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.
| 201. |
The supply of goods to SEZ unit is treated as in the hands of the supplier for eligibility ofITC. |
| A. | Exempt Supply |
| B. | Deemed Taxable Supply |
| C. | Export of Supplies |
| D. | Non-taxable supply |
| Answer» C. Export of Supplies | |
| 202. |
Input tax credit on capital goods and Inputs can be availed in one installment or in multipleinstallments? |
| A. | In thirty-six installment |
| B. | In twelve installments |
| C. | In one installment |
| D. | In six installments |
| Answer» D. In six installments | |
| 203. |
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 |
| A. | (i), (iii) and (v) |
| B. | (i), (ii), (iv) and (v) |
| C. | (i), (ii) and (v) |
| D. | All the 5 in (i) to (v) |
| Answer» E. | |
| 204. |
Which section deals with the TDS provisions in GST ? |
| A. | Section 51 |
| B. | Section 52 |
| C. | Section 53 |
| D. | Section 54 |
| Answer» B. Section 52 | |
| 205. |
The Input Tax Credit as self-assessed by a taxable person is credited into the |
| A. | Electronic Credit Ledger |
| B. | Electronic Tax Liability Ledger |
| C. | Electronic Cash Ledger |
| D. | All of the above |
| Answer» B. Electronic Tax Liability Ledger | |
| 206. |
ITC includes tax payable also. |
| A. | VAT |
| B. | Reverse Charge |
| C. | Excise |
| D. | Custom laws |
| Answer» C. Excise | |
| 207. |
Suppose XYZ Ltd has a license to operate a particular business venture but he refrains from operating such business venture after an agreement with other business houses in the same line of business against receiving certain amount. Is this a supply of service? |
| A. | Ye |
| B. | No |
| C. | Exempted |
| D. | None of the above |
| Answer» B. No | |
| 208. |
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 |
| Answer» D. none of the above | |
| 209. |
What is the rate of interest in case of belated payment of tax ? |
| A. | 1% |
| B. | 10% |
| C. | 18% |
| D. | 24% |
| Answer» D. 24% | |
| 210. |
Business which has centralized registration under erstwhile Act |
| A. | Shall obtain a centralized registration under GST Law |
| B. | Shall obtain separate registration in each state from where it is making taxable supplies |
| C. | Shall obtain registration on temporary basis |
| D. | No need to apply for registration under GST |
| Answer» C. Shall obtain registration on temporary basis | |
| 211. |
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 |
| A. | included in the transaction value i.e. (value of taxable supply) |
| B. | just ignored no treatment |
| C. | shall not be included in transaction value i.e. (value of taxable supply) |
| D. | deducted from the transaction value i.e. (value of taxable supply) |
| Answer» D. deducted from the transaction value i.e. (value of taxable supply) | |
| 212. |
Tax on inter-State supplies, import into India, supplies made outside India and supplies made inSEZ shall be charged to |
| A. | CGST and SGST |
| B. | CGST and UTGST |
| C. | CGST and IGST |
| D. | IGST |
| Answer» E. | |
| 213. |
Which of the following transaction is inter-state supply of goods? |
| A. | Location of supplier is in Lucknow, UP and location of recipient is in Mumbai. |
| B. | Location of supplier is in Lucknow, UP and place of supply is Mumbai |
| C. | Location of supplier and place of supply is Lucknow, UP |
| D. | None of the above |
| Answer» C. Location of supplier and place of supply is Lucknow, UP | |
| 214. |
If the aggregate turnover of in F.Y. 2018-19 of M/s ABCD Enterprises, Kanchipuram, Tamil Nadu,India was ` 18 lakh, exemption is available for the following services rendered to ABCD Enterprises |
| A. | Arbitral Tribunal services |
| B. | Legal services by firm of advocates |
| C. | Legal services by senior advocate |
| D. | All of the above |
| Answer» E. | |
| 215. |
Where the supplier of taxable goods receives an amount upto in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount. |
| A. | 1,000 |
| B. | 5,000 |
| C. | 10,000 |
| D. | 50,000 |
| Answer» B. 5,000 | |
| 216. |
Goods and Services Tax (GST) has been implemented in India w.e.f. |
| A. | 1st July, 2017 |
| B. | 1st June, 2017 |
| C. | 1st September, 2017 |
| D. | 1st April, 2017 |
| Answer» B. 1st June, 2017 | |
| 217. |
The default rule of place of supply of services made to a registered person shall be the |
| A. | Location of the registered person |
| B. | Location of the service provider |
| C. | Location where the service is provided |
| D. | Any of the above |
| Answer» B. Location of the service provider | |
| 218. |
An individual acts as a referee in a football match organised by Sports Authority of India. Which one of the following is correct ? |
| A. | The individual is liable to pay GST |
| B. | Sports Authority of India is liable to pay GST |
| C. | Exempted from GST |
| D. | Outside the scope of supply |
| Answer» D. Outside the scope of supply | |
| 219. |
Services by any court or Tribunal established under any law for the time being in force is . |
| 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 | |
| 220. |
There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate is applicable when services provided, and invoice raised after change in rate of tax in September, 2019, but payment received in August 2019 : |
| 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 factors) was prior to rate change |
| D. | 24% as invoice was issued in the period during which supply is completed |
| Answer» E. | |
| 221. |
Composition scheme is not applicable to service providers except the following. |
| A. | Consultancy Service |
| B. | Restaurant Service |
| C. | Beauty Parlours |
| D. | Cleaning Work |
| Answer» C. Beauty Parlours | |
| 222. |
The dealers who are not eligible for any threshold limit for registration under GST law are? |
| A. | Input Service Distributors and Dealers making supply through Electronic Commerce Operator |
| B. | Casual Dealers and Non-resident Taxable Persons |
| C. | Dealers making inter-state supplies and those having Reverse Charge Liability |
| D. | All of the above |
| Answer» E. | |
| 223. |
The duties performed by any person who holds any post in pursuance of the provisions of theConstitution in that capacity shall be considered 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 | |
| 224. |
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 ? |
| A. | He is liable to pay tax on ` 520 and eligible to claim input tax credit on purchase of juice cans |
| B. | He is liable to pay tax on ` 500 and not eligible to claim input tax credit on purchase of juice cans |
| C. | He is liable to pay tax on ` 500 and also eligible to claim input tax credit on purchase of juice cans |
| D. | Either (a) or (b) |
| Answer» D. Either (a) or (b) | |
| 225. |
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 ? |
| A. | She can pay tax @ 18%, charge it from customer and avail full input tax credit on procurements made. |
| B. | She can pay tax @ 6% under exemption scheme for service providers but she cannot charge GST from customer and also cannot avail input tax credit. |
| C. | She is not liable for registration since her aggregate turnover is less than ` 40,00,000 |
| D. | Either (a) or (b) |
| Answer» E. | |
| 226. |
The value of taxable supply should not include - |
| A. | Taxes levied under SGST Act, 2017 |
| B. | Taxes levied under CGST Act, 2017 |
| C. | Taxes levied under GST Compensation Cess Act, 2017 |
| D. | All of the above |
| Answer» E. | |
| 227. |
GST was introduced in India on |
| A. | 1-4-2017 |
| B. | 1-5-2017 |
| C. | 1-6-2017 |
| D. | 1-7-2017 |
| Answer» E. | |
| 228. |
Suppose a dealer who is a resident of Delhi has business places both at Delhi and Uttar Pradesh.From where does he have to take GST registration? |
| A. | From Delhi only |
| B. | From Uttar Pradesh only |
| C. | He has to take separate GST registration both at Delhi and Uttar Pradesh with the same PAN |
| D. | From either of the states |
| Answer» D. From either of the states | |
| 229. |
Input tax credit cannot be availed after the expiry of from the date of issue of tax invoice of supply. |
| A. | 6 month |
| B. | 3 months |
| C. | 1 year |
| D. | 2 years |
| Answer» D. 2 years | |
| 230. |
The tax invoice should be issued the date of supply of service. |
| A. | Within 30 days from |
| B. | Within 2 months from |
| C. | Within 15 days from |
| D. | On |
| Answer» B. Within 2 months from | |
| 231. |
Renting of immovable property is . |
| 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 | |
| 232. |
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 section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains |
| D. | Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier Manan Prakashan 35 |
| Answer» E. | |
| 233. |
Can composition scheme be availed if the registered person effects inter-State supplies? |
| A. | Yes |
| B. | No |
| C. | Yes, subject to prior approval of the Central Government |
| D. | Yes, subject to prior approval of the concerned State Government |
| Answer» C. Yes, subject to prior approval of the Central Government | |
| 234. |
Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST. Determinethe rate 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 |
| Answer» B. 2.5% CGST & 2.5% UTGST | |
| 235. |
From the following information determine the reverse charge basis. Date of Invoice : 30-1-2019 Date of completion of service : 30-1-2019 Date of payment by recipient : 15-1-2019 Entry for receipt of service in recipient’s books : 30-1-2019 |
| A. | Date of Invoice : 30-1-2019 |
| B. | Date of payment by recipient : 15-1-2019 |
| C. | Either of the above |
| D. | None of the above |
| Answer» C. Either of the above | |
| 236. |
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 |
| A. | All the above four |
| B. | (i), (ii) and (iv) |
| C. | (i) and (ii) |
| D. | (ii), (iii) and (iv) |
| Answer» C. (i) and (ii) | |
| 237. |
Input Tax Credit of CGST can be first utilised to pay output liability of . |
| A. | SGST |
| B. | CGST |
| C. | IGST |
| D. | UTGST |
| Answer» C. IGST | |
| 238. |
If Tobacco leaves procured from an Agriculturist by a registered person, then: |
| A. | Reverse charge is applicable |
| B. | Normal charge is applicable |
| C. | Joint charge is applicable |
| D. | None of the above |
| Answer» B. Normal charge is applicable | |
| 239. |
Suppose Mr. Z has a credit of ` 15 lakhs in his ITC ledger and at the same time, he has an interest arrears dues of ` 16 Lakhs and penalty dues of ` 12 lakhs. If so, how much Mr. Z has to deposit to settle the above interest and penalty dues? |
| A. | 16 Lakh |
| B. | 28 Lakhs |
| C. | 12 Lakhs |
| D. | 15 Lakhs |
| Answer» C. 12 Lakhs | |
| 240. |
Persons shall be deemed to be “related persons” if |
| A. | such persons are officers or directors of one another’s businesses |
| B. | such persons are legally recognised partners in business |
| C. | such persons are employer and employee; |
| D. | All of the above |
| Answer» E. | |
| 241. |
is levied on Inter-State supplies of goods or services or both. |
| A. | CGST |
| B. | SGST |
| C. | IGST |
| D. | Both (a) and (b) |
| Answer» D. Both (a) and (b) | |
| 242. |
What is the time of supply of service in case an associated enterprise receives services from theservice provider located outside India? |
| A. | Date of entry in the books of account of associated enterprise (recipient) |
| B. | Date of payment |
| C. | Earlier of (a) and (b) |
| D. | Date of entry in the books of the supplier of service |
| Answer» D. Date of entry in the books of the supplier of service | |
| 243. |
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 lac |
| B. | 50 lacs |
| C. | 75 lacs |
| D. | 1 crore |
| Answer» D. 1 crore | |
| 244. |
Supply includes import of services for a consideration . |
| A. | Only if in the course or furtherance of business |
| B. | Only if not in the course or furtherance of business |
| C. | Whether or not in the course or furtherance of business |
| D. | None of the above |
| Answer» D. None of the above | |
| 245. |
Continuous supply of services” means a supply of services who provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding MONTHS with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify |
| A. | Three |
| B. | Four |
| C. | Six |
| D. | Twelve |
| Answer» B. Four | |
| 246. |
Indirect Tax is a . |
| A. | Regressive tax |
| B. | Progressive tax |
| C. | Tax on tax |
| D. | Value added tax |
| Answer» B. Progressive tax | |
| 247. |
The highest enabling limit of tax rate of IGST has been prescribed at |
| A. | 20% |
| B. | 14% |
| C. | 28% |
| D. | None of the above |
| Answer» E. | |
| 248. |
Reverse charge under section 9(3) of the CGST Act is applicable: |
| A. | Only on notified service |
| B. | Only on notified goods |
| C. | On Notified goods & services |
| D. | On None of the above |
| Answer» D. On None of the above | |
| 249. |
In case of Voluntary registration input tax credit can be availed |
| A. | on stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act |
| B. | on stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act |
| C. | on 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» C. on stocks held on the day immediately preceding the date of application of registration under the provisions of this Act | |
| 250. |
Subbu, a registered supplier based at Erode coached the staff of a software company inHyderabad, which is registered. The classes were held at Erode. The place of supply is |
| A. | As mutually agreed upon |
| B. | Hyderabad |
| C. | Erode |
| D. | Bengaluru |
| Answer» C. Erode | |