PAPER - 11
INDIRECT TAXATION
BIT QUESTIONS
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA
DIRECTORATE OF STUDIES
Statutory Body under an Act of Parliament
www.icmai.in
Behind every successful business decision, there is always a CMA
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GST: Time of Supply, Valuation, Input Tax Credit and Other Provisions, Lecture notes of Law of Evidence
Various aspects of the Goods and Services Tax (GST) regime in India, including the time of supply of services, valuation of goods and services, input tax credit, and reverse charge mechanism. It also discusses the tax liability for different types of supplies and the responsibilities of a practicing CMA. useful for understanding the GST return filing process, with a focus on inward supplies of taxable goods and services.
What you will learn
- What is the reverse charge mechanism in GST and when does it apply?
- What is the time of supply of services where services are received from an associated enterprise located outside India?
- When should an invoice be issued in case of continuous supply of services under GST?
- How does Section 15 of CGST Act prescribe the valuation of goods and services?
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PAPER - 11
INDIRECT TAXATION
BIT QUESTIONS
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA
DIRECTORATE OF STUDIES
Statutory Body under an Act of Parliament
www.icmai.in
Behind every successful business decision, there is always a CMA
MISSION STATEMENT
“The CMA Professionals would ethically drive enterprises globally by creating value to stakeholders in the socio-economic context through competencies drawn from the integration of strategy, management and accounting.”
VISION STATEMENT
“The Institute of Cost Accountants of India would be the preferred source of resources and professionals for the financial leadership of enterprises globally.”
Vijayawada Chapter of
The Institute of Cost Accountants of India
Courtesy
Behind every successful business decision, there is always a CMA
PAPER - 11
Indirect Taxation
Bit Questions
(I) Choose the most appropriate one from given four alternatives
- Which of the following taxes have been subsumed in GST? (A) Central Sales Tax (B) Central Excise Duty (C) VAT (D) All of the above
- List – 1 of the Constitution contains matters in respect of which _____ has the exclusive right to make laws. (A) Central Government (B) State Government (C) Both Centre and State Governments (D) None of the above
- GST is levied on supply of all goods and services except: (A) Alcoholic liquor for human consumption (B) Tobacco (C) Health Care Services (D) All of the above
- On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol), Natural Gas and Aviation Turbine Fuel: (A) GST is not levied at all (B) GST will be levied from a date to be notified on the recommendations of the GST Council. (C) GST is levied, but exempt (D) None of the above
- The functions of Goods and Services Network (GSTN) include: (A) facilitating registration (B) forwarding the returns to Central and State Authorities (C) Computation and settlement of IGST (D) All of the above
- Which article of the Constitution outlines the composition and functions of the GST Council? (A) 270 (B) 279A (C) 246A (D) 269A
- 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
- ______ 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
- 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
- Which of the following supplies are naturally bundled? (A) Rent deed executed for renting of two different floors of a building one for residential and another for commercial purpose to same person (B) Pack of watch, tie and belt (C) Package of canned food such as burger, chocolates, sweets, cake etc (D) None of the above
- A _______ supply comprising of two or more supplies shall be treated as the supply of that particular supply that attracts highest rate of tax. (A) Composite (B) Mixed (C) Both (A) and (B) (D) None of the above
- 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
- What is the maximum rate of CGST prescribed under CGST Act? (A) 20% (B) 28% (C) 24% (D) 40%
- Which of the following taxes levied on intra-state supply? (A) CGST (B) SGST/UTGST (C) Both (A) and (B) (D) IGST
- What is the threshold limit of turnover in the preceding financial year to be eligible for composition levy in Delhi? (A) Rs. 20 lakhs (B) Rs. 30 lakhs (C) Rs. 50 Lakhs (D) Rs. 75 lakhs
- Which of the following is not included in aggregate turnover? (A) Exempt supplies of goods or services or both (B) Export of goods or services or both (C) Inter-State supply of goods or services or both (D) Value of inward supplies on which tax is paid under reverse charge
- Transportation of passengers by ____ are exempt from GST. (A) Air conditioned stage carriage (B) Radio Taxi (C) Air terminating in Nagaland airport (D) All of the above
- Which of the following services provided by Department of Posts are exempt from GST? (A) Speed posts (B) Life Insurance (C) Express parcel posts (D) None of the above
- Date on which the supplier receives the payment as per Section 12 of CGST Act is (A) Date entered in books of accounts (B) Date of credit in bank account (C) Date entered in books of accounts or date of credit in bank account, whichever is earlier (D) Date on which receipt voucher is issued by supplier
- What is time of supply of goods liable to tax under reverse charge mechanism? (A) Date of receipt of goods (B) Date on which the payment is made (C) Date immediately following 30 days from the date of issue of invoice by the supplier (D) Earlier of (A) or (B) or (C)
- What is the time of supply of vouchers when the supply with respect to the voucher is identifiable? (A) Date of issue of voucher (B) Date of redemption of voucher (C) Date of entry in books of accounts (D) Earlier of (A) or (B) or (C)
- What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable? (A) Date of issue of voucher (B) Date of redemption of voucher (C) Date of entry in books of accounts (D) Earlier of (A) or (B) or (C)
- What is the time of supply of service if the invoice is issued within 30 days from the date of provision of service? (A) Date of issue of invoice (B) Date on which the supplier receives payment (C) Date of provision of service (D) Earlier of (A) & (B)
- What is the time of supply of service if the invoice is not issued within 30 days from the date of provision of service? (A) Date of issue of invoice (B) Date on which the supplier receives payment (C) Date of provision of service (D) Earlier of (A) & (B)
- What is the time of supply of service in case of reverse charge mechanism? (A) Date on which payment is made to the supplier (B) Date immediately following 60 days from the date of issue of invoice (C) Date of invoice (D) Earlier of (A) & (B)
- What is the time of supply of service where services are received from an associated enterprise located outside India? (A) Date of entry of services in the books of account of recipient of service (B) Date of Payment (C) Earlier of (A) & (B) (D) Date of entry of services in the books of the supplier of service.
- Value of supply under Section 15 is: (A) Wholesale price (B) Market value (C) Maximum retail price (D) Transaction value
- The value of supply should include: (A) Any non-GST taxes, duties, cess, fees charged separately by supplier (B) Interest, late fee or penalty for delayed payment of any consideration for any supply (C) Subsidies directly linked to the price except subsidies provided by the Central and State Governments (D) All of the above
- Which of the following shall not be included in value of supply? (A) GST (B) Interest (C) Late Fee (D) Commission
- When can the transaction value be rejected for computation of value of supply? (A) When the buyer and seller are related and price is not the sole consideration (B) When the buyer and seller are related or price is not the sole consideration (C) It can never be rejected (D) When the goods are sold at very low margins
- Which of the following statement(s) is/are correct? (A) Section 15 of CGST Act prescribes different provisions for valuation of goods and services (B) CGST Act and IGST Act have different provisions for valuation of supply (C) Section 15 of CGST Act prescribes same set of provisions for valuation of goods and services (D) (A) and (B)
- Discount given after the supply is deducted from the value of taxable supply, if – (A) Such discount is given as per the agreement entered into at/or before the supply (B) Such discount is linked to the relevant invoices (C) Proportionate input tax credit is reversed by the recipient of supply (D) All of the above
- In which of the following situations, taxpayer needs to reverse the credit already taken? (A) If payment is not made to the supplier within 45 days from the date of invoice
- Mr. A has started supply of goods in Delhi. He is required to obtain registration if his aggregate turnover exceeds ____ during a financial year (A) Rs. 10 lakh (B) Rs. 20 lakh (C) Rs. 30 lakh (D) Rs. 50 lakh
- Aggregate turnover includes: (A) Taxable supplies (B) Exempt supplies (C) Exports (D) All of the above
- Which of the following persons are compulsorily required to obtain registration? (A) Persons making any inter-state taxable supply (B) Non-resident taxable persons making taxable supply (C) Casual taxable persons making taxable supply (D) All of the above
- Which of the following persons are not liable for registration? (A) Any person engaged exclusively in supplying services wholly exempt from tax. (B) Casual Taxable Person (C) Both (A) and (B) (D) None of the above
- Rohan Toys is a registered supplier of goods in Delhi. It intends to attend a 7 days Business Fair organized in Mumbai (next month) where it does not have a fixed place of business. Examine which of the following statements are true for Rohan Toys: (A) Rohan Toys is not required to obtain registration in Mumbai for attending a 7 days Business Fair (B) Rohan Toys has to obtain registration as a casual taxable person for attending the Business Fair (C) Rohan Toys has to obtain a Unique Identification Number for attending the Business Fair (D) None of the above
- In case of taxable supply of services, invoice shall be issued within a period of ___ from the date of supply of service. (A) 30 days (B) 45 days (C) 60 days (D) 90 days
- In case of taxable supply of services by an insurer, invoice shall be issued within a period of ____ from the date of supply of service. (A) 30 days (B) 45 days (C) 60 days (D) 90 days
- In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice shall be issued: (A) before or at the time when the supplier of service receives the payment (B) on or before the due date of payment (C) either (A) or (B) (D) None of the above
- In case of continuous supply of services, where due date of payment is not ascertainable from the contract, invoice shall be issued: (A) before or at the time when the supplier of service receives the payment (B) on or before the due date of payment (C) either (A) or (B) (D) None of the above
- Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued: (A) before / at the time of supply (B) 6 months from the date of removal (C) Either (A) or (B) (D) None of the above
- Which of these electronic ledgers are maintained online? (A) Electronic liability register (B) Electronic credit ledger (C) Electronic cash ledger (D) All of the above
- Deposits towards tax, penalty, interest, fee or any other amount are credited into the ____ of a taxable person. (A) Electronic liability register (B) Electronic credit ledger (C) Electronic cash ledger (D) All of the above
- Input tax credit as self-assessed in the return of the registered person shall be credited to which of the following ledger? (A) Electronic liability register (B) Electronic credit ledger (C) Electronic cash ledger (D) All of the above
- Which of the following items are debited to electronic credit ledger? (A) Output tax (B) Interest (C) Penalty (D) All of the above
- Balance in electronic credit ledger under SGST can be used against which liability? (A) SGST Liability only (B) SGST and IGST liability (C) SGST, IGST and CGST Liability (D) None of the above
- Which input tax credit cannot be claimed against which output tax liability? (A) IGST, SGST (B) CGST, IGST (C) SGST, IGST (D) CGST, SGST
- Interest is payable on: (A) Belated payment of tax (B) undue / excess claim of input tax credit (C) undue / excess reduction in output tax liability (D) All of the above
- The due date of filing of GSTR – 2 is _____? (A) On or before 10th^ day of the next month (B) After 10th^ day but on or before 15th^ day of the next month (C) On or before 17th^ day of the next month (D) On or before 20th^ day of the next month
- The due date for filing GSTR – 3 is _____ (A) On 10th^ day of the next month (B) On 15th^ day the next month (C) On 17th^ day of the next month (D) On or before 20th^ day of the next month
- Which of the following are not required to file the Annual Return? (A) Input Service Distributor (B) Casual Taxable Person (C) Non-resident Tax Payer (D) All of the above
- The maximum amount of late fee payable by any registered person on failure to furnish GSTR – 3 by the due date is Rs. ____ (A) 1, (B) 5, (C) 10, (D) 25,
- The due date of filing Final Return is _____? (A) 20th^ of the next month (B) 18th^ of the month succeeding the quarter (C) Within three months of the date of cancellation or date of order of cancellation, whichever is later (D) 31st^ December of next financial year
- Compensation to states under GST(Compensation to States ) Act , 2017 is paid by (A) Central Government from consolidated fund of India (B) Central Government from GST compensation fund of India (C) Central Government directly from the collection of compensation cess (D) GST Council under Constitution of India
- While computing compensation to states, tax revenue of this tax/ these taxes is excluded (A) petroleum crude, diesel, petrol, ATF and natural gas (B) Alcohol for human consumption (C) entertainment tax collected by local authorities (D) All of the above
- Input tax credit on compensation cess paid under GST (Compensation to States) Act, 2017 (A) is not available (B) is available (C) is available but not fully (D) is available after one year
- Input tax credit under GST (Compensation to States) Act, 2017 includes GST Compensation Cess charged on any supply of (A) goods and/or services, (B) Goods imported
(C) GST Compensation Cess payable on reverse charge basis; (D) All of the above
- Maximum rate of CGST prescribed by law for intrastate supply made is---- (A) 18% (B) 20% (C) 40% (D) 28%+cess
- Input tax credit on Compensation cess paid under GST (Compensation to States) Act, 2017 is available for payment of (A) IGST only (B) IGST and CGST only (C) compensation under GST (Compensation to States) Act (D) None of the above
- IGST is payable when the supply is --- (A) Interstate (B) Intra-state (C) Intra- UT (D) All of the above
- Zero rated supply includes supplies made- (A) By SEZ unit in India (B) to SEZ unit in India (C) Both (a & (B) above (D) None of the above
- With the introduction of GST, imports will be — (A) more expensive (B) cheaper (C) neutral with no change (D) None of the above
- The first committee to design GST model was headed by (A) Vijay Kelkar (B) Asim Das Gupta (C) Dr. Chidambaram (D) None of the above
- First discussion paper (FDP) which formed the basis for GST in 2009 was released by (A) Union Finance Ministry (B) Dr. Manmohan Singh (C) GST Council (D) Empowered Committee
- Roll out of GST requires constitutional amendment because — (A) existing laws were cascading (B) the powers of levy were exclusive (C) there are separate laws for goods and services (D) All of the above
- Works contract under GST is goods used in work relating to- (A) Immovable property (B) Both movable and immovable property (C) Immovable property treated as supply of service (D) Immovable property treated as supply of goods
- Money means (A) Indian legal tender (B) Foreign currency (C) Cheque/promissory note (D) All the above
- Non-taxable territory means (A) Outside taxable territory (B) Inside taxable territory (C) Inter-state taxable territory (D) None of the above
- Person includes (A) Individual (B) HUF (C) LLP (D) All the above
- Goods and Service Tax council referred in which section (A) 279A of the constitution (B) 276 of the constitution (C) 277 of the constitution (D) 279 of the constitution
- Weight age of vote for centre at GST council (A) 1/4th of total votes cast (B) 1/3rd of total votes cast (C) 1/2 of total votes cast (D) Only B
- Weightage of States ( combined together) at GST council (A) 2/3rd of total votes cast (B) 1/3rd of total votes cast (C) 1/4th of total votes cast (D) None of the above
- Who is chairperson of GST council (A) Finance secretary (B) State Finance Minister (C) Union Finance Minister (D) None of the above
- Taxable turnover of below Rs.1.5 crore assessee under control of (A) Centre (B) State (C) Both (A) and (B) (D) Only c
- Powers to declare certain activities/transactions as neither supply of goods nor of services (A) Schedule I (B) Schedule III (C) Schedule II (D) Schedule IV
- When GST council constituted (A) 15.09. (B) 13.09. (C) 12.09. (D) 20.09.
- Agriculturist (A) Individual or HUF (B) Individual and HUF (C) Partnership (D) All the above
- Associated enterprise mentioned (A) Income tax act 1961 (B) Companies Act 2013 (C) Central GST Act 2017 (D) State GST Act 2017
- Appointed day (A) Date on which the provisions of this Act shall come into force (B) Date on which President assent (C) Date of which both houses passed the act (D) Date on which sent to Finance Ministry
- Deemed exports mentioned in which section (A) Section 137 (B) Section 147 (C) Section 142 (D) Section 145
- Quarter means (A) March (B) September (C) December (D) All the above
- Taxable levy in case of manufacture under composite scheme (A) Two percent (B) Three per cent (C) One per cent (D) Half per cent
- Whether person opted for composite scheme collect tax under GST (A) No (B) Yes (C) Only A (D) None of the above
- Participation of ITC value chain in composite scheme (A) With participation (B) Without participation (C) Either (A) or (B) (D) None of the above
- Taxes paid on (A) Transaction value