GOODS AND SERVICES TAX
, Introduction of GST
Introduction of GST
MULTIPLE CHOICE QUESTIONS
1. Mr. A manufactures goods and supplies to Mr. B, wholesaler. Mr. B supplies these to Mr. C, retailer.
Mr. C supplies these to Mr. D, consumer. Who will ultimately bear the brunt of GST levied on such
goods?
(a) Mr. A (b) Mr. B
(c) Mr. C (d) Mr. D
2. Which of the following is not a feature of GST?
(a) Commodity tax (b) Progressive in nature
(c) Wide tax base (d) Borne by the end consumer
3. Which of the following is a feature of GST?
(a) Value added tax (b) Tax on income
(c) Progressive in nature (d) Results in tax cascading
4. Jack is engaged in the supply of furniture and provision of architect services. GST will be leviable
on:
(a) Only supply of furniture (b) Only supply of architect services
(c) Both A and B (d) None
5. GST is superior to the erstwhile indirect tax regime on account of which of the following aspects?
(a) Multiple tax administrations
(b) No cascading of tax
(c) Ambiguities in classification of goods/services
(d) Procedures across multiple laws
6. Which of the following transactions are not leviable to GST?
(a) Sale of gift items onboard Indigo flight from Mumbai to Bangalore
(b) Entertainment services onboard a cruise liner sailing from the coast of Goa to the coast of
Mumbai
(c) Sale of handicraft items on a Shikara boat stationed in the Dal Lake, Srinagar
(d) Sale of ski equipment at a snow sports event held in Canada
7. Q Pvt. Ltd. supplies machinery spare parts on a project site located in the continental shelf of
India off the coast of Tamil Nadu. Will the supply be exigible to GST?
(a) Yes (b) No
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, Introduction of GST
8. Which of the following taxes have been subsumed in GST?
1. Basic customs duty,
2. Taxes on lotteries,
3. Environment tax levied by local body.
(a) All of the above (b) None of the above
(c) 1 and 2 (d) 2
9. Which of the following taxes have been subsumed under GST?
(a) Stamp duty (b) Purchase tax
(c) Anti dumping duty (d) Road tax
10. Both Central and State Governments have simultaneous power to levy GST on _________.
(a) Intra-state Supplies only (b) Inter-state Supplies only
(c) Import (d) Both (a) & (b)
11. Which of the following union territory (/ies) has (/have) their own state legislature(s)?
(i) Chandigarh
(ii) Delhi
(iii) Puducherry
(iv) Goa
(a) (i) (b) (ii) & (iii)
(c) (iii) & (iv) (d) (iii)
12. GST Compensation cess is levied on __________.
(a) Tobacco (b) Aerated waters
(c) Both (a) & (b) (d) None of the above
13. Naina, a resident of Delhi, has transferred ₹ 50,000 to Mr. Rahul, a resident of Assam.
Assuming the rate of GST to be 12%, calculate how much amount has to be paid by Naina in
respect of GST.
(a) ₹ 9,000 (b) ₹ 18,000
(c) ₹ 4,500 (d) Nil
14. In the event of exchange of goods, tax will be levied on _
(a) Only the portion of goods supplied by the supplier
(b) Only the amount received as consideration, by the supplier
(c) Both of the above
(d) None of the above
15. Agro Indo Ltd. has supplied raw materials worth ₹ 13,00,000 to “SMP Ltd.” based in Haryana. The
payment has been duly made for ₹ 10,00,000 and ₹ 3,00,000 has been paid through subsidies
provided by the Municipality of Haryana. Ascertain the amount of GST to be paid if GST rate for
this purpose is 12%.
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, Introduction of GST
(a) ₹ 1,56,000 (b) ₹ 1,20,000
(c) ₹ 60,000 (d) ₹ 78,000
16. Which schedule provides for the negative list of supply u/s 7(2) of the CGST Act, 2017?
(a) Schedule I (b) Schedule II
(c) Schedule III (d) Schedule IV
17. An act of transportation of the deceased constitutes _________.
(a) Supply of goods (b) Supply of service
(c) Neither supply of goods nor service. (d) Nil-rated supply
18. Gifts by an employer to a employee for ₹ 50,000 in value shall be ___________.
(a) Taxable fully (b) Not taxable
(c) Taxable for value more than ₹10,000 (d) Taxable for value more than ₹ 25,000
19. The term “money” under the CGST Act, 2017 excludes ___________.
(a) Letter of credit (b) Currency held in its numismatic value
(c) Bill of exchange and promissory notes (d) All the above
20. Which of the following is a non-taxable supply of service?
(a) Import with consideration in the course or furtherance of business
(b) Import with consideration not in the course or furtherance of business
(c) Import by a person from a related person or from any of his other establishments outside
India, in the course or furtherance of business without consideration
(d) Import by a person from a related person or from any of his other establishments outside
India, not in the course or furtherance of business without consideration.
21. Which of the following transaction(s) constitute(s) a supply?
(i) A famous actor sold paintings and donated the consideration to charitable trust
(ii) Sale of old jewellery by an individual
(iii) Art works sent by artists to galleries for exhibition
(iv) Supply of service between principal and agent without consideration
(a) (i) & (iii) (b) (ii) & (iii)
(c) (i) (d) (i), (iii) & (iv)
22. In case of supply of printed envelopes, boxes etc., by the printer using their paper to print the
design, logo provided by the recipient, it is ____________.
(a) Mixed supply (b) Supply of goods
(c) Supply of service (d) None of the above
23. The maximum rate of IGST can be:
(a) 18% (b) 28%
(c) 40% (d) None of the above
Page 375
, Introduction of GST
Introduction of GST
MULTIPLE CHOICE QUESTIONS
1. Mr. A manufactures goods and supplies to Mr. B, wholesaler. Mr. B supplies these to Mr. C, retailer.
Mr. C supplies these to Mr. D, consumer. Who will ultimately bear the brunt of GST levied on such
goods?
(a) Mr. A (b) Mr. B
(c) Mr. C (d) Mr. D
2. Which of the following is not a feature of GST?
(a) Commodity tax (b) Progressive in nature
(c) Wide tax base (d) Borne by the end consumer
3. Which of the following is a feature of GST?
(a) Value added tax (b) Tax on income
(c) Progressive in nature (d) Results in tax cascading
4. Jack is engaged in the supply of furniture and provision of architect services. GST will be leviable
on:
(a) Only supply of furniture (b) Only supply of architect services
(c) Both A and B (d) None
5. GST is superior to the erstwhile indirect tax regime on account of which of the following aspects?
(a) Multiple tax administrations
(b) No cascading of tax
(c) Ambiguities in classification of goods/services
(d) Procedures across multiple laws
6. Which of the following transactions are not leviable to GST?
(a) Sale of gift items onboard Indigo flight from Mumbai to Bangalore
(b) Entertainment services onboard a cruise liner sailing from the coast of Goa to the coast of
Mumbai
(c) Sale of handicraft items on a Shikara boat stationed in the Dal Lake, Srinagar
(d) Sale of ski equipment at a snow sports event held in Canada
7. Q Pvt. Ltd. supplies machinery spare parts on a project site located in the continental shelf of
India off the coast of Tamil Nadu. Will the supply be exigible to GST?
(a) Yes (b) No
Page 373
, Introduction of GST
8. Which of the following taxes have been subsumed in GST?
1. Basic customs duty,
2. Taxes on lotteries,
3. Environment tax levied by local body.
(a) All of the above (b) None of the above
(c) 1 and 2 (d) 2
9. Which of the following taxes have been subsumed under GST?
(a) Stamp duty (b) Purchase tax
(c) Anti dumping duty (d) Road tax
10. Both Central and State Governments have simultaneous power to levy GST on _________.
(a) Intra-state Supplies only (b) Inter-state Supplies only
(c) Import (d) Both (a) & (b)
11. Which of the following union territory (/ies) has (/have) their own state legislature(s)?
(i) Chandigarh
(ii) Delhi
(iii) Puducherry
(iv) Goa
(a) (i) (b) (ii) & (iii)
(c) (iii) & (iv) (d) (iii)
12. GST Compensation cess is levied on __________.
(a) Tobacco (b) Aerated waters
(c) Both (a) & (b) (d) None of the above
13. Naina, a resident of Delhi, has transferred ₹ 50,000 to Mr. Rahul, a resident of Assam.
Assuming the rate of GST to be 12%, calculate how much amount has to be paid by Naina in
respect of GST.
(a) ₹ 9,000 (b) ₹ 18,000
(c) ₹ 4,500 (d) Nil
14. In the event of exchange of goods, tax will be levied on _
(a) Only the portion of goods supplied by the supplier
(b) Only the amount received as consideration, by the supplier
(c) Both of the above
(d) None of the above
15. Agro Indo Ltd. has supplied raw materials worth ₹ 13,00,000 to “SMP Ltd.” based in Haryana. The
payment has been duly made for ₹ 10,00,000 and ₹ 3,00,000 has been paid through subsidies
provided by the Municipality of Haryana. Ascertain the amount of GST to be paid if GST rate for
this purpose is 12%.
Page 374
, Introduction of GST
(a) ₹ 1,56,000 (b) ₹ 1,20,000
(c) ₹ 60,000 (d) ₹ 78,000
16. Which schedule provides for the negative list of supply u/s 7(2) of the CGST Act, 2017?
(a) Schedule I (b) Schedule II
(c) Schedule III (d) Schedule IV
17. An act of transportation of the deceased constitutes _________.
(a) Supply of goods (b) Supply of service
(c) Neither supply of goods nor service. (d) Nil-rated supply
18. Gifts by an employer to a employee for ₹ 50,000 in value shall be ___________.
(a) Taxable fully (b) Not taxable
(c) Taxable for value more than ₹10,000 (d) Taxable for value more than ₹ 25,000
19. The term “money” under the CGST Act, 2017 excludes ___________.
(a) Letter of credit (b) Currency held in its numismatic value
(c) Bill of exchange and promissory notes (d) All the above
20. Which of the following is a non-taxable supply of service?
(a) Import with consideration in the course or furtherance of business
(b) Import with consideration not in the course or furtherance of business
(c) Import by a person from a related person or from any of his other establishments outside
India, in the course or furtherance of business without consideration
(d) Import by a person from a related person or from any of his other establishments outside
India, not in the course or furtherance of business without consideration.
21. Which of the following transaction(s) constitute(s) a supply?
(i) A famous actor sold paintings and donated the consideration to charitable trust
(ii) Sale of old jewellery by an individual
(iii) Art works sent by artists to galleries for exhibition
(iv) Supply of service between principal and agent without consideration
(a) (i) & (iii) (b) (ii) & (iii)
(c) (i) (d) (i), (iii) & (iv)
22. In case of supply of printed envelopes, boxes etc., by the printer using their paper to print the
design, logo provided by the recipient, it is ____________.
(a) Mixed supply (b) Supply of goods
(c) Supply of service (d) None of the above
23. The maximum rate of IGST can be:
(a) 18% (b) 28%
(c) 40% (d) None of the above
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