ERODE ARTS AND SCIENCE COLLEGE (AUTONOMOUS), ERODE

DEPARTMENT OF COMMERCE (PROFESSIONAL ACCOUNTING)

QUESTION BANK

Subject: Goods and Service Tax Class: II- B.com (PA)

SECTION – A

Choose the correct answer

1). In India GST came effective from July 1st, 2017. From which country India has
borrowed Dual GST Model?
a) USA
b) Australia
c) Canadian
d) China
e) Japan
Answer:C

2) Which of the following country is the first one to implement GST to reduce tax-
evasion?
a) USA

b) France

c) China

d) Switzerland

e) Germany

Answer: (B).
3) Presently how many countries have implemented
GST? a) 102
b) 120
c) 140
d) 160
e) 180
Answer: (D).

4). The country with second highest tax slab i.e. 27% is:

a) Australia
b) Netherland

c) Argentina

d) Ireland

e) South Korea

Answer: (C). Argentina has the second highest tax slab 27%

5). Indian GST model has how many bands of tax rates?

a) 3

b) 4

c) 5

d) 6

e) 2

Answer: (B). In India GST model has 4 rate structure. They are 5%, 12%, 18% and
28%

6). How many types of GST in India?

a) 2

b) 3

c) 4

d) 5

e) 6

Answer: (B).

7). The country with highest GST Rate in the world is

a) Greece

b) China

c) USA
d) Australia

e) India

Answer: (E). India has the maximum tax slab (28%) compared to other countries.

8).In IGST, I stands for

a) International
b) Internal
c) Integrated
d) Intra
e) Innovation
Answer: (C).

9). The tax IGST charged by ___Government.

a) Central
b) State
c) Concerned department
d) Both a and b
e) All a, b and c
Answer: (A).

10.GST Stands for

A. Goods and Supply Tax

B. Government Sales Tax
C. Goods and Services Tax
D. General Sales Tax
Ans: C
11.In India GST became effective from

A. 1st April, 2017

B. 1st January, 2017
C. 1st July, 2017
D. 1st March, 2017
Ans: C

12.In India GST came effective from July 1st, 2017 India has chosen _______ model of
dual – GST.

A. USA
B. UK
C. Canadian
D. China.
Ans:C
13. GST is a _______ based tax on consumption of goods and services.
A. Duration
B. Destination
C. Dividend
D. Development
Ans:B

14.GST will be levied on………………..

(a) Manufacturers
(b) Retailers
(c) Consumers
(d) All of the above
Ans. d

15.Which of the following good will not be covered under the GST bill?
(a) Cooking gas
(b) Liquor
(c) Petrol
(d) All of the above
Ans. d

16. What does “I” stands for in IGST?

A. International
B. Internal
C. Integrated
D. Intra
ANS: C

17. Which of the following tax is not subsumed in GST

A. VAT
B. Stamp Duty
C. Entry Tax
D. Entertainment Tax
ANS: B

18.What are the taxes levied on an Intra-State Supply?

A. CGST
B. SGST
C. CGST and SGST
D. IGST
ANS: C

19.Which of the following is indirect tax?

(A) Income tax
(B) Wealth tax
(C) Corporation tax
(D) Sales tax
Ans. D

20.Which of the following tax is imposed by the Central Government but the state
government collects it?
(A) VAT
(B) Income tax
(C) Corporation tax
(D) Stamp Duty
Ans. D

21.Which of the following is not imposed by the Central Government?

(A) Agricultural tax
(B) Corporation tax
(C) Custom duty
(D) Sales tax
Ans. A

22.Which of the following taxes will be levied on Imports of goods and services?

A. CGST
B. SGST
C. IGST
D. Exempt
Ans: C
23.Maximum rate prescribed under UTGST/SGST?
A. 14%
B. 20%
C. 28%
D. 30%
Ans: B
24.How will the goods and services be classified under GST regime?
A. SAC/HSN Code
B. HSN Code
C. SAC Code
D. GST Code
ANS: A
25.HSN Code Stands for
A. Home Shopping Network
B. Harmonised System of Nomenclature
C. Harmonised System Number
D. Home State Number
ANS: B

26.SAC Code Stands for

A. Services Accounting Code
B. Software Accounting Code
C. System Accounting Code
D. Service Application Code
ANS:A

27.What is the threshold limit of turnover in the preceding financial year for opting to
pay tax under composition scheme?
A. Rs.75 lacs
B. Rs.1 crore
C. Rs.1.5 crore
D. None of the above
ANS: C

28.Which form is to be used for registration?

A. Form GSTR -1A
B. Form GSTR – 2
C. Form GST REG-01
D. Form GST REG
ANS: C

29.For an E-commerce operator registration threshold limit is?

A. Rs.20 lacs
B. Rs.50 lacs
C. Rs.75 lacs
D. None of above
ANS:D

30.What is the validity of the registration certificate?

A. Five years
B. Ten years
C. No validity
D. Valid till it is cancelled
ANS: D

31.How a person can apply for registration?

A. Filing FORM GST REG-01 along with necessary documents with the
jurisdictional proper officer.
B. Filing FORM GST REG-01 electronically in the common portal and uploading
the required documents along with the application.
C. Uploading necessary documents electronically in the common portal and also
submitting manually to the jurisdictional proper officer.
D. None of the above
ANS: B

32.What deductions are allowed from the transaction value

A. Discounts mention on invoice
B. Packing Charges mention on invoice
C. Any amount paid by customer on behalf of the supplier
D. Freight charges mention on invoice
ANS: A

33.Input tax credit on capital goods and Inputs can be availed in

A. In thirty six installments
B. In twelve installments
C. In one installment
D. In six installments
ANS: C

34.The time limit to pay the value of supply with taxes

A. 90 days
B. 6 months
C. 180 days
D. 365 dyas
ANS:C

35.Banking company or Financial Institution have an option of claiming ITC:

A. Actual Credit or 50% credit
B. Only 50% Credit
C. Only cctual credit
D. Actual credit and 50% credit
ANS:A

36.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. None of the above
ANS:B

37.Provisional Input tax credit can be utilized against

A. Any Tax liability
B. Self Assessed output Tax liability
C. Interest and Penalty
D. Fine
ANS:B

38.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. None of the above
ANS:B

39.Input Tax credit as credited in Electronic Credit ledger can be utilized for
A. Payment of Interest
B. Payment of penalty
C. Payment of Fine
D. Payment of Taxes
ANS: D

40.Tax invoice must be issued by________

A. Every supplier
B. Every taxable person
C. Registered persons not paying tax under composition scheme
D. All the above
ANS: C

41.A continuous supply of goods requires one of the following as a must:

A. The goods must be notified by the Commissioner in this behalf;
B. The contract for supply lasts for a minimum period of 3 months;
C. The supply is made by means of a wire, cable, pipeline or other conduit;
D. Supplier invoices the recipient on a regular or periodic basis.
ANS:D

42.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
C. Principal place of business mentioned in the Certificate of Registration
D. Any of the above
ANS:C

43.Accounts are required to be maintained in

A. Manual form
B. Electronic form
C. Manual and electronic form
D. Manual or electronic form
ANS:D

44.First Return filed under GST is

A. GSTR-1
B. GSTR-3A
C. GSTR-2
D. GSTR-3B
E. GSTR-4
ANS:D
45.The details of outward supplies of goods or services shall be submitted by
A. 10th of the succeeding month
B. 18th of the succeeding month
C. 15th of the succeeding month
D. 20th of the succeeding month
ANS: A

46.Every registered taxable person shall be entitled to take credit of input tax in his
return and such input tax credit shall be credited to
A. Personal Ledger Account
B. Refund account
C. Electronic Cash Ledger
D. Electronic Credit Ledger
ANS:D

47.Payment made through challan will be credited to which registers/ledgers?

A. Electronic Tax liability register
B. Electronic Credit ledger
C. Electronic Cash ledger
D. All of them
ANS: C

48.What is the due date for payment of tax?

A. Last day of the month to which payment relates
B. Within 10 days of the subsequent month
C. Within 20 days of the subsequent month
D. Within 15 days of the subsequent month
ANS:C

49.Refunds will not be allowed in cases of:-

A. Exports made on payment of tax
B. Exports made without payment of tax
C. Where tax on inputs are higher than tax on outputs
D. All of the above
ANS:A

50.Who is the chairman of GST council?

A. President of India
B. Prime Minister
C. Finance Minister
D. RBI Governor
ANS:C

51.GST threshold limit of North Eastern States is _______ lakhs

A. 5
B. 10
C. 12
D. 15
ANS: B

52.GST threshold limit of Normal States is _______ lakh

A. 12
B. 15
C. 20
D. 25
ANS:C

53.Smart Phones will be taxed at _______ under GST.

A. 0%
B. 5%
C. 12%
D. 18%
ANS:C

54.The Central Board of Excise and Customs (CBEC) announced that every year
_______ will be considered as GST Day.
A. 1st April
B. 1st March
C. 1st June
D. 1st July
E. 1st January
ANS:D

55. Input tax credit is allowed to

a) Any one who has paid tax
b) Any registered person
c) Any Composite dealers
d) Any dealer under GST
ANS:D

56. TDS rate under GST is

a) 1% b) 2% c)3% d)5%
ANS:A

57. GSTR-9 is also called

a) Annual Return
b) Monthly return
c) Quarterly return
d) Half yearly return
ANS:A

58. After making TDS if the deductor fails to furnish the certificate within five days of
crediting the amount so deducted to the Government, the deductor shall pay a late fee of
a) Rs.100 per day
b) Rs.150 per day
c) Rs.200 per day
d) Rs.250 per day
ANS:A

59. Tax and other dues of a registered person is recorded in

a) Electronic credit ledger b) Electronic Cash Ledger
c) Electronic Liability register d) None of these
ANS:C

60.A Composite taxpayer is required to file summarised details of transactions

a) Annually
b) Half yearly
c) Quarterly
d) Monthly
ANS:C
 SECTION-B [4 MARKS]
1. Define tax
2. What do you mean by tax system in india?
3. What are characteristics of taxation?
4. What is the objective of tax?
5. What is meant by indirect tax?
6. List out principles of Taxations.
7. How do you classify tax system?
8. What are the features of indirect tax?
9. Give an 4 points regarding merits and demerits of indirect tax.
10. What are the Issues with current Indirect Tax structure.?
11. What do you mean by GST?
12. Write about GST Council
13. What are the significance of Goods and Service Tax?
14. Write short notes about any 5 important GST terms.
15. What is mean by GST Registration?
16. What are the Eligibility for GST Registration?
17. What are the documents required to GST registration?
18. Write about GSTIN
19. Write about Penalty and Fees for GST.
20. What are the GST Rates applicable for different product?
21. How much penalty for delayed Payment?
22. List out the GST Payment Methods.
23. What is mean by GST Refund?
24. Define ITC.
25. What are the eligibility for Input Tax Credit ?
26. What is Mean by Reversal of Input Tax Credit?
27. What about Reconciliation of ITC?
28. What are the Documents require for claiming ITC?
29. Write short notes about Electronic Cash ledger and Electronic Credit Ledger
30. Write about Period of retention of accounts.

SECTION- C [15 MARKS]

1. Explain about Canons of Taxations.
2. Discuss Briefly about different Classifications of Taxes.
3. Explain about difference between Indirect Tax and Direct Tax –
4. Discuss about Constitutional basis of Taxation in India
5. Briefly explain about advantages and disadvantages of indirect tax system.
6. What are the salient features of GST –Explain
7. Discuss about GST Structure Vs. Present Tax Structure
8. Explain Briefly about any 10 important GST terms
9. What are the significance of GST registration?
10. Explain Briefly about GST Registration process.
11. What are the functions of GSTIN?
12. Discuss briefly about GST payment Procedure.
13. Explain about different types of GST payment methods.
14. What are the Procedure for GST refund claim?
15. Explain about Components of Input Tax Creidt.
16. Discuss about what are the records maintained by GST?
17. What are the Accounting Ledgers are maintained under GST?- Expalin.
18. Discuss about consequences of not maintaining of accounts.