Channel LIVE

Contents
Sl.
Chapter Name Page No.
No.

BLOCK - A : Introduction & Levy and Collection

of Tax
1. Overview of GST 3-8

2. Supply 9-21

3. Reverse Charge Mechanism 22-27

4. Composition Scheme 28-34

5. Exemption 35-40

BLOCK - B : Time, Value and Place of Supply

6. Input Tax Credit 43-54

7. Place of Supply 55-66

8. Time of Supply 67-74

9. Value of Supply 75-86

BLOCK - C : Registration & Tax Invoice

10. Registration 89-104

11. Tax Invoice 105-114

BLOCK - D : Payment of Taxes

12. Payment of Taxes 117-126

BLOCK - E : TDS, TCS & Returns

13. TDS, TCS & Returns 129-139
 Block - A
Introduction & Levy
and C ol l ec tion o f Tax
 Overview of GST

A Block
Chapter

O v e r v i e w o f GST
MMLTIPLE CCOICE QMESTIONS

1. GST stands for— b) Constitution (100th Amendment) Act,

a) Good and Simple Tax 2016
b) Geographical Sales Tax c) Constitution (99th Amendment) Act, 2016
c) Geographical Services Tax d) Constitution (110th Amendment) Act,
d) Goods and Services Tax 2016
7. The two components of dual model of GST are:
2. In India GST became effective from—
a) CGST and SGST
a) 30th June 2017
b) IGST and CGST
b) 8th August 2017
c) IGST and SGST
c) 1st July 2017
d) All of the above
d) 1st October 2017
3. GST is a based tax on consumption of 8. The GST model has following rate structure:
goods and services. a) 0%, 5%, 12.5%, 18%
a) Origin b) 0%, 5%, 18%, 28%
b) Destination c) 5%, 12%, 18%, 28%
c) Supply d) 0%, 5%, 15%, 28%
d) Both (b) and (c) are correct. 9. will be levied in place of Central Sales
4. The idea to introduce GST is made in year Tax (CST):
a) 2000 a) CGST and SGST
b) 2004 b) IGST
c) 2006 c) UTGST/SGST
d) 2010 d) CGST
5. Which of the following tax is not subsumed 10. will be levied in place of Value Added Tax
in GST? (VAT):
a) Value added tax a) CGST and SGST
b) Basic Customs Duty (BCD) b) IGST
c) Additional Customs Duty, commonly c) UTGST/SGST
known as Countervailing Duty (CVD) d) CGST
d) Special Additional Duty of Customs - 4% 11. Every person registered under GST shall be
(SAD) issued a unique number called as:
6. For the purpose of GST, was passed. a) GSTAN (Based on TAN)
a) Constitution (101 st Amendment) Act, b) GSTIN (Based on PAN)
2016 c) GSPIN (Based on PAN)

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d) GSTPIN (Unique Identification Pin) b) Sh. P. Chidambaram

12. Administration and levy of GST is as follows: c) Sh. Arun Jaitley
d) Sh. Pranab Mukherjee
a) Only Centre will levy and administer all
CGST, SGST and IGST.
b) Centre will levy and administer CGST and 18. Who is the Chairman of GST Council?
IGST and States will levy and administer a) Sh. Atal Bihari Vajpayee
SGST b) Sh. P. Chidambaram
c) Centre will levy and administer IGST only c) Sh. Arun Jaitley
and States will levy and administer CGST
d) Sh. Pranab Mukherjee
and SGST
d) State will levy and administer SGST and 19. When the Constitutional Amendments in
IGST and IGST shall be distributed among respect to GST were made effective?
Centre and State partially. a) 16.09.2016
13. How many returns are required to be filed by a b) 01.07.2017
regular taxpayer in a year under GST regime? c) 30.06.2017
d) None of the above
a) 36
b) 25 20. Who shall be the Chairman of the GST
c) 24 Council?
d) 37 a) Union Finance Minister
14. Which of the following commodities are not b) State Finance Minister
kept out of GST regime? c) Prime Minister
d) Lieutenant Governor
a) Distribution and transmission of electricity
b) Sale and purchase of real estate 21. How shall the Vice chairperson of the GST
c) Alcoholic liquor Council be elected?
d) Tobacco and tobacco products. a) GST Council shall elect from its Members
15. Article in Constitution of India makes b) President shall nominate
provision for constitution of GST Council? c) Prime Minister shall nominate
a) 279A d) States shall with majority elect the Vice
chairperson
b) 366
c) 269A 22. Which Article of the Indian Constitution
d) 246A defines the GST?
16. GST Council is the Constitutional Authority to a)Article 279A
decide policies of GST. b) Article 366(12A)
a) Complex c)Article 265
b) Apex d) Article 270
c) Secondary 23. Goods & Services tax means a tax on of
d) Base goods or services or both.
17. Who was the Finance Minister of India at a) Sale
the time of implementation of Goods and b) Transfer
Services Tax Act? c)Supply
a) Sh. Atal Bihari Vajpayee d) All of the above

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24. shall be levied on the inter-State branch a) 200

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transfers. b) 12
a) IGST c) 120
b) CGST d) 100
c) UTGST 31. Which Article of the Indian Constitution
d) SGST empowers the Government of India to levy
25. Will free supplies made to related person be IGST in case of inter-State supply?
taxable under GST? a) Article 246A
a) Yes b) Article 279
b) No c) Article 269A(1)
c) Maybe d) Article 366(26A)
d) None of the above
32. Tobacco products shall be subject to which of
26. GST is payable in the . the following taxes?
a) State where the goods or services or both a) Excise duty
are finally consumed.
b) GST
b) State where the goods or services or both
c) Excise duty plus GST
are procured.
d) VAT
c) State where the goods are manufactured
d) All of the above 33. Which section of the IGST says that petroleum
shall later be brought under GST Ambit?
27. What duties are levied in case of import of
goods? a) Section 4
a) Integrated goods & services tax b) Section 5(1)
b) Basic Custom Duty c) Section 5(2)
c) Social Welfare Surcharge d) Section 6
d) All of the above 34. Can tax be imposed on entertainment &
28. GST Compensation Cess shall be payable amusement by the Municipality, panchayat,
on . Regional Council & District Council after
implementation of GST?
a) Garments
b) Aerated drinks a) Yes
c) Electronics b) No
d) Stationery c) Yes, with prior permission of GST Council
d) Maybe
29. Central excise shall continue on which of the
following products? 35. When was GST implemented in State of
a) Petroleum crude Jammu & Kashmir?
b) High speed diesel a) 1st July 2017
c) Motor spirit b) 8th July 2017
d) All of the above c)30th June 2017
30. Territorial waters upto nautical miles d) 1st August 2017
inside the sea will be a part of the State so far 36. What can be the maximum rate of IGST that
as the GST is concerned. can be levied?

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a) 28% 43. When the 4 Bills namely: CGST Bill 2017,

b) 40% SGST Bill 2017, UTGST Bill 2017 & GST
c) 20% (Compensation to States) Bill 2017 received
d) 50% the President’s assent?
a) 12th April 2017
37. Which of the following fall in 0.25% rate
category? b) 30th June 2017
c) 8th August 2016
a) Rough diamonds
d) 1st July 2017
b) Precious & semi-precious stones
c) All of the above 44. GSTN is a
d) None of the above a) Non-profit organisation
b) Profit organisation
38. Which of the following are the benefits of GST
c) None of the above
implementation?
d) One Person company
a) Easy distribution network
45. The contract for developing GSTN was given
b) Seamless flow of credit
to .
c) Uniform GST law all over India
a) Infosys
d) All of the above
b) Wipro
39. Which website is used for filing GST returns? c) Intel
a) www.cbic.gov.in d) None of the above
b) www.gst.gov.in
46. Which Constitutional Amendment paved way
c) www.gstcouncil.gov.in for the introduction of GST?
d) All of the above
a) Constitution (101st Amendment) Act
40. What is the meaning of the cascading effect? b) Constitution (25th Amendment) Act
a) Charging tax on tax c) Constitution (75th Amendment) Act
b) Dual taxation d) Constitution (100th Amendment) Act
c) Non-eligibility of ITC 47. Which of the following are special category
d) None of the above states?
41. Which are the major deficiencies of the earlier a) Assam, J&K, Manipur,Meghalaya
taxation system? b) Punjab,Manipur, Meghalaya
a) Multiplicity of taxes c) Assam, J&K, Daman & Diu, Meghalaya
b) Non-availability of cross utilisation of taxes d) Assam, J&K, Manipur,Siiiguri
c) Obstructed movements of goods 48. Functions of GSTN includes
d) All of the above a) Facilitating registration
42. Which was the first country to implement GST? b) Computation & settlement of IGST
c) Matching of tax payment details with
a) USA
banking network
b) China
d) All of the above
c) France
d) Switzerland 49. GST Compensation Cess shall be levied on

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 Overview of GST

a) Automobile sector c) Harmony system number

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b) Specified luxury goods or demerit goods d) Harmonised system network
c) Pan masala 57. SAC Stands for
d) All of the above a) Service accounting code
50. GST Council was constituted on b) Service assistance code
a) 12th September 2016 c) Supply accounting code
b) 15th September 2016 d) Service application code
c) 8th August 2016 58. Can a person without PAN apply for registra-
d) 12th April 2017 tion under GST?

51. Which of the following are the salient features a) Yes

of GSTN? b) No
a) Trusted National Information Utility c) Maybe
b) Handles complex transactions d) None of the above
c) Technology partner 59. Which of the following taxes will be levied on
d) All of the above Imports of goods and services?

52. India has chosen its GST model from a) CGST

a) USA b) SGST
b) China c) IGST
c) UAE Countries d) Exempt Overview
d) Canada 60. GST, SAC stands for:
53. What does I stands for in IGST? a) Services Accounting Code
a) Integrated b) Software Accounting Code
b) Intra c) System Accounting Code
c) Inter d) Service application code.
d) International 61. When does liability to pay GST arise in case of
supply of goods?
54. Which of the following tax is not subsumed
in GST? a) On raising of invoice
a) Stamp duty b) At the time of supply of goods
b) Entertainment tax c) On receipt of payment
c) Octroi d) Earliest of any of above.
d) VAT 62. Alcoholic liquor for human consumption is
55. How the supplies shall be classified in GST? subjected to
a) HSN/SAC a) State excise duty
b) HSN b) Central Sales Tax/Value Added Tax
c) SAC c) Both (a) and (b)
d) Custom tariff code d) GST Overview

56. HSN stands for 63. Taxes subsumed in GST are

a) Harmonised system nomenclature a) Service tax
b) Harmonised system number b) Luxury tax

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c) VAT a) 1%
d) All of the Above b) 5%
64. The term ‘goods’, as defined under section c) 28%
2(52) of the CGST Act, 2017, does not include- d) 40%

a) Grass 68. Mr. A is the owner of a petrol pump in

b) Money and securities Rajasthan state and also owns certain licenses
c) Actionable claims for supply of liquor. With the implementation
d) Growing crops of GST, he got to know that certain items
relating to his business don’t fall in the ambit
65. Which of the following is not considered as of GST initially. Which of the following goods
‘goods’ or‘services’ under the CGST Act, 2017? and services are not taxable under GST?
a) Sale of a ten paisa coin having sale value of i) Supply of alcholic liquor for human
Rs.100/- Consumption
b) Sale of shares of unlisted company ii) Petroleum Crude
c) Sale of lottery tickets iii)Motor Spirit (petrol)
d) All of the above iv) High Speed Diesel
66. In GST, both Central and State Governments v) Natural Gas
have simultaneous power to levy GST on: Which of the above are not chargeable to
a) Intra-State Supplies only GST?
b) Inter-State Supply only a) i,iii,iv,v
c) Import b) i,ii,iv,v
d) Both Intra-State and Inter-State Supply c) ii,iii,iv
d) All of the above
67. What is the highest rate of tax prescribed by
GST Council?

A n s we r s
1 d 2 c 3 b 4 a 5 b 6 a
7 a 8 c 9 b 10 c 11 b 12 b
13 b 14 d 15 a 16 b 17 c 18 c
19 a 20 a 21 a 22 b 23 d 24 a
25 a 26 a 27 d 28 b 29 d 30 b
31 c 32 c 33 c 34 a 35 b 36 b
37 b 38 d 39 b 40 a 41 d 42 c
43 a 44 a 45 a 46 a 47 b 48 d
49 d 50 b 51 d 52 d 53 a 54 a
55 a 56 a 57 a 58 a 59 c 60 a
61 b 62 c 63 d 64 b 65 b 66 a
67 d 68 d

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 Supply

A Block
Chapter

Supply
MMLTIPLE CCOICE QMESTIONS
1. What is the taxable event under GST? c) Schedule III
a) Manufacturing of goods d) None of the above
b) Sales of Goods 5. Flow of consideration is not a mandatory field
c) Provision of Services under supply, in case of:
d) Supply a) Imports
2. Goods within the meaning of supply does not b) Activities specified under schedule I
includes c) Both
a) Movable property d) None of the above
b) Money and securities 6. A famous actor paints some paintings and
c) Actionable claim and things forming part sells them. The consideration from such sale
of land which are to be severed under a is to be donated to a charitable trust. Does
contract of supply the above activity qualify as supply?
d) All of the above a) Yes
3. Recipient of supply of goods or services b) No
means c) With prior permission of Government
a) where a consideration is payable for d) None of the above
the supply of goods or services or both, 7. Can an activity be considered supply even
the person who is liable to pay that when not made in course or furtherance of
consideration; business?
b) where no consideration is payable for the
a) Yes
supply of goods, the person to whom the
b) No
goods are delivered or made available, or
c) On prior Permission by the Government
to whom possession or use of the goods is
d) Not applicable
given or made available; and
c) where no consideration is payable for the 8. Supply as an activity can be made by:
supply of a service, the person to whom a) Taxable Person
the service is rendered b) Non-taxable person also
d) All of the above c) Both
4. Items out of the purview of Supply are d) None
provided in 9. Supply can be made to:

a) Schedule I a) Taxable person only

b) Schedule II b) Non-taxable person

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 Supply
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c) Both of the above any consideration. Does the same qualify as

d) None supply?

10. Who is taxable person under the definition of a) Yes, if made in the course or furtherance of
supply? business
b) No,since made without any consideration
a) Registered taxable person
c) Not a supply
b) Unregistered person liable to be registered
as taxable person d) Yes
c) Person not liable to take registration but 15. Siddhartha Fabrics made certain transfer of
takes voluntary registration under GST 400 Kurta Pieces to its branch in the same
d) All of the Above state. The transfer was made without any
consideration. Does the same classify as
11. A proprietor has received certain architectural
supply?
services for his house for which he pays a
consideration of ` 2,700. The person claims a) No,since made without consideration
that the supply executed was not made in the b) Yes, being branch transfer
course or furtherance of business. Is the same c) No,as supply made to self
eligible to be considered as supply? d) None of the above
a) Yes 16. M/s Deepak Ltd. made certain gifts to its
b) No employees, as
c) On prior permission of Government i. Pradeep-INR 50000
d) Not any ii.Sandeep-INR 47000
12. ABC Ltd. donates old computers to a iii Brij Kishor-INR 57000
charitable institution after they purchased Which of these gifts shall be liable to GST?
new computer systems. Such donation of a) (i), (ii) & (iii)
computers on permanent basis is b) (i) & (iii)
a) Supply under GST c) Only (iii)
b) Shall not be a supply d) None of the above
c) On prior approval of Government 17. Any gift made by an employer to an employee
d) Not any shall be considered as supply. What is the limit
prescribed for the same?
13. A Holding entity made certain transfer of fixed
asset on permanent basis to its subsidiary a) Less than or equal to 50,000
entity without any consideration. Does the b) More than 50,000
same classify as a supply under GST? c) Exactly 50,000
d) 50,000 and above
a) Yes
b) No 18. What are the transactions to be classified as
supply even if made without consideration?
c) On prior Permission of Government
d) None of the above a) Permanent transfer or disposal of business
asset
14. ABS Co. Pvt. Ltd. Provides certain services to b) Supply between related or distinct person
Mr.Jacob who holds 35% of the voting right in c) Import of services from related persons or
the company. The transfer made was without from self-establishment outside India

10 |MCQon IndirectTax
 Supply

d) All of the Above a) Yes

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19. Supply of goods or other similar articles for b) No
human consumption as a part of service, shall c) On the prior approval of government
be classified as: d) None of the above
a) Supply of goods 25. ABC Co. Pvt. Ltd. transferred certain assets
b) Supply of services forming part of business asset. The same
c) Both was transferred free of cost without any
d) None of the above consideration. What shall be the classification
of such supply?
20. Saurabh Associates of Delhi receives certain
a) Supply of Goods
consultancy services from Helen Corporates in
USA. Both are not related person. The services b) Supply of Services
received is without any consideration. Does c) Does not qualify as supply
the same classify as supply? d) As per the opinion of tax authority
a) Yes, Being import of services in the course 26. Mr. Vijay, being a Director of Kalisto Pharma
of business Pvt. Ltd. Is provided a car which he uses for
b) No, Since party to the contract are not his personal purpose. Does the same classify
related as supply? If yes under which group?
c) On the prior approval of the Government a) Yes, Supply of Goods
d) None of the above b) Yes, Supply of Services
21. Transfer of rights in goods has been c) Does not qualify as Supply
considered as supply under schedule II. What d) None of the above.
type of supply is it? 27. Mr. Ajay a taxable person initiates action
a) Supply of Goods of winding up his business due to any non-
b) Supply of Services compliance clause under legal verdict of
c) Either of two at the option of authority court. As a result of such incidence, he shall
d) None of the above cease to be taxable person under GST. All the
stocks standing as on date of winding up of
22. What type of supply shall transfer of title in business shall hence be classified as:
goods under works contract constitute?
a) Supply of Goods
a) Supply of Goods b) Supply of Services
b) Supply of services c) Does not qualify as supply
c) Either of the two at the option of authority d) None of the above
d) None of the above
28. What shall be the proper classification of
23. Any transfer made of title in goods shall be Renting of immovable property under supply?
considered as:
a) Supply of Goods
a) Supply of services b) Supply of Services
b) Supply of goods c) Does not qualify as supply
c) Does not qualify as supply d) None of the above
d) At the option of taxpayer
29. Temporary transfer or permitting use of
24. A job worker performed certain dyeing
intellectual right or property is classified as:
operations on fabrics. Does the given
operation qualify as supply? a) Supply of Goods

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 Supply
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b) Supply of Services c) Both

c) Does not qualify as supply d) None of the above
d) Supply on the prior permission of
35. What is the classification of sale of land and
Government
building under GST?
30. Perfect Info Solutions offers Computax a) Supply of Goods
software to businesses for smooth processing b) Supply of Services
of returns and accounts. Such software shall
c) Does not qualify as supply
be considered as:
d) None of the above
a) Supply of Goods
36. Schedule III of the CGST Act includes which of
b) Supply of Services
the following?
c) Does not qualify as supply
a) Funeral, Burial, Crematorium
d) None of the above
b) Functions performed by MP’s, MLA’s
31. Mr. Oberoi agreed with Duplex Info. Co. Pvt.
c) Services by any court or tribunal
Ltd. to withdraw the suit filed against the
d) All of the above
company, if principle amount of loan paid
by him to company is returned to him within 37. Mr. B, a whole time director in Shiva Co.
prescribed time. Does the withdrawal of the Pvt. Ltd. provides certain services in the
suit qualify as supply? course of employment to the company. The
Consideration received in respect of such
a) Yes
services has been taxed under Reverse charge
b) No
c) At the approval of Government mechanism. Is the classification justified?
d) None of the above a) Yes, Services of Director has been consid-
ered under Reverse charge Mechanism
32. Which among the following is included in
b) No, Since he is an employee and the same
Schedule II
fall under the ambit of schedule III
a) Transfer of title in goods
c) At the option of the Company
b) Renting of Immovable property
d) None of the above
c) Temporary transfer or permitting use of
intellectual property rights 38. The Government of Haryana took initiative
d) All of the above to develop Khadi, Village and Rural Industries
in various Panchayats and municipalities
33. Transaction falling outside the ambit of as public authorities. The same provision is
supply are provided in:
covered under:
a) Schedule I
a) Supply of Goods
b) Schedule II
b) Supply of Services
c) Schedule III
c) Neither of the two
d) None of the above
d) At the option of Appropriate Authority
34. Items provided under the ambit of Schedule III
39. Which of the following is not the characteristic
are not considered as:
of the composite supply?
a) Supply of Goods
a) Naturally bundled
b) Supply of Services
b) One supply should be a principal supply

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c) Single price is charged for the supply 45. Ajay went into Big Bazaar Outlet and

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d) None of the above purchased a gift wrap containing canned
foods, sweets, chocolates, cakes, dry fruits,
40. Which of the following is the feature of mixed
aerated drink and fruit Juices. What type of
supply?
supply it shall constitute?
a) Supply made at a single price a) Composite Supply
b) Non-taxable Goods supplied b) Mixed Supply
c) Naturally Bundled c) Non Taxable Supply
d) Persons in same industry follow same d) Not a supply under GST
practices 46. Mr. Rohit received a gift from a relative on
41. ABC Pvt Ltd. manufactures the jeans on order the occasion of Diwali. The packed box
of XYZ Pvt Ltd. Further, after manufacturing, contains canned foods, sweets, chocolates,
it also gets it delivered to XYZ Ltd. & gets the cakes, dry fruits, aerated drink and fruit Juices
in transit insurance done. What kind of supply all together. What type of supply shall it
is this? constitute?
a) Composite Supply
a) Mixed Supply
b) Mixed Supply
b) Composite supply
c) Non-taxable supply
c) None of the above
d) Not a supply under GST
d) Don’t know
47. What shall be the tax rate applicable in case of
42. Which of the following is not a composite
Composite supply?
supply?
a) Tax rate on principal item
a) Goods are packed and transported with
b) Highest tax rate of all the items
insurance
c) Average rate of the taxes on all goods or
b) Supplier of machinery providing erection services bundled
and commissioning services
d) None of the above
c) Goods transport agency arranging for
loading and unloading facility 48. What shall constitute the main item under
d) None of the above composite supply?
43. What does composite supply means? a) Principal Item of the supplies naturally-
bundled
a) Supply of two or more goods together
b) The goods or services as provided are b) Item with Highest tax rate
naturally bundled c) As per the option of the taxpayer
c) Both (a) and (b) d) None of the above
d) Neither (a) or (b) 49. What shall be the tax rate under mixed supply?
44. What does mixed supply means under GST? a) Tax rate as applicable on principal supply
a) Combination of two or more goods or b) Highest tax rate of all items bundled in
services made together for a single price. supply
b) Each of supply made together are not c) Either (a) or (b), at the option of taxpayer
naturally bundled. d) None of the above
c) Both (a) and (b)
50. A person purchase a bundle of toothpaste
d) None of the above
along with Tooth brush. Toothpaste under

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this case is liable to GST at 12% and tooth 55. Will activities of charitable institution be
brush for instance is liable to GST at 18% and taxable under GST?
is sold as a single unit for a single price. What a) Yes
shall be the tax rate applicable in case of such b) No
supply?
c) At the prior approval of Government
a) 18% d) None of the above
b) 12%
56. Who are the appropriate authorities to notify
c) NIL
a transaction as supply of goods or services?
d) None of the above
a) Central Government
51. A person purchases laptop from a vendor b) State Government
along with laptop bag. What types of supply
c) Central Board of Indirect tax and Custom
it shall constitute?
d) Both A and B on the recommendation of
a) Composite supply council.
b) Mixed Supply
57. What is the treatment of composite supply
c) Neither of the two
under GST?
d) As per recommendation of Government
a) Supply of Principal item
52. Which of the following are not naturally b) Supply of item with highest tax rate
bundled?
c) Both (a) and (b)
a) A packet of Watch, Tie and Belt d) None of the above
b) A Packet of canned food, such a burger,
58. For a transaction to be considered as supply,
chocolates, sweets, cakes, etc.
it should fulfil certain requirements:
c) Both
d) None of the above a) It should be of goods and services
b) It should be made for a consideration by a
53. Which of the following does not constitute taxable person
supply under Section 7 of the CGST Act. c) It should be made in the course or
a) Import of service for consideration not in furtherance of business
course or furtherance of business d) All of the above
b) Transaction in securities
59. Consideration within the meaning of supply
c) Services not in course or furtherance of
consists of:
business
d) Both (b) and (c) a) Money
b) Any payment made in kind
54. All the activities covered under actionable
c) Forbearance of any act
claims are exempt from tax as are entirely
d) All of the above
covered under schedule III. Do you agree?
60. Business within the definition does not
a) Yes, as provided under schedule III
consists of:
b) No, Lottery, Betting and gambling is a) Any trade, commerce, manufacture
covered under GST. b) Supply and acquisition of capital goods
c) As per the opinion of appropriate authority and services
d) None of the above

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c) Any activity of Government/Local a) Notified by the Government

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Authority in which it is engaged as public b) Specified under schedule I of CGST Act
authority c) Both (a) and (b)
d) All of the above d) None of the above
61. What are different types of supplies covered 66.Mr. Joseph being a managing director of
under scope of supply? Alpha Project Pvt. Ltd. made gifts to his
a) Supplies made with consideration employees worth of INR 60,000 each for
assisting in the architectural work of his
b) Supplies made without consideration
house. Does the same be considered
c) Both of the above
supply?
d) None of the above
a) Yes, since the value of gift exceeds the
62. What are the differentiating factors between provided limit of INR 50000
composite and mixed supplies? b) No, since the gift is not made in course or
a) Existence of principal supply furtherance of business
b) Nature and manner of bundling c) As per the option of appropriate authority
c ) Manner of pricing d) No
d) All of the above 67. Does the supply by the employer to the
63. Apurva Co. Pvt. Ltd. makes certain supplies entered into
employee in between
terms employer
of contractual and
agreement
to Mr. Dinesh and Mr. Swapnil. Both of them employee is covered under the ambit of
holds 51% of the voting rights in the company supply and consequently GST?
and exercise major stake in the decision a) Yes
making. Does the same supply stands as b) No
related party transaction? c) As per the opinion of the appropriate
a) Yes authority
b) No d) None of the above
c) As per the opinion of the appropriate 68. Franklin enterprises made gifts to
authority its employees worth 51,000 each, in
d) None of the above consideration of execution of a particular
project of the company. Does the same
64. Aaditya purchased a car for personal
qualify as supply?
consumption which after two years of use
a) Yes, Since the value exceed 50000 per
was sold to a car dealer, Chawla Motors for
employee
certain consideration. Does the same qualify
as supply? b) No, since such gift is made against a
consideration
a) No, since the supply is not made in
c) As per the opinion of the appropriate
course or furtherance of business
authority
b) Yes, since it is made for consideration
d) None of the above
c) Neither of the two
d) As per the opinion of appropriate Authority 69. Any agreement entered into as of hire
purchase or installment purchase of any
65. Any transaction of goods and services made goods shall be classified as:
without consideration shall only qualify as
supply when: a) Supply of Goods
b) Supply of Services

MCQon Indirect Tax | 15

 Supply
A Block

c) Neither of the two is this?

d) At the option of taxpayer a) Intra-State supply
70. Ajay let out his land for tenancy for a period b) Inter-State supply
of 3 years to Mohan. Such tenancy shall be c) Either of (a) or (b)
classified as: d) None of the above
a) Supply of goods 76. “Inward supply” in relation to a person, shall
b) Supply of services mean receipt of goods or services or both
c) Either of the two whether by
d) None of the above a) Purchase
71.Mr. A has been paid ` 50,000 by Mr. C for b) Acquisition
not selling the goods in his vicinity for a c) Any other means with or without
month. Does this constitute a supply? consideration
a) Yes d) All of the above
b) No 77. “Mixed supply”means
c) At the option of Government a) Two or more individual supplies of goods
d) None of the above or services, or any combination thereof,
72. A Ltd. has a contract with C Ltd. to provide made in conjunction with each other
book keeping services to B Ltd. B Ltd. is a b) Done by a taxable person for a single price
subsidiary of A Ltd. The liability to discharge c) Does not constitute a composite supply
consideration for such book keeping service d) All of the above
is of A Ltd. As per the CGST Act, 2017, who will 78. “Continuous supply of services”means a supply
be the recipient of the above service? of services which is provided, or agreed to be
a) A Ltd. provided, , under a contract, for a period
b) B Ltd. with periodic payment obligations
c) C Ltd. and includes supply of such services as the
d) Both (a) and (b) Government may, subject to such conditions,
as it may,by notification, specify
73. Exempt supply includes:
a) Continuously or on recurrent basis, upto
a) Supplies attracting nil rate of tax
or exceeding three months
b) Supplies which are wholly exempt from
b) Continuously or on recurrent basis,
tax under section 11, or u/s 6 of IGST Act
exceeding three months
c) Non-taxable supply
c) At intervals, exceeding three months
d) All of above
d) At intervals, not exceeding three months
74.Mr.A of Delhi supplies goods in to Mr.C. Place
79. “Principal supply”, the term used in Composite
of supply is Delhi. What type of supply is this?
supply means the supply of goods or services
a) Intra-State supply which constitutes the of a composite
b) Inter-State supply supply and to which any other supply forming
c) Either of (a) or (b) part of that composite supply is
d) None of the above a) Ancillary element, predominant
75.Mr.A of UP supplies to a SEZ located in Noida, b) Usual element, ancillary
UP. Place of supply is UP. What kind of supply c) Predominant element, ancillary

16 |MCQon IndirectTax
 Supply

d) Predominant element, important consideration

A Block
80. “Services” means anything other than goods, 85.Mr. A had a capital asset on which he did
money and securities but includes not avail ITC instead claimed depreciation
on it. Now’ he has permanently transferred
a) Activities relating to the use of money or
the same to Mr. C without consideration. Is
its conversion by cash this a supply?
b) Immovable property
a) Yes
c) Securities b) No
d) Actionable claims c) Maybe
81. The definition of goods under the CGST Act d) None of the above
does not include— 86. As per which section or schedule does this
a) Grass transaction constitute a supply - Mr. A, being
principal supplies goods to his agent, Mr. C
b) Money and securities who will sell the same on behalf of Mr. A.
c) Actionable claims
a) Schedule I
d) Growing crops
b) Schedule II
c) Schedule III
82. As per the CGST Act, 2017, the
d) Section 8
term “works contract’’includes:
a) Construction, fabrication, completion, 87.Mr.A of Delhi is transferring stock to its branch
erection, installation, etc. of movable in UP.Is this transaction taxable?
property a) Yes
b) Construction, fabrication, completion, b) No
erection, installation, etc. of immovable c) Maybe
property d) None of the above
c) Both (a) and (b)
88. Whether supply of goods by principal to his
d) None of the above agent or by agent to his principal is taxable in
83. While repairing the factory shed, few goods the absence of consideration?
were also supplied along with the labour a) Yes
service.What kind of supply is this? b) No
a) Composite Supply c) Maybe
b) Mixed Supply d) None of the above
c) Works Contract Service 89. Whether supply by artists through galleries is
d) None of the above leviable under GST?
84. Import of service shall be considered as a) Yes
supply if b) No
a) Done whether or not in course of or c) Maybe
furtherance of business d) None of the above
Hint: Circular No. 22/22/2017-GST, dated 21-
b) For a consideration
12-2017 states art works sent to the gallery
c) Both (a) & (b) for exhibition does not involve consideration,
d) Done whether or not in course of therefore, the same is not a supply.
or furtherance of business without

MCQon Indirect Tax | 17

 Supply
A Block

90. Whether food supplied to the in-patients as 96. of the Constitution provides that no tax
advised by the doctor is taxable under GST? shall be levied or collected except by authority
a) Yes of law?
b) No a) Article 254
c) Maybe b) Article 245
d) None of the above c) Article 265
91. What kind of supply is this transaction: “Food d) Article 256
supplied to the in-patients as advised by the
97. Which tax shall be levied in case of interstate
doctor in the hospital.”
supply of aircraft engines, parts & accessories
a) Composite Supply by airlines to own branch?
b) Mixed Supply
a) IGST
c) Works Contract Service
b) CGST+SGST
d) None of the above
c) CGST+UTGST
92. Comment: “Supplies of food by a hospital to d) Not taxable as branch transfer
patients (not admitted) or their attendants or
visitors are taxable.” 98. In GST what is the taxable event?

a) Yes a) Sale
b) No b) Transfer
c) Maybe c) Supply
d) None of the above d) Transaction
99. Comment: Central Government can specify
93. Which section provides for the levy of the via notification, the transactions that shall
CGST? be treated as supply of goods or supply of
a) Section 5 services.
b) Section 7 a) Correct
c) Section 8 b) Incorrect
d) Section 9 c) Partially correct
94. What are the elements differentiates compos- d) None of the above
ite supply & mixed supply?
100.“Imports for charity activities.” Is this a supply
a) Nature of bundling ie. artificial or natural as per GST?
b) Existence of principal supply
a) Yes
c) Both of the above b) No
d) None of the above c) Maybe
95. Comment on the tax rate applicable in case of d) None of the above
composite supply? 101.Mr. A has sold his old furniture of the
a) Tax rate as applicable on principal supply house. Does this constitute a supply?
b) Tax rate as applicable on ancillary supply a) Yes
c) Tax rate as applicable on respective supply b) No
d) None of the above c) Maybe
d) None of the above

18 |MCQon IndirectTax
 Supply

102.“Transfer of business assets without 107.High sea sales are considered as supply under

A Block
consideration will attract GST only in respect GST.True or false?
of those goods where ITC has been availed.” - a) Yes
Comment. b) No
a) Correct c) Maybe
b) Incorrect d) None of the above
c) Partially correct 108.Actionable claim other than shall not
d) None of the above be considered as supply.
103.Services by way of transfer of a going concern, a) Lottery
as a whole or an independent part thereof is b) Betting
c) Gambling
a) Exempt from GST d) None of the above
b) Taxable under GST 109.Mr. A gave ` 500 note to Mr. B, who in
c) Partially taxable & partially exempt return gave 5 notes of ` 100 back to Mr. A.
d) Taxable at 28% Does this qualify “service” definition as per
GST Law?
104. Mr. A has 2 place of business in Delhi & both
a) Yes
of them has separate registration number. Will
b) No
both these places be considered as ‘distinct
c) Maybe
person’for the purpose of Supply in GST?
d) None of the above
a) Yes
110. Securities are
b) No
a) Goods
c) Maybe
b) Services
d) None of the above
c) Supplies
105. Free food is supplied in the religious d) Neither goods nor services
institutions. Is the same taxable? 111. Facilitating or arranging transactions of
securities is subject to GST. True or false?
a) Yes
a) True
b) No
b) False
c) Maybe
d) None of the above c) Partially correct
d) None of the above
106. Which of the following statements are
correct? 112. Which of the following statements is true
a) Sale of flat in a residential complex before it under GST? Supply
is occupied is liable to GST. a) Grand-parents are never considered
b) Any sale by the buyer will not attract GST if as related persons to their grandson/
he occupies the complex even if completion granddaughter
certificate is not obtained. b) Grand-parents are always considered
c) If builder is selling any residential complex, as related persons to their grandson/
he will be exempt from GST only if he sells granddaughter
after completion certificate is obtained c) Grand-parents are considered as related
d) All the above statements are correct. persons to their grandson/grand daughter

MCQon Indirect Tax | 19

 Supply
A Block

only if they are wholly dependent on their 116.Which of the following is not a supply of
grandson/granddaughter services?
d) None of the above a) Renting of Commercial Office Complex
113.Which of the following activity shall be b) Payment of Non-Compete Fee by an
treated neither as a supply of goods nor a ex-employee to his previous employer
supply of services? (i) Permanent trans- of c) Repairing of Mobile Phone
business assets where input tax credit has d) Permanent transfer of business assets on
been availed on such assets (ii) temporary which ITC is availed
transfer of intellectual property right (iii) 117.Which one of the following is not a c
transportation of deceased (iv) services by an omposite supply:
employee to the employer in the course of
a) Supply of an air conditioner along with
employment
freight, insurance and installation
a) (i) & (iii)
b) Supply of UPS along with external battery
b) (ii) & (iv) c) Supply of architect services along with
c) (i) & (ii) supply of material incidental to his services
d) (iii) & (iv) d) Supply of lodging service by a hotel
114.Which of the following services received including breakfast
without consideration amount to supply?
118.Mr. Chatpat, an agent of Lalji (P) Ltd. is
1) Import of services by a person in India making taxable supply of goods on behalf of
from his son well-settled in USA Lalji (P) Ltd. Lalji (P) Ltd. is having aggregate
2) Import of services by a person in India from turnover of ` 1.5 crore whereas Mr. Chatpat
his brother well-settled in Germany is having aggregate turnover of ` 18 lacs.
3) Import of services by a person in India Whether he is required to take registration?
from his brother (wholly dependent on
a) No, because his turnover is less than ` 20
such person in India) in France
lacs
4) Import of services by a person in India
b) Yes, he is compulsorily required to get
from his daughter (wholly dependent on
registered
such person in India) in Russia
c) He is exempt from taking registration by
a) 1), 3) and 4) way of notification
b) 2), 3) and 4) d) He can voluntarily apply for registration
c) 2) and 3)
119.In which of the following cases, import of
d) 1) and 2)
services is taxable under GST?
115. Which of the following is not a composite 1) Import of service with consideration in
supply? course or furtherance of business.
a) Supply of charger and mobile phone 2) Import of service with consideration not in
b) Supply of battery and inverter course or furtherance of business.
c) Supply of cement under works contract 3) Import of service without consideration
services from a related person in course or
d) None of the above furtherance of business.
4) Import of service without consideration

20 |MCQon IndirectTax
 Supply

from a related person not in course or c) Goods are naturally bundle and supply

A Block
furtherance of business. with conjunction with each other.
a) (1) and (3) b) (2) and (4) d) Supply of same product in bundle with
c) (1), (2) and (3) d) (4) special price

120. One of the main features of Composite 121. Tax liability for mixed supply of two or more
supply is items will be

a) Supply of two or more goods at a special a) same tax rate

discount b) lowest tax rate
b) Mixing of various products as suitable c) individual tax rate
for customers d) highest tax rate

A n s we r s
1 d 2 d 3 d 4 c 5 b 6 a
7 a 8 a 9 c 10 d 11 a 12 a
13 a 14 a 15 a 16 c 17 b 18 d
19 b 20 b 21 b 22 b 23 b 24 a
25 a 26 b 27 a 28 b 29 b 30 b
31 a 32 d 33 c 34 c 35 c 36 d
37 b 38 c 39 c 40 a 41 b 42 d
43 c 44 c 45 b 46 d 47 a 48 a
49 b 50 a 51 a 52 c 53 d 54 b
55 b 56 d 57 a 58 d 59 d 60 d
61 c 62 d 63 a 64 a 65 b 66 a
67 b 68 a 69 a 70 b 71 a 72 a
73 d 74 a 75 b 76 d 77 d 78 b
79 c 80 a 81 b 82 b 83 c 84 c
85 b 86 a 87 a 88 a 89 b 90 b
91 a 92 a 93 d 94 c 95 a 96 c
97 a 98 c 99 a 100 b 101 b 102 a
103 a 104 a 105 a 106 d 107 b 108 d
109 b 110 d 111 a 112 c 113 d 114 a
115 b 116 d 117 b 118 b 119 c 120 c
121 d

MCQon Indirect Tax | 21

 Reverse Charge Mechanism
A Block

Chapter 3
Reverse Charge Mechanism
MMLTIPLE CCOICE QMESTIONS
1. What are the supplies to which the reverse c) Both
charge mechanism could be applied? d) None
a) Inward supplies of Goods or Services or 6. Can Input tax credit standing in the Electronic
both credit ledger be utilized for payment of tax
b) Outward supplies of Goods or Services or under Reverse Charge Mechanism?
both
a) Yes
c) Both the above
b) No
d) None of the above
c) Not Applicable
2. Who are the persons liable to pay tax under d) Maybe
reverse charge mechanism?
7. Is the below statement correct:
a) Registered Supplier
“A person is not required to obtain registration
b) Registered Recipient if he is required to pay tax under reverse
c) Unregistered Supplier charge but he has not exceeded his threshold
d) Unregistered Recipient limit”
3. What can be supplied under reverse charge a) Incorrect, the person is required to take
mechanism? registration & pay tax under reverse
charge irrespective the fact that threshold
a) Goods
is crossed or not.
b) Services
b) Incorrect, if the person is required to
c) Both
pay tax under reverse charge he shall
d) None
obtain registration only if the value of
4. Supply under reverse charge mechanism supply under reverse charge exceeds the
involves movement of goods/services by: threshold limit.
a) Registered supplier to registered recipient c) Above statement is correct.
b) Unregistered supplier to registered d) Correct, a person is required to obtain
recipient registration if he is required to pay tax
c) (a) & (b), both under reverse charge and, he is making
taxable supplies irrespective of the
d) Not any
threshold limit.
5. Input tax credit in case of reverse charge
mechanism can be availed by: 8. Who is Liable to be mandatorily registered
under Reverse Charge Mechanism?
a) Supplier of the Goods/Services
a) Supplier
b) Recipient of Goods/Services

22 |MCQon IndirectTax
 Reverse Charge Mechanism

b) Recipient 14. A person makes supply of lottery to certain

A Block
c) Both lottery distributor or selling agent within a
d) None state. The liability as such to pay tax on such
supply shall fall on:
9. Mr. X is liable to pay tax under Reverse Charge
Mechanism. What shall be the threshold limit a) Person supplying Lottery
applicable for registration of Mr. X b) Lottery Distributor or Selling Agent
a) 20 lakhs c) Both
b) 10 lakhs d) None
c) 50 Lakhs 15. Government of Maharashtra makes supply of
d) No threshold lottery to certain lottery distributor or selling
agent within the state. The liability as such to
10. Mr. Aman being an unregistered supplier-
pay tax on such supply shall fall on:
supplies goods worth of Rs. 1,50,000 to Mr.
Ajay who is registered under GST. The Person a) Government of Maharashtra
liable to raise purchase voucher shall be: b) Lottery Distributor or Selling Agent
a) Mr.Aman c) Both
b) Mr.Ajay d) None
c) Both 16. Is Advance payment made subject to Reverse
d) None Charge mechanism under the GST regime?
11. Is Reverse Charge mechanism applicable to a) Yes
E-Commerce Operator? b) No
a) Yes c) Not Applicable
b) No d) Yes with prior permission of Government.
c) Not applicable 17. What is the tax rate applicable on a composite
d) As when provided by the authority dealer falling under Reverse Charge
12.Mr.X being an unregistered trader,purchased Mechanism?
raw cotton from an Agriculturist. The same is a) As applicable to a composite dealer
supplied to Mr. Z who is registered under GST. b) As applicable to a normal taxpayer
Who is liable to pay tax? c) Exempt
a) Mr.X d) None of the above
b) Mr.Z 18. What are the invoicing rules to be followed
c) Agriculturist under Reverse Charge Mechanism?
d) None a) Mention Reverse charge clause on the tax
13. Mr. X being an agriculturist producing raw invoice
cotton. He makes a supply worth INR 75,000 b) Mandatory issue of payment voucher by
to Mr. Z who is registered under GST. Who is the recipient of goods/services
liable to pay tax? c) Self-invoicing in case of such supply
received
a) Mr.X
d) All of the above
b) Mr.Z
c) Both 19. What is the manner of payment of tax under
d) None Reverse charge?

| 23
MCQon Indirect Tax
 Reverse Charge Mechanism
A Block

a) Through Input available in the electronic RCM.

credit ledger a) Input tax
b) Through Cash ledger b) Output tax
c) Through both mediums c) Cash ledger
d) None d) Credit ledger
20. When input tax credit be claimed under 26. Persons who are required to pay tax under
Reverse Charge? RCM are
a) After payment of tax liability a) Required to take compulsory registration
b) After issue of Invoice irrespective of the threshold limit
c) Earliest of Both b) Required to take compulsory registration
d) Not Applicable only when the threshold limit is crossed
21. Who are the persons liable to comply with c) Can pay the tax even without taking
return filling obligations under Reverse registration
Charge? d) Not required to take registration
a) Registered Supplier 27. Which of the following statements are true
b) Registered recipient for reverse charge?
c) Both
a) Self-invoicing must be done.
d) None
b) A single consolidated monthly invoice can
22. Which of the following services are covered be issued.
under RCM? c) Both statements are correct
a) Advocate services d) Both statements are incorrect
b) Goods transportation services
28. Can the person avail the input tax credit of
c) Insurance agent services the tax paid under RCM?
d) All of the above
a) Yes
23. If the goods being supplied by the person is b) No
exempted from GST, will the recipient still be
c) Maybe
liable to pay under RCM?
d) Yes,after prior intimation to Commissioner
a) Yes
29.Mr. A was having Rs. 50,000 in his credit
b) No
ledger in the month of January 2018 and in
c) Maybe
the same month he made purchases on
d) Supplier shall pay the tax
which tax of Rs. 30,000 under RCM was to
24. If the person receives supplies under RCM, be paid. Which of the following method
will such supplies form a part of aggregate can be used for the same?
turnover?
a) Pay Rs. 30,000 by utilizing ITC of Rs. 50,000
a) Yes b) Pay Rs. 30,000 from cash ledger
b) No c) Pay Rs. 15,000 by cash and utilize ITC for
c) Yes, if they exceeds threshold the balance amount
d) Maybe d) Anyone of the above can be followed
25. excludes tax payable by a person under 30. An unregistered person of Haryana made

24 |MCQon IndirectTax
 Reverse Charge Mechanism

a supply to a registered person in Delhi. a) Mr.X

A Block
Comment. b) Central government
a) The registered person must pay tax under c) None of them
RCM d) Both of them
b) Unregistered person must take
35. ABC Pvt. Ltd. Has taken consultancy services
compulsory registration in GST before
from an engineer in USA, Who shall be liable
making inter-State supply
to pay tax & under what head?
c) Provisions of section 9(3) shall be attracted
a) ABC Pvt. Ltd. will pay the tax, IGST
d) All above statements are correct
b) ABC Pvt. Ltd. will pay the tax, CGST & SGST
31. “Mr. X is only supplying services under RCM & c) Engineer will pay the tax, IGST
the total supplies made during the year was d) Engineer will pay the tax, CGST & SGST
Rs.100 lakhs.”Comment.
36. Mr. A, a lawyer provides representational
a) Mr. X must take compulsory registration
services to XYZ Pvt Ltd having a turnover of
under GST
Rs.15 lacs. Is RCM applicable?
b) Mr. X may operate without registration
under GST a) Yes
c) Mr. X must take registration as he has b) No
exceeded the threshold limit c) Maybe
d) None of the above d) Mr.A needs to pay tax

32.Mr. A has supplied goods to Mr. Y which are 37. Mr. A, a lawyer provides representational
covered under RCM. Both of them are located services to XYZ Pvt. Ltd. having a turnover of
in Delhi. Which tax shall be paid? Rs.25 lacs. Is RCM applicable?

a) CGST & Delhi GST a) Yes

b) IGST b) No
c) CGST & UTGST c) Maybe
d) CGST & IGST d) Mr.A needs to pay tax

33. Mr. X provides the transportation services 38. Central government gave a piece of land on
just like a Goods transportation agency but rent to M/s ABC Pvt. Ltd., registered in Delhi.
doesn’t issue a consignment not. Will RCM be Who shall pay tax? Is RCM applicable?
applicable on his supplies? a) Central Government, RCM Applicable
a) Yes b) Central Government, RCM not Applicable
b) No c) M/s ABC Pvt. Ltd., RCM Applicable
c) Maybe d) M/s ABC Pvt. Ltd., RCM not Applicable
d) None of the above 39. ABC Pvt. Ltd. appointed Mr. Z as their whole
34. Central government made an advertisement time director and paid his fees regularly on
in the newspaper about the sale of vehicles time. Is this supply covered under RCM?
which are seized & confiscated by it. Mr. X a a) Yes
registered person purchases such vehicles b) No
from the Government for Rs. 20,00,000. Who c) Not taxable at all
shall be liable to pay tax?

| 25
MCQon Indirect Tax
 Reverse Charge Mechanism
A Block

d) Taxable under forward charge Hint: a) Notified categories of goods or services or

Employer-employee relationship both
b) Supplies from an unregistered dealer
40. ABC Pvt. Ltd. appointed Mr. Z as their
independent director and paid him the sitting c) Both the above
fees. Is this supply covered under RCM? d) None of the above
a) Yes 46. Which of the following services are covered
b) No under RCM?
c) Not taxable at all i Recovery agent services to banks
d) Taxable under forward charge ii Legal services
41. Punjab National Bank appointed Mr. Y, a ill Goods Transport Agency
recovery agent in order to recover the amount iv. Manpower Supply
paid to a defaulter Mr.X. Who shall pay the tax v, Rent-a-Cab
in this supply? a) i, ii, & iii
a) Punjab National Bank b) i & iv
b) Mr.Y c) i & iii
c ) Mr.X d) All the above
d) None of them 47. Silk yam procured by M/s XYZ Pvt. Ltd. from a
Trader, GST is payable by:
42. Comment on the correctness of the sentence
- “Person can take the credit of the tax paid a) Trader
under RCM only when he has paid the tax.” b) M/s XYZ Pvt. Ltd.
a) Correct c) Both the above
b) Incorrect d) None of the above
c) Partially correct 48. Is RCM applicable on supplies procured by a
d) None of the above composition dealer?
43. Reverse charge is applicable on a) Yes
a) Purchase order b) No
b) Sale c) Maybe
c) Supply d) None of the above
d) Lease 49. GTA has the option to pay at
44. Comment - “The supplier is operating below a) 12% under forward charge
the threshold limit that is why the recipient is b) 5% under forward charge
not liable to pay tax under RCM.” c) Both (a) & (b)
a) Correct d) None of the above
b) Incorrect 50. Which of the following services does not fall
c) Partially correct under reverse charge provisions as contained
d) None of the above under section 9(3) of the CGST Act?
45. On which supplies RCM u/s 9(4) would be a) Services supplied by arbitral tribunal to
applicable? business entity

26 |MCQon IndirectTax
 Reverse Charge Mechanism

b) Sponsorship provided to any partner-ship charge if:

A Block
firm a) GST is payable @ 12%
c) Sponsorship provided to any body b) GST is payable @ 5% and a factory regis-
corporate tered under the Factories Act, 1948 is the
d) None of the above recipient of GTA service.
c) GST is payable @ 5% and an unregistered
51. GST is payable by recipient of services in
individual end customer is the recipient of
the following cases:- (i) Services provided by
GTA service.
way of sponsorship to ABC Ltd. (ii) Services
supplied by a director of Galaxy Ltd. to Mr. d) None of the above
Krishna. (iii) Services by Depart-ment of Posts 53. Reverse charge means
by way of speed post to MNO Ltd.(iv) Services
a) The reversal of tax liability in case of
supplied by a recovering agent to SNSP Bank return of goods
a) (i) & (iii) b) The liability to pay tax by the recipient of
b) (i) & (iv) supply of goods and services
c) (ii) & (iii) c) Reversal of tax due to mistake detected
d) (ii) & (iv) later
d) The liability to pay tax where only
52. In case of Goods Transport Agency (GTA) services provided.
services, tax is to be paid under forward

A n s we r s
1 a 2 b 3 c 4 c 5 b 6 b
7 a 8 b 9 d 10 b 11 a 12 b
13 b 14 b 15 b 16 a 17 b 18 d
19 b 20 a 21 b 22 d 23 b 24 b
25 b 26 a 27 c 28 a 29 b 30 a
31 b 32 a 33 b 34 a 35 a 36 a
37 a 38 c 39 b 40 a 41 a 42 a
43 c 44 b 45 c 46 a 47 a 48 a
49 a 50 d 51 b 52 a 53 b

MCQon Indirect Tax| 27

 Composition Scheme
A Block

Chapter 4
Composition Scheme
MMLTIPLE CCOICE QMESTIONS
1. What is the threshold limit in case the persons d) Ice cream trader
of special category states takes fresh registra-
5. ABC Pvt. Ltd., has started his business in Delhi
tion in composition levy?
& has got himself registered in Composition
a) 50 Lacs scheme. He has purchased capital goods
b) 100 lacs worth ` 128,000 (tax amount ` 28,000)
c) 150 lacs andinputs worth ` 50,000 (tax amount `
d) 75 lacs 7,600). What is the eligible amount of ITC that
it can claim?
2. ABC Ltd., a manufacturer has got itself
registered in Delhi on 01.02.2018 in a) ` 28,000
composition scheme. It makes a supply to b) ` 7,600
XYZ Ltd., a registered entity in Delhi. It is c) ` 35,600
confused in respect to what is the GST rate d) Zero
applicable on it?
6. ABC Pvt. Ltd. is having place of business in 3
a) 0.5% States namely Haryana, Punjab & Rajasthan
b) 1% each having turnover of ` 20 lacs, 60 lacs, 80
c) 2% lacs respectively. Which State is eligible to opt
d) 2.5% for composition scheme?
3. ABC Ltd., a trader has got itself registered in a) Haryana
Delhi on 31.1.2018 in composition scheme. b) Punjab
In the month of August, it make supply of c) Rajasthan
taxable goods worth ` 3 lacs & exempted d) None of the above
goods worth ` 1 lac. On what value it shall pay
7. Can the person operating in regular scheme
the GST to the Government?
shift to composition scheme in middle of the
a) ` 1 lac financial year?
b) ` 3 lacs
a) Yes
c) ` 4 lacs
b) No
d) ` 2 lacs
c) None of the above
4. Who is not eligible to opt for composition
8. The person was operating in regular scheme.
scheme?
Nowin FY 2018-19, he wants to opt for the
a) Cotton Manufacturer composition scheme. Which form he must
b) Ice cream Manufacturer file to provide details of the input tax credit
c) Restaurant service provider in respect of the stock of goods held with him

28 |MCQon IndirectTax
 Composition Scheme

on the day preceding the date of opting in c) Yes,subject to prior approval of the Central

A Block
composition scheme. Government
a) FORM GST ITC-01 d) Yes, subject to prior approval of the
concerned State Government
b) FORM GST ITC-02
c) FORM GST ITC-03 14. What document shall a person under
d) FORM GST ITC-04 composition scheme issue to its customer?

9. The person was operating under normal scheme, a) Bill of supply

but now he wants to convert in composition b) Tax invoice
scheme. Which form he must file? c) Invoice
a) Form GST CMP-01 d) Payment Voucher
b) Part B of Form GST REG-01 15. Which of the following will be excluded from
c) Form GST CMP-02 the computation of ‘aggregate turnover’?
d) Form GST CMP-03 a) Value of taxable supplies
10. In which form can the person file for b) Value of exempt Supplies
withdrawal of composition scheme? c) Non-taxable supplies
a) Form GST CMP-01 d) Value of inward supplies on which tax is
b) Form GST CMP-02 paid on reverse charge basis
c) Form GST CMP-03
16. What shall be the consequences if the
d) Form GST CMP-04 turnover of a registered person opting to pay
11. Whether a restaurant serving alcohol along taxes under composition scheme during the
with other foods etc.to its customers can opt for year 2017-18 crosses the threshold limit?
composition scheme under Section 10? a) He may continue under composition
a) Yes scheme till the end of the FY 2017-18
b) No b) He has to mandatorily pay GST at normal
c) None of the above rate on entire turnover for the financial
d) Maybe year 2017-18
12. What is the threshold limit of turnover in the c) He will cease to be a composition dealer
preceding financial year for opting to pay tax with immediate effect
under composition scheme for States other d) He will cease to be under the composition
than special category States? scheme from the quarter following the
a) ` 20 Lacs
quarter in which the aggregate turnover
exceeds threshold limit
b) ` 10 Lacs
c) ` 150 Lacs 17. Which return has to be filed by the composi-
d) ` 100 Lacs tion dealer?
13. Can a registered person opt for composition a) GSTR-4
scheme only for one out of his 3 business b) GSTR-4A
verticals having same Permanent Account
c) GSTR-3B
Number?
d) GSTR-1
a) Yes
b) No

| 29
MCQon Indirect Tax
 Composition Scheme
A Block

18. ABC Ltd., a person registered in composition a) He must not be engaged in manufacture
scheme, operating in 4 different states has of notified goods.
filed the withdrawal intimation in one State. b) He must mention the words ‘composition
Will this intimation be applicable to all places taxable person, not eligible to collect tax
of business? on supplies’ at the top of bill of supply
a) Yes issued by him
c) Mention ‘composition taxable person’ on
b) No
c) Yes, but with prior permission of Central every notice or signboard displayed at
Government every prominent place of business.
d) No, but with prior permission of respective d) All of the above
State Government 23. Can a person paying tax under composition
levy,withdraw voluntarily from the scheme?
19. Can a person paying tax under composition
a) Yes
scheme make supplies of goods to SEZ
b) No
located in same State?
c) Maybe
a) Yes d) Yes,subject to prior approval of the Central
b) No Government
c) Yes,subject to prior approval of the Central 24. Will the person be eligible to claim the ITC
Government of the stock held by the person, in case he is
d) Yes, subject to prior approval of the denied by the proper officer to pay tax under
concerned State Government composition scheme?

20. Can a registered person avail input tax a) Yes

credit in case he makes purchase of goods b) No
from a taxable person paying tax under the c) Maybe
composition scheme? d) Yes, subject to prior approval

a) Yes 25. In which form the officer shall issue notice in

case he has reasons to believe that the person
b) Maybe
c) Yes,subject to prior approval of the Central is not eligible to opt for composition scheme?
Government a) Form GST CMP-01
d) No b) Form GST CMP-02
c) Form GST CMP-04
21. What form is to be filed for intimation by the
d) Form GST CMP-05
taxpayer that he shall be making the payment
of tax under composition scheme? 26. In which form the officer shall pass the order,
in case he is satisfied that the person is not
a) Form GST CMP-01
eligible to opt for the composition scheme?
b) Form GST CMP-02
a) Form GST CMP-04
c) Any one of the above (depending on
b) Form GST CMP-05
situation)
c) Form GST CMP-06
d) Both (a) & (b)
d) Form GST CMP-07
22. What are the other conditions and restrictions
subject to which a person is allowed to avail 27. Which of the following person is ineligible to
composition scheme? opt for composition scheme?

30 |MCQon IndirectTax
 Composition Scheme

a) Casual taxable person d) ` 2542

A Block
b) Non-resident taxable person 32. Will composition supplier make the payment
c) Inter-State supplier of services of CGST & SGST in separate heads or shall
d) All of the above make one combined payment?

28. ABC Pvt. Ltd., a Delhi based manufacturer of a) Yes, pay under separate heads
the pan masala, has started manufacturing b) No,pay a consolidate amount
biscuits within same PAN. His threshold of ` c) Maybe
20 lacs is crossed but is expected to be below d) Make payment under IGST
` 80 lacs in the current financial year. Can he
33. A person operating in composition issue a tax
opt for composition scheme?
invoice to a customer. Is the person correct in
a) Yes raising the invoice?
b) No a) Yes
c) Maybe b) No
d) Yes, with prior approval c) Yes, but tax amount should not be
29. Which of the following person cannot opt for separately shown
composition scheme? d) None of the above
a) Mr A, a garment trader having tumover of 34. Mr. A, a garment trader is also providing
` 40 lacs. He further rents out his property certain exempt services like extending
and charges ` 70,000 per month. deposits,loans etc.Can he opt for composition
b) Mr B, manufacturer of hand bags having scheme?
turnover upto ` 60 lacs
a) Yes
c) Mr C, selling hand bags through e-com-
b) No
merce portal which is not liable to collect
c) Maybe
tax at source u/s 52
d) None of the above
d) None of the above
29. What are the benefits of opting in composition 35. What are the notified goods that have been
scheme? kept outside the purview of a composition
dealer?
a) Easy compliance
a) Ice cream & other edible ice, whether or
b) Quarterly return
not containing cocoa.
c) No elaborate accounts & records
b) Pan masala
d) All of the above
c) Tobacco & manufactured
30. Calculate the tax to be paid by Mr. A, a tobacco substitutes.
composition dealer who is involved in trading d) All of the above
of garments. Details of his business is as below:
Purchases = ` 300,000 (including taxes of 36. If the show cause notice in Form GST CMP-05
45,762) Cost of products sold = ` 700,000 has been issued on 30th March 2018, then in
Invoice value = ` 900,000 which form can the taxpayer (composition
dealer) submit his reply?
a) ` 3000
b) ` 7000 a) Form GST CMP-05
c) ` 9000 b) Form GST CMP-06

| 31
MCQon Indirect Tax
 Composition Scheme
A Block

c) Form GST CMP-07 and warehousing of processed tea above

d) Form GST CMP-04 prescribed threshold limit

37. A person registered in composition scheme 41. Which of the following is not eligible for
in FY 17-18. Now, he again wants to operate opting composition scheme under GST?
in this scheme in FY 18-19. Does he need to a) M/s ABC, a firm selling garments having
file a fresh declaration for the same? annual turnover of ` 78 lakh
a) Yes b) A startup company operating restaurant
b) No in Delhi having a annual turnover of ` 98
c) Maybe lakh.
d) None of the above c) A courier service company operating
solely in Mumbai having annual turnover
38. Which of the following persons is not eligible of ` 90 lakh.
for composition scheme even though their
d) A trader selling grocery items having an
aggregate turnover does not exceed ` 1.5 cr.
annual turnover of ` 95 lakh
in preceding FY, in Uttar Pradesh?
42. At what rate shall a manufacturer be liable
a) A person supplying restaurant services
b) A person supplying restaurant services to pay GST[CGST+SGST] under composition
and earning bank interest scheme?
c) A person supplying restaurant services a) Half percent of the turnover in the State or
and warehousing of rice Union territory.
d) A person supplying restaurant services b) One percent of the turnover in the State or
and warehousing of processed tea above Union territory.
prescribed threshold limit c) Two percent of the turnover in the State or
Union territory.
39. Can a registered person opting for compo-
sition scheme collect GST on his outward d) Three percent of the turnover in the State
supplies? or Union territory.

a) Yes, in all cases 43. Every tax payer paying tax under section 10
b) Yes, only on such goods as may be notified (Composition levy) shall file the return in -
by the Central Government a) Form GSTR 3 by 18th of the month
c) Yes, only on such services as may be succeeding the quarter
notified by the Central Government b) Form GSTR 4 by 18th of the month
d) No succeeding the quarter
40. Which of the following persons is not eligible c) Form GSTR 4 by 30th April of next financial
for composition scheme even though their year
aggregate turnover does not exceed ` 75 d) Form GSTR 4 by 20th of the month
lakhs in preceding FY, in Sikkim? succeeding the quarter
a) A person supplying restaurant services 44. Grand Foods is engaged in supplying
b) A person supplying restaurant services restaurant service in Delhi. In the preceding
and earning bank interest financial year, it has an aggregate turnover of
c) A person supplying restaurant services ` 90 lakh from restaurant service and ` 10 lakh
and warehousing of rice from supply of farm labour and has earned a
d) A person supplying restaurant services

32 |MCQon IndirectTax
 Composition Scheme

bank interest of ` 10 lakh. is given to improve the quality of life

A Block
Which of the following statements are true in of patients who have a serious or life‐
the given case? threatening disease but the goal of such
(1) Aggregate turnover of Grand Foods, for care is not to cure the disease).
been rented for a marriage for a day. In (5) Alternative medical treatments by way of
determining eligibility for composition Ayurveda.
which of the following cases, such renting a) (1) and (3)
scheme, in the preceding FY is ` 90 lakh. b) (2) and (4)
is exempt from GST? c) (1)
(2) Aggregate turnover of Grand Foods, for d) (1), (4) and (5)
determining eligibility for composition
scheme, in the preceding FY is `100 46. Open area in the precincts of a temple has
lakh. been rented for a marriage for a day. In which
(3) Aggregate turnover of Grand Foods, for of the following cases, such renting is exempt
determining eligibility for composition from GST?
scheme, in the preceding FY is ` 110 a) Temple is owned by Sanatan Charitable
lakh. Trust (registered under section 12AA of the
(4)Supply of farm labour and supply of Income‐tax Act, 1961) and consideration
service of extending loans/deposits charged is ` 9,000.
does not make Grand Foods ineligible b) Temple is owned by Sanatan Charitable
for composition scheme. Trust (registered under section 12AA of
(5) Supply of services other than restaurant the Income tax Act, 1961) and
service ‐ supply of farm labour and supply consideration charged is ` 11,000.
of service of extending loans/ deposits c) Temple is owned by Sanatan Charitable
‐ by Grand Foods makes it ineligible for Trust (registered undersection 12AA of the
composition scheme. Income tax Act, 1961) and consideration
charged is ` 11,000.
a) (1) and (4)
b) (2) and (4) d) None of the above.
c) (1) and (5) 47. Return to be filed under composition levy in
d) (3) and (5) the form –

45. Which of the following services provided a) GSTR-3

by Good Health Care Nursing home are not b) GSTR-4
exempt? c) GSTR-5
(1) Reiki healing treatment. d) GSTR-6
(2) Plastic surgery conducted to repair cleft lip 48. Mr. X, a registered supplier of Meghalaya
of a new born baby. wants to opt for composition levy. The
(3)Air ambulance services to transport turnover limit for composition levy is-
critically ill patients from d i s t a n t a) ` 50 lakh
locations to Ayushman Medical Centre. b) ` 75 lakh
(4) Palliative care for terminally ill patients. c) ` 1 crore
On request, such care is also provided to
d) none of the above
patients at their homes. (Palliative care

| 33
MCQon Indirect Tax
 Composition Scheme
A Block

A n s we r s
1 d 2 b 3 c 4 b 5 d 6 d
7 a 8 c 9 c 10 d 11 b 12 c
13 b 14 a 15 d 16 c 17 a 18 a
19 b 20 d 21 c 22 d 23 a 24 a
25 d 26 d 27 d 28 b 29 a 30 d
31 c 32 a 33 b 34 a 35 d 36 b
37 b 38 d 39 d 40 d 41 c 42 b
43 c 44 b 45 c 46 a 47 b 48 b

34 |MCQon IndirectTax
 Exemptions

A Block
Chapter

Exemptions
MMLTIPLE CCOICE QMESTIONS
1. The action of removing any tax obligation or b) If the actual tariff for a unit of accommoda-
liability imposed can be called as - tion is below ` 1,000
a) Refund c) If the actual tariff for a unit of accommoda-
b) Discount tion is exactly ` 1,000
c) Exemption d) If the actual tariff for a unit of accommoda-
d) Allowance tion is above ` 1,000

2. Under GST regime, who has been given the 6. An exemption notification has been issued
authority to provide for any exemption? on 24.09.2018 to provide for an exemption
in the tax rate charged on a particular good
a) GST Council (The good has become taxable on 21.07.2018
b) Central Government vide a notification dated 20.07.2018), stating
c) Finance Minister the exemption would be applicable from
d) Both Central/State Government 01.10.2018. From which date onwards the
assessee can claim exemption?
3. What are the ways of granting exemption?
a) 20.07.2018
a) By general exemption notification and by
special order b) 24.09.2018
b) By general and specific exemption c) 01.10.2018
notifications d) 21.07.2018
c) By public notification and by specific 7. A person has claimed exemption in his supply
announcement in official Gazette of goods (of which he is ineligible) and later
d) None of the above. on when he was asked to provide reasons
for claiming such exemption, he neglected
4. Under section of CGST/SGST Act and totally on the grounds that such exemption
section of IGST Act, Government can will be available to him in future. Which of the
issue a general exemption notification. below statement is correct in this regard?
a) 6(1) and 11(1) a) A person claiming exemption has to
b) 11(1) and 6(1) establish that he is eligible for exemption
c) 11(2) and 6(2) contained in the notification.
d) 6(2) and 11(2) b) A person can claim exemption on the basis
of assumption of future notification also.
5. Services by a hotel, inn, guest house, club
or campsite are exempted for residential/ c) A person can state that he has claimed
lodging purposes - exemption on the recommendations of
GST experts.
a) If the actual tariff for a unit of accommoda-
d) None of the above.
tion is below ` 10,000

MCQon Indirect Tax| 35

 Exemptions
A Block

8. Does exemption from CGST automatically 14. Which one of the following is true?
operate as exemption from SGST? a) Entire income of any trust is exempted
a) Yes from GST
b) No b) Entire income of a registered trust is
c) In selected cases exempted from GST
d) Yes, and from IGST also. c) Incomes from specified/defined charitable
activities of a trust are exempted from GST
9. Does exemption from IGST automatically d) Incomes from specified/defined charitable
operate as exemption from CGST? activities of a registered trust (u/s 12AA of
a) Yes Income-tax Act) are exempted from GST
b) No 15. Which one of the following shall not be
c) In selected cases exempted from GST?
d) Yes,and from SGST also. a) Fee charged for yoga camp conducted by
10. Is the exemption or exclusion from GST the the trust
same thing? b) Amount received for advancement of
a) Yes educational programmes related to
b) No abandoned, orphaned or homeless
children
c) In selected cases
c) Amount received for renting of commercial
d) Can’t be differentiated.
property owned by the trust
11. from GST means that GST will not d) Amount received for activities relating to
apply either by treating it neither as supply of preservation of forests and wildlife.
goods nor as services or by excluding it from
section 9. 16. Service by way of transfer of is exempt
from GST.
a) Concession
a) Going Concern
b) Exclusion
b) Goodwill
c) Exemption
c) Patent
d) None of the above.
d) Copyrights
12. If the effective date is not mentioned in the
notification, date of issue of notification shall 17. Services by a person by way of conduct of any
be treated as effective date. Comment. is exempt from GST.
a) Religious Ceremony
a) True
b) Marriage Ceremony
b) False
c) Festival Ceremony
c) Maybe
d) Entertainment Ceremony
d) The situation is not possible
18. Services provided to the Central Government,
13. Is it necessary to deposit the tax collected
State Government or Union Territory or local
wrongly on the supply of goods or services
authority or a Governmental Authority by
exempted?
way of are exempt.
a) No,if he doesn’t want to claim ITC
a) In relation to any function entrusted to
b) Yes, it is compulsory a Panchayat under article 243G of the
c) No,it’s prohibited Constitution
d) None of these

36 |MCQon IndirectTax
 Exemptions

b) In relation to any’ function entrusted to a d) All of the above

A Block
Municipality under article 2 43 W of the
24. Transport of by rail are
Constitution
exempt from GST:
c) In relation to any function entrusted to a
Municipality under article 2 43 G of the a) Milk
Constitution b) Salt
d) Both (a) and (b) c) Defence equipments
d)All of the above
19. services by the Central
25. Services by way of warehousing of is
Government, State Government, Union
exempt from GST.
Territory or Local Authority are exempt from
GST. i) processed tea
ii) jaggery
a) Pure
iii) processed coffee
b) Sovereign
iv) rice
c) Government
a) (i) & (ii)
d) All
b) (iii)
20. Which of the following services is exempt? c) (iv)
a) Basic mail services d) all of the above
b) Speed post services
26. Which of the following services are exempt
c) Express parcel post services
21. Renting of residential dwelling for any from GST?
d) Life insurance services
purpose is exempt from GST. Comment. a) Services by an artist by way of a performance
a) Yes, it can be rented for usage of any in folk or classical art forms of painting/
purpose. sculpture making etc. with consideration
therefor not exceeding ` 1.5 lakh.
b) No, it should have been rented for
residential purpose only. b) Services by an artist by way of a performance
rented for in modern art forms of music/ dance/ theatre
c) No, it should have been
with consideration therefor not exceeding `
commercial purpose only.
rented for 1.5 lakh.
d) No, it should have been
c) Services by an artist by way of a performance
charitable purpose only.
in folk or classical art forms of music/
22. Following are the types of exemptions that dance/theatre with consideration therefor
can be issued: exceeding ` 1.5 lakh.
d) Services by an artist by way of a performance
a) Conditional exemption
in folk or classical art forms of music/ dance
b) Unconditional exemption
/ theatre with consideration therefor not
c) Absolute exemption
exceeding ` 1.5 lakh.
d) Both (a) & (c)
27. Which of the following services are exempt
23. Services by way of admission to under GST?
are exempt from GST. a) testing of agricultural produce
a) Museum b) supply of farm labour
b) National park c) warehousing of agricultural produce
c) Tiger reserve d) all of the above

MCQon Indirect Tax| 37

 Exemptions
A Block

28. Transportation of goods by are exempt a) Supply of goods or services or both

from GST. which attracts Nil rate of tax
i) road b) Non-taxable supply
ii) inland waterways c) Supply of goods or services or both
iii)goods transportation agency which are wholly exempt from tax under
iv) courier agency section 11 of the CGST Act or under section
6 of IGST Act
a) (i) & (ii)
b) (iii) & (iv) d) All of the above
c) (i) and (iv) 33. Which of the following are services exempt
d) (i)[except (iii) & (iv)] & (ii) from GST?

29. Transportation of by rail from Chennai to a) Services by an artist by way of a

Gujarat are exempt from GST. performance in folk or classical art forms
of painting/sculpture making etc. with
i)pulses
consideration therefor not exceeding `1.5
ii) military equipments lakh.
iii) electric equipments b) Services by an artist by way of a performance
iv)biscuits in modern art forms of music/ dance/theatre
a) (i) & (ii) with consideration therefore not exceeding
b) (i) & (iii) ` 1.5 lakh.
c) (ii) & (iv) c) Services by an artist by way of a performance
d) all of the above in folk or classical art forms of
music/ dance/theatre with consideration
30. Services by way of warehousing of is therefor exceeding ` 1.5 lakh.
exempt from GST. (i) processed tea (ii) jaggery
d) Services by an artist by way of a
(iii) processed coffee (iv) rice performance in folk or classical art forms of
a) (i) & (ii) music/ dance /theatre with consideration
b) (iii) therefor not exceeding ` 1.5 lakh
c) (iv)
34. Services by way of admission to
d) all of the above
are exempt from GST.
31. Which of the following services are not a) Museum
exempt from GST? b) National park
a) Yoga camp conducted by a charitable c) Tiger reserve
trust registered under section 12AA of the
d) All of the above
Income-tax Act,1961.
b) Servicesprovidedbybusinesscorrespondent 35. Warehousi
to the rural branch of a bank with respect to
ng of is exempt
Savings Bank Accounts
from GST.
c) Services provided by cord blood bank for
preservation of stem cells. 1) Rice.
d) Service provided by commentator to a 2) Minor forest produce
recognized sports body 3) Jaggery
4)Whole gram
32. An exempt supply includes-
a) 1), 2) and 4)
b) 1) and 3)
38 |MCQon IndirectTax
 Exemptions

c) 2), 3) and 4) canteen to in-patients as per diet

A Block
d) 3) prescribed by the hospital dietitian
c) Advertisement services provided by the
36. Transport of by rail are
hospital to a pharmaceutical company
exempt from GST:
for their asthma pump by displaying it
a) Milk prominently in the hospital building
b) Salt d) All of the above
c) Defence equipments
40. Kesar Maharaj, a registered supplier, gave a
d) All of the above classical dance performance in an auditorium.
37. Which of the following is treated as exempt The consideration charged for the said
supply under the CGST Act, 2017? performance is ` 1,60,000. Such performance
is not for promotion of any product/services.
a) Sale of liquor
Rate of CGST and SGST on such services is
b) Supply of health care services
9% each. Assuming the services supplied by
c) Supply of electricity him to be intra‐State supplies, which of the
d) All of the above following statements are true?
38. Which of the following is a recognised system a) GST liability of Kesar Maharaj is Nil as
of medicine for the purpose of exemption for services provided by him are exempt.
health care services? b) Kesar Maharaj is liable to pay CGST
and SGST of ` 14,400 and `14,400
a) Allopathy
respectively.
b) Unani
c) Kesar Maharaj is liable to pay CGST and
c) Siddha
SGST of ` 900 and ` 900 respectively.
d) All of the above
d) None of the above.
39. Which of the following services is exempt
41. GST for Renting of agro machinery will be
under health care services provided by clinical
establishments? a) @ 5%
b) @ 12%
a) Chemist shop in the hospital selling c) @ 18%
medicines to public at large d) Exempted from GST
b) Food supplied from an outsourced
A n s we r s
1 c 2 d 3 a 4 a 5 b 6 c
7 a 8 d 9 d 10 b 11 b 12 a
13 b 14 d 15 c 16 a 17 a 18 d
19 d 20 a 21 b 22 d 23 d 24 d
25 c 26 d 27 d 28 d 29 a 30 c
31 d 32 d 33 d 34 d 35 a 36 d
37 d 38 d 39 b 40 b 41 d

MCQon Indirect Tax | 39

 Exemptions
A Block

MATCC TCE FOLLOo ING

Column A Column B
1 Burden of GST borne by A Related person
2 Acupressure treatment B Exempted from GST

3 Plantation of coffee C Zero rated tax

4 Persons member of same family D Taxable
5 Services by Court or Tribunal E Taxable supply of services
F Non taxable supply
G Final consumer
[Answer : G, E, B, A, F]

TRME OR FALSE
1. IGST enacted by the respective State Government.
2. GST offers comprehensive and continuous chain of tax credit.
3. Tour conducted through luxury trains are covered as Tour Operators Service.
4. GST payable for cultivation of ornamental flower.
5. A supply of goods or services or both which is liable to tax under GST Act is taxable supply.

[Answer: 1. False, 2. True, 3. True, 4. False, 5. True]

FILL INTCE BLANKS

1. is to make recommendation to the Central Government and the State
Government on tax rate.
2. Residential house takes on rent for commercial purpose is supply.
3. Services by way of sponsorship of sporting event organized by a national sports federation where
GST is .
4. Service by way of right to admission to a theatrical performance is taxable under GST Act if the
consideration is more than .
5. Electronics Commerce Operator mean any person who own, operate or manage or
facility or platform for electronics commerce.

[Answer : GST Council, taxable, exempted, ` 500, digital , electronic]

40 |MCQon IndirectTax
Block - B
Time, Value and
Place o f Supply
 Input Tax Credit

Chapter 6
Input Tax C r e d i t
MMLTIPLE CCOICE QMESTIONS
1. Input tax credit is available only when the d) The time when asset is capitalized in books

B Block
purchase made is used in
a) the course or furtherance of business 6. Whether credit on inputs should be availed
b) Other than business expenses based on receipt of documents or receipt of
c) Both (a) & (b) goods?
d) None of the Above a) Receipt of Goods
2. Availability of Input Tax Credit shall be b) Receipt of Documents
considered only c) Both
a) On receipt of goods d) Either Receipt of documents or receipt of
b) On payment of taxes paid by supplier to goods
Govt.
7. The time limit to pay the value of supply with
c) Taken to manufacturing site or availed taxes to the supplier to avail the input tax
services
credit is .
d) Both (a) & (b)
a) Three months
3. Input Tax Credit on the purchase of any capital b) Six months
credits can be availed in:
c) 180 Days
a) First instance d) Till the date of filling of annual return.
b) Partly five equal instalments
c) 50% in year of procurement & balance in 8. ITC avoids the
next year a) Cascading effect
d) None of the Above b) Compliance burden
c) Working capital usage
4. Can the taxable person under Composition
Scheme claim input tax credit d) Difficulty in operating business

a) Yes 9. Input tax means:

b) No a) CGST
c) Only in some cases b) SGST/UTGST
d) Can’t say c) IGST
5. Whether credit on capital goods can be taken d) All of the above
immediately on receipt of the goods? 10. Which of the following are covered in the
a) Yes definition of input tax?
b) No (i) Tax paid under RCM
c) After usage of such capital asset (ii) IGST on imports

MCQon Indirect Tax | 43

 Input Tax Credit

(iii) Taxes on composition levy d) (i), (ii), (iii) & (iv)

(iv) CGST 16. The input tax credit on purchase invoice
Mark the correct option: dated 2nd July 2017 was omitted to be taken.
a) (i) & (ii) The accountant realized this mistake on 1st
b) (i), (ii) & (iv) December 2018. Can he now claim the credit?
c) (i), (ii) & (iii) a) Yes
d) All of the above b) No
11. ITC is eligible only when it is c) Yes, with permission of Jurisdictional
officer
B Block

a) Credited to the electronic cash ledger

b) Credited to the electronic credit ledger d) Maybe
c) Booked in the books of account 17. Mr. X, a registered person omitted to take
d) All of the above the ITC of the July 2017 month. He has filed
12. As per the GST Law, ITC shall be taken on the his GST annual return on 30th June 2018. By
basis of details mentioned in when he could have availed the ITC?

a) Form GSTR-1 a) 30th June 2018

b) Form GSTR-2 b) 20th October 2018
c) Form GSTR-3B c) 30th September 2018
d) Form GSTR-3 d) 31st July 2018

13. Bill of entry is issued in case of 18. Is the statement true or false: “The person
procuring supplies after October of that
a) Exports
financial year will get less than a year to take
b) Imports
the ITC on such procurement.”
c) Sale
d) Barter a) True
b) False
14. Is Input Service Distributor Invoice a valid
c) Partially correct
document for taking the ITC?
d) None of the above
a) Yes
b) No 19. If advance payment is made to a supplier, he
must issue & deposit the tax with the
c) Maybe
Government on such advance.
d) None of the above
15. Input can be availed if the following a) Payment voucher
particulars are mentioned in the invoice: b) Tax invoice
i GSTIN of supplier & recipient c) Receipt voucher
ii Place of supply d) Bill of entry

iii Tax amount 20.Mr. X placed an order with Mr. Y of 10,000

iv. Description of goods or services pcs on 1st January 2017 & the same order is
Which one is the correct option? to be received on last day of every month i.e.
a) (i), (ii) & (iv) 1,000 pcs per month shall be received in
next 10 months. When can Mr. X book the
b) (i) only
credit in his books and electronic ledger?
c) (i) & (iii) only

44 |MCQon IndirectTax
 Input Tax Credit

a) 28th February 2017 uploads invoices by 10th of the following

b) 31st October 2017 month, ITC can be availed by the recipient
c) 31st March 2017 even if goods are received later, but before
d) Proportionately with filing of return of same month.”
receipt of every
instalment a) Correct
b) Incorrect
21. Mr. X placed an order with Mr. Y in April c) Partially correct
2018. He has received the invoice & both of d) None of the above
them has duly filed the return along with the
necessary tax payment. But the goods were 26. Is ITC available in case goods are sent for job

B Block
received in May 2018. When can Mr. X claim work & received within the specified time
limit?
the credit?
a) Yes
a) April 2018
b) No
b) May 2018
c) Maybe
c) September 2018 d) Yes, with prior permission of the
d) Either (a) or (b) Jurisdictional officer
22. Mr. A of Delhi places an order with Mr. B of 27.Mr. A purchased goods from Mr. Y on 1st April
Delhi on 1st April 2018 and asks him to 2018 & fulfilled all the conditions for availing
deliver the goods to Mr. C of UP. The goods the ITC. He availed the credit in the April Month
get delivered to Mr. C on 3rd May 2018. Who i.e. in its GSTR-3B which was filed on 15th
shall be eligible to claim the credit on this May 2018. He made the payment to Mr. Y on
supplies? 31st December 2018. Answer the following
questions.
a) Mr.A
b) Mr.B Can recipient claim the credit even if he has not
made the payment to supplier within 180 days?
c ) Mr.C
a) Yes
d) Both (a) and (c)
b) No
23. In above question, in which month the eligible c) Irrelevant question
person book the credit in its electronic ledger? d) None of the above
a) April 2018 28. In above question, at what interest rate Mr. A
b) May 2018 needs to repay the credit wrongly availed?
c) September 2018 a) 18%
d) Either (a) or (b) b) 12%
24. In above question, what tax shall be levied on c) 24% p.a.
the supply? d) 12% p.a.
a) IGST 29. In above question, by when Mr. A was
b) CGST&UPGST supposed to make the payment in order to
c) CGST & Delhi GST avoid reversal of the credit?
d) Either (b) or (c) a) 28th September 2018
b) 12th October 2018
25. Is the below statement correct? c) 31st August 2018
“As a simplification process, if the supplier

MCQon Indirect Tax | 45

 Input Tax Credit

d) 31st December 2018 34. If the purchaser doesn’t pay the vendor
within 180 days, then he needs to add the
30. In above question, after making the payment
same in its output tax liability along with the
on 31st December, can Mr. A reclaim input tax
interest. From what date the interest is to be
credit?
calculated?
a) Yes
a) Date of availing the credit
b) No
b) Date of invoice
c) Maybe
c) Due date of the month’s return in which
d) Not allowed
purchase is made
B Block

31. In above question, is there any time limit for d) All of the above
reavailing the credit?
35. True or false - “ITC is available for every kind of
a) One month purchase made by the business.”
b) One year
a) True
c) 180 days
b) False
d) No time limit
c) Partially true
32. In above question, can the refund of interest d) None of the above
be claimed once the payment is made to the
36. As per the recent amendments in the
supplier?
CGST Act, ITC on Motor vehicles having the
a) Yes approved seating capacity of shall be
b) No allowed except in few cases.
c) Maybe
a) 13 persons or less including driver
d) None of the above
b) 13 persons or less excluding driver
33. Which of the following statement is correct? c) 12 persons
a) If purchaser fails to pay value along with d) Either (a) or (b)
tax amount to supplier within 180 days, 37. ITC on motor vehicles on its leasing, renting
then the ITC amount along with interest or hire is not allowed except
should be added to his output tax liability.
a) When used for making outward supply
b) If purchaser fails to pay value along with
of same category of goods or services
tax amount to supplier within 180 days,
b) When used for making outward supply of
then the ITC amount along with interest
different category of goods or services
should be reversed from the electronic
c) When making outward sale of such motor
ledger.
vehicles
c) If purchaser fails to pay taxable value to
supplier within 180 days, then the ITC d) None of the above
amount should be added to his output tax 38. Select the situations where the credit in case
liability. of vessels & aircrafts shall be allowed?
d) If purchaser fails to pay the tax amount a) Transportation of passengers
to supplier within 180 days, then the ITC b) Training on such vessel or aircraft
amount should be added to his output tax
c) Transportation of goods
liability.
d) All of the above

46 |MCQon IndirectTax
 Input Tax Credit

39. ITC on vessel or aircraft on its leasing, renting started & Mr. A was made liable to pay a tax of
or hire is not allowed except Rs. 1 crore along with the interest & penalty.
a) When used for making outward supply of For which of the following amounts Mr. A can
same category of goods or services claim ITC?
b) When used for making outward supply of a) Rs.1 crore
different category of goods or services b) Rs.1 crore & interest paid on it
c) When making outward supply as an c) Rs.1 crore,interest & penalty
element of composite/mixed supply d) No ITC shall be allowed
d) (a) & (c)
44. Mr. A purchased goods from Mr. C, a

B Block
40. Mr. A, a practicing Chartered Accountant, composition dealer worth Rs. 100,000. Since
purchased a car of Rs. 10 lacs in his firm name. Mr. C was trader so he was supposed to pay
He got his car insured. Will he be eligible to only fixed % of his turnover as his tax. The
claim the credit of the taxes paid on the car item so purchased was otherwise taxable at
insurance post the applicabilitv of CGST 12%. What is the amount of credit which Mr.
(Amendment) Act, 2018? A is eligible to take?
a) No a) Rs.990
b) Yes b) Rs. 12,000
c) Yes but restricted to 50% of taxes paid c) Rs. 1,000
d) None of the above d) Not eligible to claim credit
41. Mr. A, a practicing Chartered Accountant 45. ABC Pvt Ltd.is engaged in making Chocolates.
purchased 3 laptops each having tax element The company on Diwali, distributed the
of Rs. 25,000 in his firm name. Two laptops same chocolates to its employees. Can the
he utilised in his office whereas one laptop company claim ITC in respect to the inputs
he gifted to his sister. What is the amount of used in making such chocolates?
ineligible ITC? a) Yes
a) Rs. 25,000 b) No
b) Rs. 50,000 c) Maybe
c) Rs. 75,000 d) Company’s discretion
d) None of the above
46. True or false: A person cannot take ITC with
42.Mr. A, a non-resident taxable person respect to goods given as gifts or free samples.
bought goods from China for the trade fair a) True
to be organized in Delhi. At the customs, he b) False
paid IGST. Will he get the credit of the IGST
c) Partially correct
paid?
d) None of the above
a) Yes
47. True or false - “ITC in respect of food,
b) No
beverages, beauty treatment, health services
c) Maybe
or life insurance etc. shall be available post
d) Yes, with permission of Customs
amendment, where it is obligatory for an
43. GST Authorities raided Mr. A’s place of employer to provide to its employees under
business and found that tax has been evaded. any law for the time being in force.”
The proceedings under section 73 were
MCQon Indirect Tax | 47
 Input Tax Credit

a) True July 2017 for Rs. 10 lacs on which IGST was

b) False paid @ 18%. He availed the ITC & utilised the
c) Partially true capital goods. On 16th October 2018 he sold
d) None of the above the machinery as second hand goods for
Rs. 750,000. Calculate the amount of ITC that
48. ITC on travel benefits given to employees by needs to be paid.
the employer shall be allowed.Comment.
a) Rs.126,000
a) Correct b) Rs.135,000
b) Incorrect c) Either of (a) or (b)
B Block

c) ITC shall be allowed only when it is made

d) None of the above
compulsory by the law in force
53. ABC Pvt. Ltd. merges into XYZ Pvt. Ltd. Can the
d) None of the above
unutilised balance of ITC in ABC Pvt. Ltd. of Rs.
49. What should be the treatment of tax element 20 lacs be transferred to the electronic ledger
in a capital asset? of XYZ Pvt.Ltd.?
a) Capital the tax element & claim a) Yes
depreciation
b) No
b) Claim the ITC at first instance c) Not applicable
c) Either (a) or (b) d) Discretion of XYZ Pvt.Ltd.
d) Both (a) & (b)
50. ITC in respect to pipelines laid outside the 54. In above question, in which form
factory & telecommunication towers fixed the ITC can be transferred?
to earth by foundation or structural support a) ITC-01
including foundation & structural support are b) ITC-02
for the ITC. c) ITC-03
a) Eligible d) ITC-04
b) Not eligible
c) Eligible, with permission of Jurisdictional 55. Mr. A has crossed his threshold
officer limit on 10th July 2018. He has applied for
d) None of the above the registration on 15th July 2018. He
received his registration number on 20th July
51. In case of supply of capital goods by the
2018. From which date he becomes eligible
registered person on which ITC has been
to claim ITC on the stocks held by him?
claimed, then what amount of ITC needs to
be paid by the person? a) 10th July 2018
a) Amount equal to ITC reduced by certain b) 15th July 2018
percentage points c) 20th July 2018
b) Tax on transaction values of such capital 56. d) 19th July
In above 2018 which form needs to be
question,
goods as per valuation provisions filled by the person in order to avail the ITC?
c) Higher of (a) or (b) a) ITC-01
d) Lower of (a) or (b) b) ITC-02
c) ITC-03
52. ABC Pvt. Ltd. purchased a machinery on 15th
d) ITC-04

48 |MCQon IndirectTax
 Input Tax Credit

57. In above question, what is the time limit of filing institution or NBFC claim in case they provide
the form for carrying forward of the ITC unless both non-taxable & taxable supplies?
the same is extended by any notification? a) Entire amount of ITC can be claimed
a) 30 days from the date person is eligible to b) Avail 50% of the total ITC
claim ITC c) Segregate inputs used for taxable & non-
b) 60 days from the date person is eligible to taxable supplies & accordingly claim ITC
claim ITC d) Either (b) or (c)
c) 90 days from the date person is eligible to
62. Bank on 1st April 2018 has a credit of Rs.
claim ITC
150,000. It during the month of April supplied

B Block
d) None of the above certain exempted services & some taxable
58. Situations: services.What is the eligible amount of credit?
i. Health insurance of factory employees a) Rs. 150,000
ii. Work contract’s service used for installation b) Rs. 75,000
of plant & machinery c) Rs. 100,000
iii. Purchase of car used by director for the d) None of the above
business meetings only
63. “Capital goods are considered as inputs” -
Comment on the eligibility of the credit in Comment.
below mentioned cases.
a) Correct
a) Not eligible, eligible, not eligible
b) Partially correct
b) Not eligible, not eligible, not eligible
c) Incorrect
c) Eligible,not eligible and not eligible
d) Maybe
d) Eligible,eligible and not eligible
64. Can a taxable person who is not registered
59. Inputs are procured by Mr. A for his under the GST law be allowed to avail input
business and the same are being utilised in tax credit?
manufacturing of exempted as well as taxable
a) Yes
goods. How much ITC on such inputs can be
b) No
claimed?
c) Maybe
a) Full ITC to be claimed d) None of the above
b) Proportionate ITC to be claimed
65. Can input tax credit be allowed in the same
c) Rule 42 should be applied
month if the supplier has shown it as an
d) Rule 43 should be applied
outward supply even though the recipient
60. “Credit of ITC may be availed for making receives the goods in the next month?
zero rated supplies, even if such supply is an a) Yes
exempted supply.”- Comment. b) No
a) Correct c) Maybe
b) Incorrect d) None of the above
c) Partially correct
66. Whether Input tax credit on Inputs and
d) None of the above Capital Goods is allowed in one instalment?
61. How much credit can a bank or financial a) Yes

MCQon Indirect Tax | 49

 Input Tax Credit

b) No of Input tax paid on use of mobile phones/

c) Maybe laptops/as given to employees?
d) None of the above a) Yes
b) No
67. Section 16 provides for the conditions to
c) Maybe
claim credit. One such condition is that the
receiver has received the goods. Is there any d) None of the above
provision for deemed receipt of goods in 72. Whether the ITC will be available on a
case of transfer of document of title before or passenger vehicle having seating capacity of
during the movement of goods? 8 people & which is used for transportation of
B Block

a) Yes goods only?

b) No a) Yes
c) Maybe b) No
d) None of the above Hint: Bill to ship to c) Maybe
transactions d) None of the above
68. A person has a single GST registration in 73. Inputs sent for job work must be received
respect of two different trade names. Can he back within a period of
set off input tax credit from one trade name
a) 1 year
against the output tax liability of the other?
b) 2 year
a) Yes c) 180 days
b) No d) 6 months
c) Maybe
d) None of the above Hint: Set off to be done 74. Capital goods sent for job work must be
GSTIN wise received back within a period of
a) 1 year
69. What supplies are included in “exempt
b) 3 year
supplies” on which the ITC shall not be
c) 180 days
allowed?
d) 6 months
a) Supplies liable to tax under reverse charge
mechanism 75. Is principal entitled to take ITC even when
b) Transactions in securities the principal has not received the goods and
c)Sale of land directly sent to job worker by the vendor?
d) All of the above a) Yes
b) No
70. Comment - “Compliance of the provisions of
Section 17(2) regarding restriction of credits c) Maybe
relatable to exempt supplies is mandatory d) None of the above
to a Banking Company/Financial Institution 76. What is the maximum time limit to claim the
engaged in accepting deposits or extending Input tax credit?
loans.”
a) Actual date of filing annual return
a) Correct b) Due date of return of September month
b) Incorrect following the end of financial year
c) Partially correct c) Earliest of (a) or (b)
d) None of the above d) Later of (a) or (b)
71. Whether Input tax credit is available in respect

50 |MCQon IndirectTax
 Input Tax Credit

77. An assessee obtains new’ registration. It can 82. ITC cannot be availed by a person if
avail credit on inputs lying in stock. What is a) ITC relates to tax paid on goods received
the time limit for taking said credit? by agent
a) 1 year from the date of invoice b) ITC relates to tax paid in pursuance of any
b) 3 years from the date of registration demand u/s 73 or 74
c) 1 years from the date of registration c) ITC related to previous month inputs
d) None of the above d) None of above
78. Can the unutilized input tax credit be 83. The details of inward supply furnished by the
transferred in case of change in constitution registered taxable person shall be matched

B Block
of business? with-
a) Not possible a) Corresponding details of outward supply
b) No,it will be exhausted furnished by the corresponding taxable
c) Yes, it will be transferred only if there is person.
provision for transfer of liabilities b) Details on the ICEGATE
d) It will be transferred only if it is shown in c) Tax payment made by Supplier
books of Account of transferor d) All the above
79. The details of challans in respect of goods 84. Input tax credit on capital goods and inputs
dispatched to a job worker or received from can be availed in:
a job worker or sent from one job worker to a) thirty six instalment
another during a quarter shall be included in b) twelve instalment
FORM .
c) one instalment
a) ITC-03 d) six instalment.
b) ITC-04
85. Input Tax credit as credited in Electronic
c) GSTR-2
Credit Ledger can be utilized for:
d) None of above
a) Payment of interest
80. Provisional Input tax credit can be utilized b) Payment of penalty
against
c) Payment of fine
a) Any Tax liability d) Payment of taxes
b) Self-Assessed output tax liability
86. A supplier takes deduction of depreciation
c) Interest and Penalty
on the GST component of the cost of capital
d) Fine goods as per Income- tax Act, 1961.
81. ITC can be claimed on goods/services for The supplier can-
personal use if a) avail only 50% of the said tax component
a) Payment to supplier has been made within as ITC
180 days b) not avail ITC on the said tax component
b) All the returns have been filed by both the c) avail 100% ITC of the said tax component
persons d) avail only 25% of the said tax component
c) All of above as ITC
d) No ITC can be claimed

MCQon Indirect Tax | 51

 Input Tax Credit

87. Input tax credit is not available in respect of b) The person should have received the
. goods/services
a) services on which tax has been paid c) Tax charged on the purchases has been
under composition levy deposited/paid to the government by the
supplier
b) free samples
c) goods used for personal consumption d) All of the above
d) all of the above 93. Which of the following Input Tax credit (ITC) is
not available to the tax payer:-
88. For banking companies using inputs and
input services partly for taxable supplies a) ITC on Goods purchased for resale
B Block

and partly for exempt supplies, which of the b) ITC on Goods used for providing taxable
statement is true? services
a) ITC shall be compulsorily restricted to c) ITC on Goods used in making supplies out
credit attributable to taxable supplies of India
including zero rated supplies d) ITC on purchase of Motor vehicle for use
b) 50% of eligible ITC on inputs,capital goods, by director
and input service shall be mandatorily 94. In which of the following conditions the input
taken in a month and the rest shall lapse.
tax credit will be available?
c) Banking company can choose to exercise
a) Capital goods used for making exempted
either option (a) or option (b)
goods
d) None of the above
b) Capital goods used for exclusively
89. ITC of motor vehicles used for is non-business (personal) purpose
allowed. c) Depreciation has been claimed on tax
a) Transportation of goods component of capital goods
b) Transportation of passengers d) None of the above
c) Imparting training on driving 95. Compute the value of ‘exempted supply’ for
d) All of the above purpose of section 17(2) of the CGST Act,
90. Input Tax Credit of IGST can be utilised in the 2017 from the following details:
following sequence: (i) Value of alcoholic liquor for human
a) SGST/UTGST, CGST, IGST consumption: ` 1,50,000
b) IGST,CGST, SGST/UTGST (any order) (ii) Value of architect services supplied:
c) IGST,SGST/UTGST, CGST `2,00,000
d) CGST, SGST/UTGST, IGST (iii)Securities of face value of ` 1,00,000 sold
for ` 95,000
91. Input tax credit of CGST can be utilised for the
a) ` 1,50,000
following?
b) ` 2,50,000
a) For the payment of penalties
c) ` 2,45,000
b) For the payment of interest
d) ` 1,50,950
c) For payment of IGST
d) For payment of SGST ITC 96. (i) A software professional providing technical
consultancy buys a motorcycle for use of his
92. What are the prior conditions to claim input employee.
tax credit?
(ii) A motor driving school buys a car for being
a) Tax invoice or debit note should be used in imparting motor driving training.
available

52 |MCQon IndirectTax
 Input Tax Credit

(iii)A flying school imports an aircraft for 97. Kamlesh hires a works contractor for
use in its training activity. repairing his factory building on a lumpsum
(iv)A manufacturer buys a small truck for the payment of `11,80,000. He debits half of the
purpose of transporting its inputs and expenditure in the profit and loss account and
the remaining half in the building account.
finished goods.
Assuming the rate of GST to be 18%, Kamlesh
Input tax credit cannot be taken on: can take input tax credit of:
a) (iii) a) ` 90,000
b) (i), (ii), (iii), (iv) b) ` 1,06,200
c) (i) c) ` 2,12,400

B Block
d) (i), (iii) d) Nil
98. Krishna Motors is a car dealer selling cars of an international car company. It also provides
maintenance and repair services of the cars sold by it as also of other cars. Determine the amount
of input tax credit available with the help of the following information regarding expenses incurred
by it during the course of its business operations:
Particulars GST paid (`)

Cars purchased from the manufacturer for making further supply of such 20,00,000
cars. [Two of such cars are destroyed in accidents while being used for test
drive by potential customers. GST paid on their purchase is ` 1,00,000]
Works contract services availed for constructing a car shed in its premises. 50,000

a) ` 19,00,000 b) ` 21,10,000 c) ` 19,50,000 d) ` 20,50,000

99.Mr. Z trades in certain items which are a) GST is 12%

exempt and supplies certain items to SEZ b) GST is 18%
which are zero-rated. He wants to c) Exempted supply
understand which of the following will be d) Zero rated supply
included in computation of taxable supplies
101. In case goods disposed off by way of free
for purpose of availing input tax credit?
sample
a) Zero-rated supplies
a) recipient can claim ITC
b) Exempt supplies
b) Supplier can claim ITC
c)Both i.e., Zero-rated and exempt supplies
d) None of the above c) Supplier cannot claim ITC
d) ITC can be claimed if value is more than
100. For export of goods or services or both ` 500/-

MCQon Indirect Tax | 53

 Input Tax Credit

A n s we r s
1 a 2 d 3 a 4 b 5 a 6 c
7 c 8 a 9 d 10 c 11 b 12 b
13 b 14 a 15 d 16 b 17 a 18 a
19 a 20 b 21 b 22 d 23 b 24 c
25 b 26 a 27 b 28 a 29 a 30 a
31 d 32 b 33 a 34 a 35 b 36 a
37 a 38 d 39 d 40 a 41 a 42 a
43 d 44 d 45 a 46 a 47 a 48 c
B Block

49 c 50 b 51 c 52 b 53 a 54 b
55 a 56 a 57 a 58 a 59 c 60 a
61 d 62 b 63 c 64 b 65 b 66 a
67 a 68 a 69 d 70 b 71 a 72 a
73 a 74 b 75 a 76 c 77 a 78 c
79 b 80 b 81 d 82 b 83 d 84 c
85 d 86 b 87 d 88 c 89 d 90 b
91 c 92 d 93 d 94 d 95 d 96 c
97 d 97 a 99 a 100 d 101 c

54 |MCQon IndirectTax
 Place of Supply

Chapter 7
Place o f Supply
MMLTIPLE CCOICE QMESTIONS
1. What is the significance of Place of Supply d) Place of such installation

B Block
under GST?
6. Supplier in Haryana delivers goods in Haryana
a) The place of supply determines whether a itself. Such delivery was on direction of the
transaction is intra-State or inter-State. recipient who is in Delhi. The supply will be,
b) The place of supply determines the place
where the supplier is supposed to deliver a) Inter-State supply
his goods. b) Intra-State supply
c) The place of supply determines the c) Both (a) & (b)
location of the recipient of goods. d) None of above
d) All of above
7. Mr. A in Haryana delivers goods in Haryana
2. Import of goods into the territory of India itself to B. Such delivery was on direction of
shall be deemed to be, Z situated at Delhi, which of the following is
a) Intra-State supply true,
b) Inter-State supply
c) Inter-country supply a) A will charge IGST to Z
d) Inter-territory supply b) Z will charge IGST to B
c) Both (a) & (b)
3. The intra-State supply of goods shall not
include- d) None (a) & (b)
a) supply of goods to a SEZ developer 8. Normally, is recipient of service,
b) supply of goods by a SEZ Unit a) Person making payment
c) supplies made to a tourist u/s 15
b) Person receiving payment
d) All of above
c) Both (a) & (b)
4. Where the goods are assembled or installed d) None of above
at site, the place of supply shall be,
a) Place where the goods are procured from 9. Normally, is supplier of service,
b) Place where the transporter is located a) Person making payment
c) Place of such installation or assembly b) Person receiving payment
d) Registered location of the company c) Both (a) & (b)
5. What is the place of supply in case of d) None of above
installation of generator? 10. What is the place of supply of goods in case of
a) Place where movement of generator import in India?
initiated.
a) Warehouse at the custom port
b) Place of delivery b) Place of delivery after clearance of the
c) Address of the recipient mentioned in the goods
invoice

MCQon Indirect Tax | 55

 Place of Supply

c) Location of the transporter performed

d) Location of the importer d) Location of the company providing
services
11. What is the place of supply of goods in case of
export from India? 16. What is the place of supply of services in
a) Warehouse at the custom port cases of training and performance appraisal
b) Location of the vessel where the loading services where the recipient is unregistered?
takes place a) Location of the service recipient
c) Location of the transporter b) Location of the service provider
c) Location where the services are actually
B Block

d) Location outside India

performed
12. What is the place of supply of services in cases
d) Location of the company providing
directly relating to the immovable property?
services
a) Location at which immovable property is
located 17. What is the place of supply of services in case
of service provided by way of admission to an
b) Location of the service provider
event?
c) Location of the service recipient
d) Location of the owner of the property a) Location where the events are actually held
b) Location of the service provider
13. What is the place of supply of services in
c) Location of the service recipient
case where services directly relate to the
d) Location of the company providing
immovable property are provided by an
services
Indian service provider to a person in USA &
such property is situated in USA? 18. Which of the following is correct for, place of
a) Location at which immovable property is supply in case of ancillary services by way of
located assigning of sponsorship to organisation of a
cultural event?
b) Location of the service provider
c) Location of the service recipient a) If service provided to the registered person
d) Location of the owner of the property then location of such person.
b) If service provided to the unregistered
14. What is the place of supply of services in cases person then location where event is
of restaurants and catering services? actually held.
a) Location of the service recipient c) If the event is held outside India then
b) Location of the service provider location of the service recipient.
c) Location where the services are actually d) All of above is correct
performed
19. What is the place of supply of services by way
d) Location of the owner of the restaurant
of transportation of goods to a registered
15. What is the place of supply of services in person?
cases of training and performance appraisal a) Location of the registered person
services where the recipient is registered?
b) Location of the service provider
a) Location of the service recipient c) Location of the transporter
b) Location of the service provider d) Location where loading of transport
c) Location where the services are actually vehicle takes place

56 |MCQon IndirectTax
 Place of Supply

20. An unregistered person receives a service of 25. In case of mobile connection for
transportation of goods by courier, the place telecommunication & internet services
of supply for such transaction is, provided on post-paid basis, the place of
supply shall be the location of .
a) Location of the unregistered person
b) Location of the registered supplier a) The registered address of the supplier
c) Location where goods are handed over for b) The antenna used for communication
their transportation c) Billing address of the recipient of services
d) None of above on record of the supplier.
d) Address for payment of bill made for use
21. What is the place of supply in case of passenger

B Block
of such services.
transportation service to a registered person?
26. In case of mobile connection for
a) Location of the transporter
telecommunication & internet services
b) Location of the service provider provided on pre-payment basis, the place of
c) Location of the registered person supply where the service provided through
d) Location where the passenger boards the selling agent shall be the location of .
transport vehicle for a continuous journey. a) Selling agent on the record of the supplier
22. What is the place of supply by way of passenger at the time of supply
transport service to an un-registered person? b) Billing address of the recipient of the
services on the record of the supplier at
a) Location of the transporter
the time of supply
b) Location of the service provider
c) Place where such pre-payment is received
c) Address of the unregistered person
d) Location where the passenger boards the d) None of above
transport vehicle for a continuous journey. 27. In case of mobile connection for
telecommunication & internet services
23. What is the place of supply in case of services
provided on pre-payment basis, the place of
provided on board of a conveyance?
supply where the service provided by any
a) Location of the service recipient person to the final subscriber shall be the
b) Location of the service provider location of .
c) Location of first scheduled point of
a) Selling agent on the record of the supplier
departure of the conveyance
at the time of supply
d) Location where the passenger boards the
b) Billing address of the recipient of the
transport vehicle for a continuous journey.
services on the record of the supplier at
24. A company has installed an antenna to the time of supply
create a fixed telecommunication line for c) Place where such pre-payment is received
communication services to the customers. d) None of above
What will be the place of supply for such
28. In case of online information database access
communication services?
& retrieval services (OIDAR), the place of
a) Location where the antenna is installed supply shall be,
b) Location of the customers
a) Location of server from where such service
c) Location of the registered supplier is provided
d) None of above
b) Location of the service supplier
c) Location of the service recipient

MCQon Indirect Tax | 57

 Place of Supply

d) Location where payment for such service 33. A tour operator provides services to an Indian
is made tourist for tour and travelling outside of India
will be liable to pay GST. Comment
29. The place of supply of banking and other
financial services to any person shall be, a) Correct
a) The location of the recipient of services on b) Incorrect
the records of the supplier of services c) Liability will be GST plus tourism cess
b) The actual location of the recipient of the d) Liability will be GST plus custom duty.
services 34. A. IGST is applicable in case of import of
c) The location of the supplier of the services goods.
B Block

d) The location prescribed by the Reserve B. There are special circumstances in case of
Bank of India import where CGST & SGST are applicable
30. A. The place of supply of banking and other Comment on the above statements,
financial services to any person shall be a) A - Correct, B - Incorrect
the location of the recipient of services on b) A - Incorrect, B - Correct
the records of the supplier of services. c) Both A & B - Correct
B. In case where the location of the recipient d) Both A & B - Incorrect
of services is not on the records of the
35. In case of services supplied in respect of goods
supplier of services, the place of supply
which are required to be made physically
shall be location of the supplier of services.
available from a remote location by way of
Comment on the above statements,
electronic means, the place of supply shall be,
a) A - Correct, B - Incorrect
a) Location where services are actually
b) A - Incorrect, B - Correct
performed
c) Both A & B - Correct
b) Location where goods are situated at the
d) Both A & B - Incorrect
time of supply of service
31. What is the place of supply in case of insurance c) Location of the supplier of service
services provided to a registered person?
d) Location of the recipient of service
a) Location where payment for such service
is made 36. In case of services supplied to an individual,
which require the physical presence of the
b) Location of the service provider
recipient or the person acting on his behalf,
c) Location of the registered person
with the supplier for the supply of the service,
d) Address of the insurance agent
the place of supply shall be,
32. What is the place of supply in case of insurance a) Location where services are actually
services provided to a person other than a performed
registered person?
b) Location of the recipient of service
a) Location where payment for such service
c) Location of the supplier of service
is made
d) None of above
b) Location of the service provider
37. The place of supply of services supplied directly
c) Address of the insurance agent
in relation to an immovable property including
d) Location of the recipient of services on the
supply of accommodation by a hotel,guest house
records of the supplier
or club,shall be,

58 |MCQon IndirectTax
 Place of Supply

a) The location of recipient of the service short term (exceeding one month) or long
b) The location of the supplier of the service term, the place of supply shall be,
c) The location where payment for such a) The location of the supplier of the service
service is made b) The location of the recipient of the service
d) The location where the immovable c) The location where the transport vessel is
property is located stationed
38. In case of services supplied by a banking d) None of above
company, or a financial institution, or a non 42. The place of supply of services of
banking financial company, to account transportation of goods, other than by way of

B Block
holders in course of provision of services, the mail or courier u/s 13, shall be .
place of supply u/s 13 shall be
a) The location of the supplier of the service
a) The location of recipient of the service b) The location of the recipient of the service
b) The location of the supplier of the service c) The location the transportation vessel is
c) The location as prescribed by the Reserve loaded
Bank of India
d) The location of the destination of the goods
d) The location where payment for such
service is made 43. What is the place of supply of services provided
on boarding a conveyance during the course
39. A. In case of intermediary services like of a passenger transport operation?
commission agents, the place of supply
a) Location of the service recipient
shall be the location of the supplier of
b) Location of the service provider
service.
c) Location of first scheduled point of
B. In case of foreign commission agents departure of the conveyance
providing service to Indian Principal, the
d) Location where the passenger boards the
place of supply of service is outside India. transport vehicle for a continuous journey.
Comment on the above statements,
a) A - Correct, B - Incorrect 44. A. Residuary provision: Except in case of
specified services, the place of supply
b) A - Incorrect, B - Correct
of services shall be the location of the
c) Both A & B - Correct
recipient of service.
d) Both A & B - Incorrect
B. However, in case the location of the
40. In case of services consisting of hiring of recipient of service is not available in the
means of transport, including yachts but ordinary course of business, the place of
excluding aircrafts and vessels, upto a period supply shall be the location of the supplier
of one month. The place of supply shall be, of service.
a) The location of the supplier of the service Comment on the above statements,
b) The location of the recipient of the service a) A - Correct, B - Incorrect
c) The location where the transport vessel is b) A - Incorrect, B - Correct
stationed c) Both A & B - Correct
d) None of above d) Both A & B - Incorrect

41. In case of services consisting of hiring of 45. In order to prevent double taxation or
vessels or aircrafts, irrespective of whether non-taxation of the supply of an import or

MCQon Indirect Tax | 59

 Place of Supply

export service, or for the uniform application a) 14%

of rules, the shall have the power b) 40%
to notify any description of service or c) 26%
circumstances in which the shall be d) 30%
the place of effective use and enjoyment of
a service. 50. Does an e-commerce operator having no
physical presence in the taxable territory
a) State Government/place of supply
liable to pay tax? If yes, then how?
b) Central Government/place of supply
a) He will have to discharge his tax liability in
c) Government/place of supply
foreign currency
B Block

d) Central Government/time of supply

b) He will not be liable to tax
46. Uday in Haryana buys shares from a broker in c) He has to appoint a person in the taxable
Delhi on NSE (in Mumbai). What will be the territory for the purpose of paying tax on
place of supply? his behalf
a) Delhi d) None of the above
b) Mumbai 51. IGST shall be charged when
c) Haryana a) Place of supply & location of supplier is
d) Place of supply is not considered in trading same
of shares b) Place of supply & location of supplier is
47. In case of services supplied in respect of different
goods which are required to be made c) Place of supply & location of recipient is
physically available by the recipient of service same
to the supplier of service, the place of supply d) Place of supply & location of recipient is
different
shall be
a) Location where services are actually 52. A. Location of supplier is a place from where
performed a supply is made from a place of business
b) Location where goods are situated at the for which registration has been obtained,
time of supply of service the location of such place of business.
c) Location of the supplier of service B. Location of supplier is a place from
d) Location of the recipient of service where a supply is made from more than
one establishment, whether the place
48. True or false - “Inter-state movement of of business or fixed establishment, the
various modes of conveyance, carrying goods location of the establishment most
or passengers or for repairs and maintenance directly concerned with the provision of
is liable to IGST.” the supply.
a) True Comment on the above statements,
b) False a)A - Correct, B - Incorrect
c) Partially True b) A - Incorrect, B - Correct
d) None of the above c) Both A & B - Correct
d) Both A & B - Incorrect
49. What is the ceiling limit prescribed on the rate
under IGST Act? 53. Mr. A of UP provides services to a SEZ located
in UP.What type of tax shall be charged?

60 |MCQon IndirectTax
 Place of Supply

a) CGST b) Intra-State supply

b) SGST+UTGST c) Composite supply
c) IGST d) Imports
d) CGST+SGST/UTGST
59. What tax shall be levied in this transaction?
54. What is the POS in case the supply is made in a) CGST b) SGST+UTGST
territorial waters?
c) IGST d) CGST+SGST/
a) Location in territorial waters UTGST
b) Coastal State or Union territory where the
Case study (Q. 60 to 66)
nearest point of the appropriate baseline
Location of supplier: Mr. A of Delhi Delivery

B Block
is located
of goods terminates: Mr. C of Jaipur
c) Either (a) or (b) d) None of the
Location of recipient: Mr. B of Delhi
above
Goods have been delivered to Mr. C of
55. Which of the following is an inter-State Jaipur on direction by Mr. B to Mr, A.
supply?
60. What shall be the place of supply of
a) Supplier of goods located in UP and place
transaction between Mr. A & Mr. B?
of supply of goods is to an SEZ located in
Delhi a) Delhi
b) Supplier of goods located in UP and place b) Jaipur
of supply of goods in Jaipur c) Mumbai
c) Supplier of goods located in UP and place d) Either (a) or (b)
of supply of goods is to an SEZ located in
61. What is the nature of supply of transaction
UP
between Mr. A & Mr. B?
d) All the above
a) Inter-State supply
56. Which of the following is an intra-State b) Intra-State supply
supply? c) Composite supply
a) Supplier of goods located in UP and place d) Imports
of supply of goods SEZ located in Delhi
b) Supplier of goods located in Delhi and 62. What tax shall be levied in transaction
place of supply of goods in Jaipur specified in above question?
c) Supplier of goods located in Delhi and a) CGST
place of supply of goods in Delhi b) Jaipur GST+CGST
d) All the above c) IGST
Case study (Q. 57 to 59): d) CGST+ Delhi GST
Location of supplier: Mr. A of Delhi Delivery 63. What shall be the place of supply of
of goods terminates at: Jaipur Location of transaction between Mr. B & Mr. C?
recipient: Mr. B of Jaipur a) Delhi
57. What shall be the place of supply in this case? b) Jaipur
a) Delhi b) Jaipur c)Mumbai
c) Mumbai d) Either (a) or (b) d) Either (a) or (b)
58. What is the nature of supply? 64. What is the nature of supply of transaction
a) Inter-State supply between Mr. C & Mr. B?

MCQon Indirect Tax | 61

 Place of Supply

a) Inter-State supply Answer the following questions.

b) Intra-State supply 69. What shall be the Place of supply if Mr. A is a
c) Composite supply registered person?
d) Imports a) Delhi
65. What tax shall be levied in transaction b) Mumbai
specified in above question? c) Dubai
a) CGST d) New York
b) Jaipur GST+ CGST 70. What shall be the Place of supply if Mr. A is an
B Block

c) IGST unregistered person?

d) CGST+Delhi GST a) Delhi
66. Mr. A of UP purchased the goods from the b) Mumbai
shop Mr. C in Delhi. What shall be the place c) Dubai
of supply? d) New York
a) UP 71. Palace on wheels, a train running from
b) Delhi Jaipur to Kanyakumari, provides on-board
c) Either (a) or (b) entertainment services to its passengers. Mr.
d) None of the above A boarded the train from Madhya Pradesh &
started watching a movie when the train was
67. If Mr. A of Jaipur, is constructing a house in
crossing Karnataka. What shall be the place of
Goa and appoints Mr C of Delhi to provide
supply?
architectural services with regard to proposed
construction of house located in Goa, then a) Jaipur
the place of supply shall be b) Kanyakumari
a) Goa c ) Madhya Pradesh
b) Jaipur d) Karnataka
c) Delhi 72. Mr. B of Delhi goes to bank in Bangalore not
d) All of above can be the Place of supply having an account with the bank to take a
demand draft, the place of supply shall be
68. Mr. X, a resident of Delhi, goes to a doctor Mr.
B of Bangalore for plastic surgery who took
him to a hospital in Mumbai & got his surgery a) Bangalore
done over there. The place of supply will be b) Delhi
c) Both (a) & (b)
a) Bangalore d) Either (a) or (b)
b) Delhi 73. If XY Bank in USA charges loan processing
c) Mumbai charges to AB Co. located in Delhi, India, the
d) All of above can be the Place of supply place of supply of service will be
a) USA
Case study (Q. 69 & 70)
Mr. A based out of Delhi, purchases b) Delhi
air ticket from Airlines Ltd., an airline c) India
company based out of Chennai, for travel d) None of the above
from Mumbai to NEo YORK via Dubai.

62 |MCQon IndirectTax
 Place of Supply

74. Which of the following are an example of 79. IGST in case of imports shall be levied on
online database access retrieval services? value determined under
a) Advertising on the internet a) Section 3 of Customs Tariff Act
b) Providing cloud services b) Section 15 of CGST Act
c) Provision of e-books, movie, music, c) Section 11 of IGST Act
software and other intangibles via d) Any one of the above options
telecommunication networks or internet
80. Comment: GST is leviable when place of
d) All of above
supply is outside India.
75. Real estate agent in Delhi charges brokerage a) Correct

B Block
fee to Company A located in Chandigarh for
b) Incorrect
assistance in getting a commercial property
c) Partially correct
in Kolkata. Which is the place of supply in this
case? d) None of the above

a) Delhi 81. M/s ABC is having 2 SEZ in State of UP. One

b) Chandigarh of these SEZ sends goods to another SEZ on
1st April 2018. What tax shall be chargeable
c) Kolkata
on such supply?
d) None of the above
a) IGST
76.Mr. X a resident from Pune conducts
b) CGST + UP GST
training for employees of P Ltd. being a
c) Self-supply is no supply
registered person under GST based out in
Chennai at a resort in Darjeeling. The place d) None of the above
of supply in this case is: 82. “India” means the territory of India as ref erred
a) Chennai to in of the Indian Constitution.
b) Pune a) Article 1
c) Darjeeling b) Article 366
d) None of the above c) Article 4
d) Article 5
77. The basic principle behind the provisions
relating to place of supply is that GST is a 83.
a) Warehouse
a) Destination based tax b) Godown
b) Origin based tax c) Any place where the person stores goods
c) Both (a) & (b) d) All of the above
d) None of the above
84. Fixed establishment means
78. Which Constitutional article allows the
a) Registered place of business
Parliament to formulate principles in respect
b) Other than registered place of business
to place of supply & supply in course of
interstate commerce? c) Both (a) & (b)
d) None of the above
a) Article 269A(2)
b) Article 270 85. Fixed establishment is characterised by:
c) Article 275 A. Sufficient degree of permanence
d) Article 279A B. Suitable structure in terms of human &

MCQon Indirect Tax | 63

 Place of Supply

technical resources a)Service recipient

C. To supply services or receive & use services b) Service provider
for its own needs c) Immovable property
Which is the correct option. d) Either (a) or (b)
a) A & B are correct
91. Comment: Return journey will be treated as a
b) A, B & C are correct
separate journey, even if right of passage for
c) B & C are correct onward & return journey is issued at the same
d) None of the statements are correct time.
86. of supply of service cannot be location a) Correct
B Block

of supplier of service or recipient of service b) Partially correct

a) Permanent place c) Incorrect
b) Temporary place d) None of the above
c) Fixed establishment
92. Tour operator providing service to Indian
d) Registered establishment tourist outside India is to pay GST.
Case study (Q. 87 to 89)
a) Liable
Mr. B, director of XYZ Pvt. Ltd., registered
in Delhi went for 2 days official seminar in b) Not liable
Mumbai. Ce booked a hotel in Mumbai & c) Optional
provided the company’s GSTIN. d) None of the above

87. What shall be the place of supply? 93. Comment: One of the conditions to qualify
a) Delhi as export of service is that the supplier of
service & recipient of service are not merely
b) Mumbai
establishments of a distinct person in
c) Either (a) or (b)
accordance with Explanation 1 of section 8 of
d) None of the above
IGST Act.
88. What tax shall be levied on this supply? a) Correct
a)Delhi GST + CGST b) Partially correct
b)Mumbai GST + CGST c) Incorrect
c) IGST d) None of the above
d) CGST + UTGST
94. Mr. Sunil from Delhi provides interior
89. Will XYZ Pvt. Ltd. get the credit of the taxes designing services to Mr. Sanjay (Mumbai).
paid to the hotel? The property is located in Ooty (Tamil Nadu).
a) Yes What will be the place of supply?
b) No a) Delhi
c) Maybe b) Mumbai
d) Yes, with permission of Jurisdictional c) Tamil Nadu
Commissioner d) None of the above
90. When both, the service recipient & provider 95. A service as a part of contract is provided in
are of India, then the place of supply shall be Delhi, Paris, Sweden & USA. What shall be the
the location of if immovable property place of supply?
is located outside India.

64 |MCQon IndirectTax
 Place of Supply

a) Delhi 101. What tax shall be levied?

b) Paris a) Jaipur GST + CGST
c) Sweden b) Mumbai GST + CGST
d) USA c) Delhi GST + CGST
d) IGST
96. In above question, will the entire amount be
liable to GST? 102.Which of the following services is not
a) Yes included under Online Information and
Database Access or Retrieval (OIDAR)?
b) No
c) No, only amount in respect to services a) Advertising on the internet

B Block
provided in Delhi shall be liable to tax b) Providing cloud services
d) No idea c) Digital data storage
d) Advertising services in newspapers.
Case study (Q. 97 to 101)
XYZ, a modelling agency, registered in 103.Place of supply of goods where the supply
doesn’t involve movement of goods...........?
Mumbai having 20 models entered into
a contract for beauty treatment of their a) Location of the goods at the time of
models with Lakme Studio in Delhi but purchase order
the beauty treatment was done before a b) Location of the goods at the time of
fashion show in the city of Jaipur. delivery to the recipient
c) Location of the supplier
97. Who is the supplier of service? d) Location of the recipient
a) XYZ 104.Mr. P (from Delhi) meets an architect Mr.
b) Lakme Studio Y (from Mumbai) at a hotel in Chennai. Mr.
c) Models Y gave a presentation of his recent interior
d) None of the above constructions and Mr. P likes his work. Soon
after the meeting, Mr. P awarded him the
98. Who is the service recipient? contract to furnish his recently purchase raw
a) XYZ house in Dubai. Mr. Y furnishes his Dubai
b) Lakme Studio house and asks you the place of supply of
service in this case?
c) Models
d) None of the above a) Delhi
b) Mumbai
99. What is the place of supply? c) Chennai
a) Mumbai d) Dubai
b) Delhi
105.Mr. X booked a train from Delhi to
c) Jaipur Mumbai for his son’s anniversary. During the
d) Either of above travel, Mr. A supplies catering service to Mr.
X. What will be the place of supply in this
100. What kind of supply is this?
case?
a) Inter state
a) Place of supply will be Delhi
b) Intra state
b) Place of supply will be Mumbai
c) Composite supply
c) Place of supply will be the actual location
d) Mixed supply where the catering service is discharged
during travel
d) Any one of the above
MCQon Indirect Tax | 65
 Place of Supply

106. What will be the place of supply in case of (c) From where the order receive
catering services (d) Location where the services are actually
(a) Registered office of the catering services performed
(b) Where cooking is done

A n s we r s
1 a 2 b 3 d 4 c 5 d 6 a
7 c 8 a 9 b 10 d 11 d 12 a
B Block

13 a 14 c 15 a 16 c 17 a 18 d
19 a 20 c 21 c 22 d 23 c 24 a
25 c 26 a 27 c 28 c 29 a 30 c
31 c 32 d 33 a 34 a 35 b 36 a
37 d 38 b 39 c 40 a 41 b 42 d
43 c 44 c 45 c 46 c 47 a 48 b
49 b 50 c 51 b 52 c 53 c 54 b
55 d 56 c 57 b 58 a 59 c 60 a
61 b 62 b 63 b 64 a 65 c 66 b
67 a 68 c 69 a 70 b 71 a 72 a
73 a 74 d 75 c 76 a 77 a 78 a
79 a 80 a 81 a 82 a 83 d 84 b
85 b 86 b 87 b 88 b 89 b 90 a
91 a 92 a 93 a 94 c 95 a 96 a
97 b 98 a 99 c 100 a 101 d 102 d
103 b 104 a 105 a 106 d

66 |MCQon IndirectTax
 Time of Supply

Chapter 8
Time o f Supply
MMLTIPLE CCOICE QMESTIONS
1. Which section governs the provisions regard- are given

B Block
ing determining time of supply of goods? d) Both (b) and (c) are correct
a) Section 12 6. Who is the recipient in case,the consideration
b) Section 13 is payable for the supply of service?
c) Section 14
a) Person liable to pay consideration for such
d) Section 15 service
2. Which section governs the provisions b) Person to whom the service is rendered
regarding determining time of supply of c) Either of (a) and (b)
services? d) Service recipient shall always be the
a) Section 12 person paying consideration.
b) Section 13
7. Who is the recipient in case,the consideration
c) Section 14
is not payable for the supply of service?
d) Section 15
a) Person liable to pay consideration for such
3. The time of supply fixes the point when the service
to/of GST arises. b) Person to whom the service is rendered
a) liability c) Either of (a) and (b)
b) payment d) Service recipient shall always be the
c) provision person paying consideration.
d) recovery
8. Reverse charge means the liability to pay tax
4. Who is the recipient in case,the consideration by the of goods or services or both
is payable for the supply of goods? instead of the of such goods or services
a) Person liable to pay consideration for such or both.
goods a) Recipient, Supplier.
b) Person to whom goods are delivered b) Recipient, Agent.
c) Person to whom the possession of goods
c) Supplier,Recipient
are given
d) Agent, Recipient
d) Both (b) and (c) are correct
9. What is the time of supply of goods, in case of
5. Who is the recipient in case,the consideration
is not payable for the supply of goods?
forward charge?

a) Person liable to pay consideration for such a) Date of issue of invoice

goods b) Due date of issue of invoice
b) Person to whom goods are delivered c) Date of receipt of consideration
c) Person to whom the possession of goods d) Earlier of (a) or (b)

MCQon Indirect Tax | 67

 Time of Supply

10. What is the date of receipt of payment? the date of issue of invoice by the supplier
a) Date on which payment is entered in the d) Earlier of (a) or (b) or (c)
books of account
15. On 04-09-2018, supplier invoices goods
b) Date on which payment is credited to the
taxable on reverse charge basis to AB & Co. AB
bank account
& Co. receives the goods on 12-09-2018 and
c) Earlier of (a) or (b)
makes payment on 30-09-2018. Determine
d) Either of (a) or (b)
the time of supply,
11. A purchase order with advance of ` 1,25,000
a) 04-09-2018
is received on 15-07-2017 for machine worth
b) 03-10-2018
B Block

`25,00,000 and entry duly made in the seller’s

books of account. On 25-07-2017 the machine c) 12-09-2018
is assembled, tested at sight, and accepted by d) 30-09-2018
buyer. Invoice is raised on 30-08-2017 and
16. is an instrument where there is an
balance payment of ` 23, 75,000 is received
obligation to accept it as a consideration for
on 10-09-2017.What would be the time of
supply of goods or services.
supply ?
a) 15-07-2017 a) Voucher
b) 25-07-2017 b) Payment receipt
c) 30-08-2017 c) Promissory note
d) 10-09-2017 d) Cheque
12. For amount received in excess of in 17. What is the time of supply of vouchers when
case of goods, time of supply at the option of the supply with respect to the voucher is
supplier, be taken to be the date of invoice. identifiable?
a) `100 a) Date of issue of voucher
b) `1000 b) Date of redemption of voucher
c) `500 c) Earlier of (a) & (b)
d) `10,000 d) (a) and (b) whichever is later
13. Determine the amount of GST in case of 18. ABC Ltd. has purchased for its customers 50
supply of service of `15,00,000 on 04-09-2018 vouchers dated 20-08-2018 worth `100 each
and invoice has been issued on 31-08-2018. from XYZ Ltd., a footwear manufacturing
The date of payment is 08-09-2018. The CGST
company.The vouchers were issued by XYZ Ltd.
rate has been increased from 5% to 12% w.e.f.
on 20-09-2018. The vouchers can be encashed
01-09-2018.
at retail outlets of XYZ Ltd. The employees of
a) `1,80,000 ABC Ltd. encashed the same on 01-10-2018.
b) `1 Determine the time of supply of vouchers.
c) `75,000
a) 20-08-2018
d) `1,20,000
b) 20-09-2018
14. What is the time of supply of goods liable to c) 01-10-2018
tax under reverse charge mechanism?
d) Supply is not identified
a) Date of receipt of goods
19. What is the time of supply of vouchers when
b) Date on which the payment is made
the supply with respect to the voucher is not
c) Date immediately following 30 days from

68 |MCQon IndirectTax
 Time of Supply

identifiable? 24. What is the time of supply of service if the

a) Date of issue of voucher invoice is issued within 30 days from the date
b) Date of redemption of voucher of provision of service?
c) Earlier of (a) & (b) a) Date of issue of invoice
d) (a) and (b) whichever is later b) Date on which the supplier receives
payment
20. Ms. Reeta purchased a gift voucher (it can
c) Date of provision of service
be redeemed against any product of the
d) Earlier of (a) and (b)
departmental store) from a departmental
store worth `2000 on 30-07-2018 and gifted it 25. What is the time of supply of service if the

B Block
to her friend on the occasion of her marriage invoice is not issued within the period
on 05-08-2018. Her friend encashed the same prescribed?
on 01-09-2018 for purchase of a cosmetic a) Date of issue of invoice
product. Determine the time of supply. b) Date on which the supplier receives
a) 30-07-2018 payment
b) 05-08-2018 c) Date of provision of service
c) 01-09-2018 d) Earlier of (b) and (c)
d) Supply is identified
26. Date of receipt of advance is the time of
21. What is the time of supply of goods in supply in case of advance received for supply
residuary cases, in case where a periodical for services especially when the invoice &
return has to be filed? provisioning of service is done post advance
a) Date on which return is to be filed receipt. Comment.
b) Actual date of filing of return a) True
c) Date of payment of tax b) False
d) Date of collection of tax c) Partially correct
d) None of the above
22. What is the time of supply in residuary cases
i.e., in all the remaining cases where periodical 27. Continuous supply of services means a supply
return is not to be filed? of services which is provided, or agreed to be
a) Date on which return is to be filed provided, continuously or on recurrent basis,
b) Actual date of filing of return under a contract, for a period exceeding
c) Date of payment of tax with payment obligations.
d) Date of collection of tax a) 1 year, annual
23. What is the time of supply in case of addition in b) 3 months, periodic
the value by way of interest,late fee or penalty c) 6 months, half yearly
or any delayed payment of consideration? d) 1 year, periodic
a) Last date on which such late fees/penalty 28. What is the maximum time limit for issue
has been charged of tax invoice in case of insurance service
b) Date of payment of such additional providers and banks?
amount
a) 30 days
c) Date of collection of whole amount
b) 45 days
d) It doesn’t constitute supply.

MCQon Indirect Tax | 69

 Time of Supply

c) At the time when supply ceases a) When the goods have been supplied
d) At the time when supply started before the change in rate of tax but issue
of invoice and receipt of payment is after
29. What is the time of supply of service in case
the change in rate of tax.
of an associated enterprise receives services
b) When the goods have been supplied
from the service provider located outside
after the change in rate of tax but issue of
India?
invoice and receipt of payment is before
a) Date of entry in the books of account of the change in rate of tax.
associated enterprise(recipient)
c) When the supply of goods and issue of
B Block

b) Date of payment invoice has been done before the change

c) Earlier of (a) or (b) in rate of tax but receipt of payment is
d) Date of entry in the books of the supplier after the change in rate of tax.
of service d) When the supply of goods and receipt
30. What is the time of supply of service for the of payment has been done before the
supply of taxable services up to `1000 in change in rate of tax but issue of invoice is
excess of the amount indicated in the taxable after the change in rate of tax.
invoice? 34. In which of the following situations, ‘Old rate’
a) At the option of the supplier- Invoice date shall be applicable?
or date of receipt of consideration a) When the goods have been supplied
b) Date of issue of invoice before the change in rate of lax but issue
c) Date of receipt of consideration of invoice and receipt of payment is after
d) Date of entry in the books of account the change in rate of tax.
b) When the goods have been supplied
31. Mr. X has received the payment, but has not
after the change in rate of tax but issue of
deposited the cheque in the bank account,
invoice and receipt of payment is before
what is the date of receipt of payment?
the change in rate of tax.
a) Date of receipt of payment c) When the supply of goods and issue of
b) Date of credit in the bank account invoice has been done after the change in
c) Date on which payment is entered in the rate of tax but receipt of payment is before
books of account of the supplier the change in rate of tax.
d) Earlier of (b) and (c) d) When the supply of goods and receipt of
payment has been done after the change
32. Which section governs the provision for
in rate of tax but issue of invoice is before
determining time of supply in case of change
the change in rate of tax.
in rate of tax?
a) Section 12 35. In case of continuous supply of goods, the
b) Section 13 invoice should be issued before or when the
.
c) Section 14
d) Section 15 a) Goods are supplied
b) Cheque is issued
33. In which of the following situations,‘New rate’
c) Statement of accounts or payments is
shall be applicable?

70 |MCQon IndirectTax
 Time of Supply

received c) Either (a) or (b)

d) Statement of goods supplied d) None of the above
36. What shall be the due date to issue invoice in 40. Where goods are packed and transported
case of supply of goods? with insurance, the supply of goods, packing
a) Any date before or at the time of removal materials, transport and insurance is a
of goods composite supply and supply of goods is the
principal supply. Which section will govern
b) Date of receipt of advance
the time of supply provisions in this case?
c) Date of provision of goods
a) Section 12

B Block
d) None of the above
b) Section 13
37. What will be the time of supply where multiple
c) Section 14
invoices are issued for a single consignment
d) Section 15
involving supply of goods?
a) Time of supply of each invoice to be 41. means a supply of goods which
calculated separately is provided, or agreed to be provided,
continuously or on recurrent basis, under
b) Time of supply of first invoice shall be
a contract, whether or not by means of a
applied for remaining invoices
wire, cable, pipeline or other conduit, and
c) Time of supply to be determined as per
for which the supplier invoices the recipient
the discretion of supplier
on a regular or periodic basis and includes
d) None of the above
supply of such goods as the Government
38.Mr. A being registered taxable person may, subject to such conditions, as it may, by
procures goods (waste & scrap) in auction notification, specify.
from CTD of Govt, of Maharashtra. The a) Composite supply
chronology of events are as follows:
b) Mixed supply
Date of receipt of goods by Mr. A: 24.09.2018 c) Continuous supply of goods
Date on which the payment is entered in the d) None of the above
books of account of Mr. A: 21.09.2018
42. What provisions would be applied in finding
Date on which payment is debited in the bank
the time of supply in case of works contracts?
account of Mr. A: 22.09.2018
What shall be the Time of supply? a)Section 12
a) 24.09.2018 b) Section 13
b) 21.09.2018 c)Section 14
c) 22.09.2108 d) Section 15
d) None of the above 43. What shall be the time of supply where
services are supplied online?
39. In composite supply, the principal supply is
supply of goods whereas the ancillary supply a) No separate provision for the online supply
is supply of services. Which provision shall of services
apply in respect of time of supply? b) Section 13
a) Time of supply of service c) Both (a) & (b)
b) Time of supply of goods d) None of the above

MCQon Indirect Tax | 71

 Time of Supply

44. If 95% of the work is complete before the the late fees due on Mr. A?
change in rate of tax but invoice can be raised a) September 2018
only after completion of supply, then what is b) October 2018
the rate of tax to be applied?
c) Time of supply has not arisen
a) New tax rate d) None of the above .
b) Old tax rate
49. The time of supply of service in case of reverse
c) Either (a) or (b)
charge mechanism is
d) None of the above
a) Date on which payment is made to the
45. The relaxation of non-payment of taxes on
B Block

supplier
the advance receipt is only to the supplier of b) Date immediately following 60 days from
goods & not to the providers of service. the date of issue of invoice
a) Correct c) Date of invoice
b) Incorrect d) Earlier of (a) and (b)
c) Partially correct
50. Mr. Rahu is receiving legal services from a
d) None of the above lawyer Mr. Ketu. The information regarding
46. in relation to any goods or services date of payment, invoice etc. is as follows-
or both, shall mean the person supplying 1. Invoice issued by Mr. Ketu on 15-Apr-20XX
the said goods or services or both and shall 2. Payment received by Mr. Ketu on 5-May-
include an agent acting as such on behalf 20XX
of such supplier in relation to the goods or 3. Date of payment entered in books of
services or both supplied; accounts of Rahu: 1-May-20XX
a) Supplier What is time of supply of services?
b) Receiver a) 1-May-20XX
c) Recipient b) 5-May-20XX
d) Person making payment c) 14-Jun-20XX
47. The time of supply to the extent it relates to d) 15-Apr-20XX
an addition in the value of supply by way of 51. The time of supply of service in case of reverse
interest, late fees or penalty for shall be charge mechanism is
the date on which the supplier receives such
a) Date on which payment is made to the
additional amount,
supplier
a) Delayed payment of consideration b) Date immediately following 60 days from
b) Timely payment of consideration the date of issue of invoice
c) Advance payment of consideration c) Date of invoice
d) None of the above d) Earlier of (a) and (b)
48. Mr. A entered into a contract with Mr. C 52. In case of supply of goods for `5,00,000,
& agreed to make the payment by 30th following information is provided-
September 2018. If the payment is not made 1.Advance received on 1-Apr-20XX
in time, then he shall pay late fees @ `100/day. 2.Invoice issued on 15-Apr-20XX
No payment of late fees has been made so far.
3.Goods removed on 25-Apr-20XX
What shall be the time of supply in respect of

72 |MCQon IndirectTax
 Time of Supply

What is the time of supply of goods? Roy & Bansal Ltd. The payment is made by Roy
a) 1-Apr-20XX & Bansal Ltd. by a demand draft sent on 25th
b) 15-Apr-20XX February, 2017 which is received and entered
in the accounts of Best Info on 28th February,
c)25-Apr-20XX
2017. Best Info encashes the demand draft
d) 30-Apr-20XX and thereafter,gives access to the database to
53. Mr. Sham is receiving legal services from a Roy & Bansal Ltd from 3rd March, 2017. In the
lawyer Mr. Gyan. The information regard- ing meanwhile, the rate of tax is changed from
date of payment, invoice etc. is as follows- 1st March 2017. What is the time of supply of
1. Invoice issued by Mr. Gyan on the service of database access by Best Info?

B Block
15-Apr-20XX a) 25th February,2017
2. Payment received by 5- Mr. Gyan on b) 28th February,2017
May-20XX c) 21st February,2017
3. Date of payment entered in books of d) 3rd March
accounts of Sham: 1-May-20XX
56. M/s ABC is regular dealer registered under
What is time of supply of services? GST in Jaipur. He supplies goods to M/s
a) 1-May-20XX PQR of Ahmedabad. The tax rate on items
b) 5-May-20XX supplied increased from 18% to 28% w.e.f
c) 14-Jun-20XX 01st September. The goods were supplied
d) 15-Apr-20XX by M/s ABC with invoice date of 31st August
and goods were also dispatched from the
54. Mr. X enters into a contract with a client for godown on the same date. The payment of
supply of certain services on 18.12.2017. GST the same goods was received by M/s ABC on
is payable on such services under forward 2nd September. Which of the following rate is
charge. Services are supplied on 25.12.2017 applicable in this transaction?
and invoiced on 05.01.2018. The client makes
a) Lower of the two i.e. 18%
payment by cheque for the services on
b) Higher of the two i.e. 28%
29.12.2017 and such payment is credited to
c) 28% as supply has completed and
the bank account of Mr. X on 06.01.2018. The
payment has been received after change
payment is recorded in the books of account
of rate to 28%
of the client and Mr. X on 30.12.2017 and
d) 18% as date of invoice and dispatch has
07.01.2018 respectively.
happened before change of tax rate.
The time of supply of services is:
a) 29.12.2017 57. If the supplies is not identifiable the time of
supply will be –
b) 30.12.2017
c) 06.01.2018 a) Date of issue of voucher
d) 05.01.2018 b) The date of redemption of voucher
c) When the goods actually receive
55. An online portal, Best Info, raises invoice for
d) When the actual payment receive
database access on 21st February, 2017 on

MCQon Indirect Tax | 73

 Time of Supply

A n s we r s
1 a 2 b 3 a 4 a 5 d 6 a
7 b 8 a 9 d 10 c 11 b 12 b
13 a 14 d 15 c 16 a 17 a 18 a
19 b 20 c 21 a 22 c 23 b 24 d
25 d 26 a 27 b 28 b 29 c 30 a
31 d 32 c 33 a 34 b 35 c 36 a
37 a 38 b 39 b 40 a 41 c 42 b
B Block

43 c 44 a 45 a 46 a 47 a 48 c
49 d 50 c 51 d 52 b 53 c 54 d
55 c 56 d 57 b

74 |MCQon IndirectTax
 Value of Supply

Chapter 9
Value o f Supply
MMLTIPLE CCOICE QMESTIONS
1. Value of supply shall be the transaction value, c) As may be provided under Rule 28 of

B Block
if Valuation Rules
a) Transaction is between unrelated parties d) None of the above
b) Price is the sole consideration 5. What shall be the applicable rate of exchange
c) Both (a) & (b) for the determination of the value of taxable
d) None of the above goods in case of any valuation under foreign
supply?
2. What is transaction value under GST?
a) The RBI reference rate as on the date of
a) Price actually paid or payable for supply of
goods agreement to supply
b) The customs rate as on the date of time of
b) Price actually paid for supply of services
supply
c) Price as such paid between unrelated
parties c) Any of the two at the option of Proper
officer
d) All of the above
d) None of the above
3. ABC Enterprises, a holding company gave its
car for business purposes to XYZ Enterprises, 6. Consideration under GST may include:
one of its subsidiaries having open market a) Payment in money or otherwise for the
value of INR 2.5 lacs for free. What shall be the supply
valuation of such supply for the purposes of b) Any deposit made for such supply
calculation of taxes? c ) Monetary value of any act or forbearance
a) INR 2.5 lacs for such supply
b) Shall not be considered as is executed d) All of the above
between related parties
7. Consideration excludes:
c) At the option of appropriate authority
d) None of the above [Hint: Rule 28] a) Payment in money or otherwise for supply
b) Monetary value of an act or forbearance
4. Raghu purchased a new camera for INR 30,000,
c) Subsidy by the Central and State
along with exchange of any old DSLR camera.
Government
If the exchange scheme is not present, the
new camera could easily be purchased at a d) All of the above
price of INR 42,000. What shall be the taxable 8. The definition of service includes the
value of such camera purchased? following:
a) INR 30,000 a) Money and securities
b) INR 42,000 b) Everything other than goods, money and
securities

MCQon Indirect Tax | 75

 Value of Supply

c) Facilitating and arranging transactions in Rule 30 or 31

securities d) All of the above,in that order (a), (b) & (c)
d) Both (b) and (c)
13. Mr. A makes a supply of 20 T-shirts to Mr. C.
9. Value of supply is considered to exclude: Here both are related persons. Mr. C as such
a) Taxes, duties, cesses and fees levied under intends to further supply as such T-shirts to
any other Act his customers. Open market value of such
T-shirts is ` 3000. In such case, what shall be
b) SGST and UTGST
c) Goods and Services Tax (Compensation to the value of supply per T-shirt?
States) Act a) ` 60,000 or ` 54,000
B Block

d) Both (b) and (c) b) INR 3000

c) INR 2700
10. Value of supply shall be construed to include:
d) (b) or (c) depending on the option of the
a) Any taxes, duties, Cess, fees, and charges supplier
levied under any Act, except GST.
b) Any amount that the supplier is liable 14. Baibhav is selling a product to Aakash for `
to pay which has been incurred by the 20,000. Open market value of the product
recipient and is not included in the price. is ` 36,000. Both of them are related parties.
c) All the incidental expenses, subsidies Further, Aakash is eligible to claim the ITC on
linked to supply and other interest, late fee the product. What shall be the value of supply
and penalty in this case?

d) All of the above a) INR 20,000

b) INR 36,000
11. Dell incorporation in Delhi supplied a laptop
c) INR 28,000
for INR 35,000 along with an exchange of
d) None of the above
a printer from Edge Print Digital Private
Limited. Value of such printer exchanged at 15.Mr. A enters into contract of selling the
the time of supply was found to be worth goods to Mr. B stating that all the expenses
INR 5,000. However the open market value of till the time goods reach Mr. B shall be
Dell laptop was not found at the time of such borne by the supplier. The goods were sold
supply. What shall be the value of supply of at a price of INR 40,000. He charges packing
such laptop? charges of INR 1500 on such supply. Mr. A
a) INR 40,000 also pays freight of INR 4500 for transporting
b) INR 35,000 such goods from Mr. A’s premises to Mr. B’s
premises. What shall be the value of such
c) INR 30,000
supply?
d) None of the above
a) INR 40000
12. What shall be the value of a supply, where the
b) INR 41500
supply is made between related parties for no
c) INR 46000
consideration?
d) None of the above
a) Open market value of such supply, or
b) Value of supply of goods or services of like 16. Mr. Vijay purchased a laptop for INR 30,000 with
kind and quality, or exchange of old laptop. Open Market price of
the old laptop is INR 10,000. Determine the
c) Value as determined by the application of
value of supply for the purpose of levy of GST?

76 |MCQon IndirectTax
 Value of Supply

a) INR 30,000 been separately indicated in the invoice

b) INR 40,000 issued by the pure agent to the recipient
c) INR 20,000 of service
d) None of the above c) The supplies procured by the pure agent
from the third party as a pure agent of the
17. Mr. Dinesh sold goods worth of ` 57,000 to
recipient of supply are in addition to the
Mr. Swami. As per the terms of credit period
services he supplies on his own account
extension specified by Mr. Dinesh, Mr. Swami
d) All of the above
was to make payment within 2 months for
such supply, which he was unable to make 20. What are the deductions allowed in case of

B Block
within such prescribed time. The supplier transaction value consideration?
henceforth charged interest of INR 1500 plus a) Discounts specified in the invoice
tax at the time of receipt of such amount. b) Any payment made by customer on behalf
What shall be the value of supply herein? of supplier
a) INR 57000 b) INR 58,500 c) Packing charges
c) INR 55,500 d) All of the above
d) None of the above 21. What shall be the value of supplies where
18. What shall be the value of a supply, where the supplies are made to related persons?
supply is made between related parties for a) Arm’s length price
consideration of ` 50,000 which is half of the b) The price at which the goods are sold by
market value of such supply? [Assume that unrelated person to his customer
the person who has procured such goods is c) As provided by rule 28 of the Valuation
able to claim full ITC of the taxes paid.] Rules
a) Open market value of such supply i.e. ` d) As may be prescribed by the appropriate
100,000 authority
b) Value of supply of goods or services of
22. What shall be considered as value of supply of
like kind and quality
goods and services if made with full monetary’
c) Value as determined by the application of
consideration to unrelated person?
Rule 30 or 31
a) Maximum Retail Price
d) All of the above, in that order
b) Transaction Value
e) ` 50,000
c ) Market Value
19. What are the conditions to be satisfied for
d) None of the above
excluding any expenditure incurred by a 23. Mr. Ramesh, a second hand car dealer
supplier as a pure agent of the recipient of
purchased a second hand car for ` 2,50,000.
supply under valuation? Dealer has sold the same to Suresh Ltd. for `
a) The supplier acts as a pure agent of 3,00,000. Determine Value of Supply?
the recipient of the supply, when he
a) INR 300,000
makes the payment to the third party on
b) INR 350,000
authorization by such recipient
c) INR 50000
b) The payment made by the pure agent d)None of the above
on behalf of the recipient of supply has [Hint: Margin Scheme]

MCQon Indirect Tax | 77

 Value of Supply

24.Mr. A sells the goods to Mr. B for ` 20,000 28. What does goods or services of like kind and
on 1st April 2018 & allows him a credit quality means?
period of 15 days post that penalty of ` 10 a) The supply that resembles similar
per day shall be levied on the same. Mr. B characteristics
makes a payment of ` 20,000 on 30th April
b) Supply resembling similar functional
2018 & Mr. A agreed for the same. What shall
components
be the value on which tax shall be levied?
c) Supply of similar quality and quantity
a) ` 20,000
d) All of the above
b) ` 20,150
29. What are the conditions to be complied with
B Block

c) ` 20,300
in order to ensure that the transaction value is
d) Any of the above
[Hint: Time of supply in respect to the penalty the taxable value?
arises once the same is received & in this case a) Parties to the transactions are not related
the same is later on waived.] b) Consideration is fully in money
25. A Ltd. sold a product for ` 34,000 to Mr. X. Mr. c) Both
X is selling the same like kind of product to his d) None of the above
consumer for ` 60,000. Mr. X holds 30% share 30. What shall be the open market value of the
in A Ltd. Determine the value of supply for the goods and services in case where the supply is
purpose of levy of GST. made within the related parties & the recipient
a) INR 34000 is eligible to claim input tax credit?
b) INR 54000 a) Value declared in invoice
c) INR 60000 b) Value as per market value
d) Either (a) or (b), depending on the option c) Either of the two
of Mr. A d) None of the above
26.Mr. Z is selling a product for ` 1,050 31. Mr. Anil is an Air travel agent. He collected
inclusive of GST. Rate of CGST & SGST will INR 50,000 (Basic fare for domestic booking)
be 2.5%. and INR 100,000 (Basic fare for International
Determine the value of supply Booking). What shall be the value of supply
a) INR 1000 under this case?
b) INR 1025 a) INR 2,500
c) INR 1050 b) INR 10,000
d) None of the above c) INR 12,500
d) None of the above
27. What are the conditions to be fulfilled for
a price to be termed as ‘open market value’ 32. What does the term basic fare means in the
under valuation rules? concept of value of supply in case of Air travel
a) Full value of goods/services in money agent?
excluding taxes under GST a) Gross fare charged by the agent
b) Supply between unrelated persons b) Part of fare on which commission is paid
by Air travel agent
c) Price is the sole consideration
c) Either (a) or (b)
d) All of the above
d) None of the above

78 |MCQon IndirectTax
 Value of Supply

33. What shall be the value of supply between a cost around INR 1500. The supplier charged
principal and agent oriented transaction? value of the additional packaging separately
a) Open market value of goods being after the supply was made. What is the final
supplied, value of such supply made?
b) 90% of the price charged for the supply of a) INR 17000
goods of similar kind and quality by the b) INR 18500
recipient to his customer, c) INR 15500
c) Value as determined by the application of d) None of the above
rules 30 and 31
38. Jiffy Foods Pvt. Ltd gives discount of 30%

B Block
d) All of the above, in that order
on the list price to its distributors as per its
34. What are the conditions prescribed for contract. As per invoice raised on the items
deduction of discount from the value of supplied per carton, the list price on the same
taxable supply, when made after supply? amounts to INR 500. What shall be the taxable
a) Discount allowed is linked to the relevant value of such supply, given that the discount
invoices is allowed at the time of supply and show’n in
b) Reversal of Proportionate ITC by the invoice?
recipient of supply
a) INR 300
c) The discount is given as per agreement
b) INR 350
entered into at or before such supply
c) INR 500
d) All of the above
d) None of the above
35. Who shall be the recipient in case where no
39. What are the notified supplies under Section
consideration is payable for a supply?
15(5)?
a) Person to whom goods are delivered
a) Service of money changing alongwith sale
b) No one as no consideration flow is made and purchase of foreign currency
c) As per the option of appropriate authority b) Air tickets booking service by an air travel
d) None of the above agent
36. Ramesh took $5000 in bank and exchanged c) Life Insurance business service
it with INR for which he got INR. 363,000. d) All of the above
The Bank deducted commission on such
transaction of exchange. Does the same 40. What shall be the value of supply where
qualify as services from Bank? parties to supply are related and the recipient
to such supply intends for further supply of
a) Yes, since it is a transaction of conversion
such goods?
of money for consideration
a) Price charged for supply of such goods by
b) No,Since it is a transaction in money
the supplier
c) As per the option of appropriate authority
b) Price charged by the recipient on similar
d) None of the above
goods
37. Varun purchased certain goods wrorth INR c) 90% of the price charged by the recipient
17,000 from Dushyant Foods Pvt. Ltd. As a on similar goods
matter of security, Varun made a request to the
d) Either (a) or (c)
supplier to provide for an additional packaging
on the given item for safe transportation which 41. What shall be the value of supply in case of

MCQon Indirect Tax | 79

 Value of Supply

Life insurance Business services? b) INR 1500

a) the gross premium charged from a policy c) INR 2000
holder reduced by the amount allocated d) None of the above
for investment, or savings on behalf of the
46. What shall be the valuation rules to be applied
policy holder
on import of goods?
b) in case of single premium annuity policies,
a) Valuation provision as per section 15 in
10% of single premium charged from the
policy holder respect of IGST
c) 25% of the premium charged from the b) Valuation provision as provided under
Custom Law for charging custom duty
policy holder in the first year and 12.5%
B Block

of the premium charged from the policy c) As per the opinion of Appropriate
holder in subsequent years authority
d) Either of the above options d) Both (a) & (b)

42. True or false: There are separate valuation 47. What shall be the valuation rule in case of
provisions for CGST, SGST and IGST and for import of services?
Goods and services as per section 15. a) IGST component of import is to be
determined as per GST law
a) True
b) Total Value to be determined as per the
b) False
provisions provided under Custom Law
c) Partially correct
c) As per the opinion of Appropriate
d) None of the above
authority
43. When are the provisions of Valuation Rules d) None of the above
applicable?
48. When will the recipient and supplier be
a) Consideration either wholly or in part not
treated as related persons under GST?
in money terms
a) Where such persons are employer and
b) Parties are related or supply by any
employee
specified category of supplier
b) Where one of them directly or indirectly
c) Transaction value declared is not reliable
controls other
d) In all of the above cases
c) Where such persons are officers or
44. True or false: Reference to GST Valuation directors of one another’s business
Rules is required only in cases where value d) All of the above
cannot be determined under sub-section (1)
of Section 15. 49. What shall be the valuation rule in case of
Interest charged for payment after due date?
a) True
a) The same would not be considered since it
b) False
is not related with supply
c) Partially correct
b) The same would be considered taxable
d) None of the above after receiving such interest amount
45. Jason Forex Private Limited being a registered c) Either (a) or (b) at option of proper officer
person under GST purchased 2000 USD from d) None of the above
Arpit Enterprises at the rate of INR 70 per
USD.RBI reference rate as on the date was INR 50. What shall be the treatment of subsidies
70.50. What shall be the value of such supply? received from Central Government while
deriving transaction value?
a) INR 1000

80 |MCQon IndirectTax
 Value of Supply

a) Shall be included in transaction value as received by the person changing the

directly linked to supply money
b) Shall not be included c) Both (a) and (b)
c) At the option of proper officer d) None of the above
d) None of the above 55. What shall be the value of supply in case of Air
51. What shall be the treatment of subsidies travel tickets booked by an Air travel Agent?
received from BAC Private Limited while a) An amount calculated at the rate of five
deriving transaction value? per cent of the basic fare in the case of
a) Shall be included in the transaction value, domestic bookings

B Block
even if not directly linked with price b) At the rate of ten per cent of the basic fare
in the case of international bookings of
b) Shall be included only when such subsidy
passage for travel by air.
is directly linked with price
c) Both (a) and (b)
c) (a) or (b)
d) None of the above
d) None of the above
56. Comment: If the amount is the contractual
52. Ram being a Chartered Accountant provided liability of the supplier but paid by the
certain professional services to his client. recipient on his behalf, that amount will be
However during such course of action, some includible in ‘value’ for purpose of payment of
out- of pocket expenses were incurred, GST.
which Ram claimed for reimbursement from a) Correct
his client. Does the same be included in the
b) Incorrect
transaction value?
c) Partially correct
a) Yes d) None of the above
b) No
57. Which of the following are the examples of
c) Does not qualify as supply incidental expenses incurred before supply?
d) None of the above
a) Commission & packing
53. Does the custom duty paid by Custom house b) Expenses on loading in factory
agent forms part of transaction value for the c) Inspection & testing charges before supply
purpose of calculation of IGST? d) All of the above
a) Yes 58. Comment: Interest or late fees or penalty for
b) No delayed payment of any consideration for
c)As per the opinion of custom authority any supply is includible in the value when the
d) None of the above time of supply on it arises.
a) Correct
54. What shall be the value of supply in case of
b) Incorrect
purchase or sale of foreign currency?
c) Partially correct
a) Value equal to the difference in the buying d) None of the above
rate or the selling rate, and RBI reference
rate for that currency at that time, 59. Subsidies directly linked to the price
multiplied by the total units of currency;or subsidies provided by the Central and State
Governments are includible in ‘value’ for
b) Value shall be one per cent of the gross
charge of GST.
amount of Indian Rupees provided or

MCQon Indirect Tax | 81

 Value of Supply

a) Along with c) Yes, only when they have partnership

b) Including share of 25% each
c) Excluding d) None of these
d) None of the above
65. “Family” for the purposes of finding the
60. Subsidies not directly linked to the price related person shall be:
subsidies provided by the Central and
a) Spouse of the person
State Governments are includible in ‘value’ for
b) Children of the person
charge of GST
c) Parents of the person
a) Including
B Block

d) All of the above

b) Excluding
c) Either (a) or (b) 66. has been provided for dealers in second
d) None of the above hand goods.

61. Trade discounts given on basis of performance a) Valuation scheme

of dealers in the previous quarter is allowable b) Margin scheme
as deduction from value. c) Input tax scheme
d) Return scheme
a) True
b) False 67. What shall be the value of a token, voucher,
coupon or stamp which is redeemable against
62. Does refraining from an act or tolerating an
a supply of goods and services?
act or situation form a part of consideration?
a) Money value of such token, voucher,
a) Yes
coupon or stamp
b) No
b) Money value of the goods or services or
63. A deposit, , given in respect of the both redeemable against such token,
supply of goods or services or both shall voucher,coupon, or stamp.
not be considered as payment made for the c) Both (a) and (b)
supply unless the supplier applies the deposit d) None of the above
as .
68. Where a new phone is supplied for twenty
a) Which is refundable, consideration for the
thousand rupees along with the exchange
supply of an old phone and if the price of the new
b) Which is not refundable, taxable value for phone without exchange is twenty four
the supply thousand rupees. What shall be the value for
c) Whether refundable or not, consideration the purposes of GST of the new phone?
for the supply a) ` 20,000
d) Whether refundable or not, taxable value b) ` 24,000
for the supply c) ` 16,000
d) None of the above
64.Mr. A, B, C & D entered into a partnership
& started their own firm. Will these four be 69. Where a laptop is supplied for forty thousand
considered as related parties? rupees along with the barter of a printer that is
manufactured by the recipient and the value
a) Yes
of the printer known at the time of supply is
b) No
four thousand rupees but the open market

82 |MCQon IndirectTax
 Value of Supply

value of the laptop is not known. What shall same is

be the value of laptop for GST purposes? a) ` 800
a) ` 40,000 b) ` 6000
b) ` 44,000 c) ` 11000
c) ` 36,000 d) ` 1500
d) None of the above
75. What shall be the value of supply of goods/
70. Is there any specific valuation mechanism services where the consideration is not wholly
provided for composite supplies and mixed in money?
supplies?

B Block
a) be the open market value of such supply
a) Yes b) sum total of consideration in money and
b) No any such further amount in money as is
71. Will the Customs Valuation apply to IGST equivalent to the consideration not in
payable on import of services? money, if such amount is known at the
a) Yes time of supply
b) No c) value of supply of goods or services or
both of like kind and quality
72. Will the out-of-pocket expenses charged
d) any of the above
by professionals to claim reimbursement
of expenses incurred by them for rendering 76. What shall be the value of supply in case of
services to their clients be included in the lottery run by the state government?
transaction value? a) 100/112 of the face value of ticket
a) Yes b) price as notified in the official gazette by
b) No the organising state
73. Discount given after the supply is deducted c) 100/114 of the face value of ticket
from the value of taxable supply, if –Value of d) 100/112 of the face value of ticket or price
supply as notified in the official gazette by the
organising state, whichever is higher
a) such discount is given as per the agree-
ment entered into at/or before the supply 77. A Chartered Accountant issued following bill
b) such discount is linked to the relevant (i)Professional fees – ` 1,00,000
invoices (ii)Out of pocket expenses – ` 10,000
c) proportionate input tax credit is reversed (iii)MCA for e‐filing of documents on
by the recipient of supply MCA portal – ` 5,000.
d) all of the above His value of service for tax purposes is:
a) ` 1,15,000
74.Mr. Narayan Goel has booked a room on rent
in Sunshine Hotel for the purpose of lodging b) ` 1,10,000
on 10.08.20XX. GST is not payable by Mr. c) ` 1,05,000
Narayan Goel in case value of supply for the d) ` 1,00,000

MCQon Indirect Tax | 83

 Value of Supply

A n s we r s
1 c 2 d 3 a 4 b 5 b 6 d
7 c 8 d 9 d 10 d 11 a 12 d
13 b 14 b 15 c 16 b 17 b 18 e
19 d 20 a 21 c 22 b 23 c 24 b
25 c 26 a 27 d 28 d 29 c 30 a
31 c 32 b 33 d 34 d 35 a 36 a
37 b 38 b 39 d 40 d 41 d 42 b
B Block

43 d 44 a 45 a 46 d 47 a 48 d
49 b 50 b 51 b 52 a 53 a 54 c
55 c 56 a 57 d 58 a 59 c 60 d
61 a 62 a 63 a 64 a 65 d 66 b
67 b 68 b 69 b 70 b 71 b 72 a
73 d 74 a 75 d 76 d 77 b

84 |MCQon IndirectTax
 Value of Supply

MATCC TCE FOLLOo ING

Column A Column B
1 Due date for tax collected at source A No GST is payable
2 Payment made by a businessman for B Deemed receipt of supply
medical services availed in USA
3 Supply of goods and services to Special C Recipient of credit
Economic Zone
4 The supplier of goods and services or both D Exempted

B Block
having same Permanent Account Number
as that of the Input Service Distributor
5 The recipient of goods can issue E 10th of the following month
direction to deliver the goods to third
parties
F 10th of every month
G Zero rated tax
[Answer : E, A, G, C, B]

TRME OR FALSE
1. Due date for payment of GST under the Composition scheme is 15th of the month following the
quarter.
2. No GST on advance payment received for supply of goods by small taxpayers having aggregate
annual turnover of up to ` 1.50 crore.
3. Services provided by a Recovery Agent is call intermediary services.
4. GST element will not be considered for the purpose of determining the cost of Acquisition.
5. ITC will be allowed for stolen and destroyed goods.

[Answer: 1. False, 2. True, 3. True, 4. True, 5. False]

FILL INTCE BLANKS

1. GST is a based tax, means tax will be levied where goods and services are
consumed and will accrue to that state.
2. Sole consideration means by paying GST on such consideration there is no loss to
the department.
3. As per Section 2(34) include a vessel, an aircraft and vehicle.
4. ITC will not be eligible for Input Tax paid goods and services used for consumption.
5. Membership of a club, health and fitness centre are for ITC. (eligible/not eligible)

[Answer : destination, revenue, conveyance, personal, not eligible]

MCQon Indirect Tax | 85

Block - C
Registration
& Tax Invoice
 Registration

Chapter 10
Registration
MMLTIPLE CCOICE QMESTIONS

1. What is the benefit of GST Registration? registration means for voluntary registration
the person should have aggregate turnover
a) Tax Identification Number to every taxable
of 20 lakhs or more.
person
b) Enables passing of tax credit to business a) Correct - as per IGST Act
customers. b) Incorrect - for voluntary registration the
c) Facilitates collection of tax & payment to threshold limit is 10 lakhs
the Government c) Correct - as per CGST Act
d) All of above d) Incorrect - turnover is not relevant for
voluntary registration
2. Can a person without GST registration claim
ITC and collect tax? 6. In case where a person makes supply from
multiple states and his aggregate turnover
a) Yes
exceeds threshold limit, he has to get
b) No
registered
c) At the discretion of the Government
d) Cannot claim ITC but have to collect tax a) In all those states
from the customers b) In only on e state where turnover is greater
than 20 lakhs
3. What is the threshold limit for requirement of c) In states where turnover is greater than 20

C Block
registration under GST? lakhs
a) 10 lakhs/20 lakhs in special category states d) In any one of the states
b) 20 lakhs/5 lakhs in special category states 7. Mr. Anil makes supply from multiple states
c) 20 lakhs/10 lakhs in special category states and has following turnover, Delhi - 50 lakhs,
d) 10 lakhs /5 lakhs in special category states Haryana -10 lakhs. Mr. Anil ask for advice
where to get registration under GST?
4. A. A person is not required to pay GST if he is
voluntarily registered under GST a) Delhi b) Haryana
B. Once a person is registered under GST Act, c) None of the above d) Both (a) & (b)
he is bound to pay GST,even if his turnover
is below prescribed limit (of ` 20/10 lakhs). 8. A. GST registration should be obtained ‘from
Comment on the above statements, where taxable supply is made’.
a) A - Correct, B - Incorrect B. GST registration should also be obtained
b) A - Incorrect, B - Correct ‘where taxable supply is made’.
c) Both A & B - Correct Comment on the above statements,
d) Both A & B - Incorrect a) A - Correct, B - Incorrect
b) A - Incorrect, B - Correct
5. Threshold limit of `20 lakhs for GST
c) Both A & B - Correct

MCQon Indirect Tax | 89

 Registration

d) Both A & B - Incorrect 13. Persons who are making supplies of taxable
services, where total tax is payable by
9. A person, resident of Delhi has business places recipient of services, is registration
both at Delhi and Haryana. From where he under GST Act
has to take GST Registration?
a) Under compulsion to take
a) From Delhi Only b) Exempt from taking
b) From Haryana Only c) Eligible for
c) He has to take separate GST Registration
d) None of above
both at Delhi and Haryana with different
PAN Number 14. Person making inter-State supply of taxable
d) None of above services is not required to register if the
aggregate turnover is less than the threshold
10. In case where a company has places of limit applicable in the particular State/UT.
business all over India. Can such a company
take a single Centralised GST Registration? a) Correct
b) Incorrect
a) Yes
c) In all cases of inter-State supply the person
b) Optional should be registered
c) No (He has to take Registration in all the
d) None of above
states from where he makes supplies of
goods or services) 15. The Threshold Limit for taking GST registration
d) Registration only in the state where Head is not applicable in cases of,
Office is located
a) Person making any inter-State taxable
11. A. Any person engaged exclusively in the supply of goods,
business of supplying exempted goods does b) Casual taxable persons making taxable
not require registration under GST. supply
c) Every E-Commerce Operator who is
B. An agriculturist, to the extent of supply of
required to collect tax at source u/s 52
C Block

produce out of cultivation of land does.

not require registration. d) All of the Above
Comment on the above statements, 16. The threshold Limit for taking GST registration
a) A - Correct, B - Incorrect is not applicable to such other person or class
b) A - Incorrect, B - Correct of persons as may be notified by the Central
c) Both A & B - Correct Government or a State Government on the
d) Both A & B - Incorrect recommendations of the .

12. ABC (unregistered person) is providing wholly a) President of India

and exclusively services to XYZ (registered b) Prime Minister of India
person), where XYZ is liable to pay GST c) GST Council
under reverse charge. So ABC need not take d) Institute of Chartered Accountants of India
registration under GST.
17. All commission agents require mandatory
a) Correct registration under GST irrespective of his
b) Incorrect commission income (i.e. even if such income
c) Partially Correct is below threshold limit).
d) None of the above
a) Correct

90 |MCQon IndirectTax
 Registration

b) Incorrect 22. Every person applying for GST registration

c) Partially correct shall, before applying for registration, declare
d) None of above his Permanent Account Number, mobile
number, e-mail address, Slate or Union
18. Which of the following person has to make territory in Part A of FORM .
compulsory registration under GST Act?
a) GST RE-01
a) Persons required to pay tax under reverse
b) GST REG-01
charge
c) GST REGD-01
b) Non-resident taxable persons making
d) GST REGN-01
taxable supply
c) Input Service Distributor 23. Every person applying for GST registration
d) All of above shall in Part A of FORM GST REG-01 shall
furnish,
19. Every person who is liable to be registered
under GST shall apply for registration in every a) Permanent Account Number only
such State in which he is so liable within b) Mobile Number and email address
from the date on which he becomes liable to c) State or Union Territory
registration. d) All of above
a) 7 days 24. What is the fee payable for filing application
b) 15 days for registration under GST?
c) 30 days
a) Nil
d) 60 days
b) `100
20. A casual taxable person or a non-resident c) ` 200
taxable person shall apply for registration
d) ` 500
.
a) Within 5 days from being liable to 25. A. SEZ Unit or SEZ Developer are required to
register separately under GST.
registration

C Block
b) Within 30 days from being liable to B. Input Service Distributor shall make a
registration separate application for registration as
c) Atleast 30 dayspriortothecommencement such Input Service Distributor.
of business Comment on the above statements,
d) At least 5 days prior to the a) A - Correct, B - Incorrect
commencement of business b) A - Incorrect, B - Correct
21. Is the person making supply from territorial c) Both A & B - Correct
waters of India required to take registration? d) Both A & B - Incorrect
a) No (as the place from where supply is 26. A person applying for registration as a casual
initiated is not Indian land) taxable person shall be given a temporary
b) Yes (in the state where the person supplies reference number by the Common Portal
the goods) .
c) No (supply from territorial waters of India
is exempt supply) a) For making advance deposit of tax
b) After validation of email and phone
d) Yes (in the coastal state or UT where the
number with OTP
nearest point of the appropriate base line
is located) c) For making proper signature with DSC

MCQon Indirect Tax | 91

 Registration

d) None of above c) Either (a) or (b)

d) Issue provisional registration certificate
27. What is the full form of EVC?
32. The applicant shall furnish any clarification,
a) Electronic validity code
sought electronically by the proper officer
b) Electronic verification code
regarding deficiency in application, within 7
c) Electronic verification copy working days from date of receipt of notice,
d) Electronic validity copy in form .
28. When the application for GST registration is a) GST REG-02
filed, an acknowledgement shall be issued b) GST REG-03
electronically to the applicant in form, c) GST REG-04
a) GST REG-01 d) GST REG-05
b) GST REG-01 A
33. The applicant shall furnish any clarification,
c) GST REG-02 sought electronically by the proper officer
d) GST REG-02A regarding deficiency in application, in form
29. The application for registration after being GST REG-04, within from the date of
examined by the proper officer, if the same receipt of such notice.
are found to be in order, approve the grant a) 3 working days
of registration to the applicant within b) 7 working days
from the date of submission of application. c) 10 working days
a) 3 working days d) 15 working days
b) 5 working days
34. In case where the proper officer is not
c) 7 working days
satisfied with the documents furnished for
d) 10 working days the application of registration, he shall, for
30. The application for registration after being reasons in writing, reject the application
C Block

for registration under GST and inform the

examined by the proper officer, if the same
applicant electronically in form
are found to be deficient, and requires any
clarification, he may issue a notice to the a) GST REG-03
applicant electronically in form . b) GST REG-04
a) GST REG-01, within 7 working days c) GST REG-05
b) GST REG-02, within 3 working days d) GST REG-06
c) GST REG-03, within 3 working days 35. The application for grant of registration shall
d) GST REG-04, within 5 working days be deemed to have been approved, if the
proper officer fails to take any action
31. If the proper officer needs any clarification in
the REG-01 filed by a dealer, what will be the a) within 3 working days from the date of
option available to him? submission of application,
b) within 7 working days from the date of
a) Online issuance of GST REG-03 within 3
receipt of clarification, information or
common working days from the receipt of
documents furnished by the applicant
the GST REG-01
c) Both (a) OR (b)
b) Visit the principal place of business of the
applicant d) None of the above

92 |MCQon IndirectTax
 Registration

36. If the application for grant of registration b) a, d, c, b

has been approved by the proper officer, a c) d, c, b, a
certificate of registration is made available to d) d, a, c, b
the applicant on the Common Portal in form
. 41. The registration shall be effective from the
date on which the person where
a) GST REG-01
the application for registration has been
b) GST REG-03 submitted within from such date.
c) GST REG-06
d) GST REG-07 a) Makes application in GST REG-01,30 days
b) Becomes liable to registration, 30 days
37. What is the full form of GSTIN? c ) Makes application in GST REG-01,15 days
a) Goods and Services Tax Identification d) Becomes liable to registration, 15 days
Number
42. What is the effective date of registration
b) Goods and Services Tax Information where the application for registration has
Number been submitted within 30 days from being
c) Goods and Services Type Identity Number liable to get registered?
d) Goods and Services Type Information
a) Date of becoming liable to registration
Number
b) Date of making application in GST REG- 01
38. Every company shall have a issued c) Date of grant of registration
under the Income-tax Act, 1961 in order to be d) Date of first sale made after registration
eligible for grant of registration.
43. What is the effective date of registration
a) TIN (Taxpayer Identification Number) in case the person voluntarily opts to take
b) PAN (Permanent Account Number) registration in GST?
c) TAN (Tax Deduction & Collection Account
Number) a) Date of becoming liable to registration
b) Date of making application in GST REG- 01
d) DSC (Digital Signature Certificates)

C Block
c) Date of grant of registration
39. The Number of Digits in the PAN based GSTIN d) Date of first sale made after registration
registration Number will be:
44. A registered taxable person is liable to show
a) 10 Digits his GSTN number in,
b) 12 Digits
a) Tax Invoice
c) 14 Digits
b) Name Board at Principal Place and
d) 15 Digits
additional place of business
40. Arrange the following in an order to form c) Both (a) and (b)
proper GSTIN,— d) Either (a) or (b)
(I) ten characters for the PAN or the Tax 45. What is the prescribed time period to apply
Deduction and Collection Account for registration by a non-resident taxable
Number person?
(II)one checksum character a) Within 7 days after total turnover crosses
(III) two characters for the entity code 20 lakhs
(IV) two characters for the State code b) Within 7 days prior to the commencement
a) c, a, d, b of business

MCQon Indirect Tax | 93

 Registration

c) Within 30 days from being liable to 50. A. Voluntary registration can be cancelled any
registration time.
d) At least 5 days prior to the comm encement B. Tax must be paid once voluntary registration
of business is obtained, even if annual turnover is less
46. M/s Uday & Co. crossed their threshold limit than ` 20 lakhs.
for registration on 10-8-2018. But, he applied Comment on the above statements,
for GST registration on 5-9-2018 and he was a) A - Correct, B - Incorrect
granted GST registration on 8-9-2018. What b) A - Incorrect, B - Correct
will be his effective date of registration? c) Both A & B - Correct
a) 10-8-2018 d) Both A & B - Incorrect
b) 5-9-2018 51. Who can submit application for registration in
c) 8-9-2018 Form GST REG-09?
d) 10-9-2018
a) Non-Resident taxable person
47. Can a single person apply for two registrations b) Input service distributor
in GST ie. one as casual taxable person & other c) Person deducting tax at source
as regular taxable person? d) Person collecting tax at source
a) Yes 52. A non-resident taxable person may be
b) No granted registration on the basis of any other
c) Maybe document (other than Income Tax PAN) as
d) I don’t know may be prescribed.
a) Correct
48. Mr. X has applied for Registration on 10-08-
2018 but the effective date of registration was b) Incorrect
on 15-8-2018. In between that processing c) Partially correct
period he has supplied goods to Mr. Y. How d) None of Above
C Block

can Mr. Y avail ITC on purchases for that 53. Where a person who is liable to be registered
period? under this Act fails to obtain registration, the
a) By Receiving Revised Tax Invoice proper officer may, without prejudice to any
b) By Receiving Credit Notes action that is, or may be taken under this Act,
c) By Receiving Debit Notes or under any other law for the time being in
force,may proceed for .
d) No ITC for such period
a) Voluntary Registration
49. Display of registration certificate and GSTIN
b) Suo motu Registration
on the name board at his principal place of
c) Compulsory Registration
business and at additional place of business
is mandatory. d) Optional Registration
54. Order of Grant of Temporary Registration/
a) Correct
Suo Motu Registration is granted by the
b) Incorrect
proper officer in form .
c) Display at principal place is mandatory but
optional at additional place of business a) GST REG-10
d) Display at additional place of business is b) GST REG-12
mandatory but optional at principal place c) GST REG-14
d) GST REG-16

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 Registration

55. Every person to whom a temporary c) GST REG-14

registration has been granted on the motion d) GST REG-15
of the proper officer shall, within 90 days from
the date of the grant of such registration, 60. The proper officer will assign a Unique
submit . Identity Number to the relevant person and
issue a certificate in form GST REG-06 within
a) Application for registration three working days from .
b) Return GSTR-01
c) Provisional Assessment Report a) The date of submission of application
b) After receiving a recommendation from
d) All of above
the Ministry of External Affairs
56. Every person to whom a temporary c) Either (a) or (b)
registration has been granted on the motion d) (a) or (b) whichever is later
of the proper officer shall have option to,
61. A. The embassies, UN Agencies and Consulates
a) File an appeal against the grant of
can be granted UIN without applying, on
temporary registration
recommendation of the Ministry of External
b) Submit an application of registration Affairs,Government of India.
c) Either (a) or (b)
B. The UIN granted is state-wise i.e. different
d) None of above
registration in each state is required.
57. In case where the appeal has been filed Comment on the above statements,
against the grant of temporary registration a) A - Correct, B - Incorrect
by the proper officer. And the order has been b) A - Incorrect, B - Correct
passed upholding the liability to registration c) Both A & B - Correct
by the Appellate Authority. What is the time
d) Both A & B - Incorrect
limit to make an application for registration
after such order has been passed? 62. The certificate of registration issued to a
a) 20 days casual taxable person or a non-resident

C Block
taxable person shall be valid for a period from
b) 30 days
the effective date of registration for
c) 45 days
d) 60 days a) 90 days
b) Period specified in the application for
58. What is the full form of UIN? registration
a) Un-identified Nation c) (a) or (b), whichever is later
b) United Identity Number d) (a) or (b), whichever is earlier
c) Unique Identity Number 63. A. Casual taxable person can make taxable
d) United in Nation supplies only after issuance of certificate of
registration.
59. Application for grant of Unique Identity
Number (UIN) to UN Bodies, Embassies, B. The amount of advance tax deposit,
Consulates, etc. shall be made electronically is a pre-requisite for application for
through the common portal or through a registration for casual taxable person.
facilitation centre in form . Comment on the above statements,
a) GST REG-12 a) A - Correct, B - Incorrect
b) GST REG-13 b) A - Incorrect, B - Correct

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 Registration

c) Both A & B - Correct a) Input Service Distributor

d) Both A & B - Incorrect b) E-Commerce Operator
64.Mr. A has been registered as a casual c) Casual and Non-Resident Taxable Persons
taxable person, for an exhibition program d) Aggregator of Branded Services
conducted at Delhi. While obtaining 68. Any person supplying online information
registration Mr. A deposited some amount and data base access or retrieval services
as advance deposit of tax and after end of from a place outside India to a non-taxable
registration period the amount refundable online recipient shall electronically submit
from such advance deposit is ` 20000. The an application for registration, duly signed, in
certificate of registration was in force for the form .
whole period but Mr. A was unaware of
furnishing returns u/s 39. What will be the a) GST REG-10
amount refundable to him? b) GST REG-11
a) Nil c) GST REG-12
b) ` 5000 d) GST REG-13
c) ` 10000 69. Any person required to deduct tax u/s 51 or
d) ` 20000 a person required to collect tax at source u/s
52 shall electronically submit an application,
65. What is the condition for refund of advance
duly signed or verified through EVC, in form
tax deposited in case of casual taxable person
.
or non-resident taxable person? .
a) GST REG-07
a) The entire period for which the certificate
of registration granted had remained in b) GST REG-08
force c) GST REG-09
b) Furnished all the returns required u/s 39 d) GST REG-10
c) Either (a) or (b) 70. Every registered person including UIN holder
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d) Both (a) & (b) shall inform the proper officer of any changes
in the information furnished at the time of
66.Mr. A (a non-resident) is registered as a
registration, or that furnished subsequently,
casual taxable person for performing circus
in form within from such change.
in India. Due to popularity of his show he
sees need of extending the period of a) GST REG-11/30 days
registration as casual taxable person. Which b) GST REG-14/30 days
factor should he consider to get extension as c) GST REG-11/15 days
such? d) GST REG-14/15 days
a) Application must be filed after the end of
71. The proper officer shall not reject the
validity of registration granted
application for amendment in the registration
b) Deposit an additional amount of tax particulars without .
equivalent to the estimated tax liability
for the period for which the extension is a) Giving the person an opportunity of being
sought heard
c) None of the above b) Visiting the place of business of the
applicant
d) All of the above
c) Recovering the tax due with the applicant
67. Persons liable to make estimated Advance d) All of the above
Tax Deposit to obtain GST Registration are:

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 Registration

72. Where a change in the constitution of any b) GST REG-16

business results in change of the Permanent c) GST REG-17
Account Number (PAN) of a registered person, d) GST REG-18
the person shall apply for .
77. Which of the following statements is true?
a) Fresh Registration
b) Amendment of Registration a) Voluntary registration is not applicable
c) Cancellation of Registration under GST.
d) No effect on registration b) A person getting registered voluntarily
shall comply with all the provisions of GST
73. In case of amendment of registration, it c) Voluntarily registered person not under
shall amount to deemed acceptance of compulsion to comply with the provisions
amendment where the proper officer fails to of the GST.
take any action, d) None of the above.
a) within 15 working days from the date of
78. Which of the following is correct statement:
submission of application
b) within 7 working days from the date of “The registration granted to a person is liable
receipt of reply to the notice to show cause to be cancelled if the said person
c) within 7 working days from the date of (1)does not conduct any business from*the
submission of application declared place of business
d) Either (a) or (b) (2)issues invoice without supply of goods or
services in violation of the provisions of
74. The proper officer will have regard to the the GST law
following, while cancelling registration —
(3) violates provisions relating to Anti
a) whether the business has been
Profiteering”
discontinued
a) Only 1 & 2
b) whether there is any change in the
b) Only 1 & 3
constitution of the business

C Block
c) whether the taxable person is no longer c) Only 2 & 3
liable to be registered d) All 1, 2 & 3
d) All of the above 79. The proper officer may cancel the registration
of taxable person from such date, as he
75. The proper officer shall drop the proceedings
may deem fit, in case where a person who
of the cancellation of registration in case the
has taken voluntary registration has not
defaulting taxable person files earlier returns
commenced business within from the
with late fee, pay taxes & other dues, in form
date of registration.
.
a) 3 months
a) GST REG-17
b) 4 months
b) GST REG-19
c) 5 months
c) GST REG-20 d) 6 months
d) GST REG-21
80. Which of the following cases amounts to suo
76. Application for cancellation of registration motu cancellation of registration under GST
shall be filed electronically in form . by proper officer?
a) GST REG-15 a) any taxable person not furnishing returns
for a continuous period of 1 year,

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 Registration

b) registration has been obtained by means of a) GST REG-20

fraud, wilful misstatement or suppression b) GST REG-21
of facts c) GST REG-22
c) any person who has taken voluntary d) GST REG-23
registration has not commenced business
within 3 months from the date of 85.Mr. Suraj is doing business in 5 states and
registration his aggregate turnover crosses the
threshold limit for registration under GST.
d) All of the above
Mr. Suraj is of the opinion that he has to
81. If a person who has submitted an application take a single registration as he is operating
for cancellation of his registration is no longer with the same PAN number. Comment on his
liable to be registered, the proper officer shall opinion?
issue an order for cancellation of registration
a) Correct
in form
b) Incorrect
a) GST REG-17 c) Partially correct
b) GST REG-18 d) None of the above
c) GST REG-19
d) GST REG-20 86. Is there an option to take centralized
registration for services under GST Law?
82. A. Liability of the person to pay tax and
a) Yes
other dues under this Act continues despite
the issuance of order of cancellation of b) No
registration. 87. Whether all dealers who are already registered
B. Cancellation under CGST does not amount under existing VAT/Service tax/Excise will
to cancellation under SGST. have to obtain fresh registration?
Comment on the above statements, a) Yes
a) A - Correct, B - Incorrect b) No
C Block

b) A - Incorrect, B - Correct
c) Both A & B - Correct 88. Can a person who is not required to be
registered under GST Act but registered
d) Both A & B - Incorrect
under the earlier law, cancel the provisional
83. Any registered taxable person, whose registration?
registration is cancelled by the proper officer a)Yes
on his own motion, may apply to such b) No
officer for revocation of cancellation of the
registration within from the date of 89. From which State the taxable person should
service of the cancellation order. obtain registration?
a) 7 days a) every State from where he makes taxable
b) 15 days supply of goods or services or both
c) 30 days b) every State in India
d) 45 days c) single registration will be sufficient
d) State where taxable turnover exceeds 20
84. A registered person can make application for lakhs
revocation of cancellation of registration in
form . 90. The proper officer may cancel the registration
of taxable person from such date, as he may

98 |MCQon IndirectTax
 Registration

deem fit, in case where a person paying tax 96. Where the business carried on by a registered
under composition scheme has not furnished person is transferred as a going concern, then
returns for . will the transferee be liable to register in GST?
a) 3 consecutive tax periods a)Yes
b) 4 consecutive tax periods b) No
c) 5 consecutive tax periods c)Option of transferee
d) 6 consecutive tax periods d)Depends on terms of transfer

91. Mr. A is having a unit in Delhi with turnover of ` 97. Mr. A of Delhi is supplying handicrafts to Mr. B
5 lacs & another unit in Manipur with turnover of Haryana. Turnover of Mr. A is only 5 lacs. Is
of ` 6 lacs. Is he liable to take registration? he liable to take registration in GST?
a)Yes a)Yes
b) No b) No

92. Aggregate turnover includes: 98. In above question, is it compulsory to make

an E-way bill for this transaction?
a) Value of exempt supplies
b) Value of exports a)Yes
c) Value of inter-state b) No
d) All of the above
99. Which of the following persons are liable to
93. Registration in GST is State/Union Territory take compulsory registration in GST?
wise. a) Person required to deduct taxes
a) True b) Input service distributor
b) False c) Non-resident taxable person making
taxable supply
94. Fixed establishment means a place d) All of the above
characterised by & suitable structure

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in terms of human & technical resources to 100.ABC, is a SEZ situated in Noida, UP. It wants
supply services, or to receive & use services to set up another SEZ in UP. Which of the SEZ
for its own need. needs to be registered in GST?
a) Temporary presence a)SEZ 1
b) Sufficient degree of permanence b) SEZ 2
c) Sufficient presence c) Both SEZ needs to be separately registered
d) All of the above d)Both SEZ shall operate in a single registration

95. Mr. A, a registered person in Delhi wants to 101.Mr. A is having 3 offices in Delhi of Garments
participate in exhibition which is to be held trading. Can he apply for separate registration
in Mumbai. What kind of registration he shall for each of such places?
obtain?
a) No, because no different business vertical
a) Registration as a non-resident taxable b) Yes, because he is having more than one
person office in a State
b) Registration as casual taxable person c) Yes, person can apply for separate
c) Registration as regular person registration for all such places
d) Any of the above d) None of the above

MCQon Indirect Tax | 99

 Registration

102.Mr. A exclusively deals in transportation of Number?

fruits & vegetables which is exempt service in
a) Yes, No
GST. Is he liable to take registration in GST?
b) No,Yes
a)Yes c) Yes,Yes
b) No d) No,No
103.Mr. A of Delhi till date is only engaged in 109.A person having in a State
making exports & supplies to SEZ Units. His obtain a separate registration for each
aggregate turnover is ` 15 lacs. Is Mr. A liable business vertical.
to registration in GST?
a) Multiple business verticals, shall
a) No,as threshold limit is not crossed b) Multiple business verticals, may
b) Yes, as the value of supply has exceeded ` c) Multiple place of business, shall
10 lacs d) Multiple place of business, may
c) Yes, since it is an inter-State supply
d) None of the above 110.A. A person liable to deduct TDS under section
51 of CGST Act requires registration.
102.Mr. A of UP receives an order from ABC, a B. For such person, it is mandatory to be
SEZ in UP. Is Mr. A required to take registered in E-way bill portal.
registration in GST?
Comment on the above statements,
a)Yes a)A - Correct, B - Incorrect
b) No b) A - Incorrect, B - Correct
103.A registered person is sending semi- cooked c) Both A & B - Correct
food from his manufacturing unit at Gurgaon d) Both A & B - Incorrect
to his branch in Delhi. Is he required to pay
111.What are the consequences of obtaining
any tax? registration by misrepresentation?
a)Yes a) Liable to cancellation of registration by
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b) No proper officer.
104.Can the taxable supply made by the job- b) Liable to a fine not exceeding ` 10,000
worker on behalf of his principal be considered c) Imprisonment for a period of 6 months
for computing his aggregate turnover? to 1 year
d) Both (b) and (c)
a)Yes
b) No 112.What is the validity of Registration
Certificate?
105.Whether the amount deposited in excess
by a casual taxable person or non-resident a) Five years
taxable person is refundable? b) Ten years
c) No validity
a)Yes
d) Valid till it is cancelled.
b) No
113.A person having business verticals in a
106.Do traders having turnover less than ` 20 State obtain a separate registration for
Lakhs need to get registered under GST? each business vertical.
Can they purchase primary goods from
other states without having GST Registration a) Single,shall
b) Multiple,shall

100 |MCQon Indirect Tax

 Registration

c) Multiple,may c) 90
d) Single,may d) 120

114. Registration certificate granted to casual 118. How the aggregate turnover is calculated
taxable person or non-resident taxable for computing threshold limit of registration?
person will be valid for:
i) Aggregate value of all taxable supplies (-
a) Period specified in the excluding the value of inward supplies
registration application on which tax is payable by a person on
b) 90 days from the effective date of regis- reverse charge basis), exempt supplies,
tration export of goods/services and interstate
c) Earlier of (a) or (b) supplies of a person having same PAN
computed on all India basis.
d) Later of (a) or (b)
ii) Aggregate value of all taxable supplies(-
115.The persons making inter-State supplies excluding the value of inward supplies
from Madhya Pradesh is compulsorily on which tax is payable by a person on
required to get registered under GST, reverse charge basis), exempt supplies,
export of goods/services and interstate
a) if his all India based aggregate turnover
supplies of a person computed for each
exceeds `20 lakh in a financial year
state separately.
b) if his all India based aggregate turnover
iii) Aggregate value of all taxable intrastate
exceeds `10 lakh in a financial year
supplies, export of goods/services and
c) irrespective of the amount of aggregate
exempt supplies of a person having same
turnover in a financial year
PAN computed for each state separately.
d) in case of making inter-State supply of
iv) Aggregate value of all taxable supplies(-
taxable goods, irrespective of the amount
excluding the value of inward supplies
of aggregate turnover in a financial year
on which tax is payable by a person on
116.Which of the following statement is true for reverse charge basis), exempt supplies,
export of goods/services and interstate

C Block
Mr.X, a casual taxable person?
supplies of a person having same PAN
a) Mr. X is not required to take registration computed on all India basis and excluding
under GST. taxes if any charged under CGST Act,SGST
b) Mr. X is required to get registration under Act and IGST Act.
GST,if the aggregate turnover in a financial
a) (i)
year exceeds `20 lakh.
c) Mr. X can opt for voluntary registration b) (ii)
under GST. c) (iii)
d) Mr. X has to compulsorily get registered d) (iv)
under GST irrespective of the threshold limit
119. Within how many days a person should
117.The registration certificate granted to Non apply for registration?
resident taxable person is valid for
a) Within 60 days from the date he
days from the effective date of registration or
becomes liable for registration.
period specified in registration application,
whichever is ealier. b) Within 30 days from the date he becomes
liable for registration.
a) 30
b) 60 c) No Time Limit

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 Registration

d) Within 90 days from the date he a) Telangana

becomes liable for registration b) Maharashtra
c) Both (a) and (b)
120.What is the validity of the registration
certificate? d) None of the above

a) One year 124.Which of the following persons is required

b) No validity to obtain compulsory registration?
c) Valid till it is cancelled. a) Persons exclusively engaged in making
d) Five years supplies tax on which is to be paid by the
recipient on reverse charge basis under
121.Within how many days an application for section 9(3) of the CGST Act, 2017.
revocation of cancellation of registration can
b) Persons making inter-State supplies of
be made?
taxable services up to ` 20,00,000
a) Within 7 days from the date of service of c) Persons making supplies of services
the cancellation order. through an ECO (other than supplies
b) Within 15 days from the date of issue of specified under section 9(5) of the
the cancellation order. CGST Act) with aggregate turnover upto `
c) Within 45 days from the date of issue of 20,00,000
the cancellation order. d) None of the above
d) Within 30 days from the date of service of
the cancellation order 125.A non-resident taxable person is required to
apply for registration:
122.Rama Ltd. has provided following informa-
a) within 30 days from the date on which he
tion for the month of September:
becomes liable to registration
i) Intra-State outward supply ` 8,00,000/- b) within 60 days from the date on which he
ii) Inter-State exempt outward supply becomes liable to registration
`5,00,000/- c) at least 5 days prior to the commence-
C Block

iii) Turnover of exported goods ` 10,00,000/- ment of business

iv) Payment made for availing GTA services d) None of the above
`80,000/-
Calculate the aggregate turnover of Rama 126.Registration certificate granted to casual
Ltd. taxable person or non-resident taxable
a) ` 8,00,000/- person will be valid for:
b) ` 23,80,000/- a) Period specified in the registration
c) ` 23,00,000/- application
d) ` 18,00,000/- b) 90 days from the effective date of regis-
tration
123. ‘P’ Ltd. has its registered office, under the
c) Earlier of (a) or (b)
Companies Act, of Maharashtra from where
d) Later of (a) or (b)
it ordinarily carries on its business of taxable
goods. It also has a warehouse in the State of 127.Certificate of registration is issued in which
Telangana for storing said goods. What will be form?
the place of business of ‘P’ Ltd. under the GST a) Form GST REG-06
law?
b) Form GST REG-02

102 |MCQon Indirect Tax

 Registration

c) Form GST REG-03 d) Fifteen Lakh Rupees

d) Form GST REG-05 133. Section 24 of the CGST Act, 2017 requires
certain categories of persons who would
128.When an application for registration has
require compulsory registration irrespective
been submitted by the applicant after the
of threshold limit of turnover for obtaining
expiry of thirty days from the date of his
registration. Mr. A has following 4 business
becoming liable to registration, the effective
ideas in mind, which one of them would not
date of registration shall be:
require him to obtain compulsory registration
a) Date of grant of registration as per Section 24.
b) Date of application for registration a) Mr. A wants to trade in electronic
c) Within three working days from the components, where his area of supply
date of submission of the application would be majorly outside the State.
d) Within seven working days from the
b) Mr. A would like to carry on business relating
date of submission of application
to electronic commerce operator.
129.What is the aggregate turnover in a financial c ) Mr. A would like to trade in general items
year above which a person is required to within the same State and his monthly
obtain registration in Punjab? turnover may go upto INR 1 lakh.He will
receive services from a goods transport
a) Forty lakh agency for delivery of goods where he
b) Twenty lakh would be liable to pay tax under reverse
c) Twenty five lakh charge.
d) Twenty Two lakh d) Mr. A is a qualified doctor and has
recently left his job. He intends to become
130.What are the first two digits of HSN for
practitioner. He estimates his monthly
taxable services?
receipts to be INR 1,50,000. There is no
a) 01 other income accruing to him.
b) 34

C Block
134. Mr. X, a new client, comes to you to apply
c) 55
for a GST Registration for a proprietorship
d) 99
concern and has query on time limit for
131.When there is any change in particular of taking registration? Another question is that
application of registration then registered he would submit all the required documents
person shall inform such change in how many of registration now and will not be available
days? from tomorrow since he is travelling. He is
ready to provide Class 2 digital signatures
a) within fifteen days of such change
along with required documents. Can
b) within twenty days of such change application for registration be signed digitally
c) within thirty days of such change in his absence?
d) within twenty five days of such change
a) Mr. X should take registration within 7 days
132.What is the threshold limit for registration in from the date on which he becomes liable
the special category states? to registration. He would not have the
option to sign the application using Valid
a) Eleven Lakh Rupees
digital signatures.
b) Twenty Lakh Rupees b) Mr. X should take registration within 15
c) Ten Lakh Rupees days from the date on which he becomes

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liable to registration. He would have the c) Uttaranchal

option to sign the application using Valid d) Himachal Pradesh
digital signatures.
c) Mr. X should take registration within 30 136. Person not liable for registration under GST
days from the date on which he becomes Act
liable to registration. He would have the
a) Supplier of medicine
option to sign the application using Valid
b) Outdoor catering services
digital signatures.
d) Mr. X should take registration within 15 c) An agriculturist
days from the date on which he becomes d) Professional training centre
liable to registration. He would not have
137. Acknowledgement of application for
the option to sign the application using
registration under section 25 of GST is
Valid digital signatures.
received in Form
135. Which of the following is the special category a) GST REG 01
State as per Section 22 of CGST Act 2017
b) GST REG 02
a) Telengana c) GST REG 03
b) Chattisgarh d) GST REG

A n s we r s
1 d 2 b 3 c 4 b 5 d 6 a
7 d 8 a 9 d 10 c 11 c 12 a
13 b 14 a 15 d 16 c 17 b 18 d
19 c 20 d 21 d 22 b 23 d 24 a
25 c 26 a 27 b 28 c 29 a 30 c
C Block

31 c 32 c 33 b 34 c 35 b 36 c
37 a 38 b 39 d 40 d 41 b 42 a
43 c 44 c 45 d 46 a 47 a 48 a
49 a 50 c 51 a 52 a 53 b 54 b
55 a 56 c 57 b 58 c 59 b 60 a
61 a 62 d 63 c 64 a 65 d 66 b
67 c 68 a 69 a 70 d 71 a 72 a
73 d 74 d 75 c 76 b 77 b 78 d
79 d 80 b 81 c 82 c 83 c 84 b
85 b 86 b 87 a 88 a 89 d 90 a
91 a 92 d 93 a 94 b 95 b 96 a
97 b 98 a 99 d 100 c 101 c 102 b
103 c 104 a 105 a 106 b 107 a 108 b
109 b 110 a 111 a 112 d 113 c 114 c
115 d 116 d 117 c 118 d 119 b 120 c
121 d 122 c 123 c 124 d 125 c 126 c
127 a 128 a 129 b 130 d 131 c 132 c
133 d 134 c 135 d 136 c 137 b

104 |MCQon Indirect Tax

 Tax Invoice

Chapter 11
Tax Invoice
MMLTIPLE CCOICE QMESTIONS

1. A registered person, Mr. X supplies goods c) Debit Note

worth ` 150 to Mr. Y, an unregistered person. d) Receipt Voucher
Is it mandatory to issue tax invoice separately?
6. Banks may issue consolidated tax invoice on
a) Yes
monthly basis. Is it true?
b) No
c) No,even if Mr.Y asks for it a) Yes
d) None of the above b) No

2. Revised Invoice is a . 7. Bill of Supply is issued by the registered

person—
a) Debit/Credit Note
b) Receipt Voucher a) Paying tax under composition scheme
c) Credit Note b) Supplying exempted goods or services or
both
d) Tax Invoice
c) (a) & (b) both
3. shall accompany transport of goods d) None of the above
when e-way bill is not required.
8. Delivery Challan contains—
a) Delivery Challan
(i) HSN Code & description of goods (it) Name

C Block
b) Tax Invoice
& address of the transporter (iii) Name,
c) Bill of Supply address & GSTIN of Consignor (tv) Name,
d) (b)or(c) address & GSTIN of Consignee
a) (i), (ii) &(iii)
4. Tax Invoice must be issued within from
the date of removal of goods sent or taken on b) (i) & (iv)
approval for sale or return. c) (i), (iii) & (iv)
d) All of the above
a) 3 months
9. Delivery Challan shall be prepared in—
b) 30 days
c) 15 days a) Duplicate
d) 6 months b) Triplicate
c) Original only
5. Which document is to be issued by the d) (a) or (b), depends on consignor
consignor instead of tax invoice for
transportation of goods for job work? 10. Invoice cum Bill of Supply may be issued by
registered person
a) E-way Bill
a) supplying taxable as well as exempted
b) Delivery Challan goods and/or services

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 Tax Invoice

b) supplying taxable goods and exempted 15. HSN Code is code?

sendees
a) 8 digit
c) supplying taxable services and exempted
b) 6 digit
goods
d) supplying taxable as well as exempted c) 2 digit
services d) 10 digit

11. Revised invoice is an invoice which is issued 16. Tax Invoice shall be prepared in in case
against the invoice already issued of supply of goods and in in case of
a) during the period beginning with the supply of services.
date of application till the effective date of a) Duplicate, Duplicate
registration b) Duplicate,Triplicate
b) during the period beginning with the c) Triplicate, Duplicate
effective date of registration till the date of
d) Triplicate,Triplicate
issuance of registration certificate
c) during the period beginning with the date 17. The serial number of invoices issued during a
of application till the date of issuance of tax period shall be furnished in
registration certificate
a) GSTR-1
d) during the whole period prior to
b) GSTR-3B
registration
c) GSTR-2
12. Goods may be transported without issue of d) All of the above
invoice in case of
18. A registered taxable person shall, on receipt
a) supply of liquid gas where the quantity of advance payment w.r.t. any supply, issue
at the time of removal from the place of
a) Debit Note
business of the supplier is not known,
b) Credit Note
C Block

b) transportation of goods for job work,

c) Receipt Voucher
c) transportation of goods for reasons other
than by way of supply d) Tax Invoice
d) All of the above 19. If the supplier is an insurer/banking company/
financial institution/non-banking financial
13. Revised invoice can be issued within
company, tax invoice shall be issued within
from the date of issuance of registration
from the date of supply of service.
certificate.
a) 15 days
a) 60 days
b) 30 days
b) 90 days
c) 45 days
c) 6 months
d) 60 days
d) 1 month

14. Whether the recipient can claim ITC on the 20.Details of advances need not to be reported if
basis of revised invoices. the tax invoice is issued

a) Yes a) in same tax period

b) No b) in any tax period

106 |MCQon Indirect Tax

 Tax Invoice

c) within 30 days c) Yes, but if the value exceeds ` 5000

d) within 6 months d) Yes, but if the value exceeds ` 500

21. When payment is made by recipient of supply 26. ITC is not allowed on
to supplier in respect of supplies where tax
a) GST paid on Inter-State purchases
is payable under reverse charge, is
b) GST paid on Imports
required to be issued
c) GST paid after detection of fraud or
a) Debit Note suppression or goods removed in
b) Credit Note contravention of GST Act
c) Receipt Voucher d) All of the above
d) Payment Voucher
27. Tax Invoice shall be issued before or at the
22. If prices are increased after renegotiations, time of or of goods for supply to
the supplier should issue the recipient.
a) Credit Note with GST a) sale, delivery
b) Debit Note without GST b) removal,delivery
c) Credit Note without GST c) payment, delivery
d) Debit Note with GST d) removal,payment

23. Credit Note is issued when 28. When due date of payment is ascertainable,
a) Tax invoice is found to exceed the taxable tax invoice shall be issued on or before
value or tax payable a) due date of payment
b) Goods supplied are returned by the b) the date when supplier receives the
recipient payment
c) Goods or services supplied are found to be c) (a) or (b), whichever is earlier
deficient

C Block
d) (a) or (b), whichever is later
d) All of the above
29. When due date of payment is not
24.Debit Note is issued when ascertainable, tax invoice shall be issued on
a) Tax Invoice is found to be less than the or before
Taxable value or tax charged a) due date of payment
b) Tax invoice is found to exceed the taxable b) the date when supplier receives the
value or tax payable payment
c) Goods supplied are returned by the c) (a) or (b), whichever is earlier
recipient d) (a) or (b), whichever is later
d) Goods or services supplied are found to be
deficient 30. Where the supply of services ceases under a
contract before the completion of the supply,
25. Is it mandatory to indicate the the invoice
word“Revised Invoice”on revised tax a) Shall be issued during the next month
invoice? when the supply ceases
a) Yes b) Shall be issued at the time when the
b) No
MCQon Indirect Tax | 107
 Tax Invoice

payment is received b) 20.09.2018

c) Shall be issued at the time when the c) 28.09.2018
supply ceases d) Any of the above
d) Shall not be issued
36. can be issued to an unregistered
31.Debit note includes recipient during the period starting from the
effective date of registration till the date of
a) Tax Invoice
the issuance of the certificate of registration
b) Refund Voucher
except separate invoice be issued in case of
c) Receipt Voucher Inter-State supply exceeding value ` 2.5 lacs.
d) Supplementary Invoice
a) Consolidated Revised tax invoice
32. What are the cases in which there is supply b) Consolidated invoice
without movement of goods? c) Tax invoice
a) Agent who is in possession of certain d) Payment voucher
goods decides to buy the goods
37. Continuous supply of goods means a supply
b) On-site installation of machinery of goods which is provided, or agreed to be
c) Sale and lease back transactions provided
d) All of the above
a) Continuously or on recurrent basis
33.Mr. A is supplying legal sheets bundles to b) On irregular basis
an Advocate’s Office. He submitted the c) On irregular intervals
account of total supplies made during the 2 d) None of the above
months period on the 25th of alternate
38.Mr. Z had made a supply in April’ 2018. The
month. What type of supply is this?
party returned the goods in May’ 2018. In
a) Continuous supply of goods which month the note is to be reflected?
C Block

b) Continuous supply of services

a) April 2018
c) Composite supply
b) May 2018
d) Mixed supply
c) By 10th of April 2018
34.Do we have to tax issue an invoice even if we d) None of the above
remove goods for ‘sale on approval basis’?
39. In which return the details of credit notes is
a) Yes to be given?
b) No
a) GSTR-1
c) Maybe
b) GSTR-3B
d) None of the above
c) GSTR-4A
35. Mr. A had a contract for supplying manpower d) GSTR-2
for 28 days for ` 28,000. However, after 20 40. In which of the following situation will the
days, the service has stopped i.e. the service liability be reduced in case the credit note is
started on 01.09.2018 & ceased on 20.09.2018. being issued?
When should the invoice be raised?
a) If proven that the incidence of tax and
a) 01.09.2018 interest have not been passed on to any

108 |MCQon Indirect Tax

 Tax Invoice

person Transport Agency?

b) Details of the credit note are declared
a) Gross weight of the vehicle
within the prescribed timelines
b) GSTIN of the person liable to pay tax
c) Recipient of the supply should accept
c) Name of the Consignor and the Consignee
credit note in his return of inward supply
and reduce his claim of input tax credit d) Both (b) & (c)

d) All of the above 46. Bill number should not exceed

41. Debit Note can be issued only for increasing a) 16 digits

tax liability by the supplier? b) 8 digits
c) 15 digits
a) Yes
d) 10 digits
b) No
c) Maybe 47. True or false: In case of banking companies,
d) None of the above tax invoice would be treated as complete
even if it is not serially numbered.
42. A registered person shall issue a consolidated
tax invoice at the close of each day in respect a) True
of all such supplies, where the value of the b) False
goods or services or both supplied is , 48. In case proper officer checks the goods in
the recipient is not a registered person and movement, then what document shall be
does not require such invoice required apart from delivery challan to satisfy
a) less than ` 200 the proper officer?
b) ` 200 a) E-way bill
c) more than ` 200 b) Voucher
d) None of the above c) Invoice

C Block
43. A person is having turnover upto ` 5 crore. d) All of the above
Upto how many digits is he supposed to
49. Some of the customers of a registered
specify the HSN Code?
taxpayer asks the supplier not to mention
a) 2 digit the tax amount instead show a consolidated
b) 4 digit price in the invoice. Is this valid?
c) 6 digit a)Yes
d) 8 digit b) No
44. A person is having turnover of ` 25 crore.Upto c) It doesn’t make a difference
how many digits is he supposed to specify d) None of the above
the HSN Code?
50. Mr. A, a registered artist took the painting
a) 2 digit from his gallery on basis of Document 1 to an
b) 4 digit art house for subsequent sale. There he issued
c) 6 digit Document 2 to a customer while selling his
d) 8 digit art work. Name the Documents so issued.
a) Delivery Challan, tax invoice
45. What are the mandatory details required in
the invoice/document issued by a Goods b) Delivery Challan, Bill of supply

MCQon Indirect Tax | 109

 Tax Invoice

c) Invoice,Bill of supply 56. In case of taxable supply of services by a non-

d) E way bill, bill of supply banking financial company (NBFC), invoice
shall be issued within a period of
51. is required for sending the goods on from the date of supply of service.
job work.
a) 30 days
a) E-way bill b) 45 days
b) Delivery Challan c) 60 days
c) Tax invoice d) 90 days
d) Both (a) & (b)
57. Where the goods being sent or taken on
52. Refund Voucher shall be issued if supply is not approval for sale or return are removed before
made and tax invoice not issued against the supply takes place, the invoice shall be
a) Debit Note issued:
b) Receipt Voucher a) before/at the time of supply.
c) Credit Note b) 6 months from the date of removal.
d) Bill of Supply c) Earlier of (a) or (b).
d) Later of (a) or (b)
53. Tax Invoice must be issued by:
a) Every supplier 58. Invoice shall be prepared in (i)
b) Every taxable person in case of taxable supply of goods and in
c) Registered persons, not paying tax under (ii) in case of taxable supply
composition scheme of services.
d) all the above. a) (i) Triplicate, (ii) Duplicate
b) (i) Duplicate, (ii) Triplicate
54. Invoice shall be prepared in (i)
c) (i) Duplicate, (ii) Duplicate
C Block

in case of taxable supply of goods and in

d) None of the above
(ii) in case of taxable supply
of services. 59. Mr. A has a tax invoice [dated 20-1-2018] of
a) (i) Triplicate, (ii) Duplicate services received by him. Its input tax credit is
b) (i) Duplicate, (ii) Triplicate lost if ITC is not availed on or before–
c) (i) Duplicate, (ii) Duplicate a) 20-1-2019.
d) None of the above b) 31-12-2018.
c) 20-1-2020.
55. Mr. X, a registered person, deals in supply of
d) date of filing return of September, 2018 or
taxable goods. He need not issue tax invoice
date of filing of annual return for 2017-18,
for the goods supplied on 16.04.20XX as the
whichever is earlier
value of the goods is .
a) ` 1,200 60. Input tax credit shall not be available in
respect of:
b) ` 600
c) ` 150 a) Goods used for personal consumption
d) ` 200 b) Membership of a club
c) Travel benefits extended to employees

110 |MCQon Indirect Tax

 Tax Invoice

on vacation such as leave or home travel a) Revised invoice cannot be issued in the
concession given case.
d) All of the Above b) Revised invoices can be issued for
supplies made between October 3, 20XX
61. In which of the following cases, goods can be and November 5, 20XX. Further, the
transported without issue of tax invoice? revised invoices can be issued for 20XX
a) Transportation of goods for job work and November 5, 20XX. Further, the
b) Supply of liquid gas where the quantity revised invoices can be issued for the said
at the time of removal from the place of period till December 31, 20XX.
business of the supplier is not known d) Revised invoices can be issued for
c) Transportation of goods for reasons other supplies made between July 1, 20XX and
than by way of supply November 5, 20XX. Further, the revised
d) All of the above invoices can be issued for the said period
till December 31, 20XX.
62. Avtaar Enterprises, Kanpur started trading
63. An Input Services Distributor will have to file
in ayurvedic medicines from July 1, 20XX.
return in GSTR 6
Its turnover exceeded ` 20 lakh on October
3, 20XX. The firm applied for registration on (a) Monthly
October 31, 20XX and was issued registration (b) Quarterly
certificate on November 5, 20XX. Can any (c) Every six month
revised invoice be issued in the given (d) Annually
scenario? If the answer to the first question
64. A dealer may issue single credit note for
is in affirmative, determine the period for
which the revised invoices can be issued as (a) For one invoice
also the last date upto which the same can be (b) For two invoices
issued. (c) For three invoices

C Block
(d) For multiple invoices
65. Kutch Refineries supplies LPG to XYZ Ltd. by a pipeline under a contract. The terms of contract are:
(i) Monthly payment of `2 lakh to be made by the recipient on fifth day of the month.
(ii) A quarterly statement of the goods dispatched and payments made will be issued by seventh
day of the month succeeding the relevant quarter.
August 5, September 5, Payments of ` 2 lakh made in each month
October 5
October 7, Statement of accounts issued by supplier for the quarter
July – September
October 17, Differential payment of `56,000 received by supplier for
the quarter July – September as per statement of accounts
Which of the following statements is true?
a) Invoice will be issued on August 5, September 5, October 5 and October 7.
b) Invoice will be issued on August 5, September 5 and October 5.
c) Invoice will be issued on August 5, September 5, October 5, October 7 and October 17
d) None of the above

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MCQon Indirect Tax
 Tax Invoice

A n s we r s
1 b 2 d 3 a 4 d 5 b 6 a
7 c 8 d 9 b 10 a 11 b 12 d
13 d 14 a 15 a 16 c 17 a 18 c
19 c 20 a 21 d 22 d 23 a 24 a
25 a 26 c 27 b 28 a 29 b 30 c
31 d 32 d 33 a 34 c 35 b 36 a
37 a 38 b 39 a 40 d 41 a 42 a
43 a 44 b 45 d 46 a 47 a 48 a
49 b 50 a 51 d 52 b 53 c 54 a
55 c 56 b 57 c 58 a 59 d 60 d
61 d 62 a 63 a 64 d 65 b
C Block

112 |MCQon Indirect Tax

 Tax Invoice

MATCC TCE FOLLOo ING

Column A Column B
1 The turnover of a registered person will A Supplier of herbal products
be computed
2 Registration under GST is compulsory for B Credit note issued
3 Casual taxable person can apply for C GSTR - 5
registration in Form
4 The non resident taxable person shall D PAN wise
furnish return in Form
5 The tax liability of the registered person E Electronics commerce operator
will be adjusted in accordance with the
F GSTR - 1
[Answer : D, E, G, C, B]

TRME OR FALSE
1. Multiple registration is permitted for separate business vertical.
2. Nonresident taxable person making taxable supply need not require to be registered under GST.
3. The legal heir of a registered person are allowed to cancel GST registration.
4. A bill of supply be issued by the supplier not require to mention HSN code of goods or Accounting
codes for services
5. Certificate of registration for GST is generated in form REG 06

[Answer: 1. True, 2. False, 3. True, 4. False, 5. True]

C Block
FILL INTCE BLANKS
1. GST registration is the most fundamental requirements for of tax payer ensuring
tax compliances in the economy.
2. Compulsory registration is required for persons who are to pay tax under .
3. GST registration of a person can be cancelled by a proper GST officer if a normal registered person
do not file returns consecutively for .
4. Under GST a tax invoice is an essential document for the recipient to avail .
5. In case of a revised invoice the word wherever applicable indicated
prominently.

[Answer : identification, reverse charge, six month, Input tax credit, Revised Invoice]

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MCQon Indirect Tax
 Block - D
Payment o f Taxes
 Payment of Taxes

Chapter 12
Payment o f Taxes
MMLTIPLE CCOICE QMESTIONS
1. Which of the following registers/ledgers are payment for outward supply. Such credit is
maintained at the GST Portal? reflected in GST portal in,
a) Electronic liability ledger a) Electronic Cash ledger
b) Electronic cash ledger b) Electronic liability ledger
c) Electronic credit ledger c) Electronic Credit ledger
d) All of the above d) All of the above

2. A. The tax due can be paid either by cash or 6. The major heads in the electronic cash ledger,
through utilization of input tax credit. electronic liability register and challan for
deposit of tax are
B. Payment of interest, penalty, fee and other
payments have to be made through credit a) IGST, CGST, SGST, UTGST & GST
only. Compensation Cess
Comment on the above statements, b) Tax, Interest, Penalty, Fee, others & total
a) A - Correct, B - Incorrect c) Total - cash, liability
b) A - Incorrect, B - Correct d) All of the above
c) Both A & B - Correct
7. In each major heads in the electronic cash
d) -Both A & B - incorrect
ledger, electronic liability register and challan
3. Payment of tax made electronically is for deposit of tax, the minor heads are,
reflected in, a) CGST, SGST, UTGST & GST Compensation
a) Electronic cash ledger Cess
b) Electronic credit ledger b) Tax, Interest, Penalty, Fee, others & total
c) Electronic liability ledger c) Total - cash, liability
d) All of the above. d) All of the above
D Block

4. Payment made through challan will be 8. Credit available in Electronic Credit Ledger
credited to which registers/ledgers? can be used for payment of,

a) Electronic Tax liability register a) Output Tax

b) Electronic Credit ledger b) Output Tax & Interest
c) Electronic Cash ledger c) Output Tax, Interest & Penalty
d) All of the above d) Output Tax & Tax under reverse charge

5. While making purchases the dealer has to pay 9. A. In Electronic Credit Ledger, there will be
GST which is available as credit while making only column of tax, as interest, penalty,

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MCQon Indirect Tax
 Payment of Taxes

fee and other payments cannot be made c) NEFT or RTGS

through ITC. d) Any of the above
B. ITC cannot be utilised for payment of tax 14. When the payment made through challan is
under reverse charge mechanism. successful, is credited with the amount
Comment on the above statements, deposited and then the fund may be utilised
a) A - Correct, B - Incorrect for discharge of liability.
b) A - Incorrect, B - Correct
a) Electronic Liability ledger
c) Both A & B - Correct
b) Electronic Credit ledger
d) Both A & B - Incorrect
c) Electronic Cash ledger
10. Payment of tax for each month shall be made d) Any of the above
by electronic cash ledger or electronic
15. Challan in FORM GST PMT-06 generated at
credit ledger on or before the due date of
the common portal shall be valid for a period
filing return.
of .
a) Crediting
a) 7 days
b) Debiting
b) 15 days
c) Capitalising
c) 20 days
d) Both (a) & (c)
d) 30 days
11. Payment of tax, interest or penalty for each
16. It is to generate Challans online on the
month shall be made by debiting on or
GST Portal.
before the due date of filing return.
a) Mandatory
a) Electronic Cash ledger
b) Optional
b) Electronic Credit ledger
c) Advised
c) Electronic Liability ledger
d) Not necessary
d) Both (a) & (b)

12. What is deemed to be the date of deposit in 17. What is the full form of CPIN?
the electronic cash ledger? a) Challan Identification Number
a) Date on which amount gets debited in the b) Common Portal Identification Number
account of the taxable person c) Challan Pin Identification Number
b) Date on which payment is initiated and d) Common Pin Identification Number
approved by the taxable person
D Block

18. What is CPIN?

c) Date of credit to the account of the
appropriate Government a) 14 digit unique number to identify the
challan
d) Earliest of the above three dates
b) 12 digit unique number to identify the
13. The taxpayer has options to deposit amount challan
in the Electronic cash ledger through . c) 14 digit unique number to identify tax
payment
a) Internet Banking
d) 12 digit unique number to identify tax
b) Credit or debit cards
payment

118 | MCQon Indirect Tax

 Payment of Taxes

19. Credit available in electronic credit ledger can he decided to pay tax on 25.09.2018. What
be utilized against which liability? would be the amount of interest that has to
be paid by him?
a) Output tax liability
b) Interest liability a) ` 325
c) Penalty b) ` 330
d) All of the above c) ` 434
d) ` 441
20. What is the full form of CIN?
a) Challan Identification Number 26. In case of generation of challan for payment
of tax, interest, penalty or fee, over the
b) Common Portal Identification Number
Counter payment (OTC) can be made through
c) Common Inquiry Number
authorized banks for deposits up to ` 10,000,
d) Challan Inquiry- Number
by .
21. What is the full form of BRN? a) cash
a) Bank Reconciliation Number b) cheque
b) Bank Reconciliation Notification c) demand draft
c) Bank Reference Notification d) Any of the above
d) Bank Reference Number 27. The restriction for deposit up to ` 10,000 per
challan in case of an Over the Counter (OTC)
22. What is Bank Reference Number (BRN)?
payment shall not apply to deposit to be
a) Transaction number given by the bank for made by,
a payment against a Challan
a) Government Departments or any other
b) Transaction number given by bank for
deposit to be made by persons as notified
settlement of liability
by the Commissioner
c) Reference number for filing of return
b) Proper officer to recover outstanding dues
d) All of the above from any person, whether registered or
not
23. What is the full form of E-FPB?
c) Proper officer for the amounts collected
a) Electronic Focal Point Branch by way of cash, cheque or DD during any
b) Electronic Final Payment Branch investigation activity
c) Electronic Finance Policy banking d) All of the above
d) Electronic Finance Payment Branch
28. Any payment required to be made by a
D Block

24. What is E-FPB? person who is not registered under the Act,
a) Authorized branches of banks to collect shall be made on the basis of a .
payment of GST. a) Temporary Identification Number
b) Prescribed banks to distribute GST forms b) Transaction Reference Number
c) Prescribed banks for GST workshops c) Challan Identification Number
d) All of the above d) Bank Reference Number

25. Mr. Uday was liable to pay GST of ` 10,000 29. TIN (Temporary identification number) is to
on 20.07.2018 but he failed to pay. Later be generated through the common portal for

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MCQon Indirect Tax
 Payment of Taxes

payment of any liability under the act by, of any liability under this Act. The ITC under
SGST/ UTGST shall be used against .
a) Registered Person
b) Unregistered Person a) SGST/UTGST Liability only
c) Casual Taxable Person b) SGST/UTGST & IGST liability
d) Input Service Distributor c) SGST/UTGST, IGST and CGST liability
30. Where a person has claimed refund of any d) None of them
amount from the electronic cash ledger, the 35. A. The ITC under CGST shall not be utilised
said amount shall be debited to the . towards payment of SGST/UTGST.
a) Electronic Credit Ledger B. The ITC under SGST/UTGST shall not be
b) Electronic Liability Ledger utilized towards payment of CGST.
c) Electronic Cash Ledger
Comment on the above statements,
d) Whichever has the higher balance of
above a)A - Correct, B - Incorrect
b) A - Incorrect, B - Correct
31. In which of the cases ITC available in c) Both A & B - Correct
electronic credit ledger cannot be utilised for
d) Both A & B - Incorrect
adjustment?
36. All liabilities of a taxable person under this
a) Output Tax
Act shall be recorded and maintained in an
b) Tax Payable under reverse charge basis
.
c) Payment of Interest
d) Both (b) & (c) a) Electronic Credit ledger
b) Electronic Liability register
32. Credit available in electronic credit ledger
c) Electronic Payment register
shall be debited to the extent of discharge of
any liability under this Act.The ITC under IGST d) All of the above
shall be used against 37. The electronic liability register of the person
a) IGST Liability only shall be debited by,
b) IGST & CGST liability a) the amount payable towards tax,
c) IGST,CGST and SGST/UTGST liability interest, late fee, etc. as per the return
d) None of them furnished
33. Credit available in electronic credit ledger b) the amount of tax, interest, penalty, etc.
shall be debited to the extent of discharge as determined by a proper officer in
D Block

of any liability under this Act. The ITC under pursuance of any proceedings
CGST shall be used against c) any amount of interest that may accrue
from time to time
a) CGST Liability only
b) CGST & IGST liability d) all of the above
38. What should the assessee do if he pay’s the
c) CGST, IGST and SGST/UTGST liability wrong tax like IGST instead of CGST/SGST or
d) None of them vice versa?
34. Credit available in electronic credit ledger a) Remit tax again and claim refund of tax
shall be debited to the extent of discharge wrongly paid

120 | MCQon Indirect Tax

 Payment of Taxes

b) It will be auto-adjusted a) Gross tax payable

c) It will be adjusted on application/request b) Gross tax payable & input credit claimed
d) None of the above c) Net tax payable i.e. amount to be paid
after ITC set off
39. What is the due date for payment of tax? d) No interest payable, if reasonable cause is
a) Last day of the month to which payment shown
relates
44. In which of the following cases an assessee is
b) Within 10 days of the subsequent month
liable to pay interest?
c) Within 20 days of the subsequent month
d) Within 15 days of the subsequent month a) Delay in payment of tax
b) Excess claim of ITC
40. The electronic credit ledger can be updated c) Excess reduction in output tax liability
through by the registered person.
d) All of the above
a) Return filed
45. What is the rate of interest in case of belated
b) Cash deposit
payment of tax?
c) Cheque deposit
d) All of the above a) 1%
b) 10%
41. Every taxable person shall discharge his tax c) 18%
and other dues under this Act in the following d) 24%
order,
46. What is the rate of interest in case of undue or
1) Dues related to returns of previous tax excess claim of ITC?
periods;
2) Dues related to the return of the current a) 18%
tax period; b) 24%
3) Demand u/s 73 or 74. c) 30%
Which is the proper order to discharge the d) 40%
above liabilities?
47. The rate of interest for delayed payment of tax
a) 3, 2, 1
shall be notified by the Government on the
b) 3, 1, 2
basis of the recommendation of the Council.
c) 1,2,3 For calculation of period for which interest is
d) 1,3,2 to be paid, shall be taken.
42. Only balance of electronic credit ledger can a) The day succeeding the due date
D Block

be used in case of, b) The day preceding the due date

a) Amount payable under reverse charge c) The day after 3 days grace
b) Amount payable as Interest d) The day after 7 days grace
c) Amount payable by composition dealer 48. Mr. Uday was liable to pay GST of ` 10,000
d) None of the above on 20.07.2018 but he failed to pay. Later he
decided to pay tax on 25.10.2018. What would
43. A taxable person failed to pay tax and/or file be the rate of interest applicable for him for
returns on time. He should pay interest on? delayed payment of such tax?

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 Payment of Taxes

a) 2% a) GSTN
b) 5% b) SBI
c) 12% c) Common portal
d) 18% d) Either of the above
49. Mr. Uday was liable to pay GST of ` 10,000 54. Person supplying OIDAR service from out of
on 20.07.2018 but he failed to pay. Later India to a non-taxable online recipient may
he decided to pay tax on 25.09.2018. What deposit the amount in electronic cash ledger
would be the period for which interest has to through CBIC payment system i.e. .
be paid by him?
a) 66 days a) Electronic Payment System in excise &
service tax
b) 67 days
b) Electronic Accounting System in Goods &
c) 68 days
service tax
d) 70 days
c) Electronic Accounting System in excise &
50. In case of generation of challan for payment service tax
of tax, interest, penalty or fee, over the d) Electronic Accounting Transfer in excise &
Counter payment (OTC) can be made through service tax
authorized banks for deposits up to by
cash, cheque or demand draft. 55. Can SGST paid in one State be utilised for
payment of SGST in another state?
a) ` 10,000 per day
b) ` 10,000 per challan a) Yes
c) ` 10,000 per challan per tax period b) No
d) ` 10,000 per challan per day c ) May be
d) It does not matter
51. Payment of taxes is required filing of
return. 56. is made in the electronic credit ledger
if the refund of unutilised credit is claimed
a) Before
under section 54.
b) After
c) Before or after a) Debit
d) Before or at the time of b) Credit
c) Set off
52. The input tax credit as in the return
d) None of these
of a taxable person shall be credited to his
D Block

electronic credit ledger in accordance with 57. Should the payment of taxes be made only
the relevant provisions of the Act. from the account of the taxable person?

a) Finally assessed a) Yes

b) Self-assessed b) No
c) Permitted by the proper officer c) No, only if authorisation letter is given by
d) Any of the above the owner
d) None of the above
53. Mr. A, made the payment of tax via SBI on the
GST portal. Who shall generate the CIN? 58. How many challans can be created in a day?

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 Payment of Taxes

a) One d) No such condition is mandatory

b) Two
62. The due date of filing Final Return is .
c) Ten
d) Unlimited a) 20th of the next month
b) 18th of the month succeeding the quarter
59. Balance in electronic credit ledger can be c) Within 3 months of the date of cancellation
utilized against which liability? or date of order of cancellation, whichever
a)Output tax payable is later
b) Interest d) 31st December of next financial year
c) Penalty
63. Mr. Y was filing GSTR 3B for month of July
d) All of the above
and had a tax liability of INR 5000/- which he
60. What is the due date for payment of tax for a had to deposit. While making the payment of
normal taxpayer? GST online on 17th August, the payment was
deducted from his bank account but was not
a) Last day of the month to which credited to Electronic Cash Ledger in his GST
payment relates portal. On 18th August, he started following
b) Within 10 days of the subsequent month up with GST help-desk but no solution came
c) Within 20 days of the subsequent out. He kept log of his follow-up on Grievance
month Redressal Portal on 18th August, but the
d) Within 15 days of the subsequent payment got credited to Electronic Cash
month Ledger only on 19th August. On 20th August
Mr. Y submitted and filed GSTR 3B for the July
61. Which of the following shall be discharged
month. Now what date will be considered as
first, while discharging liability of a taxable
date of deposit of tax dues in this case?
person?
a) 17th August
a) All dues related to previous tax period
b) 18th August
b) All dues related to current tax period
c) 19th August
c) Demand raised under section 73 and 74
d) 20th August
D Block

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A n s we r s
1 d 2 a 3 a 4 c 5 c 6 a
7 b 8 a 9 c 10 b 11 a 12 c
13 d 14 c 15 b 16 a 17 b 18 a
19 a 20 a 21 d 22 a 23 a 24 a
25 b 26 d 27 d 28 a 29 c 30 c
31 c 32 c 33 b 34 b 35 c 36 b
37 d 38 a 39 c 40 a 41 c 42 d
43 c 44 d 45 c 46 b 47 a 48 d
49 b 50 c 51 d 52 b 53 b 54 c
55 b 56 a 57 b 58 d 59 a 60 c
61 a 62 c 63 c
D Block

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 Payment of Taxes

MATCC TCE FOLLOo ING

Column A Column B
1 Under GST the tax to be paid is mainly A Electronics cash ledger
divided into
2 E commerce operator is required collect B Output tax payable and paid
and pay
3 Every deposit made towards tax, interest, C Serially numbered
penalty through
4 Every registered person is required to D TCS
maintain a true account of
5 each volume of books of accounts E IGST,CGST and SGST
maintain manually by the registered
person shall be
[Answer : E, D, A, B, C]

TRME OR FALSE
1. Every registered person are not bound to produce the books of accounts which is required to
maintain under any law for the time in force.
2. The recipient is required to maintain books of accounts in relation to the goods stored at the
godown of the transporter.
3. As per the CGST Act 2017 the Central tax can be utilized towards payment of State tax or Union
territory tax.
4. Any person or persons on his behalf shall generate a challan in Form GST PMT – 6 on the common
portal for payment of tax, interest etc.
5. Credit of SGST /UTGST can be used for payment of IGST only after exhausting credit of IGST and CGST.

[Answer: 1. False, 2. True, 3. False, 4. True, 5. True]

FILL INTCE BLANKS

1. Every registered person is required to the taxes payable and furnish return
for each tax period.
D Block

2. Every registered person shall keep the particular of names and of the person to
whom he has supplied goods or services.
3. Place of business includes a a or any other place where a taxable person
stores it’s goods, supplies or services both.
4. Question of interest on late payment arises when Input tax credit has been claimed in
or where it was not to be claimed, tax liability has been shown to be less than the
actual.
5. Any discrepancy in the electronic liability register, shall be informed to jurisdictional officer in
Form electronically.

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Answer :
(a) self assess

(b) complete address

(c)warehouse,godown

(d) excess, eligible

(e)GST TMT – 4
D Block

126 |MCQon Indirect Tax

 Block - E
TDS, TCS & Returns
 TDS, TCS & Returns

Chapter 13
TDS, TCS & Returns
MMLTIPLE CCOICE QMESTIONS
1. GST Returns are to be filed c) after or at the time of filing return
a) Manually d) before or at the time of filing return
b) Electronically 6. In case there is no transaction during the
c) (a)or(b) relevant period, Nil Return is required to be
d) (a) and (b) both filed by all .

2. Invoice-wise details of supplies made by a) Taxable persons

taxable person are filed in . b) Persons liable to pay tax
c) Registered persons
a) GSTR-1
d) Composition dealer
b) GSTR-2
c) GSTR-3 7. Every e-commerce operator required to
d) All of the above collect tax at source under section 52 of CGST
Act shall furnish the return in
3. Return is for taxable persons with
turnover exceeding ` 1.50 crores and a) Form GSTR-8
for taxable persons with turnover upto ` 1.50 b) Form GSTR-9A
crores. c) Form GSTR-9B
a) monthly,annually d) Form GSTR-9C
b) quarterly,monthly 8. Any input tax credit omitted to be taken in a
c) monthly, quarterly financial year can be taken on or before
d) annually,monthly
a) filing return for September of next financial
4. Input Service Distributor (ISD), tax deductor year
and tax collector are required to file return b) Annual return of the financial year
c) (a) or (b), whichever is earlier
a) annually d) (a) or (b), whichever is later
b) quarterly 9. Tax Invoices and credit/debit notes can be
c) monthly uploaded only by -
d) half-yearly
a) supplier of goods or services or both
5. In case of monthly returns, taxes will be b) recipient of goods or services or both
payable . c) a Chartered Accountant
a) before filing the return d) GST Practitioner
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b) at the time of filing return 10. In proposed return structure, invoices can be

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uploaded by supplier on basis a) Quarterly, 18 days after the end of such

quarter
a) Daily
b) Monthly, 20 days after the end of such
b) Monthly
month
c) Weekly
c) Quarterly, 20 days after the end of such
d) Any of the above quarter
11. Can GST return be filed without full tax d) Monthly, 18 days after the end of such
payment? month

a) Yes 17. Rectification of mistake in returns is not

b) No allowed after the -
c) Yes, with self-declaration a) due date for filing of return for the month
d) Yes,if unpaid tax amount is less than 200 of September following the end of the
financial year
12. Recipient of goods or services can the
b) actual date of filing of relevant annual
invoices uploaded by the supplier.
return
a) Accept c) (a) or (b), whichever is earlier
b) Reject d) (a) or (b), whichever is later
c) Keep the invoices pending
d) Any of the above 18. A registered person shall not be allowed to
furnish a return for a tax period if -
13. If payment is not made within ,
corresponding ITC is required to be reversed. a) the return for any of the previous tax
periods has not been furnished by him
a) 30 days b) the amount of tax for the period is not fully
b) 60 days paid
c) 90 days c) (a) and (b) both
d) 180 days d) (a) or (b)
14. “Exempt supply” means supply of any goods 19. Details of outward supplies include details of
or services or both issued in relation to outward supplies.
a) which is not leviable to tax a) Invoices
b) on which tax is payable on reverse charge b)Debit & Credit notes
basis c) Revised invoices
c) to a person having the same Income Tax d) All of the above
PAN
20. Who among the following, is not required to
d) which attracts Nil rate of tax
file GSTR -1?
15. Can the recipient claim ITC on pending a) Input Service Distributor
invoices?
b) Deductor u/s 51
a) Yes c) Supplier of OIDAR services
b) No d) All of the above

16. Composition Dealer shall file return 21. What will be the Late fee if GSTR-1 return not
E Block

within filed in time by the registered person having

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 TDS, TCS & Returns

transactions during that relevant period? a) Part A of Form GSTR-2A

a) ` 25 per day of CGST and SGST/UTGST each b) Part B of Form GSTR-2A
b) ` 50 per day of CGST and SGST/UTGST c) Form GSTR-4A
each d) Form GSTR-6A
c) ` 10 per day of CGST and SGST/UTGST
27. Details of outward supplies furnished by
each
the supplier shall be made available to the
d) ` 20 per day of CGST and SGST/UTGST
concerned recipients (person paying under
each
composition scheme) in
22. Upper ceiling of late fees for GSTR - 1 is a) Part A of Form GSTR-2A
a) ` 5,000 per return b) Part B of Form GSTR-2A
b) ` 10,000 per return c) Form GSTR-4A
c) ` 15,000 per return d) Form GSTR-6A
d) ` 20,000 per return 28.Details of inward supplies received by an ISD
shall be reflected in:
23. Details of outward supplies of goods or
services by registered person paying tax a) Part A of Form GSTR-2A
under normal scheme shall be submitted in b) Part B of Form GSTR-2A
a) FORM GSTR - 1 c) Form GSTR-4A
b) FORM GSTR - 4 d) Form GSTR-6A
c) FORM GSTR - 6 29. Supplies made by SEZ without payment of
d) FORM GSTR - 7 taxes will be reported by SEZ unit in
24. Details of outward supplies of goods or a) FORM GSTR - 1
services by registered person paying tax under b) FORM GSTR-4
composition scheme shall be submitted in c) FORM GSTR-6
d) FORM GSTR - 7
a) FORM GSTR - 1
b) FORM GSTR - 4 30. Supplies made by SEZ on cover of Bill of Entry
c) FORM GSTR - 6 shall be reported by DTA unit in
d) FORM GSTR - 7 a) FORM GSTR - 1
b) FORM GSTR-2
25. Which return is to be submitted by ISD?
c) FORM GSTR-4
a) FORM GSTR - 1 d) FORM GSTR - 6
b) FORM GSTR-4
31. Exempted supply’includes –
c) FORM GSTR-6
d) FORM GSTR -7 a) Zero-rated supply
b) Non-taxable supply
26. Details of outward supplies furnished by c) GST rated supply
the supplier shall be made available to the d) All of the above
concerned recipients (registered person
paying tax under normal scheme) in 32. Non-GST supply means
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a) supply of petroleum products and

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alcoholic liquor a) within 7 days after the end of such month

b) supply of money b) within 10 days after the end of such month
c)supply of securities c) within 13 days after the end of such month
d) All of the above d) within 20 days after the end of such month

33. Among the following, which is an exempted 39. It is mandatory to report HSN code at 4 digits
supply? level for taxpayers having annual turnover of
in the preceding year.
a) Supply of Agricultural products
b) Supply of petroleum products and a) Upto ` 1.50 Cr
alcoholic liquor b) Above ` 1.50 Cr
c) Supply of money or securities c) Upto ` 5.00 Cr
d) All of the above d) Above ` 5.00 Cr

34. Registered person paying tax under normal 40. Supplier of OIDAR services is required to file
scheme shall submit GSTR - 3B monthly return monthly
a) within 7 days after the end of such month a) within 7 days after the end of such month
b) within 10 days after the end of such month b) within 10 days after the end of such month
c) within 18 days after the end of such month c) within 13 days after the end of such month
d) within 20 days after the end of such month d) within 20 days after the end of such month

35. Registered person paying tax under 41. It is mandatory to report HSN code at 2 digits
composition scheme shall submit GSTR - 4 level for taxpayers having annual turnover in
quarterly the preceding year
a) within 7 days after the end of such month a) Above ` 1.50 Cr
b) within 10 days after the end of such month b) Upto ` 5.00 Cr
c) within 18 days after the end of such month c) (a) or (b)
d) within 20 days after the end of such month d) (a) and/or (b)

36. Which of the following is an exception while 42. Amount in electronic cash ledger actually
calculating aggregate turnover? amounts to -
a) Exempt supplies a) Debit of taxable person paid in cash
b) Exports of goods or services or both b) Credit of taxable person paid in cash
c) Interest or discount received by him on c) Input Tax Credit available
deposits, loans or advances d) All of the above
d) All of the above
43. Every registered taxable person who has
37. Deductor deducting tax under section 51 is made outward supplies in the period
required to file GSTR - 7 monthly between the date on which he became
liable to registration till the date on which
a) within 7 days after the end of such month
registration has been granted shall declare
b) within 10 days after the end of such month
the same in the
c) within 18 days after the end of such month
d) within 20 days after the end of such month a) first return filed by him after grant of
registration
38. Input Service Distributor (ISD) is required to
E Block

b) first two returns filed by him after grant of

file return monthly

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 TDS, TCS & Returns

registration a) Last Return

c) FORM GSTR - 7 b) Final Return
d) FORM GSTR - 11 c) Closing Return
d) None of the above
44. Can one amend the GSTR-3B return after
filing? 49. Final Return shall be furnished in

a) Yes a) Form GSTR- 8

b) Form GSTR-9
b) No
c) Form GSTR-10
c) Yes, but some specific details
d) Form GSTR-11
d) Yes,one can adjust the same in next return
50. Final Return in Form GSTR - 10 shall be
45.Due date of Annual return is -
furnished
a) 20th December following the close of
financial year a) Within 3 months of the date of cancellation
b) 31st January following the close of b) Within 3 months of the date of cancellation
financial year order
c) 31st December following the close of c) (a) or (b), whichever is earlier
financial year d) (a) or (b), whichever is later
d) 31st March following the close of financial 51. Who is not required to file final return?
year
a) Input service distributor
46. Annual return is to be filed by - b) Non-resident taxable person
a) Registered person supplying goods or c) Composition dealer
services or both d) All of the above
b) Input Service Distributor
c) E-commerce operator paying TCS under 52. Every registered non-resident taxable person
section 52 shall furnish a return in
d) Casual taxable person a) Form GSTR - 4
b) Form GSTR - 5
47. Every registered person whose aggregate
turnover during a financial year exceeds 2 c) Form GSTR - 6
crore rupees shall get his accounts audited d) Form GSTR-7
and furnish a copy of audited annual accounts
53. Input Service Distributor shall furnish a return
and a reconciliation statement, duly certified,
in -
in
a) Form GSTR - 4
a) Form GSTR-9
b) Form GSTR - 5
b) Form GSTR-9C
c) Form GSTR - 6
c) Form GSTR - 11
d) Form GSTR - 11A d) Form GSTR - 7

48. Every registered taxable person who is 54. Every UIN holder who claims refund of the
required to file return under section 39(1) of taxes paid on his inward supplies, shall
CGST Act and whose registration has been furnish the details of such supplies along with
cancelled shall furnish application for refund in
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a) Form GSTR-9 60. Annual Return by taxable persons paying tax

b) Form GSTR-10 under composition scheme shall be furnished
c) Form GSTR-11 in
d) Form GSTR-9C a) Form GSTR- 9
b) Form GSTR-9A
55. Annual Return by taxable persons paying tax
under normal scheme shall be furnished in c) Form GSTR-9C
d) Form GSTR - 10
a) Form GSTR- 8
b) Form GSTR- 9 61. Rectification can be done only through
c) Form GSTR-10 subsequent
d) Form GSTR-11 a) GSTR-1 and GSTR-3B returns
b) Annual return
56. Annual Audit Report shall be furnished in
c) (a)or(b)
a) Form GSTR - 9 d) (a) and (b) both
b) Form GSTR - 9C
c) Form GSTR- 11 62. Annual return has to be filed under
d) Form GSTR - 11A a) Section 41 of CGST Act
b) Section 42 of CGST Act
57. Annual Audit Report is required to be certified
by practicing c) Section 43 of CGST Act
d) Section 44 of CGST Act
a) CA
b) CMA 63. The recipient can claim ITC only on the basis
of the uploaded tax invoices or debit notes &
c) CA or CMA
d) CA and CMA both
a) invoices not uploaded
58. Who has to file annual returns?
b) debit notes not uploaded
a) Those charging GST invoices paying GST
c) not otherwise.
on monthly basis
d) invoices amended
b) Persons paying GST under composition
scheme. 64. These shall of input tax credit at the
c) Registered person supplying goods or recipient’s end where tax has not been paid
services or both by the supplier.
d) All of the above a) be automatic reversal
59. Taxable person with same PAN but multiple b) not be any automatic reversal
GSTIN has to file annual return in c) be no manual reversal
GSTR-9 and annual audit report in form d) be a manual reversal
GSTR-9C for each GSTIN
65. Once the shipping bill details are been given
a) separate, consolidated
in the GST Returns, it gets transmitted to
b) separate, separate
c) consolidated, separate
a) ICEGATE
E Block

d) consolidated, consolidated
b) ICAGATE

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c) CBEC a) Yes
d) CBIC b) No
c) May be
66. A return is tax dues as shown in the
return are paid in full. d) None of the above
71. Who is required to furnish the final return?
a) valid if all
b) not valid unless all a) A registered person
c) invalid if all b) A composition dealer
d) Both (a) and (b) c) A person whose registration has been
cancelled
67. In the GSTR 9C, which reconciliation is to be d) All of the above
made?
72. Which section lays down the provision of GST
a) Reconciliation of supplies declared in the Practitioners?
annual return with the details of unaudited
financial statements a) Section 47
b) Reconciliation of supplies declared in the b) Section 48
returns filed during the financial year with c) Section 49
the details of audited financial statements d) Section 50
c) Reconciliation of supplies declared in the 73. What is the due date of filing FORM GST
annual return with the details of audited ITC-01?
financial statements
a) Within a period of 30 days from the date of
d) Reconciliation of supplies declared in
becoming eligible to avail the ITC
the GSTR 3B with the details of audited
financial statements b) Within a period of 60 days from the date of
becoming eligible to avail the ITC
68. GSTR 9C is a c) Within a period of 90 days from the date of
a) Annual Audit Certificate becoming eligible to avail the ITC
b) Annual Audit Report d) Within a period of 15 days from the date of
c) GST Audit Report becoming eligible to avail the ITC
d) GST Audit Certificate 74. Form GST ITC 04 needs to be filed by
69. The special feature of is that the details a) 15th of the month succeeding the said
of supplies received by a recipient can be quarter
auto populated on the basis of the details b) 5th of the month succeeding the said
furnished by the counterparty supplier in his quarter
GSTR-1. c) 25th of the month succeeding the said
a) GSTR-1 A quarter
d) 20th of the month succeeding the said
b) GSTR-3B
quarter
c) GSTR-2A
d) GSTR-4 75. Which of the following is true?
70. Whether the credit note issued by the supplier a) The Commissioner may extend the time
has to be matched with the corresponding limit for furnishing the details of outward
E Block

reduction of input tax by recipient? supplies by notification for valid reasons

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b) The details of outward supplies shall b) Graduate or postgraduate degree or its

include details of debit notes, credit notes equivalent examination having a degree
and revised invoices issued in relation to in Commerce, Law, Banking
outward supplies c) Both (a) & (b)
c) The details of outward supplies shall d) (a)or(b)
be submitted in Form GSTR-1 by all the
registered taxable person other than 80. True or false: No person enrolled as a goods
ISD, non-resident taxpayer and a person and services tax practitioner shall be eligible
paying tax under section 10, section 51 to remain enrolled unless he passes such
and section 52 examination conducted at such periods and
d) All the above by such authority as may be notified by the
Commissioner on the recommendations of
76. The details submitted by the supplier in Form the Council
GSTR 1 are communicated to the registered
a) True
taxable person in
b) False
a) Form GSTR 1 A on 17th of the succeeding
month 81. The due date to file GSTR-3 is:
b) Form GSTR 2A after the data entry in Form a) 10th of the next month
GSTR 1 b) 13th of the next month
c) Form GSTR 2A after the due date of filing c) 15th of the next month
Form GSTR 1
d) 20th of the next month.
d) Form GSTR 1A on 15th of the succeeding
month 82. Which class of person is required to file
monthly details of outward supplies of goods
77. A goods and service tax practitioner or services or both in Form GSTR-1?
can undertake the following activities if
authorized by the taxable person a) Non resident taxable person
b) Person required to deduct tax at source
a) Furnish details inward and outward
c) Person who has opted to pay tax under
supplies
composition scheme
b) Furnish monthly/quarterly return
d) Person other than mentioned above
c) Furnish Annual and Final return
d) All of the above 83. When is the final return filed in form GSTR-10?
78. GST Practitioner must be: a) Within 3 months of date of cancellation or
cancellation order, whichever is later
a) A citizen of India
b) Within 2 months of date of cancellation
b) Person of sound mind
c) Within 6 months of date of cancellation
c) Not adjudicated as an insolvent
d) Within 30 days of date of cancellation
d) All of above

79. Persons satisfying which of the following 84. M/s. Pee Kay (P) Ltd. is registered in Haryana.
condition can apply for GSTP? While entering their outward supplies in
FORM GSTR-3B for the month of Jul-18, the
a) Earlier enrolled as a sales tax practitioner company realized that they had inadvertently
E Block

or tax return preparer

shown inter-State supply as intra-State supply

136 |MCQon Indirect Tax

 TDS, TCS & Returns

and paid its wrong liability and filed its return. furnish his annual return?
What is the remedy available now?
a) On or before 31st day of March at the end
a) The company can rectify wrongly of financial year
reported liability using edit facility b) On or before 30th day of September
b) The company can revise the return following the end of financial year
within 90 days c) On or before 31st day of December
c) The company will have to pay IGST and following the end of financial year
claim refund of CGST/ SGST d) On or before 1st day of December
d) No remedy available following the end of financial year

85. Which return is required to be furnished for 87. In Form GSTR-01 which of the following
outward supplies made by the registered information is to be filed?
person?
a) detail of outward supplies of taxable
a) Form GSTR-1 goods/supplies
b) Form GSTR-2 b) Details of inward supplies of taxable
c) Form GSTR-4A goods/supplies
d) Form GSTR-6 c) detail of tax deducted
d) Detail of amount deposited in cash ledger
86. When is a registered person required to

A n s we r s
1 c 2 a 3 c 4 c 5 d 6 c
7 a 8 c 9 a 10 a 11 b 12 d
13 d 14 d 15 a 16 a 17 c 18 d
19 d 20 d 21 b 22 a 23 a 24 b
25 c 26 a 27 c 28 d 29 a 30 c
31 b 32 d 33 d 34 d 35 c 36 c
37 b 38 c 39 d 40 d 41 d 42 b
43 a 44 d 45 c 46 a 47 b 48 b
49 c 50 d 51 d 52 b 53 c 54 c
55 b 56 b 57 c 58 d 59 b 60 b
61 c 62 d 63 d 64 a 65 a 66 a
67 c 68 c 69 c 70 a 71 c 72 b
73 a 74 c 75 d 76 c 77 d 78 d
79 d 80 a 81 d 82 d 83 a 84 c
E Block

85 a 86 c 87 a

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MATCC TCE FOLLOo ING

Column A Column B
1 Post audit authorities under Ministry of A GSTR -3B
Defence exempted from
2 As per Rule 66 the deductor shall furnish B GSTR - 9C
TDS certificate to deductee in Form
3 A monthly self declaration has to be filed C Within 300 days
by registered dealer
4 GST Auditor shall furnish a copy of D TDS compliance
the audited annual accounts and a
reconciliation statement along with
annual return duly certified in Form
5 On conclusion of audit the proper officer E in form GSTR - 7A
inform the registered person about the
finding
[ Answer : D, E, A, B, C ]

TRME OR FALSE
1. The GST Council provide the guidelines for deduction on Deposit of TDS by the DDO under GST.
2. Return for supplies effected through e commerce operator and the amount of tax collected to be
submitted in Form GSTR – 3B.
3. Late fee for filing NIL return have been reduced to ` 20/- per day delay for tax payer having Nil tax
liability.
4. Unregistered person are not required to generate E waybill.
5. for conducting Audit by Authorities the registered person needs to inform not less than 15
working days prior to the conduct of audit.

[Answer: 1. True, 2. False, 3. True, 4. False, 5. True]

FILL INTCE BLANKS

1. In the GST regime any regular business has to fill return and one annual
return.
2. The Government of India made it mandatory to file all return .
3. Taxpayer who have a turnover up to shall be considered as small tax payer.
4. Where the amount of input tax credit is than the output tax paid on such invoice
shall be considered matched.
5. GSTR 2A is an read only document which is for information purpose only.
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Answer :
1. two monthly
2. electronically
3. ` 5.00 crores
4. equal or less
5. auto generated

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