Inter GST Test (Part – 3)

(From Registration Chapter to

Return under GST)
Time Allowed – 1 Hour 45 Minutes
Maximum Marks – 60

Q.1. Choose the correct answer in each of the following questions. Only one option is correct.
You are not required to write any reason for the answer.
(i) Which GST Return form is to be used to file Final Return u/s 45 of CGST Act, 2017? 1
(a) GSTR – 9
(b) GSTR – 10
(c) GSTR – 11
(d) GSTR – 12

(ii) TDS at the rate of ___ shall be deducted if total value of taxable supplies exceeds ___. 1
(a) 2%; ` 1,50,000
(b) 1%; ` 2,00,000
(c) 2%; ` 2,50,000
(d) 1%; ` 5,00,000

(iii) A registered person whose aggregate turnover in any preceding financial year from 2017- 1
18 onwards exceeds ` 5 crore shall prepare an e-invoice in respect of _____or for _____.
(a) B2C Supplies; Exports.
(b) B2B Supplies; B2C Supplies.
(c) B2B Supplies; Exports.
(d) B2B Supplies; Imports.

(iv) Every registered person who has opted for Quarterly Return Monthly Payment (QRMP) 1
Scheme would be required to pay tax due in each of the first two months of the quarter by
depositing the due amount by ______ of the month succeeding such month.
(a) 20th
(b) 22nd
(c) 24th
(d) 25th

(v) Who among the following is not required to be compulsorily registered u/s 24? 1
(a) Input Service Distributor
(b) E-Commerce Operator who are required to pay tax u/s 9(5)
(c) Non-resident taxable persons making taxable supply
(d) Every E-Commerce Operator

(vi) In case of supply of exempted goods or services or both, the registered person shall issue 1
(a) a tax invoice
(b) receipt voucher
(c) a bill of supply
(d) GST law is not applicable since goods are exempted

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 (vii) As per Rule 46, a tax invoice shall be issued by the registered person containing the name 1
and address of the recipient and the address of delivery, along with the name of the State
and its code, if such recipient is un-registered and where the value of the taxable supply
is ` _____ or more.
(a) 50,000
(b) 2,50,000
(c) 1,00,000
(d) 5,00,000

(viii) If the proper officer fails to take any action within a period of ________ from the date of 1
submission of application in case where registration is to be granted after physical
verification of the premises of a person (a) who fails to undergo the Aadhaar
authentication does not opt for Aadhaar authentication or (b) wherein the proper officer
deems it fit to carry out physical verification of places of business.
(a) 7 days
(b) 15 days
(c) 21 days
(d) 30 days

(ix) No e-way bill is required to be generated where the goods are being transported upto a 1
distance of km ____ from the place of business of the consignor to a weighbridge for
weighment.
(a) 20
(b) 30
(c) 40
(d) 50

(x) A supplier of service who is making inter – state supply of taxable services will be 1
required to be registered.
(a) Compulsorily as per Sec. 24.
(b) If aggregate turnover exceeds ` 5,00,000.
(c) If aggregate turnover exceeds ` 10,00,000.
(d) If aggregate turnover exceeds ` 20,00,000.

Q.2. (a) State whether Tax collected at source u/s 52 of CGST Act, will be applicable in below 3
mentioned scenarios –
(a) Tanishq sells its own jewellery through its own website?
(b) ABC limited who is dealer of Tanishq brand sells jewellery through Flipkart,
Amazon, etc.?
Solution:
As per Section 52 of CGST Act, every electronic commerce operator not being an agent,
shall collect an amount calculated at such rate not exceeding 1%, as may be notified by
the Government on the recommendations of the Council, of the net value of taxable
supplies made through it by other suppliers where the consideration with respect to
such supplies is to be collected by the operator.

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Hence, if the person sells on his own, TCS won't be applicable.
(a) Thus, there will be no requirement of TCS when Tanishq sells its own jewellery
through its own website.
(b) If ABC limited who is dealer of Tanishq brand sells jewellery through Flipkart,
Amazon, etc., then the provision of TCS will be applicable to Flipkart, Amazon.

(b) M/s. Arundhati Textile is having a place of business in Surat as well as Ahmedabad. 2
It wishes to obtain separate registration in GST for both its place of business. Both
the places of business are doing same business activity. Is it possible to obtain
separate registration under GST for both its place of business?
Solution:
A person having multiple places of business in a State or Union Territory may be
granted separate registration for each such place of business. Thus, in the given question
M/s. Arundhati Textile having multiple places of business within the same state, it can
obtain separate registration for each such place of business.

(c) You are required to comment in respect of the following. 4

(i) A Central Government department located at Uttar Pradesh is registered with
the Commercial Tax department UP State for deducting GST. It enters into a
contract with a Public Sector Undertaking (PSU), registered under GST in the
State of Delhi, for supplying goods valued ` 3,50,000. The PSU argues that no tax
is deductible on this supply by the Central Government Department as it is
located outside the State of Uttar Pradesh and therefore not liable to tax under
CGST and SGST as it is a local levy and IGST tax deduction is not applicable if
it is located in another State, other than the State in which the department
is registered. You are required to comment on this.
(ii) Would there be any difference, if instead of the PSU if it was an entity
in the private sector. Applicable tax rate for deduction is 1% - CGST, 1% - SGST
and 2% - IGST.
Solution:
(i) The contention of PSU is not correct. In this case supplier as well as the place of
supply are in different states. In such cases, Integrated tax would be levied. TDS to
be deducted would be TDS (Integrated tax) and it would be possible for the supplier
(i.e. the deductee) to take credit of TDS in his electronic cash ledger. However, Tax is
not liable to be deducted at source when supply of goods and/or services takes
place between one person to another person specified in clauses (a), (b), (c) and (d)
of section 51(1) of the CGST Act. Here Central and State Government department
are covered under section 51(1)(a) and PSU are notified under section 51(1)(d),
hence, TDS provisions will not be applicable.

(ii) Yes, in that case Central government department will deduct tax at source @ 2%
[Integrated Tax (TDS)] of ` 3,50,000 = ` 7,000.

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Q.3. (a) Mr. NY, a supplier of goods pays GST under regular scheme. Mr. NY is not eligible for 6
any threshold exemption. He has made the following outward taxable supplies during
September 2024:
Rate of Tax Amt (`)
Particular
CGST SGST IGST
Intra State Supply of goods
Product A 6% 6% - 8,00,000
Product B 9% 9% - 2,00,000
Inter State Supply of goods
Product A - - 12% 3,00,000
Product B - - 18% 1,50,000
He has also furnished the following information in respect of supplies received by him during
September 2024:
Rate of Tax Amt (`)
Particulars
CGST SGST IGST
Intra State Supply of goods
Product A 6% 6% - 2,00,000
Product B 9% 9% - 1,00,000
Inter State Supply of goods
Product A - - 12% 1,50,000
Product B - - 18% 80,000
Mr. NY has following ITCs with him at the beginning of September 2024:
Particulars `
CGST 40,000
SGST 28,000
IGST 44,600
Note:
(i) Both inward and outward supplies are exclusive of taxes, wherever applicable.
(ii) All the conditions necessary for availing the ITC have been fulfilled. Compute net
GST payable by Mr. NY for the Month of September 2024. Make suitable assumptions
wherever required.
Solution:
Computation of net GST payable (amount in `):
Particular CGST SGST IGST
Output tax liability
Inter-State Sale:
Product A: ` 3,00,000 [IGST leviable @ 12%] - - 36,000
Product B: ` 1,50,000 [IGST leviable @ 18%] - - 27,000
Intra-State Sale:
Product A: ` 8,00,000 [CGST and SGST leviable 48,000 48,000 -
@ 6%]
Product B: ` 2,00,000 [CGST and SGST leviable 18,000 18,000 -
@ 9%]
Total output tax liability 66,000 66,000 63,000

Less: Input tax credit —

Opening balance 40,000 28,000 44,600
Purchases during the month
Intra-State purchases:

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 Product A: ` 2,00,000 [CGST and SGST leviable 12,000 12,000
@ 6%]
Product B: ` 1,00,000 [CGST and SGST leviable 9,000 9,000
@ 9%]
Inter-State purchases:
Product A : ` 1,50,000 [IGST leviable @ 12%] 18,000
Product B : ` 80,000 [IGST leviable @ 18%] - - 14,400
Total Input tax credit 61,000 49,000 77,000
Less: Extra credit of IGST can be used for 5,000 9,000 -
payment of CGST/SGST [WN] 14,000
Net amt. of CGST/ SGST/ IGST payable in Nil 8,000 Nil
cash
Net amount of CGST/IGST credit to be carried Nil Nil Nil
forward
Working Note: IGST credit can be utilised for payment of CGST/SGST in any order.

Q.3. (b) Answer the following with regards to the QRMP Scheme – 4
(i) A Ltd. has opted for filing Form GSTR-3B under the QRMP scheme during
F. Y. 2024-25. However, its aggregate turnover exceeds ` 5 crores on 15/08/2024.
Is A Ltd. required to opt for monthly filing of GSTR-3B? If so, from
which month/period?
(ii) B Ltd. has opted for filing Form GSTR-3B under the QRMP scheme during
F. Y. 2024-25. It voluntarily wishes to opt out of the scheme from 01st Jan 2025.
Within which time period the facility to opt out will be available to B Ltd.?
(iii) C Ltd. has opted for QRMP scheme. However, it wishes to furnish details of
outward supplies to a registered person for the first two months of a quarter.
Can it do so? If yes, how? And upto what value?
(iv) D Ltd. has opted for QRMP scheme. It has paid tax for the month of April, 2024
as per Fixed Sum Method. However, for the month of May, 2024 it wants to pay
tax as per Self-Assessment method. Can it do so?
Solution:
(i) A registered person whose aggregate turnover exceeds ` 5 crores during a quarter in
the current financial year, shall opt for furnishing of return on monthly basis from
the succeeding quarter. So, yes, A Ltd. shall be required to opt for monthly filing of
return and it will be required to do so from the succeeding quarter i.e. from October, 2024.
(ii) The facility to opt out of the scheme for a quarter will be available from first day
of second month of preceding quarter to the last day of the first month of the quarter.
So, B Ltd. intending to opt out of the scheme from 01/01/2025 can do so
during 01st Nov 2024 to 31st Jan 2025.
(iii) Yes, C Ltd. can furnish details of outward supplies to a registered person for the first
two months of a quarter using the Invoice Furnishing Facility (IFF) between 1st day
of the succeeding month till 13th day of the succeeding month. However, the said
details of outward supplies shall not exceed the value of ` 50 lakh in each month.
(iv) Yes, A registered person is free to avail either of the two tax payment method in any
of the two months of the quarter.

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Q.4. (a) M/s. Manmohak Apparels, is registered GST in Madhya Pradesh. It sells leather 4
handbags across India through e-commerce operator Ping-Pong. Ping-Pong, is
also registered with Madhya Pradesh GST Authority as TCS collector. M/s.
Manmohak Apparels made sales of ` 3,45,000/- and received sales returns of ` 67,700/-
in the month of October, 2024. Sales are inclusive of tax. Leather handbags are taxable
@ 18% GST. Determine the amount of tax to be collected at source.
Solution:
As per Section 52 of CGST Act, every electronic commerce operator not being an agent,
shall collect amount calculated @ 0.5% CGST and @ 0.5% SGST, of the net value of
taxable supplies made through it by other suppliers where the consideration with respect
to such supplies is to be collected by the operator.
“Net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods
or services or both, other than services notified under Section 9(5), made during any month by
all registered persons through the operator reduced by the aggregate value of taxable
supplies returned to the suppliers during the said month.
The amount of tax to be collected at source shall be determined as under:
Value of taxable supplies of goods made by Manmohak Apparels 3,45,000
Less: Value of taxable supplies of goods returned to Manmohak Apparels 67,700
Net Value of taxable supplies inclusive of 18% GST 2,77,300
Less: GST [` 2,77,300 × 18  118] 42,300
Net Value of taxable supplies on which tax is to be collected at source 2,35,000
Rate of TCS [0.5% CGST and 0.5% SGST] 1%
Amount of TCS 2,350

Q.4. (b) Answer the following with brief reasons – 6

(i) M/s. Dhruv International, a business entity located in Jammu & Kashmir, has
done intra-state supply of exempt goods worth ` 15 lakhs and intra-state supply
of taxable goods worth ` 3.50 lakhs and intra-state supply of taxable services
worth ` 1 lakh in F. Y. 2023-24. Is M/s. Dhruv International required to obtain
registration?
(ii) M/s. Sai Services has supplied taxable services worth ` 18 lakhs which also
include inter- state supply of services worth ` 4 lakhs. Is M/s. Sai Services required
to obtain registration?
(iii) M/s. Dalal & Co. has supplied goods worth ` 6 lakhs as an agent on behalf of
M/s. Ram & Co., a taxable person. Is M/s. Dalal & Co. required to obtain
registration?
(iv) ‘Stitching Masters’ is an ECO (not required to collect tax u/s 52 of the CGST
Act, 2017) from where a person can avail professional tailoring services
through fashion designers registered with the ECO. Is ECO required to
obtain registration u/s 24?
Solution:
(i) A person is liable to be registered if aggregate turnover exceeds ` 20,00,000 in a
financial year. However, if a person is engaged exclusively in supply of goods, then
the threshold limit would be ` 40,00,000 instead of ` 20,00,000. Aggregate
turnover includes both exempt supplies as well as taxable supplies. In the given case,

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 the aggregate turnover is ` 19,50,000 and hence it is less than ` 20,00,000. Further,
J&K has opted for aggregate turnover limit of ` 20,00,000. Thus, M/s. Dhruv
International is not liable for registration.
(ii) As per Sec. 24 of CGST Act, 2017, inter – state suppliers are compulsorily required
to obtain GST registration irrespective of their aggregate turnover. However,
Central Government has exempted inter – state suppliers of taxable service
whose aggregate turnover has not exceeded ` 20,00,000 in a F.Y. from obtaining
GST registration. In the given case, M/s. Sai Services has supplied inter-state
taxable services but its aggregate turnover is only ` 18,00,000. Thus, as per the
relaxation given by government, M/s. Sai Services is not required to obtain registration.
(iii) As per Sec. 24 of CGST Act, 2017, a person is liable for registration if he supplies
goods or services or both on behalf of another taxable person whether as agent
or otherwise. In the given case, since M/s. Dalal & Co. has supplied goods as an agent
on behalf of M/s. Ram & Co., who is a taxable person, it is liable for registration as
per Sec. 24.
(iv) As per Sec. 24 of CGST Act, 2017, every ECO who is required to collect tax u/s 52
of the CGST Act, 2017 shall be compulsorily required to obtain registration.
However, since ‘Stitching Masters’ is not required to collect tax u/s 52, they are
not covered u/s 24 and thus they are not compulsorily required to obtain registration
u/s 24.

Q.5. (a) State the ground on which registration can be cancelled by the proper officer as per Sec. 6
29(2) and Rule 21.
Solution:
The proper officer may cancel the registration of a person where ––
(a) A registered person has contravened such provisions of the Act or the rules made
thereunder i.e.–
(i) Does not conduct any business from the declared place of business; or
(ii) Issues invoice/bill without supply of goods/services in violation of the provisions
of this Act, or the rules made thereunder; or
(iii) Violates the provisions of section 171; or
(iv) Violates the provision of rule 10A; or
(v) Avails input tax credit in violation of provisions of section 16 of the Act and the
rules made thereunder; or
(vi) Furnishes the details of outward supplies in Form GSTR-1 under section 37 for
one or more tax periods which is in excess of the outward supplies declared by him
in his valid return under section 39 for the said tax periods;
(vii) Violates the provision of rule 86B;
(viii) Being a registered person required to file return u/s 39(1) for each month or
part thereof, has not furnished returns for a continuous period of 6 months;
(ix) Being a registered person required to file return u/s 39(1) under QRMP scheme
for each quarter or part thereof, has not furnished returns for a continuous period
of 2 tax periods.
(b) A person paying tax under section 10 has not furnished the return for a financial
year beyond 3 months from the due date of furnishing the said return; or

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 (c) Any registered person, other than a person specified in section 29(2)(b), has
not furnished returns for such continuous tax period as may be prescribed; or
(d) Any person who has taken voluntary registration under sub-section (3) of section 25
has not commenced business within six months from the date of registration; or
(e) Registration has been obtained by means of fraud, wilful misstatement or suppression of
facts.

Q.5. (b) Answer the following – 3

(i) Where E-Invoicing is done, the invoices will be reported to _____. On such
reporting of invoices, a unique _____ will be generated, the invoices will be
digitally signed and return the e-invoice to the supplier.
(ii) SEZ developers are exempted from the requirement of issuing E-invoice. Discuss
the validity of this statement.
(iii) If an E-invoice has been issued, then it must have a QR Code. Discuss the validity
of this statement.
Solution:
(i) Where E-Invoicing is done, the invoices will be reported to ‘Invoice Registration
Portal (IRP)’. On such reporting of invoices, a unique ‘Invoice Reference Number
(IRN)’ will be generated, the invoices will be digitally signed and return the E-invoice
to the supplier.
(ii) The statement is incorrect. SEZ units are exempted from the requirement of issuing
E-invoices and not SEZ developers.
(iii) The statement is correct. QR Code is mandatory when e-invoice has been issued.

Q.5. (c) State the cases in which invoice wise details is required to be given in GSTR-1 by the 2
supplier.
Solution:
In GSTR-1, invoice wise details shall be given in the following cases –
(i) Inter-state and intra-state supplies made to registered persons.
(ii) Inter-state supplies made to unregistered persons with invoice value exceeding
` 2,50,000.

Q.6. (a) Answer the following with brief reasons – 5

(i) M/s. Deep Steel Works is providing taxable services from Gujarat as well
as Rajasthan. It wants to avail single registration for both its units. Is it possible?
If so, how?
(ii) Jay Ambe Stores is a supplier of snacks. It does not have PAN. Can he obtain
GST registration?

(iii) In GST, advance tax is not to be paid before obtaining registration. Is there
any exception to this statement?
(iv) Mahadev Stores became liable for registration u/s 24 of CGST Act on 01st Nov. 2024.
It applied for registration on 05th Dec. 2024. The registration was granted to it
on 15th Dec. 2024. What will be the effective date of registration?

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 (v) Amendments in GST registration in core-fields of information require approval
of proper officer. Which are those core-fields?
Solution:
(i) In GST registration is given state wise. There is no provision for centralised registration
or single registration for units located in different states even though it operates as a
single entity. Thus, M/s. Deep Steel Works cannot avail single registration for both
its units and it will have to obtain separate registration for both the units as they
are located in different states.
(ii) PAN card is mandatory for obtaining GST Registration except for non-resident
taxable person. Thus, it will not be possible for Jay Ambe Stores to avail GST
registration without PAN card.
(iii) Yes, there is an exception to this statement. In case of casual taxable person and
non- resident taxable person, they are required to pay their estimated tax liability
in advance to the Government even before obtaining registration. They are
granted registration only after they deposit their estimated tax liability.
(iv) If application for registration has been submitted after the expiry of 30 days from the
date on which the person became liable for registration, the effective date of
registration will be the date of grant of registration. Since in the given case,
Mahadev Stores applied for registration after 30 days of becoming liable for
registration, the effective date of registration will be the date of grant of registration
i.e. 15th Dec. 2024.
(v) Core – fields are – (a) legal name of business (b) address of the principal place of
business or any additional place of business (c) addition, deletion or retirement of
partners or directors, Karta, Managing Committee, Board of trustees, CEO or
equivalent, responsible for day to day affairs of the business.

Q.6. (b) Answer the following with respect to provisions of E-way bill – 5
(i) Kirit Ltd., Rajasthan, hands over goods worth ` 80,000 to a GTA for transport
to Manohar Ltd., Haryana. The said supply includes taxable goods of ` 45,000
and exempt goods of ` 35,000. Is the E-way bill mandatory?
(ii) Pawan Processors, Gujarat, sends taxable goods worth ` 1,50,000 on sale or
approval basis to Sahil & Co., Punjab. Is the e-way bill mandatory?
(iii) Sonam Silks transports goods through Spicejet & Airways worth ` 2,00,000
from Madhya Pradesh to M/s. Meha Sarees, Uttarakhand. Both the consignor
and consignee are registered. Who is required to furnish information in Part-B of
E-way bill in the above transaction?
(iv) Rakesh is shifting from Bangalore to Surat. He transports his used furniture
worth ` 2,50,000 through Mover & Packers Ltd. Is the E-way bill mandatory?

(v) M/s. Rahul Artwork, Goa has to send goods worth ` 1,00,000 to its customer
in Maharashtra. The distance is 349 km. The cargo is not an over dimensional
cargo. State validity period of the e-way bill from relevant date.

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Solution:
(i) E-way bill is mandatory whenever there is movement of goods of consignment
value exceeding ` 50,000. Further, value of any exempt supply shall be excluded
while computing the consignment value. In the given case, the consignment value
of the goods would comprise of only taxable goods of ` 45,000 and hence it is
not mandatory to generate an e-way bill as consignment value does not exceed ` 50,000.
(ii) E-way bill is mandatory whenever there is movement of goods of consignment
value exceeding ` 50,000 even for reason other than supply. Thus, in the given case
even though the goods are sent on sale or approval basis i.e. for reason other than
supply, E-way bill will be mandatory as the consignment value of goods is exceeding
` 50,000.
(iii) Where the goods are transported by railways or by air or vessel, the information in
Part-B of E-way bill shall be furnished by the registered person, being the supplier
or the recipient, either before or after the commencement of movement. Thus, in the
given case since both the recipient.
i.e. M/s. Meha Sarees and the supplier.
i.e. Sonam Silks are registered persons, either of them shall furnish information in Part-B
of E-way bill.
(iv) Where the goods being transported are used personal and household effects then
E-way bill is not mandatory. In the given case, since used personal furniture is
being moved, E-way bill is not mandatorily required.
(v) If the distance is upto 200 km, then validity is one day in case of goods other than
over dimensional cargo. And for every 200 km or part thereof thereafter, validity period
is extended by one additional day. In the given case, since it is not an over
dimensional cargo and distance is 349 km, the validity period will be 2 days.

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