CA Foundation Exam June 2023 » CA MCQs » GST

GST

MCQs on "GST": Find the multiple choice questions on "GST", frequently asked for all competitive examinations.

One of the essential subjects in accounting is the Goods and Services Tax, or GST. It provides information on the tax that is applied to the cost of the product. The GST would be a value-added tax applied on most products and services purchased. Important GST MCQs are listed below to test your knowledge of the subject. For your convenience, the responses are also provided.

1. IGST is billed as soon as the stock is ……..

    1.  Federal
    2. Intra- UT
    3.  Intra-state
    4.  All of the above

  Answer: A

2. The highest CGST rate legally permitted for intrastate supplies is…..

    1.  18%  
    2.  40%  
    3. 20%
    4.  28%+cess

  Answer: B

3. Which one of the below taxes is included in the GST?

    1.  Central sales tax
    2.  Central excise duty
    3. VAT 
    4.  All of the above

Answer: D

4. GST is imposed on the production of all services and goods, except…..

    1. Liquor intended for human ingestion 
    2. Tobacco
    3. Health care service 
    4. All of the above.

Answer: A

  1. The products & services networking (GSTN) performs the following activities…
    1. Facilitating registration
    2. Returning the package to the federal and state governments.
    3. GST calculation and settlement
    4. All of the above

Answer: D

  1. The term total revenue would not include the following items:
    1. Inward deliveries that are taxed on an effective payment basis
    2. Exempt supplies
    3. Export of goods or services or both
    4. Persons with the very same PAN address supplying across state lines

Answer: A

  1. Which of the below are GST’s advantages?
  1. Establishment of a single national market
  2. Strengthening the ‘Make in India’ program
  3. Lessening the burden of conformity on taxpayers
  4. Increase in government revenue
  5. Dual taxation, as well as double taxation, are eliminated.

Select the appropriate answer from the choices below.

    1. 1, 3, 4, and 5 are the first, third, fourth, and fifth numbers.
    2. 2, 3, 4 & 5
    3. 1, 2, 4 and 5
    4. 1, 2, 3, 4 and 5

 Answer: C

  1. What below would be included in the description of “Goods” under article 2(52) of the CGST Act, 2017?

I) Money

II) Actionable claim

III) Security

IV) Growing crops

Choose the correct choice from the list below.

    1. IV only
    2. II & III
    3. II & IV
    4. I & II

Answer: C

9) A supplier that consists of two or even more services would be classified as the provision that describes the variables that are subject to a higher rate of taxation.

    1. Composite
    2.  Mixed
    3.  Both (a) and (b) 
    4.  None of the above 

Answer: B

  1. GST stands for Goods and Services Tax, and it is a tax system that covers a wide range of
    1. Goods
    2. Services
    3. Goods, companies and imports
    4. Products, systems, and exports

Answer: C

11. What duties are taxes on intra-State supplies?

    1. CGST 
    2.  SGST
    3.  CGST and SGST 
    4.  IGST

Answer: C

  1. Who will announce the rate of taxation to be imposed underneath the CGST Act?
    1. The Federal Government
    2. State Administration
    3.  GST Commission 
    4.  Central And state, following the GST Council’s proposals

Answer: D

13. Which of the below import duties would be imposed?

    1.  CGST 
    2. SGST 
    3.  IGST 
    4.  CGST and SGST

Answer: C

  1. Which one of the following does not contribute to overall revenue?
    1. Goods or trade supplies that are exempt, or both
    2. Export of commodities, services, or a combination of the two
    3.  Supply of commodities or services between states, or both
    4.  The value of inbound services on which reverse fee tax is charged

Answer: D

15 . The IGST Act of 2017 covers the whole country.

    1.  India as a whole, except Jammu and Kashmir.
    2.  India as a whole
    3. India as a whole, except Jammu and Kashmir and Pondicherry.
    4.  None of the preceding

Answer: B

16 . In the event of an advance charge, how long does it take for products to be delivered?

    1. The invoice’s period of issuance
    2.  The invoice must be issued by the due date. 
    3.  Date on which the provider receives payment 
    4.  The earlier of (a) and (b)

Answer: D

17 . When a provider opts for the component levy within Article 10 of its CGST Act, 2017, when is the date of delivery of goods?

    1.  The invoice’s date of issuance
    2.  Date on which the provider receives payment
    3.  Synthesis of (a) and (b)
    4. The earlier of (a) and (b) 

Answer: D

18 . What is the timing of voucher provision when the supply may be traced back to the voucher?

    1.  The date on which the voucher could be issued
    2.  The date on which the coupon must be redeemed
    3. Earlier of (a) and (b)
    4. whichever of (a) and (b) comes first

Answer: A

19 . When the administration of certificates concerning the coupon is not recognizable, what is the supply period?

    1.  The date on which the voucher was issued
    2. The date on which the coupon must be redeemed
    3. Earlier of (a) and (b)
    4.  whichever of (a) and (b) comes first

Answer: B

20 . What is the period of service delivery if the payment is received within days of the date of the health system?

    1. The invoice’s date of issuance
    2. The time on which the provider is paid
    3.  The date on which the service was rendered
    4.  The earlier of (a) and (b)

Answer: D

21 . When resources are acquired from an affiliated firm situated beyond India, what would be the timing of service delivery?

    1.  The date on which the services were entered into the recipient’s accounting record.
    2. Payment due date
    3.  The earlier of (a) and (b)
    4. The date on which the services were entered into the customer’s records.

Answer: C

22 . The term time of provision refers 

    1.  The point at which the GST gets compensated by the products or service provider.
    2.  The moment at which GST would be paid after the seller of services and goods has taken input credit.
    3. The moment at which products are judged to have been produced or services are assessed to have been rendered
    4.  The date on which a provider of services and goods files a GST return.

Answer: C

23 . When a provider is obligated to pay tax under the advance charge and the bill does not become given within the specified timeframe under section 31(2), when is the delivery time of services?

    1. The invoice’s date of issuance
    2. The date on which the services will be completed
    3. Date of the deposit slip
    4. The day the service is completed or when profit is earned, whichever comes first.

 Answer: D

24 . What is the estimated delivery time for service imports?

    1. The date on which the services were entered into the recipient’s books of account.
    2. Payment due date.
    3. 61st day after the invoice date.
    4. Both (a) or (b)
    5. (b) or (c), whichever date is earlier.

Answer: E

25 . Which one of the below will not be added to supply value?

    1. GST
    2. Interest
    3. Late fee
    4. Commission

Answer: A

  1. The following items should be included in the supply value:
    1. Any non-GST taxes, levies, cesses, or fees levied by the supplier independently.
    2. Interest, late fees, or penalties for failure to pay any compensation for any shipment on time.
    3. Subsidies that are directly proportional to the price, except subsidies granted by the federal and provincial governments.
    4. All of the above.

Answer: D

27 . The following is the value of service under Article 15(1):

    1. Wholesale cost
    2. Market price
    3. Retail price maximum.
    4. The amount of the transaction

 Answer: D

28 . Which one of the following items is included in the transaction cost?

1) GST compensation surcharge 

2) Payments were made by the receiver on behalf of the provider to third parties in connection with the supply 

3) A municipal government-imposed entertainment tax 

4) Fees paid to a representative and recouped from the beneficiary

5) Inspection fees at the recipient’s location 

6) Charges for late payment are waived by the provider. Choose the right answer from the following options:

Select the appropriate answer from the choices below. 

    1.  1, 2, 3, 4, and 5
    2.  2, 3, 4, 5 & 6
    3. 2, 3, 4 & 5
    4. All of the above

Answer: D

29 . When may the value of the transaction get discounted from the supplying value calculation?

    1. When the parties to a contract are connected, price isn’t the only factor to consider.
    2. When the parties to the contract are linked or when affordability is not the only factor.
    3. It could not be turned down.
    4. When the items are sold with relatively little gross margins.

Answer: B

30 . What reductions from the transaction cost are permitted?

    1. Customer discounts, subject to terms and restrictions.
    2. Packing Fees, subject to terms and restrictions.
    3. Amount paid on the authority of the provider by the customer, subject to requirements.
    4. Freight expenses are borne by the provider in connection with CIF response to demand, subject to certain restrictions.

Answer: A