GOODS AND SERVICE TAX – SIMPLIFIED Dear Students, From DEC 2017 term on-wards both ICAI (10 Marks) & ICSI - Executive & Professional Exams (40 Marks Approx) will be asking questions from Goods and Service Tax. Since you all must have started your preparations for the new law. It’s important that you revise the major portions in the best possible manner. To facilitate you in your preparation and reviewing your own performance we have prepared GST - SIMPLIFIED a Study Note containing 300 Multiple Choice Questions and there Answers from GST ACT These will help you access your preparations and also to REVISE the KEY PORTIONS of GST EFFECTIVELY.

MCQ ON GOODS AND SERVICE TAX 1. Taxes in India are levied by: A) Constitution of India B) Parliament of India C) CBDT D) CBEC 2. Taxation is matter of: A) State List B) Central List C) Concurrent List D) All of the Above 3. Article distributes legislative powers including taxation, between the Parliament of India and the State Legislatures: A) Article 246 B) Article 14 C) Article 32 D) Article 35A 4. Who Can Levy GST: A) Central Government B) State Government C) Union Territory D) All of the Above 5. GST has been made applicable by number of Countries across the Globe. A) 125 B) 132 C) 140 D) 141

GOODS AND SERVICE TAX – SIMPLIFIED 6. GST was first levied by in 1954. A) France B) England C) Pakistan D) Germany 7. GST is a based tax. A) Destination B) Manufacturing C) Services D) All of the Above 8. The Kelkar-Shah Model of GST is based on Model of GST. A) Canada Model B) France Model C) England Model D) Germany Model 9. India, Brazil and Canada Follows a Model of GST. A) Dual B) Triple C) Quad D) Penta 10. GST is a level tax. A) State B) National C) Both A & B D) None of the Above 11. Taxes have been subsumed under GST. A) Central Excise Duty B) Taxes on advertisements C) Entry Tax D) All of the Above

GOODS AND SERVICE TAX – SIMPLIFIED 12. The origin of Goods and Services in India could be traced back to . A) June 17, 2000 B) August 15, 2001 C) December 13, 1996 D) July 17, 2000 13. In the year 2003, Task Force on Indirect Tax suggested GST to be implemented in India. A) The Sharma Task Force B) The Mitra Task force C) The Kelkar Task Force D) The Congress Working Committee. 14. The Empowered Committee in the year released its First Discussion Paper on GST. A) December, 2008 B) November, 2009 C) May, 2015 D) November, 2009 15. The Empowered Committee deliberated on the proposed design including the and submitted the report in the year January, 2013 A) Constitution (114th) Amendment Bill B) Constitution (115th) Amendment Bill C) Constitution (118th) Amendment Bill D) Constitution (108th) Amendment Bill 16. Which of the following country has the maximum GST tax slab? A) Greece B) China C) Australia D) India 17. Which of the following country has the second highest tax slab? A) Australia B) India C) Argentina D) South Korea

GOODS AND SERVICE TAX – SIMPLIFIED 18. In May, 2017 was passed by Lok Sabha on May 06, 2015. A) Constitution Amendment (121st) Bill B) Constitution Amendment (123rd) Bill C) Constitution Amendment (124th) Bill D) Constitution Amendment (122nd) Bill 19. On , the Constitution (122ndAmendment) Bill, 2014 was passed by Rajya Sabha with certain amendments. A) August 03, 2016 B) August 16, 2016 C) August 01, 2016 D) July 30, 2016 20. The Constitution Amendment Bill was adopted by majority of State Legislatures wherein approval of at least 50%of the State Assemblies was required. A) September, 2016 B) October, 2016 C) August, 2016 D) December, 2016 21. is the main decision-making body that has been formed to finalize the design of GST. A) GST Committee B) Cabinet of Ministers C) Central Government D) GST Council 22. Functions of the GST Council seeked to include making recommendations on: A) goods and services which may be subjected to or exempted from GST B) threshold limit of turnover below which goods and services may be exempted from GST C) Model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply D) All of the Above 23. The Rajya Sabha passed CGST Bill on: A) 4th May, 2017 B) 13TH May, 2017 C) 6th April, 2017 D) 25th Arpil, 2017

GOODS AND SERVICE TAX – SIMPLIFIED 24. Under CGST, adjudicating authority Means: A) any authority, appointed or authorised to pass any order or decision under this Act. B) any Committee empowered by an authority, appointed to pass any decision under this Act C) Central Board of Excise and Customs D) None of the above 25. The Term Business Includes: A) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit. B) admission, for a consideration, of persons to any premises C) services provided by a race club by way of totalisator or a licence to book maker in such club D) All of the Above 26. Factor that should be considered in determining whether goods or services are related include: A) the nature of the goods or services B) the nature of the production processes C) Both A & B D) Neither A nor B 27. “exempt supply” means supply of any goods or services or both which attracts rate of tax: A) Zero B) Nil C) Not mentioned in act D) None of the above 28. “fixed establishment” means a place (other than the registered place of business) which is characterised by a sufficient degree of and suitable structure in terms of human and technical resources to supply services A) Permanence B) Fixity C) Perpetuity D) Immortality

GOODS AND SERVICE TAX – SIMPLIFIED 29. “Goods” means every kind of property A) Movable B) Immovable C) Both A & B 30. “input” means any goods other than goods A) CONSUMER B) CONSUMABLE C) Capital D) Intangible 31. How Many Type Of GST Taxes Will Be Levied In India A) 3 B) 1 C) 2 D) 4 32. The tax IGST charged by Government. A) Central B) State C) CBEC D) Both A & C 33. “Input Service Distributor” means an office of the: A) supplier of goods B) supplier of goods or services C) Both of the Above 34. GST is levied on supply of all goods or services or both except supply of . A) Sin goods B) Cigarettes C) Alcoholic liquor for human consumption D) None of the above

GOODS AND SERVICE TAX – SIMPLIFIED 35.

is not a part of GST regime temporarily. A) petroleum products B) Sin Goods C) Alcohol D) All of the Above 36. Integrated GST (IGST) is levied and administered by Centre on every A) inter-state supply of goods B) inter-state supply of services C) Both A & B 37. Liability to pay GST Arises for Limit of Rs. is crossed by North Eastern & Special Category States. A) 5 lakhs B) 10 lakhs C) 15 lakhs D) 20 lakhs 38. Liability to pay tax arises when a Person crosses the turnover threshold of A) 5 lakhs B) 10 lakhs C) 15 lakhs D) 20 lakhs 39. To be eligible for registration under Composition scheme it is required that the aggregate turnover of a registered tax payer should not exceed Rs. in the preceding financial year. A) 45 Lakhs B) 50 Lakhs C) 75 Lakhs D) 1 Crore 40. In case of inward supplies of Goods or Services the tax is payable by a person on Basis. A) Settlement Basis B) Reverse charge basis C) Total Turnover Basis D) None of the Above

GOODS AND SERVICE TAX – SIMPLIFIED 41. Under GST the taxable event is of goods or services or both. A)Manufacture B) Sale C) Supply D) All of the Above 42. Supply includes: A) Sale & transfer, B) Barter & exchange, C) Licence & rental, D) All of the Above 43. Following should be kept in mind while Treating a Supply Taxable under GST: A) It Must be made by a taxable person B) It Must be made within taxable territory C) Both A & B D) It must be defined under GST. 44. lists activities that are to be treated as supply even if they are without a consideration. A) CGST Act B) GST rules C) Schedule I of GST Act D) Schedule II of GST Act 45. If for office purpose, XYZ ltd purchases 10 laptops worth Rs. 500000 + GST Rs. 25000 and further avails ITC of Rs. 25000 on GST paid, and after few years XYZ ltd. gives away these laptops to office staff, will it be deemed as supply without consideration? A) Yes B) No C) At least Part Consideration must be present. 46. Gifts from an employer to an employee not exceeding Rs. will not be considered as supply. A) 25000 B) 50000 C) 100000 D) 75000

GOODS AND SERVICE TAX – SIMPLIFIED 47. Is supply of goods between principal to his agent or agent to its principle is a Taxable Event under GST? A) Yes B) No its exempted C) If only consideration is paid 48. If a head office which is located out of India provides interior designing services to its branch office in India, will it be a taxable service under GST? A) Yes B) No its exempted C) If only consideration is paid 49. Activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities shall be: A) Treated as Taxable Activities B) Not Treated as Taxable Activities 50. Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a ? A. Composite Supply B. Individual Supplies C. Mixed Supply 51. 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 A. Mixed supply B. Composite Supply C. Individual Supplies 52. Supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary is called a: A. Mixed supply B. Composite Supply C. Principal Supply D. Individual Supplies

GOODS AND SERVICE TAX – SIMPLIFIED 53. Aggregate Turnover Consists of: A. taxable Supplies B. Exempt Supplies C. inter-State Supplies D. All of the Above 54. Scheme of Composition Levy is not applicable on: A. Services sector B. Manufacturing Sector C. Traders D. Both A & B 55. Registered person under composition scheme is to collect tax. A. Not Permitted B. Permitted C. Exempted D. May continue collecting Vat & Excise 56. The composition scheme is A. Optional B. Mandatory 57. The date of receipt of payment shall be the of the following: ➢ date on which the payment is entered in the books of account of the supplier ➢ the date on which the payment is credited to his bank account A. Later B. Earliest 58. Who is the head of the GST council? A. Shashi Kant Das B. Amit Mitra C. Arun Jaitley D. Hasmukh Adhia 59. Which of the following tax rate is not applicable under the GST? A. 5 B. 12 C. 18 D. 25

GOODS AND SERVICE TAX – SIMPLIFIED 60. A. B. C.

“the date of receipt of payment shall be earliest of date on which the payment is entered in the books of account of the supplier the date on which the payment is credited to his bank account Both A & B

61. The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier: A. Receives such addition in value. B. Credits the same in his books of accounts C. When the seller sells the Goods 62. Where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of , whichever is earlier A. receipt of payment or B. the date of issue of invoice C. Both A & B 63. where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of: A. receipt of payment B. debit of payment from the payers account 64. Will deposit given in respect of the supply of goods or services or both be considered as payment made for such supply? A. Yes B. No.

GOODS AND SERVICE TAX – SIMPLIFIED 65. Value of Supply any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than GST Act

A. Shall Not Include B. Shall Include C. Shall Include subject to the CBEC Approval 66. Value of Supply excludes: A. Before or at the time of supply: if discount has been duly recorded in invoice B. After the supply: established in terms of an agreement and specifically linked to relevant invoices. input tax credit, attributable to discount have been reversed by recipient C. Both of the Above 67. Subsidies directly linked to the price excluding subsidies provided by the Central Government and State Government are A. Part of Value of Supply B. Not Part of Value of Supply 68. related persons shall include: A. B. C. D.

such persons are officers or directors of one another’s businesses such persons are employer and employee they are members of the same family all of the above.

69. To avail the benefit of ITC – Input Tax Credit, it is required that the person availing such benefit is registered under GST, the statement is: A. Correct B. Incorrect

GOODS AND SERVICE TAX – SIMPLIFIED 70. To Claim ITC following conditions are required to be fulfilled by a registered taxable person: A. he should be in possession of tax invoice or debit note or such other tax paying documents as may be prescribed B. he should have received the goods or services or both C. the supplier should have actually paid the tax charged in respect of the supply to the government D. he should have furnished the return under section 39 E. All of the Above 71. where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take credit upon receipt of the: A. First Installment B. Proportionately C. Last installment 72. ITC would be available to the recipient of Goods or Services when: A. The supplier has passed the necessary invoice. B. The supplier has filed the Return C. The supplier has time tax so collected by the supplier is deposited to the Government 73. ITC shall not be available if : A. Goods or services partly used for business purpose B. Zero rated and Exempted Supplies C. Membership of a club, health and fitness centre D. All of the Above 74. Input tax credit is not allowed with respect to goods A. lost, B. stolen, C. destroyed or written off D. All of the Above 75. The person who is treating or processing the goods belonging to other person is called ‘ ’ and the person to whom the goods belongs is called ‘ ’ A. Job Worker & Assessee B. Job worker & Principal C. Contractor & Principal D. Manufacturer & Assessee

GOODS AND SERVICE TAX – SIMPLIFIED

76. a principal can supply goods from the place of business of job worker if the principal declares the place of business of the job worker as his A. Additional Place B. Manufacturing Unit C. Warehouse D. Business Location 77. For the purposes of job work, input intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker. A. Includes B. Excludes 78. In case of Job work ITC can be availed even if inputs or capital goods are directly sent to the Job Worker without being first brought to the place of business of Principal. A. Correct B. Incorrect C. Correct subject to certain conditions of CGST Act, 2017 79. A Registered Person under GST must maintain either of the following accounts : A. Production or manufacture of goods B. Output tax payable and paid C. Stock of goods D. All of the Above 80. Goods Transporter has been from maintaining the Books of Accounts under GST. A. Exempted B. Not been exempted C. Exempted subject to certain conditions

GOODS AND SERVICE TAX – SIMPLIFIED 81. The time duration for retention of accounts and records under GST is until expiry of from the due date of furnishing of annual return for the year pertaining to such accounts and records. A. Seventy – Two Months B. Sixty Months C. Ninety – Six Months D. One Hundred and Twelve Months 82. 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 or at the time of supply or six months from the date of removal, whichever is earlier. B. before or at the time of supply or three months from the date of removal, whichever is earlier. C. before or at the time of supply or 45 Days from the date of removal, whichever is earlier. D. None of the above. 83. A registered person is required to issue_ Note, where taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply. A. Debit Note B. Credit Note 84. A registered person is required to issue where the goods supplied are returned by the recipient. A. Debit Note B. Credit Note 85. For special category States, Supplier of taxable goods or services or both exceeding the specified threshold limit of requires to get registered under GST. A. Rs. 10 Lakhs B. Rs. 5 Lakhs C. Rs. 15 Lakhs D. Rs. 20 Lakhs 86. An interstate supplier is required to get registered under GST. A. Compulsorily B. Exempted C. Exempted subject to certain conditions.

GOODS AND SERVICE TAX – SIMPLIFIED 87. Every Electronic Commerce Operator is required to register under GST? A. True B. False 88. An agriculturist is required to get registered under GST ? A. True B. False 89. A return on Outward Supplies must be filed with in: A. On or before 15th of next month B. On or before 10th of next month C. On or before 15th of next Quarter D. On or before 10th of next Quarter 90. Registered Composition Supplier needs to file a return within: A. 18 days after the end of each month B. 18 days after the end of each quarter C. 20 days after the end of each month D. 10 days after the end of each quarter 91. Every Input Service Distributor shall file Details of Tax invoices within: A. Before 15th of next month B. Before 13th of next month C. Before 10th of next month D. Before 13th of next Quarter 92. Taxable Person whose registration has been cancelled or surrendered shall file Final Return within Within three months of: A. the date of cancellation B. date of order of cancellation C. Both A & B whichever is later D. Both A & B whichever is earlier 93. Payment can be made in cash by debiting the portal. A. e-cash ledger B. e-wallet C. Current Bank Account D. Any of the Above

maintained on the common

GOODS AND SERVICE TAX – SIMPLIFIED 94. The shall be maintained by each registered person who is eligible for input tax credit under the Act on the Common Portal. A. electronic credit ledger B. electronic cash ledger C. electronic current ledger D. None of the Above 95. If a person liable to pay tax, fails to pay such tax or any part thereof shall for the period for which the tax or any part thereof remains unpaid, is liable to pay, on his own, interest not exceeding % A. 24 % B. 15 % C. 28 % D. 18 % 96. CGST credit has to be first utilized against CGST liability and if any balance is available, same can be utilized against A. SGST B. IGST 97. IGST has to be first utilized against IGST liability and if any balance is available, same can be utilized against A. SGST B. CGST C. Both A & B 98. Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of from the relevant date. A. Two years B. Four years C. Eight years D. One year 99. Refund not allowed in case: A. goods exported out of India are subjected to export duty B. goods exported out of India are exempted C. goods exported out of India is made by illegal means D. Both A & C

GOODS AND SERVICE TAX – SIMPLIFIED 100. A. B. C.

Refund is normally credited to the Assessee’s Account Consumer Welfare Fund E- Cash Ledger

101.

if any tax ordered to be refunded under section 54 is not refunded within sixty days from the date of receipt of application interest at such rate not exceeding % A. 18 % B. 6 % C. 12 % D. 8 %

102. A provisional assessment is done when the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, and request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than from the date of receipt of such request. A. 60 Days B. 45 Days C. 90 Days D. 30 Days 103. A. B. C. D.

Who can Conduct General Audit under GST ? Commissioner or officer authorised by commissioner officer not below the rank of Assistant Commissioner officer not below the rank of Commissioner Any officer authorised by Deputy Commissioner

104. A. B. C. D.

Who can Conduct Special Audit under GST ? Commissioner or officer authorised by commissioner officer not below the rank of Assistant Commissioner officer not below the rank of Commissioner Any officer authorised by Deputy Commissioner

GOODS AND SERVICE TAX – SIMPLIFIED

105. The General Audit needs to be completed within a period of date of commencement of the audit. A. Three Months B. Six Months C. 45 Days D. One Month 106. Special Audit shall be ordered by any officer not below the rank of A. Assistant Commissioner B. Deputy Commissioner C. Commissioner

from the

107. A report of audit signed and certified by the appointed is required to be submitted within 90 days in case of Special Audit. A. Chartered Accountant or Company Secretary B. Chartered Accountant or Cost Accountant C. Company Secretary or Cost Accountant D. Chartered Accountant or Cost Accountant or Company Secretary 108. Under GST the proper officer, not below the rank of _ can carry out inspection. A. Joint Commissioner B. Assistant Commissioner C. Deputy Commissioner 109. A proper officer not below the rank of Joint Commissioner or an officer authorised by such proper officer can make an order of seizure in form . A. GST INS-02 B. GST INS-03 C. GST INS-04 D. None of the Above

GOODS AND SERVICE TAX – SIMPLIFIED 110. Goods seized by a proper officer or an authorised officer can be released on a provisional basis upon execution of a bond for the value of goods and furnishing of a security. The bond so executed will be in Form A. GST INS-02 B. GST INS-03 C. GST INS-04 D. None of the Above 111. Where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds 500 lakh Rupees A. imprisonment for a term which may extend to 5 years and with fine B. imprisonment for a term which may extend to 4 years and with fine C. imprisonment for a term which may extend to 2 years and with fine D. imprisonment for a term which may extend to 10 years and with fine 112. The following services shall be treated as inter state supply Where location of the supplier and the place of supply are in A. two different States; B. two different Union territories C. a State and a Union territory D. All of the Above 113. Following will be treated as establishments of distinct persons A. an establishment in India and any other establishment outside India B. an establishment in a State or Union territory and any other establishment outside that State or Union territory C. an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory D. All of the Above 114. Place of supply of Fixed Telecommunication services shall be: A. be the location where telecommunication line, leased circuits, internet leased circuit, cable or dish antenna are installed B. Address of the Service receiver C. Address of the Branch office of the Service Provider D. Any of the Above 115. Union Territory Goods and Services Tax Act, 2017 would not be applicable at A. Dadra and Nagar Haveli B. Chandigarh C. Delhi D. Lakshadweep

GOODS AND SERVICE TAX – SIMPLIFIED 116. A registered person, other than a person opting to pay tax under section 10 of the Central Goods and Services Tax Act as composition levy, shall be entitled to take, in his electronic credit ledger, credit of the amount of Value Added Tax and Entry Tax, if any, carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law, not later than after the said day, in such manner as may be prescribed. A. 90 Days B. 60 Days C. 30 Days D. 45 Days 117. Where any inputs or semi finished goods received at a place of business had been desptached as such or desptached after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within from the appointed day. A. Six months B. Four months C. Three months D. Seven months 118. Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day. A. Three months B. Four months C. Six months D. Seven months

GOODS AND SERVICE TAX – SIMPLIFIED 119. Goods and Services Tax (Compensation to States) Act, 2017 was assented by the President on . A. 12th April, 2017. B. 12th March, 2017. C. 10th April, 2017. D. 18th March, 2017. 120. Under Goods and Services Tax (Compensation to States) Act, 2017, The financial year shall be taken as base year for the purpose of calculating compensation amount payable to the States. A. 2015-16 B. 2016-17 C. 2017-18 121. The projected nominal growth rate of revenue subsumed for a State during the transition period shall be fourteen per cent 14% per annum. A. 16 % B. 10 % C. 12 % D. 14 % 122. Maximum Rate of Compensation Cess on Pan Masala is : A. 120 % B. 135 % C. 150 % D. 100 % 123. A. B. C. D.

Maximum Rate of Compensation Cess on Pan Masala is : 25 % 20 % 15 % 10 %

124.

The subsumption of which taxes will make the GST – a pucca Destination based Consumption Tax CST and Central Excise VAT and Luxury Tax Service Tax and Purchase Tax Taxes on Lotteries and Entertainment Tax

A. B. C. D.

GOODS AND SERVICE TAX – SIMPLIFIED 125. A. B. C. D. 126. A. B. C. D. 127. A. B. C. D.

When did GST come into effect in India? 30th June 2017 1st April 2017 1st January 2017 1st July 2017 The Items which will be taxable both under current Central Excise Law and new GST even after the implementation of the GST Act. Motor Spirit Alcoholic Liquor for Human Consumption Tobacco and Tobacco Products Natural Gas The Dealers who are not eligible for any Threshold Limit in the minimum Registrable Turnover? Casual Dealers and Non-Resident Taxable Persons Input Service Distributors and Dealers making supply through Electronic Commerce Operator Dealers making interstate Supplies and those having Reverse tax Liability All of the Above

128. A. B. C. D.

Dealers not eligible for Opting Compounding Scheme Exporters Importers Interstate Suppliers and those liable to remit Tax on Reverse Charge Basis Manufacturing dealers

129. A. B. C. D. 130. A. B. C. D.

The permissible order of cross utilisation of IGST credit over the tax liabilities SGST, CGST and IGST IGST, CGST and SGST CGST, IGST and SGST CGST, SGST and IGST The Tax applicable to interstate supplies will be: SGST Only CGST Only IGST Only CGST + IGST

GOODS AND SERVICE TAX – SIMPLIFIED 131. The decision of the GST Council should be taken based on majority votes not less than: A. ½ of the weighted votes B. 2/3 rd of the weighted votes C. 1/3 rd of the weighted votes D. 3/4th of the Weighted Votes 132. Who is the Chairman & Head of the GST Council Meeting? A. Prime Minister B. President C. Union Finance Minster D. State Finance Minister nominated by GST Council 133. The quorum required for a meeting of the GST Council will be A. ½ of the members B. 2/3 rd of the members C. 1/3 rd of the members D. 3/4th of the members 134. The number of sections, chapters and Schedules involved in the Model GST Law A. 162 Sections, 25 Chapters and 4 Schedules B. 126 Sections, 52 Chapters and 3 Schedules C. 101 Sections, 21 Chapters and 2 Schedules D. 102 Sections, 20 Chapters and 1 Schedule 135. The permissible number of business verticals in a State in GST will be: A. 25 B. 30 C. 35 D. 40 136. Minimum Service periods required to constitute a continuous supply of services with periodic payment: A. Exceeding 6 months B. 6 Months C. Exceeding 3 months D. 3 months

GOODS AND SERVICE TAX – SIMPLIFIED 137. A. B. C. D. 138. A. B. C. D. 139. A. B. C. D. 140. A. B. C. D. 141. A. B. C. D. 142. A. B. C. D.

Electronic Credit Ledger is Credited by: Cash Deposit towards Tax remittance IPT on IGST,CGST and SGST Cash Deposit towards Fees,Fine,Interest and Penalty Advance tax Remittance CGST and SGST will be levied on; Intra-state supply Inter-state supply Import Export Which one of the following shall not be treated as supply? Rental Lease Actionable claim License Input Means: Any Goods Excluding Capital Goods Any Goods including Capital Goods Capital Goods Only Capital goods used for the furtherance of the Business Works contract is; Supply of goods Supply of services Supply of both Neither supply of goods nor supply of services On which one of the following items, GST will be levied; Aviation fuel Liquefied petroleum Gas Natural Gas High Speed Diesel oil

GOODS AND SERVICE TAX – SIMPLIFIED 143. Suppose One Dealer is not eligible for Composition of Tax. But, remitted Tax Under that scheme. What will be the volume of the compulsory Penalty A. No Penalty at all B. Equal Amount of Tax leviable under Normal Scheme C. Two Times of the tax leviable under Normal Scheme D. Three Times of the tax Levi able under Normal Scheme 144. GST IS : a) Source based b)destination based c) Both a&b d) none of the above 145. CGST and IGST will be levied and administered by a) Central govt c) Both a&b

b) state govt d) none of the above

146. Import under GST will be considered as: a) intra state sale

b)inter state sale

147. Taxpayer whose turnover exceed 1.5 crore but below 5crore use HSN code of A) 2digit

b)3digit

C)4digit

d)6digit

148. Taxpayer whose turnover exceed 5crore have to use HSN code of a)2digit

b)3digit

c)4digit

d)6digit

149. Export under will be treated as : a)zero rated supply

b) nill rated supply

c)both a&b

d)none of the above

150 Composition levy applicable to taxpayer whose turnover not exceed : a) 0lakh

b)50lakh

c)60lakh

d)75lakh

GOODS AND SERVICE TAX – SIMPLIFIED 151. Minimum rate of tax under composition levy for restaurant service; a)1%

b)2%

c)3%

d)5%

152. Who can apply for composition scheme under gst : a)person making inter state outward supply of goods b)supplier of service other than restaurant c)person making supply which are not taxable under gst law d)none of the above 153. Mr A is supplier opted composition scheme when he is required to file his return in respect of supply of july 2017 to sept 2017 a) 0th oct 2017

b)15th oct 2017

c)18th oct 2017

d)20th oct 2017

154. Compute time of supply (in case of supply of shampoo) when its removal on 25/08/2017,date of invoice 31/08/2017,date of payment 01/09/2017 a)25/08/2017

b)31/08/2017

c)01/09/2017

d)none

155. compute time of supply (in case of supply of shampoo) when its removal on 25/08/2017, Date of invoice 21/08/2017, date of payment 01/09/2017 a)25/08/2017

b)21/08/2017

c)01/09/2017

d)none

GOODS AND SERVICE TAX – SIMPLIFIED 156. Determine time of supply (is case of supply of lift or escalator) when it removal on 25/08/2017, good made available 31/10/2017, date of invoice 02/11/2017,date of payment 04/11/2017 a)25/08/2017

b)31/10/2017

c)02/11/2017

d)04/11/2017

157. GSTIN (GOODS & SERVICE TAX IDENTIFICATION NUMBER) contains how many digits: a) 0digit

b)15digit

c)20digit

d)25digit

158. Time period within which invoice has to be issued in case of movable goods a)before or at the time of removal of goods b)on or after delivery of goods c)after remaoval of goods d)none 159. CGST input tax credit used to pay: a) CGST

b)IGST

c)SGST

d)both a&b

160. SGST input tax credit used to pay: a) IGST

b)SGST

c)CGST

d)both a&b

161. IGST input tax credit used to pay : a) IGST

b)SGST

c)CGST

d)all

GOODS AND SERVICE TAX – SIMPLIFIED 162. Under which case ITC is allowed : a)goods given as gift b)goods given as free sample c)goods lost, destroyed or written of d)none 163. A person become liable to pay tax on 1st august 2017 and he has obtain registration on 15th august . such person is eligible for ITC on input held in stock: a) 1st aug 2017

b)31st july2017

c)15th aug 2017

d)he cannt take credit for past perio

164. Time period within which invoice has to be issued in case of immovable goods: a)before or at the time of removal b) at delivery of goods or making available thereof to recipient c)after removal d)none of the abovE 165. Which of the following condition are required to be satisfied by taxable person for obtaining ITC : a)he has in possession of tax invoice b)supplier has actually paid the tax charged to govt: c)he has furnish return under sec 39 d)all

GOODS AND SERVICE TAX – SIMPLIFIED 166. Under which condition contract price will not considered as transaction value; a)when price is not sole consideration b)when both the parties are relatives c)when transaction are deemed to be supply which don’t have price(stock transfer): d) all of the above 167. Which of the following items are not covered in the transaction value: a)packing charge

b)testing charge

c)local cess

d)discount before sale and mentioned in invoice

168. Mr. X has entered into contract with Mr. Y to sale certain goods for Rs 200000. In addition to price following additional amount is also paid by Mr.Y .Packing charge Rs 10000, Local sale Rs 5000.what will be the transaction value: a)Rs 215000

b)Rs 200000

c)Rs 205000

d)Rs 210000

169. Electronic tax liability register of taxpayer maintain in a) GST PMT-01

b)GST PMT-02

c)GST PMT-03

d)GST PMT-04

170. Under which condition interest will be paid on delayed payment: a)person liable to pay tax under provision but not paid b)undue reduction in the output tax liability c)undue or excess claim of ITC d)all of the above

GOODS AND SERVICE TAX – SIMPLIFIED 171. If a person makes undue or excess claim of ITC then on such excess he will be liable to pay interest at the rate of a)10%

b)12%

c)24%

d)30%

172. CPIN will be valid for a) 0days

b)15days

c)20days

d)25days

173. Where does a taxble person kept or maintain accounts a)place mention in certificate of registration b)any place where business is carried on c)place decided by CG & SG d)no such provision in act regarding maintenance of accounts 174. Who is liable to pay the tax in case of Principal and Agent? a)principal

b)agent

c)both jointly &severally

d)jointly

175. When two or more companies are amalgamated, the liability to pay tax on supplies between the effective date of amalgamation order and date of amalgamation order a) Transferee; c)any one of the company d)none

b)respective companies

GOODS AND SERVICE TAX – SIMPLIFIED 176. In case a particular word is not defined in the CGST Act, then it is possible to refer to: a) Companies Act, 1956

b) Companies Act, 2013,

c) Companies Act, 1913

d) General Clauses Act, 1897

177. In case of amalgamation between two companies, such companies shall be treated as Two distinct person till:a)till the date of high court order b)till effective date of merger c) till the date of cancellation of registration d)none 178. Intimation regarding appointment of liquidator should be given to the Commissioner within 30 days of a)liquidation c)appointment of liquidator

b)cancellation of registration d)order of court

179. Commissioner will notify the amount of liability within how many days of intimation a) 3month

b)60days

c)90days

c)2years

180. When shall the Director be not liable to pay the tax dues if the company is not able to pay a) Liquidator refuses to pay

b) Auditor refuses to pay

c) If the non-recovery is not due to gross neglect of the Director d) none of the above

GOODS AND SERVICE TAX – SIMPLIFIED 181. When shall the Director of a private limited company be not liable to pay the tax dues if the company is not able to pay a) in all cases

b)companies refuse to pay c) If the non-recovery is not due to gross neglect misfeasance or breach of duty of the Director d)none 182. Retiring partner should intimate the retirement to a)department c)commissioner

b)government d)all of the above

183. If the intimation is delayed to the Commissioner, then the retiring partner is liable to pay tax dues till: a) The date of intimation to the Commissioner

b) Till the date of acceptance of intimation by the Department c) Till the date of retirement d) Till the date of show cause notice 184. In case of business carried on by minor or other incapacitated person through Guardian/ Agent who is liable to pay tax? a) Guardian

b)friend

c)business partner

d)none

GOODS AND SERVICE TAX – SIMPLIFIED 185. If the estate or any portion of the estate of a taxable person is under the control of the Court of Wards, Administrative General etc., the tax due from such taxable person is liable to be paid by – a)court of wards

b)taxable person

c)legal representative

d)none of the above

186. The Court of Wards, Administrative General, etc., must be appointed by a)supreme court

b)high court

c)any court

d)none of the above

187. Who is liable to pay tax if the business of an individual is discontinued before his death a) Board of Directors or Manager b) Any member of his person who is willing to pay c) Legal representative of taxable person d)employee 188. As per this section, the member or group of members of HUF or AOP is/are liable to pay tax on taxable supplies – a) Even after its partition

b) Upto the time of partition

c)both a &B

d)none

189. In case of discontinuance of HUF business, the liability would arise till the date of a) Discontinuance

b) Court verdict

c) As mutually agreed upon by the HUF members d) Determination of liability by the Department.

GOODS AND SERVICE TAX – SIMPLIFIED 190. In case of discontinuance of the AOP, the liability of the member exists in respect of the tax dues imposed a) Prior to the date of discontinuance b) After the date of discontinuance c)both prior and after discontinuance d)none of the above

191. The expression ‘firm’ would include a _ a)company

b)LLP

c)HUF

d)AOP

192. A bill of supply can be issued in case of inter-State and intra-State: a) Exempted supplies;

b) Supplies by composition suppliers;

c) Supplies to unregistered persons; d) none of the above 193. An acknowledgement must be given on receipt of advance payment in respect of supply of goods or services: a) Yes, in the form of a proforma invoice; b) Yes, as a receipt voucher; c) Yes, the invoice must be raised to that extent; d)none of the above

GOODS AND SERVICE TAX – SIMPLIFIED 194. A continuous supply of goods requires one of the following as a must: a) The goods must be notified by the Commissioner in this behalf; b) The contract for supply lasts for a minimum period of 3 months; c) The supply is made by means of a wire, cable, pipeline or other conduit; d) Supplier invoices the recipient on a regular or periodic basis. 195. The recipient must issue an invoice in the following cases: a) The supplier fails to issue an invoice; b) The supplier is unregistered; c) The goods or services received notified for tax on reverse charge basis d)all of the above 196. A payment voucher need not be raised if the supplier is an unregistered person. a) True, as the recipient is required to issue an invoice in that case; b) True, if the unregistered person does not require it; c) False, a payment voucher is the only document to evidence the supply; d) False, payment voucher should be issued in addition to raising an invoice for the inward supply 197. 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.

GOODS AND SERVICE TAX – SIMPLIFIED 198. In case of goods sent on sale on approval basis, invoice has to be issued: a) while sending the goods; another Invoice has to be issued by the recipient while rejecting the goods; b) while sending the goods but the recipient can take credit only when the goods are accepted by him; c) when the recipient accepts the goods or six months from the date of supply whichever is earlier; d) when the recipient accepts the goods or three months from the date of supply whichever is earlier. 199. If Supply of Services has ceased under a contract before the completion of supply: a) Invoice has to be issued within 30 days on the basis of ‘Quantum Meruit’ from

the date of cessation; b) Invoice has to be issued at the time of cessation to the extent of the supply effected; c) Invoice has to be issued for the full value of the contract after deducting

a percentage thereof as prescribed; d) Invoice cannot be issued as the matter will be sub-judice. 200. A credit note is issued by purposes:

and it is a document accepted for GST

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. 201. For an increase in the tax/ taxable value, a debit note for GST purposes: a) Should be issued by the supplier; b) Should be issued by the recipient; c) May be issued by the supplier; d) May be issued by the recipient.

GOODS AND SERVICE TAX – SIMPLIFIED 202. The last date for declaring the details of a Credit Note issued on 25-Jun-2018 for a supply made on 19-Sep-2017 is: a) 31-Dec-2018 – Actual date for filing annual return b) 20-Jul-2018 c) 20-Sep-2018 d) 20-Oct-2018 203. The receipt voucher must contain: a) Details of goods or services;

b) Invoice reference

c) Full value of supply;

c) None of the above

204. Detail of outward supply shall includes a) invoice

b)credit and debit note

c)revised invoice in relation to outward supply

d)all of the above

205. Supply include which of the following a)service

b)goods

c)goods &service

d)goods and/orservice

206. What is the validity of the registration certificate of gst a) one year

b)five year

c)ten year

d)valid till it is cancelled

GOODS AND SERVICE TAX – SIMPLIFIED 207. Within how many days a person should apply for registration a) within 30 days from the date he become liable for registration b)within 60 days from the date he become liable for registration c)within 90 days from the date he become liable for registration d)no time limit 208. Which of the following are considered for calculating aggregate turnover under composition scheme a)taxable supplies

b)exempted supplies

c)both a&b

d)non taxable supplies

209. Should a person who exclusively engaged in exempted goods requires registration a)no

b)yes

c)government to decide d)can’t say 210. Can composition tax to be collected from customer a)yes

b)no

c)central & state govt to decide

d)none of the above

211. the due date for furnishing the annual return for every financial year by registered taxable person 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 May following the end of the financial year d)31st of December following the end of the financial year

GOODS AND SERVICE TAX – SIMPLIFIED 212. A tax return preparer 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 213. 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 214. The annual return shall be filed by the registered taxable person (other than composition suppliers) in Form a) GSTR-7

b)GSTR-9

c)GSTR-9A

c)GSTR-10

215. The person deducting tax at source shall deposit such amount by a) 18th of the succeeding month b) 0th of the month succeeding the quarter

c) 17th of the succeeding month d)10th of the succeeding month 216. The certificate of details of tax deducted by the deductor shall be furnished to the deductee in Form a) GSTR-7

b)GSTR-7A

c)GSTR-2A

d)GSTR-1A

GOODS AND SERVICE TAX – SIMPLIFIED 217. Every tax payer paying tax under Section 9 (composition levy) shall file the return in a) Form GSTR 3 by 18th of the month succeeding the quarter

b)Form GSTR 4 by 18th of the month succeeding the quarter c) Form GSTR 4 by 18th of the succeeding month d) Form GSTR 4 by 20th of the month succeeding the quarter 218. The details of inward supplies of goods or services in Form GSTR 2 shall be submitted by a) 10th of the succeeding month b)15th of the succeeding month c)20th of the succeeding month d)25th of the succeeding month 219. The details submitted by the outward supplier in Form GSTR 1 shall be furnished to the recipient (not being a composition supplier) in Form a) GSTR-2A

b)GSTR-3A

c)GSTR-5A

d)GSTR-4A

220. Which of the following requires amendment in the registration certificate? a) Change of name of the registered person b) Change in constitution of the registered person c) Switching over form composition scheme to normal scheme or vice versa. d)all the above 221. Auditor have to submit audit report within how many days a)30 days

b)45days

c)60 days

d)90 days

GOODS AND SERVICE TAX – SIMPLIFIED 222. 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 223. 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 15 working days b)not less than 30 working day c)not less than 10 working days d)no prior intimation required 224. 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 the further period not exceeding six month b)by the further period no exceeding five month c)by the further period not exceeding two month d)no extension of time limit permissible 225. 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

GOODS AND SERVICE TAX – SIMPLIFIED 226. 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 not co-operate d) a or b 227. 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

228. 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 registerted person d) any of the above

GOODS AND SERVICE TAX – SIMPLIFIED 229. A taxable person may apply for provisional assessment: a) when the taxable person is not able to determine the value of goods and/orservices b) when the taxable person is not able to determine the rate of tax. c)a or b d) a and b 230. The provisional assessment sought by a taxable person can be used by: a) The taxable person who has sought the provisional assessment. b) The friends and relatives of the taxable person who has sought the provisional assessment. c) The holding/subsidiary company of the taxable person who has sough the provisional assessment. d) none of the above 231. The payment of tax on provisional basis may be allowed, if the taxable person: a) executes a bond in such form as may be prescribed in this behalf b) executes a bond in such form as may be prescribed in this behalf c)a or b c) a & b

GOODS AND SERVICE TAX – SIMPLIFIED 232. What is the time period within which the final assessment order should be passed? a) Six months from the date of the provisional assessment. b) Nine months from the date of the provisional assessment. c)three month from the date of the provisional assessment d)one year from the date of provisional assessment 233. Whether any additional interest/penalty/prosecution will be levi able for nonpayment of tax determined under provisional assessment? a) Only interest specified under Section 50 will be liable. b) Interest u/s 50 + Penalty of Rs. 10,000. c) Only Penalty @ 50% of the default amount. d) No Penalty, only Prosecution. 234. Whether all the returns submitted under Section 39 will be scrutinised? a) No, 50% of the returns submitted under Section 39 will be scrutinised. b) Yes, all the returns submitted under Section 39 will be scrutinised. c) No, Returns submitted under Section 39 will be self-assessed and proper officer may select any return for scrutiny under this Section. d) No, 35% of the returns submitted under Section 39 will be scrutinised. 235. Whether any time limit has been specified to issue notice for scrutiny? a) Six months from the end of the respective financial year. b) No time limit has been prescribed as of now, however same may be prescribed in the rules. c) One Year from the end of the respective financial year. d)three yaer from the end of the respective financial year

GOODS AND SERVICE TAX – SIMPLIFIED 236. What are the consequences, where a registered person fails to furnish the return required under Section 39 or Section 45, even after the service of a notice underSection 46? a) The proper officer may proceed to assess the tax liability of the said person to the best of his judgement. b) issue an assessment order within a period of five years from the date specified under Section44 c)a or b d) a & b 237. Whether the registered person will get immunity from interest & late fee leviable if assessment order passed u/s 62(1) is withdrawn? a) Taxable person will get immunity only from late fee u/s 47. b) No, taxable person will still be liable for interest u/s Section 50 and late fee u/s Section 47. Therefore, no immunity has been provided for the same. c) Taxable person will get immunity from late fee u/s 47 as well as interest u/s 50. d) Taxable person will get immunity only from interest u/s 50. 238. What is the consequence, where a taxable person fails to obtain registration even though liable to do so? a) proper officer may assess the tax liability to the best of his judgement. b) Issue a show cause notice and pass assessment order after providing opportunity of being heard. c)a or b d)a & b

GOODS AND SERVICE TAX – SIMPLIFIED 239. What are the pre requisites for proper officer to pass assessment order under Section 63? a) Period selected for assessment has to be within 5 years from the end of due date for filing annual return of relevant period. b) Show cause notice has to be issued before passing assessment order. c) Opportunity of being heard has to be given before passing assessment order. d)all of the above 240. Whether summary assessment can only be initiated on previously filed return (u/s 39 and u/s 45)? a) Summary assessment can be initiated on a person who has previously filed the return. b) Summary assessment can be initiated on a person who has previously not filed the return. c) (a) or (b). Submission of return u/s 39 and u/s 45 is not prerequisite. d)only b 241. The order u/s 64 may be withdrawn: a) On an application made by taxable person, b) if the Additional/Joint Commissioner considers that such order is erroneous. c) (a) or (b) d) The order passed u/s 64 cannot be withdrawn. 242. Accounts are required to be maintained in a)manual form b)electronic form c)manual or electronic d)manual and electronic

GOODS AND SERVICE TAX – SIMPLIFIED 243. Who of the below, even if not registered, is required to maintain records a) Owner of warehouse

b) Owner of godown

c) Owner of any other place used for storage of goods d)all of the above 244. Can all the records be maintained in an electronic form? a)yes

b)no

c)some record

d)yes if authenticated by digital signature

245. Taxable person has to maintain his records for a period of a) expiry of seventy two months from the last date of filing of Annual Return for the year b) expiry of forty months from the last date of filing of Annual Return for the year c) expiry of thirty months from the last date of filing of Annual Return for the year d) expiry of ninety months from the last date of filing of Annual Return for the year 246. Which of these registers/ledgers are maintained online? a)tax liability register c)cash ledger

b)credit ledger d)all of the above

247. Payment made through challan will be credited to which registers/ledgers? a) Electronic Tax liability register b) Electronic Credit ledger c) Electronic Cash ledger

d)all of the above

248. 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 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

GOODS AND SERVICE TAX – SIMPLIFIED 249. What gets debited to the electronic credit ledger? a) Matched input tax credit

b) Provisionally input tax credit

c) Unmatched input tax credit

d)all of them

250. Balance in electronic credit ledger can be utilized against which liability? a)out tax payable

b)penalty

c)interest

d)all of the above

251. 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 252. 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 253. Balance in electronic credit ledger under SGST can be used against which liability? a) SGST Liability only

b)SGST and IGST liability

d) SGST, IGST and CGST liability d)none 254. 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

b) It will be adjusted on application/request d)none

GOODS AND SERVICE TAX – SIMPLIFIED 255. 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-adjustmen c) Adjustment on application/request d) Raise ISD invoice and transfer 256. Taxable person made an online payment of tax. Due to technical snag CIN was not generated but my bank account is debited. What should he do? a) Wait for 24 hours for re-credit b) Approach bank c) File application with department d) File return without challan 257. What is the due date for payment of tax? 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 258. A Company has head office in Bangalore and 4 branches in different states, all registered under GST and one ISD registered unit in Delhi. How many electronic cash ledgers will the company have? a)1

b)2

c)3

d)5

259. What is the validity of challan in FORM GST PMT-06? a)1

b)5

c)15

d)perpetual validity

GOODS AND SERVICE TAX – SIMPLIFIED 260. A taxable person failed to pay tax and/or file returns on time. He should pay interest on? a)gross tax payable b) Gross tax payable & input credit claimed c)net tax payable d)no interest payable if reasonable cause 261. What is the rate of TDS? a) 1%

b)2%

c)5%

c)18%

262. 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

263. What is the time limit for issue of order in case of fraud, misstatement or suppression? a) 0month

b)18month

c)5 years

d)3years

264. What is the time limit for issue of order in case of other than fraud, misstatement or suppression? a) 0month

b)18month

c) 5yrs

d)3yrs

GOODS AND SERVICE TAX – SIMPLIFIED 265. Is it obligatory on the part of the Department to take on record the assessee’s representation during adjudication and issue of order? a)yes

b)no

c)at proper officer’s discretion

d)if requested by notice

266. 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)Rs10000 c)any amount of tax +interest+25%penalty d) Amount of tax + interest + penalty of 10% of tax or Rs.10,000/- whichever is higher 267. Any amount of tax collected shall be deposited to the credit of the Central or State Government: a)only when supplies are taxable b)only when supplies are not taxable c) Regardless of whether the supplies in respect of which such amount was collected are taxable or not d)none 268. What happens if a taxable person has paid IGST (in IGST Act) on a transaction considered by him to be an inter-state supply but which is subsequently held to be an intra-state supply? a)seek fund

b)adjust against future liabilities

c)take re-credit

d)file a suit of recovery

269. Culpable mental state includes a) Intention

b)motive

c)knowledge of the fact

d) all of the above

GOODS AND SERVICE TAX – SIMPLIFIED 270. Under which article of the Constitution the GST Council has been constituted? a) 279(A)

b) 279 (B)

c) 32

d) 372

271. By which Constitutional Amendment bill the GST was passed ? a) 122nd

b) 101st

c) 121st

d) 120th

272. The fist Indian State to pass the GST Bill was? a) Mizoram

b) Manipur

c) Kerala

d) Assam

273. How many years will the Central Govt. pay to states for loss due to GST ? a) 4

b) 5

c) 6

d) 7

274. Which Committee suggested GST in India ? a) Kelkar Committee

b) Mehta Committee

c) Tendulkar Committee

d) J. J. Irani Committee

275. Name the Bill which has been passed by the Rajya Sabha on August 3, 2017. a) GST Bill

b) Women Reservation Bill

c) Companies Amendment bill

d) FEMA (Amendment) Bill

276. How much additional tax can the Centre impose on the inter-state supply of goods for two years or more ? a) 1 %

b) 3 %

c) 5 %

d) 7 %

GOODS AND SERVICE TAX – SIMPLIFIED 277. The Central Board of Excise and Customs (CBEC) has recently announced that will be observed as GST Day ? a) 1st June

b) 1st July

c) 30st June

d) 1st August

278. The maximum rate of tax prescribed for manufactures in Composition levy is ( CGST +SGST) A) 1 %

B) 5%

C) 0.5%

D) 2.5 %

279. What is IGST? a) Integrated Goods and Service Tax

b) Indian Goods and Service Tax

c) Initial Goods and Service Tax

d) None

280. The Goods and Services Tax (GST) was first proposed in which year? a) 2001

b) 2000

c) 2002

d) 2003

281. The IGST is charged by? a) Central Government of India

b) State Government

c) Union Territory

d) Both A & B

282. is doing away with indirect taxes such Central Excise Duty, Service Tax, Addl. Customs Duty, Special Addl. Customs Duty as well as Addl. Excise Duty. a) SGST

b) UTGST

c) CGST

d) All of the Above

283. Transaction fee on various banking and financial services are expected to go up as GST will tax these services under per cent tax rate from the current 15 per cent. a) 21 % c) 18%

b) 16% d) 28%

GOODS AND SERVICE TAX – SIMPLIFIED 284. Ayurvedic products comes under which rate structure? a) 12% c) 5 %

b) 18 % d) 0%

285. What is the Tax Rate on essential items like salt, unpacked food grains, healthcare services ? a) 1 %

b) 0%

c) 2 % d)3% 286. Under GST, smartphones will be taxed at a) 5 %

b) 12 %

c) 18 %

d) 28 %

per cent.

287. Which of the following statement is Correct ? 1) Goods and Services Tax Network (GSTN) is a non-profit organisation formed to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for the implementation of GST. 2) The government of India holds 51% stake in GSTN. a) 1 Only

b) 2 Only

c) Both 1 & 2

d) None

288. Who is the highest authority for appeals under GST? a) Ministry of Finance

b) CBEC

c) Supreme Court

d) State High Court

289. Which of the following forms are used for registration? a) Form GSTR -1

b) Form GSTR – 2

c) Form GST REG-01

d) Form GST REG

GOODS AND SERVICE TAX – SIMPLIFIED 290. A person having business verticals in a State registration for each business vertical. a) Single, shall

b) Multiple, shall

c) Multiple, may

d) Single, May

obtain a separate

291. When can a voluntarily registered person’s registration be cancelled? (a) If the person does not start business within six months from the date of registration. (b) Business has been discontinued or transferred for any reason. (c) Non-filing of returns for a continuous period of six months or for three consecutive tax period in case of composite dealer. (d) All of the above 292. An Unique Identity Number will be allotted to the following persons upon submitting an application: (a) All the taxable persons can apply. (b) Only unregistered persons can apply. (c) Specialized agency of the UNO or any multilateral financial institution or consulate or embassy of foreign countries. (d) No such concept under CGST/SGST Act. 293. 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

GOODS AND SERVICE TAX – SIMPLIFIED 294. 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 295. Is it obligatory on the part of the Department to take on record the assessee’s representation during adjudication and issue of order? (a) Yes notice

(b) No

(c) At proper officer’s discretion (d) If requested by

296. 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 (c) Take re-credit

(b) Adjust against future liability (d) File a suit for recovery

297. 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

298. Which section specifies the conditions to be fulfilled for claiming ITC on inputs and/or capital goods sent to job-worker? (a) 19

(b) 55

(c) 143

(d) 177

GOODS AND SERVICE TAX – SIMPLIFIED 299. Who of the following would be liable, when they disclose information collected from information return/ statistics u/s 150 and 151 respectively? (a) Departmental officer – when information disclosed while executing duties (b) Agent of GST portal – when information disclosed while executing duties (c) Person engaged in GST portal - when information disclosed while executing duties (d) None of the above 300. What action should be taken by an assessee to satisfy with anti-profiteering provision? (a) Reduce rate of tax on any supply of goods or service, if such assessee has got the benefit of such reduced rate (b) Pass on the benefit of input tax credit, if such assessee has got such input tax credit (c) Both (a) and (b)

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GOODS AND SERVICE TAX – SIMPLIFIED

ANSWERS TO THE GST - SIMPLIFIED MCQ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

A d a d D A A A A A d d c d b d C d a a d D c a d c b a a C A a C c a

36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

C b D c b c D c C A b A A A A A C D A A A B C D C A C A A B C A D A E

71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105

C C D D B A A A D B A A A B A A A B B B B C A A D B C A A B B C A B A

106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140

A B A A C A D D A C A A C A A D B C A D C D C B C D C A A C C B A C A

141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175

B B B B A B A C A D D D C A B B B A D D D D B B D D D A A D C B A C B

GOODS AND SERVICE TAX – SIMPLIFIED

187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210

C B A C B A B D B D A C B A A D A D D D A C A B

222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245

d A a c d a A C A D a a c b d d d d c c c d d a

257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280

c d c A a d c d a d c A d a a d b a a a b b a b

293 294 295 296 297 298 299 300

a a c a c a d c