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 GS
T2
GS

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09850850800
2
GST
For
May 18
Goods & Services Tax (GST)
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examination
VALUATION, RATE, COMPOSITION & ITC

TAX
GST Rates in India
Rate Goods Service Composition Scheme ADDITIONAL CONDITIONS:-
> Taxable Person opting composition scheme shall not
WITHDRAWAL FROM COMPOSITION SCHEME
1) When aggregate turnover exceeds 1 Cr./75 lacs during the financial year.
Section 15 - Valuation 0% 50% of the consumer price Exemption is given in service tax for some
basket, including foodgrains services
APPLICABILITY AS PER SEC 10
- Applicable to “Registered Person” whose aggregate turnover in preceding
collect tax on outward supplies
> Taxable Person opting composition scheme will not be
2) If he ceases to satisfy any of the conditions required to opt for composition scheme
EFFECTS AFTER WITHDRAWAL
Diamonds, Precious Stones — year is not exceeding 1 Cr. or 75 Lacs (in special category state) eligible to claim input tax credit
1) To file an intimation for withdrawal in prescribed form within 7 days from such event.
0.25% etc. - It is an optional scheme > Would be applicable for all business vertical having
registrations under same PAN of the conditions required to 2) Shall issue a tax invoice for every taxable supply made thereafter
3) Shall be allowed to avail input tax credit in respect of stock held by him as on date.
Sec 15(1) Sec 15(2) Sec 15(3) Silver, Gold, Platinum etc. —
3% RATE
Cases CGST SGST Total
opt for composition scheme
RESTRICTIONS AS PER COMPOSITION RULES
Note : Special category states are : Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur,
Value of = Transation value Inclusion to Transaction Value Deduction of discount Mass consumption items Transport of goods by Rail/Road/ Air/ Ship Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh & Uttarakhand.
Taxable Supply
Price actually
5% like spices and mustard oil Transport of passengers Rail / Road /
Economy air travel, Tour operator, Print
Manufacturer
Trader
1%
0.5%
1%
0.5%
2%
1%
Of State
Turnover
> He is neither a casual taxable person nor a non-resident
taxable person Sec 2(6) - Aggregate Turnover Sec 2(112) Turnover in State” or “Turnover in
a b c d e Media, Ads, News Paper Printing Catering & Restaurant 2.5% 2.5% 5% > Goods held in stock as on appointed date are not Union Territory
paid or payable purchased:- “Aggregate Turnover” ” “turnover in State” or “turnover in Union territory” means the
for Supply Any discount given before Any discount given after supply Processed foods Air travel business class, Non-AC TURNOVER LIMIT IN CURRENT YEAR FOR COMPOSITION - In course of interstate trade or commerce aggregate value of
means the aggregate value of
Duties & Taxes
All taxes levied
3rd party payment
Any payment
Incidental expenses:
Any incidental expenses
Interest, late
fee penalty
Subsidy
Subsidy directly
or at the time of Time of Supply
12% restaurant, Hotel Rooms rent ` 1000-
2500, Construction of building /complex,
Temp transfer of intellectual prop.
Agrregate Turnover does not exceeds 1 Cr. or 75 lacs. - imported from place outside India
- From his agent or principal outside State, where the
Ü all taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on
Ü all taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on
Conditions: under any law included by the charged by supplier & for delay linked to price ELIGIBILITY CONDITIONS (in current year) option is exercised under sub-rule 1 of rule 1 reverse charge basis), reverse charge basis) and
1) Not related party for time being in recipient for which any amount charged for payment of by person other Deductible from value Soaps, Oil, toothpaste, General Rate on all services except 1) Not engaged in supply of services other than catering & restaurant services - From unregistered person under RCM basis, provided he
2) Price is sole consideration force other than
GST Acts if
supplier is liable to
pay
anything done by the
supplier at the time of
consideration than govt. Agreed at the Time or before supply Not Agreed 18% refrigerator, smartphones covered in 5%, 12% and 28% 2) Not engaged in supply of goods which are non taxable under GST Act.
3) Not engaged in making any inter state outward supply of goods
can opt the scheme on payment of tax on RCM basis
Ü exempt supplies, Ü exempt supplies made within a State or Union
territory by a taxable person,
Deduction allowed Deduction Ü exports of goods or services or both and Ü exports of goods or services or both and
charged supply or before delivery White goods, Cars Race club, Gambling, Hotel rent more than 4) Not engaged in supply of goods through an E-Commerce operator . PROCEDURAL REQUIREMENT
separately
i) linked to the invoice
ii) ITC reversed by recipient
not allowed 28% ` 5000/day, Services provided in Five star
Hotels, Cinema/ Multiplexes/ IPL/ Casino,
5) Not a manufacturer of notified goods i.e.
- Ice cream, edible ice
> He shall issue a bill of supply & shall mention the words
“composition taxable person, not eligible to collect tax on
Ü inter-State supplies of persons having the same
Permanent Account Number,
Ü inter-State supplies of goods or services or both
Amusement Parks/Sporting events made from the State or Union territory by the said
- Pan Masala supplies” at the of top of such bill taxable person
to be computed on all India basis
- Tobacco & Tobacco substitutes > On every notice or signboard displayed at prominent place
28%
Plus Cess
Luxury cars, pan masala,
tobacco, aerated drinks
—
6) Neither a casual taxable person nor a non-resident taxable person. of business shall mention words “composition taxable
but excludes central tax, State tax, Union territory tax,
integrated tax and cess
but excludes central tax, State tax, Union territory tax,
integrated tax & cess.
person'
Sec 15(4) Sec 15(5)
If value of supply cannot be determind u/s 15(1) i.e
Notwithstanding anything contained in sec 15(1)/15(4) Value of supply notified by the govt.shall be determined as per Rules INPUT TAX CREDIT
Ü Supply without price
Ü Related party transaction Valuation in special cases [Rule 32]
Sec 2(59) Input : Means any Sec 2(60) Input Service : Sec 2(19) Capital Goods : Means goods, the Sec 2(46) Electronic Credit Ledger: means the Sec 2(47) Inward Supply : in
Ü Supply without consideration or any other considerations then apply 32(2) :Purchase or sale of foreign currency
Note : goods used other than capital Means any service used or value of which is capitalised in the books of account electronic credit ledger as referred in Sec 49(2) i.e. the input tax relation to a person, shall mean receipt
CGST Rules 2017 FC= Foreign currency
credit as self assessed in return of registered person shall be
EV = Exchange Value goods used or intended to be used intended to be used by a supplier of the person claiming the input tax credit and which are of goods or services or both whether by
by supplier in course of furtherance in the course or furtherance of used or intended to be used in the course or furtherance credited to electronic credit ledger in accordance with section 41, purchase acquisition or any other with or
Option 1 Option 2 of business. business of business to be maintained in the manner as may be prescribed. without consideration.
Rule 27 Rule 28 Rule 29
(a) Exchange value up to ` 1,00,000.
When consideration is not Supply between distinct or related person Supply between FC to `
Value = 1% of gross amount exchange value but min
FC to FC
wholly in money (a) Open Market Value (OMV) principle & agent ` 250 Sec 16 : Eligibility & Sec - 17(1), 17(2) & 17(3) Apportionment of Credit Sec - 17(5) Blocked Credit
(b) If (a) is not available convert both (b) Exchange value more than 1 Lac but below 10Lac
(a) Open market value (OMV) (a) Open Market Value (OMV )
value = value of like kind & quality RBI Ref. rate is availabe RBI Ref. not availabe the currencies Value = 1000+0.5% of (E.V. - 1,00,000)
Conditions & Time limit
(b) If (a) is not available (c) If (a) & (b) not determinable then apply OR in Indian ` by T Total input tax (IT) on capital goods (CG) Cases, where ITC not available Exemptions, where ITC allowed
value = consideration in money + Rule 30 or 31 in that order Value = applying RBI rate (c) Exchange Value above 10 L Sec. 16(1) : Eligibility criteria :
FMV of consideration not in money Proviso 1: 90% of price of like kind & Value =1% of Value = 5500+0.1% of (E.V. - 10,00,000) Total IT on I + IS Motor Vehicle and other Conveyance (A) Motor vehicle & other conveyance used for transportation of goods
(c) If (a) & (b) not determinable
If further supply is as such by recipient at option of supplier
Value = 90% of price charged for like kind &
quality by the recipient.
Where such goods are
Dealers
buying or –RBI
base
selling rate rate
gross amount
of currency exchanged in `
Value = 1%
of lower of but max 60,000
- Person should be registered person
- Goods used/intented to be used in the (a) (b) ‘A’
(B) Motor vehicle & other conveyance used for making taxable supplies of
(i) such motor vehicle & other conveyance
Value = value of like kind & quality above amount
quality by recipient. intended for further supply. course or Furtherance of business. (ii) transportation of passengers
(d) If (a) (b) or (c) not determinable then Proviso 2 :
T1 T2 T3 C1 IT on CG used exclusively IT on CG used exclusively IT on CG not covered (iii) imparting training on driving / flying/ navigation such motor vehicle
(b) If (a) is not available then 32 (3) : Value of the supply of Services in relation to booking of tickets for travel by air for non-business/exempt for taxable supplies under (a) & (b). Useful life
apply Rule 30 or 31 in that order If recipient is eligible Full ITC then OMV = Rule 30 or 31 in order. Sec. 16(2) : Conditions : & other conveyance
(a) Domestic Booking - Value = 5% of basic fare IT on I+IS used IT on I=IS used Blocked credit u/s Remaining ITC supplies including zero rated of CG – 5 years from date
Value declared in invoice for supply of goods or services. a) Tax invoice /Debit note is in possession supply (ZRS) of inovice
(b) International Booking - Value = 10% of basic fare exclusively for exclusively for 75(5) credited to ECrL Food and beverages, Outdoor catering, Where a particular category of such inward supplies is used for making an
Note: Basic fare means airfare on which commission is payable to air travel agent. i.e. It doesn’t includes other charges & taxes. b) Receipt/received of Goods or services non-business exempt supplies = T-(T1 + T2 +T3) Beauty Treatment, Health Services, Cosmetic outward taxable supply of the same category - [Sub-contracting] or as an
32 (4) : Life insurance business both purposes & Plastic Surgery element of a taxable composite or mixed supply.
Not to be credited to Credited to ECrL Credited to ECrL
Exception : Bill to ship to Electronic Credit Ledger
Rule 30 & 31 are applicable in order in following cases If goods are supplied on direction of third (ECrL) Membership of Club, health and fitness —
1) If situation covered in rule 27,28,29 but Valuation can not be done by applying the principles Stated in rules Saving policy Single Annul Risk Policy (i) Exempt supplies include reverse Tc center
Policy person then goods are deemed to be charge supplies, transactions in
2) If situation not covered in a fore said rules. value shall be determined as received by third person when supplied by securities, sale of building when Common credit on CG = TC =Σ (A) Rent a cab, Life insurance and health (A) Services notified by the Government as being obligatory for an
Value =10% of per Sec15(1) supplier to the recipient entire consideration is received
T4 C2 if CG under (a)/(b) subsequently get covered
Investment or saving Investment not intimated to policy holder - single premium charged i.e. gross premium charged insurance employer to provide to its employees under any law
c) The payment of tax to the government has after CC. Tm under ‘A’, = (a)/(b) - 5% of IT for a quarter or
intimated to policy holder (a) 1st year value = 25% of premium charged (B) Where a particular category of such inward supplies is used for making
Rule 30: Value of supply Rule 31: Residual method or Best judgement been made on such supply. (ii) Aggregate value of exempt Credit attributable to I+IS Common credit part thereof
Value = gross (b) 2nd year value = 12.5% of premium charged used exclusively in taxable
an outward taxable supply fo the same category [Sub-contracting] or
supplies and total turnover = C1 – T4
based on Cost by using reasonable means Premium -Investment d) He has file the return. supplies including ZRS Common credit of CG for a tax as part of a taxable composite or mixed supply.
Cost of production Note : If this option is exercised it can’t withdrawn in the same financial year exclude the CED, SED & VAT Tr
– Consistent with the principles & general provision of Sec 15 period during their useful life
Value = 110% of Cost of acquisition – Provision of this chapter (i.e. earlier rules) Tm = Tc/60 Travel benefits extended to employees on —
32 (5) : Buying & Selling of 2nd hand goods. Other : Common credit at the beginning of a tax vacation such as leave or home travel
Cost of provision of service Note: In case of supply of services supplier may option for rule 31 instead of rule 30
1) If, goods received in lots - then, ITC is period for all CG having useful life in that tax
D1 D2 C3 period
concession
on ‘Receipt of last lot/install.
Tr = Tm of such CG Works contract service for construction of (A) Works Contract services for Plant & (A) Construction includes re-
If ITC is not taken on purchase of such goods 2) Payment to Supply within 180 days - Credit attributable to exempt Credit attributable to non- Remaining
Rule 33 : Deduction of expenses incurred as a pure agent If ITC is taken on purchase of such goods supplies - business purpose if Common credit immovable property Machinery construction/ renovation/
Definition of pure agent : Means a person Service recipient pay 180 days. [Value+tax] addition/ alterations/ repairs
This rule is applicable for all supply of services not with standing to E xC common I + IS used partly = C2 - (D1 + D2) (B) Where Works contract service for to the extent of capitalisation
- Value = selling price - purchase price Value = Transaction value U/S 15(1) or outward supply of such goods But if not 180 days then, D1 = — Te
anything contained in the provision on this chapter F 2
for business + non-business immovable property is input service for to said immovable property.
Value shall exclude the expenditure & cost incurred by the supplier as (a) entering into contractual agreement with the E= Value of ES during tax period purposes further supply of works contract services (B) Plant & Machinery means
In case of reposed goods from defaulting borrowers. Common credit towards exempted supplies
recipient to incurred the expenditure as pure Amt. = ITC added in outward lia F = Total turnover during tax period D2 = 5% x C2 Eligible ITC [Sub-contracting] apparatus, equipment &
a pure agent subject to following conditions.
1) Supplier act as pure agent of the recipient while making payment
agent
(b) Neither holding any title on supplies procured
Purchase = Purchase price of
price defaulting borrower
–
5% of each qtr or part there of between date
of purchase of defaulting borrower & date of disposal by person
(+) Interest @ 18% if no turnover during the tax
period/values not available, values
attributable to
business &
E
Te = — x Tr
F
E – Aggregate value of exempt supplies Inward supplies received by taxable person (A) Construction of Plant & Machinery
machinery fixed to earth by
foundation or structural
to 3rd party supports but excludes land
as a pure agent Regain when payment is made. for last period may be used. taxable supplies for construction of immovable property on his (B) Construction of immovable property for
during the tax period; F — Tutal turnover building/ other civil
2) Amount separately shown in invoice (c) Doesn’t use such supplies for his own interest 32 (6) : Value of token, voucher, coupon. including ZRS during the tax period. own account including when such supplies others structures, tele-
Exception : 1) Tax payable under RCM Ineligible credits Added to output tax liability along
3) Supplies of goods / services procured by the supplier as a pure (d) Received only the actual amount incurred to Value = money value of goods / services / both redeemable against such coupon, token, voucher, stamp If no turnover during the tax period/values not are used in the course or furtherance of communication towers and
2) Deemed supplies without consideration with interest pipelines laid outside the
agent are in addition to services he supplies on his own A/c. procure supplies under pure agent. 32 (7) : Value of supply of service to distinct person. In case of notified supply of services by govt. the value of supply available, values for last tax period may be business
[Sch.I] used. factory premises.
made to distinct person where ITC is available shall be Nil To be added to output tax liability
Inward supplies received by NRTP Goods imported by him
Sec. 16 (B) - claimed & depreciation on tax Ü C3 will be computed separately for ITC of CGST, SGST/ UTGST and IGST.
Sec 2(61) “Input Service Distributor”
component under income tax act = ITC Ü Σ(D1 + D2) will be computed for the whole financial year, by taking exempted
Sec 20 – Distribution of credit Goods or services or both on which tax —
Sec 19- Goods sent by principal for Job Work not allowed turnover and aggregate turnover for the whole financial year. Ü Te will be computed separately for ITC of CGST, SGST/UTGST and has been paid under Sec 10
Means an office of the supplier of goods or services or both If this amount is more than the amount already added to output tax liability every
by Input Service Distributor which receives tax invoices issued under section 31 month, the differential amount will be added to the output tax liability in any of the
IGST.
Goods or services or both received by non- —
The principal shall be allowed input tax credit on inputs sent to a Sec. 16(4) - Time limit for availing ITC Ü Exempt suppliies include reverse charge supplies, transactions in
towards the receipt of input services Earlier of following month till September of succeeding year along with interest @ 18% from 1st April securities, sale of land and sale of building when entire consideration resident taxable person except on goods
job-worker for job-work. The Input Service Distributor shall distribute the credit of and of succeeding year till the date of payment. imported by him
1) Due date of sep. of + FY is received after completion certificate.
1
issues a prescribed document for the purposes of Ü If this amount is less than the amount added to output tax liability every month, the Ü Aggregate value of exempt supplies and total turnover excludes the
Ü central tax as central tax or 2 integrated tax distributing the credit of Limit [i.e. 20th Oct of next F.Y] additional amount paid has to be claimed back as credit in GSTR 3 or any month Goods or services or both used for personal —
central excise duty, State excise duty & VAT.
and Ü Central tax, till September of the succeeding year. consumption
Ü State tax, OR
Ü integrated tax as 1
integrated tax or 2central tax, ÜIntegrated tax or
Sec 17(4) : Special option of ITC to banking and F.I. Goods lost, stolen, destroyed, written off or —
Inputs sent for Capital Goods sent for Ü Union territory tax paid on the said services
2) Date of filling Annual Return Avail of every month, an amount equal to 50% of the eligible input tax credit on inputs, capital gooda nd input services in that month and the rest shall lapse disposed of by way of gift or free samples
Note : 100% ITC is available if inward supply from another registered branch under same PAN (except block credit)
Job work Job work Ü State tax as 1
State tax or 2 integrated tax to a supplier of taxable goods or
services or both having the same Permanent Account
by way of issue of a document containing the amount of input tax credit being
distributed in such manner as may be prescribed.
Number as that of the said office. Sec 18 : Reversal of Credit
Where inputs sent for job work – Where capital goods sent for job work Sec 18(1) Availment of Credit Sec 18 (3) Transfer of ITC Reversal of Credit
> Are not received back by the principal after – The Input Service Distributor may distribute the credit of central tax, integrated tax, and state tax subject to the
completion of job-work or otherwise or > are not received back by principal following conditions namely:-
> Are not supplied from the place of business Within a period of 3 years of being a) The credit can be distributed to the recipients of credit against a document containing such details as may
be prescribed (c) (d) In case of Sec 18(4) Reversal of credit
of the job worker as per sec 143 sent, it shall be treated as deemed (a) (b)
Registered person switching from Registered person is exempt
In case of Sec 18 (6) : Reversal of credit on supply
Person applied or Person obtaining - Sale, Amalgamation, Demerger in Special Cases of Capital Goods/ Plant & Machinery on
Within 1 year of being sent, it shall be treated supply by principal to job worker b) the amount of the credit distributed shall not exceed the amount of credit available for distribution registration within voluntary composition levy to normal tax payment supplies becoming a taxable supply Lease, Transfer of business
which ITC has been taken
as deemed supply and ITC if availed shall be c) the credit of tax paid on input services attributable to a recipient of credit, shall be distributed only to that 30 days & becoming Registration
reversed liable for registration Person entitled for ITC on Registered person 1) If capital goods or plant & machinery on
recipient The Registered apportion his ITC in ratio of
- Input as such held in stock Registered person switching from Taxable supply Cancellation which ITC has been taken are supplied
person shall transfer his Value of asset transfered to normal scheme of payment of tax becoming exempt of
d) the credit of tax paid on input services attributable to more than one recipient, shall be distributed on pro Person entitled for ITC on - Inputs contained in semi finished goods unutilized ITC in Ecr ledger
[Removed as such by way of sale
> Nothing contained in this section shall apply to moulds, dies, jigs & fixtures or tools sent out for job work rata basis of No benefit demerged unit to composition Levy Supply Registration transfer barter etc.] then registered
- Input as such held in stock - Inputs contained in finished goods held instock or transferee
- Inputs contained in semi-finished goods on Capital - Capital goods person shall pay higher of the following
- the turnover in state / union territory of such recipient during the relevant period to the aggregate of the 1) Amt to be reversed is equivalent to ITC on
Note:- For inputs – The period of 1 year shall be counted from the date of receipt of inputs by the job worker - Inputs contained in finished goods held in stcok goods [ITC = Input tax - 5% per qtr. or part these of from the date of invoice.] - Input as such held in stock a) Payment = ITC - 5% per at or part
For Capital goods – The period of 3 years shall be counted from the date of receipt of capital goods by the job worker turnover of all such recipients to whom such input service is attributable & which are operational in the Conditions - Inputs contained in semi finished goods
thereof
current year, during the said relevant period If person liable for registration Voluntary Registration Composition to normal : on the date immediately Exempt to taxable : on the date immediately 1) There is a specific provision for transfer of liabilities - Inputs contained in finished goods held in stock
2) Conditions of Rule 41 OR
As per sec 2(68) “job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the e) The credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst On the date immediately preceding on the date immediately preceding the date from which person become liable preceding the date from which such supply - Capital goods [reversal on prorata basis pertaining to remaining useful life in a month (taking
to pay tax under normal scheme become taxable. (a) declaration of details in the form GST ITC 02 for transfer of useful life as 5 yrs.
expression “job worker” shall be construed accordingly; such recipient on pro rata on the basis of the date from which he becomes preceding the date of credit . b) GST on transaction value
liable to pay tax registration After reversal balance if any in Ecr. ledger shall lapse
- - the turnover in state / union territory of such recipient during the relevant period to the aggregate of the 1) As per Sec 18(2) person is not entitled to take ITC if supply of input or capital goods is after expiry of 1 year from the (b) Certification of transfer of liabilities from CA/CMA
date of issue of tax invoice. (c) Acceptance of transferred credit by transferee on common Rule 44 : Procedure & conditions 2) In case of refectories bricks, modules &
As per sec 2(88)“principal” means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both turnover of all such recipients to whom such input service is attributable & which are operational in the current Important Comment : 2) Imp provisions of rule 40 : 1) Reversal of inputs shall be determined with corresponding invoices. If invoice is not available die, jugs & fixtures supplied as a scrap
portal
year, during the said relevant period If person failed to apply for reg. within 30 days then he is not a) Declaration in form GST ITC of within 30 days
(d) inputs & capital goods so transferred are duly accounted by then reversal is based on prevailing market price of inputs. then person may pay tax on transaction
b) If the aggregate claim amt is more than ` 2,00,000 it should be duly certified by practicing CA or CMA 2) Reversal of ITC shall be calculated separately for CGST, SGST & IGST. value instead of above 2 options.
For detailed discussion of this section refer chapter notes of Input tax credit eligible to take such ITC. c) ITC claimed under clause (c) & (d) of Sec 18(1) shall be crossverified by with details furnished by supplier in form transferee in his books of A/c GS
2

3) Reversal amt. will be added in output tax liability & details to be furnished in GST ITC 03
T

GSTR-1 & GSTR-4 on Common portal.

GS

T2
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Basic Concepts
Que. 1 GST is one of the widely accepted indirect taxation system prevalent in more than ______
countries across the globe.
(a) 60
(b) 110
(c) 130
(d) 140
Ans. (d) 140
Que. 2 Which country first introduced GST ?
(a) America
(b) France
(c) Egypt
(d) Italy
Ans. (b) France
Que. 3 Which of the following statement is correct?
(a) GST is based on principle of ‘pay as you earn’.
(b) GST is a destination based tax.
(c) GST is technically paid by consumers but it is actually funded by suppliers.
(d) All of the above
Ans. (b) GST is a destination based tax.
Que. 4 Which of the following Country follows dual GST model?
(a) Brazil
(b) Canada
(c) India
(d) All of the above
Ans. (d) All of the above
Que. 5 GST is a _______ based tax.
(a) Consumption
(b) Destination
(c) Consumption or destination
(d) None of the above
Ans. (c) Consumption or destination
Que. 6 GST is a comprehensive tax regime covering _______
(a) Goods
(b) Services
(c) Both goods and services
(d) Goods, services & imports
Ans. (c) Both goods and services
Que. 7 Which of the following taxes have been subsumed under GST?
1- Central Excise Duty
2- Service tax
3- VAT
4- Luxury Tax
Select the correct answer from the options given below –
(a) (1) & (2)
(b) (3), (1) & (2)
(c) (4), (1), (3) & (2)
(d) None of the above
Ans. (c) (4), (1), (3) & (2)
Que. 8 On ________, the Ministry of Finance released draft model law of GST in public domain for views
and suggestion.
(a) June 14, 2015
(b) June 14, 2016
 Page | 2

(c) June 21, 2016

(d) August 8, 2016
Ans. (b) June 14, 2016
Que. 9 Which of the following is the main decision-making body that was formed to finalize the design of
GST?
(a) GST Company
(b) Empowered Council
(c) Empowered Committee
(d) GST Council
Ans. (d) GST Council
Que. 10 Who is the Chairman GST Council?
(a) Vice President of India
(b) Union Finance Minister
(c) Leader of opposition
(d) Chief Justice of Supreme Court
Ans. (b) Union Finance Minister
Que. 11 In the GST Council, a decision will be taken by a ______ majority with the Centre having a
______ and the states the remaining _______
(a) Three-fourth; one-third vote; two-third
(b) One-third; three-fourth vote; two-third
(c) One-half; one-third vote; two-third
(d) Three-fourth; two-third vote; one-third
Ans. (a) Three-fourth; one-third vote; two-third
Que. 12 GST was first levied by France in ______
(a) 1947
(b) 2001
(c) 1954
(d) 1979
Ans. (c) 1954
Que. 13 Under GST the taxable event is __________
(a) Sale of goods
(b) Provision of services
(c) Sale of goods or provision of services or both
(d) Supply of goods or services or both
Ans. (d) Supply of goods or services or both
Que. 14 Which of the following country has maximum GST tax slab?
(a) Australia
(b) China
(c) Greece
(d) India
Ans. (d) India
Que. 15 What does “I” stand in IGST?
(a) International
(b) Integral
(c) Integrated
(d) Intra
Ans. (c) Integrated
Que. 16 The headquarter of GST Council is at _________
(a) Mumbai
(b) New Delhi
(c) Hyderabad
(d) Ahmadabad
Ans. (b) New Delhi
Que. 17 On Intra-State supply of goods or service which of the following type of GST can be levied?
(a) State GST (SGST)
 Page | 3

(b) Central GST (CGST)

(c) Integrated GST (IGST)
(d) (A) & (B)
Ans. (d) (A) & (B)
Que. 18 GST Stands for:
(a) Goods and Sales Tax
(b) Goods and Services Tax
(c) Grievances and Services Tax
(d) Gift and Sales tax
Ans. (b) Goods and Services Tax
Que. 19 GST is governed by:
(a) CBDT
(b) CBEC
(c) GST Council
(d) Local Authority
Ans. (c) GST Council
Que. 20 GST rate on Gold is :
(a) 5%
(b) 3%
(c) 28%
(d) 1%
Ans. (b) 3%
Que. 21 In India GST came effective from July 1 st, 2017. India has chosen _______ model of dual – GST.
(a) USA
(b) UK
(c) Canadian
(d) China
Ans. (c) Canadian
Que. 22 Which of the following country is the first one to implement GST?
(a) USA
(b) France
(c) China
(d) Switzerland
Ans. (b) France
Que. 23 The IGST is charged by ___________ Government.
(a) Central
(b) State
(c) Concerned department
(d) Both a and b
Ans. (a) Central
Que. 24 CGST stands for
(a) Central goods and sales tax
(b) Central goods and services tax
(c) Central gifts and services tax
(d) Central gifts and sale tax
Ans. (b) Central goods and services tax
Que. 25 In India, GST was launched on the midnight of:
(a) 30.05.2017
(b) 31.07.2017
(c) 30.06.2017
(d) 01.07.2017
Ans. (c) 30.06.2017
Que. 26 A special purpose vehicle ____________ has been launched to cater the need of GST.
(a) GSTC
(b) GSTN
 Page | 4

(c) GSTM
(d) GSTR
Ans. (b) GSTN
Que. 27 GSTN comes under which Act?
(a) Banking Regulation Act 1949
(b) RBI Act 1934
(c) Limitation Act, 1963
(d) Companies Act, 2013
Ans. (d) Companies Act, 2013
Que. 28 What does N stands for in HSN?
(a) Network
(b) Nationalization
(c) Nominee
(d) Nomenclature
Ans. (d) Nomenclature
Que. 29 Which of the following taxes will be levied on Imports?
(a) CGST
(b) SGST
(c) IGST
(d) Exempt
Ans. (c) IGST
Que. 30 Under which Act GST was introduced?
(a) 100 Constitution Amendment Act
(b) 101 Constitution Amendment Act
(c) 102 Constitution Amendment Act
(d) 122 Constitution Amendment Act
Ans. (b) 101 Constitution Amendment Act
Que. 31 GST council formation based on Article number __________.
(a) 279A
(b) 289A
(c) 266A
(d) 255A
Ans. (a) 279A
Que. 32 Who is the chairman of GST council?
(a) President of India
(b) Prime Minister
(c) Finance Minister
(d) Finance secretary
Ans. (c) Fiance Minister
Que. 33 Which of the following comes under sin tax?
(a) Pan Masala
(b) Tobacco
(c) Alcohol
(d) All of the above
Ans. (d) All of the above
Que. 34 Central goods and Services Tax Act may be called as:
(a) Central Goods and Services Tax Act, 2015
(b) Central Goods and Services Tax Act, 2016
(c) Central Goods and Service Tax Act, 2017
(d) Central Goods and Services Tax Act, 2018
Ans. (c) Central Goods and Services Tax Act, 2017
Que. 35 CGST Act, extends to:
(a) Whole of India including state of Jammu and Kashmir
(b) Whole of India excluding state of Jammu and Kashmir
(c) Whole of India excluding state of Jammu and Kashmir and north eastern states
 Page | 5

(d) Whole of India excluding state of Jammu and Kashmir and other notified category states
Ans. (a) Whole of India including state of Jammu and Kashmir
Que. 36 What are the taxes levied on an intra-State Supply?
(a) CGST
(b) SGST
(c) Both CGST and SGST
(d) ISGT
Ans. (c) Both CGST and SGST
Que. 37 The first State which ratified the GST Bill in India.
(a) Kerela
(b) Bihar
(c) Jharkhand
(d) Assam
Ans. (d) Assam
Que. 38 The items which will be taxable both under current Central Excise Law and new GST even after
the implementation of the GST Act.
(a) Motor Spirit
(b) Alcoholic Liquor for Human Consumption
(c) Tobacco and Tobacco Products
(d) Natural Gas
Ans. (c) Natural Gas
Que. 42 The recommendation of the GST Council will be _____________.
(a) Mandatory
(b) Only advisory Power
(c) Mandatory and sometimes Advisory
(d) Mandatory on States only
Ans. (b) Only advisory Power
Que. 39 The decision of the GST Council should be taken based on majority votes not less than:
(a) ½ of the weighted votes
(b) 2/3rd of the weighted votes
(c) 1/3rd of the weighted votes
(d) 3/4th of the Weighted Votes
Ans. (d) 3/4th of the Weighted Votes
Que. 40 The weightage of the votes of the Central Government in GST Council Decision will be ________
(a) ½ of the votes
(b) 2/3rd of the votes
(c) 1/3rd of the votes
(d) 3/4th of the Votes
Ans. (c) 1/3rd of the votes
Que. 41 The quorum required for a meeting of GST Council will be ___________.
(a) ½ of the members
(b) 2/3rd of the members
(c) 1/3rd of the members
(d) 3/4th of the members
Ans. (a) ½ of the members
 Page | 1

Chapter 2 : Scope of Supply

Que. 1 What are different types of supplies covered under the scope of Supply?
(a) Supplies made without consideration
(b) Supplies made with consideration
(c) Both of the above
(d) None of the above
Ans. (c) Both of the above
Que. 2 The activities to be treated as supply of goods or supply of services as referred to in ___________ of
CGST Act, 2017.
(a) Schedule I
(b) Schedule III
(c) Schedule II
(d) Section 8
Ans. (c) Schedule II
Que. 3 Supply includes import of services for a consideration _______________.
(a) In the course or furtherance of business;
(b) Not in the course of furtherance of business;
(c) Whether or not in the course or furtherance of business;
(d) None of the above
Ans. (c) Whether or not in the course or furtherance of business;
Que. 4 Activities made or agreed to be made without a consideration covered in scope of supply are
specified in ___________ .
(a) Schedule I
(b) Schedule III
(c) Schedule II
(d) Section 8
Ans. (a) Schedule I
Que. 5 Activities or transactions specified in __________ shall be treated neither as a supply of goods nor a
supply of services.
(a) Schedule I
(b) Schedule III
(c) Schedule II
(d) Section 8
Ans. (b) Schedule III
Que. 6 Transfer of the title in goods shall be treated as ______________ .
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services.
Ans. (a) Supply of goods
Que. 7 Any lease, tenancy, easement, licence to occupy land is ____________
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (c) Supply of services
Que. 8 Any lease or letting out of the building including a commercial, industrial or residential complex for
business or commerce, either wholly or partly, is _____________.
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services.
(c) Supply of services
(d) either as a supply of goods or as a supply of services.
Ans. (c) Supply of Services
 Page | 2

Que. 9 Transfer of title in goods under an agreement which stipulates that property in goods shall pass at a
future date upon payment of full consideration as agreed _____________.
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services.
(c) Supply of services
(d) Either as a supply of goods of or as a supply of services.
Ans. (a) Supply of goods
Que. 10 Transfer of right in goods or of undivided share in goods without the transfer of title thereof shall be
treated as_____
(a) Supply of goods
(b) Neither as supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services.
Ans. (c) Supply of services
Que. 11 Any treatment or process which is applied to another person’s goods is ______________
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services.
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (c) Supply of services
Que. 12 Where, by or under the direction of a person carrying on a business, goods held or used for the
purposes of the business are put to any private use or are used, or made available to any person for
use, for any purpose other than a purpose of the business, whether or not for a consideration, the
usage or making available of such goods is ___________
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (c) Supply of services
Qu. 13 Renting of immovable property is _____________
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (c) Supply of services
Que. 14 Temporary transfer or permitting the use or enjoyment of any intellectual property right is _______.
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (c) Supply of services
Que. 15 Construction of a complex, building, civil structure or a part thereof, including a complex or
building intended for sale to a buyer, wholly or partly, except where the entire consideration has
been received after issuance of completion certificate, where required, by the competent authority or
after its first occupation, whichever is earlier is _________.
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (c) Supply of services
Que. 16 Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is
________
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services.
(c) Supply of services
 Page | 3

(d) Either as a supply of goods or as a supply of services

Ans. (c) Supply of services
Que. 17 Services by any court or Tribunal established under any law for the time being in force is ________
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services.
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (b) Neither as a supply of goods nor a supply of services
Que. 18 Services by an employee to the employer in the course of or in relation to his employment is ______
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (b) Neither as a supply of goods nor a supply of services
Que. 19 Supply of goods by any unincorporated association or body of persons to a member thereof for cash,
deferred payment or other valuable consideration is ______________.
(a) Supply of goods
(b) Neither as a supply of goods nor a supply of services
(c) Supply of services
(d) Either as a supply of goods or as a supply of services
Ans. (a) Supply of goods
Que. 20 Gift not exceeding __________ in value in a financial year by an employer to an employee shall not
be treated as supply of goods or services or both.
(a) Rs.50,000
(b) Rs.5,000
(c) Rs.1,00,000
(d) Rs.1,50,000
Ans. (a) Rs.50,000
Que. 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
Ans. (c) Both of the above
Que 22 What are the supplies on which reverse charge mechanism would apply?
(a) Notified categories of goods or services or both
(b) Inward supply of goods or services or both from an unregistered dealer
(c) Both of the above
(d) None of the above
Ans. (c) Both of the above
Que. 23 Who can notify a transaction to be supply of ‘goods’ or ‘services’?
(a) Board
(b) Central Government
(c) GST Council
(d) None of the above
Ans. (b) Central Government
Que. 24 ______________ is the maximum rate prescribed under CGST Act, 2017.
(a) 12%
(b) 28%
(c) 20%
(d) 40%
Ans. (c) 20%
Que. 25 Supply of the following is not liable to CGST _____________
(a) Alcoholic liquor for industrial consumption
(b) Alcoholic liquor for medicinal consumption
 Page | 4

(c) Alcoholic liquor for human consumption

(d) Lottery
Ans. (c) Alcoholic liquor for human consumption
Que. 26 Whether Alcoholic Liquor for industrial and other usages is taxable under GST?
(a) No
(b) Yes
(c) Exempted
(d) Non-Taxable
Ans. (b) Yes
Que. 27 The tax liability of a person receiving the goods instead of the person supplying the goods will be
knows as :
(a) Purchase Tax
(b) Reverse Tax
(c) Reverse Charge
(d) None of the above
Ans. (c) Reverse Charge
 Page | 1

Chapter 3 : Composition Scheme

Que. 1 What is the threshould limit of turnover in the preceding financial year for opting to pay tax under
composition scheme?
(a) Rs.20 lacs
(b) Rs.10 lacs
(c) Rs.75 lacs
(d) None of the above
Ans. (c) Rs.75 lacs
Que. 2 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%
(d) No composition for manufacturer
Ans. (b) 1%
Que. 3 What is the rate applicable under CGST to a registered person opting to taxes under composition
scheme, not being a manufacturer or a hotelier?
(a) 1%
(b) 2.5%
(c) 0.5%
(d) None of the above
Ans. (c) 0.5%
Que. 4 Which of the following persons can opt for composition scheme?
(a) Person making any supply of goods which are not leviable to tax under this Act;
(b) Person making any inter-State outward supplies of goods;
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source
(d) None of the above
Ans. (d) None of the above
Que. 5 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
Ans. (d) Value of inward supplies on which tax is paid on reverse charge basis
Que. 6 Can Composition scheme be availed if the registered person effects interstate outward 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
Ans. (b) No
Que. 7 What is the rate applicable under CGST to a registered person being a hotelier opting to pay taxes
under composition scheme?
(a) 1%
(b) 0.5%
(c) 2.5%
(d) None of the above
Ans. (c) 2.5%
Que. 8 Can a registered person opt for composition scheme only for one out of his 3 business verticals
having same Permanent Account Number?
(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
Ans. (b) No
 Page | 2

Que. 9 Can a registered person opting for composition scheme collect tax on his outward supplies?
(a) Yes
(b) No
(c) Yes, if the amount of tax is prominently indicated in the invoice issued by him
(d) Yes, only on such goods as may be notified by the Central Government
Ans. (b) No
Que. 10 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
Ans. (b) No
Que. 11 Which of the following persons can opt for composition scheme?
(a) Person making any supply of goods which are not leviable to tax under this Act;
(b) Person making any inter-State outward supplies of goods;
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source
(d) None of the above
Ans. (d) None of the above
Que. 12 The threshould limit of turnover in the preceding financial year for opting to pay tax under
composition scheme other than specified states is?
(a) Rs.20 lakhs
(b) Rs.10 lakhs
(c) Rs.75 lakhs
(d) None of the above
Ans. (c) Rs.75 lakhs
Que. 13 The threshould limit of turnover in the preceding financial year for opting to pay tax under
composition scheme in north eastern states is ____________
(a) Rs.20 lakhs
(b) Rs.10 lakhs
(c) Rs.75 lakhs
(d) Rs.50 lakhs
Ans. (d) Rs.50 lakhs
Que. 14 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
Ans. (d) Value of inward supplies on which tax is paid on reverse charge basis
Que. 15 XYZ Ltd. is supplier of goods as well services. He can opt for composition scheme in respect of
________.
(a) Supply of goods
(b) Supply of services
(c) Supply of goods as well as services
(d) Neither for supply of goods nor supply of services
Ans. (d) Neither for supply of goods nor supply of services
Que. 16 The following suppliers cannot opt for composition scheme ____________________.
(a) Inter-State supplier of goods;
(b) Person supplying goods through an electronic commerce operator
(c) Supplier of services other than restaurant services
(d) All of the above
Ans. (d) All of the above
Que. 17 ____________ means two or more individual supplies of goods or services, or any combination
thereof, made in conjunction with each other by a taxable person for a single price where such
supply does not constitute a composite supply.
(a) Mixed Supply
 Page | 3

(b) Principle Supply

(c) Inward Supply
(d) Exempt Supply
Ans. (a) Mixed Supply
Que. 18 ___________ Means the 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
(a) Mixed Supply
(b) Principal Supply
(c) Inward Supply
(d) Exempted Supply
Ans. (b) Principal Supply
 Page | 1

Chapter 5 : Valuation of Supply

Que. 1 The value of supply of goods and services shall be the ---
(a) Transaction value
(b) Retail sale price
(c) Wholesale price
(d) None of above
Ans. (a) Transaction value
Que. 2 The value of supply should include ----
(a) Incidental expenses, including commission and packing, charged by the supplier to the recipient
of a supply
(b) Interest, late fee or penalty for delayed payment of any consideration for any supply
(c) Subsidies directly linked to the price except subsidies provided by the Central and State
Government
(d) All of the above
Ans. (d) All of the above
Que. 3 The value of taxable supply should not include –
(a) Taxes levied under CGST Act, 2017
(b) Taxes levied under SGST Act, 2017
(c) Taxes levied under GST Compensation Cess Act, 2017
(d) All of the above
Ans. (d) All of the above
Que. 4 Interest or late fee or penalty for delayed payment of any consideration for any supply __________
(a) Shall be included in value of taxable supply
(b) Shall be excluded in value of taxable supply
(c) Shall require no adjustment
(d) Shall be included or excluded s per wish of supplier
Ans. (a) Shall be include in value of taxable supply
Que. 5 Subsidies provided by the Central Government and State Governments ____________
(a) Shall be included in value of taxable supply
(b) Shall be excluded in value of taxable supply
(c) Shall require no adjustment
(d) Shall be included or excluded as per wish of supplier
Ans. (b) Shall be excluded in value of taxable supply
Que. 6 What deductions are allowed from the transaction value?
(a) Discounts offered to customers, subject to conditions
(b) Incidental expenses
(c) Amount paid by customer on behalf of the supplier
(d) Freight charges
Ans. (a) Discounts offered to customers, subject to conditions
Que. 7 The value of supply of goods and services shall be the
(a) Transaction value
(b) MRP
(c) Market Value
(d) None of above
Ans. (a) Transaction value
Que. 8 The value of supply should include
(a) Any non-GST taxes, duties, cesses, fees charged by supplier separately
(b) Interest, late fee or penalty for delayed payment of any consideration for any supply
(c) Subsidies directly linked to the price except subsidies provided by the Central and State
Government
(d) All of the above
Ans. (d) All of the above
Que. 9 What deductions are allowed from the transaction value
 Page | 2

(a) Discounts offered to customers, subject to conditions

(b) Packing Charges, subject to conditions
(c) Amount paid by customer on behalf of the supplier, subject to conditions
(d) Freight charges incurred by the supplier for CIF terns of supply, subject
Ans. (a) Discounts offered to customers, subject to conditions
Que. 10 When can the transaction value be rejected for computation of value of supply
(a) When the buyer and seller are related and price is not the sole consideration
(b) When the buyer and seller are related or price is not the sole consideration
(c) It can never be rejected
(d) When the goods are sold at very low margins
Ans. (b) When the buyer and seller are related or price is not the sole consideration
Que. 11 If the goods are supplied to related persons then how should the taxable person ascertain the value of
supplies?
(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) Refer the Rules which will be prescribed for this purpose
Ans. (d) Refer the Rules which will be prescribed for this purpose
Que. 12 Whether definition of Inputs includes capital goods
(a) Yes
(b) No
(c) Certain capital goods only
(d) None of the above
Ans. (a) Yes
Que. 13 The term “used in the course or furtherance of business” means?
(a) It should be directly co related to output supply
(b) It is planned to use in the course of business
(c) It is used in the course of business
(d) It is used in the course of business for making outward supply
Ans. (c) It is used in the course of business
 Page | 1

Chapter – 6
Que. 1 “Input” means :
(a) Any Goods Excluding Capital Goods
(b) Any Goods including Capital Goods
(c) Capital Goods Only
(d) Capital goods used for the furtherance of the Business
Ans. (a) Any Goods Excluding Capital Goods
Que. 2 Whether definition of Inputs includes capital goods.
(a) Yes
(b) No
(c) Specified capital goods only
(d) None of the above
Ans. (d) None of the above
Que. 3 Is it mandatory to capitalize the value of capital goods in books of Accounts?
(a) Yes
(b) No
(c) At the option of the recipient
(d) None of the above
Ans. (a) Yes
Que. 4 Input tax credit can be taken by ____________.
(a) Registered dealer not opting for composition scheme
(b) Registered dealer opting for composition scheme
(c) Unregistered dealers
(d) All of the above
Ans. (a) Registered dealer not opting for composition scheme
Que. 5 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) No, 50% in first year and balance in subsequent years
Ans. (a) Yes
Que. 6 Whether credit on inputs should be availed based on receipt of documents or receipt of goods
(a) Receipt of goods
(b) Receipt of Documents
(c) Both
(d) Either receipt of documents or Receipt of goods
Ans. (c) Both
Que. 7 Input tax credit in respect of Motor vehicles and other conveyances will be available when they are
used for making taxable supplies of _________________.
(a) Of such vehicles or conveyances
(b) Transportation of passengers
(c) Imparting training on driving, flying, navigating such vehicles or conveyances
(d) All of the above
Ans. (d) All of the above
Que. 8 Input tax credit in respect of inputs supplied by principal to job-worker for job-work shall be
allowed to _____________
(a) Principal
(b) Job-worker
(c) Partly to principal and partly to job-worker
(d) No one
Ans. (a) Principal
Que. 9 Input tax credit on capital goods can be availed in _____________
(a) 36 installments
 Page | 2

(b) 12 installments
(c) 1 installment
(d) 6 installments
Ans. (c) 1 installment
Que. 10 A registered persons shall not be entitled to take input tax credit in respect of any supply of goods or
services or both to him after the expiry of ___________ from the date of issue of tax relating to such
supply.
(a) One year
(b) Two years
(c) Three years
(d) Six months
Ans. (a) One year
Que. 11 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
Ans. (c) Input tax credit is eligible if depreciation on tax component is not availed
Que. 12 Proportionate credit for capital goods is allowed _____________.
(a) For business and non-business purpose
(b) For business or non-business purpose
(c) Both of the above
(d) None of the above
Ans. (a) For business and non-business purpose
Que. 13 Banking company or Financial Institution have an option of claiming:
(a) Eligible Credit or 50% credit of the tax paid on inputs, input services and capital goods
(b) Only 50% Credit
(c) Only Eligible
(d) Eligible credit and 50% credit of the tax paid on inputs, input services and capital goods
Ans. (a) Eligible Credit or 50% credit of the tax paid on inputs, input services and capital goods
Que. 14 Any input tax paid on purchase of goods or services by an assessee for employees is eligible?
(a) Yes
(b) No
(c) Yes, on the services notified which are obligatory for and employer to provide to its employees
under any law for the time being in force
(d) Not applicable
Ans. (c) Yes, on the services notified which are obligatory for and employer to provide to its
employees under any law for the time being in force
Que. 15 Principal entitled for input tax credit on inputs sent for job work _______________________.
(a) If goods sent are returned within 1 year
(b) If goods sent are returned within 3 years
(c) If goods sent are returned within 6 months
(d) If goods sent are returned within 9 months
Ans. (a) If goods sent are returned within 1 year
Que. 16 Principal entitled for input tax credit on capital goods if sent for job work ________________.
(a) If goods sent are returned within 1 year
(b) If goods sent are returned within 3 years
(c) If goods sent are returned within 6 months
(d) If goods sent are returned within 9 months
Ans. (b) If goods sent are returned within 3 years
Que. 17 In case of Input service distributor whether distributor and recipient should have same PAN.
(a) Yes
(b) No
(c) Yes if in same state and different in other state
 Page | 3

(d) None of the above

Ans. (a) Yes
Que. 18 Can the credit distributed by an Input service distributor exceed the amount available for distribution
(a) Yes but subject to fulfillment of certain conditions
(b) No
(c) Yes
(d) None of the above
Ans. (b) No
Que. 19 The credit attributable to a particular recipient shall be distributed to _________________
(a) Only to that recipient
(b) To all the recipients
(c) To recipient as per the wish of ISD
(d) None of the recipients
Ans. (a) Only to that recipient
Que. 20 Input Tax credit as credit in Electronic Credit ledger can be utilized for -------
(a) Payment of Interest
(b) Payment of penalty
(c) Payment of Fine
(d) Payment of Taxes
Ans. (d) Payment of Taxes
Que. 21 A person is entitled to take credit of input tax as self-assessed in the return and credited to Electronic
credit ;edger on ------
(a) Final basis
(b) Provisional basis
(c) Partly Provisional and partly final basis
(d) None of the above
Ans. (b) Provisional of penalty
Que. 22 Provisional Input tax credit can be utilized against ________________
(a) Any Tax liability
(b) Self Assessed output Tax liability
(c) Interest and Penalty
(d) Fine
Ans. (b) Self Assessed output Tax liability
Que. 23 Matching of Input Tax credit on inward supply by recipient is undertaken with ___________
(a) Monthly return filed by the supplier
(b) Outward supply filed by the supplier
(c) Invoices maintained by the supplier
(d) None of the above
Ans. (b) Outward supply filed by the supplier
Que. 24 Input tax credit is not available on _______________?
(a) Goods used for personal use
(b) Trading goods
(c) Capital goods
(d) Inputs used for business
Ans. (a) Trading goods
Que. 25 Cross utilization of ITC is not allowed between:
(a) SGST and CGST
(b) SGST and IGST
(c) IGST and CGST
(d) None of the above
Ans. (a) SGST and CGST
Que. 26 Every registered taxable persons hall 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
 Page | 4

(c) Electronic Cash Ledger

(d) Electronic Credit Ledger
Ans. (d) Electronic Credit Ledger
Que. 27 ITC includes tax payable under ________________ also :
(a) VAT
(b) Reverse charge
(c) Excise
(d) Customers
Ans. (b) Reverse Charge
Que. 28 Whether it is necessary to capitalize the capital goods in the books of account
(a) Yes
(b) No
(c) Only use of goods is recognized
(d) Accounting is not relevant
Ans. Yes
Que. 29 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
Ans. (c) Input tax credit is eligible if depreciation on tax component is not availed
Que. 30 Exempt supplies under Section 17 (apportionment of credit) includes
(a) Only exempted supplies
(b) Reverse charge supplies and sale of land
(c) Exempted supplies, reverse charge supplies, transaction in securities, sale of land, sale of
building
(d) None of the above
Ans. (c) Exempted supplies, reverse charge supplies, transaction in securities, sale of land, sale of
building
 Page | 1

Chapter – 7
Que. 1 Accounts are required to be maintained in
(a) Manual form
(b) Electronic form
(c) Manual and electronic form
(d) Manual or electronic form
Ans. (d) Manual or electronic form
Que. 2 The books and other records u/s 35 are to be maintained at
(a) Place where the books and accounts are maintained
(b) Place of address of the Proprietor/Partner/Director/Principal Officer
(c) Principal place of business mentioned in the Certificate of Registration
(d) Any of the above
Ans. (c) Principal place of business mentioned in the Certificate of Registration
Que. 3 What accounts and records are required to be maintained by every registered taxable person at his
principal place of business
(a) Account of production or manufacture of goods
(b) Inward or outward supply of goods and/or services
(c) Stock of goods
(d) All of the above
Ans. (d) All of the above
Que. 4 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 the above
Ans. (d) All the above
Que. 5 In case, more than one place of business situated within a state specified in the Registration
Certificate, the books and Accounts shall be maintained at
(a) Each place of business pertaining to such place alone
(b) Place where the books of accounts are maintained for all places situated within a state
(c) At principal place of business covered mentioned in the Registration Certificate for all places of
business in each state
(d) Any of the above
Ans. (a) Each place of business pertaining to such place alone
Que. 6 If a turnover during a financial year exceeds the prescribed limit, then accounts get audited by
(a) Chartered Accountant
(b) Cost Accountant
(c) Either (a) or (b)
(d) All of the above
Ans. (c) Either (a) or (b)
Que. 7 Can all the records be maintained in an electronic form?
(a) Yes
(b) No
(c) Some records
(d) Yes, if authenticated by digital signature
Ans. (d) Yes, if authenticated by digital signature
Que. 8 Taxable person has to maintain his records for a period for
(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
Ans. (a) Expiry of seventy two months from the last date of filing of Annual Return for the year
Que. 9 Tax invoice must be issued by _____________
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(a) Every supplier

(b) Every taxable person
(c) Registered persons not paying tax under composition scheme
(d) All the above
Ans. (c) Registered persons not paying tax under composition scheme
Que. 10 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) Earliest of the above dates
Ans. (a) At the time of removal of goods;
Que. 11 The tax invoice should be issued _________ the date of supply of service:
(a) Within 30 days from
(b) Within 1 months from
(c) Within 15 days from
(d) On
Ans. (a) Within 30 days from
Que. 12 A person who has applied for registration can
(a) Provisionally collect tax till his registration is approved, on applying for registration, if he has
applied for registration within prescribed time;
(b) Neither collect tax nor claim input tax credit;
(c) Issue ‘revised invoice’ and collect tax within 1 month of grant of registration, subject to
conditions;
(d) All of the above
Ans. (c) Issue ‘revised invoice’ and collect tax within 1 month of grant of registration, subject to
conditions;
Que. 13 A bill of supply can be issued in case of inter-State and intra-State:
(a) Exempted supplies;
(b) Supplies to registered persons;
(c) Supplies to unregistered persons;
(d) None of the above
Ans. (a) Exempted supplies;
Que. 14 The receipt voucher must contain:
(a) Details of goods or services;
(b) Invoice reference;
(c) Full value of supply ;
(d) None of the above
Ans. (a) Details of goods or services;
Que. 15 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
Ans. (d) Supplier invoices the recipient on a regular or periodic basis
Que. 16 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
Ans. (a) Should be issued by the supplier;
Que. 17 A credit note is issued by ___________ and it is a document accepted for GST purposes:
(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
 Page | 3

Ans. (a) Supplier, for reducing the tax/taxable value

Que. 18 A registered person supplying taxable goods shall issue a tax invoice showing –
(a) The description
(b) Quantity and value of goods
(c) The tax charged thereon
(d) All the above
Ans. (d) All the above
Que. 19 A registered person supplying taxable goods shall issue invoice __________ where the supply
involves movement of goods
(a) Before or at the time removal of goods for supply to the recipient
(b) Within 30 days after the removal of goods
(c) Within 45 days after the removal of goods
(d) At any time as per wish of the supplier
Ans. (a) Before or at the time removal of goods for supply to the recipient
Que. 20 A registered person may not issue a tax invoice if the value of the goods or services or both supplied
is less than ___________
(a) Rs.200
(b) Rs.500
(c) Rs.1000
(d) Rs.2,000
Ans. (a) Rs.200
 Page | 1

Chapter – 8
Que. 1 The details of outward supplies of goods or services shall be submitted by -------
(a) 10th of the succeeding month
(b) 18th of the succeeding month
(c) 15th of the succeeding month
(d) 20th of the succeeding month
Ans. (a) 10th of the succeeding month
Que. 2 Details of Outward supplies shall include ----
(a) Invoice
(b) Credit and Debit notes
(c) Revised invoice issued in relation to outward supplies
(d) All the above
Ans. (d) All the above
Que. 3 The normal permissible Time Period to upload the statement of outward supply will be:
(a) From 01st to 10th of the Next Month
(b) From 11th to 15th of the Next Month
(c) From 11th to 15th of the Next Month
(d) From 11th to 20th of the Next Month
Ans. (a) From 01st to 10th of the Next Month
Que. 4 The registered person shall not be allowed to furnish the details of outward supplies during the
period ____________ day of the month succeeding the tax period.
(a) From 01st to 10th of the Next Month
(b) From 11th to 15th of the Next Month
(c) From 11th to 15th of the Next Month
(d) From 11th to 20th of the Next Month
Ans. (c) From 11th to 15th of the Next Month
Que. 5 The date by which the GSTN will auto populate the statement of inward supplies based details of
outward supply at the end of the recipient of the supplies?
(a) On 11th of the Next Month
(b) On 15th of the Next Month
(c) On 17th of the Next Month
(d) On 20th of the Next Month
Ans. (a) On 11th of the Next Month
Que. 6 The details of inward supplies of goods or services shall be submitted by ---
(a) 10th of the succeeding month
(b) 18th of the succeeding month
(c) 15th of the succeeding month
(d) 20th of the succeeding month
Ans. (c) 15th of the succeeding month
Que. 7 Every tax payer paying tax under section 10 (Composition levy) shall file the return ----
(a) By 18th of the month succeeding the quarter
(b) By 18th of the month succeeding the month
(c) By 10th of the succeeding month
(d) By 20th of the month succeeding the quarter
Ans. (a) by 18th of the month succeeding the quarter
Que. 8 The e-commerce operator collecting tax under section 52 shall file its monthly return ---
(a) By 18th of the succeeding month
(b) 20th of the month succeeding the quarter
(c) 17th of the succeeding month
(d) 10th of the succeeding month
Ans. (d) 10th of the succeeding month
Que. 9 The final return shall be filed by the registered taxable person within ----
(a) 3 months of the date of cancellation
 Page | 2

(b) Date of order of cancellation

(c) Later of the (a) or (b)
(d) None of the above
Ans. (c) Later of the (a) or (b)
Que. 10 Every registered taxable person who is required to get his accounts audited u/s 35(5) shall furnish
electronically –
(a) Annual return
(b) Audited copy of annual accounts
(c) Reconciliation statement reconciling the value of supplies declared in the return and the
financial statement
(d) All of the above
Ans. (d) All of the above
Que. 11 A goods and service tax practitioner 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
Ans. (d) All of the above
Que. 12 The dead line for making amendments ( in respect of the already filed returns) by incorporating the
same in to any subsequent return period will be:
(a) September, 30th of the Next Financial Year
(b) December, 31st of the Next Financial Year
(c) September, 30th of the Next Financial Year or Date of filing of the Annual Return whichever is
earlier
(d) No Such Dead Line code or tax rate
Ans. (c) September, 30th of the Next Financial Year or Date of filing of the Annual Return
whichever is earlier
 Page | 1

Chapter – 9
Que. 1 The amounts can be credited in electronic cash ledger by ____________________
(a) Internet banking
(b) Using credit or debit cards
(c) National Electronic Fund Transfer (NEFT), or Real Time Gross Settlement (RTGS)
(d) Any of the above
Ans. (d) Any of the above
Que. 2 The input tax credit as self-assessed in the return of a registered person shall be credited to his
______, in accordance with Section 41, to be maintained in such manner as may be prescribed.
(a) Electronic cash ledger
(b) Electronic credit ledger
(c) Personal ledger account
(d) Refund account
Ans. (b) Electronic credit ledger
Que. 3 Suppose one dealer has a SGST Credit of Rs.4 lakhs in this ITC Ledger and at the same time, he has a
CGST output liability of Rs.3 lakhs. What an amount should be deposited by that dealer to his
Electronic Cash Ledger maintained in GSTN Portal to file a Valid return.
(a) No Deposit is Required
(b) Rs.2 lakh
(c) Rs. 3 lakh
(d) Rs.7 lakh
Ans. (c) Rs.3 lakh
Que. 4 The permissible order of cross utilisation of IGST credit over the tax liabilities
(a) SGST, CGST and IGST
(b) IGST, CGST and SGST
(c) CGST, IGST and SGST
(d) CGST, SGST and IGST
Ans. (b) IGST, CGST and SGST
Que. 5 Electronic Credit Ledger is Credited By:
(a) Cash Deposit towards Tax remittance
(b) Input tax credit on IGST, CGST and SGST
(c) Cash Deposit towards Fees, Fine, Interest and Penalty
(d) Advance tax Remittance
Ans. (b) Input tax credit on IGST, CGST and SGST
Que. 6 Suppose one dealer has a credit of Rs.5 lakhs in his Electronic ITC Ledger. That dealer has an interest
arrears dues of Rs.6 lakhs and penalty dues of Rs.2 lakhs. If so, how much, he has to deposit to settle
the above interest and penalty dues?
(a) Rs.3 lakhs
(b) Rs.6 lakhs
(c) Rs.2 lakhs
(d) Rs.8 lakhs
Ans. (d) Rs.8 lakhs
Que. 7 At what rate should the tax be collected at source under CGST Act, 2017?
(a) 0.5%
(b) 1%
(c) 2%
(d) 3%
Ans. (b) 1%
Que. 8 When an e-commerce operator is required to register under GST?
(a) When he is required to collect tax at source under section 52
(b) When his aggregate turnover exceeds the threshold limit
(c) When he is required to discharge tax on the taxable supply or services made by the supplier
through him under section 9(5)
 Page | 2

(d) It is mandatory to register irrespective of the threshold limit

Ans. (d) It is mandatory to register irrespective of the threshold limit
Que. 9 The amount collected under section 52(1) as TCS shall be paid to the Government by the E-
commerce operator within ______________, in such manner as may be prescribed.
(a) 10 days after the end of the month in which such collection is made
(b) 20 days after the end of the month in which such collection is made
(c) 30 days after the end of the month in which such collection is made
(d) 10 days before the end of the month in which such collection is made
Ans. (a) 10 days after the end of the month in which such collection is made
Que. 10 Can a supplier take credit of the TCS?
(a) Yes
(b) No
(c) Yes, on the basis of the valid return filed
(d) Yes, on the basis of a valid return filed by the e-commerce operator and there is no discrepancy
in the returns
Ans. (d) Yes, on the basis of a valid return filed by the e-commerce operator and there is no
discrepancy in the returns
 Revisionary Test Paper_Jun 2018

Intermediate
Group II
Paper 11: INDIRECT TAXATION
(SYLLABUS – 2016)

Section A: Goods and Services Tax (GST)

1. Answer the following questions:

(A) Multiple choice questions:
(a) The scope of supply of goods or services or both includes —
(i) Sale;
(ii) Exchange;
(iii) Lease;
(iv) All of the above.

(b) Sasta Bazar offers a free bucket with detergent purchased. It is a —

(i) Composite supply;
(ii) Mixed supply;
(iii) Principal supply;
(iv) None of the above.

(c) The form to be used for filing return by a taxpayer under composition scheme is:
(i) GSTR-4;
(ii) GSTR-5;
(iii) GSTR-6;
(iv) GSTR-7.

(d) As per the GST Law, every registered taxable person must maintain the accounts books
and records for at least:
(i) 36 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records;
(ii) 60 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records;
(iii) 72 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records;
(iv) 18 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records.

(e) The electronic ledger which is used to record and maintain all the liabilities of a taxable
person, is called —
(i) Electronic credit ledger;
(ii) Electronic liability ledger;

DoS, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1
 Revisionary Test Paper_Jun 2018

(iii) Electronic cash ledger;

(iv) None of the above.

Answer:
(a) (iv)
(b) (ii)
(c) (i)
(d) (iii)
(e) (ii)

(B) Say True or False for the following question:

(a) As per Anti Profiteering, Any reduction in rate of tax on any supply of goods or services or
the benefit of input tax credit shall be passed on to the recipient by way of
commensurate reduction in prices.
(b) Under GST, every registered person whose aggregate turnover during a financial year
exceeds rupees ten crores has to get his accounts audited by a Chartered Accountant
or a Cost Accountant.
(c) The relevant form for application for revocation of cancellation of GST registration is GST
REG-22.
(d) Goods and Services Taxpayer Identification Number (GSTIN) is a state-wise PAN-based
15 digit number.
(e) Place of supply of services, in relation to training and performance appraisal provided to
a registered person, will be the location of provider of Service.

Answer:
(a) True
(b) False
(c) False
(d) True
(e) False.

(C) Match the following:

Column ‗A‘ Column ‗B‘
1. Reverse charge mechanism A GST has been implemented
2. Goods and services tax B Recipient is liable to pay GST
3. Jammu & Kashmir C Special Category State under GST
4. 1st July, 2017 D Eliminates cascading effect of tax
5. Central Goods and Services Tax E Levied and collected by Central
Government

Answer:
1. B
2. D
3. C
4. A
5. E.

2.(a) State the advantages of GST.

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 Revisionary Test Paper_Jun 2018

Section B: Customs Law

25. Fill in the blanks:

(a) ________________ means where goods are cast into sea to reduce weight of ship to
prevent it from sinking and the thrown goods sink.
(b) Where any article exported by an exporter to India at less than its normal value, the
Central Govt., may impose ______________ upon such importation into India.
(c) The effective rate of customs duty on baggage is __________.
(d) If the assessment is delayed for imported goods, then those goods can be stored in
public warehouse without executing a bond, is called ______________________.
(e) _____________ goods must be same in all respects, except for minor differences in
appearance.

Answer:
(a) Jetsam
(b) anti-dumping duty
(c) 36.05%
(d) warehousing without warehousing
(e) Identical.

26.(a) Define foreign going vessel or aircraft under Customs Act.

(b) An importer imported some goods for subsequent sale in India at $ 10,000 on assessable
value basis. Relevant exchange rate and rate of duty are as follows:
Particulars Date Exchange rate Rate of Basic
declared by the CBE&C Customs Duty
Date of submission of 25th February ` 58/USD 10%
bill of entry 2018
Date of entry inwards 5th March 2018 ` 58.75/USD 12%
granted to the vessel
Calculate Assessable value and Customs Duty in Indian rupees?

Answer:
(a) Foreign going vessel or aircraft:
As per section 2(21) of the Customs Act, the foreign going vessel or aircraft from any port or
airport in India to any port or airport outside India,

The following are also included in the definition:

(i) A foreign naval vessel doing naval exercises in Indian waters
(ii) A vessel engaged in fishing or any other operation (like oil drilling by domestic vessel or
foreign vessel) outside territorial waters.
(iii) A vessel going to a place outside India for any purpose whatsoever.

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 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 1

Paper 11- Indirect Taxation

Full Marks: 100 Time allowed: 3 hours

The figures in the margin on the right side indicate full marks.
Working notes should form part of the answer.

Section – A
Answer question No. 1 which is compulsory and any four from rest of this section.

1. Answer the following questions:

(A) Multiple choice questions: [5×1=5]
(i) Which of the following is not a feature of indirect taxes?
(a) Regressive nature
(b) Supply based taxes
(c) Rate of taxes are different from person to person
(d) No previous year and assessment year concept.

(ii) Goods and Services Tax (GST) has been implemented in India w.e.f. —
(a) 1st July, 2017;
(b) 1st June, 2017;
(c) 1st September, 2017;
(d) 1st April, 2017.

(iii) Which of the following persons are not entitled to avail Composition Scheme?
(a) persons engaged in the supply of services (other than restaurant and outdoor
catering service);
(b) persons engaged in making any supply of goods which are not leviable to tax
under this Act
(c) persons engaged in making any inter-state outward supplies of goods
(d) all of the above.

(iv) The form of return which is used by the compounding taxable persons to file their
return quarterly is:
(a) GSTR-1;
(b) GSTR-2;
(c) GSTR-3;
(d) GSTR-4.

(v) Mr. T, a thief has stolen motorbike and sells the motorbike to Mr. Q. It is illegal to
steal a motorbike. Sale of motorbike will be considered as:
(a) supply and liable to be taxed;
(b) supply but not liable to be taxed;
(c) not at all supply;
(d) None of the above.

Answer:
(i) (c)
(ii) (a)
(iii) (d)

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 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 1

(iv) (d)
(v) (a)

(B) Say True or False for the following question: [5×1=5]

(i) Goods and Services Taxpayer Identification Number (GSTIN) is a state-wise PAN-
based 15 – digit number.
(ii) Recovery Agent Services to banking or NFBCs are exempted from GST.
(iii) The frequency to file GSTR – 1 is monthly.
(iv) GST is extended to whole of India excluding the State of Jammu and Kashmir.
(v) Goods sent for a demonstration on returnable basis. It is a supply.

Answer:
(i) true
(ii) false
(iii) true
(iv) false
(v) false

(C) Match the following: [5×1=5]

Column ‘A’ Column ‘B’
1. Supply A. Does not attract GST
2. Donation B. Special category state under GST
3. Himachal Pradesh C. Details of inward supplies of
taxable goods and/ or services
4. GSTR-2 D. Collected by Central Government
5. Integrated Goods and Services Tax E. Taxable event under GST

Answer:
1. E.
2. A.
3. B.
4. C.
5. D.

(D) Fill in the blanks: [5×1=5]

(i) Rooms in a hotel or lodge are let out where tariff per day per room ` ________ or more,
is a taxable supply under GST.
(ii) Certificate of registration for GST shall be granted in Form _________________.
(iii) The place of supply for post paid telecommunication services will be the
________________.
(iv) Mr. C, a practicing CMA, provided services to The Institute of Cost Accountants of
India by way of teaching to students is a ____________ (taxable/ exempted) service.
(v) GST is ____________ based consumption tax.

Answer:
(i) 1,000
(ii) GST REG-06

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 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 1

Tax paid towards service tax on Input services 15 15

availed (`)
Tax paid towards VAT for Material ‘M’ (`) 5 5

Output tax liability of X Ltd. is ` 25 before deducting Input tax credit available.
In the given case, benefit of input tax credit accruing to X Ltd. due to implementation
of GST is as follows-
Particulars Service tax GST regime Remarks
regime (`) (`)
Output tax liability 25 25
Input allowed- Service provider cannot
Towards Input services 15 15 avail VAT paid as Input
Towards Material ‘M’ NIL 5 tax credit in Service tax
regime
Total Input Tax credit 15 20
eligible for set off
Net tax payable 10 5
Input tax benefit due to - 5 Benefit of ` 5 to be
GST passed to recipient by
way reduction in prices

(d) Types of Audit under GST: GST envisages three types of audit, such as —
(i) Mandatory audit by Cost Accountant/ Chartered Accountant: The first audit is by
a Cost Accountant/ Chartered Accountant. Every registered person whose
aggregate turnover during a financial year exceeds ` 2 crore has to get his
accounts audited by a Cost Accountant/ Chartered Accountant and furnish a
copy of audited annual accounts and a reconciliation statement duly certified, in
form GSTR-9C.
(ii) Departmental audit: The Commissioner or any officer authorised by him, can
undertake audit of any registered person for such period, at such frequency and
in such manner, as may be prescribed.
(iii) Special audit: The registered person can be directed to get his records including
books of accounts examined and audited by a Cost Accountant/ Chartered
Accountant during any stage of scrutiny, inquiry, investigation or any other
proceedings, depending upon the complexity of the case.

Section – B
Answer question No. 8 which is compulsory and any one from rest of this section.

8. Answer the following questions: [5×1=5]

(i) As per Baggage Rules, 2016, the general free allowance of passengers of Indian
resident arriving from countries other than Nepal, Bhutan or Myanmar, will be:
(a) ` 15,000
(b) ` 50,000
(c) ` 35,000
(d) None of the above.

(ii) In case of customs valuation, if air freight is not given, it is to be considered as:

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 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 1

(a) 20% of FOB value;

(b) 1.125% of FOB value;
(c) 15% of FOB value;
(d) 10% of FOB value.

(iii) In Customs, warehouse means:

(a) A public warehouse
(b) A private warehouse
(c) Special warehouse
(d) All of the above.

(iv) The bill of entry which is used for clearance of goods from warehouse for home
consumption, is:
(a) White bill of entry
(b) Yellow bill of entry
(c) Green bill of entry
(d) None of the above.

(v) Integrated declaration under single window project has come into effect from:
(a) 01.04.2016
(b) 01.07.2016
(c) 01.08.2016
(d) 01.10.2016.

Answer:
(i) (b)
(ii) (a)
(iii) (d)
(iv) (c)
(v) (a)

9.(a)(i) What is similar goods in customs valuation? [3]

(ii) In customs, if goods are pilfered after the order of clearance is made but before the
goods are actually cleared, would duty be leviable? [2]

(b) Compute the customs duty payable from the following data –
Machinery imported from USA by air US $ 12,000
Accessories worth US $ 3,000 compulsorily supplied with
machine, price is included in price of machine
Air freight US $ 5,000
Insurance US $ 100
Local agent's commission ` 5,000
Exchange rate 1 US $ = ` 60
Customs duty on machine 10% ad valorem
Customs duty on accessory 20% ad valorem
Integrated tax 12.00%
GST Compensation Cess Nil
Education Cess plus Secondary and Higher Education Cess 2% +1%

Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 12
 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 2

Paper 11- Indirect Taxation

Full Marks: 100 Time allowed: 3 hours

The figures in the margin on the right side indicate full marks.
Working notes should form part of the answer.

Section – A
Answer question No. 1 which is compulsory and any four from rest of this section.

1. Answer the following questions:

(A) Multiple choice questions: [5×1=5]
(i) Mr. A booked a Rajdhani train ticket, which includes meal. It is :
(a) composite supply
(b) mixed supply
(c) Not at all supply
(d) None of the above.

(ii) Which of the following agricultural activity is exempted from GST?

(a) Cultivation
(b) Supply of farm labour
(c) Renting of agro machinery
(d) All of the above.

(iii) GT Jewellers Ltd. paid ` 50 lakhs for sponsorship of Miss India beauty pageant in
Mumbai to Stylish & Co., a partnership firm. GST is liable to be paid by:
(a) GT Jewellers Ltd.
(b) Miss India beauty pageant
(c) Stylish & Co.
(d) Exempted supply

(iv) Under GST, interest is liable to be paid on delayed payment of tax @:

(a) 15% p.a.
(b) 18% p.a.
(c) 24% p.a.
(d) 30% p.a.

(v) In case of inter-state stock transfer:

(a) CGST will be levied
(b) IGST will be levied
(c) CGST and SGST will be levied
(d) No tax will be levied, as there is no supply.

Answer:
(i) (a)
(ii) (d)
(iii) (a)
(iv) (b)
(v) (b)

(B) Say True or False for the following question: [5×1=5]

(i) Central sales tax has been subsumed in the ambit of GST.
(ii) IGST would be levied and collected by the Central Government as well as State
Government on all inter-state transactions of taxable goods or services.

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 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 2

(iii) The Union Finance Minister is a Chairperson of the GST Council.

(iv) As per the definition under CGST Act, person does not include Central Government or
a State Government.
(v) Penalties levied on late or delayed payment of loans and advances are exempted
supply under GST.

Answer:
(i) true
(ii) false
(iii) true
(iv) false
(v) false.

(C) Match the following: [5×1=5]

Column ‘A’ Column ‘B’
1. Zero rated supply A. Eliminates cascading effect of tax
2. Form GST REG-01 B. Input tax credit not available
3. Goods & services tax C. Export of goods or services or both
4. Composition tax payers D. Final return
5. GSTR-10 E. Application for registration

Answer:
1. C.
2. E.
3. A.
4. B.
5. D.

(D) Fill in the blanks: [5×1=5]

(i) __________ supply means the supply of goods or services, which constitute the
predominant element of a composite supply and to which another supply is
ancillary/secondary.
(ii) Due date of filing GSTR-4 is _____ of the month following the quarter.
(iii) The form of return which is to be filed by the input service distributor is
_____________.
(iv) In case of Jammu and Kashmir, registration is required if the aggregate turnover
exceeds ` _______________.
(v) Services relating to transportation of passengers by metro are covered under
__________ rate of GST.

Answer:
(i) Principal
(ii) 18th
(iii) GSTR-6
(iv) 20 lakhs
(v) nil.

2.(a) State the function of the GSTN (Goods & Services Tax Network). [5]

(b) A Ltd. a manufacturing concern in Maharashtra has opted for composition scheme
furnishes you with the following information for Financial Year 2018-19. It requires you to
determine its composition tax liability and total tax liability. In Financial Year 2017-18
total value of supplies including inward supplies taxed under reverse charge basis are
`85,00,000. The breakup of supplies is as follows -

Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 3
 Answer to MTP_Intermediate_Syllabus 2016_Jun2018_Set 2

A registered person cannot avail Input Tax Credit unless he is in possession of a tax
invoice or a debit note.

GST is chargeable at the time of supply. Invoice is an important indicator of the time of
supply.

(d) Persons not entitled to avail composition scheme: The benefit of composition scheme
shall not be granted if a taxable person is:
(1) engaged in the supply of services (other than restaurant and outdoor catering
service);
(2) engaged in making any supply of goods which are not leviable to tax under the
CGST Act/ SGST Act/ UTGST Act;
(3) engaged in making any inter-State outward supplies of goods;
(4) engaged in making any supply of goods through an electronic commerce operator
who is required to collect tax at source under section 52 of the CGST Act; and
(5) a manufacturer of such goods as may be notified by the Government on the
recommendations of the Council

Section – B
Answer question No. 8 which is compulsory and any one from rest of this section.

8. Answer the following questions: [5×1=5]

(i) In case of customs valuation, if sea freight is not given, then value of freight is to be
taken at:
(a) 10% of FOB value
(b) 15% of FOB value
(c) 20% of FOB value
(d) 1.125% of FOB value.

(ii) In case of lady passenger coming to India after stay abroad more than one year,
duty free jewellery can be brought by her with a value cap of:
(a) ` 50,000
(b) ` 1,00,000
(c) ` 1,50,000
(d) ` 2,00,000.

(iii) GST Compensation Cess will be levied on supply of:

(a) Tobacco
(b) Pan Masala
(c) Motor Vehicles
(d) All of the above.

(iv) Which of the following cannot be considered as deemed export?

(a) Sale of goods to Software Technology Park
(b) Sale of goods to Domestic Tariff Area
(c) Sale of goods to United Nations Agencies
(d) Sale of capital goods to fertilizer plants.

(v) The minimum penalty for improper export of prohibited goods is:
(a) ` 5,000
(b) ` 10,000
(c) ` 15,000
(d) ` 25,000.

Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 10
 Revisionary Test Paper_Jun 2018

Intermediate
Group II
Paper 11: INDIRECT TAXATION
(SYLLABUS – 2016)

Section A: Goods and Services Tax (GST)

1. Answer the following questions:

(A) Multiple choice questions:
(a) The scope of supply of goods or services or both includes —
(i) Sale;
(ii) Exchange;
(iii) Lease;
(iv) All of the above.

(b) Sasta Bazar offers a free bucket with detergent purchased. It is a —

(i) Composite supply;
(ii) Mixed supply;
(iii) Principal supply;
(iv) None of the above.

(c) The form to be used for filing return by a taxpayer under composition scheme is:
(i) GSTR-4;
(ii) GSTR-5;
(iii) GSTR-6;
(iv) GSTR-7.

(d) As per the GST Law, every registered taxable person must maintain the accounts books
and records for at least:
(i) 36 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records;
(ii) 60 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records;
(iii) 72 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records;
(iv) 18 months from the due date of furnishing of annual return for the year pertaining to
such accounts and records.

(e) The electronic ledger which is used to record and maintain all the liabilities of a taxable
person, is called —
(i) Electronic credit ledger;
(ii) Electronic liability ledger;

DoS, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1