UNIT-I

1. Which among the following is not the type of tax which is directly imposed on the
taxpayer and he/she pays the same directly to the government?
A. Income Tax
B. Corporate Tax
C. Wealth Tax
D. Goods and Service Tax
ANSWER: D

2. A ……. is a mandatory financial charge or levy or burden imposed upon a taxpayer by

the government in order to fund different public expenditures.
A. Subsidy
B. Tax
C. Income
D. Revenue
ANSWER: B

3. Do you think tax evasion has become less with the application of goods and service
tax on supply?
A. Yes
B. No
ANSWER: A

4. What is the nature of indirect taxes in our nation?

A. Progressive
B. Regressive
ANSWER: B

5. What is the nature of direct taxes in our nation?

A. Progressive
B. Regressive
ANSWER: A

6. Under which type of tax is the taxation amount collected shared between the centre
and the states?
A. CGST
B. SGST
C. UTGST
D. IGST
ANSWER: D

7. The system of charging tax on tax (also called as incidence of tax) is called as….
A. Input Tax Credit
B. Tax Compliance
 C. Cascading Effect
D. Sales Tax
ANSWER: C

8. Article….. states that no tax shall be levied or collected except by authority of law.
A. 100
B. 250
C. 265
D. 300
ANSWER: C

9. Article….. grants power to centre to make laws with respect to GST in case of inter-
state supply of goods and services and state government to make laws with respect to
GST in case of intra-state supply of goods and services.
A. 100
B. 246 A
C. 245
D. 145
ANSWER: B

10. Who is the chairperson of the GST Council?

A. Prime Minister
B. President
C. Union Finance Minister
D. State Revenue Minister
ANSWER: C

11. Under GST, which is the point of collection of taxes?

A. Manufacture
B. Production
C. Destination of Supply
D. Origin of Sales
ANSWER: C

12. ….. is a constitutional body created by the President to make recommendations or give
any suggestions to the union and state government on issues related to goods and
service tax.
A. GST Court
B. GST Apex Body
C. GST Board of Directors
D. GST Council
ANSWER: D
13. Any transaction or occurrence that results in a tax consequence is called a “taxable
event.” In case of GST, the taxable event is…
A. Manufacture
B. Production
C. Supply of goods and services
D. Origin of Sales
ANSWER: C

14. Can Composition scheme be availed if the registered person effects interstate
supplies?
A. Yes
B. No
C. Yes, subject to prior approval of the Central Government Levy and Collection of
Tax 11 Indirect Taxes Committee
D. Yes, subject to prior approval of the concerned State Government
ANSWER: B

15. What are different types of supplies covered under the scope of Supply?
A. Supplies made with consideration
B. Supplies made without consideration
C. Both of the above
D. None of the above
ANSWER: C

16. What are the factors differentiating Composite Supply & Mixed Supply?
A. Nature of bundling i.e. artificial or natural
B. Existence of Principal Supply
C. Both of the above
D. None of the above
ANSWER: C

17. Who will notify the rate of tax to be levied under CGST?
A. Central Government suo moto
B. State Government suo moto
C. GST Council suo moto
D. Central Government as per the recommendations of the GST Council
ANSWER: D

18. First discussion paper (FDP) which formed the basis for GST in 2009 was released by
A. Union Finance Ministry
B. Dr. Manmohan Singh
C. GST Council
D. Empowered Committee
ANSWER: D
19. …… includes all forms of supply such as sale, transfer, barter, exchange, license,
rental, lease or disposal made or agreed to be made for a consideration by a person in
the course or furtherance of business.
A. Supply
B. Production
C. Manufacture
D. Sales
ANSWER: A

20. …… in relation to supply of goods or services or both include any payment made or
agreed to be made whether in money or otherwise(in kind) in respect of or in response
to supply of goods or services or both.
A. Consideration
B. Monetary payment
C. Manufacture
D. Sales
ANSWER: A

21. . …… in relation to supply of goods or services under GST shall be in money or in

kind or partly in money and partly in kind or monetary value of any act or forbearance
of the supply.
A. Consideration
B. Monetary payment
C. Manufacture
D. Sales
ANSWER: A

22. It is possible to shift the burden of taxation in the case of….

A. Income Tax
B. Wealth Tax
C. Gift Tax
D. Indirect Tax such as GST
ANSWER: D

23. The imposition of direct taxes is on…. while in the case of indirect taxes it is on ….
A. Gifts, Income
B. Income, Goods or Services
C. Goods or Services, Income
D. Income, Gifts
ANSWER: B

24. The final burden of paying taxes in case of income tax is on …. While in the case of
indirect taxes is on….
A. Producer, Consumer
 B. Consumer, Producer
C. Final Consumer, Taxpayer
D. Taxpayer, Final Consumer
ANSWER: D

25. GST is a …... based tax.

A. Consumption/Destination
B. Production
C. Manufacture
D. Sales
ANSWER: A

26. Uniform rate of taxes are applicable in the case of ….

A. Central Sales Tax
B. VAT
C. Excise Duty
D. GST
ANSWER: D

27. What is the nature of levy in the case of GST?

A. Only at supply point without input tax credit
B. All points of manufacture
C. Only at supply point/consumption of goods and services with input tax credit
D. At the time of transfer and rent
ANSWER: C

28. Tax burden in the case of GST is comparatively …. as compared to pre-Gst tax
regime.
A. Higher
B. Lower
ANSWER: B

29. Goods and services tax mean any tax on supply of goods or services or both except
taxes on the supply of the …...
A. Articles
B. Commodities
C. Any material in tangible form
D. Alcoholic Liquor for human consumption
ANSWER: D

30. What is applicability of GST?

A. Applicable all over India except Sikkim
B. Applicable all over India except Jammu and Kashmir
C. Applicable all over India
 D. Applicable all over India except Nagaland
ANSWER: C

31. Which among the following is not the function of Goods and service tax council’s:
A. Establish a mechanism for dispute resolution
B. Make recommendations related to GST
C. Make any suggestions related to GST
D. Collect tax
ANSWER: D

32. In the case of reverse charge, tax is paid to the government by

A. Supplier
B. Buyer
C. Manufacturer
D. None
ANSWER: B

33. Supply includes ….

A. All forms of supply such as sale, transfer, barter, exchange, lease or rental
B. Importation of services for a consideration whether or not in the course of business
C. Activities covered in Schedule I or Schedule II
D. All three above
ANSWER: d

34. …… of services, mean the supply of any service where the supplier of service is
located outside India, the recipient/receiver of service is in India and the place of
service is in India.
A. Export
B. Import
C. Domestic Produce
D. Domestic Sales
ANSWER: B

35. ….. supply means a supply of goods or services or Both which is leviable to tax under
this act.
A. Zero-Rated
B. Taxable
C. Continuous
D. Exempt
ANSWER: B

36. ….. supply means supply of goods or services within a single state or union-territory.
A. Zero-Rated
B. Continuous
C. Intra-State Supply
D. Inter-State Supply
ANSWER: C

37. ….. supply means supply of goods or services between two different states or union-
territories.
A. Zero-Rated
B. Continuous
C. Intra-State Supply
D. Inter-State Supply
ANSWER: D

38. ……supply means supply of goods or services or both on which no tax is payable and
such supplies include export of goods and supply of goods to special economic zones.
A. Zero-Rated
B. Continuous
C. Intra-State Supply
D. Inter-State Supply
ANSWER: A

39. Goods which get input tax credit without being liable to collect output tax is called
A. Exempt goods
B. White goods
C. Sin goods
D. Zero rated goods
ANSWER: D

40. …… supply means supply of goods or services or both which attract nil rate of tax and
which are not chargeable to tax.
A. Exempt
B. Continuous
C. Intra-State Supply
D. Inter-State Supply
ANSWER: A

41. …… supply means supply of goods or services which is provided or agreed to be

provided on continuous or recurring basis.
A. Exempt
B. Continuous
C. Intra-State Supply
D. Inter-State Supply
ANSWER: B
42. Schedule I of GST includes deemed supplies that is supply without consideration.
Such supplies include all of the following except one. Mark the correct answer: -
A. Permanent transfer or disposal of assets
B. Supply between distinct or related persons
C. Supply between principal and agent and Supply involving Import of Services
D. Supply involving export of goods and services
ANSWER: D

43. …… persons under GST means persons who are under influence of one-another like
members of the same family.
A. Related
B. Distinct
C. Influential
D. Persuasive
ANSWER: A

44. Related persons include all but not one of the following. Mark the correct answer.
A. Directors of each other’s business
B. Legally recognised partners
C. Employer and Employee
D. Any third person holding 10% shares of both the companies
ANSWER: D

45. Related persons include all but not one of the following. Mark the correct answer.
A. Directors of each other’s business
B. Legally recognised partners
C. Employer and Employee
D. Any third person holding more than 25% shares of both the companies
E. Both are friends with each other however they do not control each other’s actions
ANSWER: E

46. Transactions between headquarters and branches of an establishment and stock

transfers and branch transfers are known as transactions between …... persons.
A. Related
B. Distinct
C. Influential
D. Persuasive
ANSWER: B

47. …. Supply means a supply made by a taxable person to a recipient which comprises of
two or more taxable supplies of goods or services or both, or any combination thereof
that are naturally bundled and supplied in conjunction with each other in the ordinary
course of business, one of which is a principal supply.
A. Exempt
B. Continuous
C. Composite
D. Inter-State Supply
ANSWER: C

48. Supply of goods or services which constitutes the predominant element of a composite
supply is called
A. Common Supply
B. Principal Supply
C. Continuous Supply
D. Mixed Supply
ANSWER: B

49. …. Supply means two or more individual supplies of goods or services or any
combination thereof made in conjunction with each other by a taxable person for a
single price where such supply does not constitute a composite supply.
A. Exempt
B. Mixed
C. Intra-State Supply
D. Inter-State Supply
ANSWER: B

50. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry
fruits, aerated drinks and fruit juices when supplied for a single price is
A. Exempt
B. Mixed
C. Intra-State Supply
D. Inter-State Supply
ANSWER: B

51. Goods are packed and transported with insurance, packing materials, transport and
insurance. This is a case of
A. Exempt
B. Continuous
C. Composite
D. Inter-State Supply
ANSWER: C

52. RK (Delhi) supplies goods to AB in Delhi. Determine the kind of supply and the
applicable tax.
A. Inter-State Supply, IGST
B. Intra-State Supply, CGST and SGST
C. Intra-State Supply, IGST
D. Inter-State Supply, CGST AND SGST
ANSWER: B

53. RK(Delhi) supplies goods to XY in Mumbai. Determine the kind of supply and the
applicable tax.
A. Inter-State Supply, IGST
B. Intra-State Supply, CGST and SGST
C. Intra-State Supply, IGST
D. Inter-State Supply, CGST AND SGST
ANSWER: A

54. Activities or transactions which are neither supply of goods nor supply of services that
are covered under negative list are covered under Schedule …. of the GST act.
A. I
B. II
C. III
D. IV
ANSWER: C

55. …. means receivers of goods or services are liable to pay the GST instead of suppliers.
A. Forward Charge Mechanism
B. Ordinary Mechanism
C. Routine Mechanism
D. Reverse Charge Mechanism
ANSWER: D

56. ……. is a simple and easy scheme under GST which can be opted by the small
taxpayers whose aggregate turnover of the preceding year is less than Rs.1.5 Crore
which helps them to get rid of tedious GST formalities and pay GST at a fixed rate of
turnover.
A. Payment Scheme
B. Turnover Scheme
C. Aggregate Scheme
D. Composition Scheme
ANSWER: D

57. First announcement for introduction of GST arose in

A. 2004
B. 2005
C. 2006
D. 2007
ANSWER:C
58. GST is a ____________________ based tax on consumption of goods and services.
A. Destination
B. Duration
 C. Destiny
D. Development
ANSWER: A

59. Which of the following tax rate is not applicable under the GST?
A. 5
B. 12
C. 18
D. 25
ANSWER: D

60. What kind of Tax is GST?

A. Direct Tax
B. Indirect Tax
C. Depends on the type of goods and services
D. None of the above
ANSWER: B

61. GSTIN refers to:

A. GST Information Number
B. GST Information and Network
C. General sales tax identifcation number
D. GST identification Number
ANSWER: D

62. Which constitutional amendment is done to pass the GST bill?

A. 101st
B. 120th
C. 122nd
D. 115th
ANSWER: A

63. Which of the following goods will not be covered under the GST bill?
A. Crude oil, Natural gas, aviation turbine fuel
B. Liquor
C. Petrol
D. All of the above
ANSWER:D

64. Which of the following is statement is not correct about GST?

A. GST is like a last-point retail tax. GST is going to be collected at point of Sale.
B. GST will abolish all the direct tax levied in India .
C. It will be implemented from 1 July, 2017 throughout the country.
D. It will unify the tax structure in India
ANSWER: B

65. In India GST became effective from_________________

A. 1st April,2017
B. 1st January,2017
C. 1st July,2017
 D. 1st March,2017
ANSWER:C

66. India has got____________ mode of GST.

A. Singular
B. Dual
ANSWER: B

67. What type of tax will be levied on import of goods?

A. CGST
B. SGST
C. CGST and SGST
D. IGST
ANSWER: D

68. India has chosen dual mode of GST same as ____________.

A. USA
B. UK
C. CANADA
D. CHINA
ANSWER: C

69. Can a person apply for pan without registration?

A. YES
B. NO
ANSWER: B

70. How can a person apply for registration?

A. Filing FORM GST REG-01 along with necessary documents with the jurisdictional
proper officer.
B. Filing FORM GST REG-01 electronically in the common portal and uploading the
required documents along with the application.
C. Uploading necessary documents electronically in the common portal and also
submitting manually to the jurisdictional proper officer.
D. None of the above
ANSWER: B

71. Who are mandatorily required to obtain registration?

A. Every Person not engaged in supplying any goods or services
B. An agriculturist and persons engaged in supplying exempt goods or services are
not required and for others if specified threshold limit exceeds in a financial year
C. Only not required for an agriculturist engaged in supplying exempt goods
D. Only if specified threshold limit exceeds in a financial year.
ANSWER: B

72. PAN issued is a mandatory document for registration.

A. It is one of the documents listed.
B. Yes, but non-resident taxable person may be granted registration on the basis
of any other document.
 C. No, for persons who are required to deduct tax at source u/s 51 shall have
TAN in lieu of PAN.
D. Both (B) and (C)
ANSWER: D

73. Which of the following tax will be abolished by the GST?

A. Service Tax
B. Corporation tax
C. Income Tax
D. Wealth Tax
ANSWER: A

74. Which of the following statement is untrue/false with respect to registration?

A. Every supplier of goods is required to obtain registration if the aggregate turnover
exceeds Rs.40 lakhs for goods and Rs.20 lakhs for services during a financial year.
B. The limit of 40/20 will be reduced to 10 lakhs in the respect of special category
states.
C. Any person engaged exclusively in the business of supplying goods or services that
are not liable to tax or not wholly exempted from tax.
D. Persons making inter-state taxable supply of goods have an option to get
themselves registered or not.
ANSWER: B

75. How the aggregate turnover of Rs. 10/20 Lakh is calculated for the purpose of
registration?
A. Aggregate value of all taxable supplies, exempt supplies, export of goods/services and
interstate supplies of a person having same PAN computed on all India basis.
B. Aggregate value of all taxable supplies, exempt supplies, export of goods/services and
interstate supplies of a person computed for each state separately.
C. Aggregate value of all taxable intrastate supplies, export of goods/services and
exempt supplies of a person having same PAN computed for each state separately.
D. Aggregate value of all taxable supplies, exempt supplies, export of goods/services and
interstate supplies of a person having same PAN computed on all India basis and
excluding taxes if any charged under CGST Act, SGST Act and IGST Act.
ANSWER: D

76. Within how many days a person should apply for registration?
A. Within 60 days from the date he becomes liable for registration.
B. Within 30 days from the date he becomes liable for registration.
C. No Time Limit
D. Within 90 days from the date he becomes liable for registration.
ANSWER: B

77. A person having ____business verticals in a State ____obtain a separate registration

for each business vertical.
A. Single, shall
B. Multiple, shall
C. Multiple, may
D. Single, May
ANSWER: C
78. If a person liable to be registered has operation in more than one State, he should…
A. Obtain registration in all states
B. obtain registration in any one state
C. registration is optional
D. Registration not mandatory.
ANSWER: A

79. If the proper officer does not take any action within a period of three working days
from the date of submission of the application for GST registration -
A. Fresh application shall be submitted
B. Implies Rejection of registration
C. Deemed registration
D. Implies registration not required.
ANSWER: C

80. What are the taxes levied on intra-state supply of goods?

A. CGST
B. SGST
C. CGST and SGST
D. IGST
ANSWER: C

81. IGST is payable when the supply is ---

A. Interstate
B. Intra-state
C. Intra- UT
D. All of the above
ANSWER: A

82. Which form is to be used for registration?

A. Form GSTR-1 A
B. Form GSTR-1 B
C. Form GSTR-2
D. Form GST REG-01
ANSWER: D

83.Which one of following statements are correct?

A.Voluntary registration is not possible under GST.
B.Voluntarily registered person not liable to comply with all the provisions of the GST.
C.A person may get himself registered voluntarily and shall comply with all the
provisions of GST.
D. None of the above.
ANSWER: C

84. An E-commerce operator should get registered irrespective of his threshold limit?
A. Yes
B. No, required to register only if his aggregate turnover exceeds the threshold limit.
C. Yes, if he is located in North-western states.
 D. He is required to register if he is liable to collect tax at source and his aggregate
turnover exceeds the threshold limit.
ANSWER.A

85. What is the validity of the registration certificate?

A. One year
B. No validity
C. Valid till it is cancelled.
D. Five years.
ANSWER.C

86. Which of the following requires amendment in registration certificate?

A. Change of name of the registered person
B. Change in constitution of the registered person
C. Switching from composition scheme to normal scheme
D. All of the above
ANSWER: D

87. Is composition scheme available to people making inter-state supplies?

A. YES
B. NO
ANSWER: B

88. Goods and Service tax is applicable to:

A. Whole of India
B. Whole of India except Jammu and Kashmir
C. Whole of India, except Jammu and Kashmir and Union Territories of Dadra,
Nagar Haveli, Daman & Diu
D. Partially in India
ANSWER: A

89. How will the goods and services be classified under GST regime?
A. SAC/HSN CODE
B. HSN
C. SAC
D. None of the above
ANSWER: A

90. Registration under GST is not compulsory to-

A. Casual taxable person
B. Input service distributor
C. Non-resident taxable person
D. E-Commerce Operators
E. None of the above
ANSWER: E

91. A person getting registered online

A. Gets simultaneous registration under CGST Act and SGST Act or UTGST Act.
B. gets CGST registration only
 C. gets SGST registration only
D. does not get complete registration under GST
ANSWER: A

92. One of the following states does not fall under special category given under Art. 279A
of the Constitution
A. Himachal Pradesh
B. Uttarakhand
C. Chhattisgarh
D. Jammu & Kashmir
ANSWER: C

93. Person includes

A. Individual
B. HUF
C. LLP
D. All the above
ANSWER: D

94. Goods and service tax is a – tax system

A. Single point tax
B. Multipoint tax
C. Regressive tax
D. None of these
ANSWER: B

95. Weight age of vote for centre at GST council

A. 1/4th of total votes cast
B. 1/3rd of total votes cast
C. ½ of total votes cast
D. Only B
ANSWER: B

96. Weightage of States (combined) at GST council

A. 2/3rd of total votes cast
B. 1/3rd of total votes cast
C. 1/4th of total votes cast
D. None of the above
ANSWER: A

97. The council can take a decision only if there is

A. Three- fourth majority
B. Two third Majority
C. 60% majority
D. Simple majority
ANSWER: A

98. When does liability to pay taxes arise?

A. At the time of supply
B. At the time when goods reach supplier
 C. At the time of preparing invoice
D. Either of the above
ANSWER: A

99. Under GST law “Aggregate turnover” of a dealer is determined

A. State-wise
B. All India basis
C. Shop-wise
D. None of these
ANSWER: B

100. Compensation cess is levied on

A. Demerit goods
B. Luxury goods
C. Demerit goods and luxury goods
D. Essential goods
ANSWER: C

101. A person who occasionally undertakes transactions involving supply of goods or

services or both in the course or furtherance of business is
A. Business person
B. Casual taxable person
C. Composite dealer
D. Non-resident dealer
ANSWER: B

102. Where an E- commerce operator does not have physical presence in the taxable
territory
A. Tax need not be paid
B. Agent of the E- commerce operator shall be liable to pay tax
C. Tax must be paid in advance
D. IGST is not applicable
ANSWER: B

103. Which of these registers/ledgers are maintained online?

A. Tax liability register
B. Credit ledger
C. Cash ledger
D. All of them
ANSWER: D

104. What is deemed to be the date of deposit in the electronic cash ledger?
A. Date on which amount gets debited in the account of the taxable person
B. Date on which payment is initiated and approved by the taxable person
C. Date of credit to the account of the appropriate Government
D. Earliest of the above three dates
ANSWER: C

105. Balance in electronic credit ledger can be utilized against which liability?
A. Output tax payable
 B. Interest
C. Penalty
D. All of them
ANSWER: A

106. Balance in electronic credit ledger under IGST can be used against which liability?
A. IGST Liability only
B. IGST and CGST liability
C. IGST, CGST and SGST liability
D. None of them
ANSWER: C

107. Balance in electronic credit ledger under CGST can be used against which liability?
A. CGST Liability only
B. CGST and IGST liability
C. CGST, IGST and SGST liability
D. None of them
ANSWER: B

108. Balance in electronic credit ledger under SGST can be used against which liability?
A. SGST Liability only
B. SGST and IGST liability
C. SGST, IGST and CGST liability
D. None of them
ANSWER: B

109. What should the taxable person do if he pay’s the wrong tax i.e. IGST instead of
CGST/SGST or vice 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: A

110. What should the taxable person do if he pay’s tax under wrong GSTIN?
A. Pay again under right GSTIN and claim refund
B. Auto-adjustment
C. Adjustment on application/request
D. Raise ISD invoice and transfer
ANSWER: A

UNIT-II
1. ……. is the assessment done by the taxable person himself.
A. Self-Assessment
B. Provisional Assessment
C. Scrutiny of Returns
D. Best Judgement Assessment
ANSWER: A

2. Voluntary estimation of tax obligations is called

 A. Best judgement assessment
B. Provisional assessment
C. Self-assessment
D. Protective assessment
ANSWER: C

3. ……. is done by tax officer on request by taxable person when he is unable to

determine the value of goods and services and when taxpayer is unable to determine
GST rate applicable on goods and services.
A. Self-Assessment
B. Provisional Assessment
C. Scrutiny of Returns
D. Best Judgement Assessment
ANSWER: B

4. The proper officer shall pass an order, allowing payment of tax at such rate or on such
value as may be specified by him. This is called
A. Best judgement assessment
B. Provisional Assessment
C. Self-assessment
D. Protective assessment
ANSWER: B

5. The proper officer may select ……. If selected, he will scrutinize the return and the
related particulars to verify its correctness.
A. Self-Assessment
B. Provisional Assessment
C. Returns for Scrutiny
D. Best Judgement Assessment
ANSWER: C

6. ……. is one in which the proper officer assesses on the basis of his own reasoning
when the taxable person has not filed the return and when he has not registered even
when he is liable to do so.
A. Self-Assessment
B. Provisional Assessment
C. Returns for Scrutiny
D. Best Judgement Assessment
ANSWER: D

7. The proper officer may assess the tax liability on the basis of available information,
evidences which is called
A. Best judgement assessment
B. Provisional Assessment
C. Self-assessment
D. Protective Assessment
ANSWER: A

8. Assessment under section Sec. 62 is called

A. Self-assessment
 B. Provisional assessment
C. Best judgement assessment
D. Protective assessment
ANSWER: C

9. Best judgement assessment is carried out

A. under section 59
B. under section 60
C. under section 62
D. under section 64
ANSWER: C

10. The proper officer will assess the tax liability to the best of his judgement after serving
a show cause notice in the case of…. when a taxable person fails to obtain registration
even though he is liable to do so and when a taxable person’s registration is cancelled
even though he is liable to pay tax.
A. Self-Assessment
B. Provisional Assessment
C. Returns for Scrutiny
D. Assessment of unregistered persons
ANSWER: D

11. ……… is the assessment done by the proper officer on the basis of evidence of tax
liability when it is not possible to identify the taxable person for supply of goods.
A. Self-Assessment
B. Provisional Assessment
C. Returns for Scrutiny
D. Summary Assessment
ANSWER: D

12. Summary Assessment under section 64 is also called

A. Self-assessment
B. Provisional assessment
C. Best judgement assessment
D. Protective assessment
ANSWER: D

13. …….. is a commercial instrument issued by supplier of goods and services to a

recipient which identifies both the parties involved and lists as well as describes the
quantity sold and shows the delivery and payment terms.
A. Assessment
B. Scrutiny of Returns
C. Tax Invoice
D. COD
ANSWER: C

14. Under the GST tax regime, issuance of an invoice or bill of supply or debit note is ….
to avail input tax credit.
A. Mandatory
B. Optional sometimes
 C. Mandatory in some situations, optional in others
D. Optional Always
ANSWER: A

15. In case of supply of taxable service related to insurance or banking or financial

institutions, tax invoice should be generated within a span of….
A. 15 days
B. 20 days
C. 45 days
D. 30 days
ANSWER: C

16. In case of supply of taxable service other than those which are related to insurance or
banking or financial institutions, tax invoice should be generated within a span of….
A. 15 days
B. 20 days
C. 45 days
D. 30 days
ANSWER: D

17. A registered person may issue …... for all supplies at the close of each day if the
recipient is not a registered person, the recipient does not require such invoice each
time and the value of supply is less than Rs.200.
A. Consolidated Tax Invoice
B. Revised Tax Invoice
C. Bill of Supply
D. Receipt Voucher
ANSWER: A

18. A registered person may issue …... within one month from the date of issuance of
certificate of registration against those invoices that were already issued for the period
starting from the effective date of registeration till the date of issuance of GST
registeration certificate.
A. Consolidated Tax Invoice
B. Revised Tax Invoice
C. Bill of Supply
D. Receipt Voucher
ANSWER: B

19. …… is to be issued instead of tax invoice by a registered dealer when he supplies

exempt goods or services and opts for composition scheme.
A. Consolidated Tax Invoice
B. Revised Tax Invoice
C. Bill of Supply
D. Receipt Voucher
ANSWER: C

20. The time limit for issue of tax invoice in case of continuous supply of goods:
A. At the time of issue of statement of account where successive accounts are
Involved
 B. At the time of receipt of payment, if payments are received prior to issue of
accounts;
C. On a monthly basis;
D. As and when demanded by the recipient.
ANSWER: A

21. A ….. is a type of tax invoice to be issued by a registered person when he receives an
advance.
A. Consolidated Tax Invoice
B. Revised Tax Invoice
C. Bill of Supply
D. Receipt Voucher
ANSWER: C

22. When tax charged in invoice is actually less than taxable value in respect of such
supply, then …… is to be issued.
A. Consolidated Tax Invoice
B. Revised Tax Invoice
C. Debit Note
D. Credit Note
ANSWER: C

23. When tax charged in invoice is actually more than taxable value in respect of such
supply, then …… is to be issued.
A. Consolidated Tax Invoice
B. Revised Tax Invoice
C. Debit Note
D. Credit Note
ANSWER: D

24. When the goods supplied are returned by the recipient, then ….. is to be issued.
A. Debit Note
B. Credit Note
C. Consolidated Tax Invoice
D. Revised Tax Invoice
ANSWER: B

25. A credit note is issued by ________ and it is a document accepted for GST purposes:
A. Supplier, for reducing the tax/ taxable value;
B. Recipient, for reducing the tax/ taxable value;
C. Supplier, for increasing the tax/ taxable value;
D. Recipient, for increasing the tax/ taxable value.
ANSWER: A

26. Tax invoice is to be issued …… for supply of goods to the receiver if the supply of
goods involves movement of goods.
A. Before or at the time of removal
B. Within 6 months
C. Within 30 days
D. Within 45 days
 ANSWER: A

27. . The tax invoice should be issued _______the date of supply of service:
A. Within 30 days from
B. Within 1 month from
C. Within 15 days from
D. On
ANSWER: A

28. The responsibility to maintain the specified records is on:

A. The owner of the business
B. Operator of warehouse or godown
C. Every Transporter
D. All of the above
ANSWER: D

29. The various specified accounts to be maintained under GST include:

A. Input CGST and Output CGST
B. Input SGST and Output SGST
C. Input IGST and Output IGST
D. Electronic Cash Ledger, Electronic Credit Ledger and Electronic Tax Liability
Register
E. All of the above
ANSWER: E

30. Which among the following is not compulsory among the accounts and records
maintained by the GST dealers
A. Inward and outward supplies
B. Stock of goods
C. Input tax credit availed
D. Sundry Debtors
ANSWER: D

31. Every registered person should keep and maintain the prescribed books of accounts and
Records
A. At all the offices
B. at principal place of business
C. wherever requested by the GST officers
D. electronically
ANSWER: B

32. Accounts are required to be maintained in

A. Manual form
B. Electronic form
C. Manual and electronic form
D. Manual or electronic form
ANSWER: D

33. Maintaining books of accounts in electronic form is

A. Compulsory
 B. Optional
C. compulsory if turnover is more than 1 crore
D. compulsory if turnover is more than 10 crore
ANSWER: B

34. If a turnover during a financial year exceeds the prescribed limit, then accounts get
audited by
A. Chartered Accountant
B. Cost Accountant
C. Either (a) or (b)
D. All of the above
ANSWER: C

35. When turnover during a financial year exceeds --- the accounts and other records must
be audited by a chartered accountant or a cost accountant
A. 1 crore
B. 2 crore
C. 5 crore
D. 10 crore
ANSWER: B

36. Every registered person required to keep and maintain books of account or other
records
A. for a period of 2 years
B. for a period of 3 years
C. for a period of 5 years
D. for a period of 6 years
ANSWER: D

37. Every registered taxable person who is required to get his accounts audited under
section 35(5) shall furnish electronically
A. Annual return
B. Audited copy of annual accounts
C. Reconciliation statement reconciling the value of supplies declared in the return and
the financial statement
D. All of the above
ANSWER: D

38. ……. means processing or working on raw materials or semi-finished goods supplied
by and as per directions of the principal manufacturer, generally by small/medium scale
industries.
A. Manufacturing
B. Job Work
C. Outsourcing
D. Transformation
ANSWER: B

39. …… means any treatment or process undertaken by a person on goods belonging to

another registered person.
A. Manufacturing
 B. Job Work
C. Outsourcing
D. Transformation
ANSWER: B

40. All goods sent for job work must be accompanied by a …..
A. Challan
B. Affidavit
C. Notice
D. Warrant
ANSWER: A

41. The person doing the job work is known as …. and the one who sends the goods for job
work is known as …..
A. Job Worker, Prinicipal Manufacturer
B. Principal Manufacturer, Job Worker
C. Labourer, Outsourcer
D. Job Work, Outsourcer
ANSWER: A

42. The place of supply in case of movement of goods is…..

A. The location of the goods at the time when movement of goods terminates (ends)
for delivery to the recipient.
B. The prinicipal place of business of such third person and not the location of the
actual recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: A

43. RK (Delhi) supplies goods to XY in Gandhinagar, Gujarat at his place of business in

Gandhinagar. The place of supply in this case is…..
A. Delhi
B. Punjab
C. Gujarat
D. Rajasthan
ANSWER: C

44. When the goods are delivered to recipient (receiver) on the instruction of third person
then the place of supply is …..
A. The location of the goods at the time when movement of goods terminates (ends) for
delivery to the recipient.
B. The principal place of business of such third person and not the location of the actual
recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: B
45. RK (Delhi) supplies goods to XY in Gandhinagar on instruction of AB (Haryana). The
place of supply in this case is….
A. Delhi
B. Gandhinagar
C. Haryana
D. Punjab
ANSWER: C

46. The place of supply in case supply does not movement of goods is….
A. The location of the goods at the time when movement of goods terminates (ends)
for delivery to the recipient.
B. The principal place of business of such third person and not the location of the
actual recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: C

47. The place of business in case goods are assembled or installed at site is…..
A. The location of the goods at the time when movement of goods terminates (ends)
for delivery to the recipient.
B. The principal place of business of such third person and not the location of the
actual recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: C

48. RK (Delhi) installed a machine at place of business of XY in Gandhinagar. The place

of supply in this case is…..
A. The location of the goods at the time when movement of goods terminates (ends)
for delivery to the recipient.
B. The principal place of business of such third person and not the location of the
actual recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: D

49. The place of business in case where goods supplied are board or conveyance like
aircraft, train, vessel, motor vehicle, etc., then the place of supply is…
A. The location of the goods at the time when movement of goods terminates (ends) for
delivery to the recipient.
B. The principal place of business of such third person and not the location of the actual
recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: D
50. RK (Delhi) supplies food to Indigo Airlines to be provided to passengers in different
flights from Delhi. The place of supply in this case is…
A. The location of the goods at the time when movement of goods terminates (ends) for
delivery to the recipient.
B. The principal place of business of such third person and not the location of the actual
recipient.
C. The location of goods at the time of delivery to the recipient.
D. The place of installation or assembly of goods.
E. The location where goods have been taken on board.
ANSWER: D

51. The place of supply in cases where supply involves importing goods to India is…...
A. The location of the goods at the time when movement of goods terminates (ends) for
delivery to the recipient.
B. The principal place of business of such third person and not the location of the actual
recipient.
C. Where the importer is located.
D. The destination outside India from where goods are imported.
ANSWER: C

52. The place of supply in cases where supply involves exporting goods from outside India
is…...
A. The location of the goods at the time when movement of goods terminates (ends) for
delivery to the recipient.
B. The principal place of business of such third person and not the location of the actual
recipient.
C. Where the importer is located.
D. The destination outside India from where goods are imported.
ANSWER: C

53. RK(Delhi) imports goods from China. Determine the place of supply.
A. Delhi
B. China
C. USA
D. UK
ANSWER: A

54. RK(Delhi) exports goods from Delhi to USA. Determine the place of supply.
A. Delhi
B. China
C. USA
D. UK
ANSWER: C

55. Determine the place of supply when location of both supplier and receiver is in India
and services are being provided to a registered person.
A. The location of provider of goods
B. The location of the person receiving the services
C. The location of unregistered person if the address of the unregistered person is
available in the records of the supplier.
 D. The location of supplier of the services.
ANSWER: B

56. RK(Delhi) provides consultancy services to XY(Noida). XY is registered at Noida.

Determine the place of supply.
A. Delhi
B. Noida
C. Gurgaon
D. Ghaziabad
ANSWER: B

57. Determine the place of supply when location of both supplier and receiver is in India
and services are being provided to an unregistered person.
A. The location of provider of goods
B. The location of the person receiving the services
C. The location of unregistered person if the address of the unregistered person is
available in the records of the supplier.
D. The location of supplier of the services.
ANSWER: C

58. Determine the place of supply in case restraunt/personal grooming/fitness/ beauty and
health services are being provided.
A. The location of provider of goods
B. The location of the person receiving the services
C. Location where such services are actually performed
D. The location of supplier of the services.
ANSWER: C

59. RK(Delhi) a beauty services provider visits Mumbai and renders beauty services there.
Determine the place of supply.
A. Delhi
B. Mumbai
C. Gujarat
D. Jaipur
ANSWER: B

60. When does the liability to pay GST arise in case of supply of goods?
A. On raising of invoice
B. At the time of supply of goods
C. On receipt of payment
D. Earliest of a ,b or c
ANSWER: D

61. Determine the time of supply of goods in the following case: -

Date of issue of Invoice- 23rd May
Date on which invoice ought to have been issued as per Section 31- 20th May
Date on which payment is recorded in the books of accounts of the entity- 4th June
Date on which the payment is credited to the entity’s bank account- 10th June
A. 20 May
B. 23 May
C. 4 June
D. 10 June
ANSWER: A

62. What is date of receipt of payment?

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
ANSWER: C

63. What will be the time of supply in case voucher is identifiable at the time of issue of
voucher?
A. Date of issue of the voucher
B. Date of redemption of the voucher
ANSWER: A

64. What will be the time of supply in case voucher is not identifiable at the time of issue
of voucher?
A. Date of issue of the voucher
B. Date of redemption of the voucher
ANSWER: A

65. Pizza Hut provided vouchers to the employees of RK(Delhi) on 7 September to be

redeemed on the purchase of pizza. The vouchers can be used within a span of 2
months only. Employees of RK(Delhi) went for a treat to Pizza Hut and availed those
vouchers on 10 October. What will be time of supply in this case?
A. 7 September
B. 10 October
C. 7 November
D. 15 November
ANSWER: A

66. Amazon provides vouchers to customers on 7 September worth Rs.5,000 to be

redeemed on next purchase. The vouchers can be availed on purchase of any product
from Amazon within next 3 months. The customer orders the products on 15 October
from Amazon and utilizes those vouchers. What will be the time of supply in this case?
A. 7 September
B. 15 October
C. 7 December
D. 15 November
ANSWER: B

67. The time of supply shall be the earlier of---.

A. date of issue of invoice
B. date of receipt of payment
C. date on which payment is recorded in the books of accounts of the entity
D. either of the above
ANSWER: D
68. Tax paid on goods or services involved in supply is called
A. Output tax
B. Input tax
C. Composite tax
D. Reverse tax

A. Output tax
B. Input tax
C. Composite tax
D. Reverse tax
ANSWER: B

69. Tax collected at the time of supply of goods or services is called

A. Output tax
B. Input tax
C. Composite tax
D. Reverse tax
ANSWER: A

70. …… means at the time of paying tax on output, a registered person can claim taxes
already paid on inputs.
A. Input
B. Input Tax
C. Output Tax
D. Input Tax Credit
ANSWER: D

71. If the tax payable on output is 450 and taxes already paid on inputs is 200.The
registered person can claim input credit of …... and only the balance amount of …… is
to be paid in taxes.
A. 450, 200
B. 200, 450
C. 200, 250
D. 250, 200
ANSWER:C

72. Which of the following is/are the eligibility condition(s) for availing input tax credit?
A. The person availing credit must be in possession of a tax invoice or debit note
issued by a supplier registered under this Act, or such other tax paying documents
as may be prescribed.
B. The person has received the goods or services or both.
C. The supplier of goods must have deposited/paid the tax charged on the purchases to
the government in cash or via claiming input credit.
D. The person has filed GST returns.
E. All of the above are necessary conditions and must be fulfilled in order to avail
input tax credit.
ANSWER: E
73. When will be the businessman allowed to take input tax credit in the month of
December,2020 out of the following scenarios?
A. He has purchased goods which he intends to use in the course or furtherance of
business
B. He has bought goods for personal purpose.
C. He has bought goods, the supply of which is exempted from tax.
D. He has bought goods in instalment, the instalments are to be received in 3 lots,
December 2020, January 2021 and February 2021 respectively.
E. He has bought goods and depreciation has been claimed on tax component of
capital goods and plant and machinery.
ANSWER: A

74. Input tax for personal vehicles

A. can be claimed by any dealer
B. Blocked credit
C. Can be claimed by GST dealers
D. Can be claimed by any person.
ANSWER: B

75. Input tax credit in respect of food and beverages, outdoor catering, beauty treatment,
health services, cosmetic and plastic surgery belong to
A. can be claimed by any dealer
B. Blocked credit
C. Can be claimed by GST dealers
D. Can be claimed by any person.
ANSWER: B

76. Input tax credit in respect of food membership of a club, health and fitness centre
belong to
A. Exempt category
B. Blocked credit category
C. Composite tax category
D. None of these.
ANSWER: B

77. Input tax credit in respect of goods lost, stolen, destroyed, written off or disposed of by
way of gift or free samples; belong to
A. Exempt category
B. Blocked credit category
C. Composite tax category
D. None of these.
ANSWER: B

78. Where the goods are received in lots or instalments input tax credit can be claimed
A. upon reciept of first lot
B. upon receipt of the last lot
C. Any time at the option of the supplier
D. after full payment of price
ANSWER: B
79. Determine the amount of ITC available to Mr.XYZ for the month of October,2018 by
the following information: -
GST paid on Goods was Rs. 1,50,000 (out of three invoices, one was missing and GST
paid on that invoice was Rs.20,000).
A. 1,50,000
B. 20,000
C. 1,30,000
D. 0
ANSWER: C

80. Determine the amount of ITC available to XYZ for the month of October,2018 by the
following information: - Mr. XYZ has paid purchase tax of Rs. 25,000 on goods used
for business purpose and paid purchase tax of Rs. 10,000 for goods used for personal
purpose.
A. 15,000
B. 10,000
C. 25,000
D. 20,000
ANSWER: C

81. Determine the amount of ITC available to XYZ for the month of October,2018 by the
following information: - Mr. XYZ has paid purchase tax of Rs. 25,000 on goods used
for business purpose, Rs,10,000 for transportation of raw materials, Rs. 10,000 for
goods used for personal purpose, Rs.5,000 for snacks for consumption of employees
working in the factory and Rs.15,000 as miscellaneous expenses on providing facilities
to employees such as gym membership, on food and beverage, beauty treatment of
employees and employee travel benefits.
A. 25,000
B. 10,000
C. 5,000
D. 15,000
E. 35,000
ANSWER: E

82. 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
ANSWER. (C)

83. The value of supply of goods and services shall be the:-

A. Transaction value
B. MRP
C. Market Value
D. None of above
ANSWER: A

84. When the value of supply is wholly in terms of cash, then the value of supply shall be
…...
 A. Transaction Value of such supply
B. Open Market Value of such Supply
C. Value of goods which are of like kind and quality.
D. Value according to Rule31
E. None of the above
ANSWER: A

85. The value of supply should include

A. Any non-GST taxes, duties, cesses, fees charged by supplier separately
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: D

86. What among the following is included while calculating transaction value of goods?
A. Taxes, Cess, Duty, Fee & Charge
B. Supplies paid by receiver on behalf of supplier
C. Discount
D. Commission and Packaging Charges
E. Incidental Expenses such as installation charges
F. Interest or fee on delayed payments
ANSWER: C

87. What among the following is excluded while calculating transaction value of goods?
A. Taxes, Cess, Duty, Fee & Charge
B. Supplies paid by receiver on behalf of supplier
C. Discount
D. Commission and Packaging Charges
E. Incidental Expenses such as installation charges
F. Interest or fee on delayed payments
ANSWER: C

88. 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 related or price is not the sole consideration
C. It can never be rejected.
D. When the goods are sold at very low margins
ANSWER: B

89. What deductions are allowed from the transaction value?

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.
ANSWER: A

90. When the value of goods is not wholly in terms of money or cash, then the value of
goods in such a case would be….
A. Transaction Value of such supply
B. Open Market Value of such Supply
C. Value of goods which are of like kind and quality, if open market value of goods is not
available.
D. Value according to Rule31, i.e. 110% of cost of production
E. Option B, C, & D Except A
ANSWER: E

91. If the goods are supplied to related persons then how should the taxable person
ascertain the value 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. Identify the prices at which goods are sold by the unrelated person to his customer
D. Refer the Rules which will be prescribed for this purpose
ANSWER: D

92. Determine the value of supply in the following case: - Mr. X provides goods to Mr. Y
of Rs. 4 lakhs. Other expenses are as follows: - Municipal Tax= Rs. 20,000, Freight=
Rs. 23,000, Packaging Charges=Rs.4, 000, Commission= Rs.3, 000, Mr. X provides
discount at 1% of the list price.
A. 4,00,000
B. 4,50,000
C. 4,46,000
D. 4,45,500
ANSWER: C
(Calculations: - Price of goods = 4, 00,000
+ Municipal Tax = 20,000
+ Freight = 23,000
+ Packaging Charges = 4,000
+ Commission = 3,000
4, 50,000
-Discount (1% of price) 4,000
4, 45, 000

UNIT-III
1. What do you mean by a GST Return?
A. A document used by taxpayer for the payment of tax to government
B. A statement containing tax liability of a person prepared by the tax authorities given
by the tax authorities and given to the taxpayer
C. A form on which a taxpayer makes an annual statement of income used by tax
authorities to assess liability of tax
D. None of these
ANSWER: B

2. What is the late fee for failure to furnish details of outward or inward supplies, under
Section 37, 38,39 or 45?
A. Rs.100 for each day till such failure continues subject to maximum of Rs.5,000
B. Rs.100 for each day till such failure continues subject to maximum of Rs.10,000
C. Rs.500 for each day till such failure continues subject to maximum of Rs.5,000
D. Rs.500 for each day till such failure continues subject to maximum of Rs.10,000
 ANSWER: A

3. Returns of outward supply under GSTR-1 should be filed by….

A. 20th of subsequent month
B. 7th of subsequent month
C. 15th of subsequent month
D. 10th of subsequent month
ANSWER: D

4. Returns of inward supply under GSTR-2 should be filed by….

A. 20th of subsequent month
B. 7th of subsequent month
C. 15th of subsequent month
D. 10th of subsequent month
ANSWER: C

5. GSTR-2A is auto generated from

A. GSTR 3
B. GSTR 2
C. GSTR 2A
D. GSTR1
ANSWER: D

6. ---- gives the details of goods or services received by the recipients. It is auto populated
out of the GSTR -1 submitted by different suppliers.
A. GSTR 3
B. GSTR 3B
C. GSTR - 2A
D. GSTR 9
ANSWER: C

7. GSTR-2 gives the details of

A. all inward supplies
B. all outward supplies
C. Composite tax
D. TDS
ANSWER: A

8. GSTR - 2A is made available on the 11th of the next month for the
A. Recipients of supplies
B. Suppliers
C. GST officers
D. Customers
ANSWER: A

9. Details of Inward supplies shall include

A. Inward supplies of goods and services communicated in Form GSTR 2A
B. Inward supplies in respect of which tax is payable under reverse charge mechanism
C. Inward supplies of goods and services not declared by suppliers
D. All the above
ANSWER: D

10. GSTR-3 is auto-populated by 20th of the next month containing the details of
A. Outward supplies
B. Inward supplies
C. All outward as well as inward supplies
D. None of these
ANSWER: C

11. Return under composite scheme can be filed under ……

A. GSTR-2
B. GSTR-3
C. GSTR-4
D. GSTR-5
ANSWER: C

12. Returns to be filed by Non-Resident Taxpayer is

A. GSTR-3
B. GSTR-4
C. GSTR- 4A
D. GSTR-5
E. GSTR 9
ANSWER: D

13. GSTR-9 that is annual return should be filed by ….

A. 15 July
B. 15 August
C. 31 September
D. 31 December
ANSWER: D

14. The due date for furnishing the annual return for every financial year by every
registered taxable person other than ISD, non-resident tax payer, a person paying tax
under section 10, 51 or 52 and a casual taxable person is
A. 30th of September following the end of the financial year
B. 20th of October following the end of the financial year
C. 31st of December following the end of the financial year
D. 31st of May following the end of the financial year
ANSWER: C

15. GSTR-8 shall contain the details of all the supplies made by the
A. Input service distributors
B. E-Commerce seller
C. GST dealers
D. Composition dealers
ANSWER: B

16. GSTR-9 is also called

A. Annual Return
B. Monthly return
 C. Quarterly return
D. Half yearly return
ANSWER: A

17. Any modification / deletion done by the recipient to the details contained in Form
GSTR 2 shall be communicated to the supplier in:
A. Form GSTR 1A
B. Form GSTR 3A
C. Form GSTR 6A
D. Form GSTR 2A
ANSWER: Form GSTR 1A

18. A normal taxpayer is required to furnish …... under GST.

A. 2 monthly returns and one annual return
B. 3 monthly returns and one annual return
C. 4 monthly returns and one annual return
D. 1 monthly return and one annual return
ANSWER: A

19. The final return shall be filed by the registered taxable person within
A. 3 months of the date of cancellation
B. Date of order of cancellation
C. Later of the (a) or (b)
D. Earlier of the (a) or (b)
ANSWER: D

20. The First return shall be filed by every registered taxable person for the period from
A. The date on which he became liable for registration till the date of grant of
Registration
B. The date of registration to the last day of that month
C. The date on which he became liable for registration till the last day of that month
D. All of the above
ANSWER: A

21. Which of the following is true?

A. The Commissioner may extend the time limit for furnishing the details of outward
supplies by notification for valid reasons
B. The details of outward supplies shall include details of debit notes, credit notes and
revised invoices issued in relation to outward supplies
C. The details of outward supplies shall be submitted in Form GSTR-1 by all registered
taxable person other than ISD, non-resident tax payer and a person paying tax under
section 10, section 51 and section 52
D. All the above
ANSWER: All the above

22. Every registered taxable person shall be entitled to take credit of input tax in his return
and such input tax credit shall be credited to
A. Personal Ledger Account
B. Refund account
C. Electronic Cash Ledger
 D. Electronic Credit Ledger
ANSWER: D

23. TDS rate under GST is

A. 1%
B. 2%
C. 3%
D. 5%
ANSWER:A

24. GSTR 3, GSTR 4 and GSTR 6 filed can be rectified on the grounds of
A. Any omission or incorrect particulars
B. Omission or incorrect particulars found during Audit
C. Omission or incorrect particulars found during Scrutiny
D. Omission or incorrect particulars found during Inspection
ANSWER: A

25. TDS provision applicable only when the total value of supply, under a contract,
exceeds
A. Rs. 1,00,000
B. Rs. 1,50,000
C. Rs. 2,00,000
D. Rs. 2,50,000
ANSWER:D

26. TDS is not allowed in the case of

A. A department or State Government
B. Local authority
C. Governmental agencies
D. E-commerce operators
ANSWER: D

27. For the purpose of TDS, the value of supply shall be taken as the amount in the invoice
A. Excluding tax
B. Including tax
C. Before discount
D. None of these
ANSWER: A

28. On what value TDS needs to be deducted?

A. Contract value
B. Contract value excluding tax
C. Invoice value including tax
D. Invoice value excluding tax
ANSWER: D

29. What is the due date for payment of TDS?

A. Last day of the month to which payment relates
B. Within 10 days of the subsequent month
C. Within 20 days of the subsequent month
 D. Within 15 days of the subsequent month
ANSWER: B

30. Collection of Tax at Source is relevant in the case of

A. Government Departments
B. E-Commerce Operators
C. Any Gst Dealers
D. Contractors
ANSWER: B

31. TCS rate under GST is

A. 5%
B. 2%
C. 3%
D. 1%
ANSWER: D

32. E-commerce operators should submit return of TCS

A. Monthly
B. Every three months
C. Every year
D. Monthly and Annually
ANSWER: D

33. Initiation of action under the section of Inspection, Search, Seizure and Arrest is by a
Proper Officer not below the rank of …………..
A. Superintendent
B. Inspector
C. Joint Commissioner
D. Commissioner
ANSWER: C

34. Is it mandatory that ‘reasons to believe’ must exist before issuing authorization for
Inspection or Search and Seizure by the proper officer?
A. Yes
B. No
C. None of the above
ANSWER: A

35. Can the seized goods be released on provisional basis upon execution of a bond and
furnishing of security or on payment of applicable tax, interest and penalty?
A. Yes
B. No
C. At proper officer’s discretion
D. None of the above
ANSWER: A

36. All arrests should be made as per the provisions of ……………….

A. Code of Criminal Procedure, 1973
B. Civil Procedure Code
 C. Indian Penal Code
D. Foreign Exchange Management Act
ANSWER: A

36. When can the proper officer issue summons to call upon a person?
A. To give evidence
B. Produce a document
C. Produce any other thing in an enquiry
D. All of the above
ANSWER: D

37. What can be the consequences of non-appearance to summons?

A. Prosecution under section 172, 174, 175 and 193 of the Indian Penal Code as the
case may be
B. Arrest under Code of Criminal Procedure, 1973
C. Arrest under Foreign Exchange Management Act
D. None of the above
ANSWER: A

38. The …………………. Officer is empowered to assist the proper officer.

A. Police/Customs
B. Health
C. CBI
D. State Excise
ANSWER: A

39. Which are the places of business / premises which can be inspected by the proper
officer under this section?
A. Any places of business of a taxable person.
B. Any places of business of a taxable person engaged in the business of transporting
goods.
C. Any places of business of an owner or an operator of a warehouse or godown.
D. Any other place
E. All of the above
ANSWER: E

40. What is the maximum amount of demand for which the officer can issue an order under
Section 73 in case of other than fraud, misstatement or suppression?
A. Amount of tax + interest + penalty of 10% of tax
B. Amount of tax + interest + penalty of 10% of tax or 10,000/- whichever is higher
C. 10,000/-
D. Amount of tax + interest + 25% penalty
ANSWER: B

41. What is the maximum amount of demand for which the officer can issue an order under
Section 74 in case fraud, misstatement or suppression?
A. Amount of tax + interest + penalty of 15% of tax
B. Amount of tax + interest + penalty of 25% of tax
C. Amount of tax + interest + penalty of 50% of tax
D. Amount of tax + interest + penalty of 100% of tax
 ANSWER: D

42. What happens if a taxable person has paid CGST & SGST or, as the case may be,
CGST & UTGST (in SGST / UTGST Act) on a transaction considered by him to be an
Intra-state supply but which is subsequently held to be an inter-state supply?
A. Seek refund
B. Adjust against future liability
C. Take re-credit
D. File a suit for recovery
ANSWER: A

43. Recovery of amount payable by a defaulter can be made from:

A. Customer
B. Bank
C. Post Office
D. All of the above
ANSWER: D
44. Ans. (d) All of the above

45. What is the meaning of applicant under advance ruling?

A. Person registered under the Act.
B. Person desirous of obtaining registration under the Act.
C. Tourist as defined under section 15 of IGST Act, 2017.
D. (a) or (b).
ANSWER: D

46. Where shall the Advance Ruling Authority be located?

A. The Authority shall be located in each State / Union Territory.
B. The Authority shall be located in Centre.
C. The Authority shall be located in both Centre & State.
D. None of the above.
ANSWER: A

47. The Advance Ruling Authority shall comprise of

A. One member from amongst the officers of Central tax.
B. One member from amongst the officers of State tax or Union Territory tax as the case
may be.
C. (a) & (b)
D. None of the above
ANSWER: C

48. The Appellant Authority for Advance Ruling shall comprise of

A. Chief Commissioner of Central tax as designated by the board
B. Commissioner of State tax or union Territory tax, as the case may be, having
jurisdiction over the applicant
C. (a) & (b)
D. None of the above
ANSWER: C

49. Who shall make an application for advance ruling?

A. Applicant
B. Department
C. Appellate Authority
D. None of the above
ANSWER: A

50. Who shall make an application for Appeals and Revision?

A. Applicant
B. Department
C. Appellate Authority
D. Both (a) and (b) can make such a request
ANSWER: D

51. What procedure should follow if the members of the Authority differ on any question
on which the advance ruling is sought?
A. The members of the authority shall state the point or points on which they differ
and make a reference to the Appellate Authority for hearing and decision on such
question.
B. The Authority will not take any decision and reject the application
C. The Authority will remand the case to jurisdictional officer
D. None of the above
ANSWER: A

52. . Appeal before the appellate authority can be filed within how many days after
communication of advance ruling?
A. 30 days
B. 60 days
C. 90 days
D. 120 days
ANSWER: A

53. Within how many days the Authority shall pronounce its decision on advance ruling
from the date of receipt of application?
A. 30 days
B. 60 days
C. 90 days
D. 120 days
ANSWER: C

54. Whether the ruling pronounced under Section 98 of CGST Act, 2017 have prospective
or retrospective effect?
A. Prospective effect
B. Retrospective effect
C. Prospective/Retrospective effect based on case to case
ANSWER: A

55. When should the opportunity of being heard be given to applicant or the appellant for
rectification of advance ruling?
A. If the rectification has the effect of enhancing the tax liability.
B. If the rectification has the effect of reducing the amount of admissible input tax credit.
 C. (a) or (b)
D. None of the above
ANSWER: C

56. The Advance Ruling pronounced by the Appellate Authority shall be binding on
A. The applicant who sought the advance ruling.
B. The jurisdictional officer in respect of the applicant
C. (a) and (b)
D. None of the above
ANSWER: C

57. When can the Authority declare the advance ruling pronounced as void?
A. If ruling is obtained by suppression of material facts
B. If the applicant is in the business of supplies on which clarification has been sought.
C. If the applicant does not engage in the business of supplies after 6 months of
obtaining the ruling.
D. If a Supreme Court judgement is pronounced on the same issue and the
judgement is exactly the opposite of the clarification issued under the ruling
ANSWER: A

Link for MCQs on Topic-Appeals and Revision:-

CA Final paper 8 indirect tax laws {goods & services tax} (castudyweb.com)

UNIT-IV
1. Powers to declare certain activities/transactions as neither supply of goods nor of
services lies in
A. Schedule I
B. Schedule III
C. Schedule II
D. Schedule IV
ANSWER: B

2. A service by an employee to the employer in the course of or in relation to his

employment is….
A. Supply of Goods
B. Supply of Services
C. Supply of Both goods and services
D. Not supply
ANSWER: D

3. Services by any court or Tribunal established under any law is:-

A. Supply of Goods
B. Supply of Services
C. Supply of Both goods and services
D. Not supply
ANSWER: D

4. The functions performed by the Members of Parliament, Members of State Legislature

are
A. Supply of Goods
B. Supply of Services
C. Supply of Both goods and services
D. Not supply
ANSWER: D

5. Duties performed by any person in the Constitutional capacity are

A. Supply of Goods
B. Supply of Services
C. Supply of Both goods and services
D. Not supply
ANSWER: D

6. Services of funeral, crematorium or mortuary including transportation of the deceased

is
A. Supply of Goods
B. Supply of Services
C. Supply of Both goods and services
D. Not supply
ANSWER: D

7. Activities undertaken by the Government, or any local authority in which they are
engaged as public authorities are
A. Supply of Goods
B. Supply of Services
C. Supply of Both goods and services
D. Not supply
ANSWER: D

8. Gifts not exceeding --- in a year by an employer to employee shall not be treated as
supply.
A. Rs. 5,000
B. Rs. 10,000
C. Rs. 50,000
D. Rs. 1,00,000
ANSWER: C

9. Composition scheme is available only for

A. Inter-state supplies
B. B2B supplies
C. Intra-state supplies
D. E-commerce operators
ANSWER: C

10. If the person has inter-state transactions, composition scheme is:

A. Not allowed
B. Optional
C. Compulsory
D. None of the above
ANSWER: A
11. Persons eligible for composition levy include:
A. A casual taxable person
B. A non-resident taxable person
C. Person who has inter-state trade
D. Person with turnover of less than Rs. 1 crore
ANSWER: D

12. Refund of GST is not applicable in the case of

A. Imports
B. Notified Multilateral Financial Institution
C. Embassy of foreign countries
D. Zero rated supplies
ANSWER: A

13. A situation where the rate of tax on input is more than rate of tax on output is
A. Inverted duty structure
B. Excess input tax credit
C. Compensation Cess
D. Refund
ANSWER: A

14. GST paid for supplies exported from the country is

A. Refunded to the exporter
B. Refunded only if exported from SEZ
C. Not refunded
D. Refunded to the state from which export happens
ANSWER: A

15. Refund application is to be filed before the expiry of ____________ from the relevant
date.
A. Two years
B. One year
C. 180 days
D. 260 days
ANSWER: A

16. A goods and service tax practitioner can undertake the following activities if authorized
by the taxable person
A. Furnish details inward and outward supplies
B. Furnish monthly / quarterly return
C. Furnish Annual and Final return
D. All of the above
ANSWER: D

17. Who is authorised to undertake the audit of a registered person?

A. The Commissioner of CGST/Commissioner of SGST
B. Any officer authorised by Commissioner of CGST/Commissioner of SGST by way of
a general or a specific order.
C. Only (a)
D. (a) or (b)
 ANSWER: D

18. The tax authorities may conduct audit u/s 65 at:

A. the place of business of the registered person
B. the place of residence of the registered person.
C. the office of the tax authorities.
D. (a) or (c)
ANSWER: D

19. Prior to the conduct of audit u/s 65 the registered person shall be informed, by way of a
Notice, sufficiently in advance:
A. Not less than fifteen working days.
B. Not less than thirty working days.
C. Not less than ten working days.
D. No prior intimation required.
ANSWER: A

20. The time limit for completion of the audit u/s 65(1) is:
A. Six months from the date of commencement of audit.
B. Three months from the date of commencement of audit.
C. One year from the date of commencement of audit.
D. None of the above.
ANSWER: B

21. Where the [Commissioner] is satisfied that audit in respect of such taxable person
cannot be completed within three months from the date of commencement of audit the
time limit can be extended:
A. By a further not exceeding six months.
B. By a further period not exceeding six months.
C. By a further period not exceeding six months.
D. No extension of time limit is permissible
ANSWER: A
.
22. During the course of audit, the authorised officer may require the registered person:
A. to afford him the necessary facility to verify the books of account or other
Documents as he may require.
B. to furnish such information as he may require and render assistance for timely
completion of the audit.
C. (a) and/or (b)
D. Only (a)
ANSWER: C

23. Special audit u/s 66 can be directed at any stage of scrutiny, enquiry, investigation or
any other proceedings having regard to nature and complexity of the case if, any officer
not below the rank of [Assistant Commissioner].
A. is of the opinion that the value has not been correctly declared
B. the credit availed is not within the normal limits.
C. assessee does no co-operate
D. (a) or (b)
ANSWER: D
24. Who can direct the registered person to get his records audited u/s 66?
A. An officer not below the rank of [Assistant Commissioner], with the prior approval
of the [Commissioner]
B. An officer not below the rank of [Joint/Additional], with the prior approval of the
[Chief Commissioner]
C. An officer not below the rank of [Chief Commissioner], with the prior approval of
the [Principle Chief Commissioner].
D. None of the above.
ANSWER: A

25. Who is authorised to conduct the audit including books of account u/s 66?
A. Chartered Accountant as may be nominated by the [Commissioner].
B. Cost Accountant as may be nominated by the [Commissioner].
C. (c) (a) or (b)
D. Any officer as may be nominated by the [Additional Director].
ANSWER: C

26. The expenses of audit u/s 66 is determined and paid by:

A. the [Commissioner].
B. the [Deputy/ Assistant Commissioner] with prior approval of the Commissioner.
C. the registered person.
D. Any of the above.
ANSWER: A