Quiznetik

Indirect Taxes- GST | Set 3

1. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate is applicable when services provided, and invoice raised after change in rate of tax in September, 2019, but payment received in August 2019 :

Correct : D. 24% as invoice was issued in the period during which supply is completed

2. There was increase in tax rate from 20% to 24% w.e.f. 1.9.2019. Which of the following rate is applicable if the supplier has opted for composition levy and invoice was issued after change in rate of tax in September, 2019 but payment received, and goods supplied in August, 2019 :

Correct : C. 20% as payment was received in the period during which the supply was effected

3. Which of the following is an inter-State supply?

Correct : D. All the above

4. Which of the following is an intrastate supply?

Correct : C. Supplier of goods located in Delhi and place of supply of goods in Delhi

5. Which of the following transaction is inter-state supply of goods?

Correct : B. Location of supplier is in Lucknow, UP and place of supply is Mumbai

6. Which of the following transaction is inter-state supply of goods involving movement of goods? (1) Location of supplier is in Bangalore and location of recipient is in Mumbai and goods are shipped to Kolkata (2) Location of supplier is in Bangalore and place of supply is Mumbai (3) Location of supplier and place of supply is Bangalore (4) None of the above

Correct : A. 1 and 2

7. Supply of goods in the course of import into the territory of India is

Correct : B. Inter-State supply

8. Place of supply of a transaction in territorial waters is

Correct : C. Coastal state where the nearest point of the appropriate baseline is located

9. is levied on inter-state supply of goods and services.

Correct : C. IGST

10. IGST means

Correct : B. Integrated GST

11. supply shall attract IGST.

Correct : B. Inter-State

12. Unless and until notified, IGST shall not be levied on the inter-State supply of which of the following.

Correct : C. Petroleum

13. What is rate of tax of IGST?

Correct : C. CGST + SGST rate

14. is levied on imports of goods and services.

Correct : C. IGST

15. Import/Export is treated as in GST.

Correct : B. Inter-state supply

16. “Inter-State supplies” means

Correct : B. Any supply where the location of supplier and the place of supply are in the different states

17. “Import of services” means the supply of any service, where -

Correct : D. All of the above

18. Zero rated supply includes

Correct : D. Both (a) and (b)

19. The supply of goods to SEZ unit is treated as in the hands of the supplier for eligibility of ITC.

Correct : B. Deemed Taxable Supply

20. Place of supply in case of installation of elevator is

Correct : C. Where the installation of elevator is made

21. Place of supply of food taken on board at Delhi for an aircraft departing from Delhi to Bangalore via Hyderabad is

Correct : B. Delhi

22. What is location of supply in case of importation of goods?

Correct : B. Location of the importer

23. Place of supply of goods, other than supply of goods imported into, or exported from India, when supply involves movement of goods is the

Correct : A. Location of the goods at the time at which the movement terminates for delivery

24. Place of supply of goods, other than supply of goods imported into, or exported from India, when supply does not involve movement of goods is the

Correct : B. Location of the goods at the time of the delivery to the recipient

25. Place of supply of goods, other than supply of goods imported into, or exported from India, where the goods are assembled or installed is the

Correct : D. Place of the such assembly or installation

26. Place of supply of goods, other than supply of goods imported into, or exported from India, where the goods are supplied on board a conveyance such as vessel, an aircraft, a train or motor vehicle is the

Correct : C. Location at which such goods are taken on board

27. Where will be the place of supply when the goods are supplied on the direction of the third party?

Correct : C. Location of the third party

28. Where will be the place of supply of goods supplied in a train which is heading towards Delhi from Chennai, if the goods are taken on board at Coimbatore?

Correct : C. Coimbatore

29. In case of any ambiguity where the place of supply cannot be determined as provided in IGST Act, 2016 who will determine place of supply?

Correct : C. In a manner as may be prescribed

30. The place of supply of goods imported into India shall be the

Correct : A. Location of the importer

31. The place of supply of goods exported from India shall be the

Correct : D. Location outside India

32. Real estate agent in Delhi charges brokerage fee to Company A located in Chandigarh for assistance in getting a commercial property in Kolkata. Which is the place of supply in this case?

Correct : C. Kolkata

33. Mr. X a resident from Pune conducts training for employees of P Ltd. being a registered person under GST based out in Chennai at a resort in Darjeeling. The place of supply in this case is:

Correct : A. Chennai

34. If XYZ Ltd a company based out of Bangalore, awards online maintenance contract of its servers located in Mumbai office to Y INC, a company based out of USA, and as per the terms of the online maintenance Y INC shall be required to perform regular maintenance from USA using Internet, then the place of supply is

Correct : B. Mumbai

35. Mr. Y residing in Ahmedabad appoints an architect in Delhi to provide Indian traditional home design for his proposed construction at Los Angeles, the place of supply of service is

Correct : A. Los Angele

36. If NM shipping Co. located in Chennai charges ocean freight charges for transport of goods to California for a customer located in Bangalore, the place of supply of service will be

Correct : B. California

37. The default rule of place of supply of services made to a registered person shall be the

Correct : A. Location of the registered person

38. The default rule of place of supply of services made to any person other than a registered person if address on record exist shall be the

Correct : C. Location of the recipient

39. The default rule of place of supply of services made to any person other than a registered person if address on record doesn’t exist shall be the

Correct : B. Location of the service provider

40. Place of supply of services of architects in relation to the design of office building shall be the

Correct : C. Location of such office building

41. Place of supply of services in relation to lodging accommodation shall be the

Correct : C. Location at which the lodging accommodation is located

42. ABC Ltd of Delhi has entered into a contract with KSM Training Ltd. of Mumbai for training and performance appraisal of its employees. The services were performed at Nainital Training Centre of KSM Training Ltd. Determine the place of supply of services in case ABC Ltd is not registered.

Correct : B. Nainital

43. The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto shall be the

Correct : A. Place where the event is actually held

44. The place of supply of services provided by way of transportation of goods, including by mail or courier, to a person other than a registered person, shall be the

Correct : A. Place at which such goods are handed over for their transportation

45. Place of supply of services in relation to mobile connection for pre-paid customers other than through internet banking shall be the

Correct : A. Location where such prepayment is received as such vouchers are sold

46. The place of supply of passenger transportation services to a person other than a registered person, shall be the

Correct : B. Place where the passenger embarks on the conveyance for a continuous journey

47. The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle shall be the

Correct : C. Location of the first scheduled point of departure of that conveyance for the journey

48. The place of supply of insurance services to a registered person, shall be the

Correct : B. Location of the recipient

49. The value of supply of goods and services shall be the

Correct : A. Transaction value

50. The value of supply of goods and services shall be the

Correct : A. Transaction value

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

Correct : B. When the buyer and seller are related or price is not the sole consideration

52. If the goods are supplied to related persons then how should the taxable person ascertain the value of supplies?

Correct : C. Refer the Rules which prescribed for this purpose

53. Persons shall be deemed to be “related persons” if any person directly or indirectly owns, controls or holds or more of the outstanding voting stock or shares of both of them;

Correct : A. 25%

54. Persons shall be deemed to be “related persons” if

Correct : D. All of the above

55. The value of supply should include

Correct : D. All of the above

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

Correct : A. GST

57. The value of taxable supply should not include -

Correct : D. All of the above

58. Interest or late fee or penalty for delayed payment of any consideration for any supply

Correct : B. Shall be included from the value of taxable supply

59. Subsidies provided by the Central / State Govt.

Correct : A. Shall be excluded from the value of taxable supply

60. The value of supply should include -

Correct : D. All of the above

61. From the following information determine the value of taxable supply as per provisions of Section 15 of the CGST Act, 2017? Contracted value of supply of goods (including GST @ 18%) 11,80,000 The contracted value of supply includes the following: (1) Cost of primary packing 25,000 (2) Cost of protective packing at recipient’s request for safe transportation 15,000

Correct : A. 10,00,000

62. From the following information determine the value of taxable supply as per provisions of Section 15 of the CGST Act, 2017? Price (including GST @18%) 11,00,000 Other information : (i) Commission paid to agent by recipient on instruction of supplier not included in Price 5,000 (ii) Freight and insurance charges paid by recipient on behalf of supplier not included in Price 75,000

Correct : C. 10,00,000

63. What deductions are allowed from the transaction value

Correct : A. Discounts offered to customers, subject to conditions

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

Correct : D. all of the above

65. When deductions are allowed from the Transaction Value?

Correct : A. Discount offered to customers subject to conditions

66. Determine the value of taxable supply as per Section 15 of the CGST Act; 2017 : Contracted sale price of goods (including CGST and SGST @5%) 10,56,000 The contracted sale price includes the following elements of cost: (i) Cost of drawings and design 5,000 (ii) Cost of primary packing 2,000 (iii) Cost of packing at buyer’s request 4,000 (iv)Fright and insurance from ‘place of removal’ to buyer’s premises 43,000 A discount of 6,000 was given by the supplier at the time of supply of goods. CGST and SGST is levied @ 5%.

Correct : C. 10,00,000

67. Whether definition of Inputs includes capital goods.

Correct : B. No

68. Is it mandatory to capitalize the capital goods in books of Accounts?

Correct : A. Ye

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

Correct : A. Ye

70. The term “used in the course or furtherance of business” means?

Correct : C. It is used or intended to be used in the course of business

71. Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement of credit?

Correct : A. All four condition

72. Whether credit on inputs should be availed based on receipt of documents or receipt of goods

Correct : C. Both

73. In case supplier has deposited the taxes but the receiver has not received the documents, is receiver entitled to avail credit?

Correct : B. No as one of the conditions of 16(2) is not fulfilled

74. Input tax credit on capital goods and Inputs can be availed in one installment or in multiple installments?

Correct : C. In one installment

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

Correct : A. Bill of entry, Invoice raised on RCM supplies, etc.

76. The time limit to pay the value of supply with taxes to avail the input tax credit?

Correct : C. One hundred and eighty days

77. What is the time limit for taking input tax credit by a registered taxable person?

Correct : D. Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier Manan Prakashan 35

78. Can the recipient avail the Input tax credit for the part payment of the amount to the supplier within one hundred and eighty days?

Correct : C. Yes, but proportionately to the extent of value and tax paid

79. Whether credit can be availed without actual receipt of goods where goods are transferred through transfer of document of title before or during the movement of goods?

Correct : C. Yes, in specific instances

80. Whether depreciation on tax component of capital goods and Plant and Machinery and whether input tax credit is Permissible?

Correct : C. Input tax credit is eligible if depreciation on tax component is not availed

81. What is the maximum time limit to claim the Input tax credit?

Correct : C. Earliest of (a) or (b)

82. An assessee obtains new registration, voluntary registration, change of scheme from composition to regular scheme and from exempted goods/ services to taxable goods/services. It can avail credit on inputs lying in stock. What is the time limit for taking said credit?

Correct : A. 1 year from the date of invoice

83. Credit on Input services or capital goods held in stock can be availed in case of new Registration/ Voluntary Registration

Correct : B. No

84. In case of Compulsory registration, input tax credit can be availed on

Correct : A. stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act, provided application for registration is filed within 30 days from the due date

85. In case of Voluntary registration input tax credit can be availed

Correct : B. on stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act

86. Eligibility of credit on capital goods in case of change of scheme from Composition scheme to Regular scheme

Correct : C. Yes, immediately before the date from which he becomes liable to pay tax under the Regular scheme

87. Can the unutilized input tax credit be transferred in case of change in constitution of business?

Correct : C. Yes, it will be transferred only if there is provision for transfer of liabilities

88. Is Input tax fully restricted in case of switchover from taxable to exempt supplies

Correct : A. Ye

89. Is Input tax to be paid in case of switchover from taxable to exempt supplies

Correct : A. Yes, equivalent to the credit in respect of inputs held in stock (including semi- finished and finished goods) and on capital goods held in stock

90. Is Input tax to be reversed in case of supply of capital goods

Correct : C. Yes, to extent of credit taken as reduced by prescribed percentage or tax on transaction value whichever is higher

91. ITC can be taken on goods if goods not received by registered person but

Correct : D. Any of above

92. ITC can be availed on

Correct : D. Fulfilling all the above conditions

93. Maximum time limit for availing ITC is

Correct : C. Earliest of above two

94. ITC can be claimed by a registered person for

Correct : A. Taxable supplies for business purpose

95. How the aggregate turnover of ` 20 lakh is calculated ?

Correct : D. 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 and excluding taxes if any charged under CGST Act, SGST Act and IGST Act.

96. Whether all persons are mandatorily required to obtain registration?

Correct : C. Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services.

97. Which one of the following is true?

Correct : A. A person can’t collect tax unless he is registered.

98. Which of the following forms are used for registration?

Correct : C. Form GST REG-01

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

Correct : B. Within 30 days from the date he becomes liable for registration.

100. A person having business verticals in a State obtain a separate registration for each business vertical.

Correct : C. Multiple, may