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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.
| 301. |
The payment of tax by electronic operator who does not have physical presence in taxableterritory in India be made by |
| A. | e-commerce operator himself |
| B. | his appointed representative in India |
| C. | the person who receives supply |
| D. | either (a) and (b) |
| Answer» C. the person who receives supply | |
| 302. |
GST is a comprehensive tax regime covering . |
| A. | Good |
| B. | Services |
| C. | Both goods and services |
| D. | None of the above |
| Answer» D. None of the above | |
| 303. |
The first 2 digits of GSTIN represent . |
| A. | Entity code |
| B. | Country code |
| C. | State code |
| D. | Check sum character |
| Answer» D. Check sum character | |
| 304. |
Which of the following called the Union territory as being covered under Union Territory Goodsand Service Tax Act, (UTGST), 2017 ? |
| A. | Sikkim |
| B. | Puducherry |
| C. | Daman and Diu |
| D. | None of the above |
| Answer» C. Daman and Diu | |
| 305. |
Which of the following incomes/activities is liable for GST? |
| A. | Salary |
| B. | Salary and allowances of MPs |
| C. | Services by Court |
| D. | Sale of jewellery |
| Answer» E. | |
| 306. |
In case M/s. PQR Ltd., a registered person, has availed rent-a-cab service from M/s ABC Travels(Proprietor) service then which one of the following is true: |
| A. | Reverse charge is applicable as this is a notified service |
| B. | Reverse charge is applicable if ABC Travels is not registered |
| C. | Joint charge is applicable |
| D. | None of the above |
| Answer» C. Joint charge is applicable | |
| 307. |
the table supplies returned to the supplier on the electronic commerce is as adeduction while calculating the net value. |
| A. | No, not allowed |
| B. | Yes, allowed |
| C. | Yes, not allowed |
| D. | No, allowed |
| Answer» C. Yes, not allowed | |
| 308. |
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 : 03-10-2019 Date of Invoice : 01-10-2019 Date goods made available to recipient : 04-10-2019 Date of receipt of payment : 25-11-2019 |
| A. | Date of Removal of goods : 03-10-2019 |
| B. | Date of Invoice : 01-10-2019 |
| C. | Date goods made available to recipient : 04-10-2019 |
| D. | Date of receipt of payment : 25-11-2019 |
| Answer» C. Date goods made available to recipient : 04-10-2019 | |
| 309. |
Actionable Claims are . |
| A. | Specifically included in the definition of goods |
| B. | Specifically included in the definition of services |
| C. | Specifically excluded from the definition of goods as well as services |
| D. | Specifically excluded from the definition of goods only |
| Answer» B. Specifically included in the definition of services | |
| 310. |
Unless and until notified, IGST shall not be levied on the inter-State supply of which of thefollowing: |
| A. | Industrial alcohol |
| B. | Works contract |
| C. | Petroleum |
| D. | None of the above |
| Answer» D. None of the above | |
| 311. |
ITC can be taken on goods if goods not received by registered person but |
| A. | By his agent on his direction |
| B. | By the job worker on his instruction |
| C. | By any other person on his direction |
| D. | Any of above |
| Answer» E. | |
| 312. |
Money is . |
| A. | Specifically included in the definition of goods |
| B. | Specifically included in the definition of services |
| C. | Specifically excluded from the definition of goods as well as services |
| D. | None of the above |
| Answer» D. None of the above | |
| 313. |
For certain Special category States, the reduced limit of ` 75 lakhs for opting composition schemeis available. The reduced limit of ` 75 Lakhs is not available for? |
| A. | Manipur |
| B. | Meghalaya |
| C. | Himachal Pradesh |
| D. | Jammu & Kashmir |
| Answer» E. | |
| 314. |
Supply of goods by any unincorporated association or body of persons to a member thereof forcash, deferred payment or other valuable consideration 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» B. Supply of services | |
| 315. |
GST has replaced the following law(s) |
| A. | Custom |
| B. | VAT |
| C. | Central excise |
| D. | Both (b) and (c) |
| Answer» E. | |
| 316. |
Any treatment or process which is applied to another person’s goods 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 | |
| 317. |
Over the Counter Payment can be made in branches of Banks Authorized for deposits up to` per challan per tax period? |
| A. | 5,000 |
| B. | 10,000 |
| C. | 20,000 |
| D. | 40,000 |
| Answer» C. 20,000 | |
| 318. |
Threshold limit of registration is applicable to the following persons |
| A. | Input Service Distributor, whether or not separately registered under this Act |
| B. | Non-resident taxable persons making taxable supply |
| C. | Every Electronic Commerce Operator |
| D. | None of the above |
| Answer» E. | |
| 319. |
The place of supply of insurance services to a registered person, shall be the |
| A. | Location of the supplier |
| B. | Location of the recipient |
| C. | Location where the services are performed |
| D. | Any of the above |
| Answer» C. Location where the services are performed | |
| 320. |
The items which will be taxable both under Central Excise Law and the GST even after theimplementation of the GST Act. |
| A. | Motor spirit |
| B. | Tobacco and Tobacco Products |
| C. | Alcoholic liquor for human consumption |
| D. | Natural Gas |
| Answer» C. Alcoholic liquor for human consumption | |
| 321. |
Which of the following shall be discharged first, while discharging liability of a taxable person? |
| A. | All dues related to previous tax period |
| B. | All dues related to current tax period |
| C. | Additional demand raised |
| D. | No such condition is mandatory |
| Answer» B. All dues related to current tax period | |
| 322. |
is levied on Intra State Supply of Goods and/or Services in Union Territory. |
| A. | SGST |
| B. | IGST |
| C. | UTGST |
| D. | GST is not levied |
| Answer» D. GST is not levied | |
| 323. |
Is Input tax fully restricted in case of switchover from taxable to exempt supplies |
| A. | Ye |
| B. | No |
| C. | Proportionately restricted |
| D. | Not restricted |
| Answer» B. No | |
| 324. |
Mr.A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of removal - 3rd Oct. 2019 Date of Invoice - 1st Oct. 2019Date when goods made available to the recipient - 4th Oct. 2019 Date of receipt of payment - 25th Nov. 2019 |
| A. | 3rd Oct. 2019 |
| B. | 1st Oct. 2019 |
| C. | 4th Oct. 2019 |
| D. | 25th Nov. 2019 |
| Answer» C. 4th Oct. 2019 | |
| 325. |
Distribution of electricity by a distribution utility is a: |
| A. | Non-taxable supply |
| B. | Exempt Supply |
| C. | Nil Rated Supply |
| D. | Neither supply of goods nor supply of services |
| Answer» C. Nil Rated Supply | |
| 326. |
The supply of goods after the completion of the Job work from the registered place of businessplace of a Job worker |
| A. | The Principal who despatched the goods for Job work |
| B. | The Job worker |
| C. | Either of the party |
| D. | Deemed supply of the Job worker |
| Answer» B. The Job worker | |
| 327. |
Lease, tenancy, easement, licence to occupy land 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» C. Neither as a supply of goods nor a supply of services | |
| 328. |
Abhijit Sen is engaged in running a textile showroom at Gangtok (Sikkim). In order to avail composition scheme under GST law, his “aggregate turnover” in the preceding financial year should not have exceeded: |
| A. | 10 lakh |
| B. | 20 lakhs |
| C. | 50 lakhs |
| D. | 75 lakhs |
| Answer» D. 75 lakhs | |
| 329. |
A taxable person failed to pay tax and / or file returns on time. He should pay interest on ? |
| A. | Gross tax payable |
| B. | Gross tax payable and input credit claimed |
| C. | Net tax payable i.e. amount to be paid after ITC set off |
| D. | No interest payable, if reasonable cause is shown |
| Answer» B. Gross tax payable and input credit claimed | |
| 330. |
XYZ Ltd. has purchased for its employees 100 vouchers dated 24-02-2019 worth 1,000 each from ABC Ltd. a footwear manufacturing company. The vouchers were issued by ABC Ltd. on 25-02-2019. The vouchers can be encashed at retail outlets of ABC Ltd. The same were given to employees on 26-02-2019. The employees of XYZ Ltd. encashed the same on 01-03-2019. Determine time of supply of vouchers. |
| A. | 24-02-2019 |
| B. | 25-02-2019 |
| C. | 26-02-2019 |
| D. | 01-03-2019 |
| Answer» C. 26-02-2019 | |
| 331. |
The available balance of input tax credit in the electronic ledger of the registered person onaccount of Union territory tax shall be utilised as per section 9 of UTGST Act, 2017 |
| A. | first towards payment of central tax |
| B. | first towards payment of integrated tax |
| C. | first towards payment of union territory tax and the amount remaining, if any towards payment of integrated tax |
| D. | none of the above |
| Answer» D. none of the above | |
| 332. |
A person not required to obtain registration if he is required to pay tax under reverse charge and there are no taxable supplies made by him. |
| A. | Incorrect, if person who are required to pay tax under reverse charge, irrespective of threshold shall obtain registration. |
| B. | Incorrect, if person who are required to pay tax under reverse charge obtain registration only if such value of supplies under reverse charge exceeds the threshold limit. |
| C. | Above statement is correct |
| D. | A person is required to obtain registration if he is required to pay tax under reverse charge and also he is also making taxable supplies irrespective of the threshold limit. |
| Answer» B. Incorrect, if person who are required to pay tax under reverse charge obtain registration only if such value of supplies under reverse charge exceeds the threshold limit. | |
| 333. |
Credit on Input services or capital goods held in stock can be availed in case of new Registration/ Voluntary Registration |
| A. | Ye |
| B. | No |
| C. | Yes, on Input services only |
| D. | Yes, on capital goods only |
| Answer» C. Yes, on Input services only | |
| 334. |
Which is a wrong statement? |
| A. | All services of Department of Post are exempted |
| B. | All services by State/Central Governments/local authorities in relation to an aircraft or a vessel in a Port or an Airport are exempted |
| C. | All services by State/Central Governments/local authorities in relation to transport of passengers are exempted |
| D. | All the above mentioned |
| Answer» E. | |
| 335. |
A Ltd. is located in India and W Ltd. located in USA are associated enterprises (as A Ltd. holds 51% of the shares of W Ltd.). W Ltd. provides some technical services to A Ltd. in India. From the following details, determine the TOS for A Ltd. (as importation of services is the case of RCM) Agreed Consideration - $ 10,000. Date on which services are supplied on W Ltd. - 16th Dec. 2019 Date on which invoice is sent by W Ltd. - 19th Dec. 2019 Date of entry in the Books of Account of A Ltd. - 30th Dec. 2019 Date on which payment is made by A Ltd. - 23rd March 2020 |
| A. | 16th Dec. 2019 |
| B. | 19th Dec. 2019 |
| C. | 30th Dec. 2019 |
| D. | 23rd March 2020 |
| Answer» D. 23rd March 2020 | |
| 336. |
What is the maximum rate prescribed under CGST Act? |
| A. | 12% |
| B. | 28% |
| C. | 20% |
| D. | 18% |
| Answer» D. 18% | |
| 337. |
What should the taxable person do if he pay’s the wrong tax i.e. IGST instead of CGST/SGST orvice versa? |
| A. | Remit tax again and claim refund |
| B. | It will be auto-adjusted |
| C. | It will be adjusted on application/request |
| D. | None of the above |
| Answer» B. It will be auto-adjusted | |
| 338. |
Select the correct statement? |
| A. | Transfer of a going concern wholly is not exempt from GST |
| B. | Transfer of a going concern is partly exempt from GST |
| C. | Transfer partly as going concern is exempted from GST |
| D. | Transfer of a going concern is exempt from GST |
| Answer» E. | |
| 339. |
What is the maximum rate prescribed under UTGST Act? |
| A. | 14% |
| B. | 28% |
| C. | 20% |
| D. | 30% |
| Answer» D. 30% | |
| 340. |
Input tax does not include . |
| A. | IGST on import of good |
| B. | SGST and UTGST |
| C. | Tax paid under composition levy |
| D. | Tax payable section 9(3) and 9(4) |
| Answer» D. Tax payable section 9(3) and 9(4) | |
| 341. |
Which of the following is the supply even if made without consideration? |
| A. | Stock transfer out to another state |
| B. | Temporary application of business asset for a non-business needs |
| C. | Free transfer of business asset |
| D. | All of the above |
| Answer» E. | |
| 342. |
Which of the following is not exempted -? |
| A. | Health care service to human beings by authorized medical practitioners / para medics |
| B. | Health care services to Animals/Birds |
| C. | Slaughtering of animals |
| D. | Rearing horses |
| Answer» E. | |
| 343. |
Raj & Co., applied for voluntary registration under CGST Act, 2017 on 5th July, 2019 and the registration was granted on 15th July, 2019. Raj & Co., was having the stock available against the invoices for a period of 3 months old. Raj & Co., shall be eligible for input tax credit on such stock as held as on: |
| A. | 30th June, 2019 |
| B. | 05th July, 2019 |
| C. | 15th July, 2019 |
| D. | 14th July, 2019 |
| Answer» E. | |
| 344. |
The place of supply of goods exported from India shall be the |
| A. | Location of the importer |
| B. | Location of the exporter |
| C. | Location of the agent of exporter |
| D. | Location outside India |
| Answer» E. | |
| 345. |
Taxable person made an online payment of tax. Due to technical snag CIN was not generatedbut my bank account is debited. What should he do? |
| A. | Wait for 24 hours for re-credit |
| B. | Approach bank |
| C. | File application with department |
| D. | File return without challan |
| Answer» D. File return without challan | |
| 346. |
Place of supply of services of architects in relation to the design of office building shall be the |
| A. | Location of the supplier |
| B. | Location of the recipient |
| C. | Location of such office building |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 347. |
In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice shall be issued |
| A. | before or at the time when the supplier of service receives the payment |
| B. | on or before the due date of payment |
| C. | either (a) or (b) |
| D. | none of the above |
| Answer» C. either (a) or (b) | |
| 348. |
Mr. Y residing in Ahmedabad appoints an architect in Delhi to provide Indian traditional homedesign for his proposed construction at Los Angeles, the place of supply of service is |
| A. | Los Angele |
| B. | Ahmedabad |
| C. | Delhi |
| D. | None of the above |
| Answer» B. Ahmedabad | |
| 349. |
The calculation of aggregate turnover to decide the registration limit will be based on |
| A. | State wise Turnover |
| B. | State wise Turnover excluding Export |
| C. | All over India Turnover |
| D. | All over Turnover excluding Export |
| Answer» D. All over Turnover excluding Export | |
| 350. |
Transfer of the right to use any goods for any purpose (whether or not for a specified period) forcash, deferred payment or other valuable consideration 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 | |