST Act, 2017]

29. Mr. Rakesh, a registered person under composition scheme, during the year 2019-20, the turnover of his
business crosses threshold limit then, Determine the consequences of this event?
(a) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year 2019-20
(b) He will cease to remain under the composition scheme from the quarter following the quarter in which
the aggregate turnover exceeds threshold limit
(c) He can continue under composition scheme till the end of the financial year
(d) He will cease to remain under the composition scheme with immediate effect
Solution: (d)

Hint:
(e) The composition scheme shall lapse w.e.f day when Agg T/O during FY exceeds limits specified.
30. Mr. Bhimsen started a business in Assam, he wants to know what is the threshold limit of turnover in the
preceding financial year for opting to pay tax under composition scheme ? U/S 10(1)
(a) Rs. 75 lacs (b) Rs. 150 lacs
(c) Rs. 1 crore (d) Rs. 110 lacs
Solution: (b)
Hint: Assam is not a special category states for the purpose of composition scheme u/s 10
31. Mr. Ghatotkach wants to start a business in Uttarakhand, he wants your advice regarding what is the threshold
limit of turnover in the preceding financial year for opting to pay tax under composition scheme ? U/S 10(1)
(a)Rs. 75 lacs (b) Rs. 25 lacs
(c) Rs. 50 lacs (d) Rs. 1.5 crore
Solution: (a)

Hint: Uttarakhand is a special category state for the purpose of composition scheme u/s 10

32. What is the rate applicable under CGST to A registered person being a manufacturer opting to pay taxes under
composition scheme is :-
(a)0.5% of Taxable Supply (b)No composition for manufacturer
(c)0.5% of Aggregate Turnover (d)1% of Aggregate Turnover.
Solution: (c)

Hint: For Manufacturer [Except Manf. of Notified Goods] CGST Rate is 0.5 % of Aggregate Turnover
33. A registered person started a hotel business (providing restaurant and accommodation services) opting to pay
taxes under composition scheme? U/S 10(1)
(a) 0.5% if T/O not exceed 150 Lakhs
(b) 2.5% if T/O not exceed 150 Lakhs
(c) 1% if T/O not exceed 150 Lakhs
(d) Not eligible for composition scheme thus liable to pay normal tax
Solution: (d)

Hint:
(e) Hotel business is not eligible for composition scheme. Only restaurant services are eligible u/s 10
34. Mr. Richa Chadda, a dealer in Gujarat has opted for composition scheme of taxation under GST. Determine the
rate of total GST payable by him under composition scheme:
(a)2.5% CGST & 2.5% UTGST (b)5% SGST & 5% CGST of ATO
(c)0.5% CGST & 0.5% SGST of TS (d)5% UTGST
Solution: (c)

Hint: Rate under composition scheme: CGST rate- 0.5% and SGST rate-0.5%
35. Mr. Gajanan is a dealer (a registered person) carried a business from many years can he avail composition
scheme for Intra-State supplies? (Presume all other Condition for availing composition schemes are full filled)
(a) No
(b) Yes
(c) Yes, subject to prior approval of the Central Government
(d) Yes, subject to prior approval of the concerned State Government
Solution: (b)
Hint: Person making inter-state supply of goods are not eligible to opt the scheme.
36. Can a registered person under composition scheme claim input tax credit if ITC is taken for same nature of
business
(a) Input tax credit on inward supply of goods only can be claimed
(b) Input tax credit on inward supply of services only can be claimed
(c) Yes
(d) No
Solution: (d)
Hint: A taxable person who is covered u/s 10 shall not entitled to claim credit of input tax.
37. 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, only on such goods as may be notified by the Central Government
Solution: (b)
Hint: A taxable person who is covered u/s 10 shall not collect any tax from the receipt on outward supply.
38. 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
Solution: (d)
Hint: Aggregate Turnover includes All Taxable Supplies (excl Inward Supply on which RCM applicable)
Which of the following is an inter-State supply?
39. (a) Supplier of goods located in Mumbai and place of supply of goods is to an SEZ located in Mumbai
(b) Supplier of goods located in Delhi and place of supply of goods in Red Fort (Delhi)
(c) Supplier of goods located in Jalandhar (Punjab) and place of supply of goods is to Amritsar (Punjab)
(d) All of the above
Solution: (a)

Hint: Supply of goods to/by SEZ developer or SEZ shall be treated as Inter-State supply [sec7(5)-IGST Act]
40. Which of the following is an intra state supply?
(a) Supplier of goods located in Delhi and place of supply of goods in Bikaner
(b) Supplier of goods located in Delhi and place of supply of goods in Delhi
(c) Supplier of goods located in Mumbai and place of supply of goods is to an SEZ located in Mumbai
(d) All the above
Solution: (b)

Hint:location
(e) of the supply and POS are in same state/UT will be treated as Intra-State supply [Sec8-IGST Act]
41. Which of the following transaction is inter-state supply of goods involving no movement of goods?
(a) Location of supplier is in Bangalore and location of recipient is in Mumbai and goods are shipped to
Kolkata
(b) Location of supplier is in Bangalore and place of supply is Mumbai
(c) Location of supplier and place of supply is Bangalore
(d) None of the above
Solution: (d)
Hint:
(e)
42. Mr.X (India) imported goods from USA is
(a) Neither Export nor Import (b) Export
(c) Inter -State supply (d) Intra - State supply
Solution: (c)

Hint: Supply of goods imported in Indian territory, shall be treated as inter-State supply. [Sec 7-IGST Act]
43. Mr. Kanha is an agent of General Insurance Co. The insurance company pays commission (excluding tax) Rs.8
Lakh to him. His value of taxable service does not exceed Rs.20 Lakhs.
a) Tax liability on mr kanha
b) Tax liability by General Insurance
c) No Tax liability, because turnover is less than threshold limit of registration
d) None of the above
Solution: (b)
Hint: services taxable under RCM [Section 9(3) of CGST Act, 2017] same as Q.20
44. Rahu is a director in R Limited. The Company paid him the sitting fee amounting to Rs. 25,000, for the month of
January, Further, salary was paid to Rahul amounting to Rs. 1.5 lakh for the month of January on which TDS was
also deducted as per applicable provision under Income-Tax law. Select the appropriate option.
 a) Tax payable by Rahul on Rs. 1.5L & by R Ltd. On Rs 25,000
b) Tax payable by Rahul is Nil
c) Tax payable by Rahul on Rs. 25,000 & by R Ltd. On Rs 1,50,000
d) Tax payable by Rahul is Nil R Ltd. Is Rs. 1,50,000
Solution: (b)

Ans:-(b)
e)
[Hint: - 1) On Rs. 25,000 taxes will be changed under RCM (Liability on R Ltd.)
2) On Rs. 1.5L covered under Schedule III & Tax will not be changed.]

45. From the following information pertaining to month of December 2020, determine the person liable to pay GST
and extent of GST payable: Mr. MG is an author of book named “1 Mistake of My Life”. Mr. MG transfer rights to
use copyright of his book to M/s. GE publisher, located in Mumbai for Rs 10L (excluding Taxes). Mr. MG claims
that no GST is payable since his aggregate turnover does not exceed Rs. 20L. Rate of GST is 12%.
a) GST 1.2L payable by Mr MG
b) GST 1.2L payable by GE publisher
c) GST 50,000 payable by GE publisher
d) GST 50,000 payable by Mr MG
Solution: (b)

Hint:
e) Supply of services by author by transfer of copyright to publisher taxable under RCM [Sec 9(3)]
46. Supply ofAssociates,
Ghanshyam services byregistered
an author,in Sikkim, is engaged in running a food chain ‘Veg Kitchen’ in the State. It has
music composer, photographer,
a turnover of Rs.73L in the preceding financial year. In the current financial year, it decides to shut down the food
artist or the like by way of transfer
chain owing to huge losses being incurred in the said business. Instead, it will start providing Intra-State architect
or permitting the use or enjoyment
services. Ghanshyam associates is,
of a copyright covered under
clause (a) of sub-section
a) Eligible (1) ofscheme U/s 10 (1)
for Composition
section 13 offor
b) Eligible theComposition
Copyright Act,
scheme U/s 10 (2A)
1957 relating to original literary,
c) Not eligible for composition scheme U/s 10 (1)/ 10 (2A)
dramatic, musical or artistic works
d) Not liable for GST
to a publisher, music company,
Solution: (c) or the like.
producer
Hint: dealer engage in supply of services are not eligible for composition scheme
47. Manpower supply (Not a Security personnal) services by XYZ & Co. (Partnership Firm) to Z ltd. [Registered person]
Rs. 12,00,000 , GST @ 18%

(a) GST 2,16,000 payable by XYZ & Co. (b) GST 2,16,000 payable by z ltd.
(C) Exempted Supply (d) None of the above
Solution: (a)

Hint:
48. Pure Labour Contract Services provided by Mr. Aashish to Z ltd. For Rs.10L & GST @18%.
 (a) GST 1,80,000 payable by Mr Aashish (b) GST 1,80,000 payable by Z ltd.
(c) Exempt Supply (d) None of the above
Solution: (a)

Hint: pure services provided to Govt for specified purpose shall be exempt under Sr No. 3

49. Services provided by Mr. ‘M’ a business facilitator to X ltd (Insurance Company) located in Mumbai for Rs. 10L.

a) X ltd. Will be liable for payment of Tax under RCM

b) Mr. M will be liable for payment of Tax under FCM
c) It is Exempted Supply
d) None of the above

Solution: (b)

Hint: Business facilitator services provided to Banking company taxable under RCM [Sec 9(3)- CGST Act]
50. Z & Co. registered under Composition Scheme U/s 10 (1) of CGST Act 2017, Z & Co. received security services from
B & Co. (Unregistered person) For Rs. 1,00,000 GST @18%.

a) GST 18,000 payable by Z & Co.

b) GST 18,000 payable by B & Co.
c) GST will not be charged on such supply.
d) None of the above.
Solutio[AK1]n: (c)

[Hint: - Recipient is registered under composition scheme, therefor such services taxable under FCM &
supplier is URP, GST will not be charged]

51. Mr Das enter into an agreement with the Government on 1st July 2020, on violation of the term in production
sharing agreement, Mr Das has paid Liquidated damages to the Government Rs. 10,00,000.

a) Govt will be liable for payment of Tax.

b) Mr Das will be liable for payment of Tax.
c) It is Exempted Supply.
d) It is not Covered under the definition of supply.
Solution: (c)
[Hint: - Exempt as per Entry No 62, exemption notification of CGST Act 2017]
52. Rajasthan Govt assigned the right to collect royalty on behalf of Rajasthan Government as ERCC to Mr. Rakesh
(PFY Turnover=22L). Rajasthan Govt noticed that the mining lease holder have short paid Rs.2,00,000 as IGST from
what had been exempted to him under the assignment GST Rate on Such Supply @ 18%.

a) GST Rs. 36,000 payable by Rajasthan Govt.

b) GST Rs. 36,000 payable by Mr. Rakesh.
c) GST 2,00,000 payable by Rajasthan Govt.
d) GST 2,00,000 payable by Mr. Rakesh
e) Exempt Supply.
Solution[AK2]: (d)
Hint:
53. Which of the following services does not fall under reverse charge mechanism provisions as contained under
section 9(3) of the CGST Act, 2017-
(i) Legal services provided by an advocate to an unregistered individual (not business entity)
(ii) Representation services provided by a firm of advocates to Registered business entity (PFY Agregate
Turnover 8L)
(iii) Services provided by a GTA to unregistered business entity (CGST Rate is 2.5%)
(iv) Services provided by an individual direct selling agent to financial institution.

(a) (i) & (ii) (b) (ii) & (iii)

(c) (iv) (d) (i),(ii),(iii),(iv)
Solution: (d)

Hint: Refer sec 9(3) of CGTS act, 2017 along with NN-13/2017 dated 28th June 2017
54.
A Photographer ‘Touch stone’ has commenced providing photography services in Mumbai from April this year.
His turnover for various quarter till December is as follows:
April-June Rs. 20L
July-Sept Rs. 30L
Oct-Dec Rs. 30L
On 30th June ‘Touch Stone’ was liable for registration,
‘Touch Stone’ opts for composition scheme for services U/s 10 (2A)
Determine Total Tax paid till Dec (GST Rate in regular scheme is 18%)
a) CGST Rs.2,40,000 , SGST Rs. 1,80,000 b) CGST Rs.1,80,000 , SGST Rs. 1,80,000
c) CGST Rs.4,20,000 , SGST Rs. 4,20,000 d) CGST Rs.3,60,000 , SGST Rs. 3,60,000
Solution: (d)

Hint: GST- 1. Apr- June: NIL (not require to get register)

2. July -Sept: 30L* 3%=90,000 ( Opt for composition scheme, hence CGST 3% has charged)
3. Oct- Dec: 30L* 9%=2,70,000 ( Option for scheme lapse as turnover exceed 50L, GST at normal rate)
Total GST= CGST: 360,000 and SGST:3,60,000

55. Which of the following persons can opt for the composition scheme under sub-sections (1) and (2) of section 10
of the CGST Act, 2017?
i. Registered person whose aggregate turnover in the preceding FY did not exceed ₹ 75 lakhs.
ii. Registered person whose aggregate turnover in the preceding FY did not exceed ₹ 1.5 crore.
iii. A person engaged in manufacture of pan masala, tobacco and manufactured tobacco substitutes.
iv. A person engaged in the manufacture of ice cream, other edible ice, whether or not containing cocoa.
v. A person engaged exclusively in providing restaurant service.
vi. A person engaged exclusively in supply of medicines.
(a) 1, 2, 3, 5 (b) 1, 2, 5, 6
(c) 2, 3, 4, 5 (d) 3, 4, 5, 6
Solution: (b)
Hint: Refer Sec 10 of CGST Act,2017.