2 mcq gst chp 1 intro solution.pdf 3 mcq gst chp 2 supply · 2020-05-30 · 2 mcq gst chp 1 intro...

1 MCQ GST Chp 1 Intro.pdf

2 MCQ GST Chp 1 Intro Solution.pdf

3 MCQ GST Chp 2 Supply.pdf

4 MCQ GST Chp 2 Supply Solution.pdf

5 MCQ GST Chp 3 Charge Of GST.pdf

6 MCQ GST Chp 3 Charge Of GST Solution.pdf

7 MCQ GST Chp 5 Time Of Supply.pdf

8 MCQ GST Chp 5 Time Of Supply Solution.pdf

9 MCQ GST Chp 6 Value Of Supply.pdf

10 MCQ GST Chp 6 Value of supply Solution.pdf

11 MCQ GST Chp 7 ITC.pdf

12 MCQ GST Chp 7 ITC Solution.pdf

13 MCQ GST Chp 8 Registration.pdf

14 MCQ GST Chp 8 Registration Solution.pdf

15 MCQ GST Chp 9 Tax Invoice, Credit And Debit Notes.pdf

16 MCQ GST Chp 9 Tax Invoice Credit And Debit Note Solution.pdf

17 MCQ GST Chp 10 Payment Of Tax.pdf

18 MCQ GST Chp 10 Payment Of Tax Solution.pdf

19 MCQ GST Chp 11 Returns.pdf

20 MCQ GST Chp 11 Returns Solution.pdf

CA Kishan Kumar MCQs – Introduction to GST May 2019

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ICAI Study Material MCQs

1. Which of the following taxes have been subsumed in GST?

a) Central sales tax

b) Central excise duty

c) VAT

d) All of the above

2. List –I of the constitution matters in respect of which has the exclusive right to make laws.

a) Central government

b) State

c) Both Centre and State Governments

d) None of the above

3. GST is levied on supply of all goods and service except

a) Alcoholic liquor for human consumption

b) Tobacco

c) Health care service

d) All of the above

4. On petroleum crude high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation

turbine fuel.

a) GST is not levied at all

b) GST will be levied from a date to be notified on the recommendations of the GST council

c) GST is levied but exempt


5. The functions of goods and services network (GSTN) include:

a) Facilitating registration

b) Forwarding the return to central and state authorities

c) Computation and settlement of GST

d) All of the above

6. Which article of the constitution outlines the composition and function of the GST council?

a) 270

b) 279A

c) 246A

d) 269A

MCQs for Practice

7. Which country first introduced GST?

a. America

b. France

c. Egypt


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d. Italy

8. Which of the following statement is correct?

a. GST is based on principal of pay as you earn

b. GST is a destination-based tax

c. GST is technically paid by consumers but it is actually funded by suppliers

d. All of the above

9. Which of the following country follows dual GST model?

a. Brazil

b. Canada

c. India

d. All of the above

10. GST is a ________________________ based tax?

a. Consumption

b. Destination

c. Consumption or destination

d. None of the above

11. Goods and services tax is a tax levied on goods and services imposed at each point of-

a. Demand

b. Cash sale

c. Supply

d. Manufacturing


i. GST is technically paid by suppliers but it is actually funded by consumers

ii. Under GST, input tax credit is provided throughout the value chain for creditable acquisition

Select the correct answer from the options given below

a. (i) only

b. (ii) only

c. Both (i) and (ii)

d. Neither (i) nor (ii)

13. Which of the following taxes have been subsumed under GST?

1. Central Excise duty

2. Service tax

3. VAT

4. Luxury tax

Select the correct from the options given below

a. (1) & (2)


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b. (3), (1), & (2)

c. (4), (1), (3) & (2)


14. Which of the following taxes have been subsumed under GST?

I. Entertainment tax

II. Entry tax

III. Gift tax

IV. Basic custom duty

Select the correct answer from the option given below-

I II III IV

a. ✓ x ✓ x

b. x ✓ ✓ x

c. x ✓ x ✓

d. ✓ ✓ x x

15. Who among the following suggested a comprehensive goods & services tax based on VAT principal?

a. Empowered committee State Finance Ministers

b. Kelkar task force

c. Committee headed by Pranav Mukherjee

d. Committee commissioners of trade taxes

16. A special purpose vehicle setup by the government to provide IT infrastructure and services to the central and

state government, tax payers and other stakeholders for implementations of the GST is

a. Non-government company

b. Private limited company

c. Non-profit making company

d. All of the above

17. Which of the following is the main decision- making body that was formed to finalize the design of GST?

a. GST company

b. Empowered council

c. Empowered committee

d. GST council

18. Who is the chairman of GST Council?

a. Vice President of India

b. Union Finance Minister

c. Leader of opposition

d. Chief justice of Supreme Court

19. In the GST council a decision will be taken by a _______ majority with the Centre having a ____ and the

states the remaining_______


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a. Three fourth; one third vote; two third

b. One third; three fourth vote; two- third

c. One half; one third vote; two third

d. Three fourth; two third vote; two third

20. GST was first levied by France in ___________

a. 1947

b. 2001

c. 1954

d. 1979

21. Indian has chosen _____________ model of dual GST.

a. USA

b. UK

c. Canadian

d. Japan

22. Which of the following country has maximum GST tax slab?

a. Australia

b. China

c. Greece

d. India

23. The headquarter of GST Council is at______

a. Mumbai

b. New Delhi

c. Hyderabad

d. Ahmadabad

24. Which of the following goods have been kept out of GST?

1. Alcoholic liquor for human consumption

2. Readymade garments

3. Natural gas

4. Treadmill

5. Aviation turbine fuel

6. Petrol

7. Air conditioner

8. High speed diesel

9. Electricity

10. cycle



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a. 1, 6, 2, 5, 3, 9 & 5

b. 5, 4, 9, 5, 3, 6 & 5

c. 9, 1, 7, 5, 3, 5 & 6

d. 1, 3, 5, 6, 8 & 9

25. Under the GST regime, liability to pay tax arises when a person crosses the turnover threshold of ______ and

___ for north eastern & special category states.

a. INR 20 lakhs; INR 10 lakhs

b. INR 10 lakhs; INR 20 lakhs,

c. INR 50 lakhs; INR 20 lakhs,

d. INR 25 lakhs; INR 15 lakhs

26. Central Goods and Services Tax Bill 2017 was passed by Lok Sabha on-

a. 27th March 2017

b. 29th March 2017

c. 7th March 2016

d. 22nd March 2017

27. The Rajya Sabha passed the Central Goods and Services Tax Bill, 2017 on

a. 6th April 2017

b. 13th April 2017

c. 4th April 2017

d. 20th April 2017

28. The president assented the Central Goods and Service Tax Bill, 2017 on

a. 8th April 2017

b. 10th April 2017

c. 6th April 2017

d. 13th April 2017

29. Which of the following products is/are presently not covered under the GST regime?

1. Alcoholic liquor

2. Petrol

3. Natural gas

4. Aviation turbine fuel

Select the correct answer from the options given below-

a. 1 & 2

b. 2 & 3

c. 1, 2 & 4

d. All of the above options are correct

30. Which article of the constitution confers the power to make laws with respect to Goods and Services Tax to

Centre and State Govts?


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a. 270

b. 279A

c. 246A

d. 269A

31. Which article of the constitution stipulates that GST on supplies in the course of inter-State trade or commerce

shall be levied and collected by the Government of India and such tax shall be apportioned between the Union

and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods

and Services Tax Council?

a. 270

b. 279A

c. 246A

d. 269A

32. Which of the following are defects of earlier indirect tax regime?

1) No CENVAT after manufacturing stage

2) Non-availability of credit of CST paid

3) Double taxation of a transaction as both Goods and Services

4) Non-availability of credit of VAT/CST paid by Service Provider and service tax paid by distributor

5) Difficulty in implementation of VAT Regime


a. 1, 2, & 3

b. 1, 2, 3 & 4

c. 1, 2, 3 and 5

d. 1, 2, 3, 4 and 5


1) GST is origin-based Consumption Tax

2) GST is destination-based Consumption Tax

3) GST is based on VAT principal

4) GST Electronic Portal – www.gst.gov.in is managed by Goods and Services Tax Network (GSTN)

5) GST compensation cess is levied on GST amount

6) Both Central excise duty and GST is levied on Pan Masala


a. 1, 3, & 4

b. 2, 3 & 4

c. 1, 3, 4, 5 and 6

d. 2, 3, 4 and 6

34. Which of the following are benefits of GST?

1) Creation of unified national market

2) Boost to ‘Make in India' initiative


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3) Reduction of compliance burden on taxpayers

4) Buoyancy to the Government Revenue

5) Elimination of multiple taxes and double taxation


a. 1, 3, 4 & 5

b. 2, 3, 4 & 5

c. 1, 2, 4 and 5

d. 1, 2, 3, 4 and 5

35. Which of the following are characteristics of indirect taxes?

1) Inflationary

2) Progressive

3) Shifting of burden

4) Tax on commodities and services

5) Narrower tax base

6) Promotes social welfare

7) Regressive


a. 1, 3, 4, 6 & 7

b. 3, 4, 6 & 7

c. 2, 3, 4, 6 & 7

d. 1, 2, 3, 4 and 6

36. How many total Acts are there under GST law?

a. 33

b. 34

c. 35

d. 36


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1. D 2. A 3. A 4. B 5. D 6. B 7. B

8. B 9. D 10. C 11. C 12. C 13. C 14. D

15. B 16. D 17. D 18. B 19. A 20. C 21. C

22. D 23. B 24. D 25. A 26. B 27. A 28. D

29. D 30. C 31. D 32. D 33. B 34. C 35. A

36. C

CA Kishan Kumar MCQs – Supply under GST May 2019

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1. Which of the following is not a supply as per section 7 of the CGST Act?

a) Management consultancy services not in course or furtherance of business

b) Import of service for consideration not in course or furtherance of business

c) Both (a) and (b)


2. ___________ specifies the activities to be treated as supply even if made without consideration.

a) Schedule I of CGST Act

b) Schedule II of CGST Act

c) Schedule III of CGT Act

d) All of the above

3. Which of the following activity is outside the scope of supply and not taxable under GST?

a) Service by on employee to the employer in the course of or in relation to him employment

b) Service of funeral

c) Actionable claims other than lottery, betting and gambling

d) All of the above

4. Which of the following supplies are naturally bundled?

a) Rent deed executed for renting of two different floors of a building one for residential and another for

commercial purpose to some person

b) Pack of watch, tie and belt

c) Package of canned food such as burger, chocolates, sweets, cake etc.


5. A __________ supply comprising of two or more supplies shall be treated as the supply of that particular

supply that attracts highest rate of tax.

a) Composite

b) Mixed

c) Both (a) and (b)


6. Which of the following activities is a supply of services?

a) Transfer of right in goods/ undivided share in goods without transfer of title in goods

b) Transfer of title in goods

c) Transfer of title in goods under an agreement which stipulates that properly shall pass at a future date

d) All of the above

ICAI Sample MCQs

7. Which of the following activity shall be treated neither as a supply of goods nor a supply of services?

(i) Permanent transfer of business assets where input tax credit has been availed on such assets

(ii) temporary transfer of intellectual property right


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(iii) transportation of deceased

(iv) services by an employee to the employer in the course of employment

State the correct answer from the options given below-

a. (i) & (iii)

b. (ii) & (iv)

c. (i) & (ii)

d. (iii) & (iv)

MCQs for Practice


a) GST is based on principal of pay as you earn

b) GST is a destination-based tax

c) GST is technically paid by consumers but it is actually funded by suppliers

d) All of the above

9. GST is a comprehensive tax regime covering _________

a) Goods

b) Services

c) Both goods and services

d) Goods, services and imports

10. Which of the following can be treated as “goods” under the CGST act 2017?

I. Movable property

II. Money and securities

III. Actionable claim


I II II

a) Yes No Yes

b) No Yes Yes

c) No Yes No

d) Yes No No

11. Which of the following is deemed to be supply and liable to GST as per the schedule I to the CGST Act, 2017?

I. Gifts from an employer to an employee of INR 40,000.

II. XYZ Ltd. gives laptops to office staff on which it had already availed ITC in past.


a) (I) but not (II)

b) (II) but not (I)

c) Both (I) and (II) are supply and liable to GST

d) Both (I) and (II) are not supply and not liable to GST


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12. A deposit given in respect of the supply of goods or services or both shall not be considered as payment made

for supply and hence cannot be included in transaction value

a) True

b) False

c) Partly true


13. The term “supply” has replaced

a) The term Manufacture under Central Excise Act

b) The term Sale of Goods under State VAT Act

c) The term Provided or Deemed to be Provided in case of Service Tax Laws

d) All the above

14. “Supply” includes import of services, if such import of service

a) is for a consideration

b) is for a consideration or not

c) is for a consideration and in the course or furtherance of business

d) is for a consideration and whether or not in the course or furtherance of business

15. Import of services by a taxable person from a related person or from any of his other establishment outside

India shall be treated as supply

a) if such import of services is for a consideration

b) even if such import of services is without consideration

c) even if such import of services is without consideration but it should be in the course or furtherance of

business

d) even if such import of service is without consideration and it may or may not be in the course or

furtherance of business

16. Any job work carried out by a job worker on another person’s goods shall be treated as

a) Supply of goods

b) Supply of services

c) Supply of services provided job work is carried out by a job worker without any material

d) Supply of services whether the job work is to be carried out by a job worker with or without any material

17. Which of the following is/are the essential elements of a mixed supply?

a) Supply is made by a taxable person to a recipient

b) Supply consists of two or more individual supplies of goods and/or services or any combination thereof

but it is not naturally bundled

c) Supply is made for a single price

d) All the above

18. Which of the following is/are the essential elements of a composite supply?


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a) Supply is made by a taxable person to a recipient

b) Supply consists of two or more taxable supplies of goods or services or both or any combination thereof

which are naturally bundled and supplied in the ordinary course of business

c) One of the components of the supplies is a principal or main supply

d) All the above

19. As per the CGST act, 2017 business includes

a. Adventure not for a pecuniary benefit

b. Any activity or transaction undertaken by the central government, a state government or any local

authority in which they are engaged as public authorities


a. (b) only

b. Both (a) and (b)

c. Neither (a) nor (b)

d. (a) only

20. Composite supply is similar to the concept of _____ which is under services tax laws earlier

a. Mixed service

b. Mixed service where one service is tax able while other service is exempt.

c. Bundled service


21. In mixed supply-

a. Goods or services are naturally bundled and usually provided together in normal course of business

b. The goods or services can be sold separately

c. Consist of two or more taxable supplies of goods or services

d. (c) & (b)

22. ________ is a supply made by a taxable person to a receipt consisting of two or more taxable supplies of

goods or services or both or any combination thereof which are naturally bundled and supplied in conjunction

with each other in the ordinary course of business, one of which is a principal supply.

a. Mixed supply

b. Composite supply

c. Integrated supply

d. Mixed demand

23. Identify which of the following is “composite supply” and which is “Mixed supply” as per the provision of

CGST Act, 2017:

1. Where goods are packed and transported with insurance

2. A supply of package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks, and

fruit juices which are supplied for a single price.



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1 2

a. Mixed Supply Composite Supply

b. Composite Supply Mixed Supply

c. Mixed Supply Mixed Supply

d. Composite Supply Composite Supply

24. Consider following statements:

Statement I:

In the previous Indirect tax regime, supply of goods between principal to his agent or agent to its principal was

taxable but under GST, such supply will not be taxable.

Statement II:

Any service imported by a taxable person from a related person or from any of his other establishments, will

attract GST


a. Statement I is correct but statement II is incorrect

b. Statement II is correct but statement I is incorrect

c. Both statement I and II are correct

d. Both statement I and II are incorrect

25. _______ of the CGST Act, 2017 specifies activities to be treated as supply of goods or supply of services.

a. Schedule IV

b. Schedule II

c. Schedule I

d. Schedule III

26. Which of the following activity is deemed to be supply and liable to GST under the CGST Act, 2017?

a. Services by employee to employer

b. Functions performed by members of parliament

c. Supply of goods by unincorporated association to a member thereof

d. Services of funeral

27. Which of the following activities does not amounts to supply of goods or services and hence not liable to GST

under the CGST Act, 2017?

a. Licence to occupy land

b. Renting of immovable property

c. Works contract

d. Services by any court or tribunal

28. The term “used in the course or furtherance of business” in definition of capital goods under the CGST Act,

2017 means?

a. It should be directly correlated to output supply

b. It is planned to use in the course of business


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c. It is used in the course of business

d. It is used in the course of business for making outward supply

29. Which of the following is/are included in definition of “Goods” as defined under section 2(52) of the CGST

Act, 2017-

I. Money

II. Actionable claim

III. Security

IV. Growing crops


a. IV only

b. II & III

c. II & IV

d. I & II

30. Which of the following person is/are included in the definition of “family” as defined under section 2 (49) of

CGST Act 2017-

i. Spouse

ii. Children of person

iii. Dependent parents

iv. Dependent grand parents

v. Dependent brothers and sisters


a. i, ii and iii only

b. i, ii, iii & iv only

c. All except iii & iv

d. All i to v


1) Subsidy given by NGO does not form part of consideration

2) Sale of goods or service even as a vocation is a supply under GST.

3) In order to attract GST, both supplier and recipient should be a taxable person

4) A deposit given in respect of the supply of goods or services or both shall be considered as payment made

for such supply.

5) Amount paid by the employer to the employee for premature termination of a contract of employment is

subject to GST.

6) Services provided by a casual worker to employer who gives wages on daily basis to the worker is treated

as Supply.


a. i, ii and iii only

b. ii

c. All except iii & iv


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d. All i to v

32. Which of the following is treated as Supply as per Schedule I?

1) Permanent disposal of Business Assets on which input tax credit has been availed

2) Permanent disposal of Business Assets

3) Supply of goods between principal and agent without consideration is also supply if invoice is issued by

the agent to the customer in the name of the agent.

4) Supply of goods between principal and agent without consideration is also supply if invoice is issued by

the agent to the customer in the name of the principal.

5) Import of legal services by a taxable person from a brother who is lawyer in USA, without consideration,

for property dispute


a. i and iii only

b. i, ii, iii & v only

c. All except ii & iii

d. i, iii and v

33. Which of the following is treated as supply of goods as per Schedule II?

1) Sale of flats

2) Transfer of tenancy rights against consideration in the form of tenancy premium

3) Works contract wherein transfer of property in goods is involved in the execution of such contract

4) Supply of goods by an unincorporated association or body of persons to a member thereof for cash,

deferred payment or other valuable consideration

5) Transfer of goods on hire purchase agreement

6) Non-compete agreements.


a. i, iii, iv and v only

b. iii, iv & v only

c. All except i, ii & vi

d. iv and v

34. Which of the following is treated as supply of service as per Schedule II?

1) Goods held/used for business are put to private use

2) Business is transferred as a going concern to another person.

3) Development, design, programming, customization, adaptation and implementation of IT software

4) ‘Job Work’ performed by a job worker where material is procured

5) Inter-State movement of various modes of conveyance between distinct persons

6) Transportation of the deceased person


a. i, iii and iv only

b. i, ii, iii & iv only


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c. All except v & vi

d. All except iv and vi

35. In which of the following, principal supply is the given supply of goods

1) Printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by

the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs

including paper used for printing belong to the printer

2) Supply of retreaded tyres

3) Supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. by the printer

using its physical inputs including paper to print the design, logo etc. supplied by the recipient of goods

4) Supply of television set along with warranty and a maintenance contract with the TV

5) Delivery of goods by Flipkart


a. i, ii, iv and v

b. ii, iii, iv & v only

c. All except i & iii

d. All i to v


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1. A 2. A 3. D 4. D 5. B 6. A 7. D

8. B 9. C 10. A 11. B 12. A 13. D 14. D

15. C 16. D 17. D 18. D 19. B 20. C 21. D

22. B 23. B 24. B 25. B 26. C 27. D 28. C

29. C 30. D 31. B 32. A 33. D 34. A 35. B

CA Kishan Kumar MCQs – Charge under GST May 2019

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1. What is the maximum rate of CGST prescribed under CGST Act?

a) 20%

b) 28%

c) 24%

d) 40%

2. Which of the following taxes levied on intra-State supply?

a) CGST

b) SGST/UTGST

c) Both (a) and (b)

d) IGST

3. What is the threshold limit of turnover in the preceding financial year to be eligible for composition levy in

Delhi?

a) INR 20 lakhs

b) INR 30 lakhs

c) INR 75 lakhs

d) INR 100 lakhs

4. Which of the following is not included in aggregate turnover?

a) Exempt supplies of goods or services or both

b) Export of goods or services or both

c) Inter-State supply of goods or services or both

d) Value of inward supplies on which tax is paid under reverse charge

5. IGST is levied on:

a) Inter-State supplies

b) Intra-State Supplies

c) Both (a) and (b)


6. _________________ is levied on the import of goods and/or services.

a) IGST

b) CGST and SGST

c) CGST and UTGST


7. The maximum rate of IGST can be:

a) 20%

b) 30%

c) 40%



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8. On supply of which of the following items, GST shall be levied with effect from such date as may be notified by

the Government on the recommendations of the Council:

a) Petroleum crude

b) Alcoholic liquor for human consumption

c) Both (a) and (b)


9. A radio taxi driver has provided his services through Electronic Commerce Operator – Kuber Cabs. The tax

on such supplies shall be paid by the _________________.

a) Electronic Commerce Operator – Kuber Cabs

b) Radio taxi driver

c) Customer receiving the services from radio taxi driver


10. GST is payable by the recipient under reverse charge on:

a) Sponsorship services

b) Transport of goods by rail

c) Transport of passengers by air

d) All of the above

ICAI Sample MCQs

11. Mr. X, a registered supplier of Meghalaya wants to opt for composition levy. Turnover limit for composition

levy is-

a) INR 50 lakh

b) INR 75 lakh

c) INR 1crore

d) none of the above

12. GST is payable by recipient of services in the following cases:

i. Services provided by way of sponsorship to ABC Ltd.

ii. Services supplied by a director of Galaxy Ltd. to Mr. Krishna.

iii. Services by Department of Posts by way of speed post to MNO Ltd.

iv. Services supplied by a recovering agent to SNSP Bank


(a) (i) & (iii)

(b) (i) & (iv)

(c) (ii) & (iii)

(d) (ii) & (iv)

MCQs for Practice

13. The CGST act 2017 extends to –

a. Whole of India excluding the state of Jammu & Kashmir


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b. Whole of India

c. Whole of India excluding the state of Jammu and Kashmir and Union territories

d. Whole of India excluding the state of Jammu and Kashmir but including Union territories

14. Which of the following taxes will be levied on imports?

a) CGST

b) SGST

c) IGST

d) Basis customs duty (BCD) and IGST

15. Which of the following are outside the scope of GST?

1) petroleum crude

2) high speed diesel

3) motor spirit (commonly known as petrol)

4) petroleum gas

5) aviation turbine fuel and

6) alcoholic liquor for human consumption

7) alcoholic used in medicinal purpose


a. (i), (ii), (iii), (v), (vi) and (vii)

b. (i), (ii), (iii), (v) and (vi)

c. (i), (ii), (iii), (iv), (v) and (iv)

d. All of the above

16. “Zero rated supply” means

a) Export of goods or services or both

b) Import of goods or services or both

c) Supply of goods or service or both to a special economic zone developer or a special economic zone unit

d) Export of goods or service or both and supply of goods or service or both to a special economic zone

developer or a special economic zone unit.

17. Which of the following supplies of goods is subject to reverse charge?

a) Silk yarn

b) Cotton yarn

c) Nylon

d) All the above

18. Which of the following supplies of goods made by the agriculturist is subject to reverse charge?

a) Cashew nuts, not shelled or peeled

b) Bidi wrapper leaves

c) Tobacco leaves


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d) All the above

19. Under which notification is services notified wherein whole of the CGST is paid on reverse charge basis by the

recipient of services:

a) Notification No. 09/2017 CT (R)

b) Notification No. 12/2017 CT (R)

c) Notification No. 13/2017 CT (R)

d) Notification No. 17/2017 CT (R)

20. Which of the following services shall be taxable under reverse charge mechanism?

(i) Sponsorship service provided by a Company to a Company

(ii) Legal service provided by a firm of advocate to an advocate having turnover of INR 22,00,000

(iii) Renting of immovable property supplied by Central Government to an unregistered person.

(iv) Sponsorship service provided by Ram to KSA & Co

(v) Services supplied by individual Direct Selling Agents other than a body corporate, partnership or LLP

firm to Bank or NBFCs

(vi) Services by the Department of Posts by way of speed post


a. (i), (iv) and (v)

b. (i), (ii), (iii)

c. (i), (ii), (iii), (v)

d. (i), (ii), (iii), (iv), (v)

21. Which of the following persons can opt for composition scheme?

a) Person making any supply of goods which are not leviable to tax under this Act

b) Person making any inter-state outward supplies of goods

c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source


22. The rate prescribed for payment of GST in case of a registered person being a manufacture who has opted for

composition scheme is

a) 1% of the turnover as CGST and 1% of the turnover as SGST/ UTGST

b) 0.5% of the turnover as CGST and 0.5% of the turnover as SGST/UTGST

c) 2.5% of the turnover as CGST and 2.5% of the turnover as SGST/UTGST


23. The rate prescribed for payment of GST in case of a registered person being a restaurant who has opted for

composition scheme is

a) 1% of the turnover as CGST and 1% of the turnover as SGST/UTGST





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24. The rate prescribed for payment of GST in case of a registered person other than a manufacture or restaurant

who has opted for composition scheme is

a) 1% of the turnover as CGST and 1% of the turnover as SGST/UTGST



d) 0.5% of the taxable turnover as CGST and 0.5% of the taxable turnover as SGST/UTGST

25. For which of the following goods the supplier of goods is not allowed to opt for composition scheme?

a) Ice-cream and other edible ice, whether or not containing cocoa;

b) Pan masala;

c) Tobacco and manufactured tobacco substitutes

d) All the above

26. For which of the following goods, the supplier of goods is not allowed to opt for composition scheme?

a) Alcoholic liquor for human consumption

b) Petroleum crude

c) High speed diesel motor spirit

d) All the above

27. Can a registered person having same permanent account number opt for composition scheme only for one out

of his 2 business verticals?

a) Yes

b) No

c) Yes, subject to prior approval of the Central Government

d) Yes, subject to prior approval of the concerned State Government/Union Territory

28. Can a person who opts for composition scheme collect any tax from the recipient of goods?

a) Yes

b) No

c) Yes, provided the recipient of goods is a registered person

d) Yes, provided the recipient of goods is an unregistered person

29. Is a person who opts for composition scheme eligible for inputs tax credit?

a) Yes

b) No

c) Yes, subject to prior approval of the GST council

d) Yes, subject to prior approval of State Government/Union Territory

30. Which of the following statement is true for a composition tax payer?

a) He can avail ITC on capital goods but not on inputs

b) He can avail ITC on inputs but not on capital goods


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c) ITC is not available on inward supplies

d) ITC is available on inward supplies if tax is mentioned separately in the invoice of such supplies

31. A supply of goods shall be treated as supply of goods in the course of inter-state trade or commerce where the

location of the supplier and place of supply are in-

a. Two different states

b. Two different union territories

c. A state and a union territory

d. Any of the above

32. The IGST act, 2017 came into force on

a. 1st July 2017

b. 1st April 2017

c. 2nd July, 2017

d. 13th April 2017

33. The IGST Act,2017 extends to the-

a. Whole of India except the state of Jammu & Kashmir

b. Whole of India

c. Whole of India except the state of Jammu & Kashmir & Pondicherry


34. Which of the following statement is true?

a. Composition tax scheme is not available for services sector except restaurants.

b. A registered person under composition scheme is not permitted to collect tax and neither he will be

eligible for any input tax credit.

c. Both (a) and (b)

d. Neither (A) nor (b)

35. Which of the following is included in the definition of “aggregate turnover” as defined in CGST Act, 2017?

(I) Value of inward supplies on which tax is payable by a person on reverse charge basis

(II) Inter-state supplies of persons having the same Permanent Account Number


a. Neither (II) not (I)

b. Both (I) and (II)

c. (I) only

d. (II) only

36. Which of the following is included and which is excluded from the definition of “aggregate turnover” as

definition of CGST Act, 2017?

1. Exempt supplies

2. Central tax


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3. Exports of goods or services

4. Union territory tax

Select the correct answers from the options given below-

1 2 3 4

a. X ✓ x ✓

b. ✓ ✓ x x

c. ✓ x ✓ x

d. X x ✓ ✓

37. To be eligible for registration under composition scheme it is required that the aggregate turnover of a

registered tax payer should not exceed ________ in the preceding financial year. (the limit is __ for North

eastern & special category states)

a. INR 100,00,000; INR 75,00,000

b. INR 50,00,000; INR 75,00,000

c. INR 50,00,000; INR 25,00,000

d. INR 30,00,000, INR 40,00,000

38. Under the GST regime a composition scheme, which is mainly devised for small taxpayers provides

concessional rate of tax and filing of ____

a. Monthly returns

b. Quarterly returns

c. Yearly returns

d. No return at all

39. In which of the following cases, GST is payable by Electronic Commerce Operators?

1) Services by way of transportation of passengers by a radio-taxi, if the person supplying such service

through ECO is liable for registration

2) Services by way of transportation of passengers by a radio-taxi, if the person supplying such service

through ECO is not liable for registration

3) Services by way of providing accommodation in hotels if the person supplying such service through ECO

is not liable for registration

4) Services by way of providing accommodation in hotels if the person supplying such service through ECO

is liable for registration

5) Services by way of house-keeping if the person supplying such service through ECO is not liable for

registration

6) Services by way of house-keeping if the person supplying such service through ECO is not liable for

registration under section 22(1) of the CGST Act.


a. (i), (iii) and (v)

b. (ii), (iv) and (vi)

c. (i), (ii), (iii), (v)

d. (i), (ii), (iii), (iv), (v), (vi)


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40. Which of the following is correct in relation to ECO u/s 9(5) of CGST Act, 2017?

1) The provision related to ECO u/s 9(5) is applicable only in case of services.

2) The provision related to ECO u/s 9(5) is applicable in case of services as well as goods.

3) The price/ consideration for the service is collected by the ECO from the consumer and passed on to the

actual supplier after the deduction of commission by the ECO.

4) The price/ consideration for the service is collected by the actual service supplier from the consumer and

the commission is passed on to the ECO.

5) If ECO neither has physical presence nor any representative in India, there is no need to pay tax

6) If ECO does not have physical presence in India, representative of ECO is liable to pay GST.


a. (ii), (iv) (v) and (vi)

b. (ii), (iii), (vi)

c. (i), (iv), (vi)

d. (i), (iii), (vi)

41. In which of the following states, turnover limit for opting composition levy is 75,00,000?

1) Arunachal Pradesh

2) Assam

3) Manipur

4) Uttarakhand

5) Himachal Pradesh

6) Jammu and Kashmir

7) Tripura

8) Sikkim


a. (i), (ii), (iii), (iv), (v), (vi) (vii), (viii)

b. (i), (ii), (iii), (v), (vi), (vii), (viii)

c. (i), (ii), (iii), (v), (vii), (viii)

d. (i), (ii), (iii), (iv), (v), (vii), (viii)

42. Which of the following is correct in relation to Composition levy?

1) Intimation by a Regular Tax paying person opting for Composition Levy is required to be given within 60

days from the commencement of the relevant FY

2) In case of Regular Tax paying person opting for Composition Levy, option to pay tax under composition

levy shall be effective from the date from which application is approved

3) Intimation for withdrawal from the scheme is required to be given within 7 days of the occurrence of such

event.

4) In case of irregular availment of the composition scheme due to wilful default, penalty leviable is 10% of

tax.


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5) In case of withdrawal from the scheme, ITC is allowed in respect of the stock of inputs and on capital

goods held by him on the date of withdrawal.


a. (i), (iii) (v)

b. (iii), (v)

c. (i), (ii), (iii), (iv), (v)

d. (iii), (iv), (v)

43. Under which notification is services notified wherein whole of the IGST is paid on reverse charge basis by the

recipient of services:

a. Notification No. 10/2017 IT (R)

b. Notification No. 11/2017 IT (R)

c. Notification No. 12/2017 IT (R)

d. Notification No. 13/2017 IT (R)

44. In which of the following cases, recipient is liable to pay GST under reverse charge mechanism?

1) Ram, an unregistered person, imported services for a consideration for business purpose

2) Ram, an unregistered person, imported services for a consideration for personal purpose

3) Ram, an unregistered person, imported services without consideration for business purpose

4) Mohan, an unregistered person, imported OIDAR services without consideration

5) Sohan, an unregistered person, imported OIDAR services for consideration

6) Ram, a registered person, imported OIDAR services for a consideration

7) Shyam, a registered person, imported OIDAR services without consideration

8) Raj imported services without consideration for business purpose from his brother


a. (i), (ii), (v), (vi), (viii)

b. (i), (iii), (vi), (viii)

c. (i), (v), (vi)

d. (i), (vi), (viii)


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1. A 2. C 3. D 4. D 5. A 6. A 7. C

8. A 9. A 10. A 11. B 12. B 13. B 14. D

15. B 16. D 17. A 18. D 19. C 20. A 21. D

22. B 23. C 24. D 25. D 26. D 27. B 28. B

29. B 30. C 31. D 32. A 33. B 34. C 35. D

36. C 37. A 38. B 39. C 40. D 41. C 42. B

43. A 44. D

CA Kishan Kumar MCQs – Time of Supply May 2019

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1. Date on which the supplier receives the payment as per section 12 of CGST Act is

a) Date entered in books of accounts

b) Date of credit in bank account

c) Date entered in books of accounts or date of credit in bank account, whichever is earlier

d) Date on which receipt voucher is issued by supplier

2. What is time of supply of goods liable to tax under reverse charge mechanism?

a) Date of receipt of goods

b) Date on which the payment is made

c) Date immediately following 30 days from the date of issue of invoice by the supplier

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

3. What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?

a) Date of issue of voucher

b) Date of redemption of voucher

c) Date of entry in books of accounts


4. What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?

a) Date of issue of voucher

b) Date of redemption of voucher

c) Date of entry in books of accounts


5. What is the time of supply of service if the invoice is issued within 30 days from the date of provision of

service?

a) Date of issue of invoice

b) Date on which the supplier receives payment

c) Date of provision of service

d) Earlier of (a) & (b)

6. What is the time of supply of service if the invoice is not issued within 30 days from the date of provision of

service?

a) Date of issue of invoice

b) Date on which the supplier receives payment

c) Date of provision of service

d) Earlier of (b) & (c)

7. What is the time of supply of service in case of reverse charge mechanism?

a) Date on which payment is made to the supplier


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b) Date immediately following 60 days from the date of issue of invoice

c) Date of invoice

d) Earlier of (a) and (b)

8. What is the time of supply of service where services are received from an associated enterprise located outside

India?

a) Date of entry of services in the books of account of recipient of service

b) Date of payment

c) Earlier of (a) & (b)

d) Date of entry of services in the books of the supplier of service

MCQs for Practice

9. Time of supply means-

a. The point in time when GST is actually paid by the supplier of goods or services

b. The point in time when GST is actually paid after taking input credit by the supplier of goods or services

c. The point in time when goods have been deemed to be supplied or services have been deemed to be

provided

d. The point in time when GST return is filed by the supplier of goods or services

10. The time of issue of tax invoice for supply of goods shall be

a. Before or at the time of removal of goods for supply to the recipient

b. Before or at the time of delivery of goods or making available thereof to the recipient

c. Before or at the time of removal of goods for supply to the recipient where the supply involves movement

of goods and before or at the time of delivery of goods or making available thereof to the recipient in any

other case

d. 30 days from the supply of goods

11. The time of issue of tax invoice for continuous supply of goods shall

a. Be 30 days from the completion of each milestone

b. Be 45 days from the completion of each milestone

c. Where successive statements of accounts or successive payments are involved, it should be issued before

or at the time each such statement is issued or as the case may be each such payment is received

d. Be the time when each payment is received

12. Where the supplier of taxable goods receives an amount up to INR 1,000 in excess of the amount indicated in

the tax invoice, the time of supply to the extent of such excess amount shall be

a. The date on which the payment is entered in his books of account

b. The date on which the payment is credited to his bank account

c. The date on which the payment is entered in his books of account or the date on which the payment is

credited to his bank account; whichever is earlier

d. At the option of the said supplier, the date of issue of invoice in respect of such excess amount.


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13. What is time of supply in relation to value of supply by way of interest, late fee or penalty?

a. The date of actual issue of invoice by the supplier

b. The last date on which he is required under section 31(1) to issue the invoice with respect to the supply

c. The date on which the supplier receives the payment with respect to the supply

d. The date on which the supplier receives such addition in value by way of interest late fee or penalty for

delayed payment

14. What is the time of supply of services where the supplier is liable to pay tax under forward charge and the

invoice is not issued within prescribed period under section 31(2)?

a. Date of issue of invoice

b. Date of completion of provision of services

c. Date of receipt of payment

d. Date of completion of provision of service or date of receipt of payment; whichever is earlier.

15. What is the time limit for issue of invoice in case of continuous supply of services?

a. On/before the due date of payment

b. Before/at the time when the supplier of service receives the payment

c. On/before the date of completion of the milestone event when the payment is linked to completion of an

event

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

16. What is the time of supply of import of service?

a. Date of entry of services in the books of account of recipient of service

b. Date of payment

c. 61st day from the date of invoice

d. Earlier of (a) & (b)

e. Earlier of (b) & (c)

17. Value of services rendered is INR 3,00,000. Date of issue of invoice is 12.9.2017. Advance received is INR

75,000 on 25-8-2017; balance amount received on 12-9-2017.What is the time of supply for INR 3,00,000?

a. 12-9-2017 for 3,00,000

b. 25-8-2017 for INR 3,00,000

c. 25-8-2017 for INR 75,000 and 12-9-2017 for INR 2,25,000

d. Any of the above

18. Determine the time of supply of service in case recipient of goods is liable to pay tax under reverse charge

mechanism.

Date of payment by recipient of services 10.3.2018

Date of issue of invoice by supplier of service 29.1.2018


a. 10.3.2018

b. 29.1.2018


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c. 30.3.2018

d. Date given is insufficient

19. Determine the time of supply of service from the following details

Date of actual provision of service 10.1.2018

Date of invoice 12.2.2018

Date of receipt of part payment 5.1.2018

Date of receipt of remaining part payment 25.2.2018

For part payment received on 5.1-2018 time of supply will be _______ and for part payment received on

25.2.2018 time of supply will be _____


a. 10.1.2018 &5.1.2018 respectively

b. 5.1.2018 & 12.2.2018 respectively

c. 5.1.2018 & 10.1.2018 respectively

d. 5.1.2018 &25.2.2018 respectively

20. Determine the time of supply of service from the following details

Date of actual provision of service 10.1.2018


Date of receipt of part payment 15.1.2018

Date of receipt of remaining part payment 10.3.2018

For part payment received on 15.1-2018 time of supply will be _______ and for part payment received on

10.3.2018 time of supply will be _____


a. 15.1.2018 & 30.1.2018 respectively

b. 15.1.2018 & 10.3.2018 respectively

c. 10.1.2018 & 10.3.2018 respectively

d. 10.1.2018 & 30.1.2018 respectively

21. Determine the time of supply (TOS) of goods in case the recipient of goods is liable to pay tax under reverse

charge mechanism (RCM)


Date of receipt of goods 15.1.2018

Date of payment in the books 10.1.2018

Date when payment is debited in bank account 12.2.2018


a. 1.1.2018

b. 15.1.2018

c. 10.1.2018

d. 12.1.2018


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22. Determine the time of supply (TOS) of goods in case the recipient of goods is liable to pay tax under reverse

charge mechanism (RCM)


Date of receipt of goods 5.1.2018

Date of payment in the books 10.1.2018

Date when payment is debited in bank account 12.1.2018


a. 1.1.2018

b. 5.1.2018

c. 10.1.2018

d. 12.1.2018

23. Determine the time of supply (TOS) of goods from the following details

Date of removal 4.1.2018


Date when goods are made available to recipient 6.2.2018

Date of receipt of payment 1.10.2018


a. 4.1.2018

b. 6.2.2018

c. 1.10.2018








a. 1.1.2018

b. 1.2.2018

c. 3.1.2018

d. 15.3.2018







a. 3.1.2018

b. 1.1.2018


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c. 4.1.2018

d. 25.2.2018

26. Continuous supply of services means a supply of services which is provided, or agreed to be provided,

continuously or on recurrent basis, under a contract, for a period exceeding ________ with periodic payment

obligations and includes supply of services as the government may, subject to such conditions, as it may, by

notification, specify.

a. 3 months

b. 5 months

c. 2 months

d. 6 months

27. Which of the following section of CGST Act, 2017 deals with provisions relating to “time of supply of goods”?

a. Section 11

b. Section 12

c. Section 13

d. Section 14

28. Which of the following section of CGST Act, 2017 deals with provisions relating to “time of supply of services”?

a. Section 12

b. Section 13

c. Section 14

d. Section 15

29. As per the CGST Act 2017, continuous supply of goods means

1 Supply of goods on recurrent basis

2 Supply of goods as the government may specify by notification

Select the correct answer from the options given below -

a. 1 only

b. Neither 1 nor 2

c. Both 1 and 2

d. 2 only

30. Exemption from payment of tax on advances received for supply of goods under Forward Charge is provided

under which notification?

a. N/N 56/2017 CT

b. N/N 13/2017 CT

c. N/N 17/2017 CT

d. N/N 66/2017 CT


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1. C 2. D 3. A 4. B 5. D 6. D 7. D

8. C 9. C 10. C 11. C 12. D 13. D 14. D

15. D 16. E 17. C 18. A 19. C 20. A 21. C

22. B 23. A 24. A 25. B 26. A 27. B 28. B

29. C 30. D

CA Kishan Kumar MCQs – Value of Supply May 2019

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1. Value of supply under section 15(1) is:

a) Wholesale price

b) Market value

c) Maximum retail price

d) Transaction value

2. The value of supply should include:

a) Any non-GST taxes, duties, cesses, fees charged separately by supplier

b) Interest, late fee or penalty for delayed payment of any consideration for any supply

c) Subsidies directly linked to the price except subsidies provided by the Central and State Governments

d) All of the above

3. Which of the following shall not be included in value of supply?

a) GST

b) Interest

c) Late fee

d) Commission

4. When can the transaction value be rejected for computation of value of supply?

a) When the buyer and seller are related and price is not the sole consideration

b) When the buyer and seller are related or price is not the sole consideration

c) It can never be rejected

d) When the goods are sold at very low margins

5. Which of the following statement(s) is/are correct?

a) Section 15 of CGST Act prescribes different provisions for valuation of goods and services

b) CGST Act and IGST Act have different provisions for valuation of supply

c) Section 15 of CGST Act prescribes same set of provisions for valuation of goods and services

d) (a) and (b)

6. Discount given after the supply is deducted from the value of taxable supply, if –

a) such discount is given as per the agreement entered into at/or before the supply

b) such discount is linked to the relevant invoices

c) proportionate input tax credit is reversed by the recipient of supply

d) all of the above

MCQs for Practice

7. Value of the following is/are included in ‘value of supply’ under the CGST Act, 2017?

1. Commission and packing expenses

2. Discount recorded in invoice

3. Taxes, duties, cesses, fees and charges levied under any law other than GST, for the time being in force


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4. Subsidies provided by Central Government and State Government


a. 1 & 2

b. 2 & 3

c. 1 & 3

d. 2 & 4

8. As per section 15 of the CGST Act, 2017, which of the following persons shall be deemed to be “related

persons”?

1. Employer and employee

2. Person directly or indirectly holding 21% shares in the company

3. Members of the same family


a. 1 & 2

b. 2 & 3

c. 1 & 3

d. All of the above

9. Which of the following forms part of transaction value?

1) GST compensation cess

2) Payments made to third parties by the recipient on behalf of the supplier in relation to the supply

3) Entertainment tax levied by local authority

4) Commission paid to an agent and recovered from the recipient

5) Inspection charges at recipient’s site

6) Charges for delay in payment waived off by supplier


a. 1, 2, 3, 4 & 5

b. 2, 3, 4, 5 & 6

c. 2, 3, 4 & 5

d. All of the above

10. Which of the following shall be deducted while calculating Transaction value?

1) Subsidy given by Government to the recipient

2) Subsidy from Government for setting up manufacturing plant

3) Subsidy given by NGOs

4) Cash discount

5) Discount provided before the time of supply recorded in the invoice

6) Discount provided before the time of supply not recorded in the invoice

7) Discount provided after supply as per terms of an agreement that existed at time of supply and can be

linked to the supply and proportionate input tax credit is reversed by the recipient.


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a. 1, 2, 4, 5 & 7

b. 1, 4, 5, & 7

c. 1, 4, 5 & 7

d. 4, 5 & 7


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1. D 2. D 3. A 4. A & B 5. C 6. D 7. C

8. C 9. C 10. D

CA Kishan Kumar MCQs – Input Tax Credit May 2019

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1. In which of the following situations, taxpayer needs to reverse the credit already taken?

a) If payment is not made to the supplier within 45 days from the date of invoice

b) If payment is not made to the supplier within 90 days from the date of invoice

c) If payment is not made to the supplier within 180 days from the date of invoice


2. What is the time limit for taking ITC?

a) 180 days

b) 1 year

c) 20th October of the next financial year or the date of filing annual return whichever is earlier

d) No limit

3. If the goods are received in lots/instalment, ___________________

a) 50% ITC can be taken on receipt of 1st instalment and balance 50% on receipt of last instalment.

b) ITC can be availed upon receipt of last instalment.

c) 100% ITC can be taken on receipt of 1st instalment.

d) Proportionate ITC can be availed on receipt of each lot/instalment.

4. For banking companies using inputs and input services partly for taxable supplies and partly for exempt

supplies, which of the statement is true?

a) ITC shall be compulsorily restricted to credit attributable to taxable supplies including zero rated

supplies

b) 50% of eligible ITC on inputs, capital goods, and input service shall be mandatorily taken in a month and

the rest shall lapse.

c) Banking company can choose to exercise either option (a) or option (b)


5. A supplier takes deduction of depreciation on the GST component of the cost of capital goods as per Income-

tax Act, 1961. The supplier can-

a) avail only 50% of the said tax component as ITC

b) not avail ITC on the said tax component

c) avail 100% ITC of the said tax component

d) avail only 25% of the said tax component as ITC

6. Which of the following inward supplies are not eligible for ITC in case of a company manufacturing shoes?

a) Food and beverages

b) Outdoor catering

c) Health services

d) All of the above

7. Which of the following statement is true for a composition tax payer?

a) A composition tax payer can avail only 50% of ITC on capital goods.

b) A composition tax payer can avail 100% ITC on inputs.


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c) ITC is not available on inward supplies made by a composition tax payer.

d) Composition tax will be available as ITC to the recipient only if the tax is mentioned separately in the

invoice raised by the composition tax payer.

ICAI Sample MCQs

8. Input tax credit is not available in respect of .

a. services on which tax has been paid under composition levy

b. free samples

c. goods used for personal consumption

d. all of the above

MCQs for Practice

9. A registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services

or both if

a) He is in possession of a tax invoice or debit not issued by a supplier registered under this Act, or such

other tax paying documents as may be prescribed

b) He has received the goods or services or both

c) The tax charged in respect of such supply has been actually paid to the government, either in cash or

through utilization of input tax credit, and has furnished the return under section 39

d) All the above conditions are satisfied

10. The taxpayer needs to reverse the credit already taken if the recipient fails to pay to the supplier of goods or

services or both, the amount towards the value of supply along with tax payable thereon within a period of

a) 100 days from the date of issue of invoice by the supplier

b) 120 days from the date of issue of invoice by the supplier

c) 180 days from the date of issue of invoice by the supplier

d) 240 days from the date of issue of invoice by the supplier

11. On making the payment, the input tax credit which was reversed earlier can be re-availed within

a) 180 days

b) 1 year

c) 20th October of the next financial year or the date of filing annual return whichever is earlier

d) No time limit

12. Where the goods or services or both are used by the registered person partly for the purpose of any business

and partly for other purposes, the input tax credit shall

a) Not be allowed

b) Be allowed in full

c) Restricted to so much of the input tax as is attributable to the purpose of his business

d) Be allowed to the extent of 50% of the input tax credit


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13. Where goods and services are used partly for effecting taxable supply including zero rates supply and partly for

exempted supplies, the input tax credit shall

a) Not be allowed

b) Be allowed in full

c) Be available to the extent goods and services are used for effecting taxable supplies

d) Be available to the extent goods and services are used for effecting taxable supplies including zero rated

supplies

14. Which of the following inward supplies are eligible for ITC in case of a company manufacturing paints?

a) Motor vehicles and other conveyances

b) Motor vehicles and other conveyances when they are used for transportation of goods

c) Motor vehicles and other conveyances when they are used for employees


15. Is it mandatory to capitalize the capital goods in books of account?

a) Yes

b) No

c) Optional


16. Whether credit on capital goods can be taken immediately on receipt of the goods?

a) Yes

b) No

c) After usage of such capital goods

d) After capitalizing in books of account

17. Credit on input services or capital goods held in stock can be availed in case of new registration/voluntary

registration

a) Yes

b) No

c) Yes, on input services only

d) Yes, on capital goods only

18. Is input tax to be reversed in case of supply of capital goods

a) Yes fully

b) No

c) Yes, to extent of credit taken as reduced by prescribed percentage or tax on transaction value; whichever

is higher

d) Yes, to the extent of transaction value of such goods

19. As per CGST Act, 2017 “input”-

1. Includes capital goods to be used by a supplier in the course of furtherance of business


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2. Means any service used or intended to be used by a supplier in the course of furtherance of business.


a. 2 is correct but not 1

b. 1 is correct but not 2

c. Both 1 and 2

d. A and B both are incorrect

20. XX Ltd. purchased goods form ZZ Ltd. in the month of Jan 2018 but the goods were received in the month of

March 2018 XX Ltd. can take the GST credit in the month of-

a. Against GST Payable for the month of Jan 2018

b. Against GST Payable for the month of Feb 2018

c. Against GST Payable for the month of April 2018

d. Against GST Payable for the month of March 2018

21. XYZ Ltd. is engaged in sale of product X. all the sales are made outside the state.

Particulars INR

Value of receipts of goods & services (SGST &

CGST 10%)

7,00,000

Value of product X sold (IGST 20%) 8,40,000

Select the correct answer from the options given below:

a. Net IGST payable is INR 28,000

b. Net IGST payable is INR 1,68,000

c. Net IGST payable is INR 98,000 after setting off CGST of INR 70,000 as SGST cannot be set-off against

IGST

d. None of the above is correct

22. Y Ltd. supplies the following information to you:

Particulars Amount

Value of receipt of goods and services 5,40,000

Value of supply of goods and services 3,24,000

Y Ltd. had supplied only 50% of goods and services out of goods and services received by it. SGST & CGST rate

is 10% on input and output –

a. SGST & CGST payable each INR 21,600

b. SGST & CGST each refundable INR 21,600

c. The excess credit of INR 21,600 each in SGST & CGST can be carried forward in electronic credit ledger

and utilized in subsequent period

d. None of the above is correct

23. Z Ltd. supplies the following information to you:

Particulars Amount

Value of receipt of goods and services 5,52,000

Value of supply of goods and services 4,60,000


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SGST & CGST rate is 10% on input

SGST & CGST rate is 6% on output

a. Excess credit of INR 27,600 each of SGST and CGST can be refunded if eligible as per refund provisions

b. Excess credit of INR 27,600 each of SGST and CGST should be written to profit & loss account

c. Excess credit of INR 27,600 each of SGST and CGST can be carried forward in electronic credit longer

d. Any of the above depend on situation

24. A registered dealer of Maharashtra purchased goods form registered dealer of Delhi for INR 5,70,000 inclusive

of IGST @ 20% and sold the same to registered dealer in Karnataka for INR 6,80,000 plus IGST @ 20%. How

much IGST is payable by dealer in Maharashtra?

a. INR 41,000

b. INR 1,36,000

c. INR 95,000

d. INR 19,000

25. Mr. X purchases a product for INR 7,48,000 plus SGST & CGST @ 10% each from Mr. Y. He adds INR 57,200

as his profit and sells the customer by levying SGST & CGST @ 10%

Cost to consumer=?

Net GST payable by Mr. X =?

a. INR 9,66,240; INR 11,440

b. INR 11,45,760; INR 41,360

c. INR 9,66,240; INR 5,720

d. INR 7,48,000; INR 1,49,600

26. If value of capital goods is INR 1,00,000 plus GST INR 18,000. Input credit of INR 18,000 on capital goods is

taken. What will be the depreciable value of capital goods under the GST law?

a. INR 1,18,000

b. INR 1,00,000

c. INR 82,000

d. INR 1,09,000

27. IGST shall be levied and collected by the

a. State government

b. Government of India

c. Partly by state governments and partly by central government


28. Which article mentions distribution of IGST among centre and state?

a. Article 246A

b. Article 269A

c. Article 279 A

d. Article 271A

29. In which of the following case(s) GST refund is possible?


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I. Zero rated supplies made without payment of tax

II. Supply of exempted goods

III. Excess input credit due to inverted duty structure

IV. Exporting the goods by availing duty drawback.

Select the correct answer from the options given below -

a. II & IV

b. I & III

c. III & IV

d. III & I

30. In which sequence SGST input credit has to be utilized?

a. In sequence of CGST, IGST & SGST

b. In sequence of SGST & IGST

c. In sequence of CGST, SGST & IGST

d. SGST input credit can only be utilized against SGST and not against IGST or CGST.

31. In which sequence IGST input credit has to be utilized?

a. In sequence of IGST, CGST & SGST

b. In sequence of SGST, CGST & IGST

c. In sequence of CGST, IGST & SGST

d. In sequence of UTGST, CGST & SGST & IGST

32. In which of the following case input tax credit (ITC) under GST is allowed?

i. Input tax paid under composition scheme

ii. Input tax on goods or services used for personal consumption

iii. Input tax with respect to goods lost

iv. Input tax on goods given as gifts or free samples.


a. i

b. ii

c. iii


33. In which of the following case(s) Input Tax Credit (ITC) under GST is not available?

1. Caterer using the service of another caterer

2. Travel benefits extended to employees on vacations such as leave or home travel concession

3. Input service used for further supply of works contract service

4. Input tax credit on goods or services by a person for construction of immovable property


a. 2 and 4

b. 1 and 3


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c. 2 and 1

d. 3 and 2

34. Which of the following condition is required to be fulfilled to avail Input Tax Credit (ITC)?

1. Registered taxable person should be in possession of tax invoice or debit note

2. Registered taxable person should have received the goods or services or both

3. Registered taxable person should have furnished the return u/s 39

4. Supplier should have actually paid the tax charged in respect of the supply to the government


a. 1 only

b. 1 and 2 only

c. 1, 2 and 3 only

d. 1, 2, 3 & 4

35. Which of the following section makes the provisions relating to “apportionment of credit and blocked credits

(i.e. restriction on utilization of credit)”?

a. Section 17

b. Section 18

c. Section 16A

d. Section 19

36. Who can avail the benefit of Input Tax Credit (ITC) under the GST?

a. Registered person

b. Person who has applied for registration and his application is pending

c. Unregistered person

d. Any of the above

37. The tax-paying documents in section 16(2) is-

a. Supply invoice by the recipient

b. Acknowledged copy of tax paid to department

c. Bill of entry, invoice raised on RCM supplies, etc.

d. Any of the above

38. Credit on inputs should be availed based on-

a. Receipt of goods

b. Receipt of documents

c. Both

d. Either receipt of documents or receipt of goods

39. Value of receipts of goods and services within the state INR 7,00,000

Value of supply of goods and services within the state INR 4,20,000

Value of supply of goods and services in Inter-state sale; INR 4,20,000

IGST rate for supply of goods and services is 20%


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SGST and CGST rate on receipt and supply of goods and services is 10% each

SGST CGST IGST

a. B. 42,000 42,000 84,000

a. 42,000 42,000 84,000

b. - - 84,000

c. - - 84,000

40. Which of the following statement is true?

1) Receipt of goods includes bill to ship to model

2) In order to avail ITC, recipient needs to make the payment to supplier within 180 days from the date of

invoice in case of supplies on which tax is payable under reverse charge.

3) The time limit u/s 16(4) does not apply to claim for re-availing of credit that had been reversed earlier.

4) If payment for the invoice is not made to supplier within 180 days, interest @ 18% is chargeable

5) In order to claim ITC, Goods/services must be used for business purposes


a. 1, 4 and 5

b. 1, 2, 3, 4 and 5

c. 1, 3, 4 and 5

d. 1, 3 & 4

41. In which of the following cases, ITC is allowed?

1) Tour operator service received by a tour operator engaged in same line of business

2) Ram purchased one car for going to his factory and client place

3) Works contract service received by Ram. The building is used for providing outward taxable supply.

4) Membership of a club, health and fitness centre.

5) Goods imported by Non-resident taxable person

6) Life insurance services availed by a person where Government has made it obligatory for him to provide

any of these services to its employees

7) ABC Limited, a tent house, purchased one truck for transportation of goods relating to service of tent

house


a. 1, 5, 6 and 7

b. 1, 2, 5, 6 and 7

c. 1, 2, 3, 6 and 7

d. 1, 6 & 7

42. In which of the following cases, ITC is allowed on stocks lying with the taxpayer?

1) Applied for registration within 30 days from the date being liable for registration

2) Applied for registration after 30 days from the date being liable for registration

3) Voluntary registration

4) Opting Composition levy from regular scheme


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5) Taxpayer’s exempt supply becomes taxable supply.


a. 1, 4 and 5

b. 1, 3, 4 and 5

c. 1, 3 and 5

d. 1, 2, 3, 4 & 5

43. Which of the following are True?

1) Credit for capital goods are not allowed in case of circumstances enabling availment of ITC.

2) Credit for input services are not allowed in case of circumstances enabling availment of ITC.

3) In case of circumstances requiring reversal of ITC, ITC of input services is not required to be reversed.

4) In case of circumstances requiring reversal of ITC, ITC of inputs and capital is required to be reversed in

the prescribed manner.

5) In case capital goods is used for both taxable as well as exempt supply, quarterly reversal of ITC is done.


a. 2, 3, 4

b. 1, 3, 4 and 5

c. 1, 3 and 4

d. 1, 2, 3, 4 & 5

44. Which of the following is True?

1) In case of special circumstances enabling availment of credit, ITC on Capital Goods must be availed

within 1 year from the date of the issue of the tax invoice by the supplier.

2) If the claim of ITC pertaining to CGST, SGST/UTGST, IGST exceeds INR 2,00,000 each, the declaration

needs to be certified by a practicing Chartered Accountant/Cost Accountant.

3) The declaration for availing ITC is to be filed within 60 days from the date when the registered person

becomes eligible to avail ITC.

4) If refractory bricks, moulds and dies, jigs and fixtures are supplied as scrap, the taxable person may pay

tax on the transaction value only rather than reversal @ 5% on quarterly basis.

5) In case of change in constitution of a registered person like sale, demerger, transfer of business,

amalgamation, merger etc., the unutilized ITC is not transferable to the new entity.


a. 1, 4

b. 1, 2, 3, 4

c. 1, 2, 4, 5

d. 1, 3, 4


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1. C 2. C 3. B 4. C 5. B 6. D 7. C

8. D 9. D 10. C 11. D 12. C 13. D 14. B

15. A 16. D 17. B 18. C 19. A 20. D 21. A

22. C 23. D 24. A 25. A 26. B 27. B 28. B

29. D 30. B 31. A 32. D 33. A 34. D 35. A

36. A 37. C 38. C 39. D 40. D 41. A 42. C

43. A 44. A

CA Kishan Kumar MCQs – Registration May 2019

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1. Mr. A has started supply of goods in Delhi. He is required to obtain registration if his aggregate turnover

exceeds ____________ during a financial year.

a) INR 10 lakh

b) INR 20 lakh

c) INR 30 lakh

d) INR 50 lakh

2. Aggregate turnover includes:

a) Taxable supplies of goods or service or both

b) Exempt supplies of goods

c) Exports

d) All of the above

3. Which of the statements is correct?

a) Persons making any inter-State taxable supply of goods is required to obtain registration compulsorily

b) A person to whom UIN has been granted cannot be applied for cancellation for registration

c) The cancellation of registration under either SGST Act/UTGST Act shall be deemed to be a cancellation of

registration under CGST Act

d) All of the above

4. Which of the following persons are not liable for registration?

a) Any person engaged exclusively in supplying services wholly exempt from tax

b) Casual Taxable Person

c) Both (a) and (b)


ICAI Sample MCQs

5. The persons making inter-State supplies from Madhya Pradesh is compulsorily required to get registered

under GST,

a. if his all India based aggregate turnover exceeds INR 20 lakh in a financial year

b. if his all India based aggregate turnover exceeds INR 10 lakh in a financial year

c. irrespective of the amount of aggregate turnover in a financial year

d. in case of making inter-State supply of taxable goods, irrespective of the amount of aggregate turnover in

a financial year

6. How the aggregate turnover is calculated for computing threshold limit of registration?

i. Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by

a person on reverse charge basis), exempt supplies, export of goods/services and interstate supplies of a

person having same PAN computed on all India basis.

ii. Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by


2 | P a g e


person computed for each state separately.

iii. Aggregate value of all taxable intrastate supplies, export of goods/services and exempt supplies of a

person having same PAN computed for each state separately.

iv. Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by


person having same PAN computed on all India basis and excluding taxes if any charged under CGST Act,

SGST Act and IGST Act.


(a) (i)

(b) (ii)

(c) (iii)

(d) (iv)

7. Within how many days a person should apply for registration?

a. Within 60 days from the date he becomes liable for registration.

b. Within 30 days from the date he becomes liable for registration.

c. No Time Limit

d. Within 90 days from the date he becomes liable for registration.

8. A person having _______business verticals in a State ______ obtain a separate registration for each

business vertical.

a. Single, shall

b. Multiple, shall

c. Multiple, may

d. Single, may

9. What is the validity of the registration certificate?

a. One year

b. No validity

c. Valid till it is cancelled.

d. Five years.

10. Within how many days an application for revocation of cancellation of registration can be made?

a. Within 7 days from the date of service of the cancellation order.

b. Within 15 days from the date of issue of the cancellation order.

c. Within 45 days from the date of issue of the cancellation order.

d. Within 30 days from the date of service of the cancellation order.

11. The registration certificate granted to Non-resident taxable person is valid for days from the effective date of

registration.

a. 30


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b. 60

c. 90

d. 120

12. Which of the following statement is true for Mr. X, a casual taxable person? a. Mr. X is not required to take registration under GST.

b. Mr. X is required to get registration under GST, if the aggregate turnover in a financial year exceeds `

20lakh.

c. Mr. X can opt for voluntary registration under GST.

d. Mr. X has to compulsorily get registered under GST irrespective of the threshold limit.

MCQs for Practice

13. If an entity has multiple branches within the same state, it requires

a) Registration for each branch separately

b) Single registration for all the branches

c) Multiple registration or single registration at the option of the Assessee

d) Registration for each branch separately if the turnover of each branch exceeds INR 20 Lakhs

14. If an entity has branches in different states /union territory it requires

a) Registration for each branch separately

b) Separate registration in each state/ Union territory

c) Separate registration in each state/union territory but single registration for all the branches within the

state/ union territory

d) Registration for each branch separately if the turnover of each branch exceeds INR 20 Lakhs

15. If an entity has separate business verticals within a state, the entity

a) Requires single registration within a state even if it has separate verticals

b) Requires registration for each business vertical separately

c) May take single registration for all the business verticals or take registration separately for each such

verticals

d) May take single registration for all the business verticals or take registration separately for each such

verticals if the turnover of each vertical exceeds INR 20 Lakhs.

16. R has started business of supplying toys in Jammu & Kashmir. He is required to obtain registration if his

aggregate turnover during a financial year exceeds

a) INR 50 LAKH

b) INR 10 LAKH

c) INR 20 LAKH

d) INR 40 LAKH

17. Which of the following persons are not liable for registration?


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a) Any person engaged exclusively in supplying goods or services wholly exempt from tax

b) Causal taxable person

c) Non-resident taxable person


18. An agriculturist is not required to take registration if he supplies

a) Any agricultural produce

b) Any agricultural produce grown by him or other agriculturalist

c) Agricultural produce out of cultivation of land

d) All the above

19. Which of the following forms are used for applicable for registration?

a) Form GSTR-1

b) Form GSTR-2

c) Form GST REG-01

d) Form GST REG-02

20. Which of the following statement are correct?

a) Voluntary registration not possible under GST

b) Voluntarily registered person is not liable to comply with all the provisions of the GST

c) A person may get himself registered voluntarily and shall comply with all the provisions of GST


21. An E-commerce operator should get itself registered

a) Irrespective of the threshold limit

b) If his aggregate turnover exceeds the threshold limit of INR 20,00,000

c) If he is liable to collect tax at source and his aggregate turnover exceeds the threshold limit

d) If he is liable to collect tax at source

22. There will be deemed approval of registration if no action is taken on application

a) Within a period of 3 working days from the date of submission of the application

b) Within a period of 7 working days from the date of submission of the application

c) Within a period of 10 working days from the date of submission of the application

d) Within a period of 14 working days from the date of submission of the application

23. A certificate of registration shall be issued by the proper officer in form

a) GST REG-02

b) GST REG-03

c) GST REG-04

d) GST REG-06

24. The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid:


5 | P a g e

a) For the period specified in the application for registration

b) 90 days from the effective date of registration

c) For the period specified in the application for registration or 90 days from the effective date of

registration; whichever is earlier

d) For the period specified in the application for registration or 120 days from the effective date of

registration; whichever is earlier

25. Which of the following requires amendment in the registration certificate?

a) Change of name of the registered person

b) Change in constitution of the registered person

c) Switching over from composition scheme to normal scheme or vice versa

d) All of the above

26. A voluntarily registered person’s registration can be cancelled if the person does not start business within

a) 3 months from the date of registration

b) 6 months from the date of registration

c) 9 months from the date of registration

d) 1 months from the date of registration

27. Registration can be cancelled by the proper officer if the person registered under composition scheme has not

furnished return for

a) 3 consecutive tax periods

b) 6 consecutive tax periods

c) For a consecutive period of 6 months

d) For a consecutive period of 1 year

28. Any registered person, whose registration is cancelled by the proper officer on his own motion may apply to

such officer for revocation of cancellation of the registration in the prescribed manner within____ from the

date of service of the cancellation order.

a. 180 days

b. 120 days

c. 90 days

d. 30 days

29. The proper officers may cancel suo motu the registered where a person paying tax has not furnished returns

for ____

a. 3 consecutive tax periods

b. 4 consecutive tax periods

c. 2 consecutive tax periods

d. 5 consecutive tax periods

30. Which of the following person/entities shall be granted a Unique Identity Number u/s 25 of CGST Act, 2017?


6 | P a g e

I. Specialised agency of the United Nations Organisation

II. Embassy of foreign countries

III. Specialised branches of non-resident large tax-payer

IV. Multilateral Financial Institution


a. I only

b. I and II only

c. All I to IV

d. I, II and III

31. As per section 25 of CGST Act, 2017, a casual taxable person shall apply for registration at least _____ prior

to the commencement of business.

a. 5 days

b. 10 days

c. 7 days

d. 30 days

32. Which of the person is not liable to be registered under the CGST Act, 2017?

I. Person engaged exclusively in the business of supplying goods or services or both that is not liable to tax

II. Person engaged exclusively in the business of supplying goods or services or both that is wholly exempt

from tax


a. I only

b. II only

c. Both I and II

d. Neither I nor II

33. Which of the following persons are required to be registered under GST?

I. Inter-state supplier

II. Person who are required to pay tax under reverse charge mechanism

III. Input service distributor

IV. Electronic commerce operator


a. I only

b. I & II only

c. I, II, III & IV

d. All I, II, III & IV

34. As per section 22(3) of CGST Act, where a business carried on by taxable person registered is transferred,

whether on account of succession or otherwise, to another person as a going concern, the transferee or the

successor, as the case may be-

a. Shall not be liable to take fresh registration again under the GST


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b. Shall be liable to be registered at the option of such transferee or successor

c. Shall be liable to registered with effect from the date of such transfer or succession

d. Shall be liable to be registered within 1 year from the date of transfer

35. Which of the following persons are required to be registered under the GST?

1. Supplier of taxable goods or services

2. Every person who holds a license under the existing law

3. An agriculturist

4. Any person engaged exclusively in the business of supplying goods or services or both that are not liable

to tax or wholly exempt from tax.


a. 1 & 2

b. 2 & 3

c. 1, 2 & 4


36. Match the following with reference to provisions of CGST Act, 2017?

List I List II

1. Persons not liable for registration P. Section 21

2. Procedure for registration Q. Section 22

3. Persons liable for registration R. Section 23

4. Compulsory registration for certain cases S. Section 24

5. Deemed registration T. Section 25

U. Section 26


1. 2. 3. 4. 5.

a. R T U S Q

b. T R U S Q

c. R T Q S U

d. R T Q U S

37. Who among the following is included in definition of “Agriculturist” as defined in Section 2(7) of the CGST

Act, 2017?

(I) Individual

(II) HUF

(III) Partnership Firm

(IV) Company


a. I

b. I & II

c. I, II & III

d. I, II, III & IV


8 | P a g e

38. As per CGST act, 2017 ______ means a distinguishable component of an enterprise that is engaged in the

supply of individual goods or services or a group of related goods or services which is subject to risks and

returns that are different from those of the other business verticals-

a. Business

b. Business vertical

c. Organization

d. Continuous business

39. Which of the following persons are required to be registered under the GST?

1) Casual taxable person with turnover 0f INR 12,00,000 in Assam making taxable supplies of handicraft

goods

2) Person with turnover 0f INR 12,00,000 in Delhi making inter-state taxable supplies of handicraft goods

3) Job workers engaged in making inter-State supply of services to a registered person having turnover of

INR 22,00,000 in Delhi

4) Persons making only reverse charge supplies


a. 1 & 3

b. 2 & 4

c. 1, 2 & 4



1) Non-Resident Taxable Person (NRTP) may be granted registration on the basis of other prescribed

documents

2) Unique Identity Number granted to specified organizations are applicable all over India

3) Unique Identity Number may be assigned by the proper officer after receiving a recommendation from

the Ministry of External Affairs,

4) A person to whom UIN has been allotted cannot apply for cancellation of registration within one year

from date of registration


a. 1, 2 & 3

b. 1, 3 & 4

c. 1, 2 & 4

d. All of the above


1) Physical verification of the place of business of a registered person may be conducted before grant of

registration.

2) The verification report along with other documents is to be uploaded in the prescribed form on the GST

Common Portal, within 15 working days following the date of such verification.

3) Reply to SCN served by PO on person for registration needs to be filed by applicant within 7 days


9 | P a g e

4) Approval of PO is required in case any amendment is to be made in registration certificate


a. 1, 3 & 4

b. 1, 2 & 3

c. 2 & 3

d. All of the above


1) Amendment in core field includes change in address of Principal place of business from one state to

another.

2) Amendment is not possible in case of change of constitution of registered person.

3) In case suo-motu cancellation of registration by the proper officer, the registered person may apply for

revocation of the cancellation within 30 days from the date of service of the order of cancellation of

registration,

4) A person needs take separate registration under CGST Act and SGST Act.

5) Registration of a person is deemed to be cancelled when is cancelled under both CGST Act as well as

SGST Act.


a. 1, 3, 4 & 5

b. 1, 2 & 3

c. 2 & 3

d. All of the above


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1. B 2. D 3. D 4. A 5. D 6. D 7. B

8. C 9. C 10. D 11. C 12. D 13. B 14. C

15. C 16. C 17. A 18. C 19. C 20. C 21. A

22. A 23. D 24. C 25. D 26. B 27. A 28. D

29. A 30. D 31. A 32. C 33. D 34. C 35. A

36. C 37. B 38. B 39. A 40. A 41. C 42. C

CA Kishan Kumar MCQs – Tax Invoice, Credit and Debit Notes May 2019

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1. In case of taxable supply of services, invoice shall be issued within a period of __________ from the date of

supply of service.

a) 30 days

b) 45 days

c) 60 days

d) 90 days

2. In case of taxable supply of services by an insurer, invoice shall be issued within a period of __________

from the date of supply of service.

a) 30 days

b) 45 days

c) 60 days

d) 90 days

3. In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice

shall be issued:

a) before or at the time when the supplier of service receives the payment

b) on or before the due date of payment

c) Either (a) or (b)


4. In case of continuous supply of services, where due date of payment is not ascertainable from the contract,

invoice shall be issued:

a) before or at the time when the supplier of service receives the payment

b) on or before the due date of payment

c) Either (a) or (b)


5. Where the goods being sent or taken on approval for sale or return are removed before the supply takes place,

the invoice shall be issued:

a) before/at the time of supply

b) 6 months from the date of removal

c) Earlier of (a) or (b)


ICAI Sample MCQs

6. Mr. X, a registered person deals in supply of taxable goods. He need not issue tax invoice for the goods

supplied on 16.04.20XX as the value of the goods is .

a. INR 1,200

b. INR600

c. INR150

d. INR200


2 | P a g e

MCQs for Practice

7. Registered person may issue a consolidated tax invoice for such supplies at the close of each day in respect of

all such supplies provided

a) The recipient is not a registered person

b) The recipient does not require such invoice

c) The value of goods and services or both per invoice is less than INR 200

d) All the above conditions are satisfied

8. In case of supply of exempted goods or services or both, the registered person shall issue

a) A tax invoice

b) A bill of supply

c) Receipt voucher

d) Any of the above

9. In case of supply of goods by a composition dealer the registered person shall issue

a) A tax invoice

b) A bill of supply

c) Receipt voucher

d) Any of the above

10. Where advance payment is received, the registered person shall issue

a) A tax invoice

b) A bill of supply

c) Receipt voucher

d) Any of the above

11. The registered person who has supplied goods or services or both may issue a credit Note

a) Where the taxable value or tax charged in that invoice is found to exceed the taxable value or tax payable

in respect of such supply

b) Where the goods supplied are returned by the recipient

c) Where goods or services or both supplied are found to be deficient

d) In all the above cases

12. The registered person who has received a credit note shall declare the details of such credit note in the return

for the month during which such credit note has been issued but not later than

a) September following the end of the financial year in which such supply was made

b) The date of furnishing of the relevant annual return

c) September following the end of the financial year in which such supply was made or the date of furnishing

of the relevant annual return; whichever is earlier

d) 9 months from the date of issue of credit note


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13. The registered person who has supplied such goods or services or both shall issue to the recipient a debit note

where a tax invoice has been issued for any goods or services or both and the taxable value or tax charged in

that tax invoice is found to be

a) Less than the taxable value or tax payable in respect of such supply

b) More than the taxable value or tax payable in respect of such supply

c) Less or more than the taxable value or tax payable in respect of such supply

d) Less than the taxable value or tax payable in respect of such supply by INR 100

14. The last date for declaring the details of a credit note issued on 25.1.2018 for a supply made on 19.9.2017 is

a) 31.12.2018 i.e. actual date for filing annual return

b) 20.7.2018

c) 20.9.2018

d) 20.10.2018

15. A registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than

______ subject to such condition and in such manner as may be prescribed.

a. INR 100

b. INR 200

c. INR 500

d. INR 1,000

16. A registered person may, within ________ from the date of issuance of certificate of registration and in such

manner as may be prescribed issue a revised invoice against the invoice already issued during the period

beginning with the effective date of registration till the date of issuance of certificate of registration to him.

a. 1 month

b. 2 months

c. 3 months

d. 4 months

17. The invoice in case of taxable supply of services shall be issued within a period of ______ from the date of

supply of service. However, if the supplier is an insurance company or banking company or a financial

institution or NBFC, invoice can be issued within______ from the date of supply of services

a. 30 days; 45 days

b. 45 days; 30 days

c. 60 days; 90 days

d. 90 days; 60 days

18. As per section 2(37) of the CGST Act, 2017, “credit note” means a document issued by a registered person

under-

a. Section 34 (1)

b. Section 35 (1)

c. Section 36 (2)

d. Section 37 (3)


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19. The tax invoice should contain the ________, the tax charged thereon and such other particulars as may be

prescribed.

a. Description

b. Quantity

c. Value of goods

d. All of the above

20. ________ of the CGST Act, 2017 specifies the time limit for raising invoice for goods.

a. Section 31

b. Section 30

c. Section 32

d. Section 28

21. Which of the following section makes the provisions relating to maintenance of “accounts and other records”

under the CGST Act 2017?

a. Section 35

b. Section 34

c. Section 36

d. Section 40

22. The tax invoice in case of supplier of goods is issued in

a. Triplicate

b. Duplicate

c. Either (a) or (b) at the option of Taxpayer

d. Either (a) or (b) at the option of PO

23. What is the rate of tax if Rate of tax is not determinable?

a. 9%

b. 12%

c. 18%

d. 28%

24. What is the nature of supply if the nature of Supply is not determinable?

a. Intra-state

b. Inter-state



25. The tax invoice in case of supplier of goods is issued in

a. Triplicate

b. Duplicate



5 | P a g e


26. Which of the following category of suppliers is allowed to issue documents in lieu of tax invoice?

1) Insurer/Banking company/Financial institution/ NBFC

2) Goods Transport Agency (GTA) supplying services in relation to transportation of goods by road in a

goods carriage

3) Supplier of passenger transportation service

4) Central Government and State Government in relation to their taxable supplies Select the correct answer from the options given below-

a. 1, 2, 3

b. 2 & 3

c. 1 & 4

d. All of the above

27. In which of the following cases, goods may be removed through delivery challan instead of tax invoice?

1) Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is

not known.

2) Transportation of goods for job Work

3) Transportation of goods for reasons other than by way of supply

4) Sale on approval basis

5) Intra-state branch transfers


a. 1, 2, 3

b. 1, 2, 3 & 4

c. 1, 4 & 5

d. All of the above


a. Registered taxpayer can issue only tax invoice while unregistered taxpayer can issue only bill of supply

b. Section 31 prescribes a format for the Tax Invoice.

c. In case of inter-state supplies to an unregistered recipient, a consolidated revised tax invoice cannot be

issued if the value of supply exceeds INR 2,50,000.

d. HSN in India comprises of 6 digits.


1) HSN is required to be quoted by a supplier of goods if its turnover exceeds 1.5 crores.

2) Scanned copy of Tax Invoice is required to be uploaded in GST common portal electronically

3) Revised tax invoice cannot be issued on a consolidated basis

4) Tax invoices may be issued manually or electronically


a. 1, 2 & 4


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b. 1, 2 & 3

c. 2 & 3

d. 1 & 4


1) HSN is required on Tax Invoice as well as Bill of supply if prescribed limit of turnover is exceeded.

2) Consolidated tax invoice may be issued if the recipient is composition dealer and value is less than 200.

3) Registered taxpayer can issue both tax invoice and bill of supply, as the case may be, but unregistered

taxpayer can issue only bill of supply.

4) Where the goods are being transported in a semi knocked down or completely knocked down condition or

in batches or lots, the supplier shall issue the tax invoice after dispatch of the last consignment


a. 1, 3

b. 1, 3 & 4

c. 1, 2 & 3

d. All of the above


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1. A 2. B 3. B 4. A 5. C 6. C 7. D

8. B 9. B 10. C 11. D 12. C 13. A 14. D

15. B 16. A 17. A 18. A 19. D 20. A 21. A

22. A 23. C 24. B 25. B 26. A 27. D 28. C

29. D 30. A

CA Kishan Kumar MCQs – Payment of Tax May 2019

1 | P a g e


1. Which of these electronic ledgers are maintained online?

a) Electronic liability register

b) Electronic credit ledger

c) Electronic cash ledger

d) All of the above

2. Deposits towards tax, penalty, interest, fee or any other amount are credited into the _________________

of a taxable person.




d) All of the above

3. Input tax credit as self-assessed in the return of the registered person shall be credited to which of the

following ledger?




d) All of the above

4. Which of the following items are debited to electronic credit ledger?

a) Output tax

b) Interest

c) Penalty

d) All of the above

5. Balance in electronic credit ledger under SGST can be used against which liability?

a) SGST Liability only

b) SGST and IGST liability

c) SGST, IGST and CGST liability


6. Which input tax credit cannot be claimed against which output tax liability?

a) IGST, SGST

b) CGST, IGST

c) SGST, IGST

d) CGST, SGST

7. Interest is payable on:

a) Belated payment of tax

b) Undue/excess claim of input tax credit

c) Undue/ excess reduction in output tax liability

d) All of the above


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8. Which of the following liability cannot be adjusted against input tax credit of CGST?

a) IGST

b) SGST/UTGST

c) All of the above


9. Which of the following shall be discharged first, while discharging liability of a taxable person?

a) All dues related to previous tax period

b) All dues related to current tax period

c) Demand raised under section 73 and 74

d) No such condition is mandatory

10. Interest is calculated:

a) From the day following the day on which tax becomes due to be paid

b) From the last day such tax was due to be paid

c) No period is specified


11. Which date is considered as date of deposit of the tax dues

a) Date of presentation of cheque or

b) Date of payment or

c) Date of credit of amount in the account of Government

ICAI Sample MCQs

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

a. Last day of the month to which payment relates

b. Within 10 days of the subsequent month

c. Within 20 days of the subsequent month

d. Within 15 days of the subsequent month

13. Balance in electronic credit ledger can be utilized against which liability?

a. Output tax payable

b. Interest

c. Penalty

d. All of them

MCQs for Practice

14. Which of the following persons are liable to pay GST?

a) Supplier of goods or services

b) Recipient under the reverse charge mechanism in specified cases

c) E - commerce operators


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d) All the above

15. The electronic cash ledger shall be maintained in form

a) GST PMT -02

b) GST PMT -04

c) GST PMT – 05

d) GST PMT-06

16. The electronic credit ledger shall be maintained in Form

a) GST PMT -02

b) GST PMT -04

c) GST PMT – 05

d) GST PMT-06

17. Payment of output GST can be done by debiting

a) Electronic cash ledger


c) Either electronic cash ledger or electronic credit ledger

d) Electronic liability register

18. Interest on delayed payment of tax is payable at such rate as may be notified by the Government on the

recommendation of the GST Council but not exceeding

a) 12%

b) 18%

c) 24%

d) 36%

19. A taxable person who makes an undue or excess claim of input tax credit shall pay interest on such undue or

excess claim at such rate as may be notified by the Government on the recommendation of the GST council but

not exceeding

a) 12%

b) 18%

c) 24%

d) 36%

20. A taxable person who makes an undue or excess claim of reduction of output tax liability shall pay interest on

such undue or excess claim at such rate as may be notified by the Government on the recommendation of the

GST Council but not exceeding

a) 12%

b) 18%

c) 24%

d) 36%


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21. Unjust enrichment means –

a. Getting loss due to benefit of another

b. Getting refund under indirect taxes

c. Getting benefit at the expenses of another

d. Increase in taxes due fault of another

22. The electronic liability ledger shall be maintained in Form

a. GST PMT - 01

b. GST PMT - 02

c. GST PMT – 05

d. GST PMT - 06

23. Which of the following is True in case of electronic cash ledger?

1) Amount available under SGST can be utilized for discharging the liability under CGST.

2) Amount available under SGST can be utilized for discharging the liability under IGST.

3) The amount available in the Electronic Cash Ledger can be utilized for payment of any liability towards

tax, interest, penalty, fees or any other amount under respective head.

4) Amount available under SGST Interest can be utilized for discharging the liability under IGST Interest.


a. 2, 3, 4

b. 3

c. 1, 3, 4

d. 3, 4


1) In case of deposit in Electronic Cash Ledger through Over the Counter (OTC), maximum amount allowed

is 10,000 per challan per tax period by cash only.

2) In case of deposit in Electronic Cash Ledger through Over the Counter (OTC), maximum amount allowed

is 10,000 per challan per tax period by cash, cheque or demand draft.

3) It is mandatary to generate challans Manual or online on GST common portal.

4) There is a single challan prescribed for all taxes, fees, penalty, interest and other payments to be made under the GST regime.


a. 1, 4

b. 1, 3, 4

c. 2, 3, 4

d. 2, 4


1) CIN is an 18-digit number.

2) CPIN is a 14-digit number


5 | P a g e

3) CIN is an indication that the payment has been realized and credited to the account of appropriate

government.

4) Bank Reference Number is an indication that the payment has been realized and credited to the account

of appropriate government.


a. 1,3

b. 2, 3

c. 1, 2, 3

d. 1, 2, 4


1) Any discrepancy in the liability/credit/cash ledger should be reported through common portal in GST

PMT -04.

2) The liability for interest can be settled by adjustment with balance in Electronic Cash Ledger only and not

with balance in electronic credit ledger.

3) While filing the GST Return, if balance in electronic liability ledger is debit, the return is invalid.

4) A taxable person who has erroneously paid IGST instead of CGST and SGST is entitled to adjust it with

CGST and SGST liability.


a. 2, 3, 4

b. 1, 2, 3

c. 2, 3

d. All of the above


1) Amount available under one major head (SGST/UTGST, CGST, IGST or CESS) under electronic cash

ledger cannot be utilized for discharging the liability under any other major head.

2) An e-challan generated through GST common portal remains valid for a period of 15 days.

3) A taxable person who has paid erroneous taxes is entitled to claim refund of such erroneous tax provided

he first restores discharge of correct taxes

4) Failure to pay the correct type of taxes (IGST instead of CGST and SGST) attracts payment of interest @

18%.


a. 1, 2, 3

b. 2, 3, 4

c. 1, 2, 4

d. All of the above


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1. D 2. C 3. B 4. A 5. B 6. D 7. D

8. B 9. A 10. A 11. C 12. C 13. A 14. D

15. C 16. A 17. C 18. B 19. C 20. C 21. C

22. A 23. B 24. D 25. B 26. B 27. A

CA Kishan Kumar MCQs – Returns May 2019

1 | P a g e


1. Who is required to furnish details of outward supplies in Form GSTR-1?

a) Person paying tax under composition scheme

b) Non-resident taxable person

c) Both (a) & (b)


2. What does N stand for in HSN?

a) Network

b) Nationalization

c) Nomenclature

d) Nomination

3. Which form is furnished for submission of details of outward supplies u/s 37?

a) GSTR-1

b) GSTR-2

c) GSTR-3

d) GSTR-5

4. What is the due date for submission of monthly GSTR-1?

a) on or before 10th day of the immediately succeeding month

b) on or before 15th day of the immediately succeeding month

c) on or before 17th day of the immediately succeeding month

d) on or before 20th day of the immediately succeeding month

5. Composition tax payer is required to file return in Form no. ______.

a) GSTR-2

b) GSTR-3

c) GSTR-4

d) GSTR-5

6. The due date for filing GSTR-3B is _______.

a) on 10th day of the next month

b) on 15th day of the next month

c) on 17th day of the next month

d) on or before 20th day of the next month

7. Which of the following are not required to file the Annual Return?

a) Input Service Distributor

b) Casual Taxable Person

c) Non-resident Taxpayer

d) All of the above

8. The maximum amount of late fee payable by any registered person on failure to furnish return u/s 39 by the

due date is INR _________.


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a) 1,000

b) 5,000

c) 10,000

d) 25,000

9. The due date of filing Final Return is ______.

a) 20th of the next month

b) 18th of the month succeeding the quarter

c) Within three months of the date of cancellation or date of order of cancellation, whichever is later

d) 31st December of next financial year

MCQs for Practice

10. As per GST Law only citizen of India can act at as GST practitioner

a. False

b. True

c. Partly one


11. Which of the following person can act as Practitioner?

1. Retired officer of commercial tax department of any State Government.

2. Retired officer of Nationalized banks

3. Sales tax practitioner having 6 years’ experience after his enrolment

4. A person working as tax return preparer for 2 years from the date of his enrolment


1 2 3 4

a. ✓ ✓ x x

b. x x ✓ ✓

c. ✓ x X ✓

d. ✓ x ✓ x

12. Who is authorised to conduct audit under section 35(5) of the CGST Act, 2017?

1. Chartered accountant

2. Any person having master degree in finance of recognised university

3. Cost accountant

4. Company secretary


a. 1, 3 and 4

b. 4, 2, 3 and 1

c. 1 only

d. 1 or 3 only


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13. Every registered person required audit his accounts shall furnish a copy of audited annual accounts and a

reconciliation statement duly certified in _______ electronically through the common portal either directly

or through a facilitation centre notified by the commissioner

a. Form GSTR-9

b. Form GSTR-8C

c. Form GSTR- 9C

d. Form GSTR- 8

14. If any registered person after furnishing a return discovers any omission or incorrect particulars therein, other

than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify

such omission or incorrect particulars in the return to be furnished for the month or quarter during which

such omission or incorrect particulars are noticed subject to payment of interest. However, no such

rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of

return for the month of ________ following the end of financial year, or the actual date of furnishing of

relevant annual return, whichever is earlier.

a. October or first quarter

b. October or second quarter

c. September or first quarter

d. September or second quarter

15. Every registered person whose aggregate turnover during a financial year exceeds ______ shall get his

accounts audited

a. INR 1 crore

b. INR 2 crore

c. INR 5 crore

d. INR 10 crore

16. Annual return u/s 44 of the CGST Act, 2017 is required to be filed-

a. Physically

b. Electronically

c. Physically or electronically

d. Electronically but if online submission is not possible then with permission of proper officer physical

return can be filed

17. A registered person whose aggregate turnover during a FY exceeds INR 2 crores is required to file which of the

following documents.

a. Annual Return

b. Audited annual accounts

c. A Reconciliation Statement, duly certified, in prescribed form.

d. All of the above

18. A registered NRTP is required to file tax return in

a. Form GSTR-5

b. Form GSTR-4


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c. Form GSTR-6

d. Form GSTR-7

19. Last date for making amendments in GSTR-1 for a particular month is maximum within

a. Date of filing of monthly return for the month of September of following financial year.

b. Date of filing of the relevant annual return.

c. Earlier of (a) and (b)

d. End of the relevant.

20. Last date of filing GSTR-5 is

a. 20 days after the end of the calendar month or

b. within 7 days after the last day of validity period of the registration.

c. earlier of (a) and (b)

d. Earlier of date of filing of monthly return for the month of September of following financial year or date

of filing of the relevant annual return.

21. Last date for filing GSTR 10 is

a. within 3 months of the date of cancellation

b. within 3 months of the date of order of cancellation

c. Earlier of (a) and (b)

d. Earlier of date of filing of monthly return for the month of September of following financial year or date

of filing of the relevant annual return.

22. What kind of details is required to be uploaded in GSTR 1?

a. Invoice-wise details of ALL supplies made to registered person

b. Consolidated details of ALL Intra State supplies made to unregistered persons for each rate of tax

c. Debit Notes and credit notes issued during the month for invoices issued previously

d. All of the above.

23. Which of the following is required to file monthly return?

1) Registered person u/s 9

2) Dealer opting for composition levy

3) Non-Resident Taxable person

4) Casual Taxable person


a. 1

b. 1,3

c. 1, 3, 4

d. All of the above



5 | P a g e

1) All the returns under GST have to be mandatorily filed electronically or physically.

2) GSTR-1 cannot be filed during the period from 11th day to 15th day of month succeeding the tax period.

3) Taxpayers with aggregate turnover of up to Rs. 1.5 crore are required to file GSTR-1 quarterly.

4) Invoices can be modified/deleted any number of times till the submission of GSTR-3B of a tax period.


a. 1, 2, 3

b. 2, 3, 4

c. 2, 3

d. All of the above

25. Which of the following is True in respect of GSTR 1?

1) Invoices can be uploaded at any time during the tax period and not just at the time of filing.

2) Description of each item in the invoice will not be uploaded. Only HSN code will have to be fed.

3) GSTR 1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

4) All values like invoice value, taxable value and tax amounts is rounded up to 2 decimal digits.


a. 1, 2, 3

b. 2, 3, 4

c. 1, 2, 4

d. All of the above


1) Filing of GSTR-1 for current month is possible only when GSTR-1 for the previous month has been filed.

2) Taxpayer opting for voluntary cancellation of GSTIN will have to file GSTR-1 till the date of application

for cancellation.

3) A GSTP is required to be enrolled in each State he wants to practice.

4) For every statement furnished by the GST practitioner, a confirmation shall be sought from the registered

person over email or SMS.


a. 1, 3, 4

b. 1, 2, 3

c. 1, 2, 4

d. All of the above


1) A taxpayer may choose a different GSTP by simply making application to GST Authority.

2) A person paying tax under composition scheme is required to file the Annual Return in Form GSTR-9B.

3) Responsibility for correctness of any particulars furnished in the return or other details filed by the GSTP

rests with the registered person on whose behalf such return and details are furnished.


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4) The format for first return is the same as that for regular return.


a. 3, 4

b. 1, 2, 3

c. 2, 3, 4

d. All of the above

28. In which of the following cases, GSTR 1 can be filed before end of current tax period?

1) Casual taxpayers, after the closure of their business.

2) Cancellation of GSTIN of a normal taxpayer.

3) NRTP, after the closure of their business.

4) After obtaining approval from GST Authorities


a. 2

b. 1, 2

c. 1, 2, 3

d. All of the above

29. In which of the following cases, GSTR 1 can be filed before end of current tax period?

1) Casual taxpayers, after the closure of their business.

2) Cancellation of GSTIN of a normal taxpayer.

3) NRTP, after the closure of their business.

4) After obtaining approval from GST Authorities


a. 2

b. 1, 2

c. 1, 2, 3

d. All of the above

30. Which of the following is true?

a. A NRTP is not required to file annual return. Similarly, a casual taxable person is also not required to file

annual return.

b. A NRTP is not required to file annual return but a casual taxable person is required to file annual return.

c. Error or omission discovered on account of scrutiny, audit, inspection or enforcement activities by tax

authorities can be rectified earlier of date of filing of monthly return for the month of September of

following financial year or date of filing of the relevant annual return.

d. GST Audit can be done by a Chartered Accountant or a Cost Accountant or Company Secretary if the

aggregate turnover during a FY exceeds INR 2 crores.



7 | P a g e

a. 1

b. 2

c. 1, 4

d. 1, 3, 4


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1. D 2. C 3. A 4. A 5. C 6. D 7. D

8. B 9. C 10. B 11. D 12. D 13. C 14. D

15. B 16. B 17. D 18. A 19. C 20. C 21. D

22. D 23. C 24. B 25. D 26. B 27. A 28. B

29. B 30. A

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