McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 101. |
In case of sponsorship services provided by Mr. A to M/s AB Ltd., liability to pay GST is on: |
| A. | Mr. A |
| B. | M/s AB Ltd. |
| C. | Both |
| D. | None of the above |
| Answer» B. M/s AB Ltd. | |
| 102. |
In case of renting of land, inside an Industrial estate, by State Government to a registered manufacturing company, GST is: |
| A. | Exempted |
| B. | Applicable under Normal Charge |
| C. | Applicable under Reverse Charge |
| D. | None of the above |
| Answer» C. Applicable under Reverse Charge | |
| 103. |
In case of services by an insurance agent to Ms. ABC Insurance Co. Ltd., GST is to be paid by: |
| A. | Insurance Agent |
| B. | ABC Insurance Co. Ltd. |
| C. | Both |
| D. | None of the above |
| Answer» B. ABC Insurance Co. Ltd. | |
| 104. |
Sitting fees received by director of XYZ Ltd., is liable for GST in the hands of the |
| A. | Director |
| B. | XYZ Ltd. |
| C. | Both of above |
| D. | None of the above |
| Answer» B. XYZ Ltd. | |
| 105. |
Services by a recovery agent to M/s ZZZ Bank Ltd., are liable for GST in the hands of: |
| A. | M/s ZZZ Bank Ltd. |
| B. | Recovery agent |
| C. | Both the above |
| D. | None of the above |
| Answer» A. M/s ZZZ Bank Ltd. | |
| 106. |
In case of lottery procured from State Government by a lottery distributor, GST is payable by: |
| A. | Lottery distributor |
| B. | State Government |
| C. | Both the above |
| D. | None of the above |
| Answer» A. Lottery distributor | |
| 107. |
Reverse charge under section 9(3) of the CGST Act is applicable: |
| A. | Only on notified service |
| B. | Only on notified goods |
| C. | On Notified goods & services |
| D. | On None of the above |
| Answer» C. On Notified goods & services | |
| 108. |
If Tobacco leaves procured from an Agriculturist by a registered person, then: |
| A. | Reverse charge is applicable |
| B. | Normal charge is applicable |
| C. | Joint charge is applicable |
| D. | None of the above |
| Answer» A. Reverse charge is applicable | |
| 109. |
In case M/s. PQR Ltd., a registered person, has availed rent-a-cab service from M/s ABC Travels (Proprietor) service then which one of the following is true: |
| A. | Reverse charge is applicable as this is a notified service |
| B. | Reverse charge is applicable if ABC Travels is not registered |
| C. | Joint charge is applicable |
| D. | None of the above |
| Answer» B. Reverse charge is applicable if ABC Travels is not registered | |
| 110. |
Reverse charge is applicable: |
| A. | Only on intra-State supplie |
| B. | Only on inter-State supplies |
| C. | Both intra-State and inter-State supplies |
| D. | None of the above |
| Answer» C. Both intra-State and inter-State supplies | |
| 111. |
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 and services (except restaurant services) |
| C. | Person effecting supply of goods through an e-commerce operator liable to collect tax at source |
| D. | Person providing restaurant services |
| Answer» D. Person providing restaurant services | |
| 112. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for States other than special category States? |
| A. | 20 lac |
| B. | 10 lacs |
| C. | 50 lacs |
| D. | 1.5 crore |
| Answer» D. 1.5 crore | |
| 113. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for special category states? |
| A. | 25 lac |
| B. | 50 lacs |
| C. | 75 lacs |
| D. | 1 crore |
| Answer» C. 75 lacs | |
| 114. |
What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme? |
| A. | 2.5% |
| B. | 1% |
| C. | 0.5% |
| D. | No composition for manufacturer |
| Answer» C. 0.5% | |
| 115. |
What is the rate applicable under CGST to a registered person being a hotelier (providing restaurant and accommodation services) opting to pay taxes under composition scheme? |
| A. | 1% |
| B. | 0.5% |
| C. | 2.5% |
| D. | Not eligible for composition scheme thus liable to pay normal tax |
| Answer» D. Not eligible for composition scheme thus liable to pay normal tax | |
| 116. |
Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST. Determine the rate of total GST payable by him under composition scheme: |
| A. | 0.5% CGST & 0.5% SGST |
| B. | 2.5% CGST & 2.5% UTGST |
| C. | 5% IGST |
| D. | 5% UTGST |
| Answer» A. 0.5% CGST & 0.5% SGST | |
| 117. |
Can a registered person opt for composition scheme only for one out of his 3 business places having same Permanent Account Number? |
| 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 |
| Answer» B. No | |
| 118. |
Can composition scheme be availed if the registered person effects inter-State supplies? |
| 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 |
| Answer» B. No | |
| 119. |
Can a registered person under composition scheme claim input tax credit? |
| A. | Yes |
| B. | No |
| C. | Input tax credit on inward supply of goods only can be claimed |
| D. | Input tax credit on inward supply of services only can be claimed |
| Answer» B. No | |
| 120. |
Can a registered person opting for composition scheme collect tax on his outward supplies? |
| A. | Yes |
| B. | No |
| C. | Yes, if the amount of tax is prominently indicated in the invoice issued by him |
| D. | Yes, only on such goods as may be notified by the Central Government Manan Prakashan 15 |
| Answer» B. No | |
| 121. |
Which of the following will be excluded from the computation of ‘aggregate turnover’? |
| A. | Value of taxable supplies |
| B. | Value of exempt Supplies |
| C. | Non-taxable supplies |
| D. | Value of inward supplies on which tax is paid on reverse charge basis |
| Answer» D. Value of inward supplies on which tax is paid on reverse charge basis | |
| 122. |
What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2019-20 crosses threshold limit? |
| A. | He can continue under composition scheme till the end of the financial year |
| B. | He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year 2019-20 |
| C. | He will cease to remain under the composition scheme with immediate effect |
| D. | He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit |
| Answer» C. He will cease to remain under the composition scheme with immediate effect | |
| 123. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for a trader in Mumbai? |
| A. | 30 lac |
| B. | 10 lacs |
| C. | 150 lacs |
| D. | 75 lacs |
| Answer» C. 150 lacs | |
| 124. |
For certain Special category States, the reduced limit of ` 75 lakhs for opting composition scheme is available. The reduced limit of ` 75 Lakhs is not available for? |
| A. | Manipur |
| B. | Meghalaya |
| C. | Himachal Pradesh |
| D. | Jammu & Kashmir |
| Answer» D. Jammu & Kashmir | |
| 125. |
ABC Ltd is manufacturer of goods opting for Composition Scheme has effected turnover of ` 60 Lakhs during the financial year 2019-20. The CGST portion for composition tax payable by ABC Ltd is |
| A. | 30,000 |
| B. | 60,000 |
| C. | 30,000 |
| D. | 1,50,000 |
| Answer» A. 30,000 | |
| 126. |
GST Ltd. has business places at Lucknow, UP and Kanpur, UP having the same PAN; and Aggregate Turnover in the financial year not exceeding ` 75 lakhs. Can it opt composition levy for Lucknow and normal levy at Kanpur? |
| A. | No |
| B. | Yes |
| C. | Up-to an Aggregate Turnover of ` 75 lakhs at Lucknow only |
| D. | Subject to the approval of GST Council |
| Answer» A. No | |
| 127. |
Which one of the following is true? |
| A. | Entire income of any trust is exempted from GST |
| B. | Entire income of a registered trust is exempted from GST |
| C. | Incomes from specified/defined charitable activities of a trust are exempted from GST |
| D. | Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income |
| Answer» D. Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income | |
| 128. |
Select the correct statement? |
| A. | Transfer of a going concern wholly is not exempt from GST |
| B. | Transfer of a going concern is partly exempt from GST |
| C. | Transfer partly as going concern is exempted from GST |
| D. | Transfer of a going concern is exempt from GST |
| Answer» D. Transfer of a going concern is exempt from GST | |
| 129. |
Service by whom, by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution, is exempted? |
| A. | Central Government or State Government or Union territory or Local authority |
| B. | Governmental authority |
| C. | Municipality under Article 243 W of the Constitution |
| D. | All of above |
| Answer» D. All of above | |
| 130. |
Which is a wrong statement? |
| A. | All services of Department of Post are exempted |
| B. | All services by State/Central Governments/local authorities in relation to an aircraft or a vessel in a Port or an Airport are exempted |
| C. | All services by State/Central Governments/local authorities in relation to transport of passengers are exempted |
| D. | All the above mentioned |
| Answer» D. All the above mentioned | |
| 131. |
Services to a single residential unit is, exempted if: |
| A. | It is pure labour service only |
| B. | It is works contract only |
| C. | It is a part of residential complex only |
| D. | It is on ground floor without further super structure |
| Answer» A. It is pure labour service only | |
| 132. |
Which exemption option is right from the following? |
| A. | For letting out any immovable property |
| B. | For letting out any residential dwelling for use as residence |
| C. | For letting out any residential property irrespective of its use |
| D. | For none of the above |
| Answer» B. For letting out any residential dwelling for use as residence | |
| 133. |
Services by a hotel, inn, guest house, club or campsite are exempted for residential / lodging purposes - |
| A. | If the actual tariff for a unit of accommodation is below ` 10,000 |
| B. | If the actual tariff for a unit of accommodation is below ` 1,000 |
| C. | If the actual tariff for a unit of accommodation is exactly ` 1,000 |
| D. | If the actual tariff for a unit of accommodation is above ` 1,000 |
| Answer» B. If the actual tariff for a unit of accommodation is below ` 1,000 | |
| 134. |
Transportation of passengers exempted if - |
| A. | It is by air-conditioned stage carriage |
| B. | It is by air-conditioned contract carriage |
| C. | It is by non-air-conditioned stage carriage for tourism, charter or hire |
| D. | None of the above |
| Answer» D. None of the above | |
| 135. |
Transportation of passengers is exempted - |
| A. | In an air-conditioned railway coach |
| B. | In a vessel for public tourism purpose between places in India |
| C. | In a metered cab/auto rickshaw / e rickshaw |
| D. | In all the above mentioned |
| Answer» C. In a metered cab/auto rickshaw / e rickshaw | |
| 136. |
Transportation of goods is not exempted if it is - |
| A. | by a goods transport agency / courier agency |
| B. | by inland waterways |
| C. | by an aircraft from a place outside India upto the customs station of clearance in India |
| D. | by all the above mentioned |
| Answer» A. by a goods transport agency / courier agency | |
| 137. |
Transportation of agricultural produces, milk, salt and food grain including flour, pulses and rice, ‘relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap’, newspaper or magazines registered with the Registrar of Newspapers - is exempted – |
| A. | If it is by a goods transport agency |
| B. | If it is by a rail - within India |
| C. | If it is by a vessel - within India |
| D. | If it is by all of the above |
| Answer» D. If it is by all of the above | |
| 138. |
Which of the following is exempted – |
| A. | Services by way of loading, unloading, packing, storage or warehousing of rice |
| B. | Services by way of loading and unloading of jute |
| C. | Services by way of packing and storage or warehousing of rubber |
| D. | None of the above |
| Answer» A. Services by way of loading, unloading, packing, storage or warehousing of rice | |
| 139. |
Core services of which organization is not exempted - |
| A. | Services provided by the Insurance Regulatory and Development Authority of India to insurers |
| B. | Services provided by the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors |
| C. | Services by Port Trusts |
| D. | Services by the Reserve Bank of India |
| Answer» C. Services by Port Trusts | |
| 140. |
If the aggregate turnover of in F.Y. 2018-19 of M/s ABCD Enterprises, Kanchipuram, Tamil Nadu, India was ` 18 lakh, exemption is available for the following services rendered to ABCD Enterprises |
| A. | Arbitral Tribunal services |
| B. | Legal services by firm of advocates |
| C. | Legal services by senior advocate |
| D. | All of the above |
| Answer» D. All of the above | |
| 141. |
Which of the following is exempted? |
| A. | All kinds of long term (30 or more years) leases of industrial plots |
| B. | Long term (30 or more years) leases of industrial plots or plots for development of infrastructure for financial business by State Government Industrial Development Corporations or Undertakings to industrial units |
| C. | Short term (up to 30 years) leases of industrial plots by State Government Industrial Development Corporations or Undertakings to industrial units |
| D. | All kinds of short term (up to 30 years) lease of industrial plots |
| Answer» B. Long term (30 or more years) leases of industrial plots or plots for development of infrastructure for financial business by State Government Industrial Development Corporations or Undertakings to industrial units | |
| 142. |
One of the following is exempted from GST - |
| A. | Any business exhibition |
| B. | A business exhibition in India |
| C. | A business exhibition outside India |
| D. | None of the above |
| Answer» C. A business exhibition outside India | |
| 143. |
Which of the following is not exempted -? |
| A. | Health care service to human beings by authorized medical practitioners / para medics |
| B. | Health care services to Animals/Birds |
| C. | Slaughtering of animals |
| D. | Rearing horses |
| Answer» D. Rearing horses | |
| 144. |
Services by educational institution is exempted if the services are to - |
| A. | Any common man |
| B. | Its own students, faculty / staff |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Its own students, faculty / staff | |
| 145. |
Services by a Non-Profit entity (Registered or Unregistered) are exempted - |
| A. | If they are to its own members provided the contribution received is up to ` 7500 , per month from a member |
| B. | If they are to its own members, provided the contribution received is up to ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members |
| C. | If they are to its own members, provided the contribution is less than ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members |
| D. | If they are to its own members, provided the contribution is up to ` 7500 per month per member for common use specified members |
| Answer» B. If they are to its own members, provided the contribution received is up to ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members | |
| 146. |
Which of the following are exempted services? |
| A. | Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1 lakh |
| B. | Services by an artist by way of a performance in folk or classical art forms of music/ dance with consideration therefor not exceeding ` 1.5 lakh |
| C. | Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh |
| D. | Services by an artist as a brand ambassador by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh |
| Answer» C. Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh | |
| 147. |
Transportation of passengers by are exempt from GST. |
| A. | Railway in first clas |
| B. | Railway in an air-conditioned coach |
| C. | Metro |
| D. | All of the above |
| Answer» C. Metro | |
| 148. |
Transportation of by a GTA in a goods carriage is exempt from GST. |
| A. | Agricultural produce |
| B. | Organic manure |
| C. | Milk |
| D. | All of the above |
| Answer» D. All of the above | |
| 149. |
What of the following services provided to an educational institution – Debo Public School- are exempt from GST? |
| A. | Transportation of staff of the school |
| B. | Cleaning of the school |
| C. | Services relating to conduct of higher secondary exams |
| D. | All of the above |
| Answer» D. All of the above | |
| 150. |
Transportation of passengers by are exempt from GST. |
| A. | air conditioned stage carriage |
| B. | radio taxi |
| C. | air, terminating in Nagaland airport |
| D. | All of the above |
| Answer» C. air, terminating in Nagaland airport | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.