Indirect Taxes GST MCQs (TYBCom Sem VI )

Multiple Choice Questions 57 Pages

University of Mumbai

bachlor of commerce

VDC

Contributed by

Veena Dhanush Chandran

Manan Prakashan 1
CHAPTER - 1 : INTRODUCTION [S. 1]
MULTIPLE CHOICE QUESTIONS
1. GST Stands for
(a) Goods and Supply Tax (b) Government Sales Tax
(c) Goods and Services Tax (d) Good and Simple Tax
2. GST is levied in India on the basis of
Principle.
(a) Origin (b) Destination
(c) Either a or b (d) Both a or b
3. The main objective of GST implementation is
.
(a) To consolidate multiple indirect tax levies into single tax
(b) Overcoming limitation of existing indirect tax structure
(c) Creating efficiencies in tax administration
(d) All of above
4. Which of the following is not a bill passed by parliament for the implementation of GST in India?
(a) The Central GST Act, 2017 (b) The State GST Act, 2017
(c) The Integrated GST Act, 2017 (d) None of above
5.
Petroleum products have been temporarily been kept out of GST..
(a) One (b) Two
(c) Three (d) Five
6. In India, GST structure is
in nature.
(a) Single (b) Dual
(c) Triple (d) (a) & (b) both
7. GST is not levied on which of the following ?
(a) Alcoholic Liquor for Human Consumption (b) Five Petroleum Products
(c) Immovable Property (d) All of above
8. GST is not levied on which of the following ?
(a) Motor Spirit (b) High speed diesel
(c) Natural gas (d) All of above
9.
is levied on Intra-State Supply of goods and/or Services.
(a) CGST (b) SGST
(c) IGST (d) Both a & b
10.
is levied on Inter State Supply of Goods and/or Services.
(a) CGST (b) SGST
(c) IGST (d) Both a & b
11.
is levied on Intra State Supply of Goods and/or Services in Union Territory..
(a) SGST (b) IGST
(c) UTGST (d) GST is not levied
12. Goods and Services Tax is a tax levied on goods and services imposed at each point of
.
(a) Sale (b) Service
(c) Supply (d) Manufacturing
13. GST is a national level tax based on
.
(a) First point tax principle (b) Value Added principle
(c) Last point tax principle (d) All of the above
14. The following tax has been subsumed into Central GST.
(a) Central Sales Tax (b) Custom Duty
(c) Service Tax (d) All of the above
15. GST was introduced in India on
(a) 1-4-2017 (b) 1-5-2017
(c) 1-6-2017 (d) 1-7-2017
T.Y.B.COM. - INDIRECT TAXES - GST
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2 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
16. Indian GST model has tier rate structure.
(a) 3 (b) 4
(c) 5 (d) 6
17. What does ‘I’ stands for in IGST?
(a) International (b) Internal
(c) Integrated (d) Intra
18. Which of the following tax is not subsumed in GST ?
(a) VAT (b) Stamp Duty
(c) Entry Tax (d) Entertainment Tax
19. HSN Code Stands for
(a) Home Shopping Network (b) Harmonised System of Nomenclature
(c) Harmonised System Number (d) Home State Number
20. Alcoholic liquor for Human Consumption is subject to -
(a) CGST (b) SGST
(c) IGST (d) None of the above
21. Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural
gas and aviation turbine fuel have been kept out of GST
.
(a) Permanently (b) Temporarily
(c) For one year (d) None of the above
22. The items which will be taxable both under Central Excise Law and the GST even after the
implementation of the GST Act.
(a) Motor spirit (b) Tobacco and Tobacco Products
(c) Alcoholic liquor for human consumption (d) Natural Gas
23. On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol), Natural
Gas, and Aviation Turbine Fuel:
(a) GST will never be levied at all
(b) GST will be levied from a date to be notified on the recommendations of the GST Council
(c) GST will be levied, but it will be exempt
(d) None of the above
24. Supply of the following is not liable to GST
.
(a) Alcoholic liquor for industrial consumption
(b) Alcoholic liquor for medicinal consumption
(c) Alcoholic liquor for human consumption
(d) Alcoholic liquor for animal consumption
25. GST is a comprehensive tax regime covering
.
(a) Goods (b) Services
(c) Both goods and services (d) None of the above
26. Which of the following taxes have been subsumed under GST ?
(1) Central Excise Duty (2) Service Tax
(3) VAT (4) Luxury Tax
Select the correct answer from the options given below
(a) (1) & (2) etc. (b) (3), (1) & (2)
(c) All of the above (d) None of the above
27. GST is a comprehensive tax regime covering
.
(a) Goods (b) Services
(c) Both goods and services (d) Goods, services and imports
28. Goods and Services Tax is a tax levied on goods and services imposed at each point of
(a) Demand (b) Cash sale
(c) Supply (d) Manufacturing
29. The CGST Act, 2017 extends to
(a) Whole of India excluding the State of Jammu & Kashmir
(b) Whole of India
(c) Whole of India excluding the State of Jammu & Kashmir and Union territories
(d) Whole of India excluding the State of Jammu & Kashmir but including Union territories
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Manan Prakashan 3
ANSWERS
1. (c) 6. (b) 11. (c) 16. (b) 21. (b) 26. (c)
2. (b) 7. (d) 12. (c) 17. (c) 22. (b) 27. (c)
3. (d) 8. (d) 13. (b) 18. (b) 23. (b) 28. (c)
4. (b) 9. (d) 14. (d) 19. (b) 24. (c) 29. (b)
5. (d) 10. (c) 15. (d) 20. (d) 25. (c)
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4 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
CHAPTER - 2 : DEFINITIONS [S. 2]
MULTIPLE CHOICE QUESTIONS
A. Recipient [Section 2(93)]
1. P Ltd. has a contract with X Ltd. to provide book keeping services to Q Ltd. Q Ltd. is a subsidiary
of P Ltd. The liability to discharge consideration for such book keeping service is of P Ltd. As per
the CGST Act, 2017, who will be the recipient of the above service?
(a) P Ltd. (b) Q Ltd.
(c) X Ltd. (d) Both (a) and (b)
B. Goods [Section 2(52)]
2. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass (b) Money and securities
(c) Actionable claims (d) Growing crops
3.
is not included in the term “Goods” under GST Law:
(a) Movable Property (b) Actionable Claim
(c) Securities (d) Growing Crops
4. Which of the following is not covered under the term “Goods” under GST ?
(a) Money (b) Actionable Claim
(c) Securities (d) Both (a) & (c)
5. As per the CGST Act, 2017, "business" includes :
(i) Adventure not for a pecuniary benefit
(ii) Any activity or transaction undertaken by the Central Government, a State Government or
any local authority in which they are engaged as public authorities.
(a) (ii) only (b) Both (i) and (ii)
(c) Neither (i) nor (ii) (d) (i) only
6. Which of the following can be treated as "goods" under the CGST Act, 2017 ?
(i) Movable Property
(ii) Money and Securities
(iii) Actionable Claim
Select the correct answer from the options given below :
I II III
(a) ✔✕✔
(b) ✕✔✔
(c) ✕✔✕
(d) ✔✕✕
7. Securities are excluded from the definition of
.
(a) Goods (b) Services
(c) Both (a) and (b) (d) Neither (a) nor (b)
8. Money is
.
(a) Specifically included in the definition of goods
(b) Specifically included in the definition of services
(c) Specifically excluded from the definition of goods as well as services
(d) None of the above
9. Actionable Claims are
.
(a) Specifically included in the definition of goods
(b) Specifically included in the definition of services
(c) Specifically excluded from the definition of goods as well as services
(d) Specifically excluded from the definition of goods only
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Manan Prakashan 5
C. Non-Taxable Supply [Section 2(78)]
10. Which of the following is a non–taxable supply under the CGST Act, 2017 ?
(a) Supply of goods not leviable to tax under the CGST Act, 2017
(b) Supply of services not leviable to tax under the CGST Act, 2017
(c) Supply which is neither a supply of good nor a supply of service.
(d) Both (a) and (b)
ANSWERS
1. (a) 3. (c) 5. (b) 7. (c) 9. (a)
2. (b) 4. (d) 6. (a) 8. (c) 10. (d)
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6 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
CHAPTER - 3 : SCOPE OF SUPPLY [S. 7 - 8]
MULTIPLE CHOICE QUESTIONS
A. Scope of Supply (Section 7)
1. What are different types of supplies covered under the scope of supply?
(a) Supplies made with consideration (b) Supplies made without consideration
(c) Both of the above (d) None of the above
2. The activities to be treated as supply of goods or supply of services as referred to in
of
CGST Act, 2017.
(a) Schedule I of CGST Act (b) Schedule II of CGST Act
(c) Schedule III of CGST Act (d) Section 7
3. Which of the following taxes will be levied on Imports?
(a) CGST (b) SGST
(c) IGST (d) None of the above
4. 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
5.
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
6. 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
7. 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
8. Supply includes import of services for a consideration
.
(a) Only if in the course or furtherance of business
(b) Only if not in the course or furtherance of business
(c) Whether or not in the course or furtherance of business
(d) None of the above
9.
specifies the activities which are neither to be treated as supply of goods nor a supply
of services.
(a) Schedule I of CGST Act (b) Schedule II of CGST Act
(c) Schedule III of CGST Act (d) All of the above
10. Activities or transactions undertaken by the Central Government, a State Government or any
local authority in which they are engaged as public authorities, as may be notified by the
Government on the recommendations of the Council, shall treated as
.
(a) Supply of goods (b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
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Manan Prakashan 7
11. Transfer of the title in goods shall be considered as .
(a) Supply of goods (b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
12. Transfer of right in goods or of undivided share in goods without the transfer of title thereof shall
be considered as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
13. Transfer of title in goods under an agreement which stipulates that property in goods shall pass
at a future date upon payment of full consideration as agreed shall be considered as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
14. Lease, tenancy, easement, licence to occupy land shall be considered as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
15. Lease or letting out of the building including a commercial, industrial or residential complex for
business or commerce, either wholly or partly shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
16. Any treatment or process which is applied to another person’s goods shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
17. Where goods forming part of the assets of a business are transferred or disposed of by or under
the directions of the person carrying on the business so as no longer to form part of those
assets, whether or not for a consideration, such transfer or disposal is a
by the person.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
18. Where, by or under the direction of a person carrying on a business, goods held or used for the
purposes of the business are put to any private use or are used, or made available to any person
for use, for any purpose other than a purpose of the business, whether or not for a consideration,
the usage or making available of such goods is a
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
19. Renting of immovable property is
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
20. Construction of a complex, building, civil structure or a part thereof, including a complex or
building intended for sale to a buyer, wholly or partly, except where the entire consideration has
been received after issuance of completion certificate, where required, by the competent authority
or after its first occupation, whichever is earlier, shall be treated as
.
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8 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
21. Temporary transfer or permitting the use or enjoyment of any intellectual property right shall be
treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
22. Development, design, programming, customisation, adaptation, upgradation, enhancement,
implementation of information technology software shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
23. Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act
is
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
24. Transfer of the right to use any goods for any purpose (whether or not for a specified period) for
cash, deferred payment or other valuable consideration shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
25. Works contract as defined in section 2 (119) shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
26. Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being
food or any other article for human consumption or any drink (other than alcoholic liquor for
human consumption), where such supply or service is for cash, deferred payment or other valuable
consideration is
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
27. Supply of goods by any unincorporated association or body of persons to a member thereof for
cash, deferred payment or other valuable consideration shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
28. Services by an employee to the employer in the course of or in relation to his employment is
.
(a) Supply of goods (b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
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Manan Prakashan 9
29. Services by any court or Tribunal established under any law for the time being in force is .
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
30. The functions performed by the Members of Parliament, Members of State Legislature, Members
of Panchayats, Members of Municipalities and Members of other local authorities shall be treated
as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
31. The duties performed by any person who holds any post in pursuance of the provisions of the
Constitution in that capacity shall be considered as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
32. The duties performed by any person as a Chairperson or a Member or a Director in a body
established by the Central Government or a State Government or local authority and who is not
deemed as an employee before the commencement of this clause shall be considered as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
33. Services of funeral, burial, crematorium or mortuary including transportation of the deceased
shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
34. Actionable claims, other than lottery, betting and gambling shall be treated as
.
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services
35. Gifts not exceeding
in value in a financial year by an employer to an employee shall not
be treated as supply of goods or services or both.
(a) 50,000 (b) 1,00,000
(c) 2,00,000 (d) 2,50,000
36. The
shall be treated as supply even if made without consideration
(a) Permanent transfer or disposal of business assets where input tax credit has been availed
on such assets.
(b) Permanent transfer or disposal of business assets where input tax credit has NOT been
availed on such assets.
(c) Both of the above
(d) None of the above
37. The
shall be treated as supply even if made without consideration
(a) Supply of goods by a principal to his agent where the agent undertakes to supply such goods
on behalf of the principal;
(b) Supply of goods by an agent to his principal where the agent undertakes to receive such
goods on behalf of the principal.
(c) Both of the above
(d) None of the above
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10 Indirect Taxes - Goods and Services Tax Act (T.Y.B.Com.: SEM-VI)
38. The shall be treated as supply even if made without consideration.
(a) Supply of goods by a principal to his agent where the agent undertakes to supply such goods
on behalf of the principal;
(b) Supply of goods by an agent to his principal where the agent undertakes to receive such
goods on behalf of the principal.
(c) Permanent transfer or disposal of business assets where input tax credit has been availed
on such assets
(d) All of the above
39. Import of services by a taxable person from a related person or from any of his other establishments
outside India, in the course or furtherance of business shall
.
(a) Supply of services
(b) Not to be treated as supply of service
(c) Be treated as supply even when made without consideration
(d) None of the above
40. Which of the following is - the supply in which possession of the goods are transferred but the
title on the same will be transferred at the future date?
(a) Rent a car
(b) Hire Purchase
(c) Normal sale of goods
(d) None of the above
41. Which of the following is - the supply in which possession of the goods are transferred but the
title of the goods is not transferred at all and thereby attains the character of the supply of
service ?
(a) Rent a car (b) Hire Purchase
(c) Normal sale of goods (d) None of the above
42. Suppose XYZ Ltd has a license to operate a particular business venture but he refrains from
operating such business venture after an agreement with other business houses in the same
line of business against receiving certain amount. Is this a supply of service?
(a) Yes (b) No
(c) Exempted (d) None of the above
43. Which of the following is the supply even if made without consideration?
(a) Stock transfer out to another state
(b) Temporary application of business asset for a non-business needs
(c) Free transfer of business asset
(d) All of the above
B. Tax Liability on Composite and Mixed Supplies (Section 8)
44. What are the factors differentiating composite supply & mixed supply?
(a) Nature of bundling i.e. artificial or natural
(b) Existence of principal supply
(c) Both of the above
(d) None of the above
45. What would be the tax rate applicable in case of composite supply?
(a) Tax rate as applicable on principal supply
(b) Tax rate as applicable on ancillary supply
(c) Tax rate as applicable on respective supply
(d) None of the above
46. What would be the tax rate applicable in case of mixed supply?
(a) Tax rate as applicable on supply attracting the lowest rate of tax
(b) Tax rate as applicable on supply attracting the highest rate of tax
(c) Tax @ 28%
(d) None of the above
Page 10

Indirect Taxes GST MCQs (TYBCom Sem VI )

Indirect Taxes GST MCQs (TYBCom Sem VI )

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