Multi Choice Questions (MCQ’s) on GST for CA/CMA/CS
Q1. M/s Utkal Auto, Bhubaneswar registered under GST in Odisha is authorised dealer of Hero motors. It has a policy to gift a Hero motorcycle to its employee at the end of the financial year in terms of the employment contract. During the month of March 2019, the company gifted 35 motor cycles among its employees whose open market value comes to Rs.18.41 lakhs (excluding GST). GST rate 28%. Compute GST liability in the hands of M/s Utkal Auto.
a) 5,15,480
b) Rs.16,380
c) Nil
d) Taxable in the hands of employee
Q2. M/s Craft Emporium, an un-registered person in the state of Rajasthan deals in handicraft goods. He carried Handicraft goods worth Rs.45,000/-through his own vehicle for supply to a shop keeper of Delhi. The proper office intercepted the vehicle enroute to Delhi & asked for E-Way bill. The driver of vehicle argued that E Way bill not required, since the value of consignment is less than Rs.50,000/-. Which one of the following statement is true.
a) E-Way bill is required in case of interstate supply, only if the value consignment is more than Rs.50,000/-.
b) E Way is required is required only for supply of taxable goods
c) E Way bill not required when supplied by an unregistered person
d) E way is mandatory in case of interstate supply of Handicraft goods irrespective of value of consignment.
Q3.In which of the following supply of goods & services to Govt department/local authorities, TDS is required to be deducted by the recipient U/s 51 of the CGST Act,2017 ?
a) Municipal Corporation of Delhi purchased street lights & paid Rs. 1.5 lakhs (including GST) to M/s Bajaj Electrical, Noida against a supply order of Rs.8 lakhs during the month of March 2019.
b) A Government school of Bhubaneswar, paid Rs.3.8 lakhs to a local supplier for supply of cooked foods as mid-day meals under a scheme sponsored by Odisha Government.
c) Health Department of West Bengal executed a contract with a supplier of Kolkata to supply “Medical grade oxygen” and paid Rs.2.6 lakhs (including GST).
d) Ministry of finance, Govt of India paid Rs.2.5 lakhs (including GST) to a supplier for supply of printing of stationery.
e) Govt of Madhya Pradesh paid Rs.50 lakhs (including GST) to M/s BHEL (a Central PSU) against supply of a Transformer.
Q4.Which of the following is a taxable supply under GST Act ?
a) Transportation of deceased person through a hired vehicle
b) Gift of office laptop by an employer to its employee on which ITC availed
c) A new laptop worth Rs.45,000/- gifted by an employer to its employee
d) Fines/penalty/LD paid by a contractor to govt for delay/non performance of contract
e) Gift of merchandise goods given by a registered person to its customers
Q5.Which of the following service is taxable under RCM in the hands of recipient of said service?
a) Transportation of goods by a GTA to un-registered person
b) Legal service provided by an Advocate to an NGO registered under GST
c) Renting of shops by Municipality to a registered person
d) Security services provided by an unregistered entity to registered business entity
Q6.In which of the following cases, Advance ruling under GST can not be sought ?
a) Determination of time and value of supply of goods or services or both
b) Determination of whether a particular transaction is supply of goods or services or both
c) Applicability of a notification issued under CGST Act
d) Determination of place of supply
Q7. Mr X dispatched goods costing 8 lakhs to Mr Y through a hired vehicle with a tax invoice. The Market value of said goods are Rs.10 lakhs & GST payable thereon is @18%. The goods are confiscated by the proper officer, since it was supplied in contravention of the provision of CGST Act,2017 with an intent to evade tax. Determine the maximum amount of fine that can be imposed in lieu of confiscation U/s 130(2) of CGST Act?
a) 25,000
b) 36,000
c) 1,80,000
d) 8,20,000
Q8. Mr Rao, a registered person has made following supply during the month of Feb 2019.
| Particulars | Amount (Rs.) |
| Intra state supply | 6 lakhs |
| Supply to SEZ (located within the state) | 2 lakhs |
| Export of goods to Thailand | 3 lakhs |
| Rate of GST | 18% |
| Input Tax credit available in Electronic credit ledger for the month of Feb 2019 prior to above adjustment | IGST – Nil
CGST-Rs.50,000 , SGST-Rs.60,000 |
He does not intend to clear the goods for export under LUT/bond & instead want to pay GST. Compute GST payable by him for the month of Feb 2019.
a) CGST Rs.4,000 , SGST Rs. Nil
b) CGST Rs.4,000 , SGST Rs. Nil, IGST Rs.84,000
c) CGST Rs.4,000 , SGST Rs. Nil, IGST Rs.90,000
d) CGST Rs.Nil , SGST Rs. Nil, IGST Rs.90,000
Q9. Mr X registered person has made following supply during the month of April 2019.
| Particulars | Amount (Rs.) |
| Consultancy Service provided | 5 lakhs |
| Rent received from letting of Shops | 1 lakhs |
| Sale of Securities (Market value Rs.2 lakhs) | 1.5 lakhs |
| Rent received from letting of residential properties | 1 lakhs |
Compute the value of “exempted supply” for the purpose of Sec 17(2) of CGST Act,2017?
a) 1,02,000
b) 2,50,000
c) 1,01,500
d) 1,15,000
Q10. A Special audit under GST is conducted by…. ?
a) Commissioner
b) CGST Official
c) CAG
d) CA/CMA
Q11. E-Way bill for inter-state movement of goods is mandatory in which of the following case?
a) All movement of goods having consignment value more than Rs.50,000(including GST)
b) All movement of goods having consignment value more than Rs.50,000(excluding GST)
c) Goods sent by principal to Job workers irrespective of value
d) Transportation of Petrol/Diesel
Q12. Which of the following services are exempted under GST?
a) Warehousing of Agricultural produce
b) Printing of books
c) Security (CISF) services provided by Govt to a PSU
d) Construction of a School building by a company under CSR
Q13. Input tax credit is not available in respect of …..?
a) Goods used for personal consumption
b) Free sample
c) Services on which tax paid under composition scheme
d) All of the above
Q14. Services by way of warehousing of …… is exempt from GST?
a) Salt
b) Rice
c) Processed tea
d) Jaggery
Q15. GST is payable by recipient of service in which of the following case?
a) Speed post services provided by Deptt. Of Post to a company registered under GST
b) Sponsorship service provided by a registered person to XYZ Ltd
c) Legal service provided by an Advocate to an NGO
d) Security service provided by a Pvt Ltd company to a Public Ltd company
Q16. The registration certificate granted to Non Resident taxable person is valid for ….days.
a) 30 days
b) 60 days
c) 90 days
d) 120 days
Q17. Which of the following statement is true for a Casual Taxable person (CTP).
a) Registration mandatory
b) Registration required only if turnover exceeds threshold limit of Rs.20 lakhs/10 lakhs
c) Registration not mandatory but may opt voluntarily
d) Registration required only for supply of services not for goods
Q18. Balance in Electronic Credit ledger can be utilized against which of the following liability?
a) Output tax liability
b) Interest
c) Penalty
d) All of the above
Q19. A supplier has claim depreciation as per IT Act,1961 on GST component of Capital goods. Which of the following statement is true ?
a) ITC available only 5% per quarter on said tax
b) ITC of said GST not available
c) ITC available only 50% of GST paid
d) ITC of GST paid for Capital assets not available
Q20. Mr Rakesh becomes liable to pay tax on 1st July 2019 and obtained registration on 16th July 2019. He is eligible for input tax credit on inputs held in stock as on……
a) 1stJuly 2019
b) 15thJuly 2019
c) 30thJune 2019
d) 16thJuly 2019
Q21. GST compliance rating shall be assigned to :
a) Only a person who is liable to deduct TDS/TCS
b) Only a composition dealer
c) Only an Input Service distributors
d) Every registered person
Q22. Where the National Antiprofiteering Authority determines that a registered person has not passed on the benefit of input tax credit to the recipient by way of commensurate reduction in price, the Authority may order :
a) reduction in price
b) imposition of prescribed penalty
c) cancellation of Registration
d) all of the above
Q23. A registered supplier failed to pay GST for the month of April 2019 amounting to Rs.5000/-. The proper officer imposed penalty on supplier for failure to pay tax. Which of the following statement is correct ?
a) Penalty leviable since it is not a “minor breach”
b) Penalty not leviable since it is a “minor breach”
c) Penalty leviable on failure to pay tax, irrespective of amount involved.
d) None of the above.
Q24. Mr Ratanlal wishes to file an Appeal to Appellate Tribunal. In which of the following case, the Appellate Tribunal can not refuse to Admit his Appeal?
a) Amount of tax/ITC involved exceeds Rs.50,000/-
b) Amount of tax/ITC involved Rs.50,000/-
c) Amount of tax/ITC involved less than Rs.50,000/-
d) Amount of fine, fee or penalty by the order is Rs.50,000/-
Q25. XYZ Ltd , a registered person under GST has make short payment of GST during the period between 01-07-2017 to 31-12-2017. As per Sec 73(1), the show cause notice (SCN) can be issued latest by …
a) 31-12-2021
b) 30-09-2021
c) 30-06-2021
d) 31-12-2020
Q26. Time limit for issuance of show cause notice (SCN) in case of any amount collected as tax but not paid to the Central Government is:
a) 2 years & 9 months from the due date of filing Annual Return for the financial year to which the demand pertains
b) 3 years from the due date of filing Annual Return for the financial year to which the demand pertains
c) 4 years & 9 months from the due date of filing Annual Return for the financial year to which the demand pertains
d) No time limit
Q27. M/s Shyam Rice Mills (P) Ltd, a registered person under GST engaged in the business of milling of Paddy into Rice, loading, unloading, packing , storage & warehousing of Paddy/Rice in the state of Odisha. The Company made following supplies during the month of December 2019.
1) Amount received towards milling of Paddy Rs.50 lakhs
2) Warehousing charges received for Paddy/Rice Rs.10 lakhs
3) Loading/unloading charges collected for Paddy /rice Rs.8 lakhs.
Determine the amount of GST payable on above supplies by the company, assuming GST rate 5%?
a) Rs.3,40,000
b) Rs.2,50,000
c) Rs.2,90,000
d) Rs.Nil
Q28. M/s Pave Infra got a contract of Rs. 2 Crores from Kolkata Municipal Corporation (KMC) for repair & maintenance of Sewage system. The work involves composite supply of goods & services of which goods constitute Rs.40 lakhs (i.e 20%) of total value of work. Determine the tax liability, assuming GST rate 18%?
a) Rs.28.80 lakhs
b) Exempt supply
c) Rs.36 lakhs
d) Rs. 7.20 lakhs
Q29. The amount for compounding of offences U/s 138 of the CGST Act,2017 is ….
a) Minimum :Rs.10,000 or 50% of tax involved (whichever is higher) & Maximum :Rs.30,000 or 150% of tax involved (whichever is higher)
b) Minimum :Rs.10,000 or 50% of tax involved (whichever is lower) & Maximum :Rs.30,000 or 150% of tax involved (whichever is lower)
c) Minimum :Rs.10,000 or 50% of tax involved (whichever is higher) & Maximum :Rs.30,000 or 150% of tax involved (whichever is lower)
d) Minimum :Rs.10,000 & Maximum :Rs.30,000
Q30. What is the liability of officers for willful disclose of information otherwise than required under Act, who are engaged in collection of statistical information, compilation, computerization or in GST common portal Us/ 133 ?
a) Imprisonment upto 6 months or fine of Rs.25,000 or both
b) Imprisonment upto 6 months or fine of Rs.10,000 or both
c) Imprisonment upto 12 months or fine of Rs.25,000 or both
d) Fine upto Rs.25,000
Q31. M/s Agrotech Food Ltd, a registered person under GST want to send food grains & other relief materials through Indian Railway & Air India to the Cyclone (FANI) hit victims of Odisha from Delhi to Bhubaneswar. The transportation charges payable to Indian Railways is Rs.10 lakhs & to Air India is Rs. 15 lakhs (excluding GST). The CEO of the company seek your advice on applicability of GST on said transportation charges. Determine the amount of GST payable on transportation, if rate of GST is 18%?
a) Indian Railway Rs.1.8 lakhs & Air India Rs. 2.7 lakhs
b) Indian Railway Rs.Nil & Air India Rs. 2.7 lakhs
c) Indian Railway Rs.1.8 lakhs & Air India Rs. Nil
d) Exempt supply, No GST on transportation being relief material
Q32. M/s True Value Car(P) Ltd, Delhi a registered person under GST deals in sale/purchase of used or second hand cars. During the month of October 2019, the company effected following intra-state transactions.
| Particulars | Purchase Price (Rs.) | Sale Price (Rs.) |
| Honda Jazz | 2,20,000 | 2,60,000 |
| Maruti Dzire | 2,60,000 | 3,30,000 |
| Bolero | 3,80,000 | 3,60,000 |
| Hundai I20 | 2,60,000 | 3,40,000 |
The Company had purchased Hundai Car from another Car dealer who had charged GST of Rs.36,000/-. Accordingly, M/s True Value Car(P) Ltd wish to avail ITC on the same. Determine GST liability of the company assuming rate of GST@18%.
a) Rs.45,000
b) Rs.41,400/-
c) Rs.30,600/-
d) Rs. Nil
Q33. What is the penalty for late filing of Annual return U/s 44 by a person registered under GST?
a) Rs.100/day subject to maximum of 0.25% of annual turnover in the state
b) Rs.100/day subject to maximum of Rs.5000/-
c) Rs.25/day subject to maximum of Rs.5000/-
d) Rs.50/day subject to maximum of Rs.5000/-
Q34. A Special Audit under GST is conducted by…
a) Commissioner of GST
b) Joint commissioner with prior approval of CBIC
c) Chartered Accountant/Cost Accountant
d) All of the above
Q35. Which of the following transaction does not qualify as supply under GST?
a) When principal makes supply to his agent and both are situated in same state
b) When Head office makes supply to its own branch which are situated in other state
c) Disposal of old Car by a car dealer below purchase price on which ITC not availed
d) Import of service without consideration from a related person for business purpose.
Q36. Which of the following documents are required for sending goods worth Rs.80,000/- from Head Office to branch in other states?
a) Tax Invoice & E Way bill
b) Consignment Note & Delivery challan
c) Consignment Note & E Way bill
d) Delivery challan
Q37.Which of the following statements are true w.r.t accounts & records under GSt Laws?
a) All accounts & records are to be retained for 5 years.
b) Stock record is to be maintained by all registered person except the composition scheme dealer.
c) Stock record is to be maintained by all registered person including composition scheme dealer
d) Monthly production records are to be maintained by all registered person excluding composition scheme dealer.
Q38.Refund of un-utilised ITC can be claimed in which of the following case?
a) Export of exempted goods
b) Supply of Nil rated goods
c) Construction service
d) Supply of woven fabrics of cotton
Q39.Which of the following categories of registered person is required to file GST Annual Return?
a) Composition scheme dealer
b) Input Service distributors
c) Casual Taxable person
d) Person registered as TDS deductor U/s51
Q40.M/s Liberty shoes supplied footwear worth Rs. 3 lakhs through Amazon during the month of August 2019, out of which footwear of Rs. 18000/- was returned by customer during the said month. Both the amount are inclusive of GST@12% intra state supply. Calculate the amount of TCS to be deducted by Amazon U/s 52 of CGST Act.
a) Rs. 3000
b) Rs. 6000
c) Rs. 2518
d) Rs. 5640
ANSWER/HINTS
1(c), 2(d), 3(a), 4(b), 5(c), 6(d), 7(c), 8(b), 9(c), 10(d), 11(c), 12(a), 13(d), 14(b), 15(b),16(c), 17(a), 18(a), 19(b), 20(c), 21(d), 22(d), 23(a), 24(a), 25(b), 26(d), 27(b), 28(b), 29(a), 30(a), 31(b), 32(a), 33(a), 34(c), 35(c), 36(a), 37(b), 38(a), 39(a), 40(c)
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ACRONYMS & THEIR FULL FORMS UNDER GST
| Acronym | Full Form |
| ARN | Application Reference Number |
| AA | Appellate Authority |
| AAR | Authority for Advance Ruling |
| B2B | Business to Business |
| B2C | Business to Customer |
| CBIC | Central Board of Indirect Taxes & Customs |
| CGST | Central Goods & Services Tax |
| CTP | Casual Taxable Person |
| CPIN | Common Portal Identification Number (14 digit) |
| CIN | Challan Identification Number (17 digit) |
| CKD | Completely knocked Down |
| DCA | Del-Credere Agent |
| DSA | Direct Selling Agents |
| EBN | E-Way Bill Number |
| E-TIN | E Commerce Operator TIN |
| EGM | Export General Manifest |
| E-FPB | Electronic Focal Point Branch |
| FORM RFD | Refund Form |
| FC | Facilitation Centre |
| FSI | Floor Space Index |
| GSP | GST Suvida Provider |
| GST | Goods & Services Tax |
| GSTR | Goods & Services Tax Return |
| GSTN | Goods & Services Tax Network |
| GSTIN | Goods & Services Taxpayers Identification Number (15 Digits) |
| HSN | Harmonized System of Nomenclature. |
| IGST | Integrated Goods & Services Tax |
| ITC | Input Tax Credit |
| ISD | Input Service Distributors |
| MPS | Managed Service Provider |
| NAPA | National Anti-profiteering Authority |
| NRTP | Non-Resident Taxable Person |
| NIU | National Information Utility |
| OCPB | Over the Counter Payment in Branches |
| ODC | Over Dimensional Cargo |
| OIDAR | Online Information & Data base Access or Retrieval |
| POS | Place of Supply (of Goods or Services) |
| RCM | Reverse Charge Mechanism |
| REP | Real Estate Project |
| RREP | Residential Real Estate Project |
| RFID | Radio Frequency Identification Device |
| RNR | Revenue Neutral Rate |
| RWA | Resident Welfare Association |
| SAC | Services Accounting Code (Six digits) |
| SGST | State Goods & Services Tax |
| SKD | Semi Knocked Down |
| TDF | Transit Declaration Form |
| UTGST | Union Territory Goods & Services Tax |
| UID | Unique Identification |
| UIN | Unique Identity Number |
| UQC | Unique Quantity Code (Unit of Measurement) |
*CA. S K MISHRA is a Fellow member of the Institute of Chartered Accountant of India & Fellow member of the Institute of Cost Accountants of India. He is author of Best seller book on GST titled “Students’ Guide to GST” published by Mewar University Press. Avialble on Flipkart/Amazon etc. He can be reached at gstresolve@gmail.com, Mob.9805072910.
Author Bio
Where are the answers
value of each motor cycle is above Rs 50,000 as per question no 1. may i know why GST liability is NIL for the company?
Answers for the questions
Answer of question No.9 should be (b) that is Rs.2,50,000/- instead of (c) Rs.1.01.500/
Please clarify if it is 1,01,500/-
In Q 40.
1% TCS should be on (3 lac less 18000)/1.12, or value of taxable supply = 2,518. Isn’t it?