Professional Documents
Culture Documents
GST
GST
S
t INTRODUCTION OF GST & CHARGE OF TAX
CHAPTER - 1
INDEX
(a) State Legislature (b) Parliament [Hint: Refer Schedule VII, Entry no.84 under List I & [Hint:- Centre and States simultaneously levy GST
(c) Both (d) Depends upon nature of supply also refer section 9(1) & 9(2) of CGST Act to know on intra-state taxable supply]
[Hint:- Refer Article 246A of Constitution of India] goods on which there is no levy of GST]
MCQ 01.01.02.00 05. Article 279A:- GST Council & its’
What kind of tax is GST called as..? 03.Various Taxes Subsumed/ Not subsumed Recommendations
(a) Consumption based tax under GST:- MCQ 01.05.07.00
(b) Movement based tax MCQ 01.03.05.00 From the following, who will be the members of the
(c) Destination based tax Various taxes have been subsumed in GST to make GST Council?
(d) None of the above one nation one tax one market for consumers. Out of 1. Union Finance Minister
[Hint:- GST is revenue of state where place of supply the following, determine which taxes have been 2. Union Minister of State in charge of Revenue or
is determined which is generally destination based] subsumed in GST. Finance
(i) Basic customs duty levied under Customs Act, 3. Chief Ministers of States
02. Sec 9 of CGST Act/ Sec 5 of IGST Act:- 1962 (a) 1 & 3 (b) 1 & 2
Charging Section (ii) Taxes on lotteries (c) 2 & 3 (d) All of the above
MCQ 01.02.03.00 (iii) Environment tax [RTP May 21][ICAI [Hint:- Refer Article 279A of Constitution of India]
Alcoholic liquor for human consumption is subjected Material] MCQ 01.05.08.00
to [ICAI Material] (a) (ii) The recommendation of the GST Council will be __
(a) State excise duty (b) (ii) and (iii) (a) Mandatory
(b) Central Sales Tax/Value Added Tax (c) (iii) (b) Only Advisory Power
(c) Both (a) and (b) (d) (I), (ii) and (iii) (c) Mandatory and sometimes Advisory
(d) GST (Hint: The GST has replaced some taxes, which was (d) Mandatory on States only
Hint :- Refer Entry 51 & 54 under List II of Schedule levied earlier ) [Hint:- As per Supreme court Judgement]
VII& also refer section 9(1) & 9(2) of CGST Act to
know goods on which there is no levy of GST] 04. Dual GST Model in India:- 06. Common GST Portal/ Goods & Service Tax
MCQ 01.02.04.00 MCQ 01.04.06.00 Network (GSTN):-
Tobacco is: What does dual GST concept mean? MCQ 01.06.09.00
(a) exempt from GST. (a) Charging CGST & IGST GSTN is a -----------
(a) Non-profit organisation
Introduction of GST
[Hint:- GSTN is a pvt. Ltd. company formed u/s 8 of (c) 1st CGST & then IGST hence IGST 3600)
Companies Act i.e. to promote non-profit objectives] (d) 1st IGST & then CGST
MCQ 01.06.10.00 [Hint:- Refer Sec 49 read with Rule 88A:- manner
Which of the following is not the role of GSTN in GST of utilization of ITC] Answer:-
regime? MCQ 01.07.13.00
01.01.01 c 01.07.14 c
(a) Facilitating registration, forwarding return to ITC of SGST can be utilised for payment of
Central and State authorities. (a) Only CGST (b) Only SGST 01.01.02 c
(b) Computation and Settlement of IGST, matching (c) 1st IGST & then SGST
tax payment details with banking network (d) 1st SGST & then IGST 01.02.03 c
(c) Providing platform for litigation [Hint:- Refer Sec 49 read with Rule 88A:-
01.02.04 b
(d) Providing various MIS reports to Central and State manner of utilization of ITC]
Governments, providing analysis on tax payer’s MCQ 01.07.14.00 01.03.05 a
profile, running the matching engine, reversal TT Pvt. Ltd., registered in Rajasthan, furnished
and reclaim of Input tax credit following information for the month of June: (i) 01.04.06 c
Inter-State sale of goods for ` 1,25,000 to JJ
01.05.07 b
07. Credit system under Dual GST Model & Enterprises registered in Haryana (ii) Inter-State
Manner of Credit Utilization:- purchases of goods from XYZ company, registered in 01.05.08 b
MCQ 01.07.11.00 Punjab, for ` 40,000 (iii) Intra-State purchases of
Whether IGST revenue is to be apportioned to state? goods from RR Traders, registered in Rajasthan, for ` 01.06.09 a
(a) No 65,000 The applicable rate of GST is 18%. All the
01.06.10 c
(b) Yes- apportioned to origin state above amounts are exclusive of taxes. GST liability
(c) Yes- apportioned to destination state payable in cash is- (CA Inter RTP Nov 2020) [ICAI 01.07.11 c
(d) Discretion of Parliament Material]
[Hint:- GST being destination based tax- it is (a) CGST ` 1,800 & SGST ` 1,800 01.07.12 c
received by state where the goods &/or services are (b) SGST ` 3,600
01.07.13 d
consumed] (c) IGST ` 3,600
(d) CGST ` 3,600
INDEX
Pg.No. No. Illus.
1 Definition of Goods, Services, Exempt Supply & Works Contract & Related Questions 6 5
2 Section 7(1)(a):- Supply for consideration in the course or furtherance of business 6 3
3 Section 7(1)(c) read with Schedule I:- Activities to be treated as supply even if made without consideration 7 8
4 Section 7(1A) read with Schedule II:- Activities to be treated as supply of goods or supply of services (Classification 8 3
as ‘supply of goods’ or ‘supply of services’)
5 Section 7(2)(a) read with Schedule III:- Activities treated neither as supply of goods nor supply of services 8 3
6 Combined Questions on Section 7 read with Schedule I, II and III 9 2
7 Section 2(30):- Composite Supply, 2(74):- Mixed Supply & & Section 8:- their classification 9 2
8 Important Clarifications 10 1
Total No. Of Illustrations 27
2 Examination Q. -
3 Rtp & MTP Q. 01.01/ 01.02/ 03.10/ 03.16/05.22/ 5
4 Other Q. 01.03/ 02.07/ 02.08/ 03.09/ 03.11/ 03.12/ 03.14/ 04.18/ 04.19/ 05.20/ 07.25/ 07.27 12
Total No. of Illustrations 27
& Works Contract & Related Questions:- d) All of the above. b) No, as transaction is not in course or furtherance of
MCQ 02.01.01.00 Goods as per section 2(52) of the (Hint: Refer Sec 2(102) ) business
CH. 2 CGST Act, 2017 includes: MCQ 02.01.04.00 c) Yes, in some cases as per proper officer
(i) Actionable claims An exempt supply includes- d) None of the above
Levy of GST & Concept of Supply
(ii) Growing crops attached to the land agreed to (I) Supply of goods or services or both which (Hint: Refer Sec 7(1) (a))
be severed before supply. attracts Nil rate of tax MCQ 02.02.07.00 Mr. A is a well-known singer. He
(iii) Money (ii) Non-taxable supply receives a life-time achievement award which consist
(iv) Securities [RTP May 21] [ICAI Material] (iii) Supply of goods or services or both which are of a memento and a cheque of ` 10,00,000. It is:
(a) (i) and (iii) (b) (iii) and (iv) wholly exempt from tax under section 11 of the a) Supply and chargeable to GST
(c) (i) and (ii) (d) (ii) and (iii) CGST Act or under section 6 of IGST Act [ICAI b) Supply but not chargeable to GST
(Hint: Refer Sec 2(52)) Material] c) Not supply and hence not chargeable to GST
MCQ 02.01.02.00 Which of the following is not (a) (i) (b) (i) and (ii) d) None of the above.
considered as 'goods' under the CGST Act, 2017? (c) (ii) and (iii) (d) (I), (ii) and (iii) (Hint: this money is not to be treated as Consideration
[ICAI Material] [CA Inter MTP 19] (Hints: Refer Sec 2(47)) for any specific activity. Hence not a supply).
(i) Ten-paisa coin having sale value of ₹ 100. MCQ 02.01.05.00
(ii) Shares of unlisted company Which of the following is treated as exempt supply
MCQ 02.02.08.00 Mr. Amar, being a managing
(iii) Lottery tickets under the CGST Act, 2017? [ICAI Material]
director of Alpha Project Pvt. Ltd. made gifts to his
(a) (I) (b) (ii) (i) Sale of liquor
employees worth of INR 60,000 each for assisting in
(c) (ii) and (iii) (d) (i), (ii) and (iii) (ii) Supply of health care services by a hospital
the architectural work of his house. Does the same
[Hint:- Refer Sec 2(52)] (iii) Transmission of electricity by an electricity
be considered as supply?
MCQ 02.01.03.00 Which of the following activities transmission utility
a) Yes, since the value of gift exceeds the provided
will be considered as a supply of service ? (a) (i) (b) (ii)
limit of INR 50,000
a) Mr A borrows an amount of ` 1, 50,000 from one (c) (ii) and (iii) (d) (i), (ii) and (iii)
b) No, since the gift is not made in course or
of his relative Mr Q and agrees to repay the (Hints: Refer Sec 2(47))
furtherance of business
entire amount with interest after a year. c) As per the option of appropriate authority
b) M/s Raj enterprises applied for loan from SBI 02. Section 7(1)(a):- Supply for consideration d) Either b or c above
Bank against which a processing fees and in the course or furtherance of business (Hint: Refer sec 7(1), not a supply as it is not in the
interest is charged by the bank MCQ 02.02.06.00 After using a car for personal course of business.)
c) Mr H exchanged INR against purchase of US $ purpose for a year, an individual sells it to a car dealer.
Is this supply under GST Act? [ICAI Material]
(iv) Mr. A uses the said service for personal purposes of the CGST Act, 2017? (c) (i) and (iii)
and does not pay any consideration for the same (i) AB & Associates (Registered under GST) (d) (i), (ii) and (iii)
and is also a partner in IT Star Consultants transfers stock of goods from its Mumbai (Hint: Refer Para 1 of Schedule II)
(v) Mr. A uses the said service for business purposes branch to Kolkata depot for sale of such goods MCQ 02.04.18.00 Supply of food or drink items in a
and does not pay any consideration for the same at the depot. restaurant as per CGST Act is ------------
and is also a partner in IT Star Consultants (ii) Mr. Raghuveer, a dealer of air-conditioners a) Supply of goods b) Supply of service
a) (i), (ii), (v) b) (ii), (iii) and (v) permanently transfers the motor vehicle free c) not a supply under GST d) none of the above
c) (iii), (iv) d) (iii), (iv) and (v) of cost. ITC on said motor vehicle is blocked. (Hint: Refer Para 6(b) of Schedule II )
(Hint: Refer Sec 7 (1) (b) and Para 4 of Schedule I) (iii) Mrs. Riddhi, an employee of Sun Ltd., received
MCQ 02.03.15.00 Which of the following services gift from her employer on the occasion of MCQ 02.04.19.00 ABC Ltd. offers a software to
received, in the course or furtherance of business, Diwali worth ` 21,000. [ RTP Nov 21] businesses for smooth processing of returns and
without consideration amount to supply? [ICAI (a) (I) (b) (ii) accounts. Such software shall be considered as:
Material](CA Inter MTP 19) (c) (iii) (d) Both (i) and (ii) a) Supply of Goods b) Supply of Services
(i) Import of services by a person in India from his (Hint: Refer Schedule I ) c) Does not qualify as supply
son well-settled in USA d) None of the above
(ii) Import of services by a person in India from his 04. Section 7(1A) read with Schedule II:- (Hint: Refer para 5(d) of schedule II- here,
brother well settled in Germany Activities to be treated as supply of goods software is as per customer's requirement for smooth
(iii) Import of services by a person in India from his or supply of services (Classification as ‘supply processing i.e. customised)
brother (wholly dependent on such person in of goods’ or ‘supply of services’)
India) in France MCQ 02.04.17.00 Which of the following activities is 05. Section 7(2)(a) read with Schedule III:-
a supply of services? [ICAI Material] Activities treated neither as supply of goods
(iv) Import of services by a person in India from his
(i) Transfer of right in goods/ undivided share in nor supply of services
daughter (wholly dependent on such person in
India) in Russia goods without transfer of title in goods MCQ 02.05.20.00 Ram has received a sum of `
(a) i, iii and iv (b) ii, iii and iv (ii) Transfer of title in goods 5,00,000 from his employer on premature termination
(c) ii and iii (d) i and ii (iii) Transfer of title in goods under an agreement of his contract of employment. The GST implication
(Hint: Refer Sec 7(1) (b) & Para 4 of Schedule I) will be: