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PAPER - 11
INDIRECT TAXATION
BIT QUESTIONS

DIRECTORATE OF STUDIES
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA
Statutory Body under an Act of Parliament

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and accounting.”

VISION STATEMENT
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financial leadership of enterprises
globally.”

Courtesy

Vijayawada Chapter of
The Institute of Cost Accountants of India

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 www.icmai.in

PAPER - 11
INDIRECT TAXATION
BIT QUESTIONS

DIRECTORATE OF STUDIES
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA
Statutory Body under an Act of Parliament

Behind every successful business decision, there is always a CMA

 P-11: Indirect Taxation - Bit Questions

PAPER - 11

Indirect Taxation
Bit Questions

The Institute of Cost Accountants of India 1

 P-11: Indirect Taxation - Bit Questions

(I) Choose the most appropriate one from given four alternatives
1. Which of the following taxes have been subsumed in GST?
(A) Central Sales Tax
(B) Central Excise Duty
(C) VAT
(D) All of the above

2. List – 1 of the Constitution contains matters in respect of which _____ has the exclusive
right to make laws.
(A) Central Government
(B) State Government
(C) Both Centre and State Governments
(D) None of the above

3. GST is levied on supply of all goods and services except:

(A) Alcoholic liquor for human consumption
(B) Tobacco
(C) Health Care Services
(D) All of the above

4. On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol),
Natural Gas and Aviation Turbine Fuel:
(A) GST is not levied at all
(B) GST will be levied from a date to be notified on the recommendations of the GST
Council.
(C) GST is levied, but exempt
(D) None of the above

5. The functions of Goods and Services Network (GSTN) include:

(A) facilitating registration
(B) forwarding the returns to Central and State Authorities
(C) Computation and settlement of IGST
(D) All of the above

6. Which article of the Constitution outlines the composition and functions of the GST
Council?
(A) 270
(B) 279A
(C) 246A
(D) 269A

7. Which of the following is not a supply as per Section 7 of the CGST Act?
(A) Management consultancy services not in course or furtherance of business
(B) Import of service for consideration not in course or furtherance of business
(C) Both (A) and (B)
(D) None of the above

8. ______ specifies the activities to be treated as supply even if made without

consideration.
(A) Schedule I of CGST Act
(B) Schedule II of CGST Act
(C) Schedule III of CGST Act
(D) All of the above

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 P-11: Indirect Taxation - Bit Questions

9. Which of the following activity is outside the scope of supply and not taxable under
GST?
(A) Services by an employee to the employer in the course of or in relation to his
employment.
(B) Services of funeral
(C) Actionable Claims, other than lottery, betting and gambling
(D) All of the above

10. Which of the following supplies are naturally bundled?

(A) Rent deed executed for renting of two different floors of a building one for
residential and another for commercial purpose to same person
(B) Pack of watch, tie and belt
(C) Package of canned food such as burger, chocolates, sweets, cake etc
(D) None of the above

11. A _______ supply comprising of two or more supplies shall be treated as the supply of
that particular supply that attracts highest rate of tax.
(A) Composite
(B) Mixed
(C) Both (A) and (B)
(D) None of the above

12. Which of the following activities is a supply of services?

(A) Transfer of right in goods/undivided share in goods without transfer of title in
goods.
(B) Transfer of title in goods
(C) Transfer of title in goods under an agreement which stipulates that property shall
pass at a future date
(D) All of the above

13. What is the maximum rate of CGST prescribed under CGST Act?
(A) 20%
(B) 28%
(C) 24%
(D) 40%

14. Which of the following taxes levied on intra-state supply?

(A) CGST
(B) SGST/UTGST
(C) Both (A) and (B)
(D) IGST

15. What is the threshold limit of turnover in the preceding financial year to be eligible for
composition levy in Delhi?
(A) Rs. 20 lakhs
(B) Rs. 30 lakhs
(C) Rs. 50 Lakhs
(D) Rs. 75 lakhs

16. Which of the following is not included in aggregate turnover?

(A) Exempt supplies of goods or services or both
(B) Export of goods or services or both
(C) Inter-State supply of goods or services or both
(D) Value of inward supplies on which tax is paid under reverse charge

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 P-11: Indirect Taxation - Bit Questions

17. IGST is levied on:

(A) Inter State Supplies
(B) Intra-State Supplies
(C) Both (A) and (B)
(D) None of the above

18. ______ is levied on the import of goods and / or services.

(A) IGST
(B) CGST and SGST
(C) CGST and UTGST
(D) None of the above

19. The maximum rate of IGST can be:

(A) 20%
(B) 30%
(C) 40%
(D) None of the above

20. On supply of which of the following items, GST shall be levied with effect from such
date as may be notified by the Government on the recommendations of the Council:
(A) Petroleum Crude
(B) Alcoholic liquor for human consumption
(C) Both (A) and (B)
(D) None of the above

21. A radio taxi driver has provided his services through Electronic Commerce Operator –
Kuber Cabs. The tax on such supplies shall be paid by the _____
(A) Electronic Commerce Operator – Kuber Cabs
(B) Radio Taxi Driver
(C) Customer receiving the services from radio taxi driver
(D) None of the above

22. GST is payable by the recipient under reverse charge on:

(A) Sponsorship services
(B) Transport of goods by rail
(C) Transport of passengers by air
(D) All of the above

23. Transportation of passengers by ____ are exempt from GST.

(A) Railway in first class
(B) Railway in an air-conditioned coach
(C) Metro
(D) All of the above

24. Transportation of ____ by a GTA in a goods carriage is exempt from GST.

(A) Agricultural Produce
(B) Organic manure
(C) Milk
(D) All of the above

25. What of the following services provided to an educational institution – Debo Public
School – are exempt from GST?
(A) Transportation of staff of the school
(B) Cleaning of the school
(C) Services relating to conduct of higher secondary exams
(D) All of the above

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 P-11: Indirect Taxation - Bit Questions

26. Transportation of passengers by ____ are exempt from GST.

(A) Air conditioned stage carriage
(B) Radio Taxi
(C) Air terminating in Nagaland airport
(D) All of the above

27. Which of the following services provided by Department of Posts are exempt from
GST?
(A) Speed posts
(B) Life Insurance
(C) Express parcel posts
(D) None of the above

28. Date on which the supplier receives the payment as per Section 12 of CGST Act is
(A) Date entered in books of accounts
(B) Date of credit in bank account
(C) Date entered in books of accounts or date of credit in bank account, whichever is
earlier
(D) Date on which receipt voucher is issued by supplier

29. What is time of supply of goods liable to tax under reverse charge mechanism?
(A) Date of receipt of goods
(B) Date on which the payment is made
(C) Date immediately following 30 days from the date of issue of invoice by the
supplier
(D) Earlier of (A) or (B) or (C)

30. What is the time of supply of vouchers when the supply with respect to the voucher is
identifiable?
(A) Date of issue of voucher
(B) Date of redemption of voucher
(C) Date of entry in books of accounts
(D) Earlier of (A) or (B) or (C)

31. What is the time of supply of vouchers when the supply with respect to the voucher is
not identifiable?
(A) Date of issue of voucher
(B) Date of redemption of voucher
(C) Date of entry in books of accounts
(D) Earlier of (A) or (B) or (C)

32. What is the time of supply of service if the invoice is issued within 30 days from the
date of provision of service?
(A) Date of issue of invoice
(B) Date on which the supplier receives payment
(C) Date of provision of service
(D) Earlier of (A) & (B)

33. What is the time of supply of service if the invoice is not issued within 30 days from the
date of provision of service?
(A) Date of issue of invoice
(B) Date on which the supplier receives payment
(C) Date of provision of service
(D) Earlier of (A) & (B)

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 P-11: Indirect Taxation - Bit Questions

34. What is the time of supply of service in case of reverse charge mechanism?
(A) Date on which payment is made to the supplier
(B) Date immediately following 60 days from the date of issue of invoice
(C) Date of invoice
(D) Earlier of (A) & (B)

35. What is the time of supply of service where services are received from an associated
enterprise located outside India?
(A) Date of entry of services in the books of account of recipient of service
(B) Date of Payment
(C) Earlier of (A) & (B)
(D) Date of entry of services in the books of the supplier of service.

36. Value of supply under Section 15 is:

(A) Wholesale price
(B) Market value
(C) Maximum retail price
(D) Transaction value

37. The value of supply should include:

(A) Any non-GST taxes, duties, cess, fees charged separately by supplier
(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 Governments
(D) All of the above

38. Which of the following shall not be included in value of supply?

(A) GST
(B) Interest
(C) Late Fee
(D) Commission

39. 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

40. Which of the following statement(s) is/are correct?

(A) Section 15 of CGST Act prescribes different provisions for valuation of goods and
services
(B) CGST Act and IGST Act have different provisions for valuation of supply
(C) Section 15 of CGST Act prescribes same set of provisions for valuation of goods
and services
(D) (A) and (B)

41. Discount given after the supply is deducted from the value of taxable supply, if –
(A) Such discount is given as per the agreement entered into at/or before the supply
(B) Such discount is linked to the relevant invoices
(C) Proportionate input tax credit is reversed by the recipient of supply
(D) All of the above

42. In which of the following situations, taxpayer needs to reverse the credit already
taken?
(A) If payment is not made to the supplier within 45 days from the date of invoice

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 P-11: Indirect Taxation - Bit Questions

(B) If payment is not made to the supplier within 90 days from the date of invoice
(C) If payment is not made to the supplier within 180 days from the date of invoice
(D) None of the above

43. What is the time limit for taking ITC?

(A) 180 days
(B) 1 year
(C) 20th October of the next financial year or the date of filing annual return whichever
is earlier.
(D) No limit

44. If the goods are received in lots/installment, _____

(A) 50% ITC can be taken on receipt of 1st installment and balance 50% on receipt of
last installment
(B) ITC can be availed upon receipt of last installment
(C) 100% ITC can be taken on receipt of 1st installment
(D) Proportionate ITC can be availed on receipt of each lot/installment

45. For banking companies using inputs and input services partly for taxable supplies and
partly for exempt supplies, which of the statement is true?
(A) ITC shall be compulsorily restricted to credit attributable to taxable supplies
including zero rated supplies.
(B) 50% of eligible ITC on inputs, capital goods and input service shall be mandatorily
taken in a month and the rest shall lapse
(C) Banking company can choose to exercise either option (A) or option (B)
(D) None of the above

46. A supplier takes deduction of depreciation on the GST component of the cost of
capital goods as per Income Tax Act, 1961. The supplier can –
(A) avail only 50% of the said tax component as ITC
(B) not avail ITC on the said tax component
(C) avail 100% ITC of the said tax component
(D) avail only 25% of the said tax component as ITC

47. Which of the following inward supplies are not eligible for ITC in case of a company
manufacturing shoes?
(A) Food and beverages
(B) Outdoor catering
(C) Health Services
(D) All of the above

48. If there is a mis-match of supplier’s outward supply and recipient’s claim for ITC on the
same transaction (tax paid is claimed to be more by the recipient than the tax shown
as payable in the invoice of the supplier)
(A) The disputed amount shall be added as output tax liability in the return of the
recipient
(B) The disputed amount shall be reduced from the ITC of the recipient
(C) The disputed amount shall be increased in the outward supply of the supplier
(D) A demand notice will be issued on the recipient for the disputed amount

49. Which of the following statement is true for a composition tax payer?
(A) A composition tax payer can avail only 50% of ITC on capital goods
(B) A composition tax payer can avail 100% ITC on inputs
(C) ITC is not available on inward supplies made by a composition tax payer
(D) Composition tax will be available as ITC to the recipient only if the tax is
mentioned separately in the invoice raised by the composition tax payer

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 P-11: Indirect Taxation - Bit Questions

50. Mr. A has started supply of goods in Delhi. He is required to obtain registration if his
aggregate turnover exceeds ____ during a financial year
(A) Rs. 10 lakh
(B) Rs. 20 lakh
(C) Rs. 30 lakh
(D) Rs. 50 lakh

51. Aggregate turnover includes:

(A) Taxable supplies
(B) Exempt supplies
(C) Exports
(D) All of the above

52. Which of the following persons are compulsorily required to obtain registration?
(A) Persons making any inter-state taxable supply
(B) Non-resident taxable persons making taxable supply
(C) Casual taxable persons making taxable supply
(D) All of the above

53. Which of the following persons are not liable for registration?
(A) Any person engaged exclusively in supplying services wholly exempt from tax.
(B) Casual Taxable Person
(C) Both (A) and (B)
(D) None of the above

54. Rohan Toys is a registered supplier of goods in Delhi. It intends to attend a 7 days
Business Fair organized in Mumbai (next month) where it does not have a fixed place
of business. Examine which of the following statements are true for Rohan Toys:
(A) Rohan Toys is not required to obtain registration in Mumbai for attending a 7 days
Business Fair
(B) Rohan Toys has to obtain registration as a casual taxable person for attending the
Business Fair
(C) Rohan Toys has to obtain a Unique Identification Number for attending the
Business Fair
(D) None of the above

55. In case of taxable supply of services, invoice shall be issued within a period of ___
from the date of supply of service.
(A) 30 days
(B) 45 days
(C) 60 days
(D) 90 days

56. In case of taxable supply of services by an insurer, invoice shall be issued within a
period of ____ from the date of supply of service.
(A) 30 days
(B) 45 days
(C) 60 days
(D) 90 days

57. In case of continuous supply of services, where due date of payment is ascertainable
from the contract, invoice shall be issued:
(A) before or at the time when the supplier of service receives the payment
(B) on or before the due date of payment
(C) either (A) or (B)
(D) None of the above

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 P-11: Indirect Taxation - Bit Questions

58. In case of continuous supply of services, where due date of payment is not
ascertainable from the contract, invoice shall be issued:
(A) before or at the time when the supplier of service receives the payment
(B) on or before the due date of payment
(C) either (A) or (B)
(D) None of the above

59. Where the goods being sent or taken on approval for sale or return are removed
before the supply takes place, the invoice shall be issued:
(A) before / at the time of supply
(B) 6 months from the date of removal
(C) Either (A) or (B)
(D) None of the above

60. Which of these electronic ledgers are maintained online?

(A) Electronic liability register
(B) Electronic credit ledger
(C) Electronic cash ledger
(D) All of the above

61. Deposits towards tax, penalty, interest, fee or any other amount are credited into the
____ of a taxable person.
(A) Electronic liability register
(B) Electronic credit ledger
(C) Electronic cash ledger
(D) All of the above

62. Input tax credit as self-assessed in the return of the registered person shall be credited
to which of the following ledger?
(A) Electronic liability register
(B) Electronic credit ledger
(C) Electronic cash ledger
(D) All of the above

63. Which of the following items are debited to electronic credit ledger?
(A) Output tax
(B) Interest
(C) Penalty
(D) All of the above

64. Balance in electronic credit ledger under SGST can be used against which liability?
(A) SGST Liability only
(B) SGST and IGST liability
(C) SGST, IGST and CGST Liability
(D) None of the above

65. Which input tax credit cannot be claimed against which output tax liability?
(A) IGST, SGST
(B) CGST, IGST
(C) SGST, IGST
(D) CGST, SGST

66. Interest is payable on:

(A) Belated payment of tax
(B) undue / excess claim of input tax credit
(C) undue / excess reduction in output tax liability
(D) All of the above

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67. Which of the following liability cannot be adjusted against input tax credit of CGST?
(A) IGST
(B) SGST/UTGST
(C) All of the above
(D) None of the above

68. Which of the following shall be discharged first, while discharging liability of a taxable
person?
(A) All dues related to previous tax period
(B) All dues related to current tax period
(C) Demand raised under Sec. 73 and 74
(D) No such condition is mandatory

69. Interest is calculated on:

(A) From the day following the day on which tax becomes due to be paid
(B) From the last day such tax was due to be paid
(C) No period is specified
(D) None of the above

70. The minimum penalty for improper export of prohibited goods is:
(A) Rs. 5,000
(B) Rs. 10,000
(C) Rs. 15,000
(D) Rs. 25,000

71. Who is required to furnish details of outward supplies in Form GSTR – 1?

(A) Person paying tax under composition scheme
(B) Non-resident taxable person
(C) Both (A) & (B)
(D) None of the above

72. What does N stand for in HSN?

(A) Network
(B) Nationalization
(C) Nomenclature
(D) Nomination

73. Which form is furnished for submission of details of outward supplies u/s. 37?
(A) GSTR – 1
(B) GSTR – 2
(C) GSTR – 3
(D) GSTR – 5

74. What is the due date for submission of monthly GSTR – 1?

(A) On or before 10th day of the immediately succeeding month
(B) On or before 15th day of the immediately succeeding month
(C) On or before 17th day of the immediately succeeding month
(D) On or before 20th day of the immediately succeeding month

75. Form GSTR – 2 contains the details of ____

(A) Outward supplies
(B) Inward Supplies
(C) Consolidated supplies
(D) Tax Payable

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76. The due date of filing of GSTR – 2 is _____?

(A) On or before 10th day of the next month
(B) After 10th day but on or before 15th day of the next month
(C) On or before 17th day of the next month
(D) On or before 20th day of the next month

77. The due date for filing GSTR – 3 is _____

(A) On 10th day of the next month
(B) On 15th day the next month
(C) On 17th day of the next month
(D) On or before 20th day of the next month

78. Which of the following are not required to file the Annual Return?
(A) Input Service Distributor
(B) Casual Taxable Person
(C) Non-resident Tax Payer
(D) All of the above

79. The maximum amount of late fee payable by any registered person on failure to
furnish GSTR – 3 by the due date is Rs. ____
(A) 1,000
(B) 5,000
(C) 10,000
(D) 25,000

80. The due date of filing Final Return is _____?

(A) 20th of the next month
(B) 18th of the month succeeding the quarter
(C) Within three months of the date of cancellation or date of order of cancellation,
whichever is later
(D) 31st December of next financial year

81. Compensation to states under GST(Compensation to States ) Act , 2017 is paid by

(A) Central Government from consolidated fund of India
(B) Central Government from GST compensation fund of India
(C) Central Government directly from the collection of compensation cess
(D) GST Council under Constitution of India

82. While computing compensation to states, tax revenue of this tax/ these taxes is
excluded
(A) petroleum crude, diesel, petrol, ATF and natural gas
(B) Alcohol for human consumption
(C) entertainment tax collected by local authorities
(D) All of the above

83. Input tax credit on compensation cess paid under GST (Compensation to States) Act,
2017
(A) is not available
(B) is available
(C) is available but not fully
(D) is available after one year

84. Input tax credit under GST (Compensation to States) Act, 2017 includes GST
Compensation Cess charged on any supply of
(A) goods and/or services,
(B) Goods imported

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(C) GST Compensation Cess payable on reverse charge basis;

(D) All of the above

85. Maximum rate of CGST prescribed by law for intrastate supply made is----
(A) 18%
(B) 20%
(C) 40%
(D) 28%+cess

86. Input tax credit on Compensation cess paid under GST (Compensation to States) Act,
2017 is available for payment of
(A) IGST only
(B) IGST and CGST only
(C) compensation under GST (Compensation to States) Act
(D) None of the above

87. IGST is payable when the supply is ---

(A) Interstate
(B) Intra-state
(C) Intra- UT
(D) All of the above

88. Zero rated supply includes supplies made-

(A) By SEZ unit in India
(B) to SEZ unit in India
(C) Both (a & (B) above
(D) None of the above

89. With the introduction of GST, imports will be—

(A) more expensive
(B) cheaper
(C) neutral with no change
(D) None of the above

90. The first committee to design GST model was headed by

(A) Vijay Kelkar
(B) Asim Das Gupta
(C) Dr. Chidambaram
(D) None of the above

91. First discussion paper (FDP) which formed the basis for GST in 2009 was released by
(A) Union Finance Ministry
(B) Dr. Manmohan Singh
(C) GST Council
(D) Empowered Committee

92. Roll out of GST requires constitutional amendment because—

(A) existing laws were cascading
(B) the powers of levy were exclusive
(C) there are separate laws for goods and services
(D) All of the above

93. Works contract under GST is goods used in work relating to-
(A) Immovable property
(B) Both movable and immovable property
(C) Immovable property treated as supply of service
(D) Immovable property treated as supply of goods

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94. IGST deals with

(A) Composition scheme
(B) Time of supply
(C) Service tax on imported services
(D) All of the above

95. The turnover limit of Rs. 50 Lakh for composition scheme is not applicable to the state
of
(A) Himachal Pradesh
(B) Assam
(C) Uttarakhand
(D) None of the above

96. A supplier is liable to get registered under GST if his aggregate turnover in a financial
year crosses Rs. 20 lakh in a state or UT other than special category states if he is-
(A) an interstate supplier
(B) an intra-state supplier
(C) Electronic commerce operator
(D) Person liable to pay GST under reverse charge

97. Registration under GST is not compulsory to-

(A) Casual taxable person
(B) Input service distributor
(C) Non-resident taxable person
(D) None of the above

98. One of the following states does not fall under special category given under Art. 279A
of the Constitution
(A) Himachal Pradesh
(B) Uttarakhand
(C) Chhattisgarh
(D) Jammu & Kashmir

99. Exemption from registration is available to

(A) Central & State Govt. Departments
(B) Agriculturists
(C) (A) & b) above
(D) None of the above

100. Address for delivery

(A) Recipient address mentioned in the tax invoice
(B) Recipient address mentioned in the delivery challan
(C) Recipient address not necessary
(D) Recipient address mentioned in the Gate pass

101. When President assent was obtained for central GST

(A) 18th April 2017
(B) 22nd April 2017
(C) 5th April 2017
(D) 12th April 2017

102. What is applicability of GST?

(A) Applicable all over India except Sikkim
(B) Applicable all over India except Jammu and Kashmir
(C) Applicable all over India
(D) Applicable all over India except Nagaland

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103. Money means

(A) Indian legal tender
(B) Foreign currency
(C) Cheque/promissory note
(D) All the above

104. Non-taxable territory means

(A) Outside taxable territory
(B) Inside taxable territory
(C) Inter-state taxable territory
(D) None of the above

105. Person includes

(A) Individual
(B) HUF
(C) LLP
(D) All the above

106. Goods and Service Tax council referred in which section

(A) 279A of the constitution
(B) 276 of the constitution
(C) 277 of the constitution
(D) 279 of the constitution

107. Weight age of vote for centre at GST council

(A) 1/4th of total votes cast
(B) 1/3rd of total votes cast
(C) 1/2 of total votes cast
(D) Only B

108. Weightage of States ( combined together) at GST council

(A) 2/3rd of total votes cast
(B) 1/3rd of total votes cast
(C) 1/4th of total votes cast
(D) None of the above

109. Who is chairperson of GST council

(A) Finance secretary
(B) State Finance Minister
(C) Union Finance Minister
(D) None of the above

110. Taxable turnover of below Rs.1.5 crore assessee under control of

(A) Centre
(B) State
(C) Both (A) and (B)
(D) Only c

111. Powers to declare certain activities/transactions as neither supply of goods nor of

services
(A) Schedule I
(B) Schedule III
(C) Schedule II
(D) Schedule IV

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112. When GST council constituted

(A) 15.09.2016
(B) 13.09.2016
(C) 12.09.2016
(D) 20.09.2016

113. Agriculturist
(A) Individual or HUF
(B) Individual and HUF
(C) Partnership
(D) All the above

114. Associated enterprise mentioned

(A) Income tax act 1961
(B) Companies Act 2013
(C) Central GST Act 2017
(D) State GST Act 2017

115. Appointed day

(A) Date on which the provisions of this Act shall come into force
(B) Date on which President assent
(C) Date of which both houses passed the act
(D) Date on which sent to Finance Ministry

116. Deemed exports mentioned in which section

(A) Section 137
(B) Section 147
(C) Section 142
(D) Section 145

117. Quarter means

(A) March
(B) September
(C) December
(D) All the above

118. Taxable levy in case of manufacture under composite scheme

(A) Two percent
(B) Three per cent
(C) One per cent
(D) Half per cent

119. Whether person opted for composite scheme collect tax under GST
(A) No
(B) Yes
(C) Only A
(D) None of the above

120. Participation of ITC value chain in composite scheme

(A) With participation
(B) Without participation
(C) Either (A) or (B)
(D) None of the above

121. Taxes paid on

(A) Transaction value

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 P-11: Indirect Taxation - Bit Questions

(B) Manufacturing cost

(C) Both (A) and (B)
(D) None of the above

122. ITC available

(A) In the course or Furtherance of business
(B) Other than business exp
(C) Only A
(D) None of the above

123. Input tax credit availability

(A) On receipt of goods
(B) On payment of taxes paid by supplier to Govt.
(C) Taken to manufacturing site or availed services
(D) None of the above

124. Input tax on capital goods

(A) In one installment
(B) Partly five equal installments
(C) Only A
(D) Equally 10% every year

125. Appellate Tribunal mentioned in which section

(A) Section 109
(B) Section 105
(C) Section 103
(D) Section 119

126. Authorised representative referred in which section

(A) Section 110
(B) Section 116
(C) Section 119
(D) Section 106

127. Common portal referred in which section

(A) Section 136
(B) Section 146
(C) Section 143
(D) Section 149

128. Debit note and credit note mentioned in which section

(A) Section 36
(B) Section 39
(C) Section 34
(D) None of the above

129. Electronic cash ledger and Electronic credit ledger mentioned in which section
(A) Section 39
(B) Section 42
(C) Section 49
(D) Section 47

130. “Invoice” or “Tax invoice mentioned in which section

(A) Section 27
(B) Section 29
(C) Section 31
(D) Section 47

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131. Valid return mentioned in which section

(A) Section 29
(B) Section 39
(C) Section 47
(D) Section 49

132. GST Registration

(A) Aadhar based
(B) Passport based
(C) Pan based
(D) None of the above

133. A person is having multiple business requires registration

(A) Single
(B) Each business separately
(C) Either (A) or (B)
(D) None of the above

134. Deemed Registration

(A) After four working days
(B) After five working days
(C) After three common working days
(D) After seven working days

135. Annual Return to be filed every year

(A) 30th June
(B) 30th September
(C) 31st December
(D) 31st October

136. IGST tax levy means

(A) Within state
(B) Between two states
(C) Only A
(D) None of the above

137. IGST levy can be levied

(A) Centre
(B) State
(C) Union Territory
(D) Both (A) and (B)

138. The scope of supply of goods or services or both includes —

(A) Sale
(B) Exchange
(C) Lease
(D) All of the above

139. Sasta Bazar offers a free bucket with detergent purchased. It is a —

(A) Composite supply
(B) Mixed supply
(C) Principal supply
(D) None of the above

140. The form to be used for filing return by a taxpayer under composition scheme is:
(A) GSTR-4

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(B) GSTR-5
(C) GSTR-6
(D) GSTR-7

141. As per the GST Law, every registered taxable person must maintain the accounts
books and records for at least:
(A) 36 months from the due date of furnishing of annual return for the year pertaining
to such accounts and records
(B) 60 months from the due date of furnishing of annual return for the year pertaining
to such accounts and records
(C) 72 months from the due date of furnishing of annual return for the year pertaining
to such accounts and records
(D) 18 months from the due date of furnishing of annual return for the year pertaining
to such accounts and records

142. The electronic ledger which is used to record and maintain all the liabilities of a
taxable person, is called —
(A) Electronic credit ledger
(B) Electronic liability ledger
(C) Electronic cash ledger
(D) None of the above

143. 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

144. 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

145. 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

146. 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

147. 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

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148. 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) Rs. 15,000
(B) Rs. 50,000
(C) Rs. 35,000
(D) None of the above

149. In case of customs valuation, if air freight is not given, it is to be considered as:
(A) 20% of FOB value
(B) 1.125% of FOB value
(C) 15% of FOB value
(D) 10% of FOB value

150. In Customs, warehouse means:

(A) A public warehouse
(B) A private warehouse
(C) Special warehouse
(D) All of the above

151. 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

152. 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.

153. 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

154. 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

155. GT Jewellers Ltd. paid Rs. 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

156. 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.

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157. 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

158. 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

159. 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) Rs. 50,000
(B) Rs. 1,00,000
(C) Rs. 1,50,000
(D) Rs. 2,00,000

160. GST Compensation Cess will be levied on supply of:

(A) Tobacco
(B) Pan Masala
(C) Motor Vehicles
(D) All of the above

161. 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

162. GST has replaced the following law(s):

(A) Customs
(B) VAT
(C) Central excise
(D) Both (B) and (C)

163. GST is a __________________ based tax.

(A) origin
(B) destination
(C) territory
(D) None of the above

164. In IGST, I stands for

(A) Integrated
(B) International
(C) Inter-State
(D) Indian

165. The Chairperson of GST Council is

(A) Prime Minister of India
(B) Finance Minister of India
(C) Minister of State for Finance
(D) None of the above

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166. Under GST law the phrase 'Goods' does not include
(A) Actionable claim
(B) Growing crops on the land agreed to be severed before supply
(C) Money and Securities
(D) None of the above

167. The limit of exclusive economic zone of India, is ___________ from the nearest point of
the baseline.
(A) 200 nautical miles
(B) 12 nautical miles
(C) 24 nautical miles
(D) 100 nautical miles

168. The Safeguard duty imposed shall be in force for a period of _______ from the date of
its imposition and can be extended with the total period of levy not exceeding _____.
(A) 4 years, 10 years
(B) 3 years, 5 years
(C) 1 year, 5 years
(D) 5 years, 10 years

169. Which of the following is a taxable event for imported goods?

(A) Unloading of imported goods at the customs port
(B) Date of entry into Indian territorial waters
(C) Date of presentation of bill of entry
(D) Date on which the goods cross the customs barrier

170. Where the insurance amount is not available, for ascertaining the assessable value for
customs duty, the percentage of FOB value to be taken is:
(A) 1
(B) 1.125
(C) 1.5
(D) 2

171. Goods which are same in all respects, including physical quantity is known as
(A) Similar Goods
(B) Identical Goods
(C) Alike Goods
(D) Indistinguishable Goods

172. Which of the following manufacturer cannot opt for composition levy?
(A) Manufacturer of pan masala
(B) Manufacturer of ice cream
(C) Manufacturer of tobacco substitutes
(D) All of the above

173. GST is payable in respect of services rendered to an employer by an employee on

(A) regular basis in the course of employment
(B) contract basis not in the course of employment
(C) Neither (A) nor (B)
(D) Both (A) and (B)

174. Where a person becomes liable to get registered under GS T law, he should furnish
application for registration within -------------- days.
(A) 15
(B) 30
(C) 60
(D) 90

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175. Following taxes are levied in interstate supply of goods under GST law:
(A) CGST only
(B) SGST and IGST
(C) IGST and CGST
(D) IGST only

176. ------------- means where goods are cast into sea to reduce weight of ship to prevent
it from sinking and the thrown goods sink
(A) Jetsam
(B) Overload
(C) Underload
(D) None of the above

177. Basic custom duty on imported goods is levied at the rates specified in the
(A) First Schedule of the Customs Tariff Act, 1975.
(B) Second Schedule of the Customs Tariff Act, 1975.
(C) Customs Act, 1962.
(D) Customs Manual, 2001

178. A ship carries some goods K, L, M and N from Singapore to Dubai, via Chennai. L and
M are moved at Chennai in another vessel. L being meant for Kochi and M to Dubai.
As per customs law, the transhipped good(s) is/are:
(A) All four
(B) L only
(C) L and M
(D) None of the goods

179. In the GST regime, for the purpose of levying IGST for all the imports duty shall be
levied at the rate Rs. of
(A) 25%
(B) 18%
(C) 15%
(D) 10%

180. As per Section 2(24) of the Customs Act, 1962, the person in charge of a vehicle
carrying imported goods; deliver to the proper officer an import report within ----------
after its arrival in the customs station, in the prescribed form
(A) 12 hours
(B) 18 hours
(C) 24 hours
(D) None of the above

181. Renting of a marriage hall owned by a Trust registered under section 12AA of the
Income-tax Act, 1961 is not exempt from GST where
(A) charges are more than Rs. 5,000 per day
(B) charges are more than Rs. 1,000 per day
(C) charges are more than Rs. 10,000 per day
(D) None of the above

182. 'Zero rated Supply' means

(A) export of goods or services or both
(B) import of goods or services or both
(C) supply of goods or services or both to a Special Economic Zone Developer or a
Special Economic Zone Unit
(D) export of goods or services or both and supply of goods or services or both to a
Special Economic Zone Developer or a Special Economic Zone Unit

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183. The period prescribed for issuance of tax invoice in the case of provision of services is
(A) generally 45 days from the date of the supply of service (in case of Banking
companies - 30 days from the date of supply)
(B) generally 30 days from the date of the supply of service (in case of Banking
companies - 60 days from the date of supply)
(C) generally 30 days from the supply of service (in case of Banking companies - 45
days from the date of supply)
(D) 30 days from the date of supply of service in all cases

184. Annual Return shall be filed by

(A) every registered person
(B) registered person having annual turnover of Rs. 2 crores and above
(C) registered person having annual turnover of Rs. 1.5 crores and above
(D) None of the above

185. In the common portal, every claim of input tax credit of a registered person shall be
credited to
(A) Electronic Cash Ledger
(B) Electronic Credit Ledger
(C) Electronic Liabilities Register
(D) Electronic Credit Register

186. When the goods are sent from customs station for warehousing, proper officer shall
affix _____________ on the container.
(A) Permanent Lock
(B) One Time Lock
(C) Special Mark
(D) One Time Mark

187. Under section 46(1) of Customs Act, 1962, an importer shall present the bill of entry
before the end of ____________ following the day on which the aircraft/vessel/vehicle
carrying the goods arrives at the customs station.
(A) 1 day
(B) 2 days
(C) 3 days
(D) 4 days

188. All goods, derelict, Jetsam, flotsam and wreck brought (or) coming into India, shall be
dealt with as if they were into India.
(A) Exported
(B) Imported
(C) No duty
(D) Exempted from tax

189. As per Section 2(31) person in charge means

(A) Vessel - Master
(B) Train - Conductor (or) Guard
(C) Vehicle – Driver
(D) All of the above

190. Supply of goods or services or both to a Special Economic Zone unit is a

(A) Intrastate supply
(B) Export Supply
(C) Non-GST Supply
(D) None of the above

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191. Reverse Charge Mechanism shall apply

(A) only in respect of service
(B) only in respect of goods
(C) both in respect of goods and services
(D) only in respect of inward supplies from unregistered persons

192. Healthcare Service is taxable where services are provided in the field of
(A) Siddha, Ayurveda and Homeopathy
(B) Yoga, Unani and Naturopathy
(C) Acupuncture, Acupressure and Pranic Healing
(D) Allopathy

193. Where a desk-top printer is sold for Rs. 10,000 along with the exchange of an old printer
and if the price of the new desk-top printer without exchange is Rs. 12,500, the taxable
value for GST purpose would be
(A) Rs. 10,000
(B) Rs. 12,500
(C) Either (A) or (B)
(D) Rs.10,000 for the supplier and Rs. 2,500 for the customer

194. The Sale document to be generated by a supplier in case of exempted supply is called
(A) Tax Invoice
(B) Delivery Challan
(C) Bill of Supply
(D) Commercial Invoice

195. Exclusive Economic Zone extends to _________ nautical miles from the base line.
(A) 12NM
(B) 24 NM
(C) 100 NM
(D) 200 NM

196. As per Sec 2(1) of the Customs Act, 1962, adjudicating authority means any authority
competent to pass any order or decision under this Act, but does not include:
(A) CBEC
(B) Commissioner of (Appeals)
(C) CESTAT
(D) All of the above

197. Supplies made to SEZ (or) developer of SEZ is

(A) Zero rated
(B) Exempted
(C) Nil rate
(D) No duty

198. Assessment means process of determining the tax liability in accordance with the
provisions of the Act, which includes
(A) Provisional Assessment
(B) Self-assessment
(C) Reassessment
(D) All of the above

199. _____________ will be charged on luxury products like high-end cars and demerit
commodities like Pan Masala, tobacco and aerated drinks.
(A) Anti Dumping duty
(B) Safeguard duty
(C) GST Compensation cess
(D) IGST

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 P-11: Indirect Taxation - Bit Questions

Answer Key:
(1) (D) All of the above
(2) (A) Central Government
(3) (A) Alcoholic liquor for human consumption
(4) (B) GST will be levied from a date to be notified on the recommendations of the GST
Council.
(5) (D) All of the above
(6) (B) 279A
(7) (A) Management consultancy services not in course or furtherance of business
(8) (A) Schedule I of CGST Act
(9) (D) All of the above
(10) (D) None of the above
(11) (B) Mixed
(12) (A) Transfer of right in goods/undivided share in goods without transfer of title in goods
(13) (A) 20%
(14) (C) Both (A) and (B)
(15) (D) Rs. 75 lakhs
(16) (D) Value of inward supplies on which tax is paid under reverse charge
(17) (A) Inter State Supplies
(18) (A) IGST
(19) (C) 40%
(20) (A) Petroleum Crude
(21) (A) Electronic Commerce Operator – Kuber Cabs
(22) (A) Sponsorship services
(23) (C) Metro
(24) (D) All of the above
(25) (D) All of the above
(26) (C) Air terminating in Nagaland airport
(27) (D) None of the above
(28) (C) Date entered in books of accounts or date of credit in bank account, whichever
is earlier
(29) (D) Earlier of (A) or (B) or (C)
(30) (A) Date of issue of voucher
(31) (B) Date of redemption of voucher
(32) (D) Earlier of (A) & (B)
(33) (D) Earlier of (A) & (B)
(34) (D) Earlier of (A) & (B)
(35) (C) Earlier of (A) & (B)
(36) (D) Transaction value
(37) (D) All of the above
(38) (A) GST
(39) (B) When the buyer and seller are related or price is not the sole consideration
(40) (C) Section 15 of CGST Act prescribes same set of provisions for valuation of goods
and services
(41) (D) All of the above
(42) (C) If payment is not made to the supplier within 180 days from the date of invoice
(43) (C) 20th October of the next financial year or the date of filing annual return
whichever is earlier
(44) (B) ITC can be availed upon receipt of last installment
(45) (C) Banking company can choose to exercise either option (A) or option (B)
(46) (B) not avail ITC on the said tax component
(47) (D) All of the above
(48) (A) The disputed amount shall be added as output tax liability in the return of the
recipient
(49) (C) ITC is not available on inward supplies made by a composition tax payer

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 P-11: Indirect Taxation - Bit Questions

(50) (B) Rs. 20 lakh

(51) (D) All of the above
(52) (D) All of the above
(53) (A) Any person engaged exclusively in supplying services wholly exempt from tax
(54) (B) Rohan Toys has to obtain registration as a casual taxable person for attending the
Business Fair
(55) (A) 30 days
(56) (B) 45 days
(57) (B) on or before the due date of payment
(58) (A) before or at the time when the supplier of service receives the payment
(59) (C) Either (A) or (B)
(60) (D) All of the above
(61) (C) Electronic cash ledger
(62) (B) Electronic credit ledger
(63) (A) Output tax
(64) (B) SGST and IGST liability
(65) (D) CGST, SGST
(66) (D) All of the above
(67) (B) SGST/UTGST
(68) (A) All dues related to previous tax period
(69) (A) From the day following the day on which tax becomes due to be paid
(70) (A) Rs. 5,000
(71) (D) None of the above
(72) (C) Nomenclature
(73) (A) GSTR – 1
(74) (A) On or before 10th day of the immediately succeeding month
(75) (B) Inward Supplies
(76) (B) After 10th day but on or before 15th day of the next month
(77) (D) On or before 20th day of the next month
(78) (D) All of the above
(79) (B) 5,000
(80) (C) Within three months of the date of cancellation or date of order of cancellation,
whichever is later
(81) (B) Central Government from GST compensation fund of India
(82) (D) All of the above
(83) (B) is available
(84) (D) All of the above
(85) (B) 20%
(86) (C) compensation under GST (Compensation to States) Act
(87) (A) Interstate
(88) (B) to SEZ unit in India
(89) (A) more expensive
(90) (B) Asim Das Gupta
(91) (D) Empowered Committee
(92) (D) All of the above
(93) (C) Immovable property treated as supply of service
(94) (C) Service tax on imported services
(95) C) Uttarakhand
(96) (B) an intra-state supplier
(97) (D) None of the above
(98) (C) Chhattisgarh
(99) (B) Agriculturists
(100) (A) Recipient address mentioned in the tax invoice
(101) (D) 12th April 2017
(102) (C) Applicable all over India
(103) (D) All the above

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(104) (A) Outside taxable territory

(105) (D) All the above
(106) (A) 279A of the constitution
(107) (B) 1/3rd of total votes cast
(108) (A) 2/3rd of total votes cast
(109) (C) Union Finance Minister
(110) (C) Both (A) and (B)
(111) (B) Schedule III
(112) (A) 15.09.2016
(113) (A) Individual or HUF
(114) (A) Income tax act 1961
(115) (A) Date on which the provisions of this Act shall come into force
(116) (B) Section 147
(117) (D) All the above
(118) (C) One per cent
(119) (C) Only A
(120) (B) Without participation
(121) (A) Transaction value
(122) (A) In the course or Furtherance of business
(123) (B) On payment of taxes paid by supplier to Govt.
(124) (C) Only A
(125) (A) Section 109
(126) (B) Section 116
(127) (B) Section 146
(128) (C) Section 34
(129) (C) Section 49
(130) (C) Section 31
(131) (B) Section 39
(132) (C) Pan based
(133) (B) Each business separately
(134) (C) After three common working days
(135) (C) 31st December
(136) (B) Between two states
(137) (A) Centre
(138) (D) All of the above
(139) (B) Mixed supply
(140) (A) GSTR-4
(141) (C) 72 months from the due date of furnishing of annual return for the year pertaining
to such accounts and records
(142) (B) Electronic liability ledger
(143) (C) Rate of taxes are different from person to person
(144) (A) 1st July, 2017
(145) (D) all of the above.
(146) (D) GSTR-4
(147) (A) supply and liable to be taxed
(148) (B) Rs. 50,000
(149) (A) 20% of FOB value
(150) (D) All of the above
(151) (C) Green bill of entry
(152) (A) 01.04.2016
(153) (A) composite supply
(154) (D) All of the above
(155) (A) GT Jewellers Ltd
(156) (C) 24% p.a.
(157) (B) IGST will be levied
(158) (C) 20% of FOB value

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 P-11: Indirect Taxation - Bit Questions

(159) (B) Rs. 1,00,000

(160) (D) All of the above
(161) (B) Sale of goods to Domestic Tariff Area
(162) (D) Both (B) and (C)
(163) (B) destination
(164) (A) Integrated
(165) (B) Finance Minister of India
(166) (C) Money and Securities
(167) (A) 200 nautical miles
(168) (A) 4 years, 10 years
(169) (D) Date on which the goods cross the customs barrier
(170) (B) 1.125
(171) (B) Identical Goods
(172) (D) All of the above
(173) (B) contract basis not in the course of employment
(174) (B) 30
(175) (D) IGST only
(176) (A) Jetsam
(177) (A) First Schedule of the Customs Tariff Act, 1975
(178) (C) L and M
(179) (B) 18%
(180) (A) 12 hours
(181) (C) charges are more than Rs. 10,000 per day
(182) (D) export of goods or services or both and supply of goods or services or both to a
Special Economic Zone Developer or a Special Economic Zone Unit
(183) (C) generally 30 days from the supply of service (in case of Banking companies - 45
days from the date of supply)
(184) (A) every registered person
(185) (B) Electronic Credit Ledger
(186) (B) One Time Lock
(187) (A) 1 day
(188) (B) Imported
(189) (D) All of the above
(190) (B) Export Supply
(191) (C) both in respect of goods and services
(192) (C) Acupuncture, Acupressure and Pranic Healing
(193) (B) Rs. 12,500
(194) (C) Bill of Supply
(195) (D) 200 NM
(196) (D) All of the above
(197) (A) Zero rated
(198) (D) All of the above
(199) (C) GST Compensation cess

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 P-11: Indirect Taxation - Bit Questions

(II) Match the following in Column I with the appropriate in

Column II
1. Match the following:

Column I Column II
1. Reverse charge mechanism A GST has been implemented
2. Goods and Service 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
Levied and collected by Central
5. Central Goods and Services Tax E
Government

2. Match the following:

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

3. Match the following:

Column I Column II
1. Zero Rated supply A Eliminates cascading effect of tax
2. Form GST Reg – 1 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

4. Match the following:

Column I Column II
1. Agricultural Activities A Compulsory registration
Casual Taxable Person making
2. B Collected by Central Government
taxable supplies
3. Integrated Goods and Services Tax C 72 months
4. Transaction Value D Exempt from GST
5. Retention of Accounts E When price is sold consideration

5. Match the following:

Column I Column II
1. Head quarters of GST council is at A GSTN
2. SPV to cater to the needs of GST B Form of supply of goods
3. Breeding of fish C India
4. Barter D Exempted from GST
5. Highest GST rate is found in E Mumbai
F New Delhi
G China

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 P-11: Indirect Taxation - Bit Questions

6. Match the following:

Column I Column II
1. Casual Taxable Person A Different GSTINs but one PAN
2. Distinct Persons B Not taxable supply
Taxable person under composition
3. C Exempt supply
scheme
No fixed place of business in a State
4. Sale of Building D
or Union Territory
5. Interest on loans and advances E Quarterly Return

7. Match the following:

Column I Column II
1. GST Return of inward supplies A Form 2A
2. Read only document B 18
3. Rate of Interest (%) for delayed payment of GST. C 20
Due date for filing of Form GSTR 1 (_th of succeeding
4. D Form 2
month)
Due date of filing of Form GSTR 3B (_th of succeeding
5. E 10
month)

Answer Key:
Ans: 1

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

Ans: 2

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

Ans: 3

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

Ans: 4

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

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 P-11: Indirect Taxation - Bit Questions

Ans: 5

1. F
2. A
3. D
4. B
5. C

Ans: 6

1. D
2. A
3. E
4. C/B
5. B/C

Ans: 7

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

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 P-11: Indirect Taxation - Bit Questions

(III) State whether the following are 'True' or 'False'

1. 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.
2. The relevant form for application for revocation of cancellation of GST registration is
GST REG-22.
3. Goods and Services Taxpayer Identification Number (GSTIN) is a state-wise PAN-
based 15 digit number.
4. 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.
5. Recovery Agent Services to banking or NFBCs are exempted from GST.
6. The frequency to file GSTR – 1 is monthly.
7. GST is extended to whole of India excluding the State of Jammu and Kashmir.
8. Goods sent for a demonstration on returnable basis. It is a supply.
9. Central sales tax has been subsumed in the ambit of GST.
10. 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.
11. The Union Finance Minister is a Chairperson of the GST Council.
12. As per the definition under CGST Act, person does not include Central Government or
a State Government.
13. Penalties levied on late or delayed payment of loans and advances are exempted
supply under GST.
14. When goods are imported into India, CGST is levied.
15. The highest rate of tax levied under IGST is 28%.
16. GST will not abolish all the indirect taxes levied in India.
17. GST threshold limit for North-Eastern and hilly states is Rs.25 lakhs.
18. Goods are classified in the GST regime in India using SAC code.
19. The scope of supply of goods or services or both includes, inter alia, sale, exchange
and lease.
20. A person of Tripura is eligible to opt for composition levy provided his previous year
turnover (aggregate) exceeds Rs.75 lakh.
21. Under GST law, every registered person whose aggregate turnover during a financial
year exceeds Rs.2crore has to get his accounts audited by a chartered accountant
or a cost accountant.
22. Input credit can be claimed for machinery purchased and sent directly to a job
worker registered under the tax payer.
23. Under GST the phrase "Aggregate Turnover" includes exempt supplies also.
24. A person can issue normal tax invoice in respect of supplies which were suppressed
by him and are detected by the GST officers subsequently.
25. GST is payable once registered even if the turnover is less than the prescribed limit.
26. A registered person under GST law gives a free spoon along with each soap
purchased. This is a case of composite supply under GST law.
27. Buying and selling of second hand goods is not subject to GST.
28. The first type of Audit under GST is to be done by Chartered Accountant only.
29. Interest is payable even if duty is paid before the show cause notice.
30. ITC is allowed if the goods are destroyed by fire.
31. In case of export of goods, it is compulsory that the receipts of payment should be in
foreign exchange.
32. A Registered person may transfer any amount of tax, interest, penalty or any other
amount available in Electronic Cash Ledger to Electronic Cash Ledger for IGST, CGST
or UTGST or cess.

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 P-11: Indirect Taxation - Bit Questions

Answer Key:
1. True
2. False
3. True
4. False
5. False
6. True
7. False
8. False
9. True
10. False
11. True
12. False
13. True
14. False
15. True
16. True
17. False
18. False
19. True
20. False
21. True
22. True
23. True
24. False
25. True
26. False
27. False
28. False
29. True
30. False
31. False
32. True

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 P-11: Indirect Taxation - Bit Questions

(IV) Fill in the blanks

1. _________ means where goods are cast into sea to reduce weight of ship to prevent it
from sinking and the thrown goods sink.
2. 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.
3. The effective rate of customs duty on baggage is ______.
4. If the assessment is delayed for imported goods, then those goods can be stored in
public warehouse without executing a bond, is called ___________________.
5. ___________ goods must be same in all respects, except for minor differences in
appearance.
6. Rooms in a hotel or lodge are let out where tariff per day per room ________ or more,
is a taxable supply under GST.
7. Certificate of registration for GST shall be granted in Form ______.
8. The place of supply for post paid telecommunication services will be the ________.
9. 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.
10. GST is __________ based consumption tax.
11. _________ 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.
12. Due date of filing GSTR-4 is ____ of the month following the quarter.
13. The form of return which is to be filed by the input service distributor is __________.
14. In case of Jammu and Kashmir, registration is required if the aggregate turnover
exceeds ________.
15. Services relating to transportation of passengers by metro are covered under ______
rate of GST.
16. Indirect taxes are ______ based taxes.
17. Direct taxes are _________ in nature.
18. Indian GST Model is chosen from ___________(country) model.
19. GST Council has been created as per Article ______ of the amended Constitution.
20. In HSN, N stands for ________________.
21. Every person who is liable to be registered under GST shall apply for registration in
form _____________.
22. License to occupy land is treated as ______________(supply of services/not supply of
services).
23. In GST, details of inward supplies of taxable goods or services for claiming input credit
are to be furnished in form no. _________________.
24. For delayed payment of GST, interest is payable at ___% per annum
25. As per the GST law, every registered taxable person must maintain account books
and records for at least __________ from the due date of furnishing of annual return for
the year pertaining to such return.
26. In case of death of a tax payer __________ can request for cancellation of registration.

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 P-11: Indirect Taxation - Bit Questions

27. Gifts exceeding __________ in value in a financial year by an employer to employee

shall constitute supply of goods or services or both.
28. Toll receipts from highway of Coimbatore to Palghat is Rs. 60,00,000 and commission
earned on toll receipts is Rs. 6,00,000. The value of taxable supply will be ________.
29. In case of supply of goods by a composite dealer, the registered person shall issue
________.
30. R has started business of supplying toys in J&K. He is required to obtain registration if
his aggregate turnover during a financial year exceeds _________.
31. If the ECO (e-commerce operator) is located in taxable territory, then person liable to
pay tax is ___________.
32. The time limit beyond which if goods are not returned the capital goods sent for job
work shall be treated as supply ______.
33. Transport of Milk is _________ supply.
34. Registration certificate granted to casual taxable person or non-resident taxable
person will be valid for ___ days from the effective date of registration.
35. A registered supplier has claimed depreciation as per Income Tax Act, 1961 on the
total cost of a machinery including IGST component of Rs. 36,000. He can avail ITC to
the tune of Rs. _____.

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 P-11: Indirect Taxation - Bit Questions

Answer Key:

1. Jetsam
2. Anti-Dumping Duty
3. 36.05%
4. Warehousing without warehousing
5. Identical
6. 71,000
7. 01
8. Billing
9. Taxable
10. Destination
11. Principal
12. 18
13. GSTR-6
14. Rs. 20 Lakhs
15. Nil
16. Supply
17. Progressive
18. Canadian
19. 279A
20. Nomenclature
21. GST REG-01
22. Supply of services
23. GSTR 2 (Alternate answer- As GSTR 2 is currently suspended credit of ITC is taken
directly in Form GSTR 3B)
24. 18
25. 72 months
26. Legal heir
27. Rs. 50,000
28. Rs. 6,00,000
29. Bill of supply
30. Rs. 20,00,000 (in case of special category states Rs. 10,00,000 except Jammu &
Kashmir)
31. ECO (e-commerce operator)
32. 3 years
33. Exempted
34. 90
35. Nil

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 P-11: Indirect Taxation - Bit Questions

Notes
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The Institute of Cost Accountants of India 37

Behind every successful business decision, there is always a CMA
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
Statutory Body under an Act of Parliament
www.icmai.in
Headquarters
CMA Bhawan, 12 Sudder Street, Kolkata - 700016

Å +91-33-2252 1031/34/35/1602/1492
Delhi Office
CMA Bhawan, 3 Institutional Area, Lodhi Road, New Delhi - 110003
Å +91-11-24666100

[email protected]

Behind every successful business decision, there is always a CMA