McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
A service would be called as “continuous supply of service”, if the service under a contract is provided continuously or on recurrent basis exceeding: |
| A. | One year |
| B. | 6 months |
| C. | 3 months |
| D. | 1 month |
| Answer» C. 3 months | |
| 2. |
Which law will govern the inter-state supply of goods or services? |
| A. | CGST |
| B. | SGST |
| C. | UTGST |
| D. | IGST |
| Answer» D. IGST | |
| 3. |
Which of the following has been kept out of the GST Levy? |
| A. | Generator |
| B. | Computer |
| C. | Jewellery |
| D. | Electricity |
| Answer» D. Electricity | |
| 4. |
Threshold limit of turnover for levy of GST in the case of a person having business (supply of goods and services) in Gujarat is |
| A. | 10 lakh |
| B. | 20 lakhs |
| C. | 30 lakhs |
| D. | 40 lakhs |
| Answer» B. 20 lakhs | |
| 5. |
Abhijit Sen is engaged in running a textile showroom at Gangtok (Sikkim). In order to avail composition scheme under GST law, his “aggregate turnover” in the preceding financial year should not have exceeded: |
| A. | 10 lakh |
| B. | 20 lakhs |
| C. | 50 lakhs |
| D. | 75 lakhs |
| Answer» C. 50 lakhs | |
| 6. |
When employer gifts goods to his employees, it will not be considered as taxable supply for the purpose of GST if the value of supply to an employee does not exceed: |
| A. | 5,000 |
| B. | 20,000 |
| C. | 50,000 |
| D. | 1,00,000 |
| Answer» C. 50,000 | |
| 7. |
Which of the following incomes/activities is liable for GST? |
| A. | Salary |
| B. | Salary and allowances of MPs |
| C. | Services by Court |
| D. | Sale of jewellery |
| Answer» D. Sale of jewellery | |
| 8. |
Which of the following represents composite supply? |
| A. | Doctor’s service with medicines |
| B. | Package with fruits and chocolates |
| C. | Coaching centre with monthly excursions on trekking |
| D. | Supply of computer printer and laptop |
| Answer» A. Doctor’s service with medicines | |
| 9. |
Mr. Ram supplied goods to Mr. Laxman. The invoice is dated 30.7.2019. Payment was received for the supply on 30.10.2019. The goods were dispatched on 5.8.2019. What is time of supply under GGST Act? |
| A. | 5.8.2019 |
| B. | 30.7.2019 |
| C. | 30.10.2019 |
| D. | None of the-above |
| Answer» B. 30.7.2019 | |
| 10. |
Which of the following though shown in Bill will not be included in determining the value of supply for the purpose of GST? |
| A. | Packing |
| B. | Discount |
| C. | Interest for late payment |
| D. | Installation charges |
| Answer» B. Discount | |
| 11. |
Madhan is located in Chennai. He has a branch office in Cochin. He wants to transfer goods. His turnover was always below ` 10 lakhs. His registration under GST is |
| A. | Voluntary |
| B. | Compulsory |
| C. | Compulsory only when turnover exceeds 20 lakhs |
| D. | As and when deemed by the Revenue |
| Answer» B. Compulsory | |
| 12. |
A taxable person whose registration has been cancelled or surrendered must file the final return of GST within |
| A. | 6 months of the cancellation |
| B. | 6 months after the end of the financial year |
| C. | 3 months after the end of the financial year |
| D. | 3 months after the date of cancellation |
| Answer» D. 3 months after the date of cancellation | |
| 13. |
Refreshments were supplied on board in an aircraft proceeding from Chennai to Delhi. It had a stop at Hyderabad. The refreshments were taken on board at Hyderabad. The place of supply is |
| A. | Delhi |
| B. | Chennai |
| C. | Hyderabad |
| D. | None of the above |
| Answer» C. Hyderabad | |
| 14. |
For the purpose of calculating the compensation payable to the States under the Goods and Service Tax (Compensation to States) Act, 2017 the base year for reckoning the Revenue is : |
| A. | 31.3.2014 |
| B. | 31.3.2015 |
| C. | 31.3.2016 |
| D. | 31.3.2017 |
| Answer» C. 31.3.2016 | |
| 15. |
Which of the following GST model is adopted in India? |
| A. | Australian model |
| B. | Bagchi-Poddar model |
| C. | Dual model |
| D. | American model |
| Answer» C. Dual model | |
| 16. |
For the purpose of deciding “aggregate turnover” in order to determine the GST payable under composition scheme, which of the following is to be excluded? |
| A. | Exemption supply |
| B. | Export of goods |
| C. | Inter-state branch transfer |
| D. | CGST |
| Answer» D. CGST | |
| 17. |
Export of service does not include: |
| A. | the supplier of service located outside India |
| B. | the recipient of service located outside India |
| C. | the place of supply of service is outside India |
| D. | the supplier of service is located in India |
| Answer» A. the supplier of service located outside India | |
| 18. |
GST Council comprises of various persons from Union and States and is being headed by a Chair Person who is |
| A. | Finance Secretary to Government of India |
| B. | Union Finance Minister |
| C. | Any State Finance Minister |
| D. | Union Revenue Minister |
| Answer» B. Union Finance Minister | |
| 19. |
Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate, where required, by a competent authority or after its first occupation, whichever is earlier for the purpose of taxability under the CGST Act, 2017 shall be treated as supply of: |
| A. | Good |
| B. | Both goods and services |
| C. | Services |
| D. | Contract work |
| Answer» C. Services | |
| 20. |
The following categories of registered persons are not being eligible for the Composition Scheme under the CGST Act, 2017:
|
| A. | (iii) and (iv) |
| B. | (ii), (iii) and (iv) |
| C. | (ii) and (iv) |
| D. | (i), (iii) and (iv) |
| Answer» A. (iii) and (iv) | |
| 21. |
Section 2(62) of the CGST Act, 2017 specifies input tax in relation to a registered person to mean Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both and also include:
|
| A. | All the above four |
| B. | (i), (ii) and (iv) |
| C. | (i) and (ii) |
| D. | (ii), (iii) and (iv) |
| Answer» B. (i), (ii) and (iv) | |
| 22. |
Mr. Pankaj of Delhi supplied goods to Mr. Krishna of Delhi for ` 1 lakh, on which total GST was charged @ 12%. Mr. Krishna, after purchase of goods, added 20% margin of profit (on cost) and sold the entire goods to Mr. Ravi of Delhi. The total amount of tax payable after claiming input tax on such transaction by Mr. Krishna is: |
| A. | 12,000 |
| B. | 14,400 |
| C. | 2,400 |
| D. | None of the above |
| Answer» C. 2,400 | |
| 23. |
Raj & Co., applied for voluntary registration under CGST Act, 2017 on 5th July, 2019 and the registration was granted on 15th July, 2019. Raj & Co., was having the stock available against the invoices for a period of 3 months old. Raj & Co., shall be eligible for input tax credit on such stock as held as on: |
| A. | 30th June, 2019 |
| B. | 05th July, 2019 |
| C. | 15th July, 2019 |
| D. | 14th July, 2019 |
| Answer» D. 14th July, 2019 | |
| 24. |
A casual taxable person or a non-resident taxable person shall be required to apply for registration at least days prior to the commencement of business. |
| A. | 30 |
| B. | 5 |
| C. | 15 |
| D. | 7 |
| Answer» B. 5 | |
| 25. |
Mr. Bala has made supply (within State) of taxable goods to the tune of ` 17 lakh, export supplies of ` 3 lakh and intra-State supply of exempt services of ` 4 lakh. His aggregate turnover as per section 2(6) of the CGST/ SGST Act, 2017 is |
| A. | 17 lakh |
| B. | 20 lakh |
| C. | 24 lakh |
| D. | None of the above |
| Answer» C. 24 lakh | |
| 26. |
A supply made by a taxable person to a recipient consisting of two or more taxable supply of goods or services of both or any combination thereof which are only bundled and supplied in conjunction with each other in the ordinarily course of business out of which one is a principal supply has been defined u/s 2(3) of CGST Act, 2017 to mean |
| A. | Mixed supply |
| B. | Composite supply |
| C. | Bundled supply |
| D. | Both (A) and (B) |
| Answer» B. Composite supply | |
| 27. |
Tax on inter-State supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged to |
| A. | CGST and SGST |
| B. | CGST and UTGST |
| C. | CGST and IGST |
| D. | IGST |
| Answer» D. IGST | |
| 28. |
Provision for levy and collection of tax on intra-State supply of goods or services or both by the Union Territory and for matters connected therewith or incidental thereto are being enumerated in |
| A. | CGST Act, 2017 |
| B. | IGST Act, 2017 |
| C. | UTGST Act, 2017 |
| D. | None of the above |
| Answer» C. UTGST Act, 2017 | |
| 29. |
The highest enabling limit of tax rate of IGST has been prescribed at |
| A. | 20% |
| B. | 14% |
| C. | 28% |
| D. | None of the above |
| Answer» D. None of the above | |
| 30. |
Special purpose vehicle to cater the IT needs of GST is called |
| A. | HSN |
| B. | GSTN |
| C. | IGSTN |
| D. | SGSTN |
| Answer» B. GSTN | |
| 31. |
GST in India is levied on the basis of |
| A. | Consumption principle |
| B. | Set-off against that payable principle |
| C. | Destination base principle |
| D. | Both consumption and destination base principle |
| Answer» D. Both consumption and destination base principle | |
| 32. |
The tax under GST legislation in India is being levied: |
| A. | Exclusively by Union and State Law |
| B. | Simultaneously by Union and State Laws |
| C. | Only by Union Laws |
| D. | Only by State Laws |
| Answer» B. Simultaneously by Union and State Laws | |
| 33. |
GST has replaced the following law(s) |
| A. | Custom |
| B. | VAT |
| C. | Central excise |
| D. | Both (b) and (c) |
| Answer» D. Both (b) and (c) | |
| 34. |
GST is a based tax. |
| A. | Origin |
| B. | Destination |
| C. | Territory |
| D. | None of the above |
| Answer» B. Destination | |
| 35. |
In IGST, I stands for |
| A. | Integrated |
| B. | International |
| C. | Inter-State |
| D. | Indian |
| Answer» A. Integrated | |
| 36. |
The Chairperson of GST Council is |
| A. | Prime Minister of India |
| B. | Finance Minister of India |
| C. | Minister of State for Finance |
| D. | None of the above |
| Answer» B. Finance Minister of India | |
| 37. |
Under GST law the phrase 'Goods' does not include |
| A. | Actionable claim |
| B. | Growing crops on the land agreed to be severed before supply |
| C. | Money and Securities |
| D. | None of the above |
| Answer» C. Money and Securities | |
| 38. |
The scope of supply of goods or services or both includes |
| A. | Sale |
| B. | Exchange |
| C. | Lease |
| D. | All of the above |
| Answer» D. All of the above | |
| 39. |
Sasta Bazar offers a free bucket with detergent purchased. It is a |
| A. | Composite supply |
| B. | Mixed supply |
| C. | Principal supply |
| D. | None of the above |
| Answer» B. Mixed supply | |
| 40. |
Which of the following is not a feature of indirect taxes ? |
| A. | Regressive nature |
| B. | Supply based taxes |
| C. | Rate of taxes are different from person to person |
| D. | No previous year and assessment year concept |
| Answer» C. Rate of taxes are different from person to person | |
| 41. |
Goods and Services Tax (GST) has been implemented in India w.e.f. |
| A. | 1st July, 2017 |
| B. | 1st June, 2017 |
| C. | 1st September, 2017 |
| D. | 1st April, 2017 |
| Answer» A. 1st July, 2017 | |
| 42. |
Mr. T, a thief has stolen motorbike and sells the motorbike to Mr. Q. It is illegal to steal a motorbike. Sale of motorbike will be considered as |
| A. | supply and liable to be taxed |
| B. | supply but not liable to be taxed |
| C. | not at all supply |
| D. | none of the above |
| Answer» A. supply and liable to be taxed | |
| 43. |
Mr. A booked a Rajdhani train ticket, which includes meal. It is |
| A. | Composite supply |
| B. | Mixed supply |
| C. | Not at all supply |
| D. | None of the above |
| Answer» A. Composite supply | |
| 44. |
Which of the following agricultural activity is exempted from GST ? |
| A. | Cultivation |
| B. | Supply of farm labour |
| C. | Renting of agro machinery |
| D. | All of the above |
| Answer» D. All of the above | |
| 45. |
GT Jewellers Ltd. paid ` 50 lakhs for sponsorship of Miss India beauty pageant in Mumbai to Stylist & Co. a partnership firm. GST is liable to be paid by |
| A. | GT Jewellers Ltd. |
| B. | Miss India beauty pageant |
| C. | Stylish & Co. |
| D. | Exempted Supply |
| Answer» A. GT Jewellers Ltd. | |
| 46. |
In case of inter-state stock transfer |
| A. | CGST will be levied |
| B. | IGST will be levied |
| C. | CGST and SGST will be levied |
| D. | No tax will be levied, as there is no supply |
| Answer» B. IGST will be levied | |
| 47. |
GST is a based tax. |
| A. | Territory |
| B. | Origin |
| C. | Destination |
| D. | None of the above |
| Answer» C. Destination | |
| 48. |
A new supplier has taxable intra-State sales, exempt intra-State sales and export sales of goods. He should get himself registered under GST law, where |
| A. | the aggregate value of taxable intra-State goods exceeds ` 20 lakhs |
| B. | the aggregate value of taxable as well as exempt intra-State goods exceeds ` 20 lakhs |
| C. | the aggregate value of all the three items exceeds ` 20 lakhs |
| D. | the aggregate value of taxable intra-State goods as well as export sales exceeds ` 20 lakhs |
| Answer» C. the aggregate value of all the three items exceeds ` 20 lakhs | |
| 49. |
Following is an intra-State supply |
| A. | Goods sent from Delhi to another dealer in Delhi |
| B. | Goods sent from Delhi to a SEZ in Noida, Uttar Pradesh |
| C. | Goods sent from Delhi to Chandigarh branch (Haryana) of the same supplier |
| D. | None of the above |
| Answer» A. Goods sent from Delhi to another dealer in Delhi | |
| 50. |
A casual taxable person is required to obtain registration where he makes |
| A. | Taxable inter-State supply |
| B. | Taxable inter-State or intra-State supply |
| C. | Taxable inter-State or intra-State supply whose proposed value exceeds ` 20 lakhs |
| D. | In none of the above situations |
| Answer» B. Taxable inter-State or intra-State supply | |
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