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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.
| 151. |
What is the time of supply of service for the supply of taxable services up to ` 1000 in excess ofthe amount indicated in the taxable invoice? |
| A. | At the option of the supplier – Invoice date or Date of receipt of consideration |
| B. | Date of issue of invoice |
| C. | Date of receipt of consideration |
| D. | Date of entry in books of account |
| Answer» B. Date of issue of invoice | |
| 152. |
Decision of the GST Council will be adopted when it has the support of |
| A. | one-third majority |
| B. | two-third majority |
| C. | three-fourth majority |
| D. | simple majority |
| Answer» D. simple majority | |
| 153. |
Which of the following statements are correct? (i) Revocation of cancellation of registration under CGST/SGST Act shall be deemed to be a revocation of cancellation of registration under SGST/CGST Act. (ii) Cancellation of registration under CGST/SGST Act shall be deemed to be a cancellation of registration under SGST/CGST Act. (iii) Revocation of cancellation of registration under CGST/SGST Act shall not be deemed to be a revocation of cancellation of registration under SGST/CGST Act. (iv)Cancellation of registration under CGST/SGST Act shall not be deemed to be a cancellation of registration under SGST/CGST Act. |
| A. | (i) and (ii) |
| B. | (i) and (iv) |
| C. | (ii) and (iii) |
| D. | (iii) and (iv) |
| Answer» B. (i) and (iv) | |
| 154. |
Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a by the person. |
| 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» B. Supply of services | |
| 155. |
Which of the following agricultural activity is exempted from GST ? |
| A. | Cultivation |
| B. | Supply of farm labour |
| C. | Renting of agro machinery |
| D. | All of the above |
| Answer» E. | |
| 156. |
Export of service does not include: |
| A. | the supplier of service located outside India |
| B. | the recipient of service located outside India |
| C. | the place of supply of service is outside India |
| D. | the supplier of service is located in India |
| Answer» B. the recipient of service located outside India | |
| 157. |
Sasta Bazar offers a free bucket with detergent purchased. It is a |
| A. | Composite supply |
| B. | Mixed supply |
| C. | Principal supply |
| D. | None of the above |
| Answer» C. Principal supply | |
| 158. |
Which section deals with the TCS provisions in GST ? |
| A. | Section 51 |
| B. | Section 52 |
| C. | Section 53 |
| D. | Section 54 |
| Answer» C. Section 53 | |
| 159. |
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 |
| A. | 2,50,000 |
| B. | 3,00,000 |
| C. | 5,50,000 |
| D. | None of the above |
| Answer» C. 5,50,000 | |
| 160. |
The default rule of place of supply of services made to any person other than a registeredperson if address on record doesn’t exist shall be the |
| A. | Location where service is rendered |
| B. | Location of the service provider |
| C. | Location of the recipient |
| D. | Any of the above |
| Answer» C. Location of the recipient | |
| 161. |
What will happen if the turnover of a registered person opting to pay taxes under compositionscheme during the year 2019-20 crosses threshold limit? |
| A. | He can continue under composition scheme till the end of the financial year |
| B. | He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year 2019-20 |
| C. | He will cease to remain under the composition scheme with immediate effect |
| D. | He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit |
| Answer» D. He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit | |
| 162. |
Which of the following activity is outside the scope of supply and not taxable under GST? |
| A. | Services by an employee to the employer in the course of or in relation to his employment |
| B. | Services of funeral |
| C. | Actionable claims, other than lottery, betting and gambling. |
| D. | All of the above |
| Answer» E. | |
| 163. |
The date on which the supplier receives the payment shall be |
| A. | the date on which the payment is entered in his books of account |
| B. | the date on which the payment is credited to his bank account |
| C. | the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is earlier |
| D. | the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is later |
| Answer» D. the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is later | |
| 164. |
Tax paid on goods and services under Act is allowable both under SGST Act and CGSTAct? |
| A. | IGST |
| B. | CGST |
| C. | SGST |
| D. | VAT |
| Answer» B. CGST | |
| 165. |
What is the rate of tax for tax collected at source ? |
| A. | 0.5% each CGST and SGST |
| B. | 2% of IGST |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» B. 2% of IGST | |
| 166. |
Activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall treated as . |
| A. | Supply of good |
| 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 | |
| 167. |
In case of Compulsory registration, input tax credit can be availed on |
| 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 |
| B. | stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act |
| C. | stocks held on the day immediately preceding the date of application of registration under the provisions of this Act |
| D. | None of the above |
| Answer» B. stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act | |
| 168. |
Which of the following is - the supply in which possession of the goods are transferred but the title on the same will be transferred at the future date? |
| A. | Rent a car |
| B. | Hire Purchase |
| C. | Normal sale of goods |
| D. | None of the above |
| Answer» C. Normal sale of goods | |
| 169. |
The compensation to states for loss of revenue on account of implementation of GST is for years. |
| A. | 2 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» C. 8 | |
| 170. |
A person having business verticals in a State obtain a separate registration foreach business vertical. |
| A. | Single, shall |
| B. | Multiple, shall |
| C. | Multiple, may |
| D. | Single, May |
| Answer» D. Single, May | |
| 171. |
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 |
| A. | 28,080 and within 6 months from the date of issue of tax invoice |
| B. | 7,020 and within next quarter from the date of issue of tax invoice |
| C. | 21,600 and within 1 year from the date of issue of tax invoice |
| D. | None of the above |
| Answer» D. None of the above | |
| 172. |
From the following information determine the TOS of goods where goods are taxed on reversecharge basis Date of issue of invoice by the supplier - 30th Nov. 2019 Date of receipt of goods - 30th Nov. 2019 Date of payment by the recipient - 10th Dec. 2019 Entry of receipt of services in the recipient’s BOA - 12th Dec. 2019 |
| A. | 30th Nov. 2019 |
| B. | 10th Dec. 2019 |
| C. | 12th Dec. 2019 |
| D. | 30th Dec. 2019 |
| Answer» B. 10th Dec. 2019 | |
| 173. |
What is the validity of challan in FORM GST PMT-06? |
| A. | 1 day |
| B. | 5 days |
| C. | 15 days |
| D. | Forever |
| Answer» D. Forever | |
| 174. |
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 |
| A. | Location of the recipient |
| B. | Location of the supplier |
| C. | Location at which such goods are taken on board |
| D. | None of the above |
| Answer» D. None of the above | |
| 175. |
What is the time of supply of service if the invoice is not issued within 30 days from the date ofsupply of service and no advance payments are received? |
| A. | Date of issue of invoice by the supplier |
| B. | Date of completion of supply of service |
| C. | Date of receipt of payment by the supplier |
| D. | Date of receipt of payment or date of issue of invoice whichever is earlier |
| Answer» C. Date of receipt of payment by the supplier | |
| 176. |
Where the application of registration is found to be deficient for any reason and the ProperOfficer requires any further information then he shall intimate to the applicant in form |
| A. | GST REG-01 |
| B. | GST REG-02 |
| C. | GST REG-03 |
| D. | GST REG-04 |
| Answer» D. GST REG-04 | |
| 177. |
Determine the Time of supply in case goods are supplied on approval basis Removal of goods : 01-12-2019 Issue of Invoice : 15-12-2019 Accepted by recipient : 05-12-2019 Receipt of payment : 25-12-2019 |
| A. | Removal of goods : 01-12-2019 |
| B. | Issue of Invoice : 15-12-2019 |
| C. | Accepted by recipient : 05-12-2019 |
| D. | Receipt of payment : 25-12-2019 |
| Answer» C. Accepted by recipient : 05-12-2019 | |
| 178. |
Find out the following, who are the persons not liable for registration under the CGST Act, 2017. |
| A. | Non-resident making taxable supply |
| B. | Person supplying exempted goods and services or goods or services which are not liable for tax under GST |
| C. | An agriculturist, to the extent of supply of produce out of cultivation of land |
| D. | Both (b) and (c) |
| Answer» E. | |
| 179. |
of supply is the amount upon which tax is levied and collected. |
| A. | Value |
| B. | Cost |
| C. | Turnover |
| D. | Gross value |
| Answer» B. Cost | |
| 180. |
Determine the TOS in accordance with provisions of CGST Act, 2017Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 12th Dec. 2019 Date on which payment received - 30th April 2020 |
| A. | 10th Nov. 2019 |
| B. | 12th Dec. 2019 |
| C. | 30th April 2020 |
| D. | 10th Dec. 2019 |
| Answer» B. 12th Dec. 2019 | |
| 181. |
Place of supply of services in relation to mobile connection for pre-paid customers other thanthrough internet banking shall be the |
| A. | Location where such prepayment is received as such vouchers are sold |
| 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 | |
| 182. |
In case of any ambiguity where the place of supply cannot be determined as provided in IGSTAct, 2016 who will determine place of supply? |
| A. | Central Government or State Government on the recommendation of the Council |
| B. | Central Government and State Government on the recommendation of the Council |
| C. | In a manner as may be prescribed |
| D. | Central Government |
| Answer» D. Central Government | |
| 183. |
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. |
| A. | Mumbai |
| B. | Nainital |
| C. | Delhi |
| D. | Any of the above |
| Answer» C. Delhi | |
| 184. |
Goods under CGST Act excludes |
| A. | Securities |
| B. | Unsecured debts |
| C. | Right to participate in the draw to be held in a lottery |
| D. | Growing crops |
| Answer» B. Unsecured debts | |
| 185. |
Mr. X a resident from Pune conducts training for employees of P Ltd. being a registered personunder GST based out in Chennai at a resort in Darjeeling. The place of supply in this case is: |
| A. | Chennai |
| B. | Pune |
| C. | Darjeeling |
| D. | None of the above |
| Answer» B. Pune | |
| 186. |
Mr. A was liable to pay GST of ` 10,000 on 20-8-2019 but he failed to pay. Later he decided topay tax on 26-10-2019. What would be the period for which interest has to be paid by him ? |
| A. | 66 day |
| B. | 67 days |
| C. | 68 days |
| D. | 70 days |
| Answer» C. 68 days | |
| 187. |
What is the rate applicable under CGST to a registered person being a hotelier (providingrestaurant and accommodation services) opting to pay taxes under composition scheme? |
| A. | 1% |
| B. | 0.5% |
| C. | 2.5% |
| D. | Not eligible for composition scheme thus liable to pay normal tax |
| Answer» E. | |
| 188. |
The following tax has been subsumed into Central GST. |
| A. | Central Sales Tax |
| B. | Custom Duty |
| C. | Service Tax |
| D. | All of the above |
| Answer» E. | |
| 189. |
The value of supply should include - |
| A. | Incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply |
| 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 Government |
| D. | All of the above |
| Answer» E. | |
| 190. |
Place of supply of services in relation to lodging accommodation shall be the |
| A. | Location of the supplier |
| B. | Location of the recipient |
| C. | Location at which the lodging accommodation is located |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 191. |
Determine the TOS in accordance with provisions of CGST Act, 2017Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 30th Nov. 2019 Date on which payment received - 15th Nov. 2019 |
| A. | 10th Nov. 2019 |
| B. | 30th Nov. 2019 |
| C. | 15th Nov. 2019 |
| D. | 10th Dec. 2019 |
| Answer» D. 10th Dec. 2019 | |
| 192. |
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 Invoice : 02-10-2019 Date goods made available to recipient : 03-10-2019 Date of receipt of payment : 15-11-2019 |
| A. | Date of Invoice : 02-10-2019 |
| B. | Date goods made available to recipient : 03-10-2019 |
| C. | Date of receipt of payment : 15-11-2019 |
| D. | None of the above |
| Answer» B. Date goods made available to recipient : 03-10-2019 | |
| 193. |
GST is a based tax. |
| A. | Territory |
| B. | Origin |
| C. | Destination |
| D. | None of the above |
| Answer» D. None of the above | |
| 194. |
Every person registered under any of the existing laws, who is not liable to be registered under the Act may, on or before , at his option, submit an application in FORM GST REG-29 for the cancellation of registration granted to him |
| A. | September 30, 2018 |
| B. | October 31, 2018 |
| C. | November 30, 2018 |
| D. | March 31, 2019 |
| Answer» E. | |
| 195. |
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 |
| A. | 11,00,000 |
| B. | 11,80,000 |
| C. | 10,00,000 |
| D. | 11,75,000 |
| Answer» D. 11,75,000 | |
| 196. |
Which of the following is a non–taxable supply under the CGST Act, 2017 ? |
| A. | Supply of goods not leviable to tax under the CGST Act, 2017 |
| B. | Supply of services not leviable to tax under the CGST Act, 2017 |
| C. | Supply which is neither a supply of good nor a supply of service. |
| D. | Both (a) and (b) |
| Answer» E. | |
| 197. |
Whether all persons are mandatorily required to obtain registration? |
| A. | Yes |
| B. | Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services, if specified threshold limit does not exceed in a financial year. |
| C. | Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services. |
| D. | No, only if specified threshold exceeds in a financial year then only need to obtain. |
| Answer» D. No, only if specified threshold exceeds in a financial year then only need to obtain. | |
| 198. |
There was increase in tax rate from 20% to 24% w.e.f. 1.9.2019. Which of the following rate isapplicable 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 : |
| 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 during which the supply was effected |
| D. | 24% as invoice being one of the factors was issued after rate change |
| Answer» D. 24% as invoice being one of the factors was issued after rate change | |
| 199. |
Where a person makes taxable supplies of goods or services or both from any of the Special Category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds |
| A. | 10 lakh |
| B. | 25 lakhs |
| C. | 1.5 crores |
| D. | 20 lakhs |
| Answer» B. 25 lakhs | |
| 200. |
A taxable person whose registration has been cancelled or surrendered must file the final returnof GST within |
| A. | 6 months of the cancellation |
| B. | 6 months after the end of the financial year |
| C. | 3 months after the end of the financial year |
| D. | 3 months after the date of cancellation |
| Answer» E. | |