GST MCQs

1 . IGST is payable when the supply is ........

a) Interstate c) Intra-state

b) Intra- UT d) All of the above

Ans: (a)

2 . Maximum rate of CGST prescribed by law for intrastate supply made is.......

a) 18% c) 20%

b) 40% d) 28%+cess
Ans: (c) 20%

3 . Which of the following taxes have been subsumed in GST?

a) Central sales tax b) Central excise duty

c) VAT d) All of the above

Ans: (d)

4 . GST is levied on supply of all goods and service except.....

a) Alcoholic liquor for human consumption b) Tobacco

c) Health care service d) All of the above

Ans: (a)
5 . Aggregate turnover does not include-

(a) Inward supplies on which tax is payable on reverse charge basis

(b) Exempt supplies

(c) Export of goods or services or both

(d) Inter-State supplies of persons having the same PAN number

Ans: (a)

6 . Which of the following is/are included in definition of “Goods” as defined under section
2(52) of the CGST Act, 2017-

I. Money

II. Actionable claim

III. Security

IV. Growing crops

Select the correct answer from the options given below

a. IV only

b. II & III

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 c. II & IV

d. I & II

Ans: (c)

7 .A supply comprising of two or more supplies shall be treated as the supply

of that particular supply that attracts highest rate of tax.

a) Composite b) Mixed

c) Both (a) and (b) d) None of the above

Ans: (b)

8 . What are the taxes levied on an intra-State supply?

(a) CGST (b) SGST

(c) CGST and SGST (d) IGST

Ans: (c)
9 . Who will notify the rate of tax to be levied under CGST Act?

(a) Central Government

(b) State Government

(c) GST Council

(d) Central Government as per the recommendations of the GST Counci

Ans: (a)

10 . Which of the following taxes will be levied on imports?

(a) CGST (b) SGST

(c) IGST (d) CGST and SGST

Ans: (c)

11 . What is time of supply of goods, in case of forward charge?

(a) Date of issue of invoice

(b) Due date of issue of invoice

(c) Date of receipt of consideration by the supplier

(d) Earlier of (a) & (b)

Ans: (d)

12 . What is the time of supply of vouchers when the supply with respect to the voucher is
identifiable?

(a) Date of issue of voucher

(b) Date of redemption of voucher

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(c) Earlier of (a) & (b)

(d) (a) & (b) whichever is later

Ans: (a)

13 . What is the time of supply of vouchers when the supply with respect to the voucher is not
identifiable?

(a) Date of issue of voucher

(b) Date of redemption of voucher

(c) Earlier of (a) & (b)

(d) (a) & (b) whichever is later
Ans: (b)

14 . What is the time of supply of service if the invoice is issued within 30 days from the date
of provision of service?

a) Date of issue of invoice

b) Date on which the supplier receives payment

c) Date of provision of service

d) Earlier of (a) & (b)

Ans: (d)

15 . What is the time of supply of service where services are received from an associated
enterprise located outside India?

a) Date of entry of services in the books of account of recipient of service

b) Date of payment

c) Earlier of (a) & (b)

d) Date of entry of services in the books of the supplier of service

Ans: (c)

16 . What is the time of supply of services where the supplier is liable to pay tax under
forward charge and the invoice is not issued within prescribed period under section 31(2)?

a. Date of issue of invoice

b. Date of completion of provision of services

c. Date of receipt of payment

d. Date of completion of provision of service or date of receipt of payment; whichever is earlier.

Ans: (d)

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

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a) GST
b) Interest

c) Late fee

d) Commission

Ans: (a)

18 . The value of supply should include:

a) Any non-GST taxes, duties, cesses, fees charged separately by supplier

b) Interest, late fee or penalty for delayed payment of any consideration for any supply

c) Subsidies directly linked to the price except subsidies provided by the Central and State Governments

d) All of the above

Ans: (d)

19 . Which of the following forms part of transaction value?

1) GST compensation cess

2) Payments made to third parties by the recipient on behalf of the supplier in relation to the supply

3) Entertainment tax levied by local authority

4) Commission paid to an agent and recovered from the recipient

5) Inspection charges at recipient’s site

6) Charges for delay in payment waived off by supplier

State the correct answer from the options given below

a. 1, 2, 3, 4 & 5

b. 2, 3, 4, 5 & 6

c. 2, 3, 4 & 5

e. All of the above

Ans: (c)

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

(a) When the buyer and seller are related and price is not the sole consideration

(b) When the buyer and seller are unrelated or price is not the sole consideration

(c) It can never be rejected

(d) When the goods are sold at very low margins

Ans: (a)

21 . What deductions are allowed from the transaction value

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 (a) Discounts offered to customers, subject to conditions

(b) Packing Charges, subject to conditions

(c) Amount paid by customer on behalf of the supplier, subject to conditions

(d) Freight charges incurred by the supplier for CIF terms of supply, subject to conditions

Ans: (a)

22 . Rule 30 of the CGST Rules inter alia provides value of supply of goods or services or both
based on cost shall be ...................% of cost of production or manufacture or the cost of
acquisition of such goods or the cost of provision of such services

(a) 100

(b) 10

(c) 110

(d) 120
Ans: (c)
23 .Where the goods being sent or taken on approval for sale or return are removed before
the supply takes place, the invoice shall be issued:

a) before/at the time of supply

b) 6 months from the date of removal

c) Earlier of (a) or (b)

d) None of the above

Ans: (c)

24 . What is the nature of supply if the nature of Supply is not determinable?

a. Intra-state

b. Inter-state

c. Either (a) or (b) at the option of Taxpayer

d. Either (a) or (b) at the option of PO

Ans: (b)

25 . Which of the following persons can opt for the composition schemeunder sub-
sections (1) and (2) of section 10 of the CGST Act, 2017, inthe State of Delhi?
1 Registered person whose aggregate turnover in the precedingfinancial year did not
exceed ` 75 lakh.
2 Registered person whose aggregate turnover in the precedingfinancial year did not
exceed ` 1.5 crore.
3 A person engaged in manufacture of pan masala, tobacco andmanufactured tobacco
substitutes.
4 A person engaged in the manufacture of ice cream, other edibleice, whether or not
containing cocoa.
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 5 A person engaged exclusively in providing restaurant service.
6 A person engaged exclusively in supply of medicines.

(a) 1, 2, 3, 5
(b) 1, 2, 5, 6
(c) 2, 3, 4, 5
(d) 3, 4, 5, 6
Ans: (b)

27. Aircool Ltd., a supplier of air conditioners, is registered under GST inthe State of Maharashtra. It
has a policy to gift an air conditioner to its employees [residing in Gujarat] at the end of a financial
year in terms of the employment contract. The company installs such air conditioners at the residence
of the employees.
During the current financial year, the company gifted its employees
150 air conditioners and got the air conditioners installed at the residence of these employees.
The total open market value of such air conditioners is ` 52.50 lakh (excluding GST). The tax
rate on such air conditioners is 28% (14% CGST, 14% SGST and 28% IGST).
Compute the GST liability of Aircool Ltd., if any.

(a) ` 7,35,000 - CGST, ` 7,35,000 – SGST

(b) ` 14,70,000 - IGST

(c) Nil
(d) ` 7,35,000 – IGST
Ans: (c)

28. Jolly Electronics (P) Ltd., an authorized dealer of GG Micro Ltd., is located and registered under GST
in Lucknow, Uttar Pradesh. It hassold following items to Mr. Rakesh (a consumer):
Product Amount (`)
Refrigerator (500 litres) taxable @ 18% 40,000

Stabilizer for refrigerator taxable @ 12% 5,000

LED television (42 inches) taxable @ 12% 30,000
Split air conditioner (2 Tons) taxable @ 28% 35,000
Stabilizer for air conditioner taxable @12%. 5,000
Total value 1,15,000

Jolly Electronics (P) Ltd. has given a single invoice indicating price of each item separately to
Mr. Rakesh. Mr. Rakesh has given a single cheque of ` 1,00,000 for all the items as a composite
discounted price. State the type of supply and the tax rate applicable on the same.
a. Composite supply; highest tax rate applicable to split airconditioner, i.e. 28%
b. Mixed supply; highest tax rate applicable to split airconditioner, i.e. 28%
c. Supply other than composite and mixed supply; highest tax rate applicable to split air
conditioner, i.e., 28%
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 d. Supply other than composite and mixed supply; respective taxrate applicable to each item
Ans: (b)
29. Which of the following transactions does not qualify as supply underGST law?
a. Disposal of car without consideration and the supplier has not claimed input tax credit
on such car.
b. A principal makes supplies to his agent who is also registered under GST and is situated
within the same State and the invoice for further supply is issued by the agent in his
name.
c. Head Office makes a supply of services to its own branch outside the State.
d. A person imports services without consideration for the purposes of his business from
his elder son living outside India.
Ans: (a)

30. Palliwal Associates, a firm of Chartered Accountants registered under GST, located in Jaipur,
Rajasthan is providing professional consultancy services to its various clients.
It has taken consultancy services for its Jaipur business from another establishment of its firm
located in UK. However, no consideration was charged for the same.
Such services would have been taxable @ 18% (CGST @ 9%, SGST @ 9% and IGST @ 18%), had
the same been received from a local firm. Further, Palliwal Associates would have paid ` 4.00
lakh, had it not received the said services from its UK establishment.
Determine the GST liability of Palliwal Associates.
(a) IGST - ` 72,000
(b) CGST - ` 36,000 & SGST - ` 36,000, since place of supply is inIndia
(c) Nil, since no foreign exchange was paid.
(d) Nil, since such services are exempt.
Ans: (a)

31. Which of the following is not a supply under the CGST Act, 2017?
a. Goods supplied free of cost by X & Sons to its agent for further supply to customer at `
5,000 for which invoice will be issuedby the agent in his own name.
b. Importation of accounting services (for business purposes) free of cost from a
dependent father residing in US.
c. An expensive watch gifted to an employee for ` 50,000. No other gifts provided to
such employee during the entire financial year.
d. A machinery disposed off free of cost on which input tax credithas been availed.
Ans: (c)

32. Mr. Allauddin, a stationery retailer, located and registered under GST in Allahabad, has received
order for supply of goods worth ` 2,00,000 on 12th November from another local registered dealer,
Mr. Jallauddin.
Goods were supplied under the cover of a tax invoice. Mr. Allauddin, incurred the following
additional expenses before the goods were delivered to Mr. Jallauddin:
Packing charges - ` 3,000
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 Freight & Cartage - ` 2,500
Handling Charges - ` 1,500
Mr. Jallauddin made full payment (including the additional amounts charged by Mr. Allauddin)
on delivery of the goods for which he was allowed instant cash discount of ` 2,000.
The applicable rates of tax on the goods supplied are: IGST @ 18%, CGST @ 9% and SGST @ 9%
and the amounts given above are exclusive of GST.
Mr. Allauddin paid CGST of ` 18,000 and SGST of ` 18,000. As a tax consultant, determine the
further tax liability of Mr. Allauddin.
(a) CGST - ` 630 and SGST - ` 630
(b) CGST - ` 450 and SGST - ` 450
(c) CGST - ` 18,630 and SGST - ` 18,630
(d) CGST - ` 18,450 and SGST - ` 18,450
Ans: (a)

33. Which of the following statements is false?

a. ITC on works contracts services availed by a software company for construction of its
office, is blocked.
b. ITC on works contract services availed by a manufacturing company for construction of
pipelines to be laid outside its factory, is blocked.
c. ITC on goods and/or services used by an automobile company for construction of a
foundation on which a machinery (to be used in the production process) is to be
mounted permanently,is allowed.
d. ITC on works contract services availed by a consulting firm for repair of its office building
is blocked provided the company has booked such expenditure in profit and loss
account.
Ans: (d)
34. Under which of the following situations, input tax credit will beavailable under GST law?
a. Cars purchased by a manufacturing company for official use ofits employees.
b. Aircraft purchased by a manufacturing company for official useof its CEO.
c. General insurance taken on a car used by employees of a manufacturing company for
official purposes.
d. Maintenance & repair services availed by a company for a truck used for transporting its
finished goods.
Ans: (d)
35. Mr. Chamcham, registered under GST in Delhi, is a domestic trader as also an exporter of
whole-sale goods. His annual turnover and inputtax details are as follows:
Turnover Tax paid on inputs
` `
Taxable goods 90,00,000 9,00,000
Exempt goods 10,00,000 1,00,000
Exported goods 15,00,000 2,00,000
No GST is payable on exempt and exported goods. Mr. Chamcham seeks your expert help in
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 calculating the amount of ITC which he is eligible to claim under GST law. ITC admissible, in
given case, is:
(a) ` 12,00,000
(b) ` 11,00,000
(c) ` 10,00,000
(d) ` 9,00,000
Ans: (b)

36. Which types of duties subsumed into GST to be levied by Centre or States.
(a) Stamp Duty (b) Duties of Excise on medical and toilet
preparation
(c) Property Tax (d) Basic Custom Duty
Answer (b)
37. The term ‘casual taxable person’ includes
a) A person occasionally supplying goods or b) A person occasionally supplying goods or
services or both in a State or a Union services or both in a State or a Union territory
where he has fixed place of business
territory where he has no fixed place of
business.
c) Both (a) and (b) d) None of the above
Answer (a)

38. Mr. X of Delhi is participating in Hitex Furniture Expo in Haryana where he has no fixed place of
business and exhibiting his products. During the expo, the said products will be sold to the people
attending and intending to purchase such products. In such scenario, Mr. X shall obtain which of the
followingregistration under the CGST Act, 2017:
a) Non–resident taxable person registration b) Casual taxable person registration
c) Regular taxpayer registration d) No registration under GST required.
Answer - (b)

39. An exempt supply includes-

a) Supply of goods or services or both which attracts Nil rate of tax b) Non- taxable supply
c) Supply of goods or services or both which are wholly exempt from d) All of the above
tax under Section 11 of the CGST Act or under Section 6 of IGST
Act
Ans. (d)

40. Aggregate turnover does not include-

a) Inward supplies on which tax is payable b) Exempt supplies
on reverse charge basis
c) Export of goods or services or both d) Inter-State supplies of persons having the
same PAN number
Answer- (a)

41. ABC ltd. has provided following information for the month of Sep, 2018:
(a) Intra-State outward supply ` 8,00,000/- (b) Inter-State exempt outward supply
`5,00,000/-
(c) Turnover of exported goods ` 10,00,000/- (d) Payment made to GTA ` 80,000/-
Calculate the aggregate turnover of ABC Ltd.
(a) Rs. 8,00,000/- (b) Rs. 23,80,000/-
(c) Rs. 23,00,000/- (d) Rs. 18,00,000/-
Answer: (c)
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 42. The definition of goods under section 2(52) of the CGST Act does not include-
a) Grass b) Money and securities
c) Actionable Claims d) Growing crops
Answer- (b)

43. GST on petrol can be levied by government from the date-

(a) on which President recommends (b) on which Finance Minister recommends
(c) on which constitutional amendment is (d) on which GST council recommends
passed
Answer- (d)

44. What would be the tax rate applicable in case of mixed supply?
a) Tax rate as applicable on supply attracting the b) Tax rate as applicable on supply
lowest rate of tax attracting the highest rate of tax
c) Tax @ 28% d) None of the above
Answer- (b)

45. Which of the following persons can opt for composition scheme?
a) Person making any supply of b) Person making any inter-State outward
goods which are not leviable supplies of goods and services(except
to tax under this Act restaurant services);
c) Person effecting supply of d) Person providing restaurant services
goods through an e- commerce
operator liable to collect tax at
source
Answer (d)

46. What is the threshold limit of turnover in the preceding financial year for opting to pay tax
undercomposition scheme for States other than special category States ?
a) ` 20 lacs b) ` 10 lacs
c) ` 50 lacs d) ` 1.5 crore
Answer (d)
47. What is the threshold limit of turnover in the preceding financial year for opting to pay tax
undercomposition scheme for special category states?
a) ` 25 lacs b) ` 50 lacs
c) ` 75 lacs d) ` 1 crore
Ans. (c)
48. What is the rate applicable under CGST to a registered person being a manufacturer opting to pay
taxesunder composition scheme?
a) 2.5% b) 1%
c) 0.5% (each - CGST / SGST) d) No composition for manufacturer
Ans. (c)

49. What is the rate applicable under CGST to a registered person being a hotelier (providing restaurant
andaccommodation 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
Ans. (d)

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50. Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST. Determine
therate 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
Ans. (a)

51. Can composition scheme be availed if the registered person effects inter-State supplies?
a) Yes b) No
c) Yes, subject to prior approval d) Yes, subject to prior approval of the
of the Central Government concerned State Government
Answer: (b)

52. Can a registered person under composition scheme claim input tax credit?
a) Yes b) No
c) Input tax credit on inward d) Input tax credit on inward supply of
supply of goods only can be services only can be claimed
claimed
Ans. (b)

53. 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 d) Yes, only on such goods as may be
the invoice issued by him notified by the Central Government
Answer (b)
54. 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)

55. A dealer ‘X’ has two offices in Delhi. In order to determine whether ‘X’ is eligible to avail benefit of the
composition scheme, turnover of both the offices would be taken into account and if the same does not
exceed 150 lakh, X can opt to avail the composition levy scheme
a) True b) False
c) May be d) None
Answer- A

56. A dealer ‘X’ has two offices one in Maharashtra and other in Delhi. In order to determine whether ‘X’ is
eligible to avail benefit of the composition scheme, turnover of office of each state would be taken
separately into account and if the same does not exceed 150 lakh, X can opt to avail the composition
levy scheme
a) True b) False
c) May be d) None
Answer- B

57. A dealer ‘X’ has two offices one in Arunachal Pradesh and other in Delhi. In order to determine whether
‘X’ is eligible to avail benefit of the composition scheme, turnover of office of each state would be taken
separately into account and if the same does not exceed 75 lakh and 150 lakh respectively, X can opt to
avail the composition levy scheme
a) True b) False
c) May be d) None
Answer- A
58. A dealer ‘X’ has two offices one in Arunachal Pradesh and other in Delhi. In order to determine whether
‘X’ is eligible to avail benefit of the composition scheme, turnover of office of each state would be taken
11
 separately into account and if the same does not exceed 75 lakh and 150 lakh respectively, X can opt to
avail the composition levy scheme
e) True f) False
g) May be h) None
Answer- A

59. A dealer ‘X’ has two offices in Delhi and is eligible for composition levy. If ‘X’ opts for the composition
scheme, both the offices would pay taxes under composition scheme
a) True b) False
c) May be d) None
Answer- A

60. Which of the following service is notified by Government for ECO

a) services by way of transportation of b) services by way of providing accommodation in
passengers by a radio-taxi, motor hotels, inns, guest houses, clubs, campsites or other
cab, maxi cab and motor cycle
commercial places meant for residential or lodging
purposes, except where the person supplying such
service through electronic commerce operator is
liable for registration under section 22(1) of the
CGST
c) services by way of house-keeping, d) All of these
such as plumbing, carpentering
etc., except where the person
supplying such service through
electronic commerce operator is
liable for registration under
subsection 22(1) of the CGST Act

Answer- D

61. In which of the following cases ECO shall pay tax only when supplier is unregistered
a) services by way of house-keeping, such as b) services by way of providing accommodation
plumbing, carpentering etc. in hotels, inns, guest houses, clubs, campsites
or other commercial places meant for
residential or lodging purposes
c) Both d) None
Answer- C

62. A hotel owner provided accommodation in Haryana, through an electronic commerce operator – Cool
Trips. The hotel owner is not liable to get registered as per the provisions of section 22(1) of the CGST
Act. Who is the person liable to pay GST in this case?
a) Hotel Owner b) ECO
c) Customer d) Both by Hotel owner & ECO
Answer- B

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

a) Supplier of goods located in Delhi and place b) Supplier of goods located in Delhi
of supply of goods is to an SEZ located in Delhi and place of supply of goods in Jaipur
c) Supplier of goods located in Delhi and place d) All the above
of supply of goods is to an SEZ located in Chandigarh
Ans. (d)

64. Which of the following is an intrastate supply?

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 a) Supplier of goods located in Delhi and place b) Supplier of goods located in Delhi
of supply of goods SEZ located in Delhi and place of supply of goods in Jaipur
c) Supplier of goods located in Delhi and place d) All the above
of supply of goods in Delhi
Ans. (c)

65. IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied
andcollected
a) only at the time of importation b) at every stage of sale
c) Provisions is different from transaction to d) None
transaction
Answer- A

66. Where a supply is made from a place of business for which registration has been obtained, Location
ofsupplier is
a) Principal place of business entity b) Such place of Business
c) Any place of business of such entity d) the location of such fixed establishment
Answer- B

67. Where a supply is made from a place other than the place of business for which registration has been
obtained
a) Principal place of business entity b) Such place of Business
c) Any place of business of such entity d) the location of such fixed establishment
Answer- D

68. where a supply is made from more than one establishment, whether the place of business or
fixedestablishment
a) Place from where major services are b) Place from where goods are delivered
performed
c) the location of the establishment most d) None
directly concerned with the provision of the
supply
Answer- C
69. What is the nature of supply, if the supplier of service is located in Mumbai and the recipient of service
being an SEZ unit is in Nagpur?
a) Intra State b) Inter State
c) Export d) Import
Answer- B

70. State the taxability of satellite launch services provided to both international and domestic customers
by ANTRIX Corporation Limited (“ANTRIX”) which is a wholly owned Government of India Company
under the administrative control of Department of Space (DOS).
a) Taxable b) Not taxable
c) Exempt d) None
Answer- A

71. Which of the following transaction is inter-state supply of goods involving movement of goods?
a) Location of supplier is in Bangalore and b) Location of supplier and place of
location of recipient is in Mumbai and goods are supply is Mumbai
shipped to Kolkata
c) Location of supplier and place of supply is d) None of the above
Bangalore
Ans. (a)

72. Supply of goods in the course of import into the territory of India is
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 a) Intrastate supply b) Inter-State supply
c) Export d) Neither Export nor Import
Ans. (b)

73. Which of the following supply involving movement of goods is an intra-State supply?
a) Location of supplier in Kerala b) Location of supplier in Karnataka and
and place of supply in Tamil Nadu place of supply in Karnataka
c) Location of supplier in Kerala d) None of the above
and place of supply on Andhra Pradesh
Ans. (b)

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

a) Where the movement of elevator commences b) Where the delivery of elevator is
from the supplier’s place taken
c) Where the installation of elevator is made d) Where address of the recipient is
mentioned in the invoice
Ans. (c)

75. Place of supply of food taken on board at Delhi for an aircraft departing from Delhi to Bangalore via
Hyderabad is
a) Address of the aircraft carrier mentioned on the invoice b) Delhi
of the supplier
c) Jaipur d) Hyderabad
Ans. (b)
76. What is location of supply in case of importation of goods?
a) Customs port where the goods are cleared b) Location of the importer
c) Place where the goods are delivered after d) Owner of the goods
clearance from customs port
Ans. (b)

77. 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?
a) Delhi b) Chandigarh
c) Kolkata d) None of the above
Ans. (c)

78. What is the place of supply of service where a restaurant provides catering service at the premise of the
customer?
a) Address of the restaurant from b) Customer premise where catering service
where the food is supplied is provided
Ans (b)

79. 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:
a) Chennai b) Pune
c) Darjeeling
Ans. (a)

80. Place of supply of service for DTH by ABC Pvt. Ltd. located in Mumbai to customer in Patna is:
a) Mumbai b) Patna
Ans. (b)

81. Mr. X of Hyderabad not having bank account takes a demand draft in Kolkata from ABC Bank for his
visapurpose. The place of supply is
a) Hyderabad b) Kolkata
Ans. (b)
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82. The provider of AMC service outside India has entered into an agreement for an aircraft company PQR
located in India AMC. The service provider provides repair service to the aircraft when it was in India.
Theplace of service in this case is:
a) Outside India b) India
Ans. (b)

83. 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
maintenanceY INC shall be required to perform regular maintenance from USA using Internet, then the
place of supply is
a) Bangalore b) Mumbai
c) USA d)
Ans. (b)
84. The Tourist can claim refund of:
a) CGST and SGST/UTGST on supply of Goods b) IGST on supply of goods
andservices
c) Tax paid on the supply of scotch to be taken outof d) None of the above
India
Ans. (b)

85. Tourist means a person:

a) Not normally resident in India b) Stays for not more than 6 months in India
c) Stays for legitimate and Non- d) All the above
Immigrant purpose
Ans. (d)

86. Zero rated supply includes:

Export of goods and services Supply of goods and services to a SEZ developer or SEZ
Unit
Supply of goods and services Both (a) and (b)
by a SEZ developer or SEZ
Unit

Ans. (d)

87. Is the SEZ developer or SEZ unit receiving zero rated supply eligible to claim refund of IGST paid by
theregistered taxable person on such supply?
Yes No
Partially yes
Ans. (b)

88. A registered taxable person is eligible to claim refund in respect of export of goods and services in the
following cases:
a) Under bond, without payment of IGST and b) On payment of IGST and claim refund of
claim refund of unutilized input tax credit. IGST paid on such goods and services
c) None of the above d) Both (a) and (b)
Ans. (d)

89. The supply of goods to SEZ unit is treated as in the hands of the supplier:
a) Exempt Supply – Reversal of credit b) Deemed Taxable Supply – No reversal of credit
c) Zero Rated supply d) Non-Taxable Supply – Outside the Scope of GST
Ans. (c)

90. Out of IGST paid to the Central Government, which of the following must be apportioned based on
taxrate equivalent to the CGST on similar intra-state supply?

15
 a) Interstate supply of goods and b) Interstate supply of goods and services to a taxable
services to an unregistered person. person paying tax under sec.10 of the CGST Act, 2017.
c) Interstate supply of good and d) All of the above
services to taxable person not eligible
for input tax credit.
Ans. (d)
91. Can IGST amount apportioned to a State, if subsequently found refundable to any person and refunded
to such person, be reduced from the amount apportioned to such State?
a) Yes b) No
c) Partially d) None of the above
Ans. (a)

92. Out of the IGST paid to the Central Government in respect of import of goods or services, if the
registered taxable person does not avail the said credit within the specified period and so remains in the
IGST account, what is the treatment?
a) Refund it back to the taxable person. b) Can be claimed after the
expiry of the specified period
c) Apportion to the Central Government based on d) None of the above.
rate equivalent to CGST on similar intra-State supply
andApportion to the state where such supply takes place.
Ans. (c)

93. The provisions of apportionment of tax also apply to

(a) Apportionment of interest (b) Apportionment of penalty
(c) Compounding amount realized in (d) All of the above
connection with tax so apportioned
Ans. (d)

94. The registered person has paid IGST by treating an intra-State supply as inter-State supply. The officer
has levied CGST and SGST as the same is intra-State supply. What is the remedy?
(a) Pay CGST and SGST along with interest (b) Pay CGST and SGST and Claim refund of IGST
(c) Forgo IGST paid (d) None of the above
Ans. (b)

95. Any goods supplied by any person who is located in a non-taxable territory to any person other than
non-taxable online recipient. Whether GST is applicable.
a) Yes b) No
c) Further data is required d) None
Answer- A

96. Any goods supplied by any person who is located in a non-taxable territory to any person other than
non-taxable online recipient. Who is liable to pay GST under this transaction?
a) Recipient b) Supplier
c) Both d) None
Answer- A

97. On supply of OIDAR Services by a person located in taxable territory to a non-taxable online recipient.
Who is liable to pay GST in this case?
a) Recipient b) Supplier
c) Both d) None
Answer- B
98. When import of services will be treated as supply even if they are received for without consideration
a) Related person b) Distinct person
c) Unrelated person d) (a) or (b)
Answer- D
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99. Raman of Delhi has supplied services to John of USA. Whether it is export of service.
a) Yes b) No
c) May be d) None
Answer- C

100. If location of supplier in Territorial water, then what will considered as location of supplier
a) Actual location (territorial Water) b) Principal Establishment of Supplier
c) Any establishment of supplier of his choice d) coastal State or Union Territory where the
nearest point of the appropriate baseline
Answer- D

101. If place of supply in Territorial water, then what will considered as Place of supply
a) Actual location (territorial Water) b) Principal Establishment of Supplier
c) Any establishment of supplier of his choice d) coastal State or Union Territory where the
nearest point of the appropriate baseline
Answer – D

102. Integrated Tax will be collected on services imported into on the value as determined under
theprovisions of ………..
a) IGST Act b) CGST / SGST Act
c) Customs Act d) Customs Tariff Act
Answer- B

103. What is time of supply of goods, in case of forward charge?

a) Date of issue of invoice b) Due date of issue of invoice
c) Due date of issue of invoice d) Earlier of (a) & (b)
Ans. (d)

104. What is time of supply of goods, in case of supplier opting for composition levy under Section 10 of the
CGST Act, 2017?
a) Date of issue of invoice b) Date of receipt of consideration by the
supplier
c) Latter of (a) & (b) d) Earlier of (a) & (b)
Ans. (d)

105. What is time of supply of goods liable to tax under reverse charge mechanism?
a) Date of receipt of goods b) Date on which the payment is made
c) Date immediately following 30 d) Earlier of (a) or (b) or (c)
days from the date of issue of
invoice by the supplier
Ans. (d)

106. What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?
a) Date of issue of voucher b) Date of redemption of voucher
c) Earlier of (a) & (b) d) (a) & (b) whichever is later
Ans. (a)

107. What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?
a) Date of issue of voucher b) Date of redemption of voucher
c) Earlier of (a) & (b) d) (a) & (b) whichever is later
Ans. (b)

108. What is date of receipt of payment?

17
 a) Date of entry in the books b) Date of payment credited into bank
account
c) Earlier of (a) and (b) d) Date of filing of return
Ans. (c)

109. Mr. A, who has opted for composition levy, supplies goods worth ` 24,300 to Mr. B and issues an
invoice dated 25.09.2018 for ` 24,300. and Mr. B pays ` 25,000 on 1.10.2018 against such supply of
goods. The excess ` 700 (being less than ` 1,000) is adjusted in the next invoice for supply of goods
issued on 5.01.2018. Identify the time of supply and value of supply:
a) ` 25,000 – 1.10.2018 b) For ` 24,300 – 25.09.2018 and for ` 700 – 1.10.2018
c) For ` 24,300 – 25.09.2018 and d) (b) or (c) at the option of supplier, who has opted
for for composition levy
` 700 – 5.10.2018.
Ans. (d)
110. What is the time of supply of service if the invoice is issued within 30 days from the date of provision
ofservice?
a) Date of issue of invoice b) Date on which the supplier receives payment
c) Date of provision of service d) Earlier of (a) & (b)
Ans. (d)

111. What is the time of supply of service for the supply of taxable services up to `1000 in excess of
theamount indicated in the taxable invoice?
a) At the option of the supplier – b) Date of issue of invoice
Invoice date or Date of receipt
of consideration
c) Date of receipt of consideration. d) Date of entry in books of account
Ans. (a)

112. How is the date of receipt of consideration by the supplier determined?

a) Date on which the receipt of payment b) Date on which the receipt of payment is
is entered in the books of account credited in the bank account
c) Earlier of (a) & (b) d) (a) & (b) whichever is later
Ans. (c)

113.What is the time of supply of service in case of reverse charge mechanism?

a) Date of payment as entered in the b) Date immediately following 60 days from
books of account of the recipient the date of issue of invoice
c) Date of invoice d) Earlier of (a) & (b)
Ans. (d)

114. What is the time of supply of service in case an associated enterprise receives services from the
serviceprovider located outside India?
a) Date of entry in the books of account of b) Date of payment
associated enterprise(recipient)
c) Earlier of (a) & (b) d) Date of entry in the books of the
supplier of service
Ans. (c)

115.What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?
a) Date of issue of voucher b) Date of redemption of voucher
c) Earlier of (a) & (b) d) (a) & (b) whichever is later
Ans. (a)

116. What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?
e) Date of issue of voucher f) Date of redemption of voucher

18
 g) Earlier of (a) & (b) h) (a) & (b) whichever is later
Ans. (b)
117.Value of services rendered is Rs. 1,00,000/. Date of issue of invoice is 5th October 2018. Advance
Received is Rs. 25,000/- on 20th September 2018. Balance amount received on 7th October 2018.
Whatis the time of supply for Rs. 1,00,000/-
a) 5th October 2018 for Rs. 1,00,000/- b) 20th September 2018 for Rs. 1,00,000/-
c) 20th September 2018- Rs. 25,000/- and 5th d) 20th September 2018- Rs. 25,000/- and
October 2018 for Rs. 75,000/- 7th October 2018 for Rs. 75,000/-
Ans. (c)

118. There was increase in tax rate from 20% to 24% w.e.f.1.09.2018.Which of the following rate is
applicable when services are provided after change in rate of tax in September 2018, but invoice issued
and payment received, both in August, 2018:
a) 20% as it is lower of the two b) 24% as it is higher of the two
c) 20% as invoice and payment were d) 24% as the supply was completedafter
received prior to rate change rate change
Ans. (c)

119. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2018. Which of the following rate is
applicablewhen services provided, and invoice raised after change in rate of tax in September,2018, but
payment received in August 2018:
a) 20% as it is lower of the two b) 24% as it is higher of the two
c) 20% as payment (being one of the d) 24% as invoice was issued in the period during
factors) was prior to rate change which supply is completed
Ans. (d)

120. There was increase in tax rate from 20% to 24% w.e.f. 1.9.2018. 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,2018 but payment received, and goods supplied in August,2018:
a) 20% as it is lower of the two b) 24% as it is higher of the two
c) 20% as payment was received in the period d) 24% as invoice being one of the factors
during which the supply was effected was issued after rate change
Ans. (c)

121. There was increase in tax rate from 20% to 24% w.e.f.1.9.2018.Which of the following rate is
applicable if the supplier has not opted for composition levy say Sita Manufacturers, Delhi supplies
goods to Aakash Electronics, Dehradun. Further, Goods were removed from its factory in Delhi on
31.08.2018; invoice is issued on 31.08.2018 and payment is received on 4.09.2018.
a) 20% as it is lower of the two b) 24% as it is higher of the two
c) 20% as date of invoice and dispatch ofgoods d) 24% as both, payment and completion of
from factory, has happened before change supply, has happened after change of rate
of rate
Ans. (c)

122. There was decrease in tax rate from 24% to 20% w.e.f. 1.09.2018.Which of the following rate is
applicable if the supplier has not opted for composition levy say Sita Manufacturers, Delhi
supplies goods to Aakash Electronics, Dehradun. Further, Goods were removed from its factory in
Delhi on 31.08.2018; delivered at Aakash Electronics, Dehradun on 2.02.2018; invoice is issued on
31.08.2018 and payment is received on 4.09.2018.
a) 20% as it is lower of the two b) 24% as date of invoice and dispatch of goods from
factory, has happened before change of rate
c) 20% as both, payment and
completion of supply, has happened
after change of rate
Ans. (b) 24% as date of invoice and dispatch of goods from factory, has happened before change of rate

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123. The value of supply of goods and services shall be the
a) Transaction value b) MRP
c) Market Value d) None of above
Ans. (a)

124. The value of supply should include

a) Any non-GST taxes, duties, cesses, b) Interest, late fee or penalty for delayed payment of
fees charged by supplier separately any consideration for any supply of goods or services
c) Subsidies directly linked to the d) All of the above
price except subsidies provided by
the Central and State Government
Ans. (d)

125. When can the transaction value be rejected for computation of value of supply
a) When the buyer and seller are related b) When the buyer and seller are related or price is
and price is not the sole consideration not the sole consideration
c) It can never be rejected d) When the goods are sold at very low margins
Ans. (b)

126. What deductions are allowed from the transaction value

a) Discounts offered to customers, b) Packing Charges, subject to conditions
subject to conditions
c) Amount paid by customer on d) Freight charges incurred by the supplier for CIF terms of
behalf of the supplier, subject to supply, subject to conditions
conditions
Ans. (a)

127. If the goods are supplied to related persons then how should the taxable person ascertain the value
ofsupplies?
a) Seek the help of the GST officer b) Use the arm’s length price as required
under the Income Tax law
c) Identify the prices at which goods d) As per Rule 28 of the CGST Rules
are sold by the unrelated person to
his customer
Ans. (d)

128. ........................ Rule 30 of the CGST Rules inter alia provides value of supply of goods or services or
both based on costshall be % of cost of production or manufacture or the cost of acquisition of
such goods or the
cost of provision of such services
a) 100 b) 10
c) 110 d) 120
Ans. (c) 110

129. Whether credit on inputs should be availed based on receipt of documents or receipt of goods
a) Receipt of goods b) Receipt of Documents
c) Both d) Either receipt of documents or Receipt of
goods
Ans. (c)

130. In case supplier has deposited the taxes but the receiver has not received the documents, is
receiverentitled to avail credit?
a) Yes, it will be auto populated in b) No as one of the conditions of 16(2) is
recipient monthly returns not fulfilled

20
 c) Yes, if the receiver can prove later that d) None of the above
documents are received subsequently
Ans. (b)

131.Input tax credit on capital goods and Inputs can be availed in one instalment or in multiple instalments?
a) In thirty-six installments b) In twelve installments
c) In one installment d) In six installments

132. The time limit to pay the value of supply with taxes to avail the input tax credit?
a) Three months b) Six months
c) One hundred and eighty days d) Till the date of filing of Annual Return
Ans. (c)

133. What is the time limit for taking input tax credit by a registered taxable person?
a) No time limit b) 1 year from the date of invoice
c) Due date of furnishing of the return under d) Due date of furnishing of the return under section 39
section 39 for the month of September for the month of September following the end of
following the end of financial year to financial year to which such invoice or invoice
which such invoice or invoice relating to relating to such debit note pertains or furnishing of
such debit note pertains the relevant annual return, whichever is earlier.

Ans. (d)

134. Whether depreciation on tax component of capital goods and Plant and Machinery and whether
inputtax credit is Permissible?
a) Yes b) No
c) Input tax credit is eligible if depreciation d) None of the above
on tax component is not availed
Ans. (c)

135. What is the maximum time limit to claim the Input tax credit?
a) Till the date of filing annual b) Due date of September month which is following the financial
return year
c) Earliest of (a) or (b) d) Later of (a) or (b)
136. The value of supply shall not include any discount which is given

a) before or at the time of supply , if such b) after the supply , if such discount is established
discount has been duly recorded in the invoice in terms of an agreement entered into at or
issued in respect of such supply before the time of such supply
c) after the supply , if credit note link to tx invoice d) both a & c
is issued by supplier to recipient & recipient has
reversed ITC relating to discount component
Answer- d
137. When GST is payable, if voucher is for specific goods/ services (supply is identifiable)

a)at the time of issue of voucher b)at the time of redemption of voucher

Answer- a

138. When GST is payable, if voucher is for different goods/ services with multiple rates

a)at the time of issue of voucher b)at the time of redemption of voucher

Answer- b

139.
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Which of the following services are covered under Reverse Charge Mechanism of CGST Act,
2017?
i. Legal Consultancy
ii.Goods Transport Agency
iii. Labour Supply
iv. Rent-a-Cab

(a) i & iii

(b) i & iv
(c) i,ii,& iii
(d) All the above

Ans. (c)

140. In case of renting of land, inside an Industrial estate, by State Government to a registered
manufacturing company, liability to pay GST is on:
(a) State Government
(b) Registered Manufacturer Company
(c) Both
(d) None of the Above

Ans. (b) Registered Manufacturing Company

141. Sitting fees received by director of XYZ Ltd., is liable for GST in the hands of the………
(a) Director
(a) XYZ Ltd
(b) Both of above
(c) None of the above

Ans. (b) XYZ Ltd.

142.Whether services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company
(NBFCs) will be covered under Reverse Charge Mechanism:
(a) Yes
(b) No

Ans. (a) Yes

143.ITC on works contract service can be availed only if

(a) Engaged in same line of business
(b) Service related to movable property
(c) Service related to immovable property
(d) All of above

Ans. (a) Engaged in same line of business

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