McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 51. |
Subbu, a registered supplier based at Erode coached the staff of a software company in Hyderabad, which is registered. The classes were held at Erode. The place of supply is |
| A. | As mutually agreed upon |
| B. | Hyderabad |
| C. | Erode |
| D. | Bengaluru |
| Answer» B. Hyderabad | |
| 52. |
Which of the following central taxes has been subsumed in the ambit of GST ? |
| A. | Central Excise duty |
| B. | Service Tax |
| C. | CVD on import |
| D. | All of the above |
| Answer» D. All of the above | |
| 53. |
GST is payable on the services provided by the employee to the employer in the course of employment on |
| A. | Regular basis |
| B. | Contract basis as employed by the company |
| C. | Contract basis as employed by a contractor |
| D. | None of the above |
| Answer» C. Contract basis as employed by a contractor | |
| 54. |
If a person, opting for composition scheme is liable to be registered on 1st October, 2019 and he has applied for registration on 17th November, 2019 and registration granted on 20th November, 2019 then the effective date of registration will be |
| A. | 20th November, 2019 |
| B. | 1st October, 2019 |
| C. | 17th November, 2019 |
| D. | 1st April, 2020 |
| Answer» A. 20th November, 2019 | |
| 55. |
In case of transport of goods by rail within India, which of the following item is an exempted supply ? |
| A. | Transport of postal mails and postal bag |
| B. | Transport of defence and military equipments |
| C. | Transportation of household effects |
| D. | Transport of alcoholic beverages |
| Answer» B. Transport of defence and military equipments | |
| 56. |
Mr. C of Chennai supplied goods to M/s Smart Jet Airlines of Chennai flying between DelhiMumbai. The goods are loaded in the aircraft in Delhi. The place of supply of goods will be |
| A. | Chennai |
| B. | Delhi |
| C. | Mumbai |
| D. | None of the above |
| Answer» B. Delhi | |
| 57. |
Gifts not exceeding in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. |
| A. | 20,000 |
| B. | 25,000 |
| C. | 50,000 |
| D. | 1,00,000 |
| Answer» C. 50,000 | |
| 58. |
Hospital charging room rent per day per room ` 1,200 on rooms provided to in-patients. It is |
| A. | Exempted supply |
| B. | Taxable supply |
| C. | Not at all supply |
| D. | None of the above |
| Answer» A. Exempted supply | |
| 59. |
In cases of change in rate of tax and amount is credited to the bank account after 4 working days from the date of change in rate of tax, the date of receipt of payment will be |
| A. | Date of book entry or date of bank entry, whichever is earlier |
| B. | Date of bank entry |
| C. | Date of book entry |
| D. | Date of book entry or date of bank entry, whichever is later |
| Answer» B. Date of bank entry | |
| 60. |
Who is the person allowed to cancel a GST registration ? |
| A. | The registered person himself |
| B. | The GST officer |
| C. | The legal heir of the registered person |
| D. | All of the above |
| Answer» D. All of the above | |
| 61. |
Where the application of registration is found to be deficient for any reason and the Proper Officer requires any further information then he shall intimate to the applicant in form |
| A. | GST REG-01 |
| B. | GST REG-02 |
| C. | GST REG-03 |
| D. | GST REG-04 |
| Answer» C. GST REG-03 | |
| 62. |
Aminpur Post Office provided basic mail services of ` 2,50,000 and speed post services of ` 3,00,000. The value of taxable services will be |
| A. | 2,50,000 |
| B. | 3,00,000 |
| C. | 5,50,000 |
| D. | None of the above |
| Answer» B. 3,00,000 | |
| 63. |
An individual acts as a referee in a football match organised by Sports Authority of India. Which one of the following is correct ? |
| A. | The individual is liable to pay GST |
| B. | Sports Authority of India is liable to pay GST |
| C. | Exempted from GST |
| D. | Outside the scope of supply |
| Answer» C. Exempted from GST | |
| 64. |
Goods under CGST Act excludes |
| A. | Securities |
| B. | Unsecured debts |
| C. | Right to participate in the draw to be held in a lottery |
| D. | Growing crops |
| Answer» A. Securities | |
| 65. |
A famous actress went to London and availed cosmetic or plastic surgery for her nose. Whether GST is liable to be paid ? |
| A. | Ye |
| B. | No |
| C. | No supply at all |
| D. | None of the above |
| Answer» B. No | |
| 66. |
In relation to a registered person, input tax means the Central tax, State tax, Integrated tax or Union Territory tax charged on any supply of goods or services or both made to him and includes |
| A. | The integrated goods and services tax charged on import of goods |
| B. | The tax payable under Reverse Charge Mechanism as per SGST Act |
| C. | The tax payable under Reverse Charge Mechanism as per UTGST Act |
| D. | The tax payable under the composition levy |
| Answer» D. The tax payable under the composition levy | |
| 67. |
A supply made by a taxable person to a recipient of goods being buyer consisting of two or more taxable supplies of goods or services or 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 as |
| A. | Composite supply |
| B. | Mixed supply |
| C. | Higher rate tax supply |
| D. | Bundled supply |
| Answer» A. Composite supply | |
| 68. |
The payment of tax by electronic operator who does not have physical presence in taxable territory in India be made by |
| A. | e-commerce operator himself |
| B. | his appointed representative in India |
| C. | the person who receives supply |
| D. | either (a) and (b) |
| Answer» B. his appointed representative in India | |
| 69. |
The time of supply "where goods or services or both have been supplied in a situation where the invoice issued before the change in the rate of tax but payment received after the change in rate of tax" as per section 14 of the CGST Act, 2017 shall be |
| A. | Date of issue of invoice |
| B. | Date of receipt of payment or the date of issue of invoice whichever is earlier |
| C. | Date of receipt of payment |
| D. | None of the above |
| Answer» A. Date of issue of invoice | |
| 70. |
Which of the following called the Union territory as being covered under Union Territory Goods and Service Tax Act, (UTGST), 2017 ? |
| A. | Sikkim |
| B. | Puducherry |
| C. | Daman and Diu |
| D. | None of the above |
| Answer» B. Puducherry | |
| 71. |
Subsidy given by the Central Government or a State Government while determining value of taxable supply under Goods and Services Tax (GST) as per section 15 of the CGST Act, 2017 |
| A. | included in the transaction value i.e. (value of taxable supply) |
| B. | just ignored no treatment |
| C. | shall not be included in transaction value i.e. (value of taxable supply) |
| D. | deducted from the transaction value i.e. (value of taxable supply) |
| Answer» C. shall not be included in transaction value i.e. (value of taxable supply) | |
| 72. |
Patel of Surat, Gujarat supplied good to Patil of Mumbai, Maharashtra for ` 1,20,000 (excluding GST) but after adding 30% profit margin (on cost). Patil is also a taxable person. IGST rate is 18%. The amount of input tax credit that can be availed and the maximum time limit for availing such input tax credit by Patil of Mumbai, Maharashtra as per CGST Act, 2017 is |
| A. | 28,080 and within 6 months from the date of issue of tax invoice |
| B. | 7,020 and within next quarter from the date of issue of tax invoice |
| C. | 21,600 and within 1 year from the date of issue of tax invoice |
| D. | None of the above |
| Answer» C. 21,600 and within 1 year from the date of issue of tax invoice | |
| 73. |
Find out the following, who are the persons not liable for registration under the CGST Act, 2017. |
| A. | Non-resident making taxable supply |
| B. | Person supplying exempted goods and services or goods or services which are not liable for tax under GST |
| C. | An agriculturist, to the extent of supply of produce out of cultivation of land |
| D. | Both (b) and (c) |
| Answer» D. Both (b) and (c) | |
| 74. |
Who is authorised under Integrated Goods and Service Tax (IGST) Act, to levy tax ? |
| A. | State |
| B. | Centre |
| C. | Union Territory |
| D. | Both (a) and (b) |
| Answer» B. Centre | |
| 75. |
The available balance of input tax credit in the electronic ledger of the registered person on account of Union territory tax shall be utilised as per section 9 of UTGST Act, 2017 |
| A. | first towards payment of central tax |
| B. | first towards payment of integrated tax |
| C. | first towards payment of union territory tax and the amount remaining, if any towards payment of integrated tax |
| D. | none of the above |
| Answer» C. first towards payment of union territory tax and the amount remaining, if any towards payment of integrated tax | |
| 76. |
Exempt supply means supply of any goods or services or both which may be wholly exempt from tax under section 11 or under section 6 of the IGST Act and includes
|
| A. | (i), (ii) and (iii) |
| B. | (i) and (iv) |
| C. | (i) and (iii) |
| D. | All the four above |
| Answer» C. (i) and (iii) | |
| 77. |
The exception to the general rule that "normally, the supplier of goods and services is liable to pay tax on supply, even if he does not collect from his customer i.e. recipient of supply of goods and services" shall be applicable where there are |
| A. | supply from an unregistered dealer to registered dealer |
| B. | specified services through an e-commerce operator |
| C. | both (a) and (b) |
| D. | none of the above |
| Answer» C. both (a) and (b) | |
| 78. |
Power to declare certain activities / transactions as neither supply of goods nor of services is given in |
| A. | Schedule IV |
| B. | Schedule III |
| C. | Schedule II |
| D. | Schedule I |
| Answer» B. Schedule III | |
| 79. |
The proper officer may cancel the GST registration, if any registered person other than a person paying tax under section 10 of CGST Act, 2017 has not furnished the returns for a continuous period of |
| A. | 12 month |
| B. | 9 months |
| C. | 6 months |
| D. | 3 months |
| Answer» C. 6 months | |
| 80. |
ABC Ltd. of Mumbai supplied goods to XYZ Ltd. of Delhi under a contract for the goods to be delivered at the factory of the buyers. Goods removed from the factory of ABC Ltd. on 9-8-2019 and were delivered in the factory of XYZ Ltd. of Delhi on 16-8-2019. Invoice for the suppliers was raised by ABC Ltd. on 18-8-2019. Payment of the bill was received on 20-9-2019. The time of supply in this case under GST be taken as |
| A. | 9-8-2019 |
| B. | 16-8-2019 |
| C. | 18-8-2019 |
| D. | 20-9-2019 |
| Answer» A. 9-8-2019 | |
| 81. |
Section 24 of the CGST Act, 2017 lists categories of persons who are required to take registration even if they are not covered under section 22 of the Act. Find out from the following categories of persons who are being required to take registration as per section 24 of the CGST Act, 2017:
|
| A. | (i), (iii) and (v) |
| B. | (i), (ii), (iv) and (v) |
| C. | (i), (ii) and (v) |
| D. | All the 5 in (i) to (v) |
| Answer» D. All the 5 in (i) to (v) | |
| 82. |
Section 2(6) of the CGST / SGST Act, 2017 defines aggregate turnover which is being computed on all India basis excluding the taxes charged under CGST Act, SGST Act, UTGST Act and IGST Act. Aggregate turnover shall include all supplies made by a taxable person comprising of
|
| A. | (i), (iii), (iv) and (v) |
| B. | (i), (iii), (iv) and (vi) |
| C. | All the above in (i) to (vi) |
| D. | (i), (ii), (iii) and (iv) |
| Answer» D. (i), (ii), (iii) and (iv) | |
| 83. |
Decision of the GST Council will be adopted when it has the support of |
| A. | one-third majority |
| B. | two-third majority |
| C. | three-fourth majority |
| D. | simple majority |
| Answer» C. three-fourth majority | |
| 84. |
The compensation to states for loss of revenue on account of implementation of GST is for years. |
| A. | 2 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» B. 5 | |
| 85. |
When agriculturist supplies tobacco leaves to a factory, registered under GST, the liability to pay GST is on |
| A. | tobacco leaves seller |
| B. | the buyer under reverse charge |
| C. | the agriculturist |
| D. | consumer of tobacco leaves |
| Answer» B. the buyer under reverse charge | |
| 86. |
When an unregistered dealer supplied goods to a registered dealer, the time of supply under reverse charge shall be earliest of the |
| A. | date of receipt of good |
| B. | date of supply of goods |
| C. | date of loading of goods in transport |
| D. | date of intimation of supply of goods |
| Answer» A. date of receipt of good | |
| 87. |
Composition scheme is not applicable to service providers except the following. |
| A. | Consultancy Service |
| B. | Restaurant Service |
| C. | Beauty Parlours |
| D. | Cleaning Work |
| Answer» B. Restaurant Service | |
| 88. |
To avail input tax credit, which of the following factors is not relevant ? |
| A. | Tax invoice |
| B. | Furnishing of return by supplier |
| C. | Receipt of goods and services |
| D. | Payment by buyer for supply received |
| Answer» D. Payment by buyer for supply received | |
| 89. |
Input tax credit cannot be availed after the expiry of from the date of issue of tax invoice of supply. |
| A. | 6 month |
| B. | 3 months |
| C. | 1 year |
| D. | 2 years |
| Answer» C. 1 year | |
| 90. |
When goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance as per provisions of CGST Act, 2017, is called as |
| A. | Mixed Supply |
| B. | Uniform Supply |
| C. | Complex Supply |
| D. | Composite Supply |
| Answer» D. Composite Supply | |
| 91. |
A service shall be a continuous supply of service agreed to be provided continuously or on recurrent basis under a contract when the period of service exceeds |
| A. | 1 month |
| B. | 3 months |
| C. | 6 months |
| D. | 1 year |
| Answer» B. 3 months | |
| 92. |
Which of the following is not liable to be registered as per provisions of CGST Act, 2017 ? |
| A. | Person supplying exempted good |
| B. | Non-resident making taxable supplies |
| C. | Deductor of tax at source |
| D. | Supplier on behalf of other person |
| Answer» A. Person supplying exempted good | |
| 93. |
Miss. Raksha is engaged in providing private coaching services in Noida, Uttar Pradesh and is not registered under GST till 25 Sept. 2019. Her aggregate turnover is ` 19,00,000 on 30 Sept. 2019. She got GT registration on 30 Sept. 2019. Which of the following options are available to her ? |
| A. | She can pay tax @ 18%, charge it from customer and avail full input tax credit on procurements made. |
| B. | She can pay tax @ 6% under exemption scheme for service providers but she cannot charge GST from customer and also cannot avail input tax credit. |
| C. | She is not liable for registration since her aggregate turnover is less than ` 40,00,000 |
| D. | Either (a) or (b) |
| Answer» D. Either (a) or (b) | |
| 94. |
Mr. Arun, a registered supplier, is engaged in selling sweets. The sweets are sold in boxes and the cost of each sweet box is ` 500. In order to increase his turnover, he purchased certain juice cans @ ` 20 each and added juice can with every sweet box as a gift. A sweet box along with free juice can is sold at ` 500 each. Which of the statements is correct ? |
| A. | He is liable to pay tax on ` 520 and eligible to claim input tax credit on purchase of juice cans |
| B. | He is liable to pay tax on ` 500 and not eligible to claim input tax credit on purchase of juice cans |
| C. | He is liable to pay tax on ` 500 and also eligible to claim input tax credit on purchase of juice cans |
| D. | Either (a) or (b) |
| Answer» C. He is liable to pay tax on ` 500 and also eligible to claim input tax credit on purchase of juice cans | |
| 95. |
Which is not considered as supply under GST Law ? |
| A. | Stock transferred from one establishment in Delhi to another establishment in Gurgaon, Haryana registered under same PAN. |
| B. | CA Ram supplies accounting services to CA Radha in lieu of taxation services received from CA Radha. |
| C. | A Health club supplies lunch to its members at its annual meeting against a nominal charge |
| D. | Mr. A sells a flat to Mr. B (i) Date of completion certificate - 31-1-2020 (ii) Date of agreement with buyer - 1-2-2020 (iii) Consideration received - 5-2-2020 |
| Answer» D. Mr. A sells a flat to Mr. B (i) Date of completion certificate - 31-1-2020 (ii) Date of agreement with buyer - 1-2-2020 (iii) Consideration received - 5-2-2020 | |
| 96. |
With reference to the provisions relating to transaction value under section 15 of the CGST Act, 2017, which of the following is not correct ? |
| A. | Central excise duty will not be included in transaction value for supply of tobacco. |
| B. | Municipal taxes paid by tenant will be included in transaction value for supply of renting service. |
| C. | Entertainment tax included in movie ticket will form part of transaction value |
| D. | Customer makes payment of freight which is payable by the supplier, directly to the service provider. However, supplier does not include this amount in this invoice. Such amount will be included in transaction value of the supplier. |
| Answer» A. Central excise duty will not be included in transaction value for supply of tobacco. | |
| 97. |
Which of the following services are notified under section 9(3) of CGST Act, 2017 or section 5(3) of IGST Act, 2017 the tax on which shall be paid on reverse charge basis by the recipient of such supply ?
|
| A. | (i) and (ii) |
| B. | Only (ii) |
| C. | (i), (ii), (iii) |
| D. | (i) and (iv) |
| Answer» B. Only (ii) | |
| 98. |
Mr. Dev Anand is engaged in providing services of facilitating sale and purchase of securities to various clients. He is also engaged in trading of securities. His turnover details are as follows : Trading of securities - ` 40,00,000 Brokerage on account of facilitating transactions in securities - ` 30,00,000 You are required to ascertain aggregate turnover of Mr. Dev Anand under GST : |
| A. | 30,00,000 |
| B. | 40,00,000 |
| C. | 70,00,000 |
| D. | Nil |
| Answer» A. 30,00,000 | |
| 99. |
Mr. Pappu Singh, commenced his business in Feb. 2019. He has established following units :
|
| A. | Maharashtra - 2 : Delhi - 1, Goa - Optional 1 or 2 |
| B. | Maharashtra - Optional 1 or 2 : Delhi - 1, Goa - Optional 1 or 2 |
| C. | Maharashtra - 1 : Delhi - 1, Goa - 1 |
| D. | Maharashtra - 2 : Delhi - 1, Goa - 2 |
| Answer» A. Maharashtra - 2 : Delhi - 1, Goa - Optional 1 or 2 | |
| 100. |
A non-resident taxable person is required to apply for registration |
| A. | within 30 days from the date on which he becomes liable to registration |
| B. | within 60 days from the date on which he becomes liable to registration |
| C. | at least 5 days prior to the commencement of business |
| D. | none of the above |
| Answer» C. at least 5 days prior to the commencement of business | |
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