“IGNITE ACADEMY”

CS Executive – GST – Test – Ch. 6, 8 To 13 – NS – 2023

Time – 50 min Marks - 30
SECTION A – MCQS’ – ANSWER WITH REASONS – 2 MARKS EACH
1. Which one of the following is not a condition as per section 16(2) of CGST Act,
2017, to avail Input Tax Credit (ITC) :
(a) Recipient has possession of tax invoice issued by supplier
(b) Goods or Services is actually consumed by Recipient
(c) Filing of valid return by supplier
(d) Supplier pays the tax to the government
2. A banking company has 52,000 by way of input tax credit for the month of
January, 2021. How much of input tax credit it can avail and how much would
lapse?
(a) 26,000 and balance 50% of ITC would lapse
(b) 13,000 and balance 75% of ITC would lapse
(c) 39,000 and balance 25% of ITC would lapse
(d) 52,000 and nothing would lapse
3. ABC Ltd. is engaged in manufacture of electrical appliances supply following
details relating to GST paid on various items by them:
Item GST Paid
Electrical Transformers utilized in the manufacturing process 1,20,000
Trucks used for transporting materials 80,000
Cakes and Pastries for consumption within factory 12,500
The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be
(a) 2,00,000 (b) 2,12,500 (c) 52,500 (d) 1,00,000
4. Find from the following which inward supplies are not eligible under section
17(5) of the CGST Act for Input Tax Credit (ITC) in case of a company who is
engaged in manufacturing of Paints and Chemicals:
(a) Trucks used in supply of finished goods
(b) Food and beverages consumed by workers in factory
(c) Life and health insurance paid for staff as per Government policy
(d) Motor vehicle of sitting capacity of 12 (excluding driver)
5. Section 56 of the CGST Act, 2017 states that claim of refund arising from an order
passed by an adjudicating authority or Appellate Authority or an Appellate
Tribunal or Court which is not being refund within days from the date of receipt
of application filed consequent to such order, interest at such rate not exceeding
per annum, shall be payable in respect of such refund.
(a) 30 days, 6% (b) 30 days, 9% (c) 60 days, 9% (d) 60 days, 6%
 SECTION B – Descriptive Questions
1. Bharat Ltd., a registered supplier under the regular scheme, is engaged in manufacture
of electronic items. The following details for the month of March, 2021 are available:
Item GST Paid
Machines acquired for manufacture (capital goods) 10,00,000
Electronic items utilized in manufacture 25,00,000
Trucks used for transporting materials 1,00,000
Food and beverages consumed within the factory 25,000
Advise the ITC eligibility for the company. [5]
2. Goyal Manufacturers, a registered person, instructs it's one of the suppliers to send the
input directly to Sumit Enterprises, who is a job worker, outside its factory premises for
carrying out certain operations on the goods. The goods were sent by the supplier on
15th July, 2020 and were received by the job worker on 17th July, 2020.
Whether Goyal Manufacturers are eligible to take Input Tax Credit (ITC) on the input
goods directly received by the job worker from the supplier. Discuss, what action under
the GST law is required to be taken by Goyal Manufacturers. [4]
3. Balaram, a registered supplier, furnishes the following details pertain in to the month of
October, 2017 (First month of starting of business):
Particulars Amount
Purchase of goods within state 8,00,000
Purchase of goods from outside the state 10,00,000
Inter-state sales 6,00,000
Intra-state sales 12,50,000
The rates of taxes for the goods supplied are as under:
Particulars Rate
CGST 6%
SGST 6%
IGST 12%
Compute the GST payable by the supplier Balaram for the month of October, 2017 [5]
4. Write a note on refund of tax under section 54 of CGST Act. Discuss the provisions
relating to refund of balance of electronic cash ledger as per the GST law. [2]
5. Explain the procedure of furnishing details of outward supplies and of revision for
rectification of errors and omissions as per CGST Act, 2017. [4]