VG STUDY HUB GST MCQ’s – 6 7703880232

TAX VACCINE - LAST DOSE “MCQ’s Series”

Session – 6 & 7 ( GST MIX MCQ’s)
1. The persons making inter-State supplies goods except handicraft goods from
Madhya Pradesh is compulsorily required to get registered under GST,
(a) if his all India based aggregate turnover exceeds ` 20 lakh in a financial year
(b) if his all India based aggregate turnover exceeds ` 10 lakh in a financial year
(c) irrespective of the amount of aggregate turnover in a financial year
(d) in case of making inter-State supply of taxable goods, irrespective of the
amount of aggregate turnover in a financial year

2. Input tax credit is not available in respect of .

(i) services on which tax has been paid under composition levy

(ii) free samples

(iii) goods used for personal consumption

(a) (i)

(b) (i) and (ii)

(c) (ii) and (iii)

(d) (i), (ii) and (iii)

3. GST is not payable by recipient of services in the following cases:-

(i) Services provided by way of sponsorship to ABC Ltd.
(ii) Services supplied by a director of Galaxy Ltd. to Mr. Krishna.
(iii) Services by Department of Posts by way of speed post to MNOLtd.
(iv) Services supplied by a recovering agent to SNSP Bank

(a) (i) & (iii)

(b) (i) & (iv)

(c) (ii) & (iii)

(d) (ii) & (iv)

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VG STUDY HUB GST MCQ’s – 6 7703880232

4. Mr. X, a casual taxable person, is not involved in making taxable supplies of

notified handicraft goods. Which of the following statements is true for Mr. X - a
casual taxable person?
(a) Mr. X is not required to take registration under GST under any
circumstances.
(b) Mr. X is required to get registration under GST if the aggregateturnover in
a financial year exceeds ` 20 lakh.

(c) Mr. X is required to get registration under GST if the aggregateturnover in

a financial year exceeds ` 40 lakh.

(d) Mr. X has to compulsorily get registered under GST irrespectiveof the
threshold limit.
5. The registration certificate granted to non-resident taxable person is valid for
_____days from the effective date of registration or period specified in registration
application, whichever is earlier.
(a) 30

(b) 60

(c) 90

(d) 120

6. Balance in electronic credit ledger can be utilized against payment of

________________.

(a) output tax payable

(b) interest

(c) penalty

(d) late fees

6. Within how many days a Non – Resi dent 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) None of the above

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VG STUDY HUB GST MCQ’s – 6 7703880232

7. Kalim & Associates made an application for cancellation of GST registration in the
month of March due to closure of its business. Its application for cancellation of GST
registration was approved on 14th September. In the given case, Kalim & Associates
is:
(a) required to file Final Return on or before 13th December

(b) not required to file Final Return

(c) required to file Final Return on or before 30th September

(d) required to file Final Return on or before 14th December

8. Xylo & Co. has three branches, in Jalandhar, Amritsar and Ludhiana, inthe State of
Punjab. Amritsar and Ludhiana branches are engaged in supply of garments and
Jalandhar branch engaged in supply of shoes. Which of the following options is/are
legally available for registration to Xylo & Co.?
(i) Xylo & Co. can obtain single registration for Punjab declaring any one of
the branches as principal place of business and other two branches as
additional place of business.
(ii) Xylo & Co. can obtain separate GST registration for each of the three
branches - Amristar, Jalandhar and Ludhiana.
(iii) Xylo & Co. can obtain one GST registration for shoe business (Jalandhar
branch) and another GST registration which is common for garments
business (Amritsar and Ludhiana).
(a) ii

(b) Either i, ii or iii

(c) Either i or ii

(d) Either ii or iii

9. What is the validity of the registration certificate?

(a) One year

(b) Two years

(c) Valid till it is cancelled

(d) Five years.

10. In case of Goods Transport Agency (GTA) services, tax is to be paidunder

forward charge if:
(a) GST is payable @ 12%

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VG STUDY HUB GST MCQ’s – 6 7703880232

(b) GST is payable @ 5% and a factory registered under theFactories Act,

1948 is the recipient of GTA service.
(c) An unregistered individual end customer is the recipient of GTAservice.
(d) A registered casual taxable person is the recipient of GTAservice.

11. Which of the following activities is a supply of services?

(i) Transfer of right in goods/ undivided share in goods withouttransfer of title

in goods
(ii) Transfer of title in goods

(iii) Transfer of title in goods under an agreement which stipulates that

property shall pass at a future date upon payment of full consideration.

(a) (i)

(b) (iii)

(c) (i) and (iii)

(d) (i), (ii) and (iii)

12. Rama Ltd. has provided following information for the month of September:
Intra-State outward supply ` 8,00,000/-
Inter-State exempt outward supply 5,00,000/-
Turnover of exported goods ` 10,00,000/-
Payment made for availing GTA services ` 80,000/-
Calculate the aggregate turnover of Rama Ltd.
(a) ` 8,00,000/-

(b) ` 23,80,000/-

(c) ` 23,00,000/-

(d) ` 18,00,000/-

13. An exempt supply includes-

(i) Supply of goods or services or both which attracts Nil rate of tax
(ii) Non-taxable supply
(iii) Supply of goods or services or both which are wholly exempt from tax under
section 11 of the CGST Act or under section 6 of IGST Act

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(a) (i)
(b) (i) and (ii)

(c) (ii) and (iii)

(d) (i), (ii) and (iii)

14. Which of the following statements are correct?

(i) Revocation of cancellation of registration under CGST/SGST Act shall be

deemed to be a revocation of cancellation of registration under
SGST/CGST Act.
(ii) Cancellation of registration under CGST/SGST Act shall be deemed to be a
cancellation of registration under SGST/CGSTAct.
(iii) Revocation of cancellation of registration under CGST/SGST Act shall not be
deemed to be a revocation of cancellation of registration under SGST/CGST
Act.
(iv) Cancellation of registration under CGST/SGST Act shall not be deemed to be
a cancellation of registration under SGST/CGSTAct.
(a) (i) and (ii)
(b) (i) and (iv)
(c) (ii) and (iii)

(d) (iii) and (iv)

15. For banking companies using inputs and input services partly for taxable supplies
and partly for exempt supplies, which of thestatement is true?
(a) ITC shall be compulsorily restricted to credit attributable totaxable
supplies including zero rated supplies
(b) 50% of eligible ITC on inputs, capital goods, and input serviceshall be
mandatorily taken in a month and the rest shall lapse.
(c) Banking company can choose to exercise either option (a) or option (b)
(d) ITC shall be compulsorily restricted to credit attributable totaxable
supplies excluding zero rated supplies.
16. A supplier takes deduction of depreciation on the GST component of the cost of
capital goods as per Income- tax Act, 1961. The supplier can-

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VG STUDY HUB GST MCQ’s – 6 7703880232

(a) avail only 50% of the said tax component as ITC

(b) not avail ITC on the said tax component

(c) avail 100% ITC of the said tax component

(d) avail only 25% of the said tax component as ITC

17. Which of the following services received, in the course or furtherance of

business, without consideration amount to supply?
(i) Import of services by a person in India from his son well-settledin USA
(ii) Import of services by a person in India from his brother well-settled in
Germany
(iii) Import of services by a person in India from his brother (whollydependent
on such person in India) in France
(iv) Import of services by a person in India from his daughter(wholly
dependent on such person in India) in Russia
(a) i, iii and iv

(b) ii, iii and iv

(c) ii and iii

(d) i and ii

18. Which of the following persons is not eligible for composition levy under sub-
sections (1) and (2) of the CGST Act, 2017 even though their aggregate
turnover does not exceed ` 1.5 crore in preceding FY,in Uttar Pradesh?
(a) A person supplying restaurant services

(b) A person supplying restaurant services and earning bankinterest

(c) A person trading in ice cream

(d) A person supplying service of repairing of electronic items

19. The time of supply of service in case of reverse charge mechanism is:

(a) Date on which payment is made to the supplier

(b) Date immediately following 60 days from the date of issue of invoice
(c) Date of invoice

(d) Earlier of (a) and (b)

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VG STUDY HUB GST MCQ’s – 6 7703880232

20. Which of the following services does not fall under reverse chargeprovisions as
contained under section 9(3) of the CGST Act?
(a) Services supplied by arbitral tribunal to business entity

(b) Sponsorship provided to any partnership firm

(c) Sponsorship provided to any body corporate

(d) Service of renting of motor vehicle for passengers provided to arecipient

other than body corporate.

21. ITC of motor vehicles used for making is allowed.

(i) Transportation of goods

(ii) Taxable supplies of transportation of passengers

(iii) Taxable supplies of imparting training on driving

(a) (i)

(b) (i) and (ii)

(a) (ii) and (iii)

(b) (i), (ii) and (iii)

22. Which of the following persons is required to obtain compulsory registration?

(a) Persons exclusively engaged in making intra-State supplies, tax on which
is to be paid by the recipient on reverse charge basis under section 9(3) of
the CGST Act, 2017.
(b) Persons making inter-State supplies of taxable services up to
` 20,00,000

(c) Persons making supplies of services through an ECO (other than supplies
specified under section 9(5) of the CGST Act) with aggregate turnover up
to ` 20,00,000
(d) Persons who make taxable supply of goods or services or both on behalf
of other taxable persons whether as an agent or otherwise.
23. A non-resident taxable person is required to apply for registration:

(a) within 30 days from the date on which he becomes liable to

registration
(b) within 60 days from the date on which he becomes liable to
registration

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(c) at least 5 days prior to the commencement of business

(d) within 180 days from the date on which he becomes liable to
registration
24. Registration certificate granted to casual taxable person or non-resident taxable
person will be valid for:
(a) Period specified in the registration application

(b) 90 days from the effective date of registration

(c) Earlier of (a) or (b)

(d) Later of (a) or (b

25. In case of taxable supply of services by a non- banking financial company (NBFC),
invoice shall be issued within a period of from the date of supply of service.
(a) 30 days

(b) 45 days

(c) 60 days

(d) 90 days

26. Where the goods being sent or taken on approval for sale or return are
removed before the supply takes place, the invoice shall be issued:
(a) before/at the time of supply

(b) 6 months from the date of removal

(c) Earlier of (a) or (b)

(d) Later of (a) or (b)

27. Invoice shall be prepared in ___________ in case of taxable supply of

goods and in _____________ in case of taxable supply of services.

(a) Triplicate, Duplicate

(b) Duplicate, Triplicate

(c) Duplicate, Duplicate

(d) Triplicate, Triplicate

28. Which of the following shall be discharged first, while dischargingliability of a

taxable person?
(a) All dues related to previous tax period

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VG STUDY HUB GST MCQ’s – 6 7703880232

(b) All dues related to current tax period

(c) Demand raised under section 73 and 74

(d) No such condition is mandatory.

29. The due date of filing Final Return is .

(a) 20th of the next month

(b) 18th of the month succeeding the quarter

(c) within 3 months of the date of cancellation or date of order of cancellation,
whichever is later
(d) 31st December of next financial year

30. Mr. A has a tax invoice [dated 20-1-2020] of services received by him.Its input
tax credit is lost, if ITC is not availed on or before–
(a) 20-1-2021.

(b) 31-12-2020.

(c) 20-1-2022.

(d) date of filing return of September, 2020or date of filing of annual return
for 2019-20, whichever is earlier.
31. Input tax credit shall not be available in respect of:
(i) Goods used for personal consumption
(ii) Membership of a club provided by the employer to its employees as per
company’s internal policy.
(iii) Travel benefits extended to employees on vacation such as leave or
home travel concession as per company’s internal policy.
(a) (i)

(b) (i) and (ii)

(c) (ii) and (iii)

(d) (i), (ii) and (iii)

32. Which of the following is not considered as ‘goods’ under the CGSTAct, 2017?
(i) Ten-paisa coin having sale value of ` 100.

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VG STUDY HUB GST MCQ’s – 6 7703880232

(ii) Shares of unlisted company

(iii) Lottery tickets

(a) (i)

(b) (ii)

(c) (ii) and (iii)

(d) (i), (ii) and (iii)

33. In case of supply of goods for ` 5,00,000, following information isprovided-

Advance received on 1st April
Invoice issued on 15th April
Goods removed on 25th April
What is the time of supply of goods, where tax is payable underforward charge?
(a) 1st April

(b) 15th April

(c) 25th April

(d) 30th April

34. Sham Ltd. is receiving legal services from a lawyer Mr. Gyan. The aggregate turnover
of Sham Ltd. In the preceding financial year is ` 40 lakhs. The information
regarding date of payment, invoice etc. isas follows-
Invoice issued by Mr. Gyan on 15th April
Payment received by Mr. Gyan on 5th May
Date of payment entered in books of accounts of Sham: 1st May
What is time of supply of services?
(a) 1st May

(b) 5th May

(c) 14th June

(d) 15th April

35. Which of the following is not eligible for opting composition scheme under sub-
sections (1) and (2) of section 10 of the CGST Act, 2017?
(a) M/s ABC, a firm selling garments in Ahmedabad having annualturnover
of ` 78 lakh.
(b) A startup company operating restaurant in Delhi having annualturnover

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VG STUDY HUB GST MCQ’s – 6 7703880232

of ` 98 lakh.
(c) A courier service company operating solely in Mumbai havingannual
turnover of ` 90 lakh.

(d) A trader selling grocery items in Orissa having an annualturnover of ` 95

lakh.

36. Assuming that all the activities given below are undertaken for aconsideration,
state which of the following is not a supply of service--
(a) Renting of commercial office complex

(b) An employee agreeing to not work for the

competitoror ganization after leaving the current employment
(c) Repairing of mobile phone

(d) Provision of services by an employee to the employer in the course of

employment
37. During the month of May, Z Ltd. sold goods to Y Ltd. for ` 2,55,000 and charged
GST @ 18%. However, owing to some defect in the goods, Y Ltd. returned the
goods by issuing debit note of ` 40,000 inthe same month. Z Ltd. records the return
of goods by issuing a credit note of ` 40,000 plus GST in the same month. In this
situation, GST liability of Z Ltd. for the month of May will be-

38. Which of the following persons can opt for the composition schemeunder
sub-sections (1) and (2) of section 10 of the CGST Act, 2017?
1 Registered person whose aggregate turnover in the precedingfinancial
year did not exceed ` 75 lakh.
2 Registered person whose aggregate turnover in the precedingfinancial
year did not exceed ` 1.5 crore.
3 A person engaged in manufacture of pan masala, tobacco and
manufactured tobacco substitutes.

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VG STUDY HUB GST MCQ’s – 6 7703880232

4 A person engaged in the manufacture of ice cream, other edibleice,

whether or not containing cocoa.
5 A person engaged exclusively in providing restaurant service.

6 A person engaged exclusively in supply of medicines.

(a) 1, 2, 3, 5
(b) 1, 2, 5, 6

(c) 2, 3, 4, 5

(d) 3, 4, 5, 6

39. Jolly Electronics (P) Ltd., an authorized dealer of GG Micro Ltd., is located and
registered under GST in Lucknow, Uttar Pradesh. It has sold following items to Mr.
Rakesh (a consumer):

Product Amount (`)

Refrigerator (500 litres) taxable @ 18% 40,000
Stabilizer for refrigerator taxable @ 12% 5,000
LED television (42 inches) taxable @ 12% 30,000
Split air conditioner (2 Tons) taxable @ 28% 35,000
Stabilizer for air conditioner taxable @12%. 5,000
Total value 1,15,000

Jolly Electronics (P) Ltd. has given a single invoice indicating price of each item
separately to Mr. Rakesh. Mr. Rakesh has given a single cheque of ` 1,00,000 for all
the items as a composite discounted price. State the type of supply and the tax rate
applicable on the same.
(a) Composite supply; highest tax rate applicable to split airconditioner,
i.e. 28%
(b) Mixed supply; highest tax rate applicable to split air conditioner, i.e. 28%

(c) Supply other than composite and mixed supply; highest tax rate applicable
to split air conditioner, i.e., 28%
(d) Supply other than composite and mixed supply; respective tax rate
applicable to each item

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40. M/s. Buildwell Engineering Consultants, located and registered under GST in
Gurugram, Haryana, provided architectural services to Taj India Ltd., located and
registered under GST in Mumbai, Maharashtra, for its hotel to be constructed on
land situated in Dubai.
Determine the place of supply of architectural services provided by M/s.
Buildwell Engineering Consultants to Taj India Ltd.:
(a) Gurugram, Haryana

(b) Mumbai, Maharashtra

(c) Dubai

(d) Either Maharashtra or Dubai, at the option of the recipient

41. The time-limit for issuance of order of best judgment assessment is:

(a) 5 years from the date specified for furnishing of the annual returnfor the
financial year to which the tax not paid relates.
(b) 4 years from the date specified for furnishing of the annual returnfor the
financial year to which the tax not paid relates.
(c) 3 years from the date specified for furnishing of the annual returnfor the
financial year to which the tax not paid relates.
(d) None of the above
42. Under GST law, time-limit for issuance of show cause notice in case of non-payment
of ITC is on account of reasons other than fraud, wilful misstatement or
suppression of facts, etc. is:
(a) 2 years and 9 months from the due date of filing Annual Returnfor the
Financial Year to which the demand pertains.
(b) 3 years from the due date of filing Annual Return for the FinancialYear to
which the demand pertains.
(c) 4 years and 6 months from the due date of filing Annual Returnfor the
Financial Year to which the demand pertains.
(d) 5 years from the due date of filing Annual Return for the FinancialYear to
which the demand pertains.
43. Time-limit for issuance of show cause notice under GST law in case ofany
amount collected as tax, but not paid to the Central Government is:
(a) 2 years and 9 months from the due date of filing Annual Returnfor the
Financial Year to which the demand pertains.
(b) 3 years from the due date of filing Annual Return for the FinancialYear to
which the demand pertains.

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VG STUDY HUB GST MCQ’s – 6 7703880232

(c) 4 years and 6 months from the due date of filing Annual Returnfor the
Financial Year to which the demand pertains.
(d) None of the above

44. State whether the following statements are true or false:

1. Zero rated supply means supply of any goods or services or both which
attracts nil rate of tax.
2. Exempt supply means export of goods or services or both or supply of
goods or services or both to a Special Economic Zone developer or a Special
Economic Zone unit.
3. Non-taxable supply means supply of goods or services or both which is not
leviable to tax under the CGST Act, 2017 but leviable to tax under the IGST
Act, 2017.
4. ITC may be availed for making zero rated supply of exempt goods.
(a) False, False, False, True

(b) True, False, False, False

(c) True, True, False, False

(d) False, False, False, False

45. Pappu is a dealer registered in GST and has purchased goods for `7,00,000 and paid CGST
@ 9% & SGST @ 9% and sold the goods at a profit of 40% on cost and charged output
CGST @ 9% and OutputSGST @ 9%. Net Tax Payable shall be
(a) CGST – 25,200 & SGST - 25,200
(b) CGST – 25,200 & SGST - Nil
(c) CGST – 88,200 & SGST - 88,200
(d) CGST – 63,000 & SGST - 63,000

46. Mr. X is not registered in GST and has purchased goods for `8,60,000 + CGST @ 9%
and SGST @9% and sold the goods at a profit of 40% on cost. Tax Payable shall be -

(a) CGST – 77,400 & SGST - 77,400

(b) CGST – 30,960 & SGST - 30,960
(c) CGST – Nil & SGST - 30960
(d) CGST – Nil & SGST - Nil

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47. Which of the following is not a supply as per section 7 of the CGST Act?
(a) A Mobile dealer sale his personal car to Mr X.
(b) Import of service for consideration not in course or furtherance of business
(c) Both (a) and (b)
(d) None of the above

48. =________specifies the activities to be treated as supply even if made without

consideration.

(a) Schedule I of CGST Act

(b) Schedule II of CGST Act
(c) Schedule III of CGT Act
(d) All of the above

49. Which of the following activity is outside the scope of supply and not taxable under
GST?

(a) Service by on employee to the employer in the course of or in relation to him

employment
(b) Service of funeral
(c) Actionable claims other than lottery, betting and gambling
(d) All of the above

50. Which of the following supplies are naturally bundled?

(a) Rent deed executed for renting of two different floors of a building one for
residential and another for commercial purpose to some person
(b) Pack of watch, tie and belt
(c) Package of canned food such as burger, chocolates, sweets, cake etc.
(d) None of the above
51. A supply comprising of two or more supplies shall be treated as the supply of that
particularsupply of that particular supply that attracts highest rate of tax.

(a) Composite
(b) Mixed
(c) Both (a) and (b)
(d) None of the above

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52. Which of the following can be treated as “goods” under the CGST act 2017?
I. Movable property

II. Money and securities

III. Actionable claim

Select the correct answer from the options given below-

I II II
a) Yes No Yes
b) No Yes Yes
c) No Yes No
d) Yes No No

53. Which of the following is deemed to be supply and liable to GST as per the schedule I to
the CGST Act, 2017?

I. Gifts from an employer to an employee of INR 40,000.

II. XYZ Ltd. gives laptops to Charitable Trust (Free) on which it had already availed ITC
in past.

Select the correct answer from the options given below-

a) (I) but not (II)

b) (II) but not (I)

c) Both (I) and (II) are supply and liable to GST

d) Both (I) and (II) are not supply and not liable to GST

54. Any job work carried out by a job worker on another person’s goods shall be treated as

(a) Supply of goods

(b) Supply of services
(c) Supply of services provided job work is carried out by a job worker without any
material
(d) Supply of services whether the job work is to be carried out by a job worker with or
without any material

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55. of the CGST Act, 2017 specifies activities to be treated as supply of goods or supply of
services.

a. Schedule IV
b. Schedule II
c. Schedule I
d. Schedule III

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