MCQs on Input Tax Credit and Tax Invoices - GST
1. Input Tax Credit can be claimed when:
A. Goods are received
B. Invoice is available
C. Supplier has paid tax
D. All of the above
Correct Answer: D
2. Which of the following is not eligible for ITC?
A. Capital goods used in business
B. Inputs for exempted supplies
C. Input services used for business
D. Raw materials for taxable supply
Correct Answer: B
3. ITC cannot be availed on:
A. Office rent
B. Goods for personal use
C. Input services used for sales
D. Professional consultancy
Correct Answer: B
4. The document required to claim ITC is:
A. Bank Statement
B. Tax Invoice
C. Delivery Challan
D. Purchase Order
Correct Answer: B
5. Capital Goods refer to:
A. Goods bought for resale
B. Goods for personal use
C. Assets capitalized in books and used in business
D. None of these
MCQs on Input Tax Credit and Tax Invoices - GST
Correct Answer: C
6. What is the time limit to claim ITC for a financial year?
A. Within 6 months
B. Before filing GSTR-3B
C. Up to September of next FY or annual return, whichever is earlier
D. No time limit
Correct Answer: C
7. ISD stands for:
A. Integrated Supplier Division
B. Input Supply Distributor
C. Input Service Distributor
D. Internal Supply Document
Correct Answer: C
8. ITC under special circumstances can be claimed within:
A. 3 months
B. 6 months
C. 1 year
D. 18 months
Correct Answer: C
9. What is a Credit Note?
A. Issued when value is undercharged
B. Issued when value is overcharged
C. Used to pay tax
D. None of these
Correct Answer: B
10. Delivery Challan is used when:
A. Tax invoice is ready
B. Transportation is done for supply
MCQs on Input Tax Credit and Tax Invoices - GST
C. Transportation is done without actual supply
D. Tax is exempt
Correct Answer: C
11. Payment Voucher is issued by:
A. Supplier
B. Recipient under reverse charge
C. Government
D. Bank
Correct Answer: B
12. Bill of Supply is issued for:
A. Taxable supply
B. Exempted supply
C. Export supply
D. None of these
Correct Answer: B
13. Debit Note is issued when:
A. Tax amount is reduced
B. Supply value increases
C. Goods are returned
D. None of these
Correct Answer: B
14. Which of the following is NOT a condition for availing ITC?
A. Invoice possession
B. Receipt of goods/services
C. Supplier has not paid tax
D. Return is filed
Correct Answer: C
15. ITC on motor vehicles is allowed when:
MCQs on Input Tax Credit and Tax Invoices - GST
A. For personal use
B. Used for transporting goods
C. Bought by an employee
D. Never allowed
Correct Answer: B
16. A revised invoice can be issued within how many days from registration?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
Correct Answer: B
17. ITC apportionment is needed when:
A. Goods are fully taxable
B. Supplies are partly exempt and partly taxable
C. All goods are exempt
D. None of these
Correct Answer: B
18. ITC on goods lost, stolen or destroyed is:
A. Fully allowed
B. Partially allowed
C. Not allowed
D. Allowed with prior approval
Correct Answer: C
19. In reverse charge, who is responsible for payment of tax?
A. Supplier
B. Government
C. Recipient
D. ISD
Correct Answer: C
MCQs on Input Tax Credit and Tax Invoices - GST
20. Which form is used for transfer of ITC in case of business transfer?
A. GSTR-3B
B. ITC-01
C. ITC-02
D. GSTR-2A
Correct Answer: C
