NIRMALA COLLEGE OF COMMERCE MALAD (E)

T.Y.BCOM SEM-VI ( Regular)

Subject - Indirect Tax
Question Bank-2020

1) GST Stands for

a) Goods and Supply Tax
b) Government Sales Tax
c) Goods and Services Tax
d) Good and Simple Tax

2) GST is levied in India on the basis of Principle.

a) Origin
b) Destination
c) Either a or b
d) Both a or b

3) Which of the following is not a bill passed by parliament for the implementation of GST in India?
a) The Central GST Act, 2017
b) The State GST Act, 2017
c) The Integrated GST Act, 2017
d) None of above

4) ______ Petroleum products have been temporarily been kept out of GST.
a) One
b) Two
c) Three
d) Five

5) In India, GST structure is______ in nature.

a) Single
b) Dual
c) Triple
d) (a) & (b) both

6) GST is not levied on which of the following ?

a) Alcoholic Liquor for Human Consumption
b) Five Petroleum Products
c) Immovable Property
d) All of above

7) ______ is levied on Intra-State Supply of goods and/or Services.

a) CGST
b) SGST
c) IGST
d) Both a & b
Prof. Satish Pandey
8) _______ is levied on Inter State Supply of Goods and/or Services.
a) CGST
b) SGST
c) IGST
d) Both a & b

9) _______ is levied on Intra State Supply of Goods and/or Services in Union Territory.
a) SGST
b) IGST
c) UTGST
d) GST is not levied

10) Goods and Services Tax is a tax levied on goods and services imposed at each point of ______
a) Sale
b) Service
c) Supply
d) Manufacturing

11) The following tax has been subsumed into Central GST.
a) Central Sales Tax
b) Custom Duty
c) Service Tax
d) All of the above

12) GST was introduced in India on

a) 1-4-2017
b) 1-5-2017
c) 1-6-2017
d) 1-7-2017

13) Indian GST model has______ tier rate structure.

a) 3
b) 4
c) 5
d) 6
14) What does ‘I’ stands for in IGST?
a) International
b) Internal
c) Integrated
d) Intra
15) Which of the following tax is not subsumed in GST ?
a) VAT
b) Stamp Duty
c) Entry Tax
d) Entertainment Tax
Prof. Satish Pandey
16) HSN Code Stands for
a) Home Shopping Network
b) Harmonised System of Nomenclature
c) Harmonised System Number
d) Home State Number

17) Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural
gas and aviation turbine fuel have been kept out of GST____________
a) Permanently
b) Temporarily
c) For one year
d) None of the above

18) The definition of goods under section 2(52) of the CGST Act does not include-
a) Grass
b) Money and securities
c) Actionable claims
d) Growing crops

19) Securities are excluded from the definition of____________

a) Goods
b) Services
c) Both (a) and (b)
d) Neither (a) nor (b)

20) Money is____________

a) Specifically included in the definition of goods
b) Specifically included in the definition of services
c) Specifically excluded from the definition of goods as well as services
d) None of the above

21) What are different types of supplies covered under the scope of supply?
a) Supplies made with consideration
b) Supplies made without consideration
c) Both of the above
d) None of the above

22) The activities to be treated as supply of goods or supply of services as referred to in________ of
CGST Act,2017.
a) Schedule I of CGST Act
b) Schedule II of CGST Act
c) Schedule III of CGST Act
d) Section 7

Prof. Satish Pandey

23) Which of the following taxes will be levied on Imports?
a) CGST
b) SGST
c) IGST
d) None of the above

24) _______ specifies the activities to be treated as supply even if made without Consideration
a) Schedule I of CGST Act
b) Schedule II of CGST Act
c) Schedule III of CGST Act
d) All of the above

25) Supply includes import of services for a consideration____________

a) Only if in the course or furtherance of business
b) Only if not in the course or furtherance of business
c) Whether or not in the course or furtherance of business
d) None of the above

26) ______________Specifies the activities which are neither to be treated as supply of goods nor a
supply of Services.
a) Schedule I of CGST Act
b) Schedule II of CGST Act
c) Schedule III of CGST Act
d) All of the above

27) Transfer of the title in goods shall be considered as____________

a) Supply of goods
b) Supply of services
c) Neither as a supply of goods nor a supply of services
d) Either as a supply of goods or a supply of services

28) Any treatment or process which is applied to another person’s goods shall be treated as_______
a) Supply of goods
b) Supply of services
c) Neither as a supply of goods nor a supply of services
d) Either as a supply of goods or a supply of services

29) Renting of immovable property is_____________

a) Supply of goods
b) Supply of services
c) Neither as a supply of goods nor a supply of services
d) Either as a supply of goods or a supply of services

Prof. Satish Pandey

30) Services by an employee to the employer in the course of or in relation to his employment
is_________
a) Supply of goods
b) Supply of services
c) Neither as a supply of goods nor a supply of services
d) Either as a supply of goods or a supply of services

31) Services of funeral, burial, crematorium or mortuary including transportation of the deceased
shall be treated as__________
a) Supply of goods
b) Supply of services
c) Neither as a supply of goods nor a supply of services
d) Either as a supply of goods or a supply of services

32) Actionable claims, other than lottery, betting and gambling shall be treated as____________
a) Supply of goods
b) Supply of services
c) Neither as a supply of goods nor a supply of services
d) Either as a supply of goods or a supply of services

33) What would be the tax rate applicable in case of composite supply?
a) Tax rate as applicable on principal supply
b) Tax rate as applicable on ancillary supply
c) Tax rate as applicable on respective supply
d) None of the above

34) What would be the tax rate applicable in case of mixed supply?
a) Tax rate as applicable on supply attracting the lowest rate of tax
b) Tax rate as applicable on supply attracting the highest rate of tax
c) Tax @ 28%
d) None of the above

35) A supply comprising of two or more supplies shall be treated as the supply of that particular
supply that attracts highest rate of tax.
a) Composite
b) Mixed
c) Both (a) and (b)
d) None of the above

36) What is the maximum rate prescribed under CGST Act?

a) 12%
b) 28%
c) 20%
d) 18%

Prof. Satish Pandey

37) Who will notify the rate of tax to be levied under CGST Act?
a) Central Government suo moto
b) State Government suo moto
c) GST Council suo moto
d) Central Government as per the recommendations of the GST Council

38) What is the maximum rate prescribed under UTGST Act?

a) 14%
b) 28%
c) 20%
d) 30%

39) In case of sponsorship services provided by Mr. A to M/s AB Ltd. ,liability to pay GST is on:
a) Mr. A
b) M/s AB Ltd.
c) Both
d) None of the above

40) In case of services by an insurance agent to Ms. ABC Insurance Co. Ltd., GST is to be paid by:
a) Insurance Agent
b) ABC Insurance Co. Ltd.
c) Both
d) None of the above

41) Sitting fees received by director of XYZ Ltd., is liable for GST in the hands of the
a) Director
b) XYZ Ltd.
c) Both of above
d) None of the above

42) Reverse charge under section 9(3) of the CGST Act is applicable:
a) Only on notified services
b) Only on notified goods
c) On Notified goods & services
d) On None of the above

43) Reverse charge is applicable:

a) Only on intra-State supplies
b) Only on inter-State supplies
c) Both intra-State and inter-State supplies
d) None of the above
44) What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for States other than special category States?
a) ₹ 20 lacs
b) ₹ 10 lacs
c) ₹ 50 lacs
d) ₹ 1.5 crore
Prof. Satish Pandey
45) What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for special category states?
a) ₹ 25 lacs
b) ₹ 50 lacs
c) ₹ 75 lacs
d) ₹ 1 crore

46) What is the rate applicable under CGST to a registered person being a manufacturer opting to
pay taxes under composition scheme?
a) 2.5%
b) 1%
c) 0.5%
d) No composition for manufacturer

47) Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST.
Determine the rate of total GST payable by him under composition scheme:
a) 0.5% CGST & 0.5% SGST
b) 2.5% CGST & 2.5% UTGST
c) 5% IGST
d) 5% UTGST

48) Can composition scheme be availed if the registered person effects inter-State supplies?
a) Yes
b) No
c) Yes, subject to prior approval of the Central Government
d) Yes, subject to prior approval of the concerned State Government

49) Can a registered person under composition scheme claim input tax credit?
a) Yes
b) No
c) Input tax credit on inward supply of goods only can be claimed
d) Input tax credit on inward supply of services only can be claimed

50) Which of the following will be excluded from the computation of ‘aggregate turnover’?
a) Value of taxable supplies
b) Value of exempt Supplies
c) Non-taxable supplies
d) Value of inward supplies on which tax is paid on reverse charge basis

51) What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for a trader in Mumbai?
a) ₹ 30 lacs
b) ₹ 10 lacs
c) ₹ 150 lacs
d) ₹ 75 lacs

Prof. Satish Pandey

52) For certain Special category States, the reduced limit of ₹ 75 lakhs for opting composition
scheme is available. The reduced limit of ₹ 75 Lakhs is not available for?
a) Manipur
b) Meghalaya
c) Himachal Pradesh
d) Jammu & Kashmir

53) Services to a single residential unit is, exempted if:

a) It is pure labour service only
b) It is works contract only
c) It is a part of residential complex only
d) It is on ground floor without further super structure

54) Services by a hotel, inn, guest house, club or campsite are exempted for residential / lodging
purposes –
a) If the actual tariff for a unit of accommodation is below ₹ 10,000
b) If the actual tariff for a unit of accommodation is below ₹ 1,000
c) If the actual tariff for a unit of accommodation is exactly `₹ 1,000
d) If the actual tariff for a unit of accommodation is above ₹ 1,000

55) Transportation of passengers exempted if –

a) It is by air-conditioned stage carriage
b) It is by air-conditioned contract carriage
c) It is by non-air-conditioned stage carriage for tourism, charter or hire
d) None of the above

56) Transportation of goods is not exempted if it is –

a) by a goods transport agency / courier agency
b) by inland waterways
c) by an aircraft from a place outside India upto the customs station of clearance in India
d) by all the above mentioned

57) Which of the following is exempted –

a) Services by way of loading, unloading, packing, storage or warehousing of rice
b) Services by way of loading and unloading of jute
c) Services by way of packing and storage or warehousing of rubber
d) None of the above

58) One of the following is exempted from GST –

a) Any business exhibition
b) A business exhibition in India
c) A business exhibition outside India
d) None of the above

Prof. Satish Pandey

59) Services by educational institution is exempted if the services are to –
a) Any common man
b) Its own students, faculty / staff
c) Both a & b
d) None of the above

60) Transportation of passengers by_______ are exempt from GST.

a) Railway in first class
b) Railway in an air-conditioned coach
c) Metro
d) All of the above

61) Transportation of passengers by _________are exempt from GST.

a) air conditioned stage carriage
b) radio taxi
c) air, terminating in Nagaland airport
d) All of the above

62) Which of the following services provided by Department of Posts are exempt from GST?
a) Speed posts
b) Life Insurance
c) Express parcel posts
d) None of the above

63) Distribution of electricity by a distribution utility is a:

a) Non-taxable supply
b) Exempt Supply
c) Nil Rated Supply
d) Neither supply of goods nor supply of services

64) An exempt supply includes

a) Supply of goods or services or both which attracts Nil rate of tax
b) Non-taxable supply
c) Supply of goods or services or both which are wholly exempt from tax under Section 11 of the
CGST Act or under Section 6 of IGST Act
d) All of the above

65) What is time of supply of goods, in case of forward charge?

a) Date of issue of invoice
b) Due date of issue of invoice
c) Date of receipt of consideration by the supplier
d) Earlier of (a) & (b)

Prof. Satish Pandey

66) Determine the Time of supply in case goods are supplied on approval basis Removal of goods :
01-12-2019 Issue of Invoice : 15-12-2019 Accepted by recipient : 05-12-2019 Receipt of payment :
25-12-2019
a) Removal of goods : 01-12-2019
b) Issue of Invoice : 15-12-2019
c) Accepted by recipient : 05-12-2019
d) Receipt of payment : 25-12-2019

67) Where the supplier of taxable goods receives an amount upto _____________ in excess of the
amount indicated in the tax invoice, the time of supply to the extent of such excess amount
shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess
amount.
a) 1,000
b) 5,000
c) 10,000
d) 50,000

68) Tax invoice must be issued by_____ on supplies made by him.

a) Every supplier
b) Every taxable person
c) Every Registered person not paying tax under composition scheme
d) All the above
69) An invoice must be issued
a) At the time of removal of goods
b) On transfer of risks and rewards of the goods to the recipient
c) On receipt of payment for the supply
d) None of the above

70) Where the goods being sent or taken on approval for sale or return are removed before the
supply takes place, the invoice shall be issued
a) before/at the time of supply
b) 6 months from the date of removal
c) earlier of (a) or (b)
d) none of the above
71) What is time of supply of goods liable to tax under reverse charge mechanism?
a) Date of receipt of goods
b) Date on which the payment is made
c) Date immediately following 30 days from the date of issue of invoice by the supplier
d) Earlier of (a) or (b) or (c)
72) What is the time of supply of vouchers when the supply with respect to the voucher is
identifiable?
a) Date of issue of voucher
b) Date of redemption of voucher
c) Earlier of (a) and (b)
d) (a) and (b) whichever is later
Prof. Satish Pandey
73) What is the time of supply of vouchers when the supply with respect to the voucher is not
identifiable?
a) Date of issue of voucher
b) Date of redemption of voucher
c) Earlier of (a) and (b)
d) (a) and (b) whichever is later

74) What is date of receipt of payment?

a) Date of entry in the books
b) Date of payment credited into bank account
c) Date of deposit of cheque into bank account
d) Earlier of (a) and (b)

75) What is the time of supply of service if the invoice is issued within 30 days from the date of
provision of service?
a) Date of issue of invoice
b) Date on which the supplier receives payment
c) Date of provision of service
d) Earlier of (a) and (b)

76) Determine the TOS in accordance with provisions of CGST Act, 2017. Date of actual supply of
service - 10th Nov. 2018 Date of Invoice - 30th Nov. 2018 Date on which payment received - 15th
Dec. 2019
a) 10th Nov. 2018
b) 30th Nov. 2018
c) 15th Nov. 2018
d) 10th Dec. 2018
77) Determine the TOS in accordance with provisions of CGST Act, 2017 Date of actual supply of
service - 10th Nov. 2019 Date of Invoice - 30th Nov. 2019 Date on which payment received - 15th
Nov. 2019
a) 10th Nov. 2019
b) 30th Nov. 2019
c) 15th Nov. 2019
d) 10th Dec. 2019

78) Determine the TOS in accordance with provisions of CGST Act, 2017 Date of actual supply of
service - 10th Nov. 2019 Date of Invoice - 22th Dec. 2019 Date on which payment received - 12th
Dec. 2019
a) 10th Nov. 2019
b) 22th Dec. 2019
c) 12th Dec. 2019
d) 10th Dec. 2019
79) The tax invoice should be issued_____ the date of supply of service.
a) Within 30 days from
b) Within 2 months from
c) Within 15 days from
d) On
Prof. Satish Pandey
80) 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

81) Place of supply of a transaction in territorial waters is

a) Location of the supplier
b) Location of the recipient
c) Coastal state where the nearest point of the appropriate baseline is located
d) None of the above

82) What is rate of tax of IGST?

a) CGST rate
b) SGST rate
c) CGST + SGST rate
d) VAT rate

83) Import/Export is treated as____________ in GST.

a) Intra-state supply
b) Inter-state supply
c) Non-taxable supply
d) Exempted supply
84) Zero rated supply includes
a) Export of goods or/and services
b) Supply of goods or/and services to a SEZ developer or SEZ Unit
c) Supply of goods or/and services by a SEZ developer or SEZ Unit
d) Both (a) and (b)
85) Place of supply in case of installation of elevator is
a) Where the movement of elevator commences from the supplier’s place
b) Where the delivery of elevator is taken
c) Where the installation of elevator is made
d) Where address of the recipient is mentioned in the invoice
86) What is location of supply in case of importation of goods?
a) Customs port where the goods are cleared
b) Location of the importer
c) Place where the goods are delivered after clearance from customs port
d) Owner of the goods
87) Where will be the place of supply when the goods are supplied on the direction of the third
party?
a) Location of the supplier
b) Location of the recipient
c) Location of the third party
d) Any of the above
Prof. Satish Pandey
88) The place of supply of goods exported from India shall be the
a) Location of the importer
b) Location of the exporter
c) Location of the agent of exporter
d) Location outside India

89) Place of supply of services in relation to lodging accommodation shall be the

a) Location of the supplier
b) Location of the recipient
c) Location at which the lodging accommodation is located
d) Any of the above

90) The place of supply of insurance services to a registered person, shall be the
a) Location of the supplier
b) Location of the recipient
c) Location where the services are performed
d) Any of the above

91) The value of supply of goods and services shall be the

a) Transaction value
b) MRP
c) Market Value
d) None of above

92) Which of the following shall not be included in value of supply?

a) GST
b) Interest
c) Late fee
d) Commission

93) The value of taxable supply should not include –

a) Taxes levied under SGST Act, 2017
b) Taxes levied under CGST Act, 2017
c) Taxes levied under GST Compensation Cess Act, 2017
d) All of the above

94) From the following information determine the value of taxable supply as per provisions of
Section 15 of the CGST Act, 2017? Contracted value of supply of goods (including GST @ 18%)
11,80,000 The contracted value of supply includes the following: (1) Cost of primary packing
25,000 (2) Cost of protective packing at recipient’s request for safe transportation 15,000
a) 10,00,000
b) 11,80,000
c) 11,55,000
d) 11,40,000

Prof. Satish Pandey

95) When deductions are allowed from the Transaction Value?
a) Discount offered to customers subject to conditions
b) Freight charges
c) Incidental expenses
d) Amount paid by customer on behalf of the supplier

96) If the goods are supplied to related person then how should the taxable person ascertain the
value of supply
a) Seek the help of the GST officer
b) Use the arm’s length price as required under the income tax law
c) Identify the prices at which goods are sold by the unrelated person to his customer
d) As per rule 28 of the CGST rules

97) Whether definition of Inputs includes capital goods.

a) Yes
b) No
c) Certain capital goods only
d) None of the above
98) Whether credit on capital goods can be taken immediately on receipt of the goods?
a) Yes
b) No
c) After usage of such capital goods
d) After capitalizing in books of Accounts

99) The time limit to pay the value of supply with taxes to avail the input tax credit?
a) Three months
b) Six Months
c) One hundred and eighty days
d) Till the date of filing of Annual Return

100) Whether depreciation on tax component of capital goods and Plant and Machinery and
whether input tax credit is Permissible?
a) Yes
b) No
c) Input tax credit is eligible if depreciation on tax component is not availed
d) None of the above

101) What is the maximum time limit to claim the Input tax credit?
a) Till the date of filing annual return
b) Due date of September month which is following the financial year
c) Earliest of (a) or (b)
d) Later of (a) or (b)

Prof. Satish Pandey

102) ITC can be taken on goods if goods not received by registered person but
a) By his agent on his direction
b) By the job worker on his instruction
c) By any other person on his direction
d) Any of above

103) ITC can be availed on

a) Possession of prescribed invoice/ debit note
b) Receipt of goods/services
c) Tax on such supply has been paid to government and return being furnished by the supplier
d) Fulfilling all the above conditions

104) ITC can be claimed by a registered person for

a) Taxable supplies for business purpose
b) Taxable supplies for non-business purpose
c) Exempted supplies
d) Non-taxable supplies

105) Which of the following forms are used for registration?

a) Form GSTR-1
b) Form GSTAPL-01
c) Form GST REG-01
d) Form GST RFD-01

106) Within how many days a person should apply for registration?
a) Within 60 days from the date he becomes liable for registration.
b) Within 30 days from the date he becomes liable for registration.
c) No Time Limit
d) Within 90 days from the date he becomes liable for registration

107) A person having___ business verticals in a State______ obtain a separate registration for each
business vertical.
a) Single, shall
b) Multiple, shall
c) Multiple, may
d) Single, May

108) An E-commerce operator should get registered?

a) Yes, irrespective of threshold limit
b) No, required to register only if his aggregate turnover exceeds the threshold limit.
c) Yes, if he is located in North-western states.
d) He is required to register if he is liable to collect tax at source and /or his aggregate
turnover exceeds the threshold limit

Prof. Satish Pandey

109) What is the validity of the registration certificate?
a) One year
b) No validity
c) Valid till it is cancelled
d) Five years

110) Who can submit application for registration in Form GST REG-09?
a) Non- Resident taxable person
b) Input service distributor
c) Person deducting tax at source
d) Person collecting tax at source

111) Which of the following require compulsory registration, irrespective of threshold limit ?
a) Casual taxable person
b) Non Resident taxable person
c) Person liable to pay under Reverse Charge Mechanism
d) All of the above

112) Mr. A has started supply of goods and services in Delhi. He is required to obtain registration, if
his aggregate turnover exceeds _____________during a financial year.
a) ₹ 10 lakh
b) ₹ 20 lakh
c) ₹ 30 lakh
d) ₹ 50 lakh

113) Aggregate turnover includes

a) Taxable supplies
b) Exempt supplies
c) Exports
d) All of the above

114) Taxable minimum turnover limit in GST that is applicable to the State of Maharashtra
a) 10 lakhs
b) 25 lakhs
c) 1.5 crores
d) 20 lakhs

115) Shall a dealer making the exclusive supply of Liquor or Petrol, Diesel and Crude Oil have to take
registration under the GST Act?
a) Yes
b) No
c) Optional
d) Either (a) or (c)

Prof. Satish Pandey

116) Who is called a Deemed supplier of Services?
a) Input Service Distributor
b) Job Worker
c) Agent
d) Subsidiary Company

117) which of the following has kept out of the GST levy?
a) Generator
b) Computer
c) Jewellery
d) Electricity

118) Which of the following incomes/activities is liable for GST?

a) Salary
b) Salary and allowances MPs
c) Services by court
d) Sale of Jewellery

119) In the case of manufacturer who opts for composition scheme the rate of GST
(including CGST and IGST) is
a) 1%
b) 2%
c) 3%
d) 5%

120) Which of the following though shown in bill will not be included in determining the value of
supply for the purpose of GST?
a) Packing
b) Discount
c) Interest for late payment
d) Installation charges

Prof. Satish Pandey