2 Levy of GST

Q. 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:- a) A person occasionally supplying goods or services
c. Provision of Services or both in a State or a Union territory where he has
d. Supply no fixed place of business.
Ans:- d) Supply
Q. 8. A person who occasionally undertakes
Q.2. what are different types of supply covered under transactions involving supply of goods or services
scope of supply or both, whether as principal or agent or in any other
a) Supplies made with consideration capacity, but who has no fixed place of business or
b)Supplies made without consideration residence in India is:
c) Both of the above a. Non–resident taxable person
d) None of the above b. Composition dealer
Ans:- c) Both of the above c. Registered person
d. Casual taxable person
Q. 3. Output tax in relation to a taxable person under the Ans:- a. Non–resident taxable person
CGST Act, 2017 includes:
a. Tax chargeable on taxable supplies made by him Q. 9. Which of the following is a non–taxable supply
b. Tax chargeable on taxable supplies made by his under the CGST Act, 2017:
agent (A) Supply on which GST levy is not attracted under Sec
c. Tax payable by him under reverse charge 9 of CGST Act
d. Both (a) and (b) (B) Supply on which GST levy is not attracted under Sec
Ans:- d) both (a) and (b) 5 of IGST Act
(C) Supply on which GST levy is not attracted under Sec
Q. 4. The term “place of business” includes: 9 of CGST Act as well as Sec 5 of IGST Act
a. Place from where business is ordinarily carried out (D) Supply on which GST is exempted by Government
including godown, warehouse, etc. upon recommendation of GST Council
b. Place where a taxable person maintains his books of Ans:- (C) Supply on which GST levy is not attracted
account under Sec 9 of CGST Act as well as Sec 5 of IGST Act
c. Place where taxable person is engaged in business
through an agent Q. 10. Amit of Delhi is participating in Ayush Furniture
d. All the above Expo in Haryana where he has no fixed place of
Ans:- d. All the above business and exhibiting his products. During the
expo, the said products will be sold to the people
Q.5. which of the following activity is treated as supply attending and intending to purchase such products
in accordance with section 7 of CGST Act including foreign buyer. In such scenario, Amit
a) Mr. Raj sold electronic gadgets to XYZ Co. shall obtain which of the following registration
b) Mr. Veer Supply Beer Shampoo to M/s priya under the CGST Act, 2017:
c) Vijay Electronics disposed scrap part of electric unit (a) Non–resident taxable person registration
to a scrap dealer (b) Casual taxable person registration
d) All of the above (c) Regular taxpayer registration
Ans:- d) All of the above (d) No registration under GST required.
Ans:- (b) Casual taxable person registration
Q.6. Supplier within the meaning of supply includes
a) Person supplying goods Q. 11. “Manufacture” means processing of raw material
b) Person providing services or inputs in any manner that results in emergence
c) Both of ………………
d) None of the above a. A new product having a distinct name, character and
Ans:- c) Both use
b. An old product having a distinct name, character and
Q.7. The term ‘casual taxable person’ includes: use
a) A person occasionally supplying goods or services or c. A new product having a distinct name
both in a State or a Union territory where he has no d. Either (a) or (b)
fixed place of business. Ans:- a. A new product having a distinct name, character
b) A person occasionally supplying goods or services or and use
both in a State or a Union territory where he has fixed
place of business.
Q. 12. ‘P’ Ltd. has its registered office under the (b) Treated as ‘Services’
Companies Act, 2013 in the State of Maharashtra. It (c) Treated neither as ‘Goods’ nor as ‘Services’
also has a corporate office in the State of Telangana. (d) Status is not clear
What will be the place of business of ‘P’ Ltd. under Ans:- (c) Treated neither as ‘Goods’ nor as ‘Services’
the CGST Act, 2017?
a. Telangana Q.19. What is the statue of ‘lottery as an actionable
b. Maharashtra claim’ under GST law
c. Both (a) and (b) (a) Treated as ‘Goods’
d. None of the above (b) Treated as ‘Services’
Ans:- c. Both (a) and (b) (c) Treated as ‘goods’ but out of scope of supply
(d) Treated as ‘goods’ and remains within scope of
Q. 13 Which among the following are zero rated supply
supplies? Ans:- (d) Treated as ‘goods’ and remains within scope of
a) Exports supply
b) Supplies to SEZ
c) Exports and Imports Q. 20. "Services" means anything other than goods,
d) Both (a) and (b) money and securities includes
Ans:- d) Both (a) and (b) a) Activities relating to the use of money or its
conversion by cash
Q. 14. An exempt supply includes b) Immovable property
a. Supply of goods or services or both which attracts Nil c) Securities
rate of tax d) Actionable claims
b. Non-taxable supply Ans:- a) Activities relating to the use of money or its
c. Supply of goods or services or both which are wholly conversion by cash
exempt from tax under Section 11 of the CGST Act or
under Section 6 of IGST Act Q. 21 Activity of ‘supply of money’ by Bank to a
d. All of the above business entity on interest -
Ans:- d. All of the above (a) Treated as ‘Supply of Goods’
(b) Treated as ‘Supply of Services’
Q. 15 As per Section 2(47) of CGST Act, 2017, exempt (c) Treated as ‘Supply of Services’ to the extent it is
supply includes the supply of following type of relating to use of money
goods and services: (d) None of the above
(a) Supply attracting nil rate of tax Ans:- (b) Treated as ‘Supply of Services’
(b) Supplies wholly exempt from tax, by way of a
notification; Q. 22. Activity of ‘conversion of money/ foreign
(c) Non-taxable supply exchange’ by Bank/ Authorized Dealer to a
(d) All of the above. business entity on interest
Ans:- (d) All of the above. (a) Treated as ‘Supply of Goods’
(b) Treated as ‘Supply of Services’
Q. 16 Goods under CGST Act excludes: (c) Treated as ‘Supply of Services’ and attracts GST
(a) Securities payment is made to end user
(b) Unsecured debts (d) Treated as ‘Supply of Services’ and attracts GST
(c) Right to participate in the draw to be held in a lottery payment when made to another Bank/ Authorized
(d) Growing crops. Dealer
Ans:- (a) Securities Ans:- (c) Treated as ‘Supply of Services’ and attracts
GST payment is made to end user
Q. 17. The term ‘goods’, as defined under section 2(52)
of the CGST Act, 2017, does not include- Q.23. Which of the following activities will be
(a) Grass considered as a supply of service
(b) Money and securities (a) Mr A borrows an amount of ` 1, 50,000 from one of
(c) Actionable claims his relative Mr Q and agrees to repay the entire
(d) Growing crops amount with interest after a year.
Ans:- (b) Money and securities (b) M/s Raj enterprises applied for loan from SBI Bank
against which a processing fees and interest is
Q. 18. What is the statue of ‘money and securities’ charged by the bank
under GST law (c) Mr H exchanged INR against purchase of US $ for
(a) Treated as ‘Goods’ which a commission was charged
 (d) All of the above. 10,000 units to Mr C (UP) for sales to buyers in UP
Ans:- (d) All of the above. paying IGST on such dispatch supply. These GST
paid goods were subsequently sold by Mr C (UP)-
Q.24. which of the following is not a business activity the agent. He issued his invoice to the buyer too.
a) Ms. Pooja sold her old jeweller Such subsequent sale to buyer -
b) Mr. rajesh sold his business car (a) shall not attract GST as GST has already been paid
c) (a) or (b) on such goods
d)None of the above (b) shall attract GST as further supply
Ans:- a) Ms. Pooja sold her old jeweller (c) shall attract GST as further supply – such further
GST payable by Principal (A Ltd.)
Q. 25. When will the recipient and supplier be treated as (d) shall attract GST as further supply – such further
related persons under GST? GST payable by Agent (Mr C)
a) Where such persons are employer and employee Ans:- (d) shall attract GST as further supply – such
b) Where one of them directly or indirectly controls further GST payable by Agent (Mr C)
other
c) Where such persons are officers or direc- tors of one Q.29. Smart pvt ltd has head office located in Bangalore
another?s business (Karnataka). However, the branch of Smart pvt ltd
d) All of the above is located in state of Gujarat. Will be treated as -----
Ans :- d) All of the above -------------- under GST Act?
a) deemed distinct
Q. 26. Mr. A has received techical consultancy services b) principle and Agent
from IT Star Consultants, USA. The import of c) Both (a) or (b)
technical consultancy will not be liable to GST if- d) None of the above
(I) Mr. A pays some consideration for the services Ans:- a) deemed distinct
received
(ii) Mr. A pays some consideration for the services Q. 30. In which of the following cases, import of
received and if Mr. A uses the said service for services is taxable under GST?
business purposes (1) Import of service with consideration in course or
(iii) Mr. A uses the said service for business furtherance of business.
purposes even though he does not pay any (2) Import of service with consideration not in course or
consideration for the same furtherance of business.
(iv) Mr. A uses the said service for personal purposes (3) Import of service without consideration from a
and does not pay any consideration for the same related person in course or furtherance of
and is also a partner in IT Star Consultants business.
(v) Mr. A uses the said service for business purposes (4) Import of service without consideration from a
and does not pay any consideration for the same related person not in course or furtherance of
and is also a partner in IT Star Consultants business.
(a) (I), (ii), (v) (a) (1) and (3)
(b) (ii), (iii) and (v) (b) (2) and (4)
(c) (iii), (iv) (c) (1), (2) and (3)
(d) (iii), (iv) and (v) (d) (4)
Ans: c) (iii), (iv) Ans:- (c) (1), (2) and (3)

Q .27 . A Ltd. (GST registered in Delhi) has appointed Mr Q. 31. A Ltd. Holding entity made certain transfer of
C (UP) to act as his agent and supply goods on his fixed asset on permanent basis to its subsidiary X
behalf to buyers in UP. A Ltd. has dispatched first Ltd. entity without any consideration. Does the same
lot of 10,000 units to Mr C (UP) for sales to buyers in classify as a supply under GST?
UP. Such dispatch to Mr C (UP) : a. Yes
(a) Be treated as ‘supply’ b. No
(b) Not be treated as ‘supply’ c. On prior Permission of Government
(c) Will be treated as supply subsequently d. Not any
(d) None of the above Ans:- a)Yes
Ans:- Be treated as ‘supply’
Q. 32. ABC Ltd. provides certain services to Mr. Joy
Q. 28. A Ltd. (GST registered in Delhi) appointed Mr C who holds 35% of the voting right in the company.
(UP) to act as his agent and supply goods on his The transfer made was without any
behalf to buyers in UP. A Ltd. dispatched first lot of consideration. Does the same qualify as supply?
 a. Yes, if made in the course or furtherance of business Q. 38. ABC Ltd. offers a software to businesses for
b. No, since made without any consideration smooth processing of returns and accounts.
c. Not a supply Such software shall be considered as:
d. Yes a. Supply of Goods
Ans:- a) Yes, if made in the course or furtherance of b. Supply of Services
business c. Does qualify as supply
d. None of the above
Q. 33. Mr. Amar being a managing director of Alpha Ans:- b. Supply of Services
Project Pvt. Ltd. made gifts to his employees worth
of INR 60,000 each for assisting in the architectural Q. 39. Temporary transfer or permitting use of
work of his house. Does the same be considered intellectual right or property is classified as:
supply? a. Supply of goods
a. Yes, since the value of gift exceeds the provided limit b. Supply of services
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
c. As per the option of appropriate authority Q. 40. Ram has received a sum of ` 5,00,000 from his
d. No employer on premature termination of his contract
Ans:- b. No, since the gift is not made in course or of employment. The GST implication will be:
furtherance of business (a)It is not a supply, hence not chargeable to GST.
(b) It is a supply without consideration, hence not
Q. 34. ABC Pvt. Ltd. makes certain supplies to Mr. X and chargeable to GST.
Mr. Z. Both of them hold 51% of the voting rights (c) It is a supply, hence chargeable to GST.
in the company and exercise major stake in the (d) It is not supply, but exemption is there.
decision making. Does the same supply stands Ans:- (a)It is not a supply, hence not chargeable to GST.
as related party transaction?
a. Yes Q. 41. GST is payable on the services provided by the
b. No employee to the employer in the course of
c. As per the opinion of the appropriate authority employment on:
d. None of the above (a) Regular basis;
Ans:- a. Yes (b) Contract basis as employed by the company;
(c) Contract basis as employed by a contractor;
Q. 35. Supply of food or drink items in a restaurant as (d) None of the above.
per CGST Act is------------ Ans:- (c) Contract basis as employed by a contractor;
a) Supply of goods
b) Supply of service Q. 42. Which of the following activity shall be treated
c) not a supply under GST neither as a supply of goods nor a supply of
d) none of the above services?
Ans:- b) Supply of Service (i) Permanent transfer of business assets where input
tax credit has been availed on such assets
Q. 36. Mr. A, being a Director of ABC Pvt. Ltd. Is (ii) temporary transfer of intellectual property right
provided a car which he uses for his personal (iii) transportation of deceased
purpose. Does the same classify as supply? If yes (iv) services by an employee to the employer in the
under which group? course of employment
a. Yes, supply of goods (a) (i) & (iii)
b. Yes, supply of services (b) (ii) & (iv)
c. Does not qualify as supply (c) (i) & (ii)
d. None of the above (d) (iii) & (iv)
Ans:- b. Yes, supply of services Ans:- d) (iii) & (iv)

Q. 37. What shall be the proper classification of Renting Q. 43. As per the CGST Act, 2017, the term “works
of immovable property under supply? contract” includes:
a. Supply of Goods a. Construction, fabrication, completion, erection,
b. Supply of Services installation, etc. of movable property
c. Does not qualify as supply b. Construction, fabrication, completion, erection,
d. None of the above installation, etc. of immovable property
Ans:- Supply of Services c. Both (a) and (b)
 d. None of the above Q. 50. Mr. X, supplied a laptop for ` 40,000 to Mr. Y
Ans:- b) Construction, fabrication, completion, erection, along with a barter of printer, the value of which is
installation, etc. of immovable property ` 4,000 but the open market value of the laptop is
not known. The GST liability will be:
Q. 44. While repairing the factory shed, few goods were (a) Mr. X for ` 40,000 and Mr. Y for ` 4,000
also supplied along with the labour service. (b) Mr. X for ` 44,000 and Mr. Y for ` 4,000
Whether it is a : (c) Mr. X for ` 36,000 and Mr. Y for ` 4,000
a. Composite Supply (d) Mr. X for ` 40,000 and no GST liability for Mr. Y.
b. Mixed Supply Ans:- (b) Mr. X for ` 44,000 and Mr. Y for ` 4,000
c. Works Contract Service
d. None of the above Q. 51. Mr. A is a well-known singer. He receives a life-
Ans:- c. Works Contract Service time achievement award which consist of a
memento and a cheque of ` 10,00,000. It is:
Q. 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
b. Supply of services (d) None of the above.
c. Either of the two at the option of authority Ans:- (c) Not supply and hence not chargeable to GST
d. None of the above
Ans:- b) Supply of services Q.52. Mr. Vishal has head office in pune and has
branches in state of Gujarat, Goa, and Punjab. Mr.
Q. 46. Mr. A has sold his old furniture of the house. Does Vishal send goods to its branch Goa worth `
this constitute a supply? 2,50,000 in a own conveyance. Value of
a) Yes conveyance ` 15,00,000 and With the conveyance
b) No some tools and spares parts are also send worth
c) Maybe ` 50,000. Calculate total value of taxable supply
d) None of the above on which GST is payable.
Ans:-b) No a) 3,00,000
b) 2,50,000
Q. 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:- b) 2,50,000
a) Supply of goods
b) Supply of services Q.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:- b) Supply of Service new car worth ` 8,25,000 agreed to exchange his
old car with new car. Under GST law, if Mr. X and
Q. 48. High sea sales are considered as supply under Mr.Y is registered person, who will be liable to pay
GST. 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:- b) No Ans:- a) X on 825000 and Y on 125000

Q. 49. Michael Ltd. of US supplies certain goods to ABC Q.54. There is a difference in taxability of goods
Pvt. Ltd. of Mumbai. Before goods reach Mumbai forming part of composite supply and mixed
port, it supplies those goods to XYZ Pvt. Ltd. by supply. Here are few examples from which you
transfer of documents of title to goods. What kind need to identify which is correct example of
of transaction is this? composite supply and 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.
Ans:- b) High sea sales ii) Mr. A buys a car and purchases warranty and
maintenance of the car by paying nominal amount.
 Car, warranty and maintenance here are a composite gets it delivered to ABC Ltd. & gets the in transit
supply. insurance done. What kind of supply is this?
iii) Mrs. A buys a microwave oven and some utensils for a. Mixed supply
use in microwave oven. Both microwave oven and b. Composite supply
utensils are sold at a single price. Microwave oven c. None of the above
and its utensils here are a mixed supply. d. Don’t know
iv) Mrs. A buys chocolates, juices and biscuits from a Ans:- b. Composite supply
shop. All items have different prices. Chocolates,
juices and biscuits are a mixed supply. Q. 60 Which of the following transactions does not
The correct examples of composite and mixed supply qualify as supply under GST law?
are: - (I) When the Head Office makes a supply of services to
a) i,iv its own branch outside the State.
b) ii,iii (ii)When a person import services without
c) ii,iii,iv consideration for the purposes of his business from
d) None of the above his elder brother living outside India.
(iii) Disposal of car without consideration and where the
Q. 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
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:- b) Item with Highest tax rate (b) (I), (ii) & (iii)
(c) (iii)
Q. 56. In composite supply, the principal supply is (d) (iii) & (ii)
supply of goods whereas the ancillary supply is Ans:- (c) (iii)
supply of services. Which provision shall apply in
respect of time of supply? Case Study:-
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 :- b) Time of supply of goods He want to increase sale so he had started working
with agent also in the Assam, Gujarat and made a supply
Q. 57. M/s X Ltd. a dealer offer combo packs of shirt, through them in there state.
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:- (b) 18% Delhi- 9,85,000
Karnataka- 4,65,000
Q. 58. What kind of supply is this transaction: Food Assam- 22,80000
supplied to the in – patients as advised by the doctor in Gujarat- 8,55,000
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. Composite Supply Mr. X has sale land in Punjab worth ` 58,00,000. At the time
of sale some issue came and he had paid fees ` 8000 to
Q. 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.
Note1: license of a pre packed software. a) supply to friend
b) supply to Agent
Q. 1 which of the following is supply c)court fees
a) supply to branch d) supply from his brother
b)supply to agent Ans:- c) court fees
c) supply to friend
d) all of the above Q. 9 which of the following activity or transaction
Ans: d) All of the above is not a supply as per schedule III
a)sale of land
Q.2 what is the supply made during year b) court fees paid
a) 1,31,43,000 c) both of the above
b) 70,30,000 d) none of the above
c) 73,15,000 Ans:- c) both of the above
d) 1,30,50,000
Ans:- b) 70,30,000 Q. 10 which of the following is supply of service
a) supply to friend
Q. 3 what is GST amount payable on sale of land b) fees paid to the court
a) 6, 96,000 c) supply to employee
b) 10, 44,000 d) all of the above
c) on sale no need to pay GST only at the time of Ans:- a) supply to friend
purchase need to pay GST
d) none of the above
Ans:- d) none of the above

Q. 4what has GST amount payable in case of

supply made to seva charity
a) 3250
b) 7800
c) 11700
d) none of the above
Ans:- b) 7800
Q. 5 goods to use in marriage function of his friend
what will be the GST
a) 34200
b) 51300
c) 14250
d) None of the above
Ans:- b) 51300

Q. 6 purchase of software from brother has treated

as
a) supply of goods
b)supply of service
c) supply of both (goods as well as services)
d) It is not a supply
Ans:- b)supply of service

Q. 7 which of the following is supply without

consideration (as per schedule I)
a) supply seva charity
b) supply to friend
c) supply to employee
d) all of the above
Ans:- a) supply seva charity

Q. 8 on which of the following activity GST is not

pay
 PRACTICE QUESTION Particulars Amount(`)
Value of inter-State outward supply to
Q.1 Which one of the following is not a composite 30 lakh
registered persons
supply:
Value of intra-State outward supply to
(a) Supply of an air conditioner along with freight, 50 lakh
registered persons
insurance and installation
(b) Supply of UPS along with external battery Value of intra-State outward supply to 15 lakh
un-registered persons
(c) Supply of architect services along with supply of
material incidental to his services Value of intra-State inward supply from 10 lakh
registered persons
(d) Supply of lodging service by a hotel including
breakfast Value of inter-State inward supply from
5 lakh
registered persons
Ans:- (b) Supply of UPS along with external battery
Value of intra-State inward supply from 2 lakh
un-registered persons
Q.2 Which of the following is not covered under
Schedule III of CGST Act: - IGST credit on capital goods purchased in
1.5 lakh
the month of july
(I) Service provided by an employer to his employee on the
occasion of his marriage CGST/ SGST credit on other inward
supplies (including credit of Rs. 5,000 0.5 lakh each
(ii) The functions performed by the members of each on account of Food and Beverages
municipalities and local authorities expenses)
(iii) The duties performed by a director in a body established Carried forward credits
by the Central Government CGST : ` 2 lakh
(iv) Actionable claims, other than lottery, betting and SGST : ` 2 lakh
gambling IGST : ` 5 lakh
(a) (i) & (iii)
(b) (I) Mr. Kabira has also procured consultancy services from
(c) (iii) lawyer for Rs. 1 lakh who is situated in same State in which
(d) None of the above Mr. Kabira is registered being taxable @ 18%.
Ans:- (b) (I) (a) IGST: Rs. 2,00,000; CGST: Rs. 2,50,000; SGST: Rs.
2,50,000
Q. 3. Mr. Z trades in certain items which are exempt and (b) IGST: Nil; CGST: Rs. 50,000; SGST: Rs. 2,50,000
supplies certain items to SEZ which are zero- (c) IGST: Nil; CGST: Rs. 59,000; SGST: Rs. 2,59,000
rated. He wants to understand which of the d) IGST: Rs. 3,00,000; CGST: Rs. 4,50,000; SGST: Rs.
following will be included in computation of 4,50,000
taxable supplies for purpose of availing input tax Ans:- (b) IGST: Nil; CGST: Rs. 50,000; SGST: Rs. 2,50,000
credit?
a) Zero-rated supplies Q.6 Ms. Chulbuli is registered in Delhi. She has been
b) Exempt supplies engaged in the modeling business. Her taxable
c) Both i.e., Zero-rated and exempt supplies turnover during the month of Jul-2018 is 48 lakh
d) None of the above taxable @ 18%. She has made all supplies within
Ans:- a) Zero-rated supplies the State. The carried forward ITC are as under:-
(I) CGST: Rs. 2,35,000
Q 4. GST compliance rating would be given to whom (ii) SGST: Rs. 1,30,000
(a) Input Service Distributor (iii) IGST: Rs. 1,00,000
(b) Supplier of Goods and/ or Services whose value of During the month of Jul-2018, she travelled abroad and
taxable turnover is greater than 20 lakhs purchased camera for Rs. 5 lakh on which she paid
(c) Composition Dealer & Person who is liable to deduct IGST of Rs. 90,000. She utilized this camera partly for
TDS/ collect TCS business purpose and partly for non-business
(d) All of the above purposes. Calculate the net GST liability on her output
Ans:- (d) All of the above supplies (to be paid in cash) for the month of Jul-2018.
(a) CGST: Rs. 4,32,000; SGST: Rs. 4,32,000; IGST: Rs.
90,000
Q.5 Mr. Kabira is engaged in the business of sale and (b) CGST: Rs. 1,97,000; SGST: Rs. 3,02,000; IGST: Rs.
purchase of handbags taxable @ 18%. Calculate Nil
his tax liability to be paid in cash for the month of (c) CGST: Rs. 1,01,000; SGST: Rs. 3,02,000; IGST: Rs.
Jul2018 considering the following details- 90,000
(d) CGST: Rs. 11,500; SGST:Rs. 3,02,000; IGST: Rs.
Nil
Ans:- (d) CGST: Rs. 11,500; SGST:Rs. 3,02,000; IGST: Rs. ans Apportionment to the state where such supply
Nil takes place.
(d) None of the above
Q. 7. Which of the following transactions does not Ans:- (c) Apportion to the Central Government based on
qualify as supply under GST law? rate equivalent to CGST on similar intra-State supply
(i) When the Head Office makes a supply of services to its ans Apportionment to the state where such supply
own branch outside the State. takes place.
(ii) When a person import services without consideration for
the purposes of his business from his elder brother Q. 12. The provisions of apportionment of tax under
living outside India. IGST also apply to --------
(iii) Disposal of car without consideration and where the (a) Interest
supplier has not claimed input tax credit on such car. (b) Penalty
(iv) When a principal makes supplies to his agent who is (c) Compounding sum realized in connection with tax
also registered and is situated within the same State. (d) All of the above
(a) (i) & (iii) Ans:- (d) All of the above
(b) (I), (ii) & (iii)
(c) (iii) Q. 13. Suppose, One Business Group has 35 Business
(d) (iii) & (ii) Verticals within a state and has to take separate
Ans:- (c) (iii) GST registrations under the same PAN. How
many online registration applications with
Q. 8. Factory that should Not be considered in scanned documents have to be filed by that
determining whether goods or services are related Business Group?
include---------. a) 35 separate applications in GST REG-01
(a) the nature of the goods or services b) Only one registration application incorporating the
(b) the nature of the production processes entire business verticals in one go
(c) the type or class of customers for the goods or services c) Either of the above at the option of the Business
(d) the type or class of raw material for the goods or services Group
Ans:- (d) the type or class of raw material for the goods or d) Either of the above at the discretion of the Proper
services Officer
Ans:-a) 35 separate applications in GST REG-01
Q. 9. Meaning of “family” does not include:
(a) spouse Q. 14. There is a difference in taxability of goods
(b) Children forming part of composite supply and mixed
(c) independent parents supply. Here are few examples from which you
(d) dependent grand-parents need to identify which is correct example of
Ans:- (c) independent parents composite supply and mixed supply.
i) Mr. A buys a car and purchases warranty and
Q. 10. Supply of goods by any unicorporated maintenance of the car by paying nominal amount.
association or body of persons to a member Car, warranty and maintenance here are a mixed
thereof for cash, deferred payment or other supply.
valuable consideration is ............. ii) Mr. A buys a car and purchases warranty and
(a) Supply of goods maintenance of the car by paying nominal amount.
(b) Neither as a supply of goods nor a supply of services Car, warranty and maintenance here are a composite
(c) Supply of services supply.
(d) Either as a supply of goods or as a supply of services iii) Mrs. A buys a microwave oven and some utensils for
Ans:- (a) Supply of goods use in microwave oven. Both microwave oven and
utensils are sold at a single price. Microwave oven
Q. 11. Out of the IGST paid to the Central Government in and its utensils here are a mixed supply.
respect of import of goods or service, if the iv) Mrs. A buys chocolates, juices and biscuits from a
registered taxable person does not avail the said shop. All items have different prices. Chocolates,
credit within the specified period, what is the juices and biscuitsare a mixed supply. The correct
treatment? examples of composite and mixed supply are: -
(a) refund it back to the taxable person a) i,iv
(b) Can be claimed after the expiry of the specified b) ii,iii
period c) ii,iii,iv
(c) Apportion to the Central Government based on rate d) None of the above
equivalent to CGST on similar intra-State supply Ans:- b) ii,iii
 Ans:- d) Supply other than composite and mixed supply;
Q. 15. Mr. Z has an agency of wholesale trading of a respective tax rate applicable to each item
particular brand in Gas Stoves for Rajasthan and
Gujarat and has separate proprietorship firms in Q. 17. Where any agent supplies goods on behalf of his
each of the two States. In Gujarat, Mr. Z principal:
additionally trades in shoes from the same firm. (a) Such agent shall be jointly and severally liable to
In the context of the above information, which of pay the GST payable on such goods.
the following statement is correct? (b) The principal shall be jointly and severally liable to
a) Mr. Z can operate with single registration for Gas pay the GST payable on such goods.
Stoves business for Rajasthan and Gujarat. For (c) Both (a) and (b)
Shoes business, he has to compulsorily take (d) None of the above
separate registration since it is different business Ans:- c) (c) Both (a) and (b)
vertical.
b) Mr. Z will have to get separate registration for each Q. 18. Which of the following transactions does not
of the States i.e., Rajasthan and Gujarat for Gas qualify as supply under GST law?
stove Business. For shoes business, he has an (a) Disposal of car without consideration and where the
option to register separate business verticals supplier has not claimed input tax credit on such
independently. car.
c) Mr. Z will have to compulsorily take 3 registrations (b) When a principal makes supplies to his agent who is
two for Gujarat (Gas Stoves and Shoes also registered and is situated within the same
separately) and one for Rajasthan business (Gas State.
stoves). (c) When the Head Office makes a supply of services to
d) Mr. Z can operate with single registration for Gas its own branch outside the State.
Stoves business for Rajasthan and Gujarat and (d) When a person import services without
Shoes business for Gujarat. consideration for the purposes of his business
Ans:- b) Mr. Z will have to get separate registration for each from his elder son living outside India.
of the States i.e., Rajasthan and Gujarat for Gas Ans:- (a) Disposal of car without consideration and
stove Business. For shoes business, he has an where the supplier has not claimed input tax credit
option to register separate business verticals on such car.
independently.
Q.19 Which of the following services received without
Q. 16. M/s. Jolly Electronics (P) Ltd., is an authorized consideration amount to supply?
dealer of M/s. GG Micro Ltd., located and registered 1) Import of services by a person in India from his son
in Lucknow, Uttar Pradesh. It has sold following well-settled in USA
items to Mr. Alla Rakha (a consumer): 2) Import of services by a person in India from his
Product Amount brother well-settled in Germany
3) Import of services by a person in India from his
refrigerator (500 litres) taxable@18% 40,000/- brother (wholly dependent on such person in India)
Stabilizer for refrigerator @12% 5,000/- in France
LED television (42 inches) taxaxble @12% 30,000/- 4) Import of services by a person in India from his
daughter (wholly dependent on such person in
Split air conditioner (2 tons) taxable @28% 35,000/-
India) in Russia
Stabilizer for air conditioner taxable @12% 5,000/- a) 1), 3) and 4)
Total Value 1,15,000/- b) 2), 3) and 4)
c) 2) and 3)
M/s. Jolly Electronics (P) Ltd. has given a single invoice, d) 1) and 2)
indicating price of each item separately to Mr. Alla Rakha. Ans:- a) 1), 3) and 4)
Mr. Alla Rakha, has given a single cheque of Rs. 1,00,000/-
for all the items as a composite discounted price. State the
type of supply and the tax rate applicable on the same.
a) Composite supply; Highest tax rate applicable to
split air conditioner, i.e. 28%
b) Mixed supply; Highest tax rate applicable to split air
conditioner, i.e. 28%
c) Supply other than composite and mixed supply;
Highest tax rate applicable to split air conditioner
i.e. 28%