Quiznetik

Indirect Taxes- GST | Set 5

1. 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?

Correct : D. CGST

2. Export of service does not include:

Correct : A. the supplier of service located outside India

3. GST Council comprises of various persons from Union and States and is being headed by a Chair Person who is

Correct : B. Union Finance Minister

4. 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:

Correct : C. Services

5. The following categories of registered persons are not being eligible for the Composition Scheme under the CGST Act, 2017: (i) Supplier of the Restaurant Services (ii) Manufacturer of notified goods (iii) Non-resident taxable persons (iv)Casual taxable person

Correct : A. (iii) and (iv)

6. 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: (i) Integrated goods and services, tax charged on import of goods (ii) Tax under the provisions of section 9(3) and 9(4) (iii) Tax paid under composition levy (iv)Tax under Union Territory Goods and Services Tax Act

Correct : B. (i), (ii) and (iv)

7. 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:

Correct : C. 2,400

8. 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:

Correct : D. 14th July, 2019

9. 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.

Correct : B. 5

10. 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

Correct : C. 24 lakh

11. 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

Correct : B. Composite supply

12. Tax on inter-State supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged to

Correct : D. IGST

13. 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

Correct : C. UTGST Act, 2017

14. The highest enabling limit of tax rate of IGST has been prescribed at

Correct : D. None of the above

15. Special purpose vehicle to cater the IT needs of GST is called

Correct : B. GSTN

16. GST in India is levied on the basis of

Correct : D. Both consumption and destination base principle

17. The tax under GST legislation in India is being levied:

Correct : B. Simultaneously by Union and State Laws

18. GST has replaced the following law(s)

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

19. GST is a based tax.

Correct : B. Destination

20. In IGST, I stands for

Correct : A. Integrated

21. The Chairperson of GST Council is

Correct : B. Finance Minister of India

22. Under GST law the phrase 'Goods' does not include

Correct : C. Money and Securities

23. The scope of supply of goods or services or both includes

Correct : D. All of the above

24. Sasta Bazar offers a free bucket with detergent purchased. It is a

Correct : B. Mixed supply

25. Which of the following is not a feature of indirect taxes ?

Correct : C. Rate of taxes are different from person to person

26. Goods and Services Tax (GST) has been implemented in India w.e.f.

Correct : A. 1st July, 2017

27. 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

Correct : A. supply and liable to be taxed

28. Mr. A booked a Rajdhani train ticket, which includes meal. It is

Correct : A. Composite supply

29. Which of the following agricultural activity is exempted from GST ?

Correct : D. All of the above

30. 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

Correct : A. GT Jewellers Ltd.

31. In case of inter-state stock transfer

Correct : B. IGST will be levied

32. GST is a based tax.

Correct : C. Destination

33. 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

Correct : C. the aggregate value of all the three items exceeds ` 20 lakhs

34. Following is an intra-State supply

Correct : A. Goods sent from Delhi to another dealer in Delhi

35. A casual taxable person is required to obtain registration where he makes

Correct : B. Taxable inter-State or intra-State supply

36. 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

Correct : B. Hyderabad

37. Which of the following central taxes has been subsumed in the ambit of GST ?

Correct : D. All of the above

38. GST is payable on the services provided by the employee to the employer in the course of employment on

Correct : C. Contract basis as employed by a contractor

39. 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

Correct : A. 20th November, 2019

40. In case of transport of goods by rail within India, which of the following item is an exempted supply ?

Correct : B. Transport of defence and military equipments

41. 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

Correct : B. Delhi

42. 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.

Correct : C. 50,000

43. Hospital charging room rent per day per room ` 1,200 on rooms provided to in-patients. It is

Correct : A. Exempted supply

44. 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

Correct : B. Date of bank entry

45. Who is the person allowed to cancel a GST registration ?

Correct : D. All of the above

46. 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

Correct : C. GST REG-03

47. 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

Correct : B. 3,00,000

48. An individual acts as a referee in a football match organised by Sports Authority of India. Which one of the following is correct ?

Correct : C. Exempted from GST

49. Goods under CGST Act excludes

Correct : A. Securities

50. A famous actress went to London and availed cosmetic or plastic surgery for her nose. Whether GST is liable to be paid ?

Correct : B. No

51. 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

Correct : D. The tax payable under the composition levy

52. 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

Correct : A. Composite supply

53. The payment of tax by electronic operator who does not have physical presence in taxable territory in India be made by

Correct : B. his appointed representative in India

54. 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

Correct : A. Date of issue of invoice

55. Which of the following called the Union territory as being covered under Union Territory Goods and Service Tax Act, (UTGST), 2017 ?

Correct : B. Puducherry

56. 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

Correct : C. shall not be included in transaction value i.e. (value of taxable supply)

57. 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

Correct : C. 21,600 and within 1 year from the date of issue of tax invoice

58. Find out the following, who are the persons not liable for registration under the CGST Act, 2017.

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

59. Who is authorised under Integrated Goods and Service Tax (IGST) Act, to levy tax ?

Correct : B. Centre

60. 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

Correct : C. first towards payment of union territory tax and the amount remaining, if any towards payment of integrated tax

61. 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 (i) non-taxable supply (ii) zero rated supply (iii) supply having nil rate of tax (iv) composite supply

Correct : C. (i) and (iii)

62. 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

Correct : C. both (a) and (b)

63. Power to declare certain activities / transactions as neither supply of goods nor of services is given in

Correct : B. Schedule III

64. 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

Correct : C. 6 months

65. 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

Correct : A. 9-8-2019

66. 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: (i) Casual taxable person (ii) Non-resident taxable person (iii) Recipient of service under Reverse Charge (iv)Inter-state supplier (v) Input service distributor

Correct : D. All the 5 in (i) to (v)

67. 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 (i) Taxable supply (ii) Exempt supply (iii) Export of goods and services (iv)All inter-state supply of person having same PAN (v) Supply on which tax is levied on reverse charge basis (vi)Value of all inward supply

Correct : D. (i), (ii), (iii) and (iv)

68. Decision of the GST Council will be adopted when it has the support of

Correct : C. three-fourth majority

69. The compensation to states for loss of revenue on account of implementation of GST is for years.

Correct : B. 5

70. When agriculturist supplies tobacco leaves to a factory, registered under GST, the liability to pay GST is on

Correct : B. the buyer under reverse charge

71. When an unregistered dealer supplied goods to a registered dealer, the time of supply under reverse charge shall be earliest of the

Correct : A. date of receipt of good

72. Composition scheme is not applicable to service providers except the following.

Correct : B. Restaurant Service

73. To avail input tax credit, which of the following factors is not relevant ?

Correct : D. Payment by buyer for supply received

74. Input tax credit cannot be availed after the expiry of from the date of issue of tax invoice of supply.

Correct : C. 1 year

75. 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

Correct : D. Composite Supply

76. 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

Correct : B. 3 months

77. Which of the following is not liable to be registered as per provisions of CGST Act, 2017 ?

Correct : A. Person supplying exempted good

78. 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 ?

Correct : D. Either (a) or (b)

79. 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 ?

Correct : C. He is liable to pay tax on ` 500 and also eligible to claim input tax credit on purchase of juice cans

80. Which is not considered as supply under GST Law ?

Correct : 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

81. With reference to the provisions relating to transaction value under section 15 of the CGST Act, 2017, which of the following is not correct ?

Correct : A. Central excise duty will not be included in transaction value for supply of tobacco.

82. 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 ? (i) Supply of security services provided by a person other than a body corporate to a composition tax payer (ii) Services supplied by an insurance agent to insurance company located in taxable territory (iii) Supply of services by way of renting of hotel accommodation through e-commerce operator. (iv)Supply of notified categories of goods or services or both by a supplier, who is not registered, to specified class of registered persons. Choose from the following options :

Correct : B. Only (ii)

83. 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 :

Correct : A. 30,00,000

84. Mr. Pappu Singh, commenced his business in Feb. 2019. He has established following units : (i) Unit A (in SEZ) and Unit B (non-SEZ) in the State of Maharashtra (ii) Unit C in Delhi (iii) Unit D and E in the State of Goa Mr. Pappu Singh has approached you to help him in determining the states and number registrations he is required to take under GST (presuming the fact that he is making taxable supply from each state and his aggregate turnover exceeds the threshold limit) :

Correct : A. Maharashtra - 2 : Delhi - 1, Goa - Optional 1 or 2

85. A non-resident taxable person is required to apply for registration

Correct : C. at least 5 days prior to the commencement of business

86. 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 (iii) Transportation of deceased (iv) Services by an employee to the employer in the course of employment

Correct : D. (iii) and (iv)

87. Indirect Tax is a .

Correct : A. Regressive tax

88. is levied on Inter-State supplies of goods or services or both.

Correct : C. IGST

89. The liability to pay tax on goods shall arise at the .

Correct : B. Time of supply

90. Input Tax Credit of CGST can be first utilised to pay output liability of .

Correct : B. CGST

91. The first 2 digits of GSTIN represent .

Correct : C. State code

92. of supply is the amount upon which tax is levied and collected.

Correct : A. Value

93. Input tax does not include .

Correct : C. Tax paid under composition levy