Practice Test

Q1) Which of the following countries was the first to introduce GST? Show Answer

Q2) All decisions of GST Council must have _____ majority in order to implement the same. Show Answer

Q3) A service would be called as “continuous supply of service”, if the service under a contract is provided continuously or on recurrent basis exceeding: Show Answer

Q4) Which law will govern the inter-state supply of goods or services? Show Answer

Q5) Which of the following has been kept out of the GST levy? Show Answer

Q6) Threshold limit of turnover for levy of GST in the case of a person having business (supply of goods and services) in Gujarat is Show Answer

Q7) When employer gifts goods to his employees, it will not be considered as taxable supply for the purpose of GST if the value of supply to an employee does not exceed: Show Answer

Q8) Which of the following incomes/ activities is liable for GST? Show Answer

Q9) Which of the following represents composite supply? Show Answer

Q10) Mr. Ram supplied goods to Mr. Laxman. The invoice is dated 30.7.2020. Payment was received for the supply on 30.10.2020. The goods were dispatched on 5.8.2020. What is time of supply under CGST Act? Show Answer

Q11) Which of the following though shown in Bill will not be included in determining the value of supply for the purpose of GST? Show Answer

Q12) Which of the following expenditure is eligible for input tax credit? Show Answer

Q13) Debit note is issued by the supplier of goods when Show Answer

Q14) Madhan is located in Chennai. He has a branch office in Cochin. He wants to transfer goods. His turnover was always below Rs.10 lakhs. His registration under GST is Show Answer

Q15) A taxable person whose registration has been cancelled or surrendered must file the final return of GST within Show Answer

Q16) Refreshments were supplied on board in an aircraft proceeding from Chennai to Delhi. It had a stop at Hyderabad. The refreshments were taken on board at Hyderabad. The place of supply is Show Answer

Q17) For the purpose of calculating the compensation payable to the States under the Goods and Service Tax (Compensation to States) Act, 2017 the base year for reckoning the Revenue is: Show Answer

Q18) Which of the following GST model is adopted in India? Show Answer

Q19) Export of service does not include: Show Answer

Q20) GST Council comprises of various persons from Union and States and is being headed by a Chair Person who is Show Answer

Q21) Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate, where required, by a competent authority or after its first occupation, whichever is earlier for the purpose of taxability under the CGST Act, 2017 shall be treated as supply of: Show Answer

Q22) Section 2(62) of the CGST Act, 2017 specifies input tax in relation to a registered person to mean Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both and also include:
(i) Integrated goods and services, tax charged on import of goods
(ii) Tax under the provisions of section 9(3) and 9(4)
(iii) Tax paid under composition levy
(iv) Tax under Union Territory Goods and Services Tax Act
Show Answer

Q23) Mr. Pankaj of Delhi supplied goods to Mr. Krishna of Delhi for Rs.1 lakh, on which total GST was charged @ 12%. Mr. Krishna, after purchase of goods, added 20% margin of profit (on cost) and sold the entire goods to Mr. Ravi of Delhi. The total amount of tax payable after claiming input tax on such transaction by Mr. Krishna is: Show Answer

Q24) Raj & Co., applied for voluntary registration under CGST Act, 2017 on 5th July, 2020 and the registration was granted on 15th July, 2020. Raj & Co. was having the stock available against the invoices for a period of 3 months old. Raj & Co., shall be eligible for input tax credit on such stock as held as on: Show Answer

Q25) A casual taxable person or a non-resident taxable person shall be required to apply for registration at least _____ days prior to the commencement of business. Show Answer

Q26) Mr. Bala has made supply (within State) of taxable goods to the tune of Rs.17 lakh, export supplies of Rs.3 lakh and intra-state supply of exempt services of Rs.4 lakh. His aggregate turnover as per section 2 (6) of the CGST/SGST Act, 2017 is Show Answer

Q27) A supply made by a taxable person to a recipient consisting of two or more taxable supply of goods or services of both or any combination thereof which are only bundled and supplied in conjunction with each other in the ordinarily course of business out of which one is a principal supply has been defined u/s 2(3) of CGST Act, 2017 to mean Show Answer

Q28) Tax on inter-state supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged to Show Answer

Q29) Provision for levy and collection of tax on intra-state supply of goods or services or both by the Union Territory and for matters connected therewith or incidental thereto are being enumerated in Show Answer

Q30) The highest enabling limit of tax rate of IGST has been prescribed at Show Answer

Q31) Special purpose vehicle to cater the IT needs of GST is called Show Answer

Q32) GST in India is levied on the basis of Show Answer

Q33) The tax under GST legislation in India is being levied: Show Answer

Q34) GST has replaced the following law(s) Show Answer

Q35) GST is a _____ based tax. Show Answer

Q36) In IGST, I stands for Show Answer

Q37) The Chairperson of GST Council is Show Answer

Q38) Under GST law the phrase ‘Goods’ does not include Show Answer

Q39) GST is a _____ based tax. Show Answer

Q40) A new supplier has taxable intra-state sales, exempt intra-state sales and export sales of goods. He should get himself registered under GST law, where Show Answer

Q41) A casual taxable person is required to obtain registration where he makes Show Answer

Q42) Subbu, a registered supplier based at Erode coached the staff of a software company in Hyderabad, which is registered. The classes were held at Erode. The place of supply is Show Answer

Q43) A supply made by a taxable person to a recipient of goods being buyer consisting of two or more taxable supplies of goods or services or of both or any combination thereof which are only bundled and supplied in conjunction with each other in the ordinarily course of business out of which one is a principal supply has been defined u/s 2 (3) of CGST Act, 2017 as Show Answer

Q44) The payment of tax by electronic operator who does not have physical presence in taxable territory in India be made by Show Answer

Q45) The time of supply “where goods or services or both have been supplied in a situation where the invoice issued before the change in the rate of tax but payment received after the change in rate of tax” as per section 14 of the CGST Act, 2017 shall be Show Answer

Q46) Which of the following called the Union territory as being covered under Union Territory Goods and Service Tax Act, (UTGST), 2017? Show Answer

Q47) Subsidy given by the Central Government or a State Government while determining value of taxable supply under Goods and Services Tax (GST) as per section 15 of the CGST Act, 2017 Show Answer

Q48) Raju from Surat, Gujarat, Supplied goods to shyam of Mumbai, Maharashtra for Rs. 1,20,000 (excluding GST) but after adding 30% profit margin (on cost). Shyam is also a taxable person. IGST rate is 18%. The amount of input tax credit that can be availed and the maximum time limit for availing such input tax credit by Shyam of Mumbai, Maharashtra as per CGST Act, 2017 is Show Answer

Q49) Find out the following, who are the persons not liable for registration under the CGST Act, 2017. Show Answer

Q50) Who is authorized under Integrated Goods and Service Tax (IGST) Act, to levy tax? Show Answer

Q51) The available balance of input tax credit in the electronic ledger of the registered person on account of Union territory tax shall be utilised as per section 9 of UTGST Act, 2017 Show Answer

Q52) Exempt supply means supply of any goods or services or both which may be wholly exempt from tax under section 11 or under section 6 of the IGST Act and includes
(i) non-taxable supply
(ii) zero rated supply
(iii) supply having nil rate of tax
(iv) composite supply
Show Answer

Q53) The exception to the general rule that “normally, the supplier of goods and services is liable to pay tax on supply, even if he does not collect from his customer i.e. recipient of supply of goods and services” shall be applicable where there are Show Answer

Q54) Power to declare certain activities / transactions as neither supply of goods nor of services is given in Show Answer

Q55) The proper officer may cancel the GST registration, if any registered person other than a person paying tax under section 10 of CGST Act, 2017 has not furnished the returns for a continuous period of Show Answer

Q56) ABC Ltd. of Mumbai supplied goods to XYZ Ltd. of Delhi under a contract for the goods to be delivered at the factory of the buyers. Goods removed from the factory of ABC Ltd. on 9-8-2020 and were delivered in the factory of XYZ Ltd.of Delhi on 16-8-2020. Invoice for the suppliers was raised by ABC Ltd. on 18-8-2020. Payment of the bill was received on 20-9-2020. The time of supply in this case under GST be taken as Show Answer

Q57) Section 24 of the CGST Act, 2017 lists categories of persons who are required to take registration even if they are not covered under section 22 of the Act. Find out from the following categories of persons who are being required to take registration as per section 24 of the CGST Act, 2017:
(i) Casual taxable person
(ii) Non-resident taxable person
(iii) Recipient of service under Reverse Charge
(iv) Inter-state supplier
(v) Input service distributor
Show Answer

Q58) Section 2(6) of the CGST/SGST Act, 2017 defines aggregate turnover which is being computed on all India basis excluding the taxes charged under CGST Act, SGST Act, UTGST Act and IGST Act. Aggregate turnover shall include all supplies made by a taxable person comprising of
(i) Taxable supply
(ii) Exempt supply
(iii) Export of goods and services
(iv) All inter-state supply of person having same PAN
(v) Supply on which tax is levied on reverse charge basis
(vi) Value of all inward supply
Show Answer

Q59) Decision of the GST Council will be adopted when it has the support of Show Answer

Q60) The compensation to states for loss of revenue on account of implementation of GST is for _____ years. Show Answer

Q61) When agriculturist supplies tobacco leaves to a factory, registered under GST, the liability to pay GST is on Show Answer

Q62) When an unregistered dealer supplied goods to a registered dealer, the time of supply under reverse charge shall be earliest of the Show Answer

Q63) To avail input tax credit, which of the following factors is not relevant? Show Answer

Q64) Input tax credit cannot be availed after the expiry of _____ from the date of issue of tax invoice of supply. Show Answer

Q65) When goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance as per provisions of CGST Act, 2017, is called as Show Answer

Q66) A service shall be a continuous supply of service agreed to be provided continuously or on recurrent basis under a contract when the period of service exceeds Show Answer

Q67) Which of the following is not liable to be registered as per provisions of CGST Act, 2017? Show Answer

Q68) ABC Ltd. is a registered pharmaceutical company. The company invented one drug for instant cure of cancer. They supplied free samples of this medicine to various doctors. What will be the tax treatment of these free samples under GST? Show Answer

Q69) Kala Niketan School is an educational institution providing pre-school education and education upto higher secondary school. Which of the following services are exempt if provided to Kala Niketan School?
(i) Transportation of students, faculty and staff
(ii) Catering services
(iii) Cleaning services performed in such educational institution
Show Answer

Q70) Calculate the amount of eligible input tax credit. GST Paid (Rs.)
(i) A mini bus having seating capacity of 15 persons (including driver) used for running on hire
15,00,000
(ii) Car having seating capacity of 8 people used for business purposes 1,00,00,000
(iii) Car having seating capacity of 4 persons used for imparting training on driving such car 50,00,000
(iv) Special purpose vehicle having seating capacity of 2 persons used for transportation of goods 60,00,000
Show Answer

Q71) Mr. Avishkar is a painter registered under GST in Delhi. He sends his artwork for exhibition in Mumbai. At what point of time, supply is considered to have been made under GST? Show Answer

Q72) Which of the following is not covered under Schedule III of CGST Act, 2017? Show Answer

Q73) Which of the following service is not exempt under GST? Show Answer

Q74) GST is payable in respect of services rendered to an employer by an employee on Show Answer

Q75) Which of the following shall not be included in value of supply? Show Answer

Q76) Where a person becomes liable to get registered under GST law, he should furnish application for registration within _____ days. Show Answer

Q77) Following taxes are levied in inter-state supply of goods under GST law. Show Answer

Q78) Renting of a marriage hall owned by a Trust registered under section 12AA of the Income Tax Act, 1961 is not exempt from GST where Show Answer

Q79) ‘Zero rated supply’ means Show Answer

Q80) The period prescribed for issuance of tax invoice in the case of provision of services is Show Answer

Q81) In the common portal, every claim of input tax credit of a registered person shall be credited to Show Answer

Q82) Supply of goods or services or both to a Special Economic Zone Unit is a Show Answer

Q83) Reverse Charge Mechanism shall apply Show Answer

Q84) Healthcare Service is taxable where services are provided in the field of Show Answer

Q85) Where a desktop printer is sold for Rs.10,000 along with the exchange of an old printer and if the price of the new desktop printer without exchange is Rs.12,500, the taxable value for GST purpose would be Show Answer

Q86) The sale document to be generated by a supplier in case of exempted supply is called Show Answer

Q87) Under GST Act, a supply of assortment of sweets, chocolates and firecrackers packed in a gift hamper is Show Answer

Q88) Under GST input tax credit cannot be claimed on goods and services used as inputs if Show Answer

Q89) A person is not liable for registration under GST Act if Show Answer

Q90) It is not mandatory to have the following field in a tax invoice under CGST Rules, 2017. Show Answer

Q91) Under GST Act the term UIN stands for Show Answer

Q92) Following is not a part of the contents of a bill of supply. Show Answer

Q93) In case of inter-state supply of goods, the tax(es) is/are levied Show Answer

Q94) Lakshmi became liable to be registered under GST law on 10th November, 2020. She submitted the application for registration on 18th November, 2020. The registration certificate is issued on 9th December, 2020. The effective date of registration will be Show Answer

Q95) A manufacturer who is registered person under GST has purchased 10,000 kgs of raw material during February, 2021, on which IGST of Rs.1,00,000 has been paid. He has taken 100 kgs for personal use. 200 kgs were stolen from the factory. Only 80% of the raw materials were consumed during the month of production. The input tax credit available to him for February, 2021 is Show Answer

Q96) The term ‘casual taxable person’ includes Show Answer

Q97) Mahesh is employed in Zed Traders a proprietary concern of Kumar having taxable turnover under GST. Services provided by Mahesh will be taxable if Show Answer

Q98) What would be the tax rate applicable in case of composite supply? Show Answer

Q99) Which one of the following is exempted from GST? Show Answer

Q100) Time limit to pay the value of supply with taxes to avail the input tax credit is Show Answer

Q101) Any person required to deduct tax or required to collect tax at source under GST as per Rule 12 shall electronically submit an application for the grant of registration in Form _____ and after verification of the application the proper officer may grant the registration and issue the certificate of registration in Form _____. Show Answer

Q102) The proper officer, if has reasons to believe that the registration of a person is liable to be cancelled under section 29 of CGST Act, then he shall issue a notice to such person in Form _____ and after considering the reply furnished by such person shall pass on order to drop proceedings in Form _____. Show Answer

Q103) Mundra Manufacturing Company of Jaipur on the order placed by Dheeraj Enterprises of Noida for supply of goods despatched the goods from the factory located at Jaipur on 1st March, 2020. The tax invoice for such supply by Mundra Manufacturing Company must be issued on Dheeraj Enterprises on or before _____. Show Answer

Q104) Tax invoice referred to in Rule 46 of CGST Rules, 2017, in case of taxable supply of services shall be issued under Rule 47 of CGST Rules, 2017, within a period of _____ from the date of supply of service. Show Answer

Q105) Tax on inter-state supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged under _____. Show Answer

Q106) Provision for levy and collection of tax on intra-state supply of goods or services or both by the union territory and for matters connected therewith or incidental thereto are being enumerated in Show Answer

Q107) Integrated tax credit as per section 9A of UTGST Act, 2017 on account of Union Territory Tax shall be utilised towards payment of _____ only after the input tax credit available of account of _____ has been utilised towards such payment. Show Answer

Q108) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by majority of not less than _____ of the weighted votes of the members present and voting. The vote of the Central Government shall have the weightage of _____ of the total votes cast and the votes of all the State Government taken together shall have a weightage of _____ of the total votes cast in that meeting. Show Answer

Q109) The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute _____. Show Answer

Q110) Administration and procedural aspects of Goods and Services Tax are to be administered by the _____ which is under the control of the Department of Revenue, Ministry of Finance, Government of India. Show Answer

Q111) GST is a comprehensive tax regime covering both goods and services and be collected on value added at each stage of the supply chain. GST is thus levied on the basis of _____. Show Answer

Q112) Section 7 of the CGST Act, 2017 defines the term ‘supply’ which are further being enumerated in the various schedule as specified in that section. The section includes certain transactions which are even without consideration but being construed as supply and also known as deemed supply. Such transactions are being specified in _____. Show Answer

Q113) Permanent transfer or disposal of goods forming part of business asset by or under the directions of the person carrying on the business whether or not for consideration as well as transfer of title in goods under an agreement where property in goods passes at a future date on payment of full consideration as per Schedule II of the CGST Act, 2017 to be treated as _____. Show Answer

Q114) Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate, where required, by a competent authority or after its first occupation, whichever is earlier as per section 7 of the CGST Act, 2017 read with item specified in schedule is known as _____. Show Answer

Q115) The supply of goods/ services/ both, where location of supplier and the place of supply are in the same State or same Union Territory under CGST Act, 2017 and UTGST Act, 2017 is known as a _____. Show Answer

Q116) Ram and Company of Delhi has taken a contract to supply of food in New Delhi-Mumbai Rajdhani Express and the supplies of food in the train are being taken on board at Kota in Rajasthan from Agarwal Food & Caterers. The place of supply in such case shall be _____. Show Answer

Q117) Mr. Ravi Raj is a registered person based in Ahmedabad solicits the services of an Event Management Company based in Mumbai for his daughter’s marriage planned as a destination wedding at palace located in Udaipur. The place of supply in this case shall be _____ and tax to be charged under _____. Show Answer

Q118) ABC Ltd., supplied goods to XYZ Ltd. under a contract for the goods to be delivered to the factory of XYZ Ltd. The goods were removed from the factory of ABC Ltd. on 9th September, 2020 and the goods were delivered to the factory of XYZ Ltd. on 15th September, 2020.
The invoice was issued on 18th September, 2020 and the payment was credited to ABC’s account on 20th October, 2020 although the entry in the books was made on 19th September, 2020 when the cheque was received. The time of supply in this case will be
Show Answer

Q119) What will be the value of supply of the mobile phone sold by Micromax to Anil Kumar for Rs.35,000 in exchange with his old mobile phone? The sale price of the new mobile phone without exchange is Rs.40,000. The value of old mobile phone so exchanged was of Rs.7,000. Show Answer

Q120) Mishra Enterprises had made supplies of Rs.5,50,000 to Bee Kay Enterprises. Municipal Authorities of Jaipur on such supplies levied the tax @ 10% of Rs.55,000. CGST and SGST chargeable on the supply was of Rs.66,000. Packing charges not included in the price of Rs.5,50,000 amounting to Rs. 15,000. Subsidy of Rs. 25,000 was received from the NGO’s on the sale of such goods and the price of Rs. 5,50,000 is after taking into account the amount of subsidy so received. Discount offered is @ 1% which was mentioned on the invoice. The value of supply in this case shall be _____. Show Answer

Q121) Babbur Automobiles of Jaipur has supplied the goods of Rs.2,66,090 to Goel Automobiles of Ajmer in the month of March, 2020. The supply so made was inclusive of tax charged as CGST and SGST which on the products so sold as per rates prescribed under CGST Act, 2017 is @ 18%. The value of supply as per Rule 35 of the CGST Rule, 2017 of such supply shall be _____. Show Answer

Q122) A registered taxable person is eligible to obtain Input Tax Credit (ITC) as per section 16 of the CGST Act, on fulfilling of certain conditions which consist of that such person should
(i) Be in possession of tax invoice
(ii) Have received the goods
(iii) supplier have not paid the tax charged
(iv) supplier have furnished the return u/s 39
Show Answer

Q123) Availability of Input Tax Credit in special cases as per section 18(1) of the CGST Act, 2017 is available where a registered person is having tax invoice relating to such supply issued not after expiry of _____ from the date of issue of tax invoice. Show Answer

Q124) ABC Ltd. is engaged in manufacture of electrical appliances supply following details relating to GST paid on various items by them:
GST Paid (Rs.)
Electrical Transformers utilised in the manufacturing process 1,20,000
Trucks used for transporting materials 80,000
Cakes and Pastries for consumption within factory 12,500
The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be
Show Answer

Q125) The Input Tax Credit (ITC) is being credited to _____ of a person which may be used by the person to pay his output tax liability. Show Answer

Q126) The registration under GST is _____ based with state specific number and is known as GST Identification Number (GSTIN) which is a ____. digit number under the CGST Act, 2017. Show Answer

Q127) Every supplier as per section 22 of the CGST Act, 2017 shall be liable to be registered under this Act in the state where he makes taxable supplies of goods or services or both, if his aggregate turnover in the financial year exceeds _____. Show Answer

Q128) Section 22 of the CGST Act, 2017 refers to the expression “Special Category States” and there are total _____ special category states as per sub-clause (2) of clause (4) of Article 279A of the Constitution. However, special category states for the purpose of registration under the CGST Act, 2017 out of which are _____. Show Answer

Q129) Section 2 (77) of CGST Act, 2017 defines “non-resident taxable person” who has the business outside India, comes to India for a temporary business purpose. Such person would need to register as a non-resident taxable person in the state and he will be granted registration for a maximum period of _____ under this Act. Show Answer

Q130) The application for registration filed as per Rule 8, prior to grant of registration be examined and if found to be deficient, a notice to the applicant in Form _____ be issued within a period of _____ days from the date of submission of application. Show Answer

Q131) License to occupy land is treated as _____. Show Answer

Q132) When goods are imported into India, CGST is levied. Show Answer

Q133) The highest rate of tax levied under IGST is 28%. Show Answer

Q134) GST will not abolish all the indirect taxes levied in India. Show Answer

Q135) Goods are classified in the GST regime in India using SAC code. Show Answer

Q136) Goods and Services Taxpayer Identification Number (GSTIN) is a state-wise PAN-based 15 digit number. Show Answer

Q137) Place of supply of services, in relation to training and performance appraisal provided to a registered person, will be the location of provider of service. Show Answer

Q138) Recovery Agent Services to banking or NBFCs are exempted from GST. Show Answer

Q139) GST is extended to whole of India excluding the state of Jammu and Kashmir. Show Answer

Q140) Goods sent for a demonstration on returnable basis. It is supply. Show Answer

Q141) Central sales tax has been subsumed in the ambit of GST. Show Answer

Q142) IGST would be levied and collected by the Central Government as well as State Government on all Inter-state transactions of taxable goods or services. Show Answer

Q143) The Union Finance Minister is a Chairperson of the GST Council. Show Answer

Q144) As per the definition under CGST Act, person does not include Central Government or a State Government. Show Answer

Q145) Penalties levied on late or delayed payment of loans and advances are exempted supply under GST. Show Answer

Q146) The scope of supply of goods or services or both includes, inter alia, sale, exchange and lease. Show Answer

Q147) A registered person under GST law gives a free spoon along with every soap purchased. This is a case of composite supply under GST law. Show Answer

Q148) Under GST law, every registered person whose aggregate turnover during a financial year exceeds Rs.2 crore has to get his accounts audited by a chartered accountant or a cost accountant. Show Answer

Q149) Input credit can be claimed for machinery purchased and sent directly to a job worker registered under the tax payer. Show Answer

Q150) Under GST the phrase “Aggregate turnover” includes exempt supplies also. Show Answer

Q151) A person can issue normal tax invoice in respect of supplies which were suppressed by him and are detected by the GST officers subsequently. Show Answer

Q152) GST is payable once registered even if the turnover is less than the prescribed limit. Show Answer

Q153) A registered person under GST law gives a free spoon along with every soap purchased. This is a case of composite supply under GST law. Show Answer

Q154) Buying and selling of second hand goods is not subject to GST. Show Answer