2 Levy of GST

DON'T WATCH THE CLOCK;

DO WHAT IT DOES KEEP GOING

Think GST
Think Vishal Sir..!
1 What is the taxable event under GST? c. Both (a) and (b)
a. Manufacturing of goods d. None of the above
b. Sales of goods Ans:-

y
c. Provision of Services
d. Supply 8. A person who occasionally undertakes transactions
Ans:- a b c d involving supply of goods or services or both,
whether as principal or agent or in any other

em
2. what are different types of supply covered under capacity, but who has no fixed place of business or
scope of supply residence in India is:
a. Supplies made with consideration a. Non–resident taxable person
b. Supplies made without consideration b. Composition dealer
c. Both of the above c. Registered person
d. None of the above d. Casual taxable person
Ans:- a b c d Ans:- a b c d

3. Output tax in relation to a taxable person under the 9. Which of the following is a non–taxable supply under

ad
CGST Act, 2017 includes: the CGST Act, 2017:
a. Tax chargeable on taxable supplies made by him a. Supply on which GST levy is not attracted under Sec
b. Tax chargeable on taxable supplies made by his 9 of CGST Act
agent b. Supply on which GST levy is not attracted under Sec 5
c. Tax payable by him under reverse charge of IGST Act
d. Both (a) and (b) c. Supply on which GST levy is not attracted under Sec 9
Ans:- a b c d of CGST Act as well as Sec 5 of IGST Act
Ac d. Supply on which GST is exempted by Government
4. The term “place of business” includes: upon recommendation of GST Council
a. Place from where business is ordinarily carried out Ans:- a b c d
including godown, warehouse, etc.
b. Place where a taxable person maintains his books of 10. Amit of Delhi is participating in Ayush Furniture
account Expo in Haryana where he has no fixed place of
c. Place where taxable person is engaged in business business and exhibiting his products. During the
through an agent expo, the said products will be sold to the people
d. All the above attending and intending to purchase such products
Ans:- a b c d including foreign buyer. In such scenario, Amit
t

shall obtain which of the following registration

5. which of the following activity is treated as supply in under the CGST Act, 2017:
accordance with section 7 of CGST Act a. Non–resident taxable person registration
ar

a) Mr. Raj sold electronic gadgets to XYZ Co. b. Casual taxable person registration
b) Mr. Veer Supply Beer Shampoo to M/s priya c. Regular taxpayer registration
c) Vijay Electronics disposed scrap part of electric unit d. No registration under GST required.
to a scrap dealer Ans:- a b c d
d) All of the above
Ans:- a b c d 11. “Manufacture” means processing of raw material or
Sm

inputs in any manner that results in emergence of

6. Supplier within the meaning of supply includes ………………
a .Person supplying goods a. A new product having a distinct name, character and
b. Person providing services use
c. Both b. An old product having a distinct name, character and
d. None of the above use
Ans:- a b c d c. A new product having a distinct name
d. Either (a) or (b)
7. The term ‘casual taxable person’ includes: Ans:- a b c d
V’

a. A person occasionally supplying goods or services or

both in a State or a Union territory where he has no 12. ‘P’ Ltd. has its registered office under the
fixed place of business. Companies Act, 2013 in the State of Maharashtra. It
b. A person occasionally supplying goods or services or also has a corporate office in the State of Telangana.
both in a State or a Union territory where he has fixed What will be the place of business of ‘P’ Ltd. under
place of business. the CGST Act, 2017?

6
 a. Telangana 19. What is the statue of ‘lottery as an actionable claim’
b. Maharashtra under GST law
c. Both (a) and (b) a. Treated as ‘Goods’

y
d. None of the above b. Treated as ‘Services’
Ans:- a b c d c. Treated as ‘goods’ but out of scope of supply
d.Treated as ‘goods’ and remains within scope of supply
13 Which among the following are zero rated supplies? Ans:- a b c d

em
a. Exports
b. Supplies to SEZ 20. "Services" means anything other than goods,
c. Exports and Imports money and securities includes
d. Both (a) and (b) a. Activities relating to the use of money or its
Ans:- a b c d conversion by cash
b. Immovable property
14. An exempt supply includes c. Securities
a. Supply of goods or services or both which attracts Nil d. Actionable claims
rate of tax Ans:- a b c d

ad
b. Non-taxable supply
c. Supply of goods or services or both which are wholly 21 Activity of ‘supply of money’ by Bank to a business
exempt from tax under Section 11 of the CGST Act or entity on interest -
under Section 6 of IGST Act a. Treated as ‘Supply of Goods’
d. All of the above b. Treated as ‘Supply of Services’
Ans:- a b c d c. Treated as ‘Supply of Services’ to the extent it is
relating to use of money
15 As per Section 2(47) of CGST Act, 2017, exempt
Ac d. None of the above
supply includes the supply of following type of Ans:- a b c d
goods and services:
a. Supply attracting nil rate of tax 22. Activity of ‘conversion of money/ foreign exchange’
b. Supplies wholly exempt from tax, by way of a by Bank/ Authorized Dealer to a business entity on
notification; interest
c. Non-taxable supply a. Treated as ‘Supply of Goods’
d. All of the above. b. Treated as ‘Supply of Services’
Ans:- . a b c d c. Treated as ‘Supply of Services’ and attracts GST
payment is made to end user
t

16 Goods under CGST Act excludes: d. Treated as ‘Supply of Services’ and attracts GST
a. Securities payment when made to another Bank/ Authorized
b. Unsecured debts Dealer
ar

c. Right to participate in the draw to be held in a lottery Ans:- a b c d

d. Growing crops.
Ans:- a b c d 23. Which of the following activities will be considered
as a supply of service
17. The term ‘goods’, as defined under section 2(52) of a. Mr A borrows an amount of ` 1, 50,000 from one of
the CGST Act, 2017, does not include- his relative Mr Q and agrees to repay the entire
Sm

a. Grass amount with interest after a year.

b. Money and securities b. M/s Raj enterprises applied for loan from SBI Bank
c. Actionable claims against which a processing fees and interest is
d. Growing crops charged by the bank
Ans:- a b c d c. Mr H exchanged INR against purchase of US $ for
which a commission was charged
d. All of the above.
18. What is the statue of ‘money and securities’ under Ans:- a b c d
GST law
V’

a. Treated as ‘Goods’ 24. which of the following is not a business activity

b. Treated as ‘Services’ a. Ms. Pooja sold her old jeweller
c. Treated neither as ‘Goods’ nor as ‘Services’ b. Mr. rajesh sold his business car
d. Status is not clear c. (a) or (b)
Ans:- a b c d d. None of the above
Ans:- a b c d

27
4
 payable by Principal (A Ltd.)
25. When will the recipient and supplier be treated as d. shall attract GST as further supply – such further GST
related persons under GST? payable by Agent (Mr C)

y
a. Where such persons are employer and employee Ans:- a b c d
b. Where one of them directly or indirectly controls
other 29. Smart pvt ltd has head office located in Bangalore
c. Where such persons are officers or directors of one (Karnataka). However, the branch of Smart pvt ltd

em
another’s business is located in state of Gujarat. Will be treated as -----
d. All of the above -------------- under GST Act?
Ans :- a b c d a. deemed distinct
b. principle and Agent
26. Mr. A has received technical consultancy services c. Both (a) or (b)
from IT Star Consultants, USA. The import of d. None of the above
technical consultancy will not be liable to GST if- Ans:- a b c d
(I) Mr. A pays some consideration for the services
received 30. In which of the following cases, import of services is

ad
(ii) Mr. A pays some consideration for the services taxable under GST?
received and if Mr. A uses the said service for (1) Import of service with consideration in course or
business purposes furtherance of business.
(iii) Mr. A uses the said service for business (2) Import of service with consideration not in course or
purposes even though he does not pay any furtherance of business.
consideration for the same (3) Import of service without consideration from a
(iv) Mr. A uses the said service for personal purposes related person in course or furtherance of
Ac
and does not pay any consideration for the same business.
and is also a partner in IT Star Consultants (4) Import of service without consideration from a
(v) Mr. A uses the said service for business purposes related person not in course or furtherance of
and does not pay any consideration for the same business.
and is also a partner in IT Star Consultants a. (1) and (3)
a. (I), (ii), (v) b. (2) and (4)
b. (ii), (iii) and (v) c. (1), (2) and (3)
c. (iii), (iv) d. (4)
d. (iii), (iv) and (v) Ans:- a b c d
Ans: a b c d
t

31. A Ltd. Holding entity made certain transfer of fixed

27 . A Ltd. (GST registered in Delhi) has appointed Mr C asset on permanent basis to its subsidiary X Ltd.
(UP) to act as his agent and supply goods on his entity without any consideration. Does the same
ar

behalf to buyers in UP. A Ltd. has dispatched first classify as a supply under GST?
lot of 10,000 units to Mr C (UP) for sales to buyers in a. Yes
UP. Such dispatch to Mr C (UP) : b. No
a. Be treated as ‘supply’ c. On prior Permission of Government
b. Not be treated as ‘supply’ d. Not any
c. Will be treated as supply subsequently Ans:- a b c d
Sm

d. None of the above

Ans:- a b c d 32. ABC Ltd. provides certain services to Mr. Joy who
holds 35% of the voting right in the company. The
28. A Ltd. (GST registered in Delhi) appointed Mr C (UP) transfer made was without any consideration.
to act as his agent and supply goods on his behalf Does the same qualify as supply?
to buyers in UP. A Ltd. dispatched first lot of 10,000 a. Yes, if made in the course or furtherance of business
units to Mr C (UP) for sales to buyers in UP paying b. No, since made without any consideration
IGST on such dispatch supply. These GST paid c. Not a supply
goods were subsequently sold by Mr C (UP)- the d. Yes
V’

agent. He issued his invoice to the buyer too. Such Ans:- a b c d

subsequent sale to buyer - 33. Mr. Amar being a managing director of Alpha Project
a. shall not attract GST as GST has already been paid Pvt. Ltd. made gifts to his employees worth of INR
on such goods 60,000 each for assisting in the architectural work
b. shall attract GST as further supply of his house. Does the same be considered supply?
c. shall attract GST as further supply – such further GST a. Yes, since the value of gift exceeds the provided limit

8
 of INR 50,000 c. Does not qualify as supply
b. No, since the gift is not made in course or furtherance d. Supply on the prior permission of Government
of business Ans:- a b c d

y
c. As per the option of appropriate authority
d. No 40. Ram has received a sum of ` 5,00,000 from his
Ans:- a b c d employer on premature termination of his contract
of employment. The GST implication will be:

em
34. ABC Pvt. Ltd. makes certain supplies to Mr. X and a. It is not a supply, hence not chargeable to GST.
Mr. Z. Both of them hold 51% of the voting rights b. It is a supply without consideration, hence not
in the company and exercise major stake in the chargeable to GST.
decision making. Does the same supply stands c. It is a supply, hence chargeable to GST.
as related party transaction? d. It is not supply, but exemption is there.
a. Yes Ans:- a b c d
b. No
c. As per the opinion of the appropriate authority 41. GST is payable on the services provided by the
d. None of the above employee to the employer in the course of

ad
Ans:- a b c d employment on:
a. Regular basis;
35. Supply of food or drink items in a restaurant as per b. Contract basis as employed by the company;
CGST Act is------------ c. Contract basis as employed by a contractor;
a. Supply of goods d. None of the above.
b. Supply of service Ans:- a b c d
c. not a supply under GST
d. none of the above
Ac 42. Which of the following activity shall be treated
Ans:- a b c d neither as a supply of goods nor a supply of
services?
36. Mr. A, being a Director of ABC Pvt. Ltd. Is provided a (i) Permanent transfer of business assets where input
car which he uses for his personal purpose. Does tax credit has been availed on such assets
the same classify as supply? If yes under which (ii) temporary transfer of intellectual property right
group? (iii) transportation of deceased
a. Yes, supply of goods (iv) services by an employee to the employer in the
b. Yes, supply of services course of employment
c. Does not qualify as supply a. (i) & (iii)
t

d. None of the above b. (ii) & (iv)

Ans:- a b c d c. (i) & (ii)
d. (iii) & (iv)
ar

37. What shall be the proper classification of Renting of Ans:- a b c d

immovable property under supply?
a. Supply of Goods 43. As per the CGST Act, 2017, the term “works
b. Supply of Services contract” includes:
c. Does not qualify as supply a. Construction, fabrication, completion, erection,
d. None of the above installation, etc. of movable property
Sm

Ans:- a b c d b. Construction, fabrication, completion, erection,

installation, etc. of immovable property
38. ABC Ltd. offers a software to businesses for c. Both (a) and (b)
smooth processing of returns and accounts. d. None of the above
Such software shall be considered as: Ans:- a b c d

a. Supply of Goods
b. Supply of Services 44. While repairing the factory shed, few goods were
c. Does qualify as supply also supplied along with the labour service.
d. None of the above Whether it is a :
V’

Ans:- a b c d a. Composite Supply

b. Mixed Supply
39. Temporary transfer or permitting use of intellectual c. Works Contract Service
right or property is classified as: d. None of the above
a. Supply of goods Ans:- a b c d
b. Supply of services

29
4
 45. What type of supply shall transfer of title in goods a. Supply and chargeable to GST
under works contract constitute? b. Supply but not chargeable to GST
a. Supply of Goods c. Not supply and hence not chargeable to GST

y
b. Supply of services d. None of the above.
c. Either of the two at the option of authority Ans:- a b c d
d. None of the above
Ans:- a b c d 52. Mr. Vishal has head office in pune and has branches

em
in state of Gujarat, Goa, and Punjab. Mr. Vishal
46. Mr. A has sold his old furniture of the house. Does send goods to its branch Goa worth ` 2,50,000 in
this constitute a supply? a own conveyance. Value of conveyance `
a. Yes 15,00,000 and With the conveyance some tools
b. No and spares parts are also send worth ` 50,000.
c. Maybe Calculate total value of taxable supply on which
d. None of the above GST is payable.
Ans:- a b c d a. 3,00,000
b. 2,50,000

ad
47. Ajay let out his land for tenancy for a period of 3 c. 18,00,000
years to Mohan. Such tenancy shall be classified d. 15,50,000
as: Ans:- a b c d
a .Supply of goods
b. Supply of services 53. Mr. X is a dealer of new cars. He sells new cars for
c. Either of the two `8,25,000 agrees to reduce ` 1,25,000 on
d. None of the above surrendering of old car. Mr. Y who intends to buy
Ans:- a b c d
Ac new car worth ` 8,25,000 agreed to exchange his
old car with new car. Under GST law, if Mr. X and
48. High sea sales are considered as supply under GST. Mr.Y is registered person, who will be liable to pay
True or False? GST and what is the value.
a. Yes a. X on 825000 and Y on 125000
b. No b. X on 700000 and Y on 125000
c. May be c. only X on 700000
d. None of the above d. only Y on 125000
Ans:- a b c d Ans:- a b c d
t

49. Michael Ltd. of US supplies certain goods to ABC 54. There is a difference in taxability of goods forming
Pvt. Ltd. of Mumbai. Before goods reach Mumbai part of composite supply and mixed supply. Here
port, it supplies those goods to XYZ Pvt. Ltd. by are few examples from which you need to identify
ar

transfer of documents of title to goods. What kind which is correct example of composite supply and
of transaction is this? mixed supply.
a. Transfer i) Mr. A buys a car and purchases warranty and
b. High sea sales maintenance of the car by paying nominal amount.
c. Composite supply Car, warranty and maintenance here are a mixed
d. Supply supply.
Sm

Ans:- a b c d ii) Mr. A buys a car and purchases warranty and

maintenance of the car by paying nominal amount.
50. Mr. X, supplied a laptop for ` 40,000 to Mr. Y along Car, warranty and maintenance here are a composite
with a barter of printer, the value of which is ` supply.
4,000 but the open market value of the laptop is iii) Mrs. A buys a microwave oven and some utensils for
not known. The GST liability will be: use in microwave oven. Both microwave oven and
a. Mr. X for ` 40,000 and Mr. Y for ` 4,000 utensils are sold at a single price. Microwave oven
b. Mr. X for ` 44,000 and Mr. Y for ` 4,000 and its utensils here are a mixed supply.
c. Mr. X for ` 36,000 and Mr. Y for ` 4,000 iv) Mrs. A buys chocolates, juices and biscuits from a
V’

d. Mr. X for ` 40,000 and no GST liability for Mr. Y. shop. All items have different prices. Chocolates,
Ans:- a b c d juices and biscuits are a mixed supply.
The correct examples of composite and mixed supply
51. Mr. A is a well-known singer. He receives a life-time are: -
achievement award which consist of a memento a. i,iv
and a cheque of ` 10,00,000. It is: b. ii,iii

10
 c. ii,iii,iv (ii)When a person import services without
d. None of the above consideration for the purposes of his business from
Ans:- a b c d his elder brother living outside India.

y
(iii) Disposal of car without consideration and where the
55. What shall constitute main item under composite supplier has not claimed input tax credit on such
supply? car.
a. Principal Item (iv) When a principal makes supplies to his agent who is

em
b. Item with Highest tax rate also registered and is situated within the same
c. As per the option of the taxpayer State.
d. None of the above a. (i) & (iii)
Ans:- a b c d b. (I), (ii) & (iii)
c. (iii)
56. In composite supply, the principal supply is supply d. (iii) & (ii)
of goods whereas the ancillary supply is supply of Ans:- a b c d
services. Which provision shall apply in respect of
time of supply? Case Study:-

ad
a. Time of supply of service
b. Time of supply of goods Mr. X(Maharashtra)registered under GST is running a
c. Either (a) or (b) business from last 40 years, supply the goods to overall
d. None of the above India. He has a branch in Punjab, Goa, Delhi, Karnataka.
Ans :- a b c d He want to increase sale so he had started working
with agent also in the Assam, Gujarat and made a supply
57. M/s X Ltd. a dealer offer combo packs of shirt, through them in there state.
Ac
watch, wallet, book and they are bundled as a kit Mr. X had want to maintain inventory so that he
and this kit is supplied for a single price as a should not loss any customer he haspurchase
mixed supply. Tax rate for shirt, watch, wallet and software(note1)from his brother who is reside in USA,
book are 12%, 18%, 5% and Nil respectively. The market value ` 8,00,000and his old computer with software
mixed supply will be taxed at: he has donate to seva charity of Mumbai. Value of computer
a. 12% is ` 65,000.
b. 18% Following is supply to
c. 5% Punjab – 20,00,000
d. Nil Goa- 3,80,000
Ans:- a b c d Delhi- 9,85,000
t

Karnataka- 4,65,000
58. What kind of supply is this transaction: Food Assam- 22,80000
supplied to the in – patients as advised by the Gujarat- 8,55,000
ar

doctor in the hospital.”

a. Composite Supply GST rate is 12% for goods and service is 18%. During the
b. Mixed Supply year Mr. X has given goods to his employee on Diwali worth
c. Works Contract Service ` 28000 also given some goods to use in marriage function
d. None of the above of his friend for 4days worth ` 2,85,000.
Ans:- a b c d Mr. X has sale land in Punjab worth ` 58,00,000. At the time
Sm

of sale some issue came and he had paid fees ` 8000 to

59. XYZ Pvt. Ltd. manufactures the jeans on order of district court to clear the sale. Answer the following
ABC Pvt. Ltd. Further, after manufacturing, it also question.
gets it delivered to ABC Ltd. & gets the in transit Note1: license of a pre packed software.
insurance done. What kind of supply is this?
a. Mixed supply Q. 1 which of the following is supply
b. Composite supply a) supply to branch
c. None of the above b)supply to agent
d. Don’t know c) supply to friend
V’

Ans:- a b c d d) all of the above

Ans: a b c d
60 Which of the following transactions does not qualify Q.2 what is the supply made during year
as supply under GST law? a) 1,31,43,000
(I) When the Head Office makes a supply of services to b) 70,30,000
its own branch outside the State. c) 73,15,000

11
4
2
 d) 1,30,50,000 Ans:- a b c d

Ans:- a b c d

Q. 10 which of the following is supply of service

y
Q. 3 what is GST amount payable on sale of land a) supply to friend
a) 6, 96,000 b) fees paid to the court
b) 10, 44,000 c) supply to employee
c) on sale no need to pay GST only at the time of d) all of the above

em
purchase need to pay GST Ans:- a b c d
d) none of the above
Ans:- a b c d

Q. 4what has GST amount payable in case of

supply made to seva charity
a) 3250
b) 7800
c) 11700

ad
d) none of the above
Ans:- a b c d

Q. 5 goods to use in marriage function of his friend

what will be the GST Answer:-
a) 34200
1 d 21 b 41 c
b) 51300
c) 14250
Ac c c d
2 22 42
d) None of the above
Ans:- a b c d 3 d 23 d 43 a

Q. 6 purchase of software from brother has treated 4 d 24 a 44 c

as
a) supply of goods 5 d 25 d 45 b
b)supply of service
6 c 26 c 46 b
c) supply of both (goods as well as services)
d) It is not a supply a a b
t

7 27 47
Ans:- a b c d
8 a 28 d 48 b
Q. 7 which of the following is supply without
ar

consideration (as per schedule I) 9 c 29 a 49 b

a) supply seva charity
b) supply to friend 10 b 30 c 50 b
c) supply to employee a a c
11 31 51
d) all of the above
Ans:- a b c d
Sm

12 c 32 a 52 b

Q. 8 on which of the following activity GST is not 13 d 33 b 53 a

pay
a) supply to friend 14 d 34 a 54 b
b) supply to Agent
c)court fees 15 d 35 b 55 a
d) supply from his brother a b b
16 36 56
Ans:- a b c d
17 b 37 b 57 b
V’

Q. 9 which of the following activity or transaction

is not a supply as per schedule III 18 c 38 b 58 a
a)sale of land
b) court fees paid 19 d 39 b 59 b
c) both of the above
20 a 40 a 60 c
d) none of the above

12
PRACTICE QUESTION CGST/ SGST credit on other inward
supplies (including credit of Rs. 5,000 0.5 lakh each
each on account of Food and Beverages
1 Which one of the following is not a composite supply: expenses)

y
a. Supply of an air conditioner along with freight, Carried forward credits
insurance and installation CGST : ` 2 lakh
b. Supply of UPS along with external battery SGST : ` 2 lakh
c. Supply of architect services along with supply of IGST : ` 5 lakh

em
material incidental to his services
d. Supply of lodging service by a hotel including Mr. Kabira has also procured consultancy services from
breakfast lawyer for Rs. 1 lakh who is situated in same State in which
Ans:- a b c d Mr. Kabira is registered being taxable @ 18%.
a. IGST: Rs. 2,00,000; CGST: Rs. 2,50,000; SGST: Rs.
2 Which of the following is not covered under Schedule 2,50,000
III of CGST Act: - b. IGST: Nil; CGST: Rs. 50,000; SGST: Rs. 2,50,000
(I) Service provided by an employer to his employee on the c. IGST: Nil; CGST: Rs. 59,000; SGST: Rs. 2,59,000
occasion of his marriage d. IGST: Rs. 3,00,000; CGST: Rs. 4,50,000; SGST: Rs.

ad
(ii) The functions performed by the members of 4,50,000
municipalities and local authorities Ans:- a b c d
(iii) The duties performed by a director in a body established
by the Central Government 5 Ms. Chulbuli is registered in Delhi. She has been
(iv) Actionable claims, other than lottery, betting and engaged in the modeling business. Her taxable
gambling turnover during the month of Jul-2018 is 48 lakh
a. (i) & (iii) taxable @ 18%. She has made all supplies within
b. (I)
Ac the State. The carried forward ITC are as under:-
c. (iii) (I) CGST: Rs. 2,35,000
d. None of the above (ii) SGST: Rs. 1,30,000
Ans:- a b c d (iii) IGST: Rs. 1,00,000
During the month of Jul-2018, she travelled abroad and
3. GST compliance rating would be given to whom purchased camera for Rs. 5 lakh on which she paid
a. Input Service Distributor IGST of Rs. 90,000. She utilized this camera partly for
b. Supplier of Goods and/ or Services whose value of business purpose and partly for non-business
taxable turnover is greater than 20 lakhs purposes. Calculate the net GST liability on her output
c. Composition Dealer & Person who is liable to deduct supplies (to be paid in cash) for the month of Jul-2018.
t

TDS/ collect TCS a. CGST: Rs. 4,32,000; SGST: Rs. 4,32,000; IGST: Rs.
d. All of the above 90,000
Ans:- b. CGST: Rs. 1,97,000; SGST: Rs. 3,02,000; IGST: Rs.
ar

a b c d
Nil
4 Mr. Kabira is engaged in the business of sale and c. CGST: Rs. 1,01,000; SGST: Rs. 3,02,000; IGST: Rs.
purchase of handbags taxable @ 18%. Calculate 90,000
his tax liability to be paid in cash for the month of d. CGST: Rs. 11,500; SGST:Rs. 3,02,000; IGST: Rs. Nil
Jul2018 considering the following details- Ans:- a b c d
Sm

Particulars Amount(`)
6. Which of the following transactions does not qualify
Value of inter-State outward supply to
30 lakh as supply under GST law?
registered persons
(i) When the Head Office makes a supply of services to its
Value of intra-State outward supply to own branch outside the State.
50 lakh
registered persons
(ii) When a person import services without consideration for
Value of intra-State outward supply to 15 lakh the purposes of his business from his elder brother
un-registered persons living outside India.
Value of intra-State inward supply from 10 lakh (iii) Disposal of car without consideration and where the
registered persons supplier has not claimed input tax credit on such car.
V’

Value of inter-State inward supply from (iv) When a principal makes supplies to his agent who is
5 lakh
registered persons also registered and is situated within the same State.
Value of intra-State inward supply from 2 lakh a. (i) & (iii)
un-registered persons b. (I), (ii) & (iii)
IGST credit on capital goods purchased in c. (iii)
1.5 lakh
the month of july
d. (iii) & (ii)

13
4
2
 Ans:- Business Group?
7. Factory that should Not be considered in a. 35 separate applications in GST REG-01
determining whether goods or services are related b. Only one registration application incorporating the

y
include---------. entire business verticals in one go
a. the nature of the goods or services c. Either of the above at the option of the Business
b. the nature of the production processes Group
c. the type or class of customers for the goods or d. Either of the above at the discretion of the Proper

em
services Officer
d. the type or class of raw material for the goods or Ans:- a b c d
services
Ans:- a b c d 13. There is a difference in taxability of goods forming
part of composite supply and mixed supply. Here
8. Meaning of “family” does not include: are few examples from which you need to identify
a. spouse which is correct example of composite supply
b. Children and mixed supply.
c. independent parents i) Mr. A buys a car and purchases warranty and

ad
d. dependent grand-parents maintenance of the car by paying nominal amount.
Ans:- a b c d Car, warranty and maintenance here are a mixed
supply.
9. Supply of goods by any unicorporated association or ii) Mr. A buys a car and purchases warranty and
body of persons to a member thereof for cash, maintenance of the car by paying nominal amount.
deferred payment or other valuable consideration Car, warranty and maintenance here are a composite
is ............. supply.
a. Supply of goods
Ac iii) Mrs. A buys a microwave oven and some utensils for
b. Neither as a supply of goods nor a supply of services use in microwave oven. Both microwave oven and
c. Supply of services utensils are sold at a single price. Microwave oven
d/ Either as a supply of goods or as a supply of services and its utensils here are a mixed supply.
Ans:- a b c d iv) Mrs. A buys chocolates, juices and biscuits from a
shop. All items have different prices. Chocolates,
10. Out of the IGST paid to the Central Government in juices and biscuitsare a mixed supply. The correct
respect of import of goods or service, if the examples of composite and mixed supply are: -
registered taxable person does not avail the said a. i,iv
credit within the specified period, what is the b. ii,iii
t

treatment? c. ii,iii,iv
a. refund it back to the taxable person d. None of the above
ar

b. Can be claimed after the expiry of the specified Ans:- a b c d

period
c. Apportion to the Central Government based on rate 14. Mr. Z has an agency of wholesale trading of a
equivalent to CGST on similar intra-State supply particular brand in Gas Stoves for Rajasthan and
ans Apportionment to the state where such supply Gujarat and has separate proprietorship firms in
takes place. each of the two States. In Gujarat, Mr. Z additionally
d. None of the above trades in shoes from the same firm. In the context
Sm

Ans:- a b c d of the above information, which of the following

statement is correct?
11. The provisions of apportionment of tax under IGST a. Mr. Z can operate with single registration for Gas
also apply to -------- Stoves business for Rajasthan and Gujarat. For
a. Interest Shoes business, he has to compulsorily take
b. Penalty separate registration since it is different business
c. Compounding sum realized in connection with tax vertical.
d. All of the above b. Mr. Z will have to get separate registration for each
Ans:- a b c d of the States i.e., Rajasthan and Gujarat for Gas
V’

stove Business. For shoes business, he has an

12. Suppose, One Business Group has 35 Business option to register separate business verticals
Verticals within a state and has to take separate independently.
GST registrations under the same PAN. How c. Mr. Z will have to compulsorily take 3 registrations
many online registration applications with two for Gujarat (Gas Stoves and Shoes
scanned documents have to be filed by that separately) and one for Rajasthan business (Gas

14
 stoves). India) in Russia
d. Mr. Z can operate with single registration for Gas a. 1), 3) and 4)
Stoves business for Rajasthan and Gujarat and b. 2), 3) and 4)

y
Shoes business for Gujarat. c. 2) and 3)
Ans:- a b c d d. 1) and 2)
Ans:- a b c d

15. M/s. Jolly Electronics (P) Ltd., is an authorized

em
dealer of M/s. GG Micro Ltd., located and registered
in Lucknow, Uttar Pradesh. It has sold following
items to Mr. Alla Rakha (a consumer): Answer:-

Product Amount Case Study Practice Question

refrigerator (500 litres) taxable@18% 40,000/-
1 d 1 b
Stabilizer for refrigerator @12% 5,000/-
LED television (42 inches) taxaxble @12% 30,000/- 2 b 2 b

ad
Split air conditioner (2 tons) taxable @28% 35,000/- 3 d d
3
Stabilizer for air conditioner taxable @12% 5,000/-
4 b 4 b
Total Value 1,15,000/-
M/s. Jolly Electronics (P) Ltd. has given a single invoice, 5 b 5 d
indicating price of each item separately to Mr. Alla Rakha. b c
Mr. Alla Rakha, has given a single cheque of Rs. 1,00,000/- 6 6
for all the items as a composite discounted price. State the
Ac 7 a 7 d
type of supply and the tax rate applicable on the same.
a. Composite supply; Highest tax rate applicable to 8 c 8 c
split air conditioner, i.e. 28%
b. Mixed supply; Highest tax rate applicable to split air 9 c 9 a
conditioner, i.e. 28%
10 a 10 c
c. Supply other than composite and mixed supply;
Highest tax rate applicable to split air conditioner d
11
i.e. 28%
d. Supply other than composite and mixed supply; a
t

12
respective tax rate applicable to each item
Ans:- a b c d 13 b
ar

16. Where any agent supplies goods on behalf of his 14 b

principal:
15 d
a. Such agent shall be jointly and severally liable to
pay the GST payable on such goods. c
16
b. The principal shall be jointly and severally liable to
pay the GST payable on such goods.
Sm

17 a
c. Both (a) and (b)
d. None of the above
Ans:- a b c d

17 Which of the following services received without

consideration amount to supply?
1) Import of services by a person in India from his son
well-settled in USA
2) Import of services by a person in India from his
V’

brother well-settled in Germany

3) Import of services by a person in India from his
brother (wholly dependent on such person in India)
in France
4) Import of services by a person in India from his
daughter (wholly dependent on such person in

15
4
2