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CA Intermediate
Goods and Service Tax
Mock Test Paper-10
Time Allowed: 1 Hour Maximum Marks: 40
Q. Questions Marks
No.
Part-A- MCQ
1. Mr Ved is engaged in the supply of tiles and marbles in the State of Telangana. He is
not registered under GST. He commenced his business in July month. He availed
godown construction services for business from his brother-in-law who was
dependent on him. He also availed professional consultancy services for business
from his son who was a Professional residing in London and his son was not
dependent on him. Mr Ved did not pay anything for both services as both of them
were his relatives/family members respectively. Based on the advice of his son, Mr
Ved made the supply of tiles within his State only. He reached a turnover of ₹ 7 lakhs
as of 31st October. However, he planned to expand his business to other States since
he received decent orders from other States also. In December, he received a
consignment of tiles from Rajasthan through Prompt Carriers, a goods transport
agency based in the State of Rajasthan. Goods were dispatched by the supplier on a
‘to-pay’ basis for freight. Freight charges were ₹ 50,000 and the said GTA pays GST
@ 12%. Mr Ved paid the invoice amount in December itself. This was an inter-State
transaction. During January, Mr Ved made his first inter-State supply to Tamil Nādu
on 4th January. His turnover before making such a supply was ₹ 15 lakh. The value
of such inter-state supply was ₹ 4,50,000, exclusive of taxes. Payment for the said
inter-State supply was received on 28th February. The invoice was raised by Mr Ved
on 25th January. All the figures given above are exclusive of taxes wherever
applicable. Based on the information given above, choose the most appropriate
answer for the following questions:
i) In respect of services availed by Mr Ved, which of the following is a correct 1
statement?
a) Godown construction service availed from his brother-in-law free of cost is
considered as a deemed supply
b) Professional service availed from his son free of cost is considered as a
deemed supply
c) Neither of the services is a deemed supply
d) Both services are deemed supply
ii) Upto which limit of aggregate turnover Mr Ved can continue to supply goods 1
without registration within his state if he does not procure any goods/services
on which tax is payable under the reverse charge mechanism?
a) ₹ 20 lakhs
b) ₹ 40 lakhs
c) ₹ 10 lakhs
d) ₹ 150 lakhs
iii) What is the tax liability for the freight charges? 1
a) ₹ 6000 of IGST under reverse charge
b) ₹ 6000 of IGST under forward charge
c) ₹3000 each under CGST and SGST under reverse charge
d) Nil as it is exempt

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iv) Which of the following statement is correct concerning the liability of Mr Ved to 1
register under GST?
a) Mr Ved is liable to register in December for receipt of GTA services.
b) Mr Ved is liable to register in January for effecting the inter-State outward
supply of goods.
c) Mr Ved is liable to register only when his turnover exceeds the threshold
limit irrespective of whether he is in receiving any GTA services or is
affecting inter-State outward supply.
d) Mr Ved is not required to register as it is his first year of business.
v) What is the time of supply of goods made by Mr Ved during January? 1
a) 4th January
b) 25th January
c) 3 rd February
d) 28th February
2. Which of the following persons can opt for the composition scheme under sub- 1
section (1) and (2) of section 10 of the CGST Act, 2017, in the State of Delhi?
1) A Registered person whose aggregate turnover in the preceding financial year
did not exceed ₹ 75 lakhs.
2) A Registered person whose aggregate turnover in the preceding financial year
did not exceed ₹ 1.5 crores.
3) A person engaged in the manufacture of pan masala, tobacco and manufactured
tobacco substitutes.
4) A person engaged in the manufacture of ice cream, or other edible ice, whether
or not containing cocoa.
5) A person engaged exclusively in providing restaurant service.
6) A person engaged exclusively in the supply of medicines.
a) 1), 2), 3), 5)
b) 1), 2), 5), 6)
c) 2), 3), 4), 5)
d) 3), 4), 5), 6)
3. State which of the following statements is incorrect: 1
i) An agent, supplying taxable goods on behalf of a principal, where the invoice is
issued in the name of the principal, is required to get compulsorily registered
under GST.
ii) Persons who are required to deduct tax under section 51 of the CGST Act, 2017,
whether or not separately registered under CGST Act, are compulsorily required
to get registered under GST without any threshold limit.
iii) Every person supplying online information and database access or retrieval
services from a place outside India to a registered person in India is
compulsorily required to get registered under GST without any threshold limit.
iv) Persons who supply services, other than supplies specified under sub-section
(5) of section 9 of the CGST Act, 2017, through such electronic commerce
operator who is required to collect tax at source under section 52 of the CGST
Act, 2017, are compulsorily required to get registered under GST without any
threshold limit.
Choose the most appropriate option.
a) i), ii)
b) iii), iv)
c) i), iii), iv)
d) i), ii), iii) and iv)

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4. Banke Bihari (Pedewala) owns a famous sweets shop located and registered under 1
GST in Mathura, Uttar Pradesh. He received an order for 200 kg of sweets on 2nd
May from Ghoomghoom Travels (P) Ltd., located in the same locality of Mathura and
registered under GST, for a total consideration of ₹ 1,00,000. Complete order of
sweets was delivered to Ghoomghoom Travels (P) Ltd. on 5th May but without an
invoice, as an accountant of Mr Banke Bihari was on leave on that day. However, the
invoice was raised for the same on 6th May, when the accountant joined the office
after leaves. Payment in full was made on 7th May.
Determine the time of supply of goods in this case.
a) 2nd May
b) 5th May
c) 6th May
d) 7th May
5. Which of the following transactions does not qualify as supply under GST law? 1
a) Disposal of a car without consideration and the supplier has not claimed input
tax credit on a such car.
b) A principal makes supplies to his agent who is also registered under GST and is
situated within the same State and the invoice for further supply is issued by the
agent in his name.
c) Head Office makes a supply of services to its branch outside the State.
d) A person imports services without consideration for his business from his elder
son living outside India.
6. Which of the following statements is false? 1
a) ITC on works contracts services availed by a software company for the
construction of its office, is blocked.
b) ITC on works contract services availed by a manufacturing company for the
construction of pipelines to be laid outside its factory, is blocked.
c) ITC on goods and/or services used by an automobile company for the
construction of a foundation on which a machinery (to be used in the production
process) is to be mounted permanently, is allowed.
d) ITC on works contract services availed by a consulting firm for repair of its office
building is blocked provided the company has booked such expenditure in the
profit and loss account.
7. GST Council is the ______________constituted under _______________ for making 1
recommendations on various issues relating to policy making, formulation of
principles and implementation of policies under the Goods and Services Tax regime
having its Headquarters located at ________________
a) Apex Body; Article 279A; Delhi
b) Board; Article 279A(i); NCR
c) Committee of Ministers; Article 279A; Noida
d) Apex Body; Article 286; Chennai
8. Cable operator - Sakharam has agreed with the Cable operator, Aatmaram that 1
Sakharam will not provide cable connections in the specified areas where
Aatmaram is providing the connections. This agreement constitutes a:
a) Supply of service
b) Supply of goods
c) Not a supply
d) None of the above

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Part-B-Descriptive Questions
Question 1 is compulsory attempt any 2 from the remaining 3
1. Mahadev Pvt. Ltd., a registered supplier of goods and services has furnished the 8
following information for February 2023:
S.No. Particulars ₹
i) Intra-State supply of taxable goods including ₹ 1,00,000 4,00,000
received as an advance in January, the invoice for the
entire sale value is issued on 15th February
ii) Purchase of goods from a composition dealer, registered 5,50,000
in Kolkata
iii) Services provided by way of labour contracts for 1,00,000
repairing a single residential unit otherwise than as a
part of a residential complex (It is an intra-State
transaction)
iv) Membership of a club availed for employees working in 1,75,000
the factory (It is an intra-State transaction)
v) Goods transport services received from a GTA. GST is 2,00,000
payable @12% (It is an inter-State transaction)
vi) Inter-State services are provided by way of training in 10,000
recreational activities relating to sports
vii) Inter-State security services are provided to ABC higher 15,000
secondary school for their annual day function organised
in Fintex Auditorium outside the School campus
viii) Inputs are to be received in 4 lots, out of which 2nd lot 40,000
was received during the month

The company has the following ITCs with it at the beginning of the tax period:
Particulars ₹
CGST 57,000
SGST Nil
IGST 50,000

Note:
i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.
ii) Both inward and outward supplies are exclusive of taxes, wherever applicable.
iii) All the conditions necessary for availing of the ITC have been fulfilled.
iv) The turnover of Mahadev Pvt. Ltd. was ₹ 2.5 crores in the previous financial year.

Compute the minimum GST, payable in cash, by Mahadev Pvt. Ltd. for February.
Make suitable assumptions as required.
2. a) 5
Mr Vijay has a registered repair centre where electronic goods are
repaired/serviced. His repair centre is located in the State of Rajasthan and he is not
engaged in making any inter-State supply of services. His aggregate turnover in the
preceding financial year (FY) is ₹ 45 lakh.
Concerning the provisions of the CGST Act, 2017, examine whether Mr Vijay can opt
for the composition scheme under sections 10(1) &10(2) in the current financial
year. Or whether he is eligible to avail benefit of the composition scheme under
section 10(2A)? Considering the option of payment of tax available to Mr Vijay,
compute the amount of tax payable by him assuming that his aggregate turnover in
the current financial year is ₹ 35 lakhs.
Will your answer be different if Mr Vijay procures a few items required for providing
repair services from the neighbouring State of Madhya Pradesh?

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b) 5
In the case of transactions at (i) and (ii) below, determine whether the amounts
received are liable to GST. Briefly explain the applicable statutory provisions in
support of your conclusions.
i) ABC Ltd., a registered bank, recovered cheque discounting charges of ₹ 5,250
from a customer, C & Co.
ii) T Ltd., a dealer in air-conditioners, supplies each unit at a list price of ₹ 30,000
per unit. He also has an EMI scheme where the customer can take delivery of the
air conditioner on a monthly EMI of ₹ 10,500 payable in three instalments. T Ltd.
charges ₹ 600 extra for any delay in payment of monthly instalments and this
amount was recovered from customer Venkat for the delay in payment of his 2
nd instalment.
3. a) 5
Vividh Pvt. Ltd. is a supplier of goods and services in Bangalore, registered in the
State of Karnataka, having a turnover of ₹ 200 lakhs in the last financial year. It has
furnished the following information for June.
Particulars Amount (₹)
excluding
GST

Services provided by way of a labour contract for repairing a single 13,00,000

residential unit otherwise than as a part of a residential complex

Fee received from students of a competitive exam training 5,40,000

academy run by Vividh Pvt. Ltd.
4 buses each with a seating capacity of 72 passengers given on hire 6,00,000
to the State Transport Undertaking
Rent paid to Local Municipal Corporation for premises taken on 2,50,000
rent for competitive exam training academy
Goods transport services received from GTA, tax is payable on 1,80,000
such services @ 12%

Compute the gross GST liability (ignoring ITC provisions) of Vividh Pvt. Ltd. for June
assuming that the above amounts are exclusive of GST and the rate of GST, wherever
applicable, is 18% unless otherwise mentioned.
b) 5
Rajesh Dynamics, having its head office in Chennai, Tamil Nadu carries on the
following activities with respective turnovers in a financial year:
Particulars ₹
Supply of petrol at Chennai, Tamil Nadu 18,00,000
Value of inward supplies on which tax is payable on a reverse 9,00,000
charge basis
Supply of transformer oil at Chennai, Tamil Nadu 2,00,000
Value of branch transfer from Chennai, Tamil Nadu to Bengaluru, 1,50,000
Karnataka without payment of consideration
Value of taxable supplies at Manipur branch 11,50,000

It argues that it does not have a taxable turnover crossing the threshold limit of ₹
40,00,000 either in Chennai, Tamil Nadu or Bengaluru, Karnataka and including
turnover at the Manipur branch. Further, it believes that the determination of
aggregate turnover is not required to obtain registration but is required for
determining the eligibility for composition levy.

Determine the aggregate turnover of Rajesh Dynamics. You are also required to
review the technical veracity of the arguments of Rajesh Dynamics

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4. a) 5
Jai, a registered supplier, runs a general store in Ludhiana, Punjab. Some of the goods
sold by him are exempt whereas some are taxable. You are required to advise him
on the following issues:
i) Whether Jai is required to issue a tax invoice in all cases, even if he is selling the
goods to the end consumers?
ii) Jai sells some exempted as well as taxable goods valuing ₹ 5,000 to a school
student. Is he mandatorily required to issue two separate GST documents?
iii) Jai wishes to know whether it’s necessary to show tax amounts separately in the
tax invoices issued to the customers. You are required to advise him
b) Miss Nitya has the following balances in her Electronic Cash Ledger as of 28th 5
February as per the GST portal.
Major Heads Minor Heads Amount (₹)
CGST Tax 40,000
Interest 1,000
Penalty 800
SGST Tax 80,000
Interest 400
Penalty 1,200
Fees 2,000
IGST Tax 45,000
Interest 200
Penalty Nil

She furnishes returns on monthly basis. Her tax liability for February for CGST and
SGST was ₹ 75,000 each. She failed to pay the tax and contacted you as legal advisor
on 12th April to advise her as to how much amount of tax or interest she is required
to pay, if any, by utilizing the available balance to the maximum extent possible as
per GST Laws. She wants to pay the tax on 20th April.

Other information:
i) Date of collection of GST was 18th February.
ii) No other transaction after this up to 20th April.
iii) Ignore the penalty and late fee for this transaction.
iv) No other balance is available.
You are required to advise her regarding legal provisions with brief notes on the
legal provisions applicable.

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