MCQOPTIONS
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MCQOPTIONS
This section includes 1133 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act,2017 in case supply involves movement of goods. Date of Removal of goods : 05-11-2019 Date of Invoice : 04-11-2019 Date goods made available to recipient : 06-11-2019 Date of receipt of payment : 01-10-2019 |
| A. | Date of Removal of goods : 05-11-2019 |
| B. | Date of Invoice : 04-11-2019 |
| C. | Date goods made available to recipient : 06-11-2019 |
| D. | Date of receipt of payment : 01-10-2019 |
| Answer» C. Date goods made available to recipient : 06-11-2019 | |
| 2. |
specifies the activities to be treated as supply even if made without Consideration |
| A. | Schedule I of CGST Act |
| B. | Schedule II of CGST Act |
| C. | Schedule III of CGST Act |
| D. | All of the above |
| Answer» B. Schedule II of CGST Act | |
| 3. |
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» E. | |
| 4. |
Services by a hotel, inn, guest house, club or campsite are exempted for residential / lodgingpurposes - |
| 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» C. If the actual tariff for a unit of accommodation is exactly ` 1,000 | |
| 5. |
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 |
| A. | Place where the event is actually held |
| B. | Location of the supplier of service |
| C. | Location of the recipient of service |
| D. | Any of the above |
| Answer» B. Location of the supplier of service | |
| 6. |
The functions performed by the Members of Parliament, Members of State Legislature, Membersof Panchayats, Members of Municipalities and Members of other local authorities shall be treated as . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» D. Either as a supply of goods or a supply of services | |
| 7. |
To avail input tax credit, which of the following factors is not relevant ? |
| A. | Tax invoice |
| B. | Furnishing of return by supplier |
| C. | Receipt of goods and services |
| D. | Payment by buyer for supply received |
| Answer» E. | |
| 8. |
A casual taxable person or a non-resident taxable person shall be required to apply for registrationat least days prior to the commencement of business. |
| A. | 30 |
| B. | 5 |
| C. | 15 |
| D. | 7 |
| Answer» C. 15 | |
| 9. |
What is the rate of interest in case of undue or excess claim of ITC ? |
| A. | 18% |
| B. | 24% |
| C. | 30% |
| D. | 40% |
| Answer» C. 30% | |
| 10. |
ITC can be claimed by a registered person for |
| A. | Taxable supplies for business purpose |
| B. | Taxable supplies for non-business purpose |
| C. | Exempted supplies |
| D. | Non-taxable supplies |
| Answer» B. Taxable supplies for non-business purpose | |
| 11. |
Which of the following persons are not liable for registration? |
| A. | Any person engaged exclusively in supplying services wholly exempt from tax |
| B. | Casual Taxable Person |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» B. Casual Taxable Person | |
| 12. |
Interest or late fee or penalty for delayed payment of any consideration for any supply |
| A. | Shall be excluded from the value of taxable supply |
| B. | Shall be included from the value of taxable supply |
| C. | Shall require no adjustment |
| D. | Can be included or excluded from the value of the taxable supply |
| Answer» C. Shall require no adjustment | |
| 13. |
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» D. None of the above | |
| 14. |
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» C. Yes, if the amount of tax is prominently indicated in the invoice issued by him | |
| 15. |
The Chairperson of GST Council is |
| A. | Prime Minister of India |
| B. | Finance Minister of India |
| C. | Minister of State for Finance |
| D. | None of the above |
| Answer» C. Minister of State for Finance | |
| 16. |
IGST means |
| A. | Inter-state GST |
| B. | Integrated GST |
| C. | Import GST |
| D. | International GST |
| Answer» C. Import GST | |
| 17. |
What is the maximum time limit to claim the Input tax credit? |
| A. | Till the date of filing annual return |
| B. | Due date of September month which is following the financial year |
| C. | Earliest of (a) or (b) |
| D. | Later of (a) or (b) |
| Answer» D. Later of (a) or (b) | |
| 18. |
When agriculturist supplies tobacco leaves to a factory, registered under GST, the liability to payGST is on |
| A. | tobacco leaves seller |
| B. | the buyer under reverse charge |
| C. | the agriculturist |
| D. | consumer of tobacco leaves |
| Answer» C. the agriculturist | |
| 19. |
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» 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 | |
| 20. |
If the goods are supplied to related persons then how should the taxable person ascertain thevalue of supplies? |
| A. | Seek the help of the GST officer |
| B. | Use the arm’s length price as required under the Income Tax law |
| C. | Refer the Rules which prescribed for this purpose |
| D. | None of the above |
| Answer» D. None of the above | |
| 21. |
Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement ofcredit? |
| A. | All four condition |
| B. | Any two conditions |
| C. | Conditions not specified |
| D. | None of the above |
| Answer» B. Any two conditions | |
| 22. |
In case of transport of goods by rail within India, which of the following item is an exemptedsupply ? |
| A. | Transport of postal mails and postal bag |
| B. | Transport of defence and military equipments |
| C. | Transportation of household effects |
| D. | Transport of alcoholic beverages |
| Answer» C. Transportation of household effects | |
| 23. |
If Supply of Services has ceased under a contract before the completion of supply: |
| A. | Invoice has to be issued within 30 days from the date of cessation |
| B. | Invoice has to be issued at the time of cessation to the extent of the supply effected |
| C. | Invoice has to be issued for the full value of the contract after deducting a percentage thereof as prescribed |
| D. | None of the above |
| Answer» C. Invoice has to be issued for the full value of the contract after deducting a percentage thereof as prescribed | |
| 24. |
With reference to the provisions relating to transaction value under section 15 of the CGST Act,2017, which of the following is not correct ? |
| A. | Central excise duty will not be included in transaction value for supply of tobacco. |
| B. | Municipal taxes paid by tenant will be included in transaction value for supply of renting service. |
| C. | Entertainment tax included in movie ticket will form part of transaction value |
| D. | Customer makes payment of freight which is payable by the supplier, directly to the service provider. However, supplier does not include this amount in this invoice. Such amount will be included in transaction value of the supplier. |
| Answer» B. Municipal taxes paid by tenant will be included in transaction value for supply of renting service. | |
| 25. |
Development, design, programming, customisation, adaptation, upgradation, enhancement,implementation of information technology software shall be treated as . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» C. Neither as a supply of goods nor a supply of services | |
| 26. |
The proper officer may cancel the GST registration, if any registered person other than a person paying tax under section 10 of CGST Act, 2017 has not furnished the returns for a continuous period of |
| A. | 12 month |
| B. | 9 months |
| C. | 6 months |
| D. | 3 months |
| Answer» D. 3 months | |
| 27. |
Which of the following GST model is adopted in India? |
| A. | Australian model |
| B. | Bagchi-Poddar model |
| C. | Dual model |
| D. | American model |
| Answer» D. American model | |
| 28. |
Where a business carried on by a taxable person registered under this Act is transferred toanother person as a going concern, |
| A. | Transferror’s registration shall be taken as transferee’s registration |
| B. | The transferee shall be liable to be registered w.e.f. the date of transfer |
| C. | Both transferor and transferee are required to obtain fresh registration |
| D. | None of the above |
| Answer» C. Both transferor and transferee are required to obtain fresh registration | |
| 29. |
Securities are excluded from the definition of . |
| A. | Good |
| B. | Services |
| C. | Both (a) and (b) |
| D. | Neither (a) nor (b) |
| Answer» D. Neither (a) nor (b) | |
| 30. |
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» C. For letting out any residential property irrespective of its use | |
| 31. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax undercomposition scheme for a trader in Mumbai? |
| A. | 30 lac |
| B. | 10 lacs |
| C. | 150 lacs |
| D. | 75 lacs |
| Answer» D. 75 lacs | |
| 32. |
Supply of the following is not liable to GST . |
| A. | Alcoholic liquor for industrial consumption |
| B. | Alcoholic liquor for medicinal consumption |
| C. | Alcoholic liquor for human consumption |
| D. | Alcoholic liquor for animal consumption |
| Answer» D. Alcoholic liquor for animal consumption | |
| 33. |
Services of funeral, burial, crematorium or mortuary including transportation of the deceasedshall be treated as . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» D. Either as a supply of goods or a supply of services | |
| 34. |
Indian GST model has tier rate structure. |
| A. | 3 |
| B. | 4 |
| C. | 5 |
| D. | 6 |
| Answer» C. 5 | |
| 35. |
An Unique Identity Number will be allotted to the following persons upon submitting an application: |
| A. | All the taxable persons can apply. |
| B. | Only unregistered persons can apply. |
| C. | Specialized agency of the UNO or any multilateral financial institution or consulate or embassy of foreign countries. |
| D. | No such concept under CGST/SGST Act. |
| Answer» D. No such concept under CGST/SGST Act. | |
| 36. |
Minimum Service periods required to constitute a continuous supply of services with periodicpayment |
| A. | Exceeding 6 month |
| B. | 6 months |
| C. | Exceeding 3 months |
| D. | 3 months |
| Answer» D. 3 months | |
| 37. |
A famous actress went to London and availed cosmetic or plastic surgery for her nose. WhetherGST is liable to be paid ? |
| A. | Ye |
| B. | No |
| C. | No supply at all |
| D. | None of the above |
| Answer» C. No supply at all | |
| 38. |
In IGST, I stands for |
| A. | Integrated |
| B. | International |
| C. | Inter-State |
| D. | Indian |
| Answer» B. International | |
| 39. |
Every registered taxable person shall display his certificate of registration in a prominent location at his principal and at every other place of business also GSTIN shall be displayed on the name board at the entry of such places. |
| A. | No, certificate of registration to be displayed only at a registered place of business and GSTIN need not be displayed on the name board. |
| B. | Yes, above statement is correct. |
| C. | No, GSTIN to be displayed only on the invoices. |
| D. | Above statement is correct subject to certificate of registration to be displayed only at registered place of business. |
| Answer» C. No, GSTIN to be displayed only on the invoices. | |
| 40. |
Determine the TOS in accordance with provisions of CGST Act, 2017Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 22th Dec. 2019 Date on which payment received - 12th Dec. 2019 |
| A. | 10th Nov. 2019 |
| B. | 22th Dec. 2019 |
| C. | 12th Dec. 2019 |
| D. | 10th Dec. 2019 |
| Answer» B. 22th Dec. 2019 | |
| 41. |
Lease or letting out of the building including a commercial, industrial or residential complex forbusiness or commerce, either wholly or partly shall be treated as . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» C. Neither as a supply of goods nor a supply of services | |
| 42. |
What is the time of supply of service if the invoice is issued within 30 days from the date ofprovision 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) and (b) |
| Answer» E. | |
| 43. |
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 |
| A. | supply and liable to be taxed |
| B. | supply but not liable to be taxed |
| C. | not at all supply |
| D. | none of the above |
| Answer» B. supply but not liable to be taxed | |
| 44. |
When goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance as per provisions of CGST Act, 2017, is called as |
| A. | Mixed Supply |
| B. | Uniform Supply |
| C. | Complex Supply |
| D. | Composite Supply |
| Answer» E. | |
| 45. |
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» C. Both | |
| 46. |
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» B. Yes | |
| 47. |
There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate isapplicable when services are provided after change in rate of tax in September 2019, but invoice issued and payment received, both in August, 2019 : |
| 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 received prior to rate change |
| D. | 24% as the supply was completed after rate change |
| Answer» D. 24% as the supply was completed after rate change | |
| 48. |
Which of the following persons are compulsorily required to obtain registration? |
| A. | Persons making any inter-State taxable supply |
| B. | Non-resident taxable persons making taxable supply |
| C. | Casual taxable persons making taxable supply |
| D. | All of the above |
| Answer» E. | |
| 49. |
A casual taxable person is required to obtain registration where he makes |
| A. | Taxable inter-State supply |
| B. | Taxable inter-State or intra-State supply |
| C. | Taxable inter-State or intra-State supply whose proposed value exceeds ` 20 lakhs |
| D. | In none of the above situations |
| Answer» C. Taxable inter-State or intra-State supply whose proposed value exceeds ` 20 lakhs | |
| 50. |
Where will be the place of supply of goods supplied in a train which is heading towards Delhifrom Chennai, if the goods are taken on board at Coimbatore? |
| A. | Delhi |
| B. | Chennai |
| C. | Coimbatore |
| D. | None of the above |
| Answer» D. None of the above | |