100+ GST MCQs 2024 I Goods and Services Tax MCQs 2024 [Free PDF]

GST MCQs 2024
Goods and Services Tax MCQs 2024

Multiple Choice Questions and Answers
Choose the Correct Alternative:

These GST MCQs 2022 are useful for B.Com Exams, CA Intermediate, CA Final, CMA Intermediate, CAM Final and also competitive exams in which GST is a part of syllabus.

1) Who is considered as the architect of Indirect Tax reform in India?

a) L.K. Jha

b) Atal Bihari Vajpayee

c) Dr. Manmohan Singh

d) PV Narasimham Rao

Ans: a) L.K. Jha

2) Where and when GST was first implemented?

a) France, 1954

b) India, 2017

c) Malaysia, 2015

d) China 1994

Ans: a) France, 1954

3) GST in India has been introduced from:

a) 1^st July, 2016

b) 1^st July, 2017

c) 1^st July, 2018

d) 1^st July, 2019

Ans: b) 1st July, 2017

4) Aggregate turnover includes:

a) Taxable supplies

b) Exempt supplies

c) Exports

d) All of the above

Ans: d) All of the above

5) Aggregate turnover does not include:

a) CGST, IGST and SGST

b) Compensation Cess

c) Interest earned on deposits, loans and advances

d) All of the above

Ans: d) All of the above

6) 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

Ans: d) All of the above

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7) Which of the following persons are not liable for registration?

a) Any person engaged exclusively in supplying goods or services wholly exempt from tax.

b) An agriculturist, to the extent of supply of produce out of cultivation of land.

c) Both (A) and (B)

d) None of the above

Ans: c) Both (A) and (B)

8) Exemption from registration is available to:

a) Central & State Govt. Departments

b) Agriculturists

c) Person who are required to pay tax under reverse charge;

d) Input Service Distributor

Ans: b) Agriculturists

9) Where a person becomes liable to get registered under GS T law, he should furnish application for registration within -------------- days.

a) 15

b) 30

c) 60

d) 90

Ans: b) 30

10) GST Registration

a) Aadhaar based

b) Passport based

c) Pan based

d) Credit card

Ans: c) Pan based

11) A person is having multiple business requires registration

a) Single

b) Each business separately

c) One Registration for one person

d) Only one Registration for one PAN

Ans: b) Each business separately

12) Deemed Registration

a) After three common working days

b) After four working days

c) After five working days

d) After six working days

Ans: a) After three common working days

13) Certificate of registration for GST shall be granted in Form:

a) 01

b) 02

c) 03

d) 04

Ans: a) 01

14) Threshold limit for registration under GST Act for normal category states: (Render of goods only)

a) Rs. 10 Lakhs

b) Rs. 20 Lakhs

c) Rs. 30 Lakhs

d) Rs. 40 Lakhs

Ans: Rs. 40 Lakhs

15) Threshold limit for registration under GST Act for special category states: (Render of goods only)

a) Rs. 10 Lakhs

b) Rs. 20 Lakhs

c) Rs. 30 Lakhs

d) Rs. 40 Lakhs

Ans: Rs. 20 Lakhs

16) Threshold limit for registration under GST Act for normal category states: (Render of services only)

a) Rs. 10 Lakhs

b) Rs. 20 Lakhs

c) Rs. 30 Lakhs

d) Rs. 40 Lakhs

Ans: Rs. 20 Lakhs

17) Threshold limit for registration under GST Act for special category states: (Render of services only)

a) Rs. 10 Lakhs

b) Rs. 20 Lakhs

c) Rs. 30 Lakhs

d) Rs. 40 Lakhs

Ans: Rs. 10 Lakhs

18)  Invoice issued for supply of taxable goods by a registered dealer is known as:

a) Tax Invoice

b) Bill of supply

c) Cash Memo

d) Delivery Slip

Ans: a) Tax Invoice

19) “Invoice” or “Tax invoice mentioned in which section

a) Section 27

b) Section 29

c) Section 31

d) Section 47

Ans: c) Section 31

20) Invoice issued for supply of tax-free goods is known as:

a) Tax Invoice

b) Bill of supply

c) Cash Memo

d) Delivery Slip

Ans: b) Bill of supply

21) Tax invoice for goods should be prepared in:

a) Duplicate form

b) Triplicate form

c) Quadruple

d) Only one copy

Ans: b) Triplicate form

22) Tax invoice need not be issue if the amount of the invoice is less than:

a) Rs. 200/-

b) Rs. 500/-

c) Rs. 1,000/-

d) Rs. 5,000/-

Ans: a) Rs. 200/-

23) In case of supply of goods by a composite dealer, the registered person shall issue

a) Tax Invoice

b) Bill of supply

c) Cash Memo

d) Delivery Slip

Ans: b) Bill of supply

24) Debit note and credit note mentioned in which section:

a) Section 36

b) Section 39

c) Section 34

d) None of the above

Ans: c) Section 34

25) When the value of goods or services invoiced earlier requires upward revision:

a) Debit note is issued

a) Credit note is issued

c) Bill of supply is issued

d) Revised Tax invoice is issued

Ans: a) Debit note is issued

26) When the value of goods or services invoiced earlier requires downward revision:

a) Debit note is issued

a) Credit note is issued

c) Bill of supply is issued

d) Revised Tax invoice is issued

Ans: Credit note is issued

27) Time limit for issue of debit note and credit note is:

a) 15 Days

b) 30 Days

c) 45 Days

d) No time limit, can be issue anytime

Ans: No time limit, can be issue anytime

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28) GST number has:

a) 11 Digits

b) 15 Digits

c) 16 Digits

d) 9 Digits

Ans: 15 Digits

29) The first two digits of the GST number represents:

a) State Code

b) District Code

c) Business Code

d) Person Category Code

Ans: a) State Code

30) The next 10 digits of the GST number is:

a) Credit Card Number

b) Aadhaar Card Number

c) PAN number of the taxpayer

d) None of the above

Ans: PAN number of the taxpayer

31) The 13^th Digit in GST number indicates:

a) The number of products deals in

b) The number of owners

c) the number of registrations in a state for the same PAN (Alphanumeric)

d) None of the above

Ans: c) The number of registrations in a state for the same PAN (Alphanumeric)

32) The 14^th Digit in GST Number is:

a) P by default

b) Q by default

c) Y by default

d) Z by default

Ans: d) Z by default

33) The last digit in GST number is:

a) Check digit to detect state

b) Check digit to detect person

c) Check digit to detect error

d) Check digit to detect business

Ans: c) Check digit to detect error

34) Who is eligible for composition scheme?

a) Whose turnover is less than 40 Lakhs

b) Whose turnover is less than 75 Lakhs

c) Whose turnover is less than 1 Crore

d) Whose turnover is less than 1.5 Crores

Ans: d) Whose turnover is less than 1.5 Crores (Except for Special Category States)

35) What is the limit for north-eastern states and Himachal Pradesh under composition scheme of GST?

a) 1.5 Crores

b) 75 Lakhs

c) 40 Lakhs

d) 20 Lakhs

Ans: b) 75 Lakhs

36) Who cannot opt for composite scheme?

a) A person making inter-state sales

b) Manufacturer of tobacco products

c) A casual taxable person or a non-resident taxable person

d) All of the above

Ans: d) All of the above

37) Taxable levy in case of manufacture under composite scheme

a) Two percent

b) Three per cent

c) One per cent

d) Six per cent

Ans: c) One per cent

38) Taxable levy in case of restaurants not service alcohol under composite scheme

a) Two percent

b) Five per cent

c) One per cent

d) Six per cent

Ans: b) Five per cent

39) Taxable levy in case of service providers under composite scheme

a) Two percent

b) Three per cent

c) One per cent

d) Six per cent

Ans: d) Six per cent

40) Whether person opted for composite scheme collect tax under GST

a) No

b) Yes

c) Only A

d) None of the above

Ans: c) Only A

41) What is the time limit for taking ITC?

a) 30 Days

b) 180 days

c)  365 days

d) 20th October of the next financial year or the date of filing annual return whichever is earlier.

Ans: d) 20th October of the next financial year or the date of filing annual return whichever is earlier.

42) ITC will be reversed for invoice which were not paid within:

a) 30 Days of issue

b) 180 days of issue

c)  365 days of issue

d) 20th October of the next financial year or the date of filing annual return whichever is earlier.

Ans: b) 180 days of issue

43) No registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless

a) He is in possession of a tax invoice

b) He has received the goods or services or both.

c) He has furnished the return under section 39

d) All of the above

Ans: d) All of the above

44) Documents required to claim Input Tax Credit (ITC) by a registered dealer:

a) an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31;

b) an invoice issued under reverse charge;

c) a debit note;

d) Any one of the above

Ans: d) Any one of the above

45) Which of the following inward supplies are not eligible for ITC in case of a company manufacturing shoes?

a) Food and beverages

b) Outdoor catering

c) Health Services

d) All of the above

Ans: d) All of the above

46) Input tax credit (ITC) available

a) In the course or Furtherance of business

b) Other than business exp

c) All types of expenses

d) None of the above

Ans: a) In the course or Furtherance of business

47) Which input tax credit cannot be claimed against which output tax liability?

a) IGST, SGST

b) CGST, IGST

c) SGST, IGST

d) CGST, SGST

Ans: d) CGST, SGST

48) 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

Ans: b) is available

49) Input tax credit availability

a) On receipt of goods

b) On payment of taxes paid by supplier to Govt.

c) Taken to manufacturing site or availed services

d) None of the above

Ans: b) On payment of taxes paid by supplier to Govt.

50) Input tax credit availability in case of composition scheme

a) On receipt of goods

b) On payment of taxes paid by supplier to Govt.

c) Taken to manufacturing site or availed services

d) ITC cannot be claimed under composition scheme

Ans: d) ITC cannot be claimed under composition scheme

51) Input tax on capital goods

a) In one installment

b) Partly five equal installments

c) Only A

d) Equally 10% every year

Ans: c) Only A

52) Participation of ITC value chain in composite scheme

a) With participation

b) Without participation

c) Either (A) or (B)

d) None of the above

Ans: b) Without participation

53) In the common portal, every claim of input tax credit of a registered person shall be credited to

a) Electronic Cash Ledger

b) Electronic Credit Ledger

c) Electronic Liabilities Register

d) Electronic Credit Register

Ans: b) Electronic Credit Ledger

54) 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

Ans: b) Electronic credit ledger

55) The total number of states considered as special category states as per GST Act is:

a) 10

b) 11

c) 12

d) 13

Ans: b) 11

56) What is the due date for submission of monthly GSTR – 1?

a) On or before 10th day of the immediately succeeding month

b) On or before 15th day of the immediately succeeding month

c) On or before 17th day of the immediately succeeding month

d) On or before 20th day of the immediately succeeding month

Ans: a) On or before 11th day of the immediately succeeding month

57) GST – 1 is required to be filed by every registered dealer every month whose turnover exceeds:

a) 75 Lakhs

b) 40 Lakhs

c) 1.5 Crores

d) 5 Crores

Ans: c) 1.5 Crores

58) 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

Ans: d) All of the above

59) The due date of filing of monthly GSTR – 3B 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 immediately succeeding month

Ans: d) On or before 20th day of the immediately succeeding month

60) The due date of filing Final Return GSTR – 10 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

Ans: c) Within three months of the date of cancellation or date of order of cancellation, whichever is later

61) The due date of filing of monthly GSTR – 3B 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 31^st December of the next financial year

Ans: d) On or before 31st December of the next financial year

62) The due date of filing Final Return GSTR – 4 is:

a) 31^st March

b) 30^th April

c) 30^th September

d) 31^st December

Ans: b) 30th April

63) Types of return and their name:

64) CGST and IGST is collected by:

a) All of the above

b) State Government

c) Union Territories

d) All of the above

Ans: a) All of the above

65) IGST is payable when the supply is:

a) Interstate

b) Intra-state

c) Intra- UT

d) All of the above

Ans: a) Interstate

66) CGST and SGST is payable when the supply is:

a) Interstate

b) Intra-state

c) Intra- UT

d) All of the above

Ans: b) Intra-state

67) Which form is furnished for submission of details of outward supplies u/s. 37?

a) GSTR – 1

b) GSTR – 2

c) GSTR – 3

d) GSTR – 5

Ans: a) GSTR – 1

68) Maximum penalty for delay in filling GST Return is:

a) Rs. 5,000

b) Rs. 50,000

c) Rs. 10,000

d) Rs. 1000

Ans: a) Rs. 5,000

69) The minimum penalty for improper export of prohibited goods is:

a) Rs. 5,000

b) Rs. 10,000

c) Rs. 15,000

d) Rs. 25,000

Ans: a) Rs. 5,000

70) Penalty for not registering under GST:

a) 100% of tax due

b) Rs. 10,000

c) 100% of tax due or Rs. 10,000 whichever is lower

d) 100% of tax due or Rs. 10,000 whichever is higher

Ans: d) 100% of tax due or Rs. 10,000 whichever is higher

71) Penalty for not issuing tax invoice:

a) 100% of tax due

b) Rs. 10,000

c) 100% of tax due or Rs. 10,000 whichever is lower

d) 100% of tax due or Rs. 10,000 whichever is higher

Ans: d) 100% of tax due or Rs. 10,000 whichever is higher

72) Penalty for not filling GSTR:

a) 100% of tax due

b) Rs. 10,000

c) 100% of tax due or Rs. 10,000 whichever is lower

d) 100% of tax due or Rs. 10,000 whichever is higher

Ans: d) 100% of tax due or Rs. 10,000 whichever is higher

73) 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

Ans: c) Electronic cash ledger

74) Which of the following items are debited to electronic credit ledger?

a) Output tax

b) Interest

c) Penalty

d) All of the above

Ans: a) Output tax

75) Taxpayers whose turnover is more than ___________ are required to mention HSN Code in their invoices.

a) Rs. 5 crores

b) Rs. 1.5 crores

c) Rs. 2.5 crores

d) Rs. 10 crores

Ans: b) Rs. 1.5 crores

GST MCQs (Fill in the blanks)

76) GST is a _______ based tax on consumption of goods and services.

Ans: Destination based tax

77) CGST stands for Central goods and service tax.

78) IGST stands for Integrated goods and service tax.

79) SGST stands for state goods and service tax.

80) GSTN stands for Goods and Services Network.

81) Indirect taxes are supply based taxes.

82) Direct taxes are progressive in nature.

83) Indian GST Model is chosen from Canadian (country) model

84) For delayed payment of GST, interest is payable at 18% per annum

85) Certificate of registration for GST shall be granted in Form 01.

GST MCQs (State whether the following statements are true or false)

86) GST would remove the current Cascading effect of taxes.

Ans: True

87) Only registered dealer can issue tax invoice under GST Act.

Ans: True

88) Only registered person under the GST Act can claim Input Tax Credit (ITC)?

Ans: True

89) The registered person must be in possession of a tax invoice or debit note while claiming input tax credit (ITC).

Ans: True

90) GST has been projected as “One nation, one tax”.

Ans: True

91) India is the first country in the world to introduce dual GST. Write true or false.

Ans: False, Canada 1991

92) A non-resident must hold a PAN for registration under GST Act.

Ans: True

93) Input tax credit (ITC) cannot be availed when tax paid on advance receipt.

Ans: True

94) At present there are four tax slabs under GST.

Ans: True

95) Filling of GSTR-3B is compulsory for all normal and casual taxpayers, even if there is no business activity.

Ans: True

96) GSTR – 4 is filed by the dealers registered under composition scheme.

Ans: True

97) A dealer registered under composition scheme is required to file only one yearly return named GSTR – 4.

Ans: True

98) A normal dealer under regular scheme is required to file 3 monthly return.

Ans: True

99) HSN code under GST Means Harmonised System of Nomenclature

Ans: True

100) The Union Finance Minister is a Chairperson of the GST Council.

Ans: True

101) As per the definition under CGST Act, person does not include Central Government or a State Government.

Ans: False

102) GST will not abolish all the indirect taxes levied in India.

Ans: True

103) ITC is allowed if the goods are destroyed by fire.

Ans: False

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