Goods and Services Tax - introduction to GST, CGST, SGST, UTGST, IGST, taxable event, consideration, levy and collection of GST, exemptions from GST, place and time of supply, value of taxable supply, input tax credit - Question Bank

1. The place of supply for services provided remotely to a recipient located in India is generally:
A) The supplier's location
B) The recipient's location
C) The location where the service is performed
D) The location where payment is received
2. Which of the following is NOT an essential component of a valid tax invoice under GST?
A) Name and address of the supplier and recipient
B) HSN/SAC code of the goods/services
C) Signature of the recipient
D) GSTIN of the supplier
3. What is the primary objective of GST in India?
A) To increase the tax burden on consumers
B) To create a single, unified market by removing cascading tax effects
C) To increase the number of tax laws
D) To encourage tax evasion
4. Input Tax Credit on capital goods can be availed:
A) In full in the month of purchase
B) Over a period of 5 years
C) Over a period of 12 months
D) Only after 2 years
5. Zero-rated supplies include:
A) Exports of goods and services
B) Supplies to SEZs
C) Both (a) and (b)
D) Only domestic supplies
6. Which of the following is NOT a type of supply under GST?
A) Exempt supply
B) Zero-rated supply
C) Non-taxable supply
D) Taxable supply
7. When can a person voluntarily obtain GST registration?
A) Only after crossing the threshold limit
B) Even if the turnover is below the threshold limit
C) Never, registration is mandatory
D) Only for exports
8. The concept of 'apportionment of input tax credit' is related to:
A) Place of supply
B) Time of supply
C) Usage of inputs for taxable, exempt, and non-business supplies
D) Value of supply
9. Which of the following is an example of a supply attracting Reverse Charge Mechanism?
A) Purchase of goods from a registered supplier
B) Purchase of services from a registered supplier
C) Purchase of goods/services from an unregistered supplier by a registered person (certain categories)
D) Sale of goods to an unregistered person
10. A 'Reverse Charge Mechanism' (RCM) means:
A) The supplier pays the GST
B) The recipient pays the GST
C) The government pays the GST
D) No GST is payable
11. The maximum rate of IGST that can be recommended by the GST Council is:
A) 18%
B) 28%
C) 40%
D) 50%
12. The GST Council is chaired by:
A) Prime Minister of India
B) Finance Minister of India
C) Governor of Reserve Bank of India
D) President of India
13. The Constitution (One Hundred and First Amendment) Act, 2016 paved the way for:
A) Implementing Income Tax
B) Implementing GST
C) Implementing Corporate Tax
D) Implementing Property Tax
14. Which tax was subsumed by GST on most goods?
A) Octroi
B) VAT
C) Service Tax
D) Income Tax
15. Which tax was subsumed by GST on services?
A) Excise Duty
B) VAT
C) Service Tax
D) Customs Duty
16. Which of the following is considered a 'supply' under GST?
A) Sale of goods
B) Lease of goods
C) Transfer of title of goods
D) All of the above
17. The GST identification number (GSTIN) is a:
A) 15-digit alphanumeric number
B) 10-digit numeric number
C) 16-digit alphanumeric number
D) 12-digit alphanumeric number
18. A supply made by a registered person to an unregistered person in a different state attracts:
A) CGST and SGST
B) IGST
C) Only CGST
D) No tax
19. A supply made by a registered person to an unregistered person within the same state attracts:
A) IGST
B) CGST and SGST
C) Only CGST
D) Only SGST
20. Which entity is responsible for administering SGST?
A) Central Government
B) State Government
C) Union Territories
D) Reserve Bank of India
21. Which entity is responsible for administering CGST?
A) State Government
B) Central Government
C) Union Territories
D) Local Municipalities
22. GST is levied on:
A) Goods only
B) Services only
C) Goods and services
D) Only on luxury goods
23. What is the threshold limit for registration under GST for most states in India?
A) ₹10 Lakhs
B) ₹20 Lakhs
C) ₹40 Lakhs
D) ₹50 Lakhs
24. ITC cannot be claimed on:
A) Capital goods
B) Services
C) Motor vehicles purchased for a business of trading in them
D) Raw materials
25. Which of the following conditions must be met to claim ITC?
A) Possession of invoice or debit note
B) Goods or services have been received
C) Supplier has paid the tax to the government
D) All of the above
26. ITC is available for which of the following?
A) Goods and services used for non-business purposes
B) Goods and services used for taxable supplies
C) Goods and services used for exempted supplies
D) Goods and services used for personal consumption
27. Which section of the CGST Act deals with Input Tax Credit?
A) Section 15
B) Section 16
C) Section 17
D) Section 18
28. Input Tax Credit (ITC) refers to:
A) Tax paid by the end consumer
B) Tax paid on inputs that can be set off against the output tax liability
C) Tax levied on exported goods
D) Tax exempted by the government
29. The 'value of taxable supply' is the:
A) Price of goods only
B) Price of services only
C) Total amount charged by the supplier for the supply, excluding GST
D) Amount paid by the recipient irrespective of the invoice
30. For supply of services, the time of supply is generally the earlier of:
A) Date of invoice or date of completion of service
B) Date of booking or date of payment
C) Date of communication or date of approval
D) Date of contract or date of commencement
31. For supply of goods, the time of supply is generally the earlier of:
A) Date of invoice or date of payment
B) Date of dispatch or date of receipt
C) Date of contract or date of delivery
D) Date of registration or date of audit
32. The 'time of supply' determines:
A) The taxable person
B) The point in time when GST liability arises
C) The place of supply
D) The value of supply
33. For a supply of services, the place of supply is generally the:
A) Location of the service provider
B) Location of the service recipient
C) Location where the service is consumed
D) Location where the invoice is issued
34. For a supply of goods, the place of supply is generally the:
A) Location of the supplier
B) Location of the recipient
C) Location where the goods are physically located at the time of supply
D) Location where the payment is made
35. The 'place of supply' determines:
A) Who collects the GST
B) The rate of GST
C) The value of supply
D) The date of supply
36. Which of the following is generally considered an exempt supply under GST?
A) Legal services
B) Accounting services
C) Basic education services
D) Consultancy services
37. Exemptions from GST are provided under which section of the CGST Act?
A) Section 11
B) Section 16
C) Section 17
D) Section 9
38. GST aims to consolidate which of the following taxes?
A) Income Tax, Corporate Tax
B) VAT, Service Tax, Excise Duty
C) Property Tax, Stamp Duty
D) Customs Duty, Octroi
39. Which of the following is NOT a component of GST?
A) CGST
B) SGST
C) Customs Duty
D) IGST
40. Levy and collection of GST are governed by which Act?
A) Income Tax Act, 1961
B) Companies Act, 2013
C) Central Goods and Services Tax Act, 2017
D) Negotiable Instruments Act, 1881
41. Consideration for supply under GST means:
A) Any payment made in cash
B) Payment made in kind only
C) Payment made or promised, whether in money or otherwise, for the supply of goods or services
D) Only the value of goods supplied
42. The 'taxable event' under GST is:
A) Manufacture of goods
B) Provision of services
C) Supply of goods or services
D) Import of goods
43. Which tax is levied on interstate supply of goods or services?
A) CGST
B) SGST
C) UTGST
D) IGST
44. IGST stands for:
A) Integrated Goods and Services Tax
B) Interstate Goods and Services Tax
C) Internal Goods and Services Tax
D) India Goods and Services Tax
45. UTGST is levied on taxable supplies within:
A) States
B) Union Territories
C) Metropolitan Cities
D) Rural Areas
46. SGST stands for:
A) State Goods and Services Tax
B) Sales Goods and Services Tax
C) Service Goods and Services Tax
D) Standard Goods and Services Tax
47. CGST stands for:
A) Central Goods and Services Tax
B) Consumer Goods and Services Tax
C) Commercial Goods and Services Tax
D) Corporate Goods and Services Tax
48. Which body recommends GST rates in India?
A) Finance Ministry
B) Reserve Bank of India
C) GST Council
D) NITI Aayog
49. GST is a ______ tax.
A) Direct Tax
B) Indirect Tax
C) Property Tax
D) Income Tax
50. What is the full form of GST?
A) Goods and Services Tax
B) Government and Services Tax
C) Goods and Sales Tax
D) General Services Tax
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