CA Final Indirect Tax MCQ - CA Ravi Agarwal

CA FINAL INDIRECT TAX
MCQ BOOKLET
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INDEX
Chapter name Page no:
INDIRECT TAX LAWS
PART I-GOODS & SERVICE TAX
Chapter 1: GST in India – An introduction 03
Chapter 2: Supply under GST 04 – 09
Chapter 3: Charge of GST 10 – 12
Chapter 4: Exemptions From GST 13 - 20
Chapter 5: Place of Supply 21-25
Chapter 6: Time of Supply 26-28
Chapter 7: Value of Supply 29-38
Chapter 8: Input tax credit 39-41
Chapter 9: Registration 42-47
Chapter 10: Tax Invoice, Debit Notes & Credit Notes 48-50
Chapter 11: Accounts and Records and E-way Bills 51-52
Chapter 12: Payment of Tax 53-57
Chapter 13: Returns 58
Chapter 14: Import & Export under GST 58-60
Chapter 15: Refunds 61-64
Chapter 16: Job Work 65
Chapter 17: Assessment & Audit 66-68
Chapter 18: Inspection, Search, Seizure & Arrest 69-70
Chapter 19: Demands & Recovery 71-72
Chapter 20: Liability to Pay Tax in certain cases 73
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Chapter 21: Offences & Penalties 74-77
Chapter 22: Appeals & Revisions 78-81
Chapter 23: Advance Rulings 82-83
Chapter 24: Miscellaneous Provisions 83-86
Chapter name Page no:
PART II- CUSTOMS & FTP
Chapter 1: Levy of and Exemptions from Customs Duty 86-95
Chapter 2: Types of Duties 96-101
Chapter 3: Classification of Imported & Export Goods 102-104
Chapter 4: Valuations under customs act,1962 105-111
Chapter 5: Importation, Exportation and Transportation of Goods 112-113
Chapter 6: Duty Drawback 113-116
Chapter 7: Refund 117-118
Chapter 8: Foreign Trade policy 119
Integrated Combined Case Scenarios 120-255

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Chapter 1: GST in India – An introduction
A empts
Category May-19 Nov-19 May-20 Nov-20 May-21 Dec-21 May-22
MTP - - - - Q1 -
RTP - - - - - -
Booklet - - - - - - Q2
Mock Test Papers:

March 2021:
1. Which of the following is not the function of GST Council?
(a) To make recommendations on goods and services that may be exempted from
GST.
(b) To make recommendations on the rates including floor rates with bands of GST.
(c) To determine tax not paid/short paid for any reason other than fraud.
(d) To establish a mechanism to adjudicate any dispute between the Government of

India and one or more States.
Answer: (c)
Booklet MCQs:
2. Which of the following services does not qualify as online information database access
and retrieval services?
(a) PDF document manually emailed by provider
(b) PDF document automatically downloaded from site
(c) Online course consisting of pre-recorded videos and downloadable

PDFs
(d) Stock photographs available for automatic download
Answer: (a)

PAGE NO.

Chapter 2: Supply under GST
A empts
Category May-19 Nov-19 May-20 Nov-20 May-21 Dec-21
MTP Q1 Q2 - Q3 - -
RTP - - - - - -
Booklet Q4-12 Q4-12 Q4-12 Q4-12 Q4-12 Q4-12
Mock Test Papers:

March 2019:
1. Mr. Manubhai and Mr. Anubhai are two brothers running a business of supplying lubricants
located in the State of Gujarat in their company, M/s. Ambani Lubricants (P) Ltd. On death
of their respected father, the two brothers have divided their business. However, they have
signed an agreement that Mr. Anubhai will not enter into business of supplying lubricants
similar to business done by M/s. Ambani Lubricants
(P) Ltd. run by Mr. Manubhai, for which Mr. Manubhai will pay him Rs. 2.5 crores as a
lump sum payment. State whether transaction entered through the above agreement
constitutes supply under CGST Act, 2017 or not.
(a) Yes, supply of goods by Mr. Manubhai.

(b) Yes, supply of goods by Mr. Anubhai.
(c) Yes, supply of services by Mr. Manubhai.
(d) Yes, supply of services by Mr. Anubhai.
Answer : (d)
October 2019:
2. M/s. Jolly Electronics (P) Ltd., is an authorized dealer of M/s. GG Micro Ltd., located
and registered in Lucknow, Uttar Pradesh. It has sold following items to Mr. Alla Rakha
(a consumer):
Product Amount
Refrigerator (500 liters) taxable @ 18% (Rs.)40,000/-
Stabilizer for refrigerator taxable @ 12% 5,000/-
LED television (42 inches) taxable @ 12% 30,000/-
Split air conditioner (2 Tons) taxable @ 28% 35,000/-
PAGE NO.

Stabilizer for air conditioner taxable @12%. 5,000/-

Total value 1,15,000/-
M/s. Jolly Electronics (P) Ltd. has given a single invoice, indicating price of each item
separately to Mr. Alla Rakha. Mr. Alla Rakha, has given a single cheque of Rs.
1,00,000/- for all the items as a composite discounted price. State the type of supply
and the tax rate applicable on the same.
(a) Composite supply; Highest tax rate applicable to split air conditioner, i.e. 28%
(b) Mixed supply; Highest tax rate applicable to split air conditioner, i.e. 28%
(c) Supply other than composite and mixed supply; Highest tax rate applicable to
split air conditioner i.e. 28%
(d) Supply other than composite and mixed supply; respective tax rate applicable to
each item
Answer: (d)
October 20:
3. Which of the following is not considered as a supply under the CGST Act, 2017?
(a) Importation of architectural services for Rs.1,00,000/- for construction of
residential property used for personal purposes from unrelated person.
(b) Importation of architectural services free of cost for construction of office used
for business purposes from related person.
(c) Importation of architectural services free of cost for construction of office used
for business purposes from unrelated person.
(d) Both (a) and (c)
Answer : (c)
Booklet MCQs:
4. Air cool Ltd., a supplier of air conditioners, is registered under GST in the State of
Maharashtra. It has a policy to gift an air conditioner to its employees [residing in
Gujarat] at the end of financial year in terms of the employment contract. The company
installs such air conditioners at the residence of the employees.
During the month of March, the company installed 150 air conditioners at the residence
of these employees. The total open market value of such air conditioners is Rs. 52.50 lakh
PAGE NO.

(excluding GST). The tax rate on such air conditioners is 28% (14% CGST, 14% SGST
and 28% IGST).
Compute the GST liability of Aircool Ltd., if any.
(a) Rs. 7,35,000 - CGST, Rs. 7,35,000 - SGST
(b) Rs. 14,70,000 - IGST
(c) Nil
(d) Rs. 7,35,000 - IGST
Answer: (c)
5. Jolly Electronics (P) Ltd., an authorized dealer of GG Micro Ltd., is located and
registered under GST in Lucknow, Uttar Pradesh. It has sold following items to Mr.
Rakesh (a consumer):
Product Amount (Rs.)
Refrigerator (500 liters) taxable @ 18% 40,000
Stabilizer for refrigerator taxable @ 12% 5,000
LED television (42 inches) taxable @ 12% 30,000
Split air conditioner (2 Tons) taxable @ 28% 35,000
Stabilizer for air conditioner taxable @12%. 5,000
Total value 1,15,000
Jolly Electronics (P) Ltd. has given a single invoice indicating price of each item
separately to Mr. Rakesh. Mr. Rakesh has given a single cheque of Rs.1,00,000 for all the
items as a composite discounted price. State the type of supply and the tax rate applicable
on the same.
(a) Composite supply; highest tax rate applicable to split air conditioner, i.e. 28%
(b) Mixed supply; highest tax rate applicable to split air conditioner i.e. 28%
(c) Supply other than composite and mixed supply; highest tax rate applicable to split air
conditioner, i.e., 28%
(d) Supply other than composite and mixed supply; respective tax rate applicable to each
item
Answer: (d)

PAGE NO.

6. Which of the following transactions does not qualify as supply under GST law?
(a) Disposal of car without consideration and where the supplier has not claimed
input tax credit on such car.
(b) When a principal makes supplies to his agent who is also registered under GST
and is situated within the same State and the invoice for further supply is issued
by the agent in his name.
(c) When the Head Office makes a su pply of services to its own branch outside the
State.
(d) When a person imports services without consideration for the purposes of his
business from his elder son living outside India.
Answer: (a)
7. Which of the following is/are not considered as a supply under the CGST Act, 2017?
(a) Importation of architectural services for Rs.1,00,000 for construction of
residential property used for personal purposes from unrelated person.
(b) Importation of architectural services free of cost for construction of office used
for business purposes from related person.
(c) Importation of architectural services free of cost for construction of office used
for business purposes from unrelated person.
(d) Both (a) and (c)
Answer: (c)
8. Which of the following is not a supply under the CGST Act, 2017?
(a) Goods supplied free of cost by X & Sons to its agent for further supply to
customer at Rs. 5,000.
(b) Importation of accounting services (for business purposes) free of cost from a
dependent father residing in US.
(c) An expensive watch gifted to an employee for Rs.50,000.
(d) A machinery disposed off free of cost on which input tax credit has been availed.
Answer: (c)
9. M/s. Vishu Megamart, a store located and registered under GST in Rajasthan, has come
out with big discount offers at the time of Diwali on various gift items. In order to attract
more customers, it has decided to supply a gift pack containing 5 packets of Jeeraram’s
Namkeen (200 gram each) taxable @ 12%, 1 packet of Roasted Smoked Almonds (100
gram) taxable @ 18%, 1 packet of Cournville Chocolate (50 mg) taxable @ 28% and 1

PAGE NO.

bottle of Teal Fresh Juice (1 litre) taxable @ 18% in a single basket for a single price of
Rs. 1,000. State the type of supply and the tax rate applicable on the same.
(a) Composite supply; tax rate of the principal item, i.e. Namkeen @18%
(b) Composite supply; highest tax rate out of all items, i.e. 28% applicable to
chocolates
(c) Mixed supply; tax rate of principal item, i.e. Namkeen @18%
(d) Mixed supply; highest tax rate out of all items, i.e. 28% applicable to chocolates
Answer: (d)
10. Mr. Rupesh Patel is voluntarily registered under GST having turnover of
Rs.15,00,000.He is a practicing Company Secretary providing professional services from
his partnership firm located in Chandigarh to its various clients.
He has taken some interior decoration services from abroad for a residential home owned
in the name of the firm which is under construction in Chandigarh. He has paid
RS.2,00,000 for the same.
In view of the above information, state the correct option:
(a) GST is payable on the interior decoration services received from abroad.
(b) Interior decoration services received from abroad are not taxable under GST since
the same are not in the course or furtherance of business.
(c) Interior decoration services received from abroad are exempt from GST in terms
of section 6 of the IGST Act, 2017.
(d) Interior decoration services received from abroad are not taxable since the amount
is below threshold limit.
Answer: (a)
11. Happy Singh is the lawful owner of a residential house situated in Chandigarh. The
property has four floors constructed on it. Out of the four floors in his house, first and
second floor are self-occupied and third and fourth floor have been let out for residential
purposes. Ratanjot Singh, who is a tenant on third floor, has surrendered h is tenancy rights
to Parminder Singh for a tenancy premium of Rs. 5,00,000 on 1st June. Parminder Singh
has paid the applicable stamp duty and registration charges on transfer of tenancy rights.
Moreover, Parminder Singh will pay a monthly rent of Rs. 50,000 to Happy Singh from
June.
Determine the value of taxable supply, in the given case, for the month of June assuming
that the amounts given above are exclusive of GST, wherever applicable.
(a) Happy Singh: Rs. 5,50,000; Ratanjot Singh: Nil

PAGE NO.

(b) Happy Singh: Nil; Ratanjot Singh: Rs. 5,00,000

(c) Happy Singh: Rs. 50,000; Ratanjot Singh: Nil
(d) Happy Singh: Rs. 50,000; Ratanjot Singh: Rs. 5,00,000
Answer: (b)
12. Which of the following persons can opt for the composition scheme under sub-sections
(1) and (2) of section 10 of the CGST Act, 2017?
(1) Registered person whose aggregate turnover in the preceding financial year did not
exceed Rs.75 lakh.
exceed Rs.1.5 crore.
(3) A person engaged in manufacture of pan masala, tobacco and manufactured tobacco
substitutes.
(4) A person engaged in the manufacture of ice cream, other edible ice, whether or not
containing cocoa.
(5) A person engaged exclusively in providing restaurant service.
(6) A person engaged exclusively in supply of medicines.
(a) 1, 2, 3, 5
(b) 1, 2, 5, 6
(c) 2, 3, 4, 5
(d) 3, 4, 5, 6
Answer: (b)

PAGE NO.

Chapter 3 : Charge of GST
A empts
MTP Q1-4 - - - - -
RTP Q5 - - - - -
Booklet Q6 Q6 Q6 Q6 Q6 Q6
Mock Test papers:

March 2019:
1. Which of the following legal services does not fall under reverse charge mechanism
provisions as contained under section 9(3) of the CGST Act, 2017-
(a) Representation services provided by an individual advocate
(b) Representation services provided by a senior advocate
(c) Representation services provided by a firm of advocates
(d) Legal services provided by an advocate to an unregistered individual
Answer: (d)
2. Where any agent supplies goods on behalf of his principal:
(a) Such agent shall be jointly and severally liable to pay the GST payable on such
goods.
(b) The principal shall be jointly and severally liable to pay the GST payable on such
goods.
(c) Both (a) and (b)
(d) None of the above.
Answer: (c)
April 2019:
3. Mr. Palliwal Desai, a registered practicing Chartered Accountant, located in Jaipur, in the
State of Rajasthan, is providing professional and consultancy services to its various
clients from his firm.
He has taken some professional consultancy services from another establishment of its
firm in UK. He has not paid any consideration for the same.
PAGE NO.

Such services would have been taxable @ 18% (9% under CGST + 9% under SGST and
18% under
IGST), had they been received in India. Also, Mr. Palliwal Desai would have paid Rs.
4.00 Lakh, had he not received the said services from the UK establishment.
State the liability of Mr. Palliwal Desai, under CGST/ IGST Act, 2017, out of the
following options-
(a) Rs. 72,000/- as Integrated Tax
(b) CGST Rs. 36,000/- & SGST Rs. 36,000/-, since POS is in India
(c) Nil, since no foreign exchange was paid
(d) Nil, since such services are exempt
Answer : (a)
4. Mr. Khan, engaged in trading of ice-cream (not containing cocoa) in Jammu & Kashmir
within the same State itself. Turnover of his firm in preceding financial year is Rs.
80,00,000. State the composition turnover limit for the State of Jammu and Kashmir and
whether he is eligible to opt for Composition Scheme or not, under GST.
(a) Rs. 75,00,000/-: Yes
(b) Rs. 75,00,000/-: No
(c) Rs. 1,00,00,000/-: Yes
(d) Rs. 80,00,000/-: Yes
Answer: (c)
As per amendment a manufacturer of ice-cream (not containing cocoa) cannot
opt for composition scheme and since here Mr. Khan is a trader he will be eligible for
composition scheme. Hence answer remains unchanged.
Revision Test papers:
May 2019:
5. Which of the following persons can opt for the composition scheme?
exceed Rs. 75 lakhs.
exceed Rs. 1 crore.
(3) A person engaged in business of pan masala, tobacco and manufactured tobacco
substitutes.

PAGE NO.

(4) A person engaged in the business of ice cream, other edible ice, whether or not
containing cocoa.
(5) A person engaged exclusively in providing restaurant service.
(6) A person engaged exclusively in supply of medicines.
(a) 1, 2, 3, 5
(b) 1, 2, 5, 6
(c) 2, 3, 4, 5
(d) 3, 4, 5, 6
Answer: (b)
Booklet MCQs:
6. Mr. Palliwal Desai, a registered practicing Chartered Accountant, located in Jaipur, in the
State of Rajasthan, is providing professional and consultancy services to its various
clients from his firm.
He has taken some professional consultancy services from another establishment of its
firm in UK. He has not paid any consideration for the same.
Such services would have been taxable @ 18% (9% under CGST + 9% under SGST and
18% under
IGST), had they been received in India. Also, Mr. Palliwal Desai would have paid Rs.
4.00 Lakh, had he not received the said services from the UK establishment.
State the liability of Mr. Palliwal Desai, under CGST/ IGST Act, 2017, out of the
following options-
(a) Rs. 72,000/- as Integrated Tax
(b) CGST Rs. 36,000/- & SGST Rs. 36,000/-, since POS is in India
(c) Nil, since no foreign exchange was paid
(d) Nil, since such services are exempt
Answer: (a)

PAGE NO.

Chapter 4: Exemptions From GST
A empts
MTP - Q1-2 Q3 - Q4 -
RTP - Q5 - - - -
Booklet Q6-15 Q6-15 Q6-15 Q6-15 Q6-15 Q6-15
Mock Test Papers:

October 2019:
1. Which of the following activity is taxable under GST?
i. Supply of food by a hospital to patients (not admitted) or their attendants or visitors.
ii. Transportation of passengers by non-air-conditioned railways
iii. Services by a brand ambassador by way of folk dance performance where
consideration charged is Rs. 1,40,000.
iv. Transportation of agriculture produce by air from one place to another place in India
v. Services by way of loading, unloading, packing, storage or warehousing of rice
vi. (vi) Service provided by GTA where consideration charged for transportation of
goods for a single carriage is Rs. 900
(a) (i), (v), (vi)
(b) (iii), (iv), (v)
(c) (i), (iii), (iv)
(d) (iv), (v)
Answer: (c)
2. State which of the following statement is correct:
i. Services by any artist by way of performance in folk or classical art forms of
music, dance, or theatre as a brand ambassador if the consideration charged for
such performance is not more than Rs. 150,000/- is exempt.
ii. Services of life insurance business under Life micro-insurance product as
approved by the Insurance Regulatory and Development Authority, having
minimum amount of cover of Rs. 2,00,000/- is exempt
PAGE NO.

iii. Service by an acquiring bank, to any person in relation to settlement of an amount

up to Rs. 2,500/- in a single transaction transacted through credit card, debit
card, charge card or other payment card service is exempt.
iv. Services provided by a goods transport agency by way of transport in a goods
carriage of, goods, where gross amount charged for the transportation of goods on
a consignment transported in a single carriage is Rs. 2250/-, is exempt.
Your options are -
(a) (i)
(b) (ii), (iii)
(c) (ii), (iii),(iv)
(d) None of the above
Answer : (d)
May 20:
3. Which of the following statements is true?
i. Services provided by Government ITIs to individual trainees are exempt from
GST.
ii. Services provided by the State Governments and private service providers by way
of transportation of patients in ambulance are exempt from GST.
iii. Services of renting of shops in a hospital are exempt from GST being health care
services.
iv. Services provided by Police to PSUs are taxable
(a) 1,2 & 4
(b) 2,3 & 4
(c) 3 & 4
(d) 1,2,3 & 4
Answer: (a)
April 21:
4. Which of the following statements is true?
i. Services provided by Government ITIs to individual trainees are exempt from
GST.

PAGE NO.

ii. Services provided by the State Governments and private service providers by way
of transportation of patients in ambulance are exempt from GST.
iii. Services of renting of shops in a hospital are exempt from GST being health care
services.
iv. Services provided by Police to PSUs are taxable
(a) 1,2 & 4
(b) 2,3 & 4
(c) 3 & 4
(d) 1,2,3 & 4
Answer: (a)
Revision Test Papers:
November 2019:
5. Mr. Khiladi Kumar, is the Managing Director of Khiladi Equipment’s (P) Ltd. The
Company has offices and factories in Mumbai and is registered under GST. Mr. Khiladi
Kumar, has decided to send food grains and other relief materials worth
Rs.50,00,000/- and
Rs. 20,00,000 respectively through railway and airways to the cyclone hit victims in
Kerala in the month of November, 20XX. The Company has contacted Super Airlines
and Indian Railways to transport the materials from Mumbai to Kerala and price for the
same has been determined as Rs.10,00,000/- by air and Rs.50,000/- by railways,
excluding taxes. Mr. Khiladi Kumar, seeks your help to determine what amount of GST
is to be paid to Super Airlines and Indian Railways if applicable GST rate is 18%.
(a) Super Airlines: Rs. 1,80,000/-; Indian Railways: NIL
(b) Super Airlines: Rs. 1,80,000/-; Indian Railways: Rs. 9,000
(c) Super Airlines: Nil; Indian Railways: Rs. 9,000/-
(d) Super Airlines: Nil; Indian Railways: Nil
Answer: (a)
Booklet MCQs;
6. Which of the following activity is liable to GST?
i. Supply of food by a hospital to patients (not admitted) or their attendants or visitors

PAGE NO.

iii. Services by a brand ambassador by way of folk-dance performance where

consideration charged is Rs. 1,40,000
iv. Transportation of agriculture produce by air from one place to another place in India
vi. Service provided by GTA where consideration charged for transportation of goods for
a single carriage is Rs. 900
(a) (i), (v), (vi)
(b) (iii), (iv), (v)
(c) (i), (iii), (iv)
(d) (iv), (v)
Answer: (c)
7. Which of the following activities are not exempt from GST?
i. Religious pilgrimage organised by Todarmal Charitable Trust.
ii. Services provided by a business facilitator to an insurance company in an urban
area
iii. Milling of paddy into rice.
(a) (i), (ii)
(b) (i), (iii)
(c) (ii), (iii)
(d) (i), (ii), (iii)
Answer: (d)
8. Which of the following statements are true?
(1) Services provided by Government ITIs to individual trainees are exempt from GST.
(2) Services provided by the State Governments and Private Service Providers by way of
transportation of patients in ambulance are exempt from GST.
(3) Services of renting of shops in a hospital are exempt from GST being health care
services.
(4) Services provided by police to PSUs are taxable.
(a) 1., 2. & 4.

(b) 2., 3. & 4.

PAGE NO.

(c) 3. & 4.
(d) 1., 2., 3. & 4.
Answer: (a)
9. Dev Bhoomi Rice (P) Ltd., a registered person under GST, is providing services of
processing of milling of paddy into rice, loading, unloading, packing, storage and
warehousing of rice in the State of Chhattisgarh. The company has made following supplies
during the tax period of April to September:
i. Loading and unloading of rice: Rs. 50,00,000.
ii. Packing and warehousing of rice: Rs. 30,00,000.
iii. Processing services of milling of paddy into rice: Rs. 1,00,00,000.
Determine the amount of GST payable on the above supplies assuming that the
applicable rate of tax is 5% and amounts given herein are exclusive of GST.
(a) Rs. 32,40,000
(b) Rs. 9,00,000
(c) Rs. 5,00,000
(d) Nil
Answer: (c)
10. A Municipal Corporation has invited online bids for maintenance of bus stops for a
period of one year from 1st January to 31st December. The work involves
composite supply of goods and services wherein the supply of services is the principal
supply. The value of goods constitutes 25% of the total value of composite supply.
Mr. Kumar, Managing Director of Khiladi Contractors (P) Ltd., located and registered
under GST in Gujarat, wants to bid for the same. He seeks your opinion to determine the
taxability of the above supply to quote the best price. Choose the correct option.
(a) Not leviable to tax
(b) GST payable
(c) Exempt
Answer: (c)
11. Mr. Happy Singh is a resident of Chandigarh. The marriage of his daughter, Khushi Kaur,
has been finalized with Mr. Lovely Singh, a NRI settled in Canada. The marriage is
scheduled on 14th February in Chandigarh. Mr. Happy Singh wants to send 5,000 marriage

PAGE NO.

invitation cards to all his relatives and friends to attend the marriage. He has to send the
invitation by speed post. He is not sure about the taxability of speed post services under
GST regime. He seeks your help in determining the applicability of GST on speed post.
Choose the correct option.
(a) GST payable
(b) Non-taxable
(c) Exempt
Answer: (a)
12. Mr. Kumar is the Managing Director of Khiladi Equipment’s (P) Ltd. The company is
located and registered under GST in Mumbai, Maharashtra. Mr. Kumar has decided to send
food grains and other relief materials worth Rs. 50,00,000 and Rs. 20,00,000 through
railway and airways respectively, to the cyclone hit victims in Kerala in the month of
November. The company has contacted Super Airlines and Indian Railways to transport
answer the materials from Mumbai to Kerala and price for the same has been determined
as Rs. 10,00,000 by air and Rs. 50,000 by railways excluding taxes. Mr. Kumar seeks your
help to determine what is the amount of GST payable by Super Airlines and Indian
Railways, if applicable GST rate is 18% and the amounts given above are exclusive of
GST, wherever applicable.
(a) Super Airlines: Rs. 1,80,000; Indian Railways: Nil
(b) Super Airlines: Rs. 1,80,000; Indian Railways: Rs. 9,000
(c) Super Airlines: Nil; Indian Railways: Rs. 9,000
(d) Super Airlines: Nil; Indian Railways: Nil
Answer: (a)
13. Mr. Pandey is an ambulance driver who lives in NCT of Delhi. He provides driving services
to Preeti Heart and Lung Institute (PHLI) - a super specialty hospital registered under GST
in Delhi - for a consideration of Rs. 25,000 per month.
Mr. Pandey was instructed to pick up a patient in Gurugram to PHLI. While going from
Delhi to Gurugram, he picked up 5 passengers for transportation in the ambulance from
Delhi to Gurugram and charged Rs. 500 each from them.
You are required to ascertain the taxability of transport s ervices provided by Mr. Pandey
in the ambulance from Delhi to Gurugram under the CGST Act, 2017:
(a) Taxable supply
(b) Exempt supply

PAGE NO.

(c) Not a supply

Answer: (a)
14. State which of the following statements is incorrect:
i. Services by any artist by way of performance in folk or classical art forms of music,
dance, or theatre as a brand ambassador if the consideration charged for such
performance is not more than Rs.150,000 is exempt.
ii. Services of life insurance business under Life micro-insurance product as approved by
the Insurance Regulatory and Development Authority, having minimum amount of
cover of Rs.2,00,000 is exempt.
iii. Service by an acquiring bank, to any person in relation to settlement of an amount up
to Rs. 2,500 in a single transaction transacted through credit card, debit card, charge
card or other payment card service is exempt.
iv. Services provided by a goods transport agency by way of transport in a goods carriage
of, goods, where gross amount charged for the transportation of goods on a
consignment transported in a single carriage is Rs. 2,250, is exempt.
Your options are -
(a) (i)
(b) (ii), (iii)
(c) (ii), (iii), (iv)
(d) (i), (ii), (iii), (iv)
Answer: (d)
15. Shree Ram Seva Trust, registered under GST, is a charitable institution registered under
section 12AA of the Income-tax Act, 1961. It has organized a skill development
programme relating to persons over the age of 65 years residing in a well-planned city, in
the month of April. It has received following amounts under the programme:
Particulars Amount (Rs.)
Subscription fees for the programme 50,000
Sponsorship fees received from Mahesh
1,00,000
Enterprises – a sole proprietorship firm
Consideration for supply of goods 3,00,000

PAGE NO.

Besides, the trust has received the donations of ₹ 2,00,000 in April. Hanuman, accountant
of Shree Ram Seva Trust, is not able to determine the taxability of the above amounts
received under GST law. He seeks your expertise in determining the same.
Determine the value of taxable supply of Shree Ram Seva Trust, for the month of April
assuming that the amounts given above are exclusive of GST, wherever applicable.
(a) Nil
(b) Rs. 6,50,000
(c) Rs. 6,00,000
(d) Rs. 4,50,000
Answer: (d)
16. Diksha Public School (DPS) situated in Bilaspur in the State of Chhattisgarh has planned
to celebrate its sports day in Bilaspur Stadium located at a distance of 20 km from the
school precincts on 15th April. DPS has invited quotes from various suppliers for
arranging tent, security and catering for students and teachers. The price has to be quoted
including all applicable taxes.
Raman & Co., a supplier providing the services required above, is not sure of the GST
impact on the above transactions. It seeks your help to determine whether GST is
applicable on all the above services or not, so that it can quote the competitive price
accordingly.
(e) Tent, security and catering services: All taxable
(f) Tent, security and catering services: All exempt
(g) Tent and security services: Taxable; Catering services: exempt
(h) Tent: Taxable; Security and catering services: exempt
Answer: (c)

PAGE NO.

Chapter 5: Place of Supply
A empts
MTP Q1-2 Q-3 - - - -
RTP - - Q4-5 - - -
Booklet Q6-10 Q6-10 Q6-10 Q6-10 Q6-10 Q6-10
Mock Test papers:

March 2019:
1. M/s. Buildwell Engineering Consultants, located and registered in Gurugram, Haryana
provided consultancy services to M/s. Taj India Ltd., (located and registered in Mumbai,
Maharashtra) for its hotel to be constructed on land situated in Dubai.
Determine the place of supply of consultancy services provided by M/s. Buildwell
Engineering Consultants to M/s. Taj India Ltd.:
(a) Gurugram, Haryana
(b) Mumbai, Maharashtra
(c) Dubai
Answer: (b)
April 2019:
2. Mr. Salman Khan, a resident of Mumbai, has booked a Video con D2H connection at his
other home in Delhi. His friend Shah Rukh Khan, is resident of Kerala, paid the charges
for Salman’s D2H connection in Delhi at the time of actual installation. Mr. Shah Rukh
Khan went to Kolkatta after making the payment. Both Salman Khan and Shah Rukh
Khan are not registered in GST.
Determine the place of supply of D2H service provided by Videocon to Mr. Salman
Khan:
(a) Mumbai
(b) Kerala

PAGE NO.

(c) Delhi
(d) Kolkatta
Answer: (c)
October 2019:
3. Aflatoon Spares (P) Ltd., located and registered in Haryana, supplied spare parts (FOB
basis) to Mr. Laxmi Khurana, an unregistered person, located in Rajasthan. Mr. Laxmi
Khurana booked the courier himself with Black Dart Courier (P) Ltd., registered in Delhi
for delivery in Rajasthan. Black Dart Courier (P) Ltd. picked up the goods from Haryana
and delivered the courier in Rajasthan while passing through the State of Uttar Pradesh.
Determine the place of supply of service provided by Black Dart Courier (P) Ltd. to Mr.
Laxmi Khurana:
(a) Haryana
(b) Delhi
(c) Rajasthan
(d) Uttar Pradesh
Answer: (a)
May 2020:
4. Lucky Singh, a resident of Noida, U.P., went to Himachal Pradesh for a family vacation
via Delhi-Chandigarh-Himachal Pradesh in his own car. After entering Chandigarh, his
car broke down due to some technical issue. He called ‘ONROARDS’ - an emergency
roadside car assistance company (registered under GST in Delhi) to repair the car. The
car was repaired by the staff of ‘ONROARDS’. The value of supply amounted to Rs.
50,000 (being labour charges Rs.40,000 and spares Rs.10,000). The bill was supposed to
be generated online though the server, but due to some technical issue, it was not so
generated.
Determine the place of supply in the given case.
(a) Delhi
(b) Chandigarh
(c) Noida, U.P
(d) Himachal Pradesh
Answer: (a)

PAGE NO.

5. Mr. Kala is a proprietor of M/s. Kala & Associates (registered under GST) which deals in
sale/ purchase of second-hand cars. During the current financial year, he effected following
intra-State transactions:
Particulars Purchase Price Sale Price
Car 1 Rs. 5,00,000 Rs. 7,50,000
Car 2 Rs. 3,00,000 Rs. 2,75,000
Car 3 Rs. 6,00,000 Rs. 6,50,000
Car 4 Rs. 8,00,000 Rs. 9,50,000
Mr. Kala purchased Car 4 from another registered person who charged GST of
Rs. 1,30,000 and accordingly, Mr. Ka la has availed the input credit of the same.
Determine the GST liability of Mr. Kala assuming the applicable rate of tax as 18%.
(a) Rs. 95,000
(b) Rs. 1,08,000
(c) Rs. 1,30,500
(d) Exempt Supply, No GST
Answer: (a)
Booklet MCQs:
6. M/s. Dhoom Furniture Mart, located and registered under GST in the State of Chhattisgarh,
sells furniture from its showroom to M/s. Lucky Dhaba (located and registered under GST
in the State of Jharkhand). M/s. Lucky Dhaba requested to deliver the furniture to Mr. Pyare
Lal (his landlord) at his new rented home at Patna, Bihar. M/s. Dhoom Furniture Mart
sends the furniture with a proper e-way bill to Patna through a transporter who made the
delivery to Mr. Pyare Lal.
Determine the place of supply of furniture sold by M/s. Dhoom Furniture Mart to M/s.
Lucky Dhaba in the above case.
(a) Chhattisgarh
(b) Jharkhand
(c) Bihar
(d) Either Jharkhand or Bihar, at the option of the recipient
Answer: (b)

PAGE NO.

7. M/s. Buildwell Engineering Consultants, located and registered under GST in Gurugram,
Haryana, provided architectural services to Taj India Ltd., located and registered under
GST in Mumbai, Maharashtra, for its hotel to be constructed on land situated in Dubai.
Determine the place of supply of architectural services provided by M/s. Buildwell
Engineering Consultants to Taj India Ltd.:
(a) Gurugram, Haryana
(b) Mumbai, Maharashtra
(c) Dubai
(d) Either Maharashtra or Dubai, at the option of the recipient
Answer: (b)
8. Aflatoon Spares (P) Ltd., located and registered under GST in Haryana, supplied spare
parts (FOB basis) to Mr. Laxmi Khurana, an unregistered person, located in Rajasthan. Mr.
Laxmi Khurana booked the courier himself with Black Dart Courier (P) Ltd., registered
under GST in Delhi for delivery in Rajasthan. Black Dart Courier (P) Ltd. picked up the
goods from Haryana and delivered the courier in Rajasthan while passing through the State
of Uttar Pradesh.
Determine the place of supply of service provided by Black Dart Courier(P) Ltd. to Mr.
Laxmi Khurana:
(a) Haryana
(b) Delhi
(c) Rajasthan
(d) Uttar Pradesh
Answer: (a)
9. Mr. Javed, an unregistered person residing in Hisar, Haryana, went to Delhi for seeking
admission of his child - Mr. Arjun - in CA IPCC. Mr. Javed got the demand draft generated
at ICIDI Bank Ltd., registered under GST in Sahibabad, Uttar Pradesh against cash, for
depositing the registration fee to the ICAI.
Mr. Javed does not have a bank account in ICIDI Bank Ltd. and the bank doesn’t have any
policy of KYC requirements (name, address and other identity verification policy) for
customers not having account with any of its branch in India.
Determine the place of supply of service provided by ICIDI Bank Ltd., Delhi to Mr. Javed.
(a) Delhi
(b) Uttar Pradesh

PAGE NO.

(c) Either Delhi or Uttar Pradesh, at the option of the recipient

(d) Haryana
Answer: (b)
10. Lucky Singh, a resident of Noida, U.P., went to Himachal Pradesh for a family vacation
via Delhi-Chandigarh-Himachal Pradesh in his own car. After entering Cha ndigarh, his
car broke down due to some technical issue. He called ‘ONROARDS’ - an emergency
roadside car assistance company (registered under GST in Delhi) to repair the car. The
car was repaired by the staff of ‘ONROARDS’. The value of supply amounted to Rs.
50,000 (being labour charges Rs.40,000 and spares Rs.10,000). The bill was supposed to
be generated online though the server, but due to some technical issue, it was not so
generated.
Determine the place of supply in the given case.
(a) Delhi
(b) Chandigarh
(c) Noida, U.P
(d) Himachal Pradesh
Answer: (a)

PAGE NO.

Chapter 6: Time of Supply
A empts
MTP Q1-2 Q-3 - - - -
RTP - - - - - -
Booklet Q4-5 Q4-5 Q4-5 Q4-5 Q4-5 Q4-5
Mock Test Papers:

March 2019:
1. Banke Bihari (Pedewala), is a famous sweets manufacturer, located and registered in
Mathura, Uttar Pradesh. He received an order for 200 kg of sweets on 2nd November,
2018 from M/s. Ghoomghoom Travels (P) Ltd., located and registered in same locality of
Mathura for a total consideration of Rs. 1,00,000/- on occasion of Diwali festival. All 200
kg sweets were delivered to M/s. Ghoomghoom Travels (P) Ltd. on 5th November, 2018,
but without invoice, as accountant of Mr. Banke Bihari was on leave on that day.
However, the invoice was raised for the same on 6th November, 2018, when the
accountant joined the office after leave. Payment in full was made on 7th November,
2018.
Determine the time of supply of goods in this case.
(a) 2nd November, 2018
(b) 5th November, 2018
(c) 6th November, 2018
(d) 7th November, 2018
Answer: (b)
April 2019:
2. M/s. Radhika Travels (P) Ltd., purchased a bus chassis from M/s. Jyoti Motors Ltd., for a
consideration of Rs. 80.00 Lakh on 1-Aug-2018. M/s. Radhika Travels (P) Ltd., sent the
bus chassis for body building to M/s. Hanumanth Fabricators, and paid in advance the total
consideration of Rs. 25.00 Lakh on 10-Aug-2018. M/s. Hanumanth Fabricators, after
completing the bus body, informed M/s. Radhika Travels (P) Ltd., for inspection of the
work done on 1-Sep- 2018. M/s. Radhika Travels (P) Ltd., visited the work shop of M/s.

PAGE NO.

Hanumanth Fabricators, on 7- Sep-2018, and confirmed that the bus body was in
accordance with the terms of the contract. M/s. Hanumanth Fabricators, raised an invoice
of Rs. 25.00 Lakh on 15-Sep-2018, and supplied chassis along with the bus body so
constructed, along with the invoice on 16-Sep-2018. State the time of supply in this case,
out of the choices given below
(a) 10-Aug-2018
(b) 7-Sep-2018
(c) 15-Sep-2018
(d) 16-Sep-2018
Answer: (a)
October 2019:
3. Banke Bihari (Pedewala), is a famous sweets manufacturer, located and registered in
Mathura, Uttar Pradesh. He received an order for 200 Kg. of sweets on 2nd May, 2019
from M/s. Ghoomghoom
Travels (P) Ltd., located and registered in same locality of Mathura for a total consideration
of Rs. 1,00,000/-. All 200 Kg. sweets were delivered to M/s. Ghoomghoom Travels (P)
Ltd. on 5th May, 2019, but without invoice, as accountant of Mr. Banke Bihari was on
leave on that day. However, the invoice was raised for the same on 6th May, 2019, when
the accountant joined the office after leave. Pa yment in full was made on 7th May, 2019.
(a) 2nd May, 2019
(b) 5th May, 2019
(c) 6th May, 2019
(d) 7th May, 2019
Answer: (b)
Booklet MCQs:
4. Radhika Travels (P) Ltd. purchased a bus chassis from Jyoti Motors Ltd. for a
consideration of Rs. 80.00 lakh on 1st August. Radhika Travels (P) Ltd. sent the bus
chassis for body building to M/s. Hanumant Fabricators and paid in advance the total
consideration of Rs. 25.00 lakh on 10th August. M/s. Hanumant Fabricators, after
completing the bus body, informed Radhika Travels (P) Ltd., for inspection of the work
done on 1st September. Radhika Travels (P) Ltd. visited the workshop of M/s.
Hanumant Fabricators on 7th September and confirmed that the bus body was in
PAGE NO.

accordance with the terms of the contract. Hanumant Fabricators raised an invoice of Rs.
25.00 lakh on 15th September and supplied chassis along with the bus body so
constructed, along with the invoice on 16th September. State the time of supply in this
case for supply made by M/s Hanumant Fabricators, out of the choices given below-
(a) 10th August
(b) 7th September
(c) 15th September
(d) 16th September
Answer: (a)
5. Banke Bihari (Pedewala) owns a famous sweets shop located and registered under GST
in Mathura, Uttar Pradesh. He received an order for 200 kg of sweets on 2nd May from
Ghoomghoom Travels (P) Ltd., located in same locality of Mathura and registered under
GST, for a total consideration of Rs. 1,00,000. Complete order of sweets was delivered to
Ghoomghoom Travels (P) Ltd. on 5th May but without invoice, as accountant of Mr.
Banke Bihari was on leave on that day. However, the invoice was raised for the same on
6th May, when the accountant joined the office after leave. Payment in full was made on
7th May.
(a) 2nd May
(b) 5th May
(c) 6th May
(d) 7th May
Answer : (b)

PAGE NO.

Chapter 7: Value of Supply
A empts
MTP Q1-4 - - Q5 Q6 -
RTP Q11-12 - Q9-10 - Q8 Q7
Booklet Q13-16 Q13-16 Q13-16 Q13-16 Q13-16 Q13-16 Q13-17
Mock Test Papers:

March 2019:
1. M/s Gyaan Publishing House, registered under GST in Delhi, is engaged in printing and
selling of books as well as trading of stationery items. He has provided following
information of a consignment which is to be supplied to Mumbai: -
i. Taxable value of supplies indicated on tax invoice: Rs. 35,000/-
ii. Value of exempted supplies: Rs. 8,000/-
iii. Value of goods to be sent to job worker on delivery challan: Rs. 15,000/-
Calculate the consignment value for the purpose of generating e-way bill for inter-State
supply of goods. Assume rate of tax on taxable goods to be 18%.
(a) Rs. 35,000/-
(b) Rs. 50,000/-
(c) Rs. 56,300/-
(d) Rs. 64,300/-
Answer: (c)
2. Which of the following activity is taxable under GST?
i. Supply of food by a hospital to patients (not admitted) or their attendants or
visitors.
iii. Services by a brand ambassador by way of folk dance performance where
consideration charged is RS. 1,40,000.
iv. Transportation of agriculture produce by air from one place to another place in
India

PAGE NO.


vi. Service provided by GTA where consideration charged for transportation of
goods for a single carriage is Rs. 900
(a) (i), (v), (vi)
(b) (iii), (iv), (v)
(c) (i), (iii), (iv)
(d) (iv),(v)
Answer: (c)
April 2019:
3. M/s. Korelal Printon (P) Ltd., a registered person under GST in the State of Jammu &
Kashmir, has been engaged in the business of offset printing and has been providing
services to various book publishers. A publisher situated in the State of Himachal Pradesh,
a registered person under GST , sent content of the books to be printed by M/s. Korelal
Printon (P) Ltd., in PDF format. The publisher also sent paper worth Rs. 4.00 Lakh to the
printer, free of cost for the purposes of printing its books on 10-Nov-2018. M/s. Korelal
Printon (P) Ltd., raised an invoice of Rs. 1.50 Lakh against printing of books and returned
the printed books through Challan to the publisher on 20-Feb-2019.
The Proper Officer, intercepted the vehicle and claimed that M/s. Korelal Printon (P) Ltd.,
should have sent the invoice of Rs. 5.50 Lakh, i.e. including the value of free of cost paper
supplied by the publisher.
You may suitably advice which one of the following is the correct option -
(a) The value of supply of paper for job work is to be included in the invoice in terms
of section 15 of the CGST Act.
(b) The goods sent for job work, i.e. paper sent for printing is a composite supply
(c) M/s. Korelal Printon (P) Ltd., has entered into an agreement of printing books.
Therefore, he is liable to pay tax on the gross value of Rs. 5.50Lakh.
(d) M/s. Korelal Printon (P) Ltd., has entered into an agreement of printing books.
Therefore, he is liable to pay tax on the net value of Rs. 1.50 Lakh.
Answer: (d)
4. State which of the following statement is correct:
i. Services by any artist by way of performance in folk or classical art forms of
music, dance, or theatre as a brand ambassador if the consideration charged
for such performance is not more than Rs. 150,000/- is exempt.

PAGE NO.

ii. Services of life insurance business under Life micro-insurance product as

approved by the Insurance Regulatory and Development Authority, having
minimum amount of cover of Rs. 2,00,000/- is exempt
iii. Service by an acquiring bank, to any person in relation to settlement of an
amount up to Rs. 2,500 /- in a single transaction transacted through credit
card, debit card, charge card or other payment card service is exempt.
iv. Services provided by a goods transport agency by way of transport in a goods
carriage of, goods, where gross amount charged for the transportation of
goods on a consignment transported in a single carriage is Rs. 2250/-, is
exempt.
Your options are -
(a) (i)
(b) (ii), (iii)
(c) (ii), (iii), (iv)
Answer: (d)
October 2020:
5. A person purchases new battery in exchange of old battery and balance payment of Rs.
3500 in money. The price of the new battery without exchange is Rs. 15,000. Which one
is correct regarding GST liability on the transaction?
(a) GST is payable on Rs. 3500 + open market value of old battery.
(b) GST is payable on Rs. 3500
(c) GST is payable on open market value of new battery, i.e. Rs. 15,000
(d) GST is payable on value of battery of like kind or quality.
Answer: (c)
March 2021:
6. Rajkamal Cooperative Housing Society, registered under GST charges Rs. 21,000 as a
general maintenance charge for the quarter April, 2020 to June, 2020 from Jaimin Sinha
holding Flat No.101 Jaimin Sinha forgot to pay the maintenance charges on time, resulting
into levy of interest. The total amount charged from him was Rs.24,000 (Rs. 21,000+ Rs.
3,000 for interest).
Whether Jaimin Sinha is liable to pay GST, if yes on what amount?
(a) Yes, Rs.21,000
PAGE NO.

(b) Yes, Rs.24,000

(c) Yes, Rs.1,500
(d) No, not liable to pay GST.
Answer: (b)
November 2021:
7. Pyarelal Singh, registered under GST in Lucknow, Uttar Pradesh, is appointed as a del -
credre agent by Sunnykart Co. (P) Ltd. He sells eye optical to his customers locally within
the same State. Sunnykart Co. (P) Ltd. is also registered under GST in the State of Uttar
Pradesh.
During the current financial year, Sunnykart Co. (P) Ltd. supplied taxable goods worth Rs.
10 crore whose open market value is Rs. 10.05 crore, from its Allahabad unit to Pyarelal
Singh. Pyarelal Singh has further sold these goods for Rs. 10.10 crore by raising invoices
using his own GSTIN. Pyarelal Singh has received a commission of Rs. 75 lakh from
Sunnykart Co. (P) Ltd. during the year and has guaranteed the payment of the value of such
goods from the customers to Sunnykart Co. (P) Ltd.
Pyarelal Singh has also provided financial assistance in the form of larger credit period to
his customers, on which he has also earned interest of Rs. 15 lakh.
Compute the value of supply of Sunnykart Co. (P) Ltd. and Pyarelal Singh for the current
financial year assuming that both of them wish to adopt minimum value of supply to the
extent possible.
(a) Sunnykart Co. (P) Ltd.: Rs. 9.09 crore and Pyarelal Singh: Rs. 11.00 crore
(b) Sunnykart Co. (P) Ltd.: Rs. 10.05 crore and Pyarelal Singh: Rs. 10.85 crore
(c) Sunnykart Co. (P) Ltd.: Rs. 10.15 crore and Pyarelal Singh: Rs. 10.85 crore
(d) Sunnykart Co. (P) Ltd.: Rs. 10.15 crore and Pyarelal Singh: Rs. 75.00 lakh
Answer: (a)
May 2021:
8. The Resident Welfare Association (RWA) of Kutumb Housing Society is registered under
GST in the State of Maharashtra. There are 100 three BHK flats and 100 four BHK flats in
the society. It received/paid the following amounts (excluding GST, wherever applicable)
in the months of January and February:

PAGE NO.

Particulars January February

(Rs.) (Rs.)
Maintenance charges per flat received from all 3 BHK 7,000 7,000
flat owners
Maintenance charges per flat received from all 4 BHK 10,000 10,000
flat owners
Interest received on the fixed deposit with 5,00,000 5,00,000
Dhansukh Bank
Generator purchased for the power back-up of 4 BHK 1,00,000
Flats
Taps, pipes, other sanitary fittings purchased for 3 50,000
BHK flats
Determine the net GST liability to be paid for the months of January and February,
assuming that the GST rate is 18% on all inward and outward supplies.
(a) January - Rs. 1,71,000; February - Rs. 1,62,000
(b) January - Rs. 1,80,000; February - Rs. 1,62,000
(c) January - Rs. 1,80,000; February - Rs. 1,80,000
(d) January - Rs. 1,71,000; February - Rs. 1,80,000
Answer: (b)
May 2020:
9. Shree Ram Seva Trust is a charitable institution registered under section 12AA of the
Income-tax Act, 1961. It has organized a skill development programme relating to persons
over the age of 65 years residing in a well-planned city, in the month of April. It has
received following amounts under the programme:

Subscription fees for the programme 50,000
Sponsorship fees 1,00,000
Consideration for supply of goods 3,00,000
Besides, the trust has received the donations of Rs.2,00,000 in April. Hanuman, accountant
of Shree Ram Seva Trust, is not able to determine the taxability of the above amounts
received under GST law. He seeks your expertise in determining the same.
Determine the value of taxable supply of Shree Ram Seva Trust, for the month of April.
(a) Nil
PAGE NO.

(b) Rs.6,50,000
(c) Rs. 6,00,000
(d) Rs.4,50,000
Answer: (d)
10. Happy Singh is the lawful owner of a residential house situated in Chandigarh. The
property has four floors constructed on it. Out of the four floors in his house, first and
second floor are self-occupied and third and fourth floor have been let out for residential
purposes. Ratanjot Singh, who is a tenant on third floor, has surrendered his tenancy rights
to Parminder Singh for a tenancy premium of Rs. 5,00,000 on 1st June. Parminder Singh
has paid the applicable stamp duty and registration charges on transfer of tenancy rights.
Moreover, Parminder Singh will pay a monthly rent of Rs. 50,000 to Happy Singh from
June.
Determine the value of taxable supply, in the given case, for the month of June.
(a) Happy Singh: Rs. 5,50,000; Ratanjot Singh: Nil
(b) Happy Singh: Nil; Ratanjot Singh: Rs. 5,00,000
(c) Happy Singh: Rs. 50,000; Ratanjot Singh: Nil
(d) Happy Singh: Rs. 50,000; Ratanjot Singh: Rs. 5,00,000
Answer: (b)
May 2019:
11. M/s. Aircool Ltd., a supplier of air conditioners, is registered in the State of Maharashtra.
It has a policy to supply two air conditioners at 50% discount to its top employees [residing
in Maharashtra] in terms of the employment contract.
During the month of March, 20XX, the company supplied 150 air conditioners to these
employees. The total open market value of such air conditioners is Rs. 52.50 lakh
(excluding GST). The tax rate on such air conditioners is 28% (14% CGST, 14% SGST
and 28% IGST).
Compute the GST liability of M/s. Aircool Ltd., if any.
(a) Rs. 7,35,000 - CGST,Rs. 7,35,000- SGST
(b) Rs. 3,67,500 - CGST,Rs. 3,67,500 - SGST
(c) Nil, since no consideration is received from the employees.
(d) Nil, since the services rendered by the employees fall under Schedule-III of the
CGST Act, 2017.
Answer: (b)
PAGE NO.

12. Mr. James Bond is a registered person under GST in the State of Maharashtra who sells
footwear to his customers locally within the same State. He has been appointed as an agent
by M/s. Toto Shoes Ltd., a company registered under GST in the State of Karnataka.
During a financial year, M/s. Toto Shoes Ltd., sends taxable goods worth
Rs. 5.00 crore from its Bengaluru store to Mr. James Bond who sells such goods for Rs.
5.00 crore by raising invoices using the GSTIN of M/s. Toto Shoes Ltd. Mr. James Bond
receives a commission of Rs. 60.00 lakh from M/s. Toto Shoes (P) Ltd., during the said
financial year.
Compute the value of supply of Toto Shoes (P) Ltd. and Mr. James Bond for the financial
year.
(a) M/s. Toto Shoes (P) Ltd.: Nil and James Bond: Rs. 5.6 crore
(b) M/s. Toto Shoes (P) Ltd.: Rs. 5 crore and James Bond: Rs. 5.6 crore
(c) M/s. Toto Shoes (P) Ltd.: Rs. 5 crore and James Bond: Rs. 60 lakh
Answer: (c)
Booklet MCQs:
13. Mr. James Stewart is a registered person under GST in the State of Maharashtra who sells
footwear to his customers locally within the same State. He has been appointed as an agent
by Toto Shoes Ltd., a company registered under GST in the State of Karnataka. During a
financial year, Toto Shoes Ltd., sends taxable goods worth Rs. 5.00 crore from its
Bengaluru store to Mr. James Stewart who sells such goods for
Rs. 5.00 crore by raising invoices using the GSTIN of Toto Shoes Ltd. Mr. James Stewart
receives a commission of Rs. 60.00 lakh from Toto Shoes (P) Ltd., during the said financial
year.
Compute the value of supply of Toto Shoes (P) Ltd. and Mr. James Stewart for the financial
year assuming that amounts given above are exclusive of GST, wherever applicable.
(a) Toto Shoes (P) Ltd.: Nil and James Stewart: Rs. 5.6 crore
(b) Toto Shoes (P) Ltd.: Rs. 5 crore and James Stewart: Rs. 5.6 crore
(c) Toto Shoes(P)Ltd.: Rs.5 crore and James Stewart: Rs. 60 lakh
(d) Toto Shoes (P) Ltd.: Rs. 5.6 crore and James Stewart: Nil
Answer: (c)
14. M/s. Korelal Printon (P) Ltd., a registered person under GST in the State of Jammu &
Kashmir, has been engaged in the business of offset printing and has been providing
services to various book publishers. A publisher situated in the State of Himachal Pradesh,
PAGE NO.

a registered person under GST , sent content of the books to be printed by M/s. Korelal
Printon (P) Ltd., in PDF format. The publisher also sent paper worth Rs. 4.00 Lakh to the
printer, free of cost for the purposes of printing its books on 10-Nov-2018. M/s. Korelal
Printon (P) Ltd., raised an invoice of Rs. 1.50 Lakh against printing of books and returned
the printed books through Challan to the publisher on 20-Feb-2019.
The Proper Officer, intercepted the vehicle and claimed that M/s. Korelal Printon (P) Ltd.,
should have sent the invoice of Rs. 5.50 Lakh, i.e. including the value of free of cost paper
supplied by the publisher.
You may suitably advice which one of the following is the correct option -
(a) The value of supply of paper for job work is to be included in the invoice in terms
of section 15 of the CGST Act.
(b) The goods sentfor job work, i.e. paper sent for printing is a composite supply
(c) M/s. Korelal Printon (P) Ltd., has entered into an agreement of printing books.
Therefore, he is liable to pay tax on the gross value of Rs. 5.50Lakh.
(d) M/s. Korelal Printon (P) Ltd., has entered into an agreement of printing books.
Therefore, he is liable to pay tax on the net value of Rs. 1.50 Lakh.
Answer: (d)
15. Mr. Kala is a proprietor of M/s. Kala & Associates (registered under GST) which deals in
sale/ purchase of second-hand cars. During the current financial year, he effected
following intra-State transactions:
Particulars Purchase Price Sale Price
Car 1 Rs. 5,00,000 Rs. 7,50,000
Car 2 Rs. 3,00,000 Rs. 2,75,000
Car 3 Rs. 6,00,000 Rs. 6,50,000
Car 4 Rs. 8,00,000 Rs. 9,50,000
Mr. Kala purchased Car 4 from another registered person who charged GST of
Rs. 1,30,000 and accordingly, Mr. Kala has availed the input credit of the same.
Determine the GST liability of Mr. Kala assuming the applicable rate of tax as 18%.
(a) Rs. 95,000
(b) Rs. 1,08,000
(c) Rs. 1,30,500

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(d) Exempt Supply, No GST

Answer: (a)
16. Mr. Allauddin, a stationery retailer, located and registered under GST in Allahabad, has
received order for supply of goods worth Rs. 2,00,000 on 12th November from another
local registered dealer, Mr. Jallauddin.
Goods were properly supplied with invoice of Rs. 2,00,000 on 14th November.
Mr. Allauddin, incurred the following expenses before the goods were delivered to Mr.
Jallauddin:
Packing charges - Rs. 3,000
Freight & Cartage - Rs. 2,500
Handling Charges - Rs. 1,500
Mr. Jallauddin made full payment (including the additional amounts charged by Mr.
Allauddin) on delivery of the goods for which he was allowed instant cash discount of Rs.
2,000.
The applicable rates of tax on the goods supplied are: IGST @ 18%, CGST @ 9% and
SGST @ 9% and the amounts given above are exclusive of GST.
Mr. Allauddin, paid CGST Rs. 18,000 and SGST 18,000. As a tax consultant, what will be
your advice relating to further tax liability of Mr. Al lauddin-
(a) CGST - Rs. 630 and SGST - Rs. 630
(b) CGST - Rs. 450 and SGST - Rs. 450
(c) CGST - Rs. 18,630 and SGST - Rs. 18,630
(d) CGST - Rs. 18,450 and SGST - Rs. 18,450
Answer: (a)
17. Pyarelal Singh, registered under GST in Lucknow, Uttar Pradesh, is appointed as a del -
credre agent by Sunnykart Co. (P) Ltd. He sells eye opticals to his customers locally
within the same State. Sunnykart Co. (P) Ltd. is also registered under GST in the State
of Uttar Pradesh.
During the current financial year, Sunnykart Co. (P) Ltd. supplied taxable goods worth
₹ 10 crore whose open market value is ₹ 10.05 crore, from its Allahabad unit to Pyarelal
Singh. Pyarelal Singh has further sold these goods for ₹ 10.10 crore by raising invoices
using his own GSTIN. Pyarelal Singh has received a commission of ₹ 75 lakh from
Sunnykart Co. (P) Ltd. during the year and has guaranteed the payment of the value of
such goods from the customers to Sunnykart Co. (P) Ltd.
Pyarelal Singh has also provided financial assistance in the form of larger credit period to
PAGE NO.

his customers, on which he has also earned interest of ₹ 15 lakh.

Compute the value of supply of Sunnykart Co. (P) Ltd. and Pyarelal Singh for the current
financial year assuming that both of them wish to adopt minimum value of supply to
the extent possible.
(a) Sunnykart Co. (P) Ltd.: ₹ 9.09 crore and Pyarelal Singh: ₹ 11.00 crore
(b) Sunnykart Co. (P) Ltd.: ₹ 10.05 crore and Pyarelal Singh: ₹ 10.85 crore
(c) Sunnykart Co. (P) Ltd.: ₹ 10.15 crore and Pyarelal Singh: ₹ 10.85 crore
(d) Sunnykart Co. (P) Ltd.: ₹ 10.15 crore and Pyarelal Singh: ₹ 75.00 lakh
Answer: (a)

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Chapter 8 : Input tax credit
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Mock Test Papers:

March 2019:
1. XY, Bangalore, Karnataka furnishes following information:
i. 10 MT of inputs stock transferred to branch located in Chennai, Tamil Nadu
on 10th April, 20XX. Transfer value of the inputs shown in the invoice is Rs.
10,000.
ii. 5 MT of inputs supplied to customer located in Chennai at Rs. 12,500 on 10th
April, 20XX.
iii. Cost of production of 1 MT of input is Rs. 750.
iv. Chennai branch is eligible for full input tax credit.
The value of the inputs stock transferred to Chennai Branch is-
i. Rs. 10,000
ii. Rs. 25,000
iii. Rs. 8,250
iv. Rs. 12,500
Answer: (a)
May 2020:
2. Mr. Rahul Roy, proprietor of M/s. Royal Shoe & Company is running a business of
manufacturing shoes with the brand name of ‘JUNOON’. The manufacturing unit is located
in Delhi and registered under GST. However, due to low profitability in the bus iness, he
has decided to transfer his business to his friend Mr. Dilip Tijori. Mr. Dilip Tijori is already

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running the business of manufacturing shoes under a proprietorship firm named M/s Hawai
Shoes & Company which is located in Mumbai and registered under GST.
Mr. Rahul Roy has approached you to help him with the issue of transfer of unutilized input
tax credit in electronic credit ledger of M/s. Royal Shoe & Company to M/s Hawai Shoes &
Company.
Advise Mr. Rahul Roy with the correct option in accordance with the provisions of the CGST
Act, 2017:
(a) M/s. Royal Shoe & Company cannot transfer unutilised input tax credit in its electronic
credit ledger to M/s Hawai Shoes & Company, as the proprietors are different.
(b) M/s. Royal Shoe & Company can transfer unutilized input tax credit in its electronic
credit ledger to M/s Hawai Shoes & Company and it can further be utilized in setting
off GST liability for succeeding period.
(c) M/s. Royal Shoe & Company can transfer unutilized input tax credit in its electronic
credit ledger to M/s Hawai Shoes & Company and it can be further utilized in setting
off GST liability for a period up to the month of September following the year in
which ITC was transferred.
(d) M/s. Royal Shoe & Company cannot transfer unutilized input tax credit in its electronic
credit ledger to M/s Hawai Shoes & Company but can claim refund of such unutilized
input tax credit
Answer: (b)
Booklet MCQs:
3. Mr. Mehul Roy, proprietor of M/s. Royal Shoe & Company, is running a business of
manufacturing shoes with the brand name of ‘JUNOON’. The manufacturing unit is located
in Delhi and is registered under GST. However, due to low profitability in the business, he
has decided to transfer his business to his friend Mr. Dilip Tijori. Mr. Dilip Tijori is already
running the business of manufacturing shoes under a proprietorship firm named M/s Hawai
Shoes & Company which is located in Mumbai and registered under GST.
Mr. Mehul Roy has approached you to help him with the issue of transfer of unutilized
input tax credit in electronic credit ledger of M/s. Royal Shoe & Company to M/s Hawai
Shoes & Company.
Advise Mr. Rahul Roy with the correct option in accordance with the provisions of the
CGST Act, 2017:
(a) M/s. Royal Shoe & Company cannot transfer unutilised input tax credit in its
electronic credit ledger to M/s Hawai Shoes & Company as the proprietors are
different.

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(b) M/s. Royal Shoe & Company can transfer the unutilized input tax credit in its
electronic credit ledger to M/s Hawai Shoes & Company and it can further be
utilized in setting off GST liability for succeeding period.
(c) M/s. Royal Shoe & Company can transfer unutilized input tax credit in its
electronic credit ledger to M/s Hawai Shoes & Company and it can be further
utilized in setting off GST liability for a period up to the month of September
following the year in which ITC was transferred.
(d) M/s. Royal Shoe & Company cannot transfer unutilized input tax credit in its
electronic credit ledger to M/s Hawai Shoes & Company but can claim refund of
such unutilized input tax credit.
Answer: (b)

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Chapter 9 : Registration
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Mock test Papers:

March 2019:
1. Which one of the following cannot be a reason for cancellation of GST registration?
(a) There is a change in the constitution of business from partnership firm to
proprietorship.
(b) The business has been discontinued.
(c) A composition taxpayer has not furnished returns for three consecutive tax
periods.
(d) A registered person, other than composition taxpayer, has not furnished returns
for three consecutive tax periods.
Answer: (d)
April 2019:
2. Which one of the following persons are not liable to obtain registration compulsorily
under GST?
(a) Input Service Distributor.
(b) Persons who are required to deduct tax under section 51 of the CGST Act, 2017.
(c) Persons who make taxable supply of goods or services or both on behalf of other
taxable persons whether as an agent or otherwise.
(d) Person making inter-State supply of taxable services with aggregate turnover of
Rs. 15 lakhs in Delhi.
Answer: (d)
October 2019:

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3. M/s. Shahrukh Beedi Company (P) Ltd., is a manufacturer of cigarettes. It has been
registered under GST in the State of West Bengal.
The turnover of the company from the period April, 2018 to March, 2019 is Rs. 90,00,000/-
The Excise duty paid on the cigarettes removed is Rs. 10,00,000/-. CGST and SGST paid
on the cigarettes is Rs. 18,00,000/-.
The company also recovered actual freight of Rs. 5,00,000/- on the supply of cigarettes so
made during the financial year 2018-19, and also charged CGST/ SGST thereon. The
company paid RCM@ 5% while availing the services of GTA of Rs. 5,00,000/-.
Compute the aggregate turnover of M/s. Shahrukh Beedi Company (P) Ltd.,
(a) Rs. 90,00,000/-
(b) Rs. 1,00,00,000/-
(c) Rs. 1,18,00,000/-
(d) Rs. 1,05,00,000/-
Answer: (d)
October 2020:
4. Byomkesh Mukherjee & Sons, a registered person located in the state of West Bengal, is
engaged in the supply of taxable goods. He desires to take part in a trade fair to be held in
State of Gujarat for supply of such goods. He does not have fixed place of business in
Gujarat. Which of the following statement(s) is correct in the context of obtaining
registration in Gujarat?
(a) He has to obtain registration as regular tax payer under section 22 of the CGST
Act
(b) He has to obtain registration as composition tax payer under section 10 of the
CGST Act
(c) He has to obtain registration as casual taxable person as defined under section
2(20) of the CGST Act
(d) He is not required to obtain registration if his aggregate turnover does not exceed
Rs. 40 lakhs.
Answer: (c)
Revision test papers:
May 2019:
5. Which among the following cannot be a reason for cancellation of registration?

PAGE NO.

(a) There is a change in the constitution of business from partnership firm to

proprietorship.
(b) The business has been discontinued.
(c) A composition taxpayer has not furnished returns for three consecutive tax periods.
(d) A registered person, other than composition taxpayer, has not furnished returns for
three consecutive tax periods.
Answer: (d)
Booklet MCQs:
6. State which of the following statements is incorrect:
i. An agent, supplying taxable goods on behalf of principal where invoice is issued
in the name of principal, is required to get compulsorily registered under GST.
ii. Persons who are required to deduct tax under section 51 of the CGST Act, 2017,
whether or not separately registered under CGST Act, are compulsory required to
get registered under GST without any threshold limit.
iii. Every person supplying online information and database access or retrieval
services from a place outside India to a registered person in India is compulsory
required to get registered under GST without any threshold limit.
iv. Persons who supply services, other than supplies specified under sub-section (5)
of section 9 of the CGST Act, 2017, through such electronic commerce operator
who is required to collect tax at source under section 52 of the CGST Act, 2017
are compulsory required to get registered under GST without any threshold limit.
(a) (i), (ii)
(b) (iii), (iv)
(c) (i), (iii), (iv)
(d) (i), (ii), (iii) and (iv)
Answer: (c)
7. Mr. Lal, a registered person under GST, was the proprietor of M/s. Spiceton Restaurant.
He died and left behind his wife and son on 15th August.
His son – Mr. Pal - wants to continue the business of the deceased father.
The GST consultant of M/s. Spiceton Restaurant gives advice to Mr. Pal as to how he can
continue the business of his deceased father.
Which of the following options is correct in accordance with the provisions of GST law?

PAGE NO.

(a) Mr. Pal should get himself registered under GST in the name and style M/s.
Spiceton Restaurant under his own PAN and file Form GST ITC 02.
(b) Mr. Pal can get the authorized signatory changed by approaching to the Proper
Officer and can continue the same business.
(c) Mr. Pal should close the old firm and start new business under different name.
(d) Mr. Pal should do the business with his mother as the new proprietor of the M/s.
Spiceton Restaurant, and Mr. Pal should act as a Manager.
Answer: (a)
8. Mrs. Reena is a consultant. She has provided the following details relating to services
provided and received by her:
(1) Supply of management consultancy services for Rs. 500,000 p.a.
(2) Supply of accounting services for Rs. 200,000 p.a.
(3) Renting of immovable property for residential purposes for Rs. 10,000 p.m.
(4) Management consultancy services provided to a hospital for Rs. 50,000 one time
(5) Services provided to a client outside India for Rs. 50,000 p.m.
(6) Services received from a lawyer for Rs. 1,00,000
Note: Assume that amounts given above are exclusive of GST, wherever applicable.
What shall be her aggregate turnover for the financial year under GST provided her
aggregate turnover during previous financial year was Rs. 24 lakh?
(a) Rs. 9,10,000
(b) Rs.15,70,000
(c) Rs. 14,70,000
(d) Rs. 8,20,000
Answer: (c)
9. GST compliance rating shall be assigned to:
(a) only a person who is liable to deduct TDS/ collect TCS.
(b) only a composition dealer.
(c) only an input service distributor.
(d) every registered person.
Answer: (d)

PAGE NO.

10. Mr. Manjot is a trader supplying goods from his firm M/s. Singh Traders. The office of the
firm is located in Delhi whereas its godown are located in the State of Uttar Pradesh, Punjab
and Jammu & Kashmir (J & K) respectively.
M/s. Singh Traders made following intra-State supplies from different States during the
current financial year:
(i) Delhi - Taxable supplies: Rs. 21,00,000
(ii) Punjab – Exempted supplies: Rs. 6,00,000
(iii) Uttar Pradesh – Taxable and exempted supplies: Rs. 3,00,000 each respectively.
(iv) J & K – Taxable and exempted supplies: Rs. 8,00,000 and Rs. 3,00,000
respectively.
Ascertain the States in which Mr. Manjot is required to take registration under GST:
(a) Delhi, Punjab, Uttar Pradesh and J & K
(b) Delhi, Uttar Pradesh and J & K
(c) Delhi and Uttar Pradesh
(d) Delhi
Answer: (b)
11. Shah Beedi Company (P) Ltd. is a manufacturer of cigarettes. It has been registered under
GST in the State of West Bengal.
The turnover of the company from the current financial year is Rs. 90,00,000. The excise
duty paid on the cigarettes removed is Rs. 10,00,000. CGST and SGST paid on the
cigarettes is Rs. 18,00,000 each.
The company also recovered actual freight of Rs. 5,00,000 from the buyers on the supply
of cigarettes so made during the current financial year and also charged CGST/ SGST
thereon. The company paid tax @ 5% under reverse charge while availing the
services of GTA of Rs. 5,00,000.
Compute the aggregate turnover of Shah Beedi Company (P) Ltd. assuming that the
amounts given above are exclusive of GST.
(a) Rs. 90,00,000
(b) Rs. 1,00,00,000
(c) Rs. 1,18,00,000
(d) Rs. 1,05,00,000
Answer: (d)

PAGE NO.

12. State whether the following statements are true or false:

(1) Zero rated supply means supply of any goods or services or both which attracts nil
rate of tax.
(2) Exempt supply means export of goods or services or both or supply of goods or
services or both to a Special Economic Zone developer or a Special Economic Zone
unit.
(3) Non-taxable supply means supply of goods or services or both which is not leviable
to tax under the CGST Act, 2017 but leviable to tax under the IGST Act, 2017.
(4) ITC may be availed for making zero rated supply of exempt goods.
(a) False, False, False, True

(b) True, False, False, False
(c) True, True, False, False
(d) False, False, False, False
Answer: (a)

PAGE NO.

Chapter 10: Tax Invoice, Debit Notes & Credit Notes
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Mock Test Papers:

April 2019:
1. Which of the following statements is correct while issuing a tax invoice under GST
Laws?
(a) Place of supply in case of inter-State supply is not required to be mentioned.
(b) The power of attorney holder can sign the tax invoice in case the taxpayer or his
authorized representative has been travelling abroad.
(c) Quantity is not required to be mentioned in case of goods when goods are sold on
“as is where is basis”.
(d) HSN code for goods or services is required to be mentioned.
Answer: (d)
October 2019:
2. Which of the following statements is correct while issuing a tax invoice?
i. Place of supply in case of inter-State supply is not required to be mentioned
ii. The power of attorney holder can sign the tax invoice in case the taxpayer or his
authorised representative has been travelling abroad
iii. Quantity is not required to be mentioned in case of goods when goods are sold on “as
is where is basis”
iv. Description of goods is not required to be given in case of mixed supply of goods
(a) (ii), (iii)
(b) (i), (ii), (iii)
(c) None of the above

PAGE NO.

(d) All of the above

Answer: (c)
March 2021:
3. Whether Mr. X, a registered person, can issue single debit note or credit note for one or
more invoices?
(a) No, for every invoice, separate debit note or credit note is required to be issued.
(b) Yes, one debit note or credit note can be issued for one or more invoices.
(c) No, however, single invoice can have more than one debit note or credit note.
(d) Debit note or credit note can be issued irrespective of issue of invoice.
Answer: (b)
May 2019:
4. M/s. Wanderlust Travels (P) Ltd. purchased a bus chassis from M/s. Krishi Motors Ltd. for
a consideration of Rs. 90.00 lakh on 01.10.20XX. M/s. Wanderlust Travels (P) Ltd. sent
the bus chassis for body building to M/s. Bhagwant Fabricators and paid in advance the
total consideration of Rs. 25.00 lakh on 15.10.20XX. M/s. Bhagwant Fabricators, after
completing the bus body, informed M/s. Wanderlust Travels (P) Ltd. for carrying out the
inspection of the work done on 05.11.20XX. M/s. Wanderlust Travels (P) Ltd. visited the
work shop of M/s. Bhagwant Fabricators on 08.11.20XX and confirmed that the bus body
was in accordance with the terms of the contract.
The last date for issuing the invoice by M/s. Bhagwant Fabricators is:-
(a) 15.10.20XX
(b) 08.11.20XX
(c) 08.12.20XX
(d) 05.12.20XX
Answer: (c)
Booklet MCQs:
5. Which of the following statements is correct while issuing a tax invoice?
i. Place of supply in case of inter-State supply is not required to be mentioned.
ii. A registered person whose annual turnover is greater than Rs.5 crores in the preceding
financial year is not required to mention HSN code for goods or services, supplied by
it to a registered person.
PAGE NO.

iii. Quantity is not required to be mentioned in case of goods when goods are sold on “as
is where is basis”.
iv. Description of goods is not required to be given in case of mixed supply of goods.
(a) (ii), (iii)
(b) (i), (ii), (iii)
(c) None of the above
(d) (i), (iii), (iv)
Answer: (c)
6. What will be the rate of tax and nature of supply of a service if the same is not determinable
at the time of receipt of advance?
(a) 12%, inter-State supply
(b) 12%, intra-State supply
(c) 18%, inter-State supply
(d) 18%, intra-State supply
Answer: (c)
7. ASC, a registered person under GST, supplied goods amounting to
Rs. 1,18,000 (inclusive of GST, taxable @ 18%) to BSC, a registered person under GST
on 30th September. BSC further sold such goods to Rakesh, a consumer who came to his
shop on 30th October in cash, for
Rs. 2,36,000 (inclusive of GST, taxable @ 18%). ASC issued a credit note of Rs.11,800
(Rs.10,000 + Rs. 1800 - GST) for rate difference on 2nd November to BSC.
Thereafter, BSC entered a credit note in its books for the same amount in the name of
Rakesh, without intimating him, on 2nd November and reduced its output tax liability
accordingly.
As per the provisions of GST law, which of the above-mentioned suppliers are allowed to
reduce their output tax liability?
(a) ASC
(b) BSC
(c) Both ASC and BSC
(d) Neither ASC nor BSC, since incidence of tax has been passed on to another person.
Answer: (a)

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Chapter 11: Accounts and Records and E-way Bills
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Mock Test Papers:

April 2019:
1. Which of the following statements are true w.r.t. accounts and records under GST laws?
(a) All accounts and records are to be retained for 5 years.
(b) Stock record is to be maintained by all registered dealers except the dealers
registered under composition scheme.
(c) Stock record is to be maintained by all registered dealers including composition
dealers.
(d) Monthly production records are to be maintained by all dealers except the dealers
who have taken option for composition.
Answer: (b)
May 2019:
2. Which of the following statements are true with respect to accounts and records?
(1) All accounts and records are to be retained for 6 years.
(2) Stock record is to be maintained by all registered dealers except the dealers
registered under composition scheme.
(3) Stock record is to be maintained by all registered dealers including composition
dealers.
(4) Monthly production records are to be maintained by all dealers except the dealers who
have taken option for composition.
(5) Monthly production records are to be maintained by all dealers including
composition dealers.
(6) Records are to be maintained at principal place of business.
PAGE NO.

(a) 1, 2, 5, 6
(b) 1, 3, 5
(c) 1, 3, 4
(d) 1, 2, 4, 6
Answer: (a)

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Chapter 12 : Payment of Tax
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Booklet Q7 Q7 Q7 Q7 Q7 Q7 Q8
Mock Test Papers:
March 2019:
1. In which of the following supplies of goods and services made exclusively to
Government departments, agencies etc., TDS is required to be deducted?
i. Health Department executed a contract with a local supplier to supply “medical
grade oxygen” of Rs. 2.6 lakh (including GST @ 18%) and is making full payment.
ii. Government school is making a payment of Rs.3.5 Lakh to a supplier for supply of
cooked food as mid-day meal under a scheme sponsored by Central/State
Government
iii. Municipal Corporation of Kolkata purchases a heavy generator from a supplier in
Delhi. Now, it is making payment of Rs.5 lakh and IGST @18% on Rs.5 lakh for
such purchase.
iv. Finance Department is making a payment of Rs.3 lakh (including GST @ 18%) to
a supplier of ‘printing & stationery’.
Assume all other conditions for deduction of TDS are fulfilled.
(a) (i), (ii) and (iii)
(b) (ii), (iii) and (iv)
(c) Only (i) and (ii)
(d) Only (iii) and (iv)
Answer: (d)
April 2019:
2. Analyze the transactions mentioned below-
i. Mr. Abhinay, provides architect services to Institute for Rural Development, a
Government Agency for Rs. 2,80,000/- (inclusive of Rs. 30,000/- GST) under a

PAGE NO.

contract in October, 2018. Mr. Abhinay, is registered under GST. Being a registered
supplier, Institute for Rural Development deducted TDS of supplier.
ii. M/s. Manmohak Apparels, is registered under GST in Madhya Pradesh. It sells
leather handbags across India through e-commerce operator Pingpong. Pingpong,
is also registered with Madhya Pradesh GST Authority as TCS collector and
collected TCS @ 1% (0.5% CGST + 0.5% SGST) on supplies made through it.
M/s. Manmohak Apparels made sales of Rs. 3,45,000/- and received sales returns
of Rs. 67,700/- in the month of October, 2018. Sales are inclusive of tax. Leather
handbags are taxable @ 18% GST. Pingpong, collected TCS of Rs. 2,350/- from
M/s Manmohak Apparels.
Which of the transactions are in compliance with section 51 or section 52 of CGST Act?
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Neither (i) nor(ii)
Answer: (b)
3. A taxable person has made following supplies in January, 2018 –
Sales within the State – Rs. 2,00,000.
Exports out of India– Rs. 60,000.
Supplies to SEZ located within the State – Rs. 40,000.
He does not intend to clear goods under Letter of Undertaking (LUT) or bond. The
input tax credit available to him during January, 2018 – IGST – Nil. CGST – Rs.10,000.
SGST – Rs. 20,000.
There is no opening balance in his electronic cash ledger or electronic credit ledger.
Tax rates are: SGST – 9%, CGST – 9%, IGST – 18%. How much amount is payable by
him in cash?
(a) CGST – Rs. 8,000 SGST – Nil
(b) CGST – Rs. 11,600 SGST – Rs. 1,600
(c) CGST – Rs. 8,000, SGST – Nil, IGST – Rs. 5,200
(d) CGST – Rs. 8,000 SGST – Nil, IGST – Rs. 16,000
Answer: (d)
October 2019:

PAGE NO.


Government departments, agencies etc., TDS is required to be deducted?
v. Health Department executed a contract with a local supplier to supply “medical
grade oxygen” of Rs. 2.6 lakh (including GST @ 18%) and is making full payment.
vi. Government school is making a payment of Rs.3.5 Lakh to a supplier for supply of
Government
vii. Municipal Corporation of Kolkata purchases a heavy generator from a supplier in
Delhi. Now, it is making payment of Rs.5 lakh and IGST @18% on Rs.5 lakh for
such purchase.
viii. Finance Department is making a payment of Rs.3 lakh (including GST @ 18%) to
a supplier of ‘printing & stationery’.
Assume all other conditions for deduction of TDS are fulfilled.
(e) (i), (ii) and (iii)
(f) (ii), (iii) and (iv)
(g) Only (i) and (ii)
(h) Only (iii) and (iv)
Answer: (d)
November 2020:
5. In respect of a consignment supplied on 20th August, provisional assessment was
resorted to. The assessment was finalized on 20th November and the taxpayer became
liable to pay differential IGST of Rs.10,000/-. The taxpayer paid this amount on 20th
February next year. The number of days for which the taxpayer is liable to pay interest
are-
(a) 184 days
(b) 153 days
(c) 92 days
(d) 204 days
Answer: (b)
November 2019:

PAGE NO.

6. M/s. Lex Corp. (P) Ltd. is a registered manufacturer of fruit juices. It purchases plastic
bottles and cardboard and sends the same for affixing stickers on plastic bottles and
manufacturing boxes from cardboard to a registered job worker, M/s. Hammer
Industries
P Ltd. These raw materials are sent directly from the place of business of supplier to
the premises of job worker. M/s. Lex Corp. (P) Ltd. booked input tax credit on purchase
of such items. The following transactions took place in this regard:
Determine the total amount to be added to the output tax liability of M/s. Lex Corp. (P)
Ltd. in case of violation of section 143 of the CGST Act, 2017. Ignore the different
point of times when the amount is added to the output tax liability.
Value of Input tax Date of Date of Date of

goods sent paid on such purchase Receipt of goods received
to job goods of goods by goods by M/s back from M/s
worker M/s. Lex Hammer Hammer
Corp. (P) Industries Industries (P)
Ltd. (P) Ltd. Ltd.
Rs. 50,000 Rs. 6,000 10-07-2017 15-07-2017 12-07-2018

Rs. 2,00,000 Rs. 24,000 25-09-2017 27-09-2017 13-10-2018
Rs. 8,00,000 Rs. 96,000 22-12-2017 25-12-2017 16-08-2019
Rs.10,00,000 Rs. 1,20,000 21-01-2018 25-01-2018 23-01-2019
Rs. 3,50,000 Rs. 42,000 24-02-2018 26-02-2018 28-02-2019
(a) Rs. 2,88,000/- + Interest @ 18%

(b) Rs. 2,88,000/- + Interest @ 24%
(c) 1,62,000/- + Interest @ 24%
(d) 1,62,000/- +Interest @ 18%
Answer: (d)
Booklet MCQs:
Government departments, agencies etc. and persons notified under section 51 of the
CGST Act, 2017, TDS is required to be deducted? The amounts given below are
inclusive of GST @ 18%, wherever applicable. Assume that all other conditions for
deduction of TDS are fulfilled.
i. Health Department executed a contract with a local supplier to supply “medical
grade oxygen” of Rs. 2.6 lakh and is making full payment.

PAGE NO.

ii. Government school is making a payment of Rs. 3.5 lakh to a supplier for supply of
Government.
iii. Municipal Corporation of Kolkata purchases a heavy generator from a supplier in
Delhi. Now, it is making payment of Rs. 5 lakh for such purchase.
iv. Finance Department in Delhi is making a payment of Rs. 3 lakh to a supplier of
‘printing & stationery’ in Delhi.
(b) (ii), (iii) and (iv)
(c) Only (i) and (ii)
(d) Only (iii) and (iv)
Answer: (d)
8. Sukhamani Traders, registered in Maharashtra, purchased machinery two years

back worth ₹ 2,00,00,000 and did not avail ITC on said machinery at the time of its
purchase. After using the machinery for two years, it gave said machinery free of
cost in the month of September (in the current year) to an unrelated person in
Punjab. On the date of transfer, open market value of the machinery was
₹ 1,25,00,000 and the written down value was ₹ 1,53,00,530.
In the month of September, it also supplied taxable goods worth
₹ 50,00,000 to Royal Oil Corporation Limited in the territorial waters. The said
territorial waters are located at a distance of 5 nautical miles from the baseline of
the State of Maharashtra and 7 nautical miles from the baseline of the State of
Kerala.
All above amounts are exclusive of GST and rates of applicable CGST, SGST and
IGST in above cases are 9%, 9% and 18%.
You are required to determine the amount of net CGST and SGST and/or IGST
payable in the month of September.
(a) CGST: ₹ 4,50,000; SGST: ₹ 4,50,000; IGST: Nil
(b) CGST: Nil; SGST: Nil; IGST: ₹ 9,00,000
(c) CGST: Nil; SGST: Nil; IGST: Nil
(d) CGST: ₹ 4,50,000; SGST: ₹ 4,50,000; IGST: ₹ 22,50,000
Answer: (a)

PAGE NO.

Chapter 13 : Returns
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Booklet - - - - - -
Chapter 14: Import & Export under GST
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Booklet Q4 Q4 Q4 Q4 Q4 Q4 Q5
Mock Test papers:

October 2019:
1. State whether the following statements are true or false:
i. Zero rated supply means supply of any goods or services or both which attracts nil
rate of tax.
ii. Exempt supply means export of goods or services or both, or supply of goods or
services or both to a Special Economic Zone developer or a Special Economic Zone
unit.
iii. Non-taxable supply means supply of goods or services or both which is not leviable
to tax under CGST Act, 2017 but leviable to tax under the Integrated Goods and
Services Tax Act, 2017.
iv. ITC may be availed for making zero rated supply of exempt goods.
PAGE NO.

(a) False, False, False, True

(b) True, False, False, False
(c) True, True, False, False
(d) False, False, False, False
Answer: (a)
November 2019:
2. Fury Ltd. has received an order for supply of services amounting to $ 5,00,000/- from
a US based client. Fury Ltd. is unable to supply the entire services from India and asks
Neik Inc., Mexico (who is not an establishment of Fury Ltd.) to supply a part of the
services, i.e. 40% of the total contract value to the US client. Fury Ltd. raised the
invoice for entire value of $ 5,00,000 but the US client paid $ 3,00,000 to Fury Ltd.
and $ 2,00,000 directly to Neik Inc., Mexico which is approved by a special order of
RBI. Fury Ltd. also paid IGST@ 18% on the services imported from Neik Inc. Mexico.
Assuming all the conditions of section 2(6) of the IGST Act, 2017are fulfilled,
determine the value of export of services:
(a) $ 3,00,000
(b) $ 5,00,000
(c) $ 3,90,000
(d) $ 5,90,000
Answer: (b)
November 2019:
3. For the purposes of rule 7 (Deductive Value) of the Customs (Determina tion of Value
of Imported Goods) Rules, 2007, determine the unit price in greatest aggregate
quantity:
A Ltd. makes two sales. In the first sale, 500 units are sold at a price of 95. In the second
sale, 400 units are sold at a price of Rs. 100.
(a) 95
(b) 100
(c) Average of 95 and 100 i.e. (95+100)/2 = 97.5
(d) Insufficient data
Answer: (a)

PAGE NO.

Booklet MCQs:
4. Fury Ltd. has received an order for supply of services amounting to $ 5,00,000/- from
a US based client. Fury Ltd. is unable to supply the entire services from India and asks
Neik Inc., Mexico (who is not an establishment of Fury Ltd.) to supply a part of the
services, i.e. 40% of the total contract value to the US client. Fury Ltd. raised the
invoice for entire value of $ 5,00,000 but the US client paid $ 3,00,000 to Fury Ltd.
and $ 2,00,000 directly to Neik Inc., Mexico which is approved by a special order of
RBI. Fury Ltd. also paid IGST@ 18% on the services imported from Neik Inc. Mexico.
Assuming all the conditions of section 2(6) of the IGST Act, 2017are fulfilled,
determine the value of export of services:
(a) $ 3,00,000
(b) $ 5,00,000
(c) $ 3,90,000
(d) $ 5,90,000
Answer: (b)
5. Which of the following statements are correct as per the General Rules for the
interpretation of import tariff?
(i) A durable wooden case specially shaped to contain a musical instrument
and presented with the same, shall follow the classification of such musical
instrument.
(ii) Packing materials presented with the goods therein shall be classified with
the goods if they are of a kind normally used for packing such goods
provided such packing materials are clearly suitable for repetitive use.
(iii) The heading which provides the most specific description shall be preferred
to headings providing a more general description.
Choose the most appropriate option.
(a) (i) and (iii)
(b) (ii) and (iii)
(c) (i) and (ii)
(d) (i), (ii) and (iii)
Answer: (a)
PAGE NO.

Chapter 15: Refunds
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Booklet Q5-7 Q5-7 Q5-7 Q5-7 Q5-7 Q5-7
Mock Test Papers:

March 2019:
1. A registered person can claim refund of unutilised input tax credit on zero rated
supplies without payment of tax or the credit accumulated on account of inverted tax
rate structure:
(a) at the end of the tax period, but before the expiry of 2 years from the relevant date.
(b) before the expiry of the tax period.
(c) before the expiry of 3 years from the relevant date.
(d) before the expiry of 18 months from the relevant date.
Answer: (a)
April 2019:
2. As per section 54 of the CGST Act, 2017, any person claiming refund of any tax,
interest, if any, paid on such tax or any other amount paid by him, may make an
application before the expiry of from the ‘relevant date’.
(a) 2 years
(b) 3 years
(c) 4 years
(d) 18 months
Answer: (a)
October 2019:

PAGE NO.

3. Mr. Prabhu Deva, registered under GST in Mumbai, is in the business of trading of
marble handicraft items domestically as also exporting the same. His annual turnover
and input tax details are as follows:
Turnover Tax Paid
Taxable goods 1,25,00,000/- 12,50,000/-
Exported goods 75,00,000/- 5,50,000/-
Exempt goods 50,00,000/- 5,00,000/-
Mr. Prabhu Deva exported the goods under LUT without payment of IGST.
Now, Mr. Prabhu Deva seeks your help in calculating the amount of refund of ITC, which
he is eligible to claim.
(a) 18,00,000/-
(b) 6,75,000/-
(c) 5,40,000/-
(d) 6,90,000/-
Answer: (b)
4. M/s. Raman Plastics is a manufacturer of plastic toys. It is registered person under GST
in Shimla, Himachal Pradesh.
It procures its raw materials from Punjab. During the month of April-2019, it purchased
material of Rs. 35.00 Lakh and paid IGST thereon amounting to Rs. 6.30 Lakh. It
supplied 30% of its production in the State of Jammu and Kashmir, whereas the 70%
of its production was supplied taxable @ 0.1% to a merchant exporter during the month
of Apr-2019.
The returns for the month of April, 2019 were duly filed in time. The last date up to
which the taxpayer can claim refund of input tax credit on account of inverted duty
structure is
(a) 20-Apr-2021
(b) 20-May-2021
(c) 31-Mar-2022
(d) 20-Apr-2020
Answer: (b)
Booklet MCQs:
PAGE NO.

5. M/s. Raman Plastics is a manufacturer of plastic toys. It is registered under GST in

Shimla, Himachal Pradesh.
It procures its raw materials from Punjab. During the month of April 2020, it purchased
material of Rs. 35.00 lakh and paid IGST thereon amounting to Rs. 6.30 lakh. It supplied
30% of its production in the State of Jammu and Kashmir, whereas the 70% of its
production was supplied taxable @ 0.1% to a merchant exporter during the month of April
2020.
The returns for the month of April 2020 were duly filed in time, i.e. within the due date of
20th May, 2020. The last date up to which the taxpayer can claim refund of input tax credit
on account of inverted duty structure is:
(a) 20th April, 2022
(b) 20th May, 2022
(c) 31st March, 2023
(d) 20th April, 2021
Answer: (b)
6. Mr. Chamcham, registered under GST in Delhi, is a domestic trader as also an
exporter of whole-sale goods. His annual turnover and input tax details are as follows:
Turnover (Rs.) Tax paid on inputs (Rs.)

Taxable goods 90,00,000 9,00,000
Exempt goods 10,00,000 1,00,000
Exported goods 15,00,000 2,00,000
No GST is payable on exempt and exported goods. Mr. Chamcham seeks your expert help
in calculating the amount of ITC which he is eligible to claim under GST law. The refund
amount is:
(a) Rs. 12,00,000
(b) Rs. 11,00,000
(c) Rs. 10,00,000
(d) Rs. 9,00,000
Answer: (b)

PAGE NO.

7. Mr. Prabhu, registered under GST in Mumbai, is in the business of trading of marble
handicraft items domestically as also exporting the same. His annual turnover and
input tax details are as follows:
Turnover (Rs.) Tax paid on inputs (Rs.)

Taxable goods 90,00,000 9,00,000
Exempt goods 10,00,000 1,00,000
Exported goods 15,00,000 2,00,000
Mr. Prabhu exported the goods under LUT without payment of IGST. Value of like goods
domestically supplied by him is Rs. 60,00,000.
Mr. Prabhu seeks your help in calculating the amount of refund of ITC which he is eligible
to claim under GST law. The refund amount is:
(a) Rs. 18,00,000
(b) Rs. 6,75,000
(c) Rs. 5,40,000
(d) Rs. 6,90,000
Answer: (b)

PAGE NO.

Chapter 16 : Job Work
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Booklet - Q1 - - - -
Booklet MCQs:
1. Lex Corp. (P) Ltd. is a manufacturer of fruit juices registered under GST. It purchases
plastic bottles and cardboard and sends the same for affixing stickers on plastic bottles
and manufacturing boxes from cardboard to a registered job worker, Hammer
Industries (P) Ltd. These raw materials are sent directly from the place of business of
supplier to the premises of job worker. Lex Corp. (P) Ltd. booked input tax credit on
purchase of such items. The following transactions took place in this regard:
Date of
Date of Date of goods
Value of Receipt of
Input tax purchase of received back
Goods sent Goods by
Paid on goods by Lex from Hammer
To job Hammer
such goods Corp. Industries
worker Industries
(P) Ltd. (P) Ltd.
(P) Ltd.
Rs. 50,000 Rs. 6,000 10.07.2019 15.07.2019 12.07.2020
Rs. 2,00,000 Rs. 24,000 25.09.2019 27.09.2019 13.10.2020
Rs. 8,00,000 Rs. 96,000 22.12.2019 25.12.2019 16.08.2021
Rs. 10,00,000 Rs. 1,20,000 21.01.2020 25.01.2020 23.01.2021
Rs. 3,50,000 Rs. 42,000 24.02.2020 26.02.2020 28.02.2021
Determine the total amount to be added to the output tax liability of Lex Corp. (P) Ltd. in
case of violation of provisions of section 143 of the CGST Act, 2017 in different point of
times.
(a) Rs.2,88,000 + Interest @ 18%
(b) Rs. 2,88,000 + Interest @ 24%
(c) Rs. 1,62,000 + Interest @ 24%
(d) Rs. 1,62,000 +Interest @ 18%
Answer: (d)

PAGE NO.

Chapter 17: Assessment & Audit
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Booklet Q4-6 Q4-6 Q4-6 Q4-6 Q4-6 Q4-6
Mock Test Papers:

March 2019:
1. The time-limit for issuance of order of best judgment assessment under CGST Act,
2017 is:
(a) 5 years from the date specified for furnishing of the annual return for the financial
year to which the tax not paid relates.
(b) 4 years from the date specified for furnishing of the annual return for the financial
(c) 3 years from the date specified for furnishing of the annual return for the financial
Answer: (a)
2. Ms. Reena Banerji is engaged in retail business of selling mobile phones in the State
of West Bengal. She has effected supplies to the customers in the State of Uttar Pradesh
and Haryana. Her total turnover during the financial year ending 31st March, 20XX
is
Rs.18,00,000. Owing to low profit margins in the business, she has decided to shut
down the business in April 20XX.
The proper officer has collected evidences of the inter -State sale of mobile phones
effected by Ms. Reena Banerjee during the FY ending 31st March 20XX. Now, the
proper officer wants to make the assessment as she was liable for registration but did
not get herself registered.
You are required to assist the proper officer by determining which assessment can be
done in this case under the CGST Act, 2017?
(a) Self-assessment

PAGE NO.

(b) Provisional Assessment

(c) Assessment of un-registered persons
(d) Special assessment
Answer: (c)
November 2019:
3. An appeal to the High Court can be filed under the CGST Act, 2017 in the following
cases:
i. By a person aggrieved against the order passed by the State bench or Area bench
of the Appellate Tribunal.
ii. By a person aggrieved against the order passed by the National bench or
Regional bench of the Appellate Tribunal.
iii. For matter involving substantial question of law.
iv. All of the above.
Choose the correct option from the following:
(a) (i) and (ii)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) (iv)
Answer: (b)
Booklet MCQs:
4. The time-limit for issuance of order of best judgment assessment is:
(a) 5 years from the date specified for furnishing of the annual return for the financial
(b) 4 years from the date specified for furnishing of the annual return for the financial
(c) 3 years from the date specified for furnishing of the annual return for the financial
Answer: (a)

PAGE NO.

5. In respect of a consignment supplied on 20th August, provisional assessment was

resorted to. The assessment was finalized on 20th November and the taxpayer
became liable to pay differential IGST of Rs. 10,000. The taxpayer paid this amount
on 20th February next year. The number of days for which the taxpayer is liable to pay
interest are-
(a) 184 days
(b) 153 days
(c) 92 days
(d) 204 days
Answer: (b)
6. Reena Banerji & Associates is engaged in retail business of selling mobile phones in
the State of West Bengal. It has effected supplies to the customers in the State of Uttar
Pradesh and Haryana. Its total turnover during the current financial year is
Rs.18,00,000. Owing to low profit margins in the business, she has decided to shut
down the business in the next financial year.
The proper officer has collected evidence of the inter-State sales of mobile phone
effected by Reena Banerji & Associates during the current financial year. Now, the
proper officer wants to make the assessment as it was liable for registration but did not
get itself registered under GST.
You are required to assist the proper officer by determining which assessment can be
done in this case under the CGST Act, 2017?
(a) Self-assessment
(b) Provisional Assessment
(c) Assessment of unregistered persons
(d) Special assessment
Answer: (c)

PAGE NO.

Chapter 18 : Inspection, Search, Seizure & Arrest
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MTP Q1-2 Q3 - - - -
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Booklet - Q4 - - - -Q5
Mock Test papers:

March 2019:
1. A registered person, who is under investigation for an offence under Chapter XIX of
the CGST Act, 2017, needs to retain the books of accounts/other records pertaining to
such investigation until the expiry of:
(a) 72 months from the due date of furnishing of annual return for the year pertaining
to such accounts and records.
(b) 1 year after final disposal of such investigation.
(c) (a) or (b), whichever is later
Answer: (c)
2. Inspection under CGST Act, 2017 can be ordered if the taxable person has:
(a) suppressed any transaction of supply of goods or services
(b) suppressed stock of goods in hand
(c) contravened any provision of the GST law to evade tax
(d) All of the above
Answer: (d)
October 2020:
3. If a taxable person has done the following act, inspection can be ordered:
i. Suppression of any transaction of supply of goods or services
ii. Suppression of stock of goods in hand
iii. Contravention of any provision of the GST law to evade tax
PAGE NO.

(a) (i) and (ii)

(b) (ii) and (iii)
(c) (i) and (iii)
Answer: (d)
Booklet MCQs:
4. For which of the following acts done by a taxable person, inspection can be ordered
under GST law?
i. Suppression of any transaction of supply of goods or services
ii. Suppression of stock of goods in hand
iii. Contravention of any of the provisions of the GST law to evade tax
(a) (i), (ii)
(b) (i), (iii)
(c) (ii), (iii)
(d) (i), (ii), (iii)
Answer: (d)
5. During access to any business premises under section 71, which of the following
records can be inspected by the officers:
I. Trial balance
II. Statements of annual financial accounts, duly audited,
wherever required;
III. Cost audit report
IV. Income-tax audit report
(a) (i) and (ii)
(b) (i), (ii) and (iv)
(c) (ii), (iii) and (iv)
Answer: (d)

PAGE NO.

Chapter 19 : Demands & Recovery
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Booklet Q2-3 Q2-3 Q2-3 Q2-3 Q2-3 Q2-3
Mock Test Papers:
March 2019:
1. Rochester Private Limited has been issued a show cause notice (SCN) on 31.08.2021
under section 73(1) of the CGST Act, 2017 on account of short payment of tax during
the period between 01.07.2017 and 31.12.2017. As per section 73(1), in the given
case, SCN can be been issued latest by
(a) 31.12.2021
(b) 30.09.2021
(c) 30.06.2021
(d) 31.12.2020
Answer: (b)
Booklet MCQs:
2. Under GST law, time-limit for issuance of show cause notice in case of non-payment
of ITC is on account of reasons other than fraud, wilful misstatement or suppression of
facts, etc. is:
(a) 2 years and 9 months from the due date of filing Annual Return for the Financial
Year to which the demand pertains.
(b) 3 years from the due date of filing Annual Return for the Financial Year to which
the demand pertains.
(c) 4 years and 6 months from the due date of filing Annual Return for the Financial
(d) 5 years from the due date of filing Annual Return for the Financial Year to which
Answer: (a)

PAGE NO.

3. Time-limit for issuance of show cause notice under GST law in case of any amount
collected as tax, but not paid to the Central Government is:
(a) 2 years and 9 months from the due date of filing Annual Return for the Financial
(b) 3 years from the due date of filing Annual Return for the Financial Year to which
(c) 4 years and 6 months from the due date of filing Annual Return for the Financial
Answer: (d)

PAGE NO.

Chapter 20 : Liability to Pay Tax in certain cases
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Booklet Q1-2 Q1-2 Q1-2 Q1-2 Q1-2 Q1-2
Booklet MCQs:
1. Mohandas has supplied goods to Karamchand, under his own invoice, on behalf of his
principal Krishnadev. Which of the following statements is correct?
(a) Mohandas shall be jointly and severally liable to pay the GST payable on such
goods.
(b) Krishnadev shall be jointly and severally liable to pay the GST payable on such
goods.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: (c)
2. Which of the following statements are true in case of retirement of a partner from the
firm, under GST law?
(a) Retiring partner and not the firm shall intimate the date of his retirement to the
Commissioner. Retiring partner shall be liable to pay tax, interest or penalty due up
to the date of such intimation.
(b) The firm and not the retiring partner shall intimate the date of retirement of such
partner to the Commissioner. Retiring partner shall be liable to pay tax, interest or
penalty due up to the date of such intimation.
(c) Either retiring partner or the firm, shall intimate the date of retirement of such
penalty due up to the date of his retirement, whether determined or not, on that date.
(d) Either retiring partner or the firm, shall intimate the date of retirement of such
penalty due up to the date of such intimation.
Answer: (c)

PAGE NO.

Chapter 21: Offences & Penalties
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Booklet Q7-9 Q7-9 Q7-9 Q7-9 Q7-9 Q7-9 Q10
Mock Test Papers:
March 2019:
1. Shagun started supply of goods in Vasai, Maharashtra from 01.01.20XX. Her turnover
exceeded Rs. 20 lakhs on 25.01.20XX. However, she didn’t apply for registration.
Determine the amount of penalty, if any, that may be imposed on Shagun under section
122(1) of the CGST Act, 2017 on 31.03.20XX, if the tax evaded by her, as on said date,
on account of failure to obtain registration is Rs. 1,26,000:
(a) Rs. 10,000
(b) Rs. 1,26,000
(c) Rs. 12,600
Answer: (b)
April 2019:
2. Sukanya, a registered supplier, failed to pay the GST amounting to Rs. 5,000 for the
month of January, 20XX. The proper officer imposed a penalty on Sukanya for failure
to pay tax. Sukanya believes that it is a minor breach and in accordance with the
provisions of section 126 of the CGST Act, 2017, no penalty is imposable for minor
breaches of tax regulations. In this regard, which of the following statements is true?
(a) Penalty is leviable on Sukanya since the breach is considered as a ‘minor breach’
only if amount of tax involved is less than Rs. 5,000
(b) Penalty is not leviable on Sukanya since the breach is considered as a ‘minor
breach’ if amount of tax involved is up to Rs. 5,000
(c) Penalty is leviable on Sukanya since the breach is considered as a ‘minor breach’
only if amount of tax involved is Nil.
Answer: (a)

PAGE NO.

October 2019:
month of January, 20XX. The proper officer imposed a penal ty on Sukanya for failure
(e) Penalty is leviable on Sukanya since the breach is considered as a ‘minor breach’
(f) Penalty is not leviable on Sukanya since the breach is considered as a ‘minor
breach’ if amount of tax involved is upto Rs. 5,000
(g) Penalty is leviable on Sukanya since the breach is considered as a ‘minor breach’
(h) None of the above.
Answer: (a)
May 2020:
4. In which of the following cases, compounding of offence is not allowed under section
138 of the CGST Act, 2017?
➢ a person who has been allowed to compound once in respect of any of the offences
specified in clauses (a) to (f) of section 132(1) of the CGST Act, 2017.
➢ a person who has been convicted for an offence under GST law by a Court.
➢ a person who has been accused of committing an offence under GST law which is
also an offence under any other law for the time being in force.
➢ All the cases covered in (a), (b) and (c) above.
Answer: (d)
April 2021:
➢ a person who has been allowed to compound once in respect of any of the offences
specified in clauses (a) to (f) of section 132(1) of the CGST Act, 2017.
➢ a person who has been convicted for an offence under GST law by a Court.
➢ a person who has been accused of committing an offence under GST law which is
also an offence under any other law for the time being in force.
➢ All the cases covered in (a), (b) and (c) above.
PAGE NO.

Answer: (d)
May 2019:
6. Mr. Topinath, an unregistered person in Delhi, who has an aggregate turnover of Rs.16
lakh sells mobile phones to Mr. Gopinath, a person registered under GST in Uttar
Pradesh. Whether any penalty is leviable on Mr. Topinath, for such supply and if yes,
what is the maximum amount of penalty that can be levied on Mr. Topinath:-
(a) No penalty since there is no default on part of Mr. Topinath as his turnover is below
threshold limit.
(b) Yes; an amount equivalent to the tax evaded or Rs. 10,000/ -, whichever is lower.
(c) Yes; an amount equivalent to the turnover or Rs. 10,000/-, whichever is higher.
(d) Yes; an amount equivalent to the tax evaded or Rs. 10,000/ -, whichever is higher.
Answer: (d)
Booklet MCQs:
i. A person who has been allowed to compound once in respect of any of the offences
specified in clauses (a) to (f) of section 132(1) of the CGST Act, 2017
ii. A person who has been convicted for an offence under GST law by a Court
iii. A person who has been accused of committing an offence under GST law which is
also an offence under any other law for the time being in force
(a) (i), (ii)
(b) (i), (iii)
(c) (ii), (iii)
(d) (i), (ii), (iii)
Answer: (d)
month of January, 20XX. The proper officer imposed a penalty on Sukanya for failure

PAGE NO.

(i) Penalty is leviable on Sukanya since the breach is considered as a ‘minor breach’
(j) Penalty is not leviable on Sukanya since the breach is considered as a ‘minor
breach’ if amount of tax involved is upto Rs. 5,000
(k) Penalty is leviable on Sukanya since the breach is considered as a ‘minor breach’
(l) None of the above.
Answer: (a)
9. Minimum and maximum limit for amount for compounding of offences under section
138 of the CGST Act, 2017 are:
(a) Minimum: Higher of 50% of tax involved, or Rs. 10,000; Maximum: Higher of
150% of tax involved, or Rs. 30,000
(b) Minimum: Lower of 50% of tax involved, or Rs. 10,000; Maximum: Higher of
(c) Minimum: Higher of 50% of tax involved, or Rs. 10,000; Maximum: Lower of
(d) Minimum: Lower of 50% of tax involved, or Rs. 10,000; Maximum: Lower of
Answer: (a)
10. Dharampal & Co., registered under GST in Rajasthan, issued an invoice of ₹
5,00,00,000 (excluding GST) to Popatlal & Co. without supplying any goods or
services, at the advice of its accountant – Mr. Sudhanshu. GST @ 18% was charged
in this invoice. Popatlal & Co. availed the ITC on the basis of said invoice and
utilised it in the same month. Determine the amount of penalty leviable in this case.
(a) Dharampal & Co.: ₹ 90,00,000; Popatlal & Co.: ₹ 90,00,000;
Mr. Sudhanshu: Nil
(b) Dharampal & Co.: ₹ 90,00,000; Popatlal & Co.: ₹ 90,00,000;
Mr. Sudhanshu: ₹ 90,00,000
(c) Dharampal & Co.: Nil; Popatlal & Co.: Nil; Mr. Sudhanshu:₹ 90,00,000
(d) Dharampal & Co.: ₹ 10,000; Popatlal & Co.: ₹ 10,000; Mr. Sudhanshu: Nil
Answer: (b)

PAGE NO.

Chapter 22 : Appeals & Revisions
A empts
MTP Q1 Q2-3 - - Q4 -
RTP - - - - - -
Booklet Q5-7 Q5-7 Q5-7 Q5-7 Q5-7 Q5-7
Mock Test Papers:

April 2019:
1. Rupam wishes to file an appeal to Appellate Tribunal. In which of the following cases,
the Appellate Tribunal cannot refuse to admit his appeal as per the GST laws?
i. Amount of tax/ ITC or difference in tax/ difference in ITC involved exceeds Rs .
50,000
ii. Amount of fine, fee or penalty determined by the order exceeds Rs. 50,000
iii. Amount of tax/ ITC or difference in tax/ difference in ITC involved is Rs. 50,000
iv. Amount of fine, fee or penalty determined by the order is Rs. 50,000
v. Amount of tax/ ITC or difference in tax/ difference in ITC involved is less than Rs.
50,000
vi. Amount of fine, fee or penalty determined by the order is less than Rs. 50,000
(a) i. and ii.
(b) i. and iii.
(c) ii. and iv.
(d) v. and vi.
Answer: (a)
October 2019:
2. Rupam wishes to file an appeal to Appellate Tribunal. In which of the following cases,
the Appellate Tribunal cannot refuse to admit his appeal as per the GST laws?
i. Amount of tax/ ITC or difference in tax/ difference in ITC involved exceeds Rs.
50,000
PAGE NO.

ii. Amount of fine, fee or penalty determined by the order exceeds Rs. 50,000
iii. Amount of tax/ ITC or difference in tax/ difference in ITC involved is Rs. 50,000
iv. Amount of fine, fee or penalty determined by the order is Rs. 50,000
v. Amount of tax/ ITC or difference in tax/ difference in ITC involved is less than Rs.
50,000
vi. Amount of fine, fee or penalty determined by the order is less than Rs. 50,000
(a) i & ii.
(b) i &iii.
(c) ii & iv.
(d) v & vi.
Answer: (a)
October 2019:
3. Mr. A, a sole proprietor, has to appear before the Appellate Authority. He decides to
appear by an authorized representative. Which of the following persons can be
appointed as ‘authorized representative’ of Mr. A under GST law?
(a) Sohan, his son, who has been dismissed from a Government service lately.
(b) Rohan, a Company Secretary, who has been adjudged insolvent.
(c) Mukul, a practicing High Court advocate.
(d) All of the above.
Answer: (c)
March 2021:
4. Being aggrieved by the order of proper officer, a tax payer filed an appeal for issue of
pending refund amount. The Appellate authority ordered in favour of tax payer and
granted refund of Rs.5,00,000/- and interest of Rs.80,000 on that refund amount
totalling to Rs. 5,80,000 on 06.10.2020. In its order, Authority instead of adding the
interest to the refund, mistakenly subtracted Rs. 80,000 and refund granted in the order
totalled to Rs. 4,20,000. The taxpayer vexed up with the next process and accepted Rs.
4,20,000 as refund and did not apply for rectification. The authority, Suo moto wants
to rectify the mistake after 3 years. What is the time limit for rectification of mistake
apparent from record?
(a) 3 months from the date of issue of order i.e., 06.01.2021.
(b) 6 months from the date of issue of order i.e., 06.04.2021.

PAGE NO.

(c) No time limit for rectification of mistake.

(d) Since tax payer has not applied for rectification, mistake cannot be rectified.
Answer: (c)
Booklet MCQs:
5. State whether following statements are true or false:
i. Any person aggrieved by any decision or order passed by an adjudicating authority
under the CGST Act, 2017 may appeal to such Appellate Authority as may be
prescribed within 3 months from the date on which the said decision or order is
communicated to him.
ii. No appeal shall be filed to Appellate Authority unless the appellant has paid sum
equal to twenty five percent of the remaining amount of tax in dispute arising from
the said order, in relation to which appeal is filed.
iii. Adjournment of appeal shall not be granted more than three times to a party during
hearing of the appeal.
iv. The Appellate Authority shall have the power to refer back the case to adjudicating
authority that passed the said decision or order.
(a) True, True, True, False
(b) False, True, True, False
(c) True, False, True, False
(d) False, False, False, True
Answer: (c)
6. Mr. A, a sole proprietor, has to appear before the Appellate Aut hority. He decides to
appear through an authorized representative. Which of the following persons can be
appointed as ‘authorized representative’ of Mr. A under GST law?
i. Sohan, his son, who has been dismissed from a Government service lately.
ii. Rohan, a Company Secretary, who has been adjudged insolvent.
iii. Mukul, a practicing High Court advocate.
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii)
(d) (ii)

PAGE NO.

Answer: (c)
7. An appeal to the High Court can be filed under the CGST Act, 2017 in the following
cases:
i. By a person aggrieved against the order passed by the State bench or Area bench
of the Appellate Tribunal
ii. By a person aggrieved against the order passed by the National bench or
Regional bench of the Appellate Tribunal
iii. For matter involving substantial question of law Choose the correct option from
the following:
(a) (i) and (ii)
(b) (i) and (iii)
(c) (ii) and (iii)
Answer: (b)

PAGE NO.

Chapter 23 : Advance Rulings
A empts
MTP - - - - - -
RTP - Q1 - - - -
November 2019:
1. State whether following statements are true or false w.r.t. provisions relating to
Advance Ruling.
i. Questions on which the advance ruling can be sought under this Act, include rate
of tax applicable to a particular supply and place of supply.
ii. Rectification of advance ruling is not possible once the Authority for Advance
Ruling has passed the orders.
iii. The Authority for Advance Ruling shall pronounce its ruling within 90 days from
the date of receipt of application.
iv. Authority for Advance Ruling may accept application even if the question raised in
the application is already pending or decided in any proceedings under any of the
provisions of the CGST Act, 2017 qua the applicant.
v. Authority for Advance Ruling may, by order, declare such advance ruling void ab-
initio if it finds out that such ruling is obtained by suppression of material facts,
fraud or misrepresentation of facts.
Choose from following options:
(a) False, False, True, False, True
(b) False, True, True, False, True
(c) True, True, False, False, True
(d) False, False, False, False, True
Answer: (a)
Booklet MCQs:
2. State whether following statements are true or false w.r.t. provisions relating to
Advance Ruling.

PAGE NO.

i. Questions on which the advance ruling can be sought under this Act, include
rate of tax applicable to a particular supply and place of supply.
ii. Rectification of advance ruling is not possible once the Authority for
Advance Ruling has passed the orders.
iii. The Authority for Advance Ruling shall pronounce its ruling within 90 days
from the date of receipt of application.
iv. Authority for Advance Ruling may accept application even if the question
raised in the application is already pending or decided in any proceedings
under any of the provisions of the CGST Act, 2017 qua the applicant.
v. Authority for Advance Ruling may, by order, declare such advance ruling
void ab- initio if it finds out that such ruling is obtained by suppression of
material facts, fraud or misrepresentation of facts.
Choose from following options:
i. False, False, True, False, True
ii. False, True, True, False, True
iii. True, True, False, False, True
iv. False, False, False, False, True
Answer: (a)
Chapter 24 : Miscellaneous Provisions
A empts
MTP Q1-2 Q3 Q4 - - -
RTP - - - - - -
Mock Test Papers:
April 2019:
1. GST compliance rating shall be assigned to:
(a) Only a person who is liable to deduct TDS/ collect TCS
(b) only a composition dealer
PAGE NO.

(c) only an Input Service Distributor

(d) every registered person
Answer: (d)
2. Where the National Anti-Profiteering Authority determines that a registered
person has not passed on the benefit of input tax credit to the recipient by way of
commensurate reduction in price , the Authority may order:
i. reduction in prices
ii. imposition of prescribed penalty
iii. cancellation of registration
Which of the above options are correct?
(a) i. and ii.
(b) i., ii. and iii.
(c) i. and iii.
(d) i.
Answer: (b)
October 2019:
State which of the following statement is incorrect:
i. In agent, supplying goods on behalf of principal where invoice is issued in the name
of principal, is required to get compulsorily registered under GST.
ii. Persons who are required to deduct tax under section 51, whether or not separately
registered under this Act are compulsory required to get registered under GST
without any threshold.
iii. Every person supplying online information and database access or retrieval services
from a place outside India to a registered person in India is compulsory required to
get registered under GST without any threshold.
iv. Persons who supply services, other than supplies specified under sub-section (5) of
section 9, through such electronic commerce operator who is required to collect tax
at source under section 52 are compulsory required to get registered under GST
without any threshold.
(a) (i), (ii)
(b) (iii), (iv)
(c) (i), (iii), (iv)
PAGE NO.


Answer: (c)
May 2020:
3. Where the National Anti-Profiteering Authority determines that a registered person
has not passed on the benefit of input tax credit to the recipient by way of
commensurate reduction in price, the Authority may order:
(a) i and ii.
(b) i, ii. and iii.
(c) i and iii.
(d) i.
Answer: (b)
April 2021:
4. Where the National Anti-Profiteering Authority determines that a registered person
has not passed on the benefit of input tax credit to the recipient by way of
commensurate reduction in price, the Authority may order:
(a) i and ii.
(c) i and iii
(d) i.
Answer: (b)
Booklet MCQs:

PAGE NO.

5. Where the National Anti-Profiteering Authority determines that a registered person has
not passed on the benefit of input tax credit to the recipient by way of commensurate
reduction in price, the Authority may order:
(a) i and ii.
(c) i and iii
(d) i.
Answer: (b)
Chapter 1: Levy of and Exemptions from Customs Duty
A empts
MTP Q1-2 Q3-5 Q6-8 Q9 Q10-11 Q12-14
RTP Q16 Q15 - - - -
Booklet Q17-26 Q17-26 Q17-26 Q17-26 Q17-26 Q17-26
Mock Test papers:
March 2019:
1. Under the Customs Act, 1962, the relevant date for determining the rate of exchange
in case of imported goods is:
(a) Date when the vessel arrives in India
(b) Date of presentation of bill of entry
PAGE NO.

(c) Date of examination of goods by proper officer

(d) Date of deposit of duty
Answer: (b)
2. Anti-Dumping duty is calculated as
(a) Higher of margin of dumping or injury margin
(b) Lower of margin of dumping or injury margin
(c) Higher of export price or normal value
(d) Lower of export price or normal value
Answer: (b)
October 2019:
3. Which of the following statement(s) is/are correct?
i. Special exemption under section 25 of the Customs Act is granted by issuing a
notification;
ii. General exemption under section 25 of the Customs Act is granted by issuing an
order;
iii. Special exemption is required to be published in official gazette;
iv. General exemption is not required to be published in official gazette.
(a) All of above
(b) None of above
(d) (ii) and (iv)
Answer: (b)
October 2019:
4. Read the following and choose the correct option:
i. Indian customs waters extend up to 12 nautical miles;
ii. Indian customs waters extend up to 24 nautical miles;
iii. Indian customs waters extend up to exclusive economic zone of India;
iv. Indian customs waters include territorial waters and extend up to 200 nautical miles.
(a) Only (ii)
PAGE NO.

(b) (iii) and (iv)

(c) (ii) and (iv)
(d) Only (iv)
Answer: (b)
5. The taxable event under the Customs Act, 1962 is:
(a) Import of goods into India/ export of goods from India;
(b) Supply of goods into India/ Supply of goods from India to outside India;
(c) Sale of goods into India/ Sale of goods outside India;
(d) Manufacture of goods into India for supply outside India.
Answer: (a)
May 2020:
6. Which of the following is correct for destroyed goods under section 23 of the Customs
Act, 1962?
(a) It is only applicable in case of total loss of goods even if the same can be recovered.
(b) The importer is not required to pay duty on such goods.
(c) The provisions are also applicable even if goods are destroyed after warehousing.
(d) The importer need not prove the loss to the proper officer
Answer: (c)
7. In which of the following cases, importer can claim pilferage and choose not to pay
duty under section 13 of the Customs Act, 1962?
i. Goods pilfered while on high seas;
ii. Goods pilfered before unloading;
iii. Goods pilfered after unloading but before order for home consumption given by
proper officer;
iv. Goods cleared for home consumption.
(a) (i) and (ii)
(b) (i) and (iii)
(c) Only (ii)
(d) Only (iii)

PAGE NO.

Answer: (d)
8. In which of the following cases, can an importer claim abatement of duty under section
22 of the Customs Act, 1962?
i. Goods pilfered during unloading;
ii. Goods damaged by accident (due to negligence of the importer) after unloading but
before examination for assessment by customs authorities;
iii. Goods destroyed by accident while in warehouse(due to negligence of the
importer);
iv. Goods deteriorated by accident (not due to negligence of the importer) after
unloading but before examination for assessment by customs authorities.
(a) Only (iv)
(b) Only (iii)
(c) Both (i) and (iii)
(d) Only (ii)
Answer: (a)
October 2020:
(a) Import of goods into India/ export of goods from India;
(b) Supply of goods into India/ Supply of goods from India to outside India;
(c) Sale of goods into India/ Sale of goods outside India;
(d) Manufacture of goods into India for supply outside India.
Answer: (a)
March 2021:
10. Which of the following statements is correct in case of pilfered goods under Customs?
(a) Refund of duty can be claimed in case of pilfered goods
(b) Duty is not required to be paid in case of pilfered goods.
(c) Duty drawback can be availed in case of pilfered goods.
(d) Duty is payable at the reduced rates in case of pilfered goods.
Answer: (b)

PAGE NO.

11. Which of the following statements is most appropriate in case of dutiable goods under
customs law?
(a) Dutiable goods means any goods which are chargeable to duty.
(b) Dutiable goods means any goods on which duty has not been paid.
(c) Dutiable goods means any goods which are chargeable to duty and on which duty
has been paid.
(d) Dutiable goods means any goods which are chargeable to duty and on which duty
has not
Answer: (d)
April 2021:
Act, 1962?
(a) It is only applicable in case of total loss of goods even if the same can be recovered.
(b) The importer is not required to pay duty on such goods.
(c) The provisions are also applicable even if goods are destroyed after warehousing.
(d) The importer need not prove the loss to the proper officer.
Answer: (c)
duty under section 13 of the Customs Act, 1962?
i. Goods pilfered while on high seas;
ii. Goods pilfered before unloading;
iii. Goods pilfered after unloading but before order for home consumption given by
proper officer;
iv. Goods cleared for home consumption.
(a) (i) and (ii)
(b) (i) and (iii)
(c) Only (ii)
(d) Only (iii)
Answer: (d)

PAGE NO.

i. Goods pilfered during unloading
before examination for assessment by customs authorities
iii. Goods destroyed by accident while being removed from the warehouse after
clearance for home consumption
iv. Goods damaged by accident (not due to negligence of the importer) after unloading
but before examination for assessment by customs authorities.
(a) Only (iv)
(b) Only (iii)
Answer: (a)
November 2019:
…….
…….
15. Which of the following combinations is correct?
Situation Consequence
1. Goods pilfered 1. Abatement of duty
2. Goods lost or destroyed 2. No liability pay customs duty
3. Goods damaged or deteriorated 3. Remission of duty
(a) 1 and 1, 2 and 2, 3 and 3

(b) 1 and 3, 2 and 1, 3 and 2
(c) 1 and 2, 2 and 3, 3 and 1
(d) 1 and 2, 2 and 1, 3 and 3
Answer: (c)
May 2019:

PAGE NO.

16. Which of the following statements is not correct for pilfered goods under section 13 of
the Customs Act, 1962?
(a) The importer is not required to pay duty on imported goods which are pilfered after
unloading but before being cleared for home consumption.
(b) The importer is not required to pay duty on warehoused goods which are pilfered
before being cleared for home consumption.
(c) The onus to prove the pilferage does not lie on the importer.
(d) If pilfered goods are restored to the importer, he becomes liable to pay duty.
Answer: (b)
Booklet MCQs:
17. Which of the following combinations is correct?
Situation Consequence
1.Goods pilfered 1.Abatement of duty
2.Goods lost or destroyed 2.No liability pay customs duty
3.Goods damaged or deteriorated 3.Remission of duty
(a) 1 and 1, 2 and 2, 3 and 3

(b) 1 and 3, 2 and 1, 3 and 2
(c) 1 and 2, 2 and 3, 3 and 1
(d) 1 and 2, 2 and 1, 3 and 3
Answer: (c)
18. Read the following and choose the correct option:
i. Indian customs waters extend up to 12 nautical miles;
ii. Indian customs waters extend up to 24 nautical miles;
iii. Indian customs waters extend up to exclusive economic zone of India;
iv. Indian customs waters include territorial waters and extend up to 200 nautical
miles.
(a) Only (ii)
(b) (iii) and (iv)
(c) (ii) and (iv)
(d) Only (iv)
Answer: (b)
PAGE NO.

(a) import of goods into India/ export of goods from India.
(b) supply of goods into India/ supply of goods from India to outside India.
(c) sale of goods into India/ sale of goods outside India.
(d) manufacture of goods into India for supply outside India.
Answer: (a)
20. What is the relevant date for determining rate of duty in case of warehoused goods
before clearing for home consumption?
(a) Date of presentation of in-bond bill of entry
(b) Date of presentation of ex-bond bill of entry i.e. bill of entry for home consumption
(c) Date of payment of duty
(d) Date of import of goods into India
Answer: (b)
Act, 1962?
(a) It is applicable in case of total loss of goods even if same can be recovered.
(b) The provisions are not applicable if goods are destroyed at the warehouse.
(c) The provisions are also applicable even if goods are destroyed at the warehouse.
(d) The importer need not prove the loss to the proper officer.
Answer: (c)
duty under section 13 of the Customs Act, 1962 provided the goods are not restored to
the importer after pilferage?
i. Goods pilfered while on high seas
ii. Goods pilfered before unloading
iii. Goods pilfered after unloading but before order for home consumption given
by proper officer
iv. Goods cleared for home consumption
(a) (i) and (ii)
(b) (i) and (iii)

PAGE NO.

(c) Only (ii)

(d) Only (iii)
Answer: (d)
i. Goods pilfered during unloading
before examination for assessment by customs authorities
iii. Goods destroyed by accident while being removed from the warehouse after
clearance for home consumption
iv. Goods damaged by accident (not due to negligence of the importer) after unloading
but before examination for assessment by customs authorities
(a) Only (iv)
(b) Only (iii)
Answer: (a)
24. Which of the following statements is/are correct?
(i) Special exemption under section 25 of the Customs Act, 1962 is granted by issuing a
notification.
(ii) General exemption under section 25 of the Customs Act, 1962 is granted by issuing an
order.
(iii) Special exemption is required to be published in official gazette.
(iv) General exemption is not required to be published in official gazette.
(a) (i), (ii), (iii) and (iv)
(b) None of above
(d) (ii) and (iv)
Answer: (b)
25. ABC Ltd. exported certain goods last year. The buyer has sent back those goods since
the same were under warranty and required repairs. Which of the following conditions
PAGE NO.

are to be satisfied by ABC Ltd. to avail exemption on goods re-imported for repairs
under Notification No. 158/95 Cus dated 14.11.1995?
i. ABC Ltd., at the time of importation, executes a bond.
ii. Goods must be re-exported within 6 months or 1 year (if time is extended) of the
date of re-importation.
iii. In case goods are not repaired, new goods are to be sent by ABC Ltd. within 6
months.
(a) (i) and (iii)
(b) (i), (ii) and (iii)
(c) (ii) and (iii)
(d) (i) and (ii)
Answer: (d)
26. XYZ Ltd. sent certain goods abroad for repairs. XYZ Ltd. has been advised by their
consultants that they will have to pay customs duty only on fair cost of repairs, freight
and insurance charges, both ways, on re-import of exported goods under Notification
No. 45/2017 Cus dated 30.06.2017 provided they fulfill following conditions:
i. The re-importation is done within 3 years or, if time is extended, within 5 years.
ii. The exported and re-imported goods are same.
iii. The ownership of goods should not have changed. Which one of the above-mentioned
conditions is/are correct?
(b) (ii) and (iii)
(c) (i) and (iii)
(d) Only (ii)
Answer: (a)

PAGE NO.

Chapter 2 : Types of duty
A empts
MTP Q1 Q2-3 - Q4 - -
RTP Q7 - - Q5 - -
Booklet Q8-15 Q8-15 Q8-15 Q8-15 Q8-15 Q8-15
Mock Test papers:

April 2019:
1. The integrated tax leviable on imported goods is levied-
(a) as an additional duty of customs under section 3(7) of the Customs Tariff Act, 1975;
(b) integrated tax under section 5 of the Integrated Goods and Services Tax Act, 2017;
(c) as a duty of customs under the Customs Tariff Act, 1975 read with Integ rated Goods
and Services Tax Act, 2017;
Answer: (b)
October 2019:
2. Countervailing duty under section 9 of the Customs Tariff Act shall not be levied unless
it is determined that:
i. Subsidy relates to export performance;
ii. Subsidy relates to use of domestic goods over imported goods in export article;
iii. Subsidy is conferred on all persons engaged in the manufacture of export article.
(a) All of above
(b) Only (iii)
(c) (ii) and (iii)
(d) (i) and (ii)
Answer: (d)
PAGE NO.

(a) Higher of margin of dumping or injury margin;

(b) Lower of margin of dumping or injury margin;
(c) Higher of export price or normal value;
(d) Lower of export price or normal value.
Answer: (b)
October 2020:
4. Countervailing duty under section 9 of the Customs Tariff Act shall no t be levied unless
it is determined that:
i. Subsidy relates to export performance;
ii. Subsidy relates to use of domestic goods over imported goods in export article;
iii. Subsidy is conferred on all persons engaged in the manufacture of export article.
(a) All of above
(b) Only (iii)
(c) (ii) and (iii)
(d) (i) and (ii)
Answer: (d)
(a) Higher of margin of dumping or injury margin;
(b) Lower of margin of dumping or injury margin;
(c) Higher of export price or normal value;
(d) Lower of export price or normal value.
Answer: (b)
Revision Test Papers :
November 2020:
6. Which of the following statements is false?
(a) Anti-dumping duty is imposed when any article is exported from any country to
India at more than its normal value.
(b) Safeguard duty shall not be applicable on articles imported by a 100% EOU or SEZ
unit unless specifically made applicable.

PAGE NO.

(c) Safeguard duty shall not be imposed on articles originating from developing
country if the share of imports of that article from that country ≤ 3% of the total
imports of that article into India.
(d) Central Government may exempt notified quantity of any article, when imported
from any country into India, from whole/part of the safeguard duty.
Answer: (a)
May 2019:
7. Which of the following statements is/are correct for safeguard duty under section 8B
of the Customs Tariff Act, 1975?
i. Safeguard duty is imposed on articles which are imported in increased quantities.
ii. Such increased importation is causing or threatening to cause serious injury
to domestic market.
iii. Safeguard duty can be imposed for a period of 4 years and the period of imposition
can be extended. However, in no case the safeguard duty shall continue to be
imposed beyond a period of 10 years from the date on which it was first imposed.
iv. Safeguard duty can be imposed provisionally also pending final determination
of duty.
a. (i), (ii) and (iii)
b. Only (i) and (iv)
c. None of above
d. All of above
Answer: (d)
Booklet MCQs:
8. Which of the following are levied as additional duties of customs under section 3 of
i. Duty equal to excise duty leviable on like product manufactured in India
ii. Countervailing duty as special additional duty
iii. Special additional duty to counterbalance sales tax
iv. Anti-dumping duty to protect domestic industry

PAGE NO.

(c) (i), (iii) and (iv)

Answer: (d)
9. Safeguard duty cannot be imposed if:
(a) The article on which it is proposed to be imposed originates from a
developed country provided its share of imports is not more than 3% of total
imports of that article in India.
(b) The article on which it is proposed to be imposed originates from a
developing country provided its share of imports is not more than 5% of
total imports of that article in India.
(c) The article on which it is proposed to be imposed originates from more than
one developing country and its aggregate share of imports from developing
countries each with less than 3% share taken together does not exceed 9%
of total imports of that article into India.
(d) The article is imported by a person in special category State.
Answer: (c)
10. Some banks in China are giving interest free loans to its domestic manufacturers for
manufacture of solar panels. This interest free loan would qualify as subsidy for levying
of countervailing duty under section 9 of the Customs Tariff Act, 1975 in India on
import of such solar panels if:
(a) such interest free loan is given by public or Government bank.
(b) such interest free loan is given by private banks on their own without any direction
or instruction from the Government.
(c) Neither (a) nor (b)
(d) Both (a) and (b)
Answer: (a)
11. Countervailing duty under section 9 of the Customs Tariff Act, 1975 shall not be levied
unless it is determined that:
i. subsidy relates to export performance.
ii. subsidy relates to use of domestic goods over imported goods in export article.
iii. subsidy is conferred on all persons engaged in the manufacture of export article.

PAGE NO.

(b) Only (iii)

(c) (ii) and (iii)
(d) (i) and (ii)
Answer: (d)
12. Anti-dumping duty is calculated as follows:
(a) Higher of margin of dumping or injury margin
(b) Lower of margin of dumping or injury margin
(c) Higher of export price or normal value
(d) Lower of export price or normal value
Answer: (b)
13. Which of the following statements is valid under the customs law?
i. Imposition of countervailing duty and anti-dumping duty on same article.
ii. Imposition of countervailing duty on an article for the reason that same is exempt
from duty borne by a like article when meant for consumption in country of origin.
iii. Imposition of anti-dumping duty on articles imported from a member country of
WTO on determination that import of such article materially retards the
establishment of any industry in India.
(b) (i) and (ii)
(c) (i) and (iii)
(d) Only (iii)
Answer: (d)
14. Social welfare surcharge is payable on-
(i) Basic customs duty
(ii) IGST
(iii) Anti-dumping duty
(iv) GST compensation cess
a. Only (i)
b. (i) + (ii) + (iii)

PAGE NO.

c. (i) + (ii) + (iv)

d. (i) + (iii)
Answer: (a)
(a) Anti-dumping duty is imposed when any article is exported from any country to
India at more than its normal value.
(b) Safeguard duty shall not be applicable on articles imported by a 100% EOU or SEZ
unit unless specifically made applicable.
(c) Safeguard duty shall not be imposed on articles originating from developing
country if the share of imports of that article from that country ≤ 3% of the total
imports of that article into India.
(d) Central Government may exempt notified quantity of any article, when imported
from any country into India, from whole/part of the safeguard duty.
Answer: (a)

PAGE NO.

Chapter 3: Classification of Imported & Export Goods
A empts
MTP Q1 - Q2 - Q3-4 -
RTP - - Q5 - - -
Booklet Q6-7 Q6-7 Q6-7 Q6-7 Q6-7 Q6-7
Mock Test Papers:
March 2019:
1. Which of the following statement(s) is/are correct?
i. Cases which are specially designed or fitted to contain a specific article and given
with the articles for which they are intended shall follow the classification of items
which are packed;
ii. Packing materials whether capable of repetitive use or not, cleared along with
goods, are classifiable with goods.
(a) (i)
(b) (ii)
(d) None
Answer: (a)
May 2020:
2. Electric shaving machine is classifiable under following:
8510: Shavers and hair clippers with self-contained electric motors;
8509: Electro mechanical domestic appliances with self-contained electric motor
As per rules of classification, electric shaving machine should be classifiable under
(a) 8510
(b) 8509
(c) More information is needed;
(d) Can be classified under both
Answer: (a)
PAGE NO.

March 2021:
3. Goods other than restricted goods, including edible items, of-- value in a licensing year,
may be exported as a gift.
(a) Rs. 1,00,000
(b) Rs. 2,00,000
(c) Rs. 5,00,000
(d) Rs. 10,00,000
Answer: (c)
April 2021:
4. Electric shaving machine is classifiable under following:
(a) 8510
(b) 8509
(c) More information is needed;
Answer: (a)
Revision test Papers:
May 2020:
5. Outline the stepwise procedure of import of goods into India.
i. Grant of entry inwards to vessel
ii. Filing of Import General Manifest
iii. Unloading of goods
iv. Assessment of goods
v. Filing of Bill of Entry
vi. Payment of duty
(a) (i), (ii), (iii), (iv), (v), and (vi)
(b) (ii), (iii), (i), (iv), (v), and (vi)
PAGE NO.

(c) (iii), (ii), (i), (vi), (v), and (iv)

(d) (ii), (i), (iii), (v), (iv) and (vi)
Answer: (d)
Booklet MCQs:
6. Under the customs law, electric shaving machine is classifiable under following:
(a) 8510
(b) 8509
(c) More information is needed
Answer: (a)
7. Which of the following statements is/are correct?
i. Cases which are specially designed or fitted to contain a specific article and
given with the articles for which they are intended shall follow the classification
of items which are packed.
ii. Packing materials, whether capable of repetitive use or not, cleared along with
goods are classifiable with goods.
(a) (i)
(b) (ii)
(d) Neither (i) nor (ii)
Answer: (a)

PAGE NO.

Chapter 4: Valuations under customs act,1962
A empts
MTP Q1-2 - - - - -
RTP Q5 - - - Q3 Q4
Booklet Q6-15 Q6-15 Q6-15 Q6-15 Q6-15 Q6-15 Q6-16
Mock Test Papers:
March 2019:
1. Prabhat International Ltd. exported some goods to USA by air at an FOB price of US
$ 1,00,000. Other details are as follows:
Rate Rate of Rate of
Particulars of exchange exchange
Date duty notified by prescribed by RBI
CBIC
Presentation 1 US $ = 65 1 US $ = 68
16.04.20XX 12%
of shipping
bill
Let export order 1 US $ = 64 1 US $ = 66
18.05.20XX 10%
The export duty payable by Prabhat International Ltd. is:

(a) 6,50,000
(b) 7,80,000
(c) 7,68,000
(d) 6,40,000
Answer: (a)
April 2019:
2. Certain goods were imported by air. The free on-board value of goods is Rs. 100. The
cost of transport, loading, unloading and handling charges up to place of importation is
Rs. 25. The cost of insurance is Rs.10. For the purposes of rule 10(2) of the Customs
Valuation (Determination of Value of Imported Goods) Rules, 2007, which of the
following shall be added to the value of imported goods?
(a) Cost of transport, loading, unloading and handling charges – Rs. 25; and Cost of
insurance Rs. 10;

PAGE NO.

(b) Cost of transport, loading, unloading and handling charges – Rs. 25; and Cost of
insurance Rs. 1.125
(c) Cost of transport, loading, unloading and handling charges – Rs. 20; and Cost of
insurance Rs. 1.125
(d) Cost of transport, loading, unloading and handling charges – Rs. 20; and Cost of
insurance Rs. 10
Answer: (d)
May 2021:
3. M/s Sohan Enterprises Ltd. had imported goods after paying the customs duty of Rs.
25,00,000 at the time of import. These goods were used and later re-exported after 19
months of import. The amount of duty drawback that M/s Sohan Enterprises Ltd. is
eligible to claim on such re-export made is
(a) Nil
(b) 23,75,000
(c) 20,00,000
(d) 24,00,000
Answer: (a)
Nov 2021:
4. Sapphire Enterprises imported some goods through vessel from USA in the month of
April. The value of goods imported was Rs. 6,50,000.
The date of entry inwards was 21st April (basic customs duty on said date was 10%).
Further, Sapphire Enterprises filed bill of entry for home consumption on 25th April
(basic customs duty on said date was 20%). Applicable rate of integrated tax was 12%
and social welfare surcharge was 10%. Ignore GST compensation cess.
However, before inspection and clearance for home consumption, Sapphire Enterprises
found that the goods had been damaged owing to negligence on part of proper officer
of customs. The proper officer accepted that du e to said damage, the value of the goods
has come down to Rs. 4,00,000.
Compute the total customs duty payable in the given case.
(a) Rs. 97,280
(b) Rs. 2,38,160
(c) Rs. 1,58,080
PAGE NO.

(d) Rs. 1,46,560

Answer: (d)
May 2019:
5. Which of the following statements is/are correct for ‘similar goods’ for valuation
purposes under the Customs Act, 1962?
i. Similar goods although not alike in all respects, have like characteristics and like
component materials which enable them to perform the same functions and to be
commercially interchangeable with the goods being valued having regard to the
quality, reputation and the existence of trade mark.
ii. Similar goods are necessarily produced in the country in which goods being valued
were produced.
iii. Similar goods are necessarily produced by the same person who produced the
goods being valued.
a. (i) and (ii)
b. Only (i)
c. (i) and (iii)
d. All of above
Answer: (a)
Booklet MCQs:
6. For the purposes of rule 7 (Deductive Value) of the Customs (Determination of Value
of Imported Goods) Rules, 2007, determine the unit price in greatest aggregate
quantity:
A Ltd. makes two sales. In the first sale, 500 units are sold at a price of Rs. 95. In the
second sale, 400 units are sold at a price of Rs. 100.
(a) Rs. 95
(b) Rs. 100
(c) Average of Rs. 95 and Rs. 100 i.e. (Rs. 95 + Rs. 100)/2 = Rs. 97.5
(d) Data is insufficient to determine the unit price in greatest aggregate quantity
Answer: (a)
7. Which of the following statements is correct in relation to value of imported goods
determined under rule 4 of the Customs Valuation (Determination of Value of Imported
Goods) Rules, 2007, i.e., transaction value of identical goods:

PAGE NO.

(a) The transaction value of identical goods in a sale at any commercial level and in
substantially the same quantity as the goods being valued shall be used to determine
the value of imported goods.
(b) The transaction value of identical goods in a sale at same commercial level and in
any quantity as the goods being valued shall be used to determine the value of
imported goods.
(c) The transaction value of identical goods in a sale at same commercial level and in
substantially the same quantity as the goods being valued shall be used to determine
the value of imported goods.
(d) The transaction value of identical goods in a sale at any commercial level and in
any quantity as the goods being valued shall be used to determine the value of
imported goods.
Answer: (c)
8. The transaction value of imported goods is not accepted for valuation purposes when:
(i) the use of the imported goods by the buyer is subject to the restrictions imposed by
the seller which substantially affect the value of goods.
(ii) the buyer and seller are not related.
(iii)price is not the sole consideration for sale.
(a) (i) and (iii)
(b) Only (i)
(c) Only (iii)
Answer: (a)
9. The relevant date for determining the rate of exchange in case of imported goods is:
(a) date when the vessel arrives in India.
(b) date of presentation of bill of entry.
(c) date of examination of goods by proper officer.
(d) date of deposit of duty.
Answer: (a)
10. Which of the following statements is/are not correct for ‘identical’ goods for
valuation purposes under the Customs Act, 1962?

PAGE NO.

i. Identical goods are same in all respects, including physical characteristics, quality
and reputation as the goods being valued except for minor differences in appearance
that do not affect the value of goods.
ii. Identical goods can be produced in any country.
iii. Identical goods are produced by same person who produced the goods being valued,
or where no such goods are available, goods produced by a different person.
(b) (i) and (iii)
(c) Only (ii)
(d) Only (iii)
Answer: (c)
11. For valuation purposes under the Customs Act, 1962, which of the following
transactions would be considered as having been made between related persons?
i. A foreign company - A Ltd. having a joint venture with Indian company - B Ltd.
in the name of AB Ltd. A Ltd. holds 51% shareholding in AB Ltd. The transactions
between A Ltd. and AB Ltd.
ii. A foreign company - A Ltd. having a joint venture with Indian company - B Ltd.
in the name of AB Ltd. The transactions between A Ltd. and B Ltd.
iii. A Inc., a company in USA, holding 5% of share capital of importer company - B
Ltd. The transactions between A Inc. and B Ltd.
(b) (i) and (iii)
(c) (i) and (ii)
(d) (ii) and (iii)
Answer: (c)
12. Which of the following is not includible in the transaction value of goods under rule
10(1) of the Customs Valuation (Determination of Value of Imported Goods) Rules,
2007?
(a) Buying Commission
(b) Royalties
(c) License fees
(d) Cost of packing
PAGE NO.

Answer: (a)
13. For determining the CIF price of the imported goods, certain additions have to be made
to the value of imported goods under rule 10(2) of the Customs Valuation
(Determination of Value of Imported Goods) Rules, 2007. If cost of insurance is not
ascertainable from the documents submitted before the customs authorities, then such
amount is determined as follows:
i. 20% of free on board value of goods
ii. 1.125% of free on board value of goods
iii. Where free on board value is not ascertainable, but sum of free on board value and
cost of transport, loading, unloading and handling charges up to place of
importation are available; then 1.125% of such sum
iv. Where free on board value is not ascertainable, but sum of free on board value and
cost of transport, loading, unloading and handling charges up to place of
importation are available; then 20% of such sum
(a) (i) or (iii)
(b) (i) or (iv)
(c) (ii) or (iii)
(d) (ii) or (iv)
Answer: (c)
14. Certain goods were imported by air. The free on board value of goods is Rs. 100. The
cost of transport, loading, unloading and handling charges up to place of importation is
Rs. 25. The cost of insurance is Rs. 10. For the purposes of rule 10(2) of the Customs
Valuation (Determination of Value of Imported Goods) Rules, 2007, which of the
following shall be added to the value of imported goods?
(a) Cost of transport, loading, unloading and handling charges –Rs. 25; and Cost of
insurance Rs. 10
(b) Cost of transport, loading, unloading and handling charges –Rs. 25; and Cost of
insurance Rs. 1.125
(c) Cost of transport, loading, unloading and handling charges –Rs. 20; and Cost of
insurance Rs. 1.125
(d) Cost of transport, loading, unloading and handling charges –Rs. 20; and Cost of
insurance Rs. 10
Answer: (d)

PAGE NO.

15. Which of the following statements is not correct in the context of valuation of imported
goods?
(a) Buying commission is not includible in the value of imported goods.
(b) Rate of exchange notified by CBIC on date of presentation of bill of entry is to be
considered.
(c) For imports by air, the cost of transport, loading, unloading and handling charges
up to place of importation cannot exceed 20% of free on board value of goods.
(d) Social welfare surcharge is leviable on basic customs duty, integrated tax and GST
compensation cess.
Answer: (d)
16. Which of the following duties are excluded while computing social welfare
surcharge (SWS)?
I. Safeguard duty
II. Countervailing duty
III. Social welfare surcharge itself
IV. Anti-dumping duty to protect domestic industry
(c) (i), (iii) and (iv)
Answer: (a)

PAGE NO.

Chapter 5: Importation, Exportation and Transportation of Goods
A empts
MTP - - - - - -
RTP - - - - Q1 -
May 2021:
1. Suhasini Oberoi, an Indian resident who was on a visit to USA, returned after 6 months
for contesting in assembly elections of her State. She was carrying with her the
following items:
I Personal effect RS.59,000
ii Laptop computers Rs.37,000
iii Jewellery - 25 grams (purchased in USA Rs.67,000
iv Music System Rs.58,000
Compute the customs duty payable by Suhasini Oberoi with reference to the Baggage
Rules, 2016.
(a) Rs.28,875
(b) Rs.62,370
(c) Rs.85,085
(d) Rs.48,125
Answer: (a)
Booklet MCQs:
2. Outline the stepwise procedure of import of goods into India.
(i) Grant of entry inwards to vessel
(ii) Filing of Import General Manifest
(iii) Unloading of goods
(iv) Assessment of goods
(v) Filing of Bill of Entry
PAGE NO.

(vi) Payment of duty

(a) (i), (ii), (iii), (iv), (v), and (vi)
(b) (ii), (iii), (i), (iv), (v), and (vi)
(c) (iii), (ii), (i), (vi), (v), and (iv)
(d) (ii), (i), (iii), (v), (iv) and (vi)
Answer: (d)
Chapter 6: Duty Drawback
A empts
MTP - - - - Q1 -
RTP Q3 Q2 Q4 Q5
Booklet Q6-8 Q6-8 Q6-8 Q6-8 Q6-8 Q6-8
Mock test papers:

March 2021:
1. Mehta & Co. imported certain goods and cleared them for home consumption on 5th
April, 2020 after paying import duty of Rs. 5,00,000. It used the imported goods and
placed them under Customs control for Export on 15 th October, 2020. Which of the
following statement(s) is correct in respect of duty drawback of imported goods under
customs law?
(a) Drawback amounting to Rs. 4,75,000 is allowed.
(b) Drawback amounting to Rs. 3,75,000 is allowed.
(c) Drawback amounting to Rs. 5,00,000 is allowed.
(d) No duty drawback is allowed where imported goods are used before re-exportation
Answer: (b)
May 2020:

PAGE NO.

2. Which of the following is not correct in relation to claim of duty drawback under
section 75 of the Customs Act, 1962?
i. The upper limit for drawback is one third of market price of export product.
ii. Countervailing duties and safeguard duties are included in all industry rates of
drawback.
iii. Countervailing duties and safeguard duties are not included while
determining all industry rates of drawback and thus can be claimed in
application for fixing brand rate.
iv. Provisions of section 75 are not applicable on goods exported by post.
(a) (i), (ii) and (iv)

(b) (i), (iii) and (iv)
(c) (ii) and (iv)
(d) (iii) and (iv)
Answer: (c)
November 2019:
3. Which of the following statements are not correct in relation to drawback provisions
under sections 74 and 75 of the Customs Act, 1962?
i. While drawback under section 74 is payable when duty paid goods are re-
exported, drawback under section 75 is payable when imported materials are used
in the manufacture of export goods
ii. While the rates for drawback under section 74 are fixed, a manufacturer may seek
a special rate for drawback under section 75.
iii. In case drawback is not paid to the applicant within one month of application,
the interest has to be paid to the applicant in both the cases.
iv. Drawback is not allowed in cases where market price of goods is less than the
amount of drawback claimed.
(a) All of above
(b) None of above
(c) (ii) and (iv)
(d) (ii) and (iii)
Answer: (b)
May 2021:

PAGE NO.

4. M/s Sohan Enterprises Ltd. had imported goods after paying the customs duty of Rs.
25,00,000 at the time of import. These goods were used and later re-exported after 19
months of import. The amount of duty drawback that M/s Sohan Enterprises Ltd. is
eligible to claim on such re-export made is
(a) Nil
(b) 23,75,000
(c) 20,00,000
(d) 24,00,000
Answer: (a)
November 2021:
(a) No duty drawback shall be allowed under customs in respect of the goods the
market price of which is less than the amount of drawback thereon.
(b) Duty drawback shall not be allowed under customs where the amount of drawback
in respect of any goods is Rs. 100 or less.
(c) Where the claim of duty drawback is not paid to claimant within 1 month from the
date of filing such claim, interest @ 6% p.a. is payable to the claimant.
(d) Interest is payable by the claimant of duty drawback on erroneous refund of duty
drawback @ 15% p.a.
Answer: (b)
Booklet MCQs:
6. Which of the following statements are correct in relation to drawback provisions under
sections 74 and 75 of the Customs Act, 1962?
i. While drawback under section 74 is payable when duty paid goods are re-exported,
drawback under section 75 is payable when imported materials are used in the
manufacture of export goods
ii. While the rates for drawback under section 74 are fixed, a manufacturer may seek
a special rate for drawback under section 75.
iii. In case drawback is not paid to the applicant within one month of application, the
interest has to be paid to the applicant in both the cases.
iv. Drawback is not allowed in cases where market price of goods is less than the
amount of drawback claimed.
PAGE NO.

(b) (i), (ii), (iii) and (iv)

(c) (ii) and (iv)
(d) (ii) and (iii)
Answer: (b)
7. Which of the following is not correct in relation to claim of duty drawback under
section 75 of the Customs Act, 1962?
i. The upper limit for drawback is one third of market price of export product.
ii. Countervailing duties and safeguard duties are included in all industry rates of
drawback.
iii. Countervailing duties and safeguard duties are not included while determining all
industry rates of drawback and thus can be claimed in application for fixing brand rate.
iv. Provisions of section 75 are not applicable on goods exported by post.
(a) (i), (ii) and (iv)
(b) (i), (iii) and (iv)
(c) (ii) and (iv)
(d) (iii) and (iv)
Answer: (c)
8. Ayat Niryat Enterprises exported goods having FOB value of Rs. 10 lakh. The All -
Industry duty drawback on exports of these goods is 5%. Market price of the goods in
India is Rs. 40,000. Calculate the duty drawback receivable by Ayat Niryat Enterprise s.
(a) Rs. 50,000
(b) Rs. 40,000
(c) Ayat Niryat Enterprises is not entitled to get any duty drawback since the market
price of such goods is less than the amount of drawback.
(d) Either (a) or (b) at the option of the exporter.
Answer: (c)

PAGE NO.

Chapter 7: Refund
A empts
MTP Q1 - - - - -
RTP - - - Q2 - -
Booklet Q3-4 Q3-4 Q3-4 Q3-4 Q3-4 Q3-4
Mock test paper:
April 2019:
1. In which of the following cases, the refund under section 27 of the Customs Act, 1962
is credited to the consumer welfare fund?
(a) If the importer proves that there is no unjust enrichment;
(b) Where goods are imported for non-personal use of an individual;
(c) If the amount of refund relates to drawback under sections 74 and 75 of the Customs
Act, 1962
(d) If the amount relates to export duty paid on goods which have been returned to
exporter as specified under section 26 of the Customs Act, 1962.
Answer: (b)
November 2020:
2. Which of the following statements is/are incorrect in relation to refund provisions under
i. Interest on delayed refund is payable to the applicant only if duty ordered to be
refunded is not refunded within 3 months from the date of receipt of application.
ii. If imports were made by an individual for his personal use, the amount of duty
found refundable, is paid to the applicant instead of being credited to the Consumer
Welfare Fund.
iii. Application for refund has to be made within 1 year of payment of duty where duty
is paid under protest.
iv. Doctrine of unjust enrichment is applicable if refund of duty is relatable to
drawback of duty payable under sections 74 and 75.
(a) (i) and (iv)

PAGE NO.

(b) (i) and (ii)

(c) (iii) and (iv)
(d) (ii), (iii) and (iv)
Answer: (c)
Booklet MCQs:
3. In which of the following cases, the refund under section 27 of the Customs Act, 1962
is credited to the consumer welfare fund?
(a) If the importer proves that there is no unjust enrichment.
(b) Where goods are imported for non-personal use of an individual and he could not
prove that there is no unjust enrichment.
(c) If the amount of refund relates to drawback of duty under sections 74 and 75 of the
Customs Act, 1962.
(d) If the amount relates to export duty paid on goods which have been returned to
exporter as specified under section 26 of the Customs Act, 1962.
Answer: (b)
4. Which of the following statements is/are incorrect in relation to refund provisions under
i. Interest on delayed refund is payable to the applicant only if duty ordered to be
refunded is not refunded within 3 months from the date of receipt of application.
ii. If imports were made by an individual for his personal use, the amount of duty
found refundable, is paid to the applicant instead of being credited to the Consumer
Welfare Fund.
iii. Application for refund has to be made within 1 year of payment of duty where duty
is paid under protest.
iv. Doctrine of unjust enrichment is applicable if refund of duty is relatable to
drawback of duty payable under sections 74 and 75.
(a) (i) and (iv)
(b) (i) and (ii)
(c) (iii) and (iv)
(d) (ii), (iii) and (iv)
Answer: (c)

PAGE NO.

Chapter 8: Foreign Trade policy
A empts
MTP - - - - - -
RTP - - - - - -
Booklet - - - - - - Q1
Booklet MCQs:
1. Which of the following privileges are granted to the Status Holders as per
Foreign Trade Policy 2015-2020?
I. Authorisation and custom clearances for both imports and exports may be
granted on self-declaration basis.
II. Two Star Export Houses and above are permitted to establish export
warehouses.
III. Input-Output norms may be fixed on priority within 7 days by the Norms
Committee.
IV. Exemption from furnishing of bank guarantee in Schemes under FTP
a. (i), (ii) and (iv)
b. (i), (ii) and (iii)
c. (i), (ii), (iii) and (iv)
d. (i) and (ii)
Answer: (a)

PAGE NO.

Integrated case Studies
A empts
MTP - - Q9-10 Q11-12 Q13-14 Q15-16
RTP - - Q1-2 Q3-4 Q5-6 Q7-8 Q 47-50
Booklet Q17-46 Q17-46 Q17-46 Q17-46 Q17-46 Q17-46 Q17-50
Revision Test Papers
May 2020:
Question: 1
ABC Petroleum Limited is engaged in the business of refining and marketing of petroleum
products. It has one refinery each in the States of Tamil Nadu, West Bengal & Maharashtra
and numerous administrative and marketing offices spread across the country. The
Company has separate marketing cum administrative offices for every major State and
common administrative cum marketing offices for a group of small States e.g., all north -
eastern States are covered under one marketing cum administrative office. The Company
also blends lubricants in its blending plants located in the States of Maharashtra and Tamil
Nadu.
As a policy, all the places of business of the Company in a State are registered under one
registration.
Imported crude is used as input in the refinery and following major products are extracted
after refining process:
Products chargeable to GST (Group A) Products not chargeable to GST (Group B)
Base oil (An input for blending Petrol

lubricants) Diesel
Furnace oil Air turbine fuel
Bitumen (Used for road construction)

LPG (Domestic and Industrial)

PAGE NO.

Base oils are further sent to blending plants where they are blended with additives to
produce lubricants. The Company provides the following particulars for States of Tamil
Nadu, Maharashtra and Kerala for the month of January 20XX:
Particulars Tamil Maharashtra Kerala

Nadu (Rs.) (Rs.)
Value of supply inclusive of all (₹)1,650 3,400 1,575
taxes/duties (Group B products)
Value of supply (Group A products) 100 200 20
before all taxes/duties
Excise duty leviable on supply of 500 1,000 110
Group B products
VAT on supply of Group B products 250 600 65
Tax paid on inputs and input 5 6 0

services procured at the blending plant
Tax paid on spares procured at the 3 8 0

refinery (Spares are booked in revenue
account)
Tax paid on inputs and input services 2 3 1
procured at the marketing cum
administrative office
Tax paid capital asset procured at 0 5 0
the blending plant
Tax paid capital asset procured at 12 0 0
the refinery
Assume that all of the Group A products are chargeable to GST @ 18% (including both
CGST and SGST or IGST, as the case may be)
The Finance department of ABC Petroleum Limited seeks your professional advice on
following questions:
i. The value of company’s supply in the Union Territory of Puducherry is Rs. 32,34,000
(Group A products) and in the State of Goa is Rs. 18,38,000 (Group A and Group B
products) for the year ending March 20XX. GST registration is
[Chapter 9 : Registration]
(a) Not required for both Puducherry and Goa
(b) Not required for Goa but required for Puducherry
(c) Required for both Puducherry and Goa

PAGE NO.

(d) Not required for Puducherry but required for Goa
Answer: (c)
ii. The eligible ITC available at marketing cum administrative office located in the State of
Maharashtra, for the month of January 20XX, is-
[Chapter 8: Input Tax Credit]
a. Rs. 3,000
b. Rs. 300
c. Rs. 166.67
d. Rs. 1,500
Answer: (b)
iii. The eligible ITC in respect of the capital asset procured in the State of Tamil Nadu, for the
month of January 20XX:
(a) Rs. 12,000
(b) Rs. 200
(c) Rs. 11,811.11
(d) Rs. 11,820
Answer: (d)
iv. Lubricant valued at Rs. 10,000 has been stock transferred from the blending plant located
in the State of Tamil Nadu to the refinery located in the same State, in the month of January
20XX. The GST (CGST and SGST) payable on such transaction is?
[Chapter 2: Supply under GST]
(a) Nil as the transaction is not a supply
(b) Rs. 900
(c) Rs. 1,800
(d) Nil as such supply is exempted from GST
Answer: (a)
v. Due to sudden fire in the store room of the refinery located in Maharashtra on January
28th 20XX, the entire quantity of spares procured in the month of January 20XX gets
destroyed. What action is required from ABC Petroleum Limited?

PAGE NO.


(a) No action is required on the part of ABC Petroleum Limited under GST Law.
(b) ABC Petroleum Limited should report to jurisdictional GST Department for
verification of the loss of inputs on account of fire.
(c) ABC Petroleum Limited should not avail ITC of tax paid on the spares.
(d) ABC Petroleum Limited should avail ITC and reverse the same.
Answer: (c)
Question: 2
Dumdum Engineering Private Limited (DEPL), Surat (Gujarat), a supplier of heavy
machinery, supplied a machine to Gulati Manufacturers from its godown located in
Mumbai, Maharashtra, on 1st January at a price of Rs. 64,00,000 (excluding all taxes).
Gulati Manufacturers has its corporate office in New Delhi. However, the machinery was
installed at its manufacturing unit located in Gurugram (Haryana) for which installation
and commissioning charges of Rs 4,80,000 and handling and loading charges of Rs.
1,60,000, were charged by DEPL. For every machinery supplied, DEPL receives a grant
of Rs. 3,20,000 from its holding company Dharam Ltd.
Transportation of machinery to the customer’s premises is arranged by DEPL through a
third-party service provider [Goods Transport Agency (GTA)]. Gulati Manufacturers
entered into a separate service contract with the GTA and paid the freight of Rs. 50,000
directly to it.
DEPL offered a cash discount of 2% on the price of the machinery at the time of supply
since Gulati Manufacturers agreed to make the payment within 15 days of the receipt of
the machinery at its premises. However, it was agreed that in case Gulati Manufacturers
failed to make the payment within the stipulated time, DEPL would-
- recover the discount given; and
- charge interest @ 1% per month or part of the month on the total amount due
(including discount recovered) from Gulati Manufacturers (towards the machinery
supplied) from the date of making the supply till the date of payment. However, no interest
is to be charged on the tax dues.
Gulati Manufacturers paid the consideration for the machine on 31st March. Since the
payment was made after the stipulated period of 15 days of the receipt of the machinery,
discount given was recovered from it and interest was accordingly charged. However,
Gulati Manufacturers refused to pay tax on interest and discount recovered.
Assume the rates of taxes to be as under:

PAGE NO.

Supply CGST rate SGST rate IGST rate

Machinery supplied 6% 6% 12%
Service of 2.5% 2.5% 5%
transportation of goods
Other services involved 9% 9% 18%
in the above supply
In view of the above information, you are required to answer the following questions:
i. The place of supply of the machinery supplied by DEPL is _______________ and the
nature of supply is ______________.
[Chapter 5: Place of Supply]
(a) Gujarat, intra-State supply
(b) Haryana, inter-State supply
(c) New Delhi, inter-State supply
(d) Maharashtra, inter-State supply
Answer: (b)
ii. The GST liability of DEPL for the month of January is _______________ (approx.).
[Chapter 7: Value of Supply]
(a) 9,46,660
(b) 8,67,840
(c) 9,06,153
(d) 8,29,440
Answer: (b)
iii. The GST liability of DEPL for the month of March is _______________(approx.).
(a) 36,343
(b) 36,504
(c) 35,314
(d) Nil
Answer: (a)
iv. Supply of machinery and supply of installation and commissioning services is______
supply. Time of supply of interest received by DEPL and cash discount recovered on
account of delayed payment of consideration is ____.

PAGE NO.

[Chapter 3,6: Charge of GST & Time of Supply]

(a) composite, 31st March
(b) composite, 1st January
(c) mixed, 1st January
(d) mixed, 31st March
Answer: (a)
v. If the grant of Rs. 3,20,000 received by DEPL had been received from Central Government
instead of its holding company Dharam Ltd., with other facts remaining the same, the GST
liability of DEPL for the month of January would have been ______ (approx.).
(a) 9,46,660
(b) 8,67,840
(c) 9,06,153
(d) 8,29,440
Answer: (d)
November 2020:
Question 3:
Starkart Limited owns and operates a web portal in the name of “Starkart” and is registered with
the jurisdictional GST authorities in Delhi as an electronic commerce operator and is liable to
collect tax at source under section 52 of the Central Goods and Services Tax Act, 2017. Starkart
provides listing service to various sellers for selling the goods to ultimate customers. Besides this,
Starkart also sells its own products through the same web portal.
For the listing services provided to sellers, Starkart charges a listing fee at the rate of 10% of
turnover of goods sold by the seller in a particular month. Such listing fee is recovered from the
seller irrespective of any return of goods sold through Starkart. The customers can choose from
wide range of goods listed on the web portal and place an online order for goods. The payment is
made by the customers through the payment gateway in online mode only. At the time of monthly
settlement, Starkart makes the payment to the sellers after adjusting the tax collection at source at
the applicable rates.
The invoice for goods sold on Starkart is issued by the seller in the name of customers and tax
is charged on the basis of location of seller and customer. The goods are shipped directly by the
seller to the customer and there is no responsibility of shipping the goods on Starkart for third
party sellers. In case of return of goods by the customer, the shipping is arranged by Starkart. It
charges a fee equivalent to 20% of the value of goods returned as cancellation charges and refunds

PAGE NO.

the balance amount to the customer. Further, 10% of the value of goods returned is collected from
the seller by Starkart as handling charges for return of goods.
In the month of January, Pulkit, a resident of Rajasthan, purchased following goods from Starkart:
a. Laptop having a value of Rs. 50,000 and a printer having a value of Rs. 10,000. Both the
products are sold by Infocom Limited, a seller listed on Starkart and registered under GST
in the State of Uttar Pradesh.
b. Mobile phone having a value of Rs. 30,000 sold by Starkart in its own capacity.
c. CCTV camera system having a value of Rs. 1,00,000 sold by Secure World, listed on
Starkart and registered under GST in the State of Gujarat.
All the above transactions are exclusive of GST, wherever applicable.
There is no input tax credit balance as on 1st January for Starkart, Infocom Limited and Secure
World.
GST is applicable in the aforesaid case scenario at the following rates unless otherwise specified:
CGST - 9%, SGST - 9%, IGST - 18%.
Basis the aforesaid case scenario, please answer the following questions:
i. The net tax liability (including amount payable as tax collection at source and after set -
off of credits, if any) of Starkart Limited for the month of January is:
[Chapter 12: Payment of Tax]
(a) IGST Rs. 8,280
(b) IGST Rs. 5,400
(c) CGST Rs. 3,500 and SGST Rs. 3,500
(d) IGST Rs. 9,880
Answer: (d)
ii. The net tax liability (after set-off of credits, if any) of Infocom Limited and Secure World
for the month of January is:
(a) IGST Rs. 10,800 and IGST Rs. 18,000 respectively
(b) IGST Rs. 9,720 and IGST Rs. 16,200 respectively
(c) IGST Rs. 9,120 and IGST Rs. 15,200 respectively
(d) IGST Rs. 10,200 and IGST Rs. 17,000 respectively
Answer: (c)
PAGE NO.

iii. In case, it is assumed that Secure World’s turnover does not exceed the threshold limit for
obtaining registration under applicable GST Law:
[Chapter 9: Registration]
(a) Secure World shall discharge tax only on the sales made through Starkart.
(b) Secure World is not required to obtain registration as threshold limit for obtaining
registration is not crossed and no tax is payable.
(c) Starkart shall be liable to discharge tax liability of sales made by Secure World.
(d) Secure World is required to obtain registration and shall be liable to pay tax on all
the taxable supplies made through Starkart or on its own.
Answer: (d)
iv. Assuming that Pulkit returns the printer purchased from Infocom Limited in the month of
January. As per the return policy, Starkart charges 20% of the value of the printer as
cancellation charges from Pulkit and 10% of the value of the printer as handling charges
from Infocom Limited. The net tax liability (including amount payable as tax collection at
source and after set- off of credits, if any) of Starkart in such scenario for the month of
January would be:
[Chapter 3: Charge of GST]
(a) Rs. 6,900 payable as IGST
(b) Rs. 3,450 payable as CGST and Rs. 3,450 payable as SGST
(c) Rs. 10,320 payable as IGST
(d) Rs. 7,440 payable as IGST
Answer: (c)
v. Starkart provides a free gift voucher worth Rs. 2,000 to Pulkit on January 31, which can be
redeemed against any purchases of goods made in future on Starkart. The supply of voucher
in hands of Starkart would become:
(a) taxable supply of Rs. 2,000 liable to GST in the month of January.
(b) taxable supply of Rs. 2,000 liable to GST in the month in which such voucher is
redeemed by Pulkit.
(c) discount offered to Pulkit on the purchases made in the month of January and no
tax would be payable on such voucher.
(d) discount offered to Pulkit at the time of redemption of voucher and no tax would
be payable on such voucher.
Answer: (b)
PAGE NO.

Question 4:
Advance Traders is a partnership firm in Jaipur, Rajasthan. The firm has obtained GST registration
at its Head Office (HO) in Jaipur. Further, the firm is having its depot for storage for goods in other
districts in Rajasthan. The depots are added as additional place of business in the GST registration
obtained at HO. Following details are provided about the firm for the month of July:
a. Advance Traders received goods worth Rs. 5,00,000 for which GST is payable on reverse
charge basis. The goods were received on 25th July. The supplier issued an invoice dated 24th
July and payment for the same was made by Advance Traders on 30th July. Due to the absence of
accountant, the transaction was recorded in the books of accounts on 1st August.
b. In the month of July, Advance Traders issued vouchers worth Rs. 2,00,000 to its customers,
which were eligible to be redeemed against identified goods. Also, certain set of customers were
issued vouchers worth Rs. 5,00,000. The said vouchers were eligible to be redeemed against any
supply of goods in next 6 months.
c. Mr. X, a partner in the firm, booked a Hotel in Udaipur, Rajasthan f or the wedding of his
daughter in the month of October. The advance amount of Rs. 5,00,000 for booking the hotel
was paid by way of online payment from the current account of Advance Traders in July. The hotel
charged GST on such booking at the rate of 28% (CGST @ 14% and SGST @ 14% or IGST @
28%, as the case may be) on the amount received as advance and issued a receipt voucher.
d. Advance Traders made a supply of goods worth Rs. 25,00,000 during the month of July.
Out of the aforesaid supply, goods worth Rs. 5,00,000 were not liable to GST. However, Advance
Traders inadvertently charged GST on such goods and collected the same from the customers.
e. Due to clerical error, Advance Traders made a deposit in minor head penalty of the major
head IGST for an amount of Rs. 3,00,000. There is no liability of interest on any IGST liability
and the amount is lying as unutilized on GST portal.
The balance of input tax credit as on 1st July for the firm is nil for all the registrations.
CGST - 9%, SGST - 9%, IGST - 18%.
All the amounts given above are exclusive of GST, wherever applicable. Basis the aforesaid case
scenario, please answer the following questions:
i. Compute the GST liability to be discharged from electronic cash ledger for the month of
July by Advance Traders. For computing this liability, consider that there is no adjustment
regarding amount provided in point e. above:
(a) Rs. 5,76,000
(b) Rs. 4,36,000

PAGE NO.

(c) Rs. 3,96,000

(d) Rs. 4,86,000
Answer: (d)
ii. Amount of input tax credit available to Advance Traders against the hotel booking
expense shall be_. Would there be any change if the hotel is located outside Rajasthan?
(a) Nil. There will be no change even if hotel is located outside Rajasthan
(b) Rs. 70,000 as CGST and Rs. 70,000 as SGST. No credit would be available, had
the hotel been located outside Rajasthan.
(c) Rs. 70,000 as CGST and Rs. 70,000 as SGST. IGST of Rs. 1,40,000 would be
available, had the hotel been located outside Rajasthan.
(d) Nil. IGST of Rs. 1,40,000 would be available, had the hotel been located outside
Rajasthan.
Answer: (a)
iii. What is the time limit for issuance of show cause notice where GST is collected on supplies
which are not liable to GST?
[Chapter 19: Demands & Recovery]
(a) Within 2 years and 9 months from due date of filing annual return for the financial
year.
(b) Within 4 years and 6 months from due date of filing annual return for the financial
year.
(c) No time limit to issue the show cause notice
(d) No show cause notice to be issued. The tax amount shall be refunded to the
customers if the customer demands the same
Answer: (c)
iv. Advance Traders claimed refund of amount paid erroneously in the minor head penalty of
major head IGST. The authorities rejected the refund claim. Advance Traders filed a
civil suit before the jurisdictional magistrate. Choose the correct answer:
[Chapter 15: Refunds]
(a) The jurisdictional magistrate can direct the authorities to process the refund
amount.

PAGE NO.

(b) The jurisdictional magistrate can redirect the matter for fresh assessment of refund
claim.
(c) The jurisdictional magistrate can order provisional refund and initiate the re -
assessment proceedings.
(d) The jurisdictional magistrate cannot pass any order regarding the refund claim.
Answer: (d)
v. Advance Traders wants to utilize the amount paid erroneously in the minor head penalty
of the major head IGST against its tax liability to be discharged in cash. Please select the
correct option:
(a) The amount can be utilized only for discharging penalty amount under any head.
(b) The amount can be utilized only for discharging liability of IGST under any minor
head.
(c) The amount can be utilized for discharging liability under any minor head or major
head.
(d) The amount can be utilized only for discharging penalty amount related to IGST.
Answer: (c)
May 2021:
Question 5:
Disha Enterprise Pvt Ltd. is a financial service company having its offices in
Kolkata, West Bengal and Mumbai, Maharashtra. The company is registered under
GST in both the States. The company operates through two segments (a) banking &
insurance services and (b) advisory & consulting services. The aggregate turnover of
the company during the previous year was
(i) Rs. 80 lakh in West Bengal &
(ii) Rs. 60 lakh in Maharashtra.
The bouquet of services provided under each of the two segments are as follows:
Banking & insurance services Advisory & consulting services
Insurance agent services Company/LLP/Society formation
Recovery agent services Return filing
Direct Selling Agent(DSA) services (sale Detailed Project Report (DPR)
of banking) products) preparation
Business promotion/ product marketing/

exhibition etc.
PAGE NO.

The company has carried out following transactions during the month of September:
(Amount in Rs. excluding GST)
Particulars Kolkata office Mumbai office

Sale and purchase of foreign currency Refer Note 3 Refer Note 3
Commission received from Nautical
90,000 70,000
Insurance Company/ ADFC Life Insurance
Company
Commission received as DSA from ICIDI
48,000 50,000
Bank for opening bank account/credit card
& loan products
Commission received from private banks
1,20,000 1,50,000
for acting as recovery agent
Professional fee received for the 80,000
40,000
formation of a company/LLP/society [Refer Note 2]
Professional fee received for GST/ TDS 65,000 75,000
return filing fee received from customers
Participation 50,00,000 4,00,000
for the business exhibition organised by the
(held in Russia) (Held at Chennai)
company
[Refer Note 1] [Refer Note 1]
Legal fee paid to Mr. Sundaram - an advocate 10,000 15,000
Payment made for security services (by 25,000
way of supply of security personnel) 25,000
(M/s X & Co, a
received (Globe Security
partnership firm,
Pvt Ltd.)
registered under GST)
Notes:
1. The participation fee of Rs. 50,00,000 received by the company is in respect of

a business exhibition organized at St. Petersburg, Russia under the theme “Indian
Traditional Fair” in which 10 Indian companies (all registered under GST) had
participated. A participation fee of Rs. 5 lakh from each Indian company was
collected for providing them a stall, furniture & other amenities at St. Petersburg,
Russia.
The participation fee of Rs. 4,00,000 is in respect of a business exhibition organized
by the company at Chennai, in which 100 Indian companies had participated.
2. Out of the professional fee of Rs. 80,000 received by Kolkata office for the
formation of a company/LLP/society, Rs. 15,000 was towards reimbursement
claimed from client. It was separately mentioned in the invoice indicating that it
was deposited with registrar of companies (ROC).
3. Following purchase & sale of foreign currency was made by the company during
the month of September:

PAGE NO.

(a) Kolkata office had purchased USD 10,000 from M/s Moneywise (a FOREX dealer)
@
Rs. 74 per USD on 10th September. The RBI reference rate on that day was Rs. 73
per USD.
(b) Mumbai office had sold USD 5,000 to M/s Money Matters (a FOREX dealer) on
15th September @ Rs. 73.20 per USD. RBI reference rate for USD on that day is
not available.
4. In an order dated 14th September issued to Disha Enterprise Pvt Ltd., the Joint
Commissioner of CGST, Mumbai has raised a demand of Rs. 600 crore on Mumbai
office in respect of an inter -State transaction. The company is disputing the entire
demand & wants to file an appeal before the Appellate Authority against the order
of Joint Commissioner.
5. The Kolkata office of the company had received Rs. 1 lakh on 22nd April as an
advance from Ganesh Flour Mill Pvt Ltd., a client, for preparation of DPR.
However, tax collected on the same from the client has not yet been deposited with
the Central Government.
All the amounts given above are exclusive of GST wherever applicable (unless
otherwise specified). There is no other outward or inward supply transaction apart
from the aforesaid transactions in the relevant period.
Based on the facts of the case scenario given above, choose the most appropriate answer
to
Q. Nos I to v . below:-
i. Determine the value of taxable supply in respect of sale and purchase of foreign
currency by Kolkata office and Mumbai office of the company as per rule 32(2)(a) of
the CGST Rules, 2017.
[Chapter- Value of Supply]
(a) Kolkata office Rs. 7200, Mumbai office Rs. 3,660
(b) Kolkata office Rs. 10,000, Mumbai office Rs. 3,660
(c) Kolkata office Rs. 7,20,000, Mumbai office Rs. 3,66,000
(d) Kolkata office Rs. 7,30,000, Mumbai office Rs. 3,66,000
Answer: (b)
ii. The value of taxable supply received by Mumbai office in the month of September
on which tax is payable under reverse charge is _____________
(a) Rs. 15,000
(b) Rs. 25,000
(c) Rs. 40,000
PAGE NO.

(d) Rs. 2,70,000

Answer: (c)
iii.The value of taxable outward supply made by Kolkata office in the month of
September on which Disha Enterprise Pvt Ltd. is liable to pay tax under
forward charge is
(a) Rs.1,78,000
(b) Rs. 2,78,000
(c) Rs. 2,65,000
(d) Rs. 1,13,000
Answer: (a)
iv. The maximum amount of pre-deposit that Disha Enterprise Pvt. Ltd. can be asked to
deposit under the IGST Act, 2017 for filing of an appeal before the Appellate
Authority is_____________.
[Chapter 22: Appeals & Revisions]
(a) Rs. 30 crores
(b) Rs. 60 crores
(c) Rs. 25 crores
(d) Rs. 50 crores
Answer: (d)
v. The maximum penalty prescribed under section 122 of the CGST Act, 2017 for failure
of Kolkata Office to deposit the tax collected on the advance received from Ganesh
Flour Mill Pvt Ltd. is ____________.
[Chapter 21: Offences & Penalties]
(a) Rs. 18,000
(b) Rs. 25,000
(c) Rs. 10,000
(d) Rs. 10,000 or tax evaded, whichever is higher.
Answer: (d)
Question 2:
ABC Ltd. is a Public Sector Undertaking (PSU) engaged in the business of generation of
electricity from conventional & non-conventional sources. The Government of India holds 75%
equity in the said company & balance equity is held by institutional and domestic investors. The
company has taken separate registration under GST in each State where it has business
operations. The company has its head office (HO) in Delhi & its power plants are located in the
PAGE NO.

States of Bihar, Odisha & Chhattisgarh.

Following transactions were carried out by the company during the month of February:
(Amount in Rs.)
Particulars Delhi Bihar Odisha Chhattisgarh
H.O plant plant plant
Sale of electrical energy to DISCOM --- 2,50,00,000 3,50,00,000 4,50,00,000
Bank interest received on saving 18,00,000 3,00,000 5,00,000 8,00,000
bank account & fixed deposit
House rent recovered from the 55,000 30,000 25,000 40,000

employees for residential
accommodation provided to them
Rent collected from bank, ATM, 48,000 15,000 12,000 16,000

post office & shops located in office
premises
Sale of iron/ metal scrap (excluding - 85,000 45,000 65,000
TCS @ 1% as per the Income-tax
Act, 1961
Other Income 2,50,000 - - 45,000
Note:
(a) Other income of Delhi H.O. amounting to Rs. 2,50,000 is in respect of bond
money recovered from an ex-employee who had resigned from the service of
ABC Ltd. prior to completion of the period specified in the bond, viz., 2 years.
(b) Other income of Rs. 45,000 of Chhattisgarh plant is in respect of penalty
recovered from a contractor for delay in supply of material.
In addition to above information, following transactions were also carried out during the
month of February:
(1) A supply order for stationery items was awarded by Delhi H.O. to M/s Stationery
Mart, New Delhi for Rs. 3,36,000 (including GST @ 12%) in January.
The vendor supplied stationery items worth Rs. 44,800 (including GST@ 12%)
& issued the tax invoice in February. Delhi H.O. had made the payment of the
said bill in February. The remaining amount was paid in April on supply of
balance items.
(2) Odisha plant purchased office furniture for Rs. 2,80,000 during February from
an unregistered dealer. Rate of GST on said furniture item is 18%.
(3) A Board meeting for raising term loan for project expansion was held in
February. The Delhi H.O. paid Rs. 20,000 each as sitting fee to 4 independent
PAGE NO.

directors who attended the meeting.

(4) For safety & security of its H.O. & power plants, the company has engaged private
security as well as CISF. Following payments were made in February, in respect
of bills issued in the month of January:
Particulars Delhi H.O. Bihar plant Odisha plant Chhattisgarh

plant
CISF --- 10,00,000 8,00,000 14,00,000

(paid on 07th (paid on 15th (paid on 05th
February) February) February)
ABS Security 5,00,000 - - -
Services Pvt Ltd. (paid on 11 th
February)
(5) The Bihar plant purchased a machinery in February from M/s Sahoo Enterprises,
Patna (not registered under GST) for Rs. 86,000. Full payment was made in
February. Rate of GST on the said machinery is 18%.
All the amounts mentioned above are excluding GST, wherever applicable (unless
otherwise specified).
Based on the facts of the case scenario given above, choose the most appropriate answer
to Q. Nos. vi. to x. below:
vi. The value of taxable supply on which GST is payable by Delhi H.O. under forward
charge, for the month of February is ___________.
(a) Rs. 21,78,000
(b) Rs. 2,98,000
(c) Rs. 22,33,000
(d) Rs. 3,78,000
Answer: (b)
vii. The value of taxable inward supply on which GST shall be payable under reverse
charge by Bihar power plant is __________.
(a) Rs. 11,80,000
(b) Rs. 10,00,000
(c) Rs. 10,86,000
PAGE NO.

(d) Rs. 10,30,000

Answer: (b)
viii. The value of supply on which TDS under section 51 of the CGST Act, 2017 shall be
deducted by Delhi H.O. while making payment to M/s Stationery Mart in February is
(a) Rs.40,000
(b) Rs.44,800
(c) Rs.3,00,000
(d) TDS is not applicable since payment made in February is less than Rs.
2,50,000.
Answer: (a)
ix. Which of the following statements is true with regard to the penalty of Rs. 45,000
recovered by Chhattisgarh plant from the contractor for delay in supply of material?
(a) Fine/ penalty levied by a PSU is an exempt supply under section 11 of the
CGST Act, 2017.
(b) It is a supply of services as stipulated in Schedule II of the CGST Act, 2017.
(c) It is neither a supply of service nor supply of goods as it is covered
under Schedule III of the CGST Act, 2017.
(d) It is not a supply at all under section 7 of the CGST Act, 2017.
Answer: (b)
x. What is the value of supply on which GST is payable by Odisha plant on sale of scrap?
(a) Rs. 45,000
(b) Rs. 45,450
(c) Sale of scrap is an exempt supply under GST. It is subject to TCS under
the Income-tax Act, 1961.
(d) Sale of scrap is neither a supply of service nor supply of goods as it is
covered under Schedule III of the CGST Act, 2017.
Answer: (a)
November 2021:
Question 7:
SR Associates is a partnership firm registered under GST in the State of Rajasthan. In the month
of July, following transactions were made by SR Associates:

PAGE NO.

1. Purchase of commodity X on 1st July for an amount of Rs. 5,00,000 at the rate of Rs. 1000 per
tonne from the open market. The said commodity was deposited in the warehouse of NCDEX Ltd.
(an agricultural commodity exchange) in Rajasthan as a security against transactions entered by
SR Associates on the same day.
2. In order to hedge the aforesaid transaction, on 1st July, SR Associates undertook a derivative
sale transaction in futures contract for the month of August at NCDEX at the rate of Rs. 1,100 per
tonne.
3. SR Associates took subscription for an AI (Artificial Intelligence) based platform from an
unrelated party, ABC Inc (a company based in US) to get real time updates on the pricing of
commodity X in the international market. ABC Inc charged Rs. 50,000 for such subscription. The
invoice was issued to SR Associates on 1st July, but the payment was made to ABC Inc on 20th
August.
4. NCDEX charges rent from SR Associates at the rate of Rs. 10,000 per month and service charges
at the rate of Rs. 20,000 per month.
5. On the date of expiry of future contract of the month of August, i.e. 31st August for commodity
X, the rate of commodity X was Rs. 900 per tonne. SR Associates squared off the contract for the
month of August at the same rate.
6. NCDEX charged brokerage on the transactions (both purchase and sale of derivative contract
separately) at the rate of Rs. 5,000 per contract from SR Associates in the month when such
transaction was entered and when such transaction was squared off.
7. On the purchase of commodity X, additional levy in form of Mandi Tax was applicable at the
rate of Rs. 10 per tonne which is not included in the rate per tonne under point 1 above.
All the amounts given above are exclusive of GST unless otherwise provided. The opening balance
of input tax credit for the relevant tax period of SR Associates is Nil. Subject to the information
given above, assume that all the other conditions necessary for availing ITC have been fulfilled.
Assume that there is no other outward or inward supply transaction apart from aforesaid
transactions, in the months of July and August.
GST is applicable in the aforesaid case scenario at the following rates unless otherwise
specified:
I. Intra-State supply – 9% CGST and 9% SGST
II. Inter-State supply – 18% IGST
Based on the facts of the case scenario given above, choose the most appropriate answer to
Q. Nos. i to v as follows:-
i. Compute the taxable value of supply of commodity X procured by SR Associates in the
month of July.

PAGE NO.


(a) 5,00,000
(b) 5,50,000
(c) 5,55,000
(d) 5,05,000
Answer: (d)
ii. Compute the value of outward supply made by SR Associates in the month of August.
(a) Nil
(b) 5,55,000
(c) 5,60,000
(d) 5,00,000
Answer: (a)
iii. What is the time of supply for subscription of AI based platform by SR Associates?
[Chapter 6 : Time of Supply]
(a) July 1
(b) August 31
(c) August 20
(d) July 31
Answer: (c)
iv. Compute the net GST payable in cash by SR Associates for the month of August.
(a) Nil
(b) 2,700
(c) 81,000
(d) 9,000
Answer: (d)
v. Compute the input tax credit balance available with SR Associates for the month of July.

PAGE NO.

[chapter 8: Input tax credit]

(a) 9,000
(b) 16,200
(c) 97,200
(d) Nil
Answer: (c)
Question 8:
Mr. Ashok, proprietor of M/s Office-Linc Enterprises, is engaged in trading of office stationery
items in its stationery store located at Salt Lake City, Kolkata. The said store is taken on lease from
Kolkata Municipal Corporation (KMC).
During the financial year 2019-20, the turnover of M/s Office -Linc Enterprises was Rs. 14 lakh.
Mr. Ashok supplies goods within the State of West Bengal only, but purchases stationery items
mostly from Delhi & Mumbai. He owns a duplex house in New Town, Kolkata. He stays on the
ground floor & has let out the first floor to an employee of IDICI Bank, Delhi for residential
purposes. The rent for the same is paid by IDICI Bank to Mr. Ashok.
He applied for GST registration on voluntary basis on 2nd April, 2020 and the registration was
granted to him on 9th April, 2020.
The details of his stock position is as under:
Particulars 2nd April, 8th April,

2020 2020
Office stationery items purchased from a Rs. 1 lakh Rs. 1 lakh

registered dealer
Books, periodicals, journals, newspaper, maps etc. Rs. 0.20 Rs. 0.30
lakh lakh
The details of transactions carried out by Mr. Ashok during the financial year 2020-21
is furnished hereunder:
Particulars 1st April, 2020 to 9th April, 2020 to

8th April, 31st March,
2020 (Rs. in 2021 (Rs. in
lakh) lakh)
Sale of office stationery items 3 84
(Intra-State supply to registered person)

PAGE NO.

Sale of office stationery items 2 14

(Intra-State supply to unregistered person)
Legal fee paid to advocate - 0.10
Purchase of stationery items 3 74

(Intra-State supply received from
registered person)
Purchase of furniture for use in own - 1
office (from an unregistered dealer
of Kolkata)
Purchase of stationery items from a 1 18
registered dealer of Delhi
Lease rent of the stationery store paid to - 1.20
Kolkata Municipal Corporation (KMC)
Transportation charges paid to M/s Gati 0.10 1.50
Transporters, a GTA
(tax is not payable @ 12%)
Interest paid on borrowings from BBI 0.20 1.80

Bank
Accrued interest on Fixed deposit with - 0.16
BBI
Rent Bank
received from IDICI Bank for its - 2.40
employee
Mr. Ashok went to Mumbai, Maharashtra for a business meeting in February, 2020 and
stayed in Hotel Blue Pines for a week. Hotel charged Rs. 1,00,000 (taxable value) for the
stay. All the amount given above are exclusive of GST, wherever applicable, unless
otherwise provided. Assume that there is no other outward or inward supply transaction
apart from aforesaid transactions in the financial year 2020-21.
GST is applicable on all inward and outward supplies, except on services of

transportation of goods, at the following rates:
Intra-State supply – 6% CGST and 6% SGST
Inter-State supply – 12% IGST
Q. Nos. i to v below:-
i. The value of outward supply which shall be subject to GST for the financial year 2020-21
is _______.
PAGE NO.

(a) Rs. 98 lakh
(b) Rs. 100 lakh
(c) Rs. 102.40 lakh
(d) Rs. 108 lakh
Answer: (a)
ii. Which of the following statements is correct in terms of the facts of the case scenario given
above?
(a) Mr. Ashok cannot opt to pay tax in the financial year 2021 -22 under composition
scheme under section 10(1) and 10(2) of the CGST Act, 2017.
(b) Mr. Ashok is entitled to take the ITC of inputs held in stock on 1st April, 2020.
(c) Mr. Ashok shall be liable to pay GST under reverse charge under section 9(4) of
the CGST Act during the financial year 2020-21 in respect of purchases made from
unregistered persons.
(d) Mr. Ashok is entitled to take the ITC of inputs held in stock on 8th April, 2020.
Answer: (d)
iii. The value of supply on which Mr. Ashok is liable to pay GST under reverse charge for the
financial year 2020-21 is _______________.
(a) Rs. 1,60,000
(b) Rs. 2,80,000
(c) Rs. 1,30,000
(d) Rs. 2,70,000
Answer: (d)
iv. Which of the following inward supply is not subject to payment of tax under reverse charge
mechanism?
i. Shop rent paid to KMC

ii. Legal fee paid to advocate
iii. Purchase of stationery items from unregistered person

PAGE NO.

iv. Transportation charges paid to M/s Gati Enterprises

(a) (i) and (ii)
(b) (iii)
(c) (ii) and (iii)
(d) (i) and (iii)
Answer: (c)
v. Whether input tax credit is available on the GST paid by Mr. Ashok on the taxable
value of Rs. 1,00,000 charged by Hotel Blue Pines located in Mumbai, Maharashtra,
for his stay? If yes, please specify the amount of input tax credit available.
[Chapter 8 : Input Tax Credit]
a. Yes, Rs. 3,000 - CGST and Rs. 3,000 - SGST
b. Yes, Rs. 12,000 - IGST
c. Yes, Rs. 6,000 - CGST and Rs. 6,000 – SGST
d. No input tax credit is available.
Answer: (d)

PAGE NO.

Mock Test papers
May 2020:
Question 9:
1. M/s. SV Enterprises (P) Ltd. is a pharmaceuticals company engaged in the manufacturing of
medicines. It has its head office in Rajasthan being registered under GST. It primary sells two
products in the market which are as under:
(i) A (Taxable at 18%)
(ii) B (Taxable at 28%)
From head offi ce (HO) it makes sales on the basis of orders received from dealers and its branches.
Total sales during the month of February is given below:
A B
Inter-State (Rs.) Intra- Inter- Intra-
State(Rs.) State(Rs.) State(Rs.)
50,00,000/- (including 50,00,000/- 50,00,000/- 30,00,000/-
branch transfers
The company transferred product A to its branch situated in Mumbai for Rs. 10,00,000/-. The open
market value of product A was not known at the time of transfer, but the goods of like kind and
quantity were sold at Rs. 12,00,000/-. Cost of product A is Rs. 8,00,000/-. Further, the branch also
deals in product A and product B only.
The company purchases its raw material worth Rs. 60,00,000 taxable @18% for product A from
a supplier located at Haryana and imported raw material worth Rs. 40,00,000 taxable @ 28% for
product B from U.S.A based vendor.
Based on above, answer following questions: -
i. What shall be the GST paid by M/s. SV Enterprises (P) Ltd. through Electronic Cash
Ledger?
(a) IGST: Rs.1,00,000/-, CGST: Rs. 8,70,000/-, SGST: Rs. 8,70,000/-
(b) IGST: Rs. 11,20,000, CGST: Rs. 8,70,000/ -, SGST: Rs. 8,70,000/-
(c) IGST: Rs. 12,20,000/-, CGST: Rs. 8,70,000/-, SGST: Rs. 8,70,000/-
(d) IGST: Nil, CGST: Rs. 8,70,000/ -, SGST: Rs. 8,70,000/-
Answer: (a)

PAGE NO.

ii. Suppose Product A is exempt from GST, what shall be the aggregate turnover of SV
Enterprise?
[Chapter 3 Charge of GST]
(a) Rs. 1,80,00,000
(b) Rs. 80,00,000/-
(c) Rs. 2,20,00,000/-
(d) Rs. 1,40,00,000
Answer: (a)
iii. What shall be the value of supply of product “A” transferred to its branch in Mumbai?
(a) Rs. 10,00,000/-
(b) Rs. 12,00,000/-
(c) Rs. 8,00,000/-
(d) Rs. 8,80,000/-
Answer: (a)
iv. Suppose out of imported raw material amounting to Rs. 40,00,000/-, raw material
amounting to Rs. 10,00,000/- was sold to another local customer before clearance for
home consumption. What shall be the net GST liability in this case?
(a) IGST- Rs. 3,80,000/-, CGST-Rs. 8,70,000/-, SGST- Rs. 8,70,000/-
(b) IGST- Rs. 1,00,000/-, CGST-Rs. 8,70,000/-, SGST-Rs. 8,70,000/-
(c) IGST- Rs. 12,20,000/-, CGST-Rs. 8,70,000/-, SGST-Rs. 8,70,000/-
(d) IGST- Rs. 20,60,000/-, CGST-Rs. 8,70,000/-, SGST-Rs. 8,70,000/-
Answer: (a)
v. If the payment for Product A was received on 25.02.20XX from one of the customers,
goods supplied on 28.02.20XX and invoice issued on 3.03.20XX, what shall be the time
of supply in this case?
[Chapter 6: Time of Supply]
(a) 25.02.20XX
(b) 28.02.20XX
(c) 3.03.20XX
(d) 20.03.20XX
Answer: (b)

PAGE NO.

Question 10:
Diwakar (P) Ltd., registered in Delhi, is engaged in trading of cement as well as providing services
by way of renting of commercial properties. On 02.01.20XX, it received a contract of 1,000 kg
cement from Pakija (P) Ltd., registered in Punjab. Pakija (P) Ltd. directed Diwakar (P) Ltd. to send
the consignment to Gajab & Sons, registered in Gujarat. Diwakar (P) Ltd. prepared the
consignment on 04.01.20XX and dispatched the same on the next day from his warehouse in
Gurugram, Haryana. The invoice was also issued on 5.01.20XX. On 07.01.20XX, it received the
cheque and accountant entered the payment in books of accounts. However, he presented the
cheque in bank on 14.01.20XX which was credited in bank account on 15.01.20XX. In the
meanwhile, on 10.01.20XX, the rate of tax on cement was reduced from 28% to 18%.
On inspection of goods it was found that there is some deficiency in quality of goods and therefore,
the deficit goods were returned to Diwakar (P) Ltd. Diwakar (P) Ltd. issued credit note for the
same on 20.01.20XX.
Diwakar (P) Ltd. let out property and received rent for the month of January from Pakija (P) Ltd.
on 10.01.20XX. However, as per the contract entered, the payments should have been received by
7th of every month.
Based on the above scenario, Diwakar (P) Ltd., wants to seek your advice on the following issues:
i. What will be the time of supply and rate of tax to be charged in respect of 1,000 kg of
cement?
(a) 05.01.20XX; 28%
(b) 07.01.20XX; 28%
(c) 14.01.20XX; 18%
(d) 15.01.20XX; 18%
Answer: (a)
ii.What will be the time of supply and rate of tax to be charged if the payment is credited
into bank account on 12.01.20XX?
(a) 05.01.20XX; 28%
(b) 07.01.20XX; 28%
(c) 12.01.20XX; 28%
(d) 12.01.20XX; 18%
Answer: (a)
iii. What will be rate of tax to be charged for the credit note issued in respect of deficient
goods?
[Chapter 10: Tax Invoice, Debit Notes & Credit Notes]

PAGE NO.

(a) 28%
(b) 18%
(c) No tax to be charged on credit note
(d) Either (a) or (b)
Answer: (a)
iv. What is the place of supply in respect of transaction between Diwakar (P) Ltd. and Pakija
(P) Ltd, and Pakija (P) Ltd. and Gajab& Sons?
[Chapter 5: Place of Supply]
(a) Delhi, Punjab
(b) Punjab, Gujarat
(c) Haryana, Punjab
(d) Haryana, Gujarat
Answer: (b)
v. Diwakar (P) Ltd. is not issuing any invoice in respect of the services provided by way of
renting of commercial properties. What shall be the last date for issuance of invoice?
[Chapter 10 Tax Invoice, Debit Notes & Credit Notes]
(a) 10.01.20XX
(b) 07.01.20XX
(c) Either (a) or (b) whichever is earlier
(d) Either (a) or (b) whichever is later
Answer: (b)
October 2020:
Question 11:
William & Sons (WS) is a registered partnership firm engaged in manufacturing activity in the
state of Rajasthan under GST. In the month of July, following transactions were undertaken by
WS:
(a) Intra-state sale of goods worth Rs. 10,00,000. Out of such sale, Rs. 5,00,000 worth of goods
were liable to GST at 28% and balance were liable to GST at 18%.
(b) Intra-state purchase of goods worth Rs. 10,00,000 which is liable to GST at 28%.
(c) WS intended to transfer the business as going concern to Morgan & Sons (MS) on 31st July.
As per the terms of transfer, WS will transfer all the business assets worth Rs. 50,00,000 and all
the liabilities valued at Rs. 60,00,000.
(d) WS, on account of such transfer, paid gift worth Rs. 50,000 to its 3 employees as a reward
towards their services to the firm.
During the month of September, MS received the notice from the authorities for outstanding
liability of GST for Rs. 5,00,000 pertaining to the period before transfer of business by WS. Such

PAGE NO.

liability was determined after the transfer of business. For this purpose, assume that all the assets
and liabilities were transferred by WS to MS.
The balance of input tax credit as on 1st July for the WS is Nil.
CGST - 9%, SGST - 9%, IGST - 18%.
All the amounts given above are exclusive of GST, wherever applicable.
Basis the aforesaid case scenario, please answer the following questions:
i. The gross GST liability (without set off of input tax credit) of WS for the month of July
is-
(a) 2,32,000
(b) 2,80,000
(c) 25,000
(d) 2,30,000
Answer: (d)
ii.In case of transfer of business to MS, what is the amount of input tax credit which shall
stand transferred to MS?
(a) Rs. 25,000
(b) Rs. 50,000
(c) Nil. In case of partnership firm input tax credit cannot be transferred on account
of transfer of business.
(d) Nil as the value of liabilities is more than the value of assets.
Answer: (b)
iii.Suppose there is no transfer of business to MS, what is the amount of input tax credit
lying in input tax credit ledger, if any, which can be claimed as refund by WS for the
month of July?
(a) Rs. 50,000 under inverted duty structure
(b) Nil. Since WS is making outward supply of 28% also, the balance credit shall be
carried forward.
(c) Rs. 23,000 under inverted duty structure
(d) Rs. 25,000 under inverted duty structure
Answer: (a)
iv. Who is liable to discharge the liability of Rs. 5,00,000 on account of notice received by
MS in the month of September?
[Chapter 20 Liability to Pay Tax in certain cases]
PAGE NO.

(a) MS as the business is transferred by WS in July and notice was received in

September
(b) WS as the notice pertains to liability before transfer of business
(c) Liability on MS only up to the amount of input tax credit transferred by WS
(d) MS and WS jointly and severally liable
Answer: (d)
v. Suppose WS transfers the business as a going concern and transfers all the assets and
liabilities of such business for a lumpsum amount to MS, the transaction shall be:
[Chapter 20: Liability to Pay Tax in certain cases]
(a) treated as taxable supply liable to GST under forward charge as WS is a registered
Person
(b) liable to GST in the hands of MS under reverse charge basis
(c) exempted from GST
(d) liable to GST only for assets on which input tax credit is availed
Answer: (c)
Question 12:
M/s KLM Ltd is a large publishing and printing house registered in Maharashtra having Single
GSTIN, engaged in supply of books, letter cards, envelopes, guides and reference materials. KLM
Ltd. has front offices in Mumbai & Nagpur for receiving the orders; orders are supplied to front
office or supplied to recipient directly depending on order from the workshop located at Nagpur.
During March, 2020, KLM Ltd. received a proposal for printing of 5,000 copies of Taxation book
from a renowned author where only content will be supplied by the author. KLM Ltd. agreed to
supply the books. As per requirement of the author, 2500 copies were supplied from workshop to
Nagpur front office and 2500 copies to Mumbai front office from where the author collected books.
Satisfied with quality of books, author placed order of 10,000 pieces of letterhead during April,
2020, the design and logo was supplied by the author for printing. Due to these orders KLM Ltd
earned a handsome amount of profit and decided to gift employees for their performance,
accordingly KLM Ltd gifted android mobile phone worth Rs. 36,500 each to all its 45 employees.
In relation to the above, answer the following questions:
i. Supply of taxation books by KLM Ltd is:
(a) Composite supply, principal supply being “supply of service”
(b) Composite supply, principal supply being “supply of goods”

PAGE NO.

(c) Mixed supply

(d) At the choice of the KLM Ltd (I.e., KLM Ltd may treat it as a supply of goods or
service or mixed supply) and pay tax accordingly.
Answer: (a)
ii. Supply of Letterheads by KLM Ltd will be treated as:
[Chapter 3 Charge of GST]
(a) Composite supply, principal supply being “supply of service”
(b) Composite supply, principal supply being “supply of goods”
(c) Mixed supply
(d) At the choice of the KLM Ltd (I.e., KLM Ltd may treat it as a supply of goods or
supply of service or mixed supply) and pay tax accordingly.
Answer: (b)
iii. Distribution of mobiles to employees by KLM Ltd will be:
[Chapter2: Supply under GST]
(a) Treated as deemed supply as per Para –2 of Schedule –I, because the aggregate
value of mobile phones is more than Rs 50,000.
(b) Not to be treated as deemed supply as per para 2 of schedule-I, because value of
the mobile phone is less than Rs. 50,000 per employee.
(c) Treated as deemed supply as per Para –2 of Schedule –I, because the value of
mobile phone is more than Rs 25,000 per employee.
(d) Treated as deemed supply as per Para –2 of Schedule –I, because the value of
mobile phone is more than Rs 35,000 per employee.
Answer: (b)
iv. In relation to taxability of supplies of copies from workshop to front office:
(a) Transfer from workshop to Nagpur front office will be treated as stock transfer not
liable to GST; however, transfer from workshop to the Mumbai front office will be
treated as branch transfer between distinct persons liable to GST.
(b) Transfer from the workshop to Nagpur front office and Mu mbai Front office will
be treated as stock transfer between distinct persons liable to GST.
(c) Transfer from the workshop to Nagpur front office and Mumbai Front office will

PAGE NO.

be treated as stock transfer not liable to GST.

(d) Transfer from workshop to the Mumbai front office will be treated as stock transfer
not liable to GST, however transfer from workshop to the Nagpur front office will
be treated as branch transfer between distinct persons liable to GST.
Answer: (c)
March 2021:
Question 13:
Ganesh Flour Mill Pvt Ltd., a registered supplier under GST having plant at Howrah, West Bengal,
is engaged in the business of food processing. Within the plant premises, there is a stock yard, an
office and a few residential quarters for employees of the company. After purchasing wheat from
local market/ mandi, the company processes it and packs and sells the finished products such as
atta, maida and suji in 1 Kg, 5 Kg & 10 Kg bags under the brand name “Ganesh Bhog”. The
aggregate turnover of the company during the preceding financial year was Rs. 7.50 crores.
Following details are provided by the company for the month of September:
Particulars Amount
(Rs.)
Sale of “Ganesh Bhog” atta, maida & suji 60,00,000
Purchase of wheat from mandi 14,00,000
Transportation charges paid to an unregistered goods transport operator for 40,000
transportation of wheat from mandi to factory
Hiring charges paid to a local truck owner (not a GTA) for transportation of 50,000
finished products from factory to distributors
Rent received from quarters allotted to employees 10,000
Electricity charges paid to West Bengal State Electricity Board 1,60,000
Bill raised by M/s BIS Security, Kolkata (a partnership firm registered under 1,18,000*
GST) for providing security service
Interest on delayed payment collected from customers 3,500
Interest on fixed deposit in a bank 8,600
Payment to Indian Chamber of Commerce (registered under GST) towards 25,000

sponsorship for Investor Summit at Kolkata
Legal fee paid to advocate, Mr. Ashok Ganguly 30,000

PAGE NO.

License fee paid to Food & Safety Standard Authority of India (FSSAI) 25,000
Following additional information has also been provided by the company:

(1) The security service bill raised by M/s BIS Security* is inclusive of GST @ 18%.
(2) Out of the total sales, “Ganesh Bhog” Atta worth Rs. 3,50,000 (10,000 Kg) was supplied to
Department of School Education, Govt. of West Bengal for further supply to affected families
during Covid-19. A subsidy of Rs.10/kg was received from Govt. of West Bengal for the said
supply.
(3) The company had given a contract to Starcon infra Pvt Ltd. for construction of a drying yard
within the factory premises for Rs. 40 lakh in the month of April, with a completion schedule of 3
months. However, the contractor could not complete the work within the scheduled time.
Therefore, a penalty @ 1% of contract value was recovered from the contractor during September.
(4) The company had awarded a maintenance contract to Power Electromech Pvt Ltd., Delhi on
10th June, for repair of DG set installed in the factory, for Rs. 60,000 with a completion period of
30 days. The maintenance work was completed on 08th July. However, due to some dispute
regarding quality of work, invoice was issued by Power Electromech Pvt Ltd. only on 5th
September and payment was released on 15th September.
(5) The company had delayed in making payment of GST amounting to Rs. 5,000 pertaining to
the month of April by 4 months. The proper officer has imposed a penalty for failure to pay GST
within the prescribed time limit.
(6) The company had deposited the tax liability for the month of August amounting to Rs.3,30,730
on 28th September.
Note. All the above amounts are exclusive of GST, wherever applicable, unless specified
otherwise. Based on the facts of the case scenario given above, choose the most appropriate answer
to the following questions:
i. The value of taxable outward supply made by the company in the month of September is
(a) Rs.61,48,100
(b) Rs.59,43,500
(c) Rs.61,39,500
(d) Rs.59,35,500
PAGE NO.

Answer: (b)
ii. The value of taxable supply received by the company in the month of September on which
GST is payable under reverse charge is-
(a) Rs.1,55,000
(b) Rs.1,73,000
(c) Rs.1,30,000
(d) Rs.2,45,000
Answer: (a)
iii. What is the time of supply of services provided by Power Electromech Pvt Ltd?
(a) 10th June
(b) 5th September
(c) 15th September
(d) 8th July
Answer: (d)
iv. The amount of interest payable by the company under section 50 of the CGST Act, 2017
for delay in payment of tax for the month of August?
(a) Rs.4961
(b) Rs.1305
(c) Rs.4567
(d) Rs.1142
Answer: (b)
v. In the context of the imposition of penalty on the company by the proper officer for failure
to pay GST of Rs.5,000, which of the following statements is correct?
(a) Penalty is leviable since the offence is not a “minor breach”.
(b) Penalty is not leviable since the offence is a “minor breach”.
(c) Penalty is leviable on failure to pay tax even if the offence is a minor breach.
(d) No penalty is leviable for delay in payment of tax; only interest is payable for delay

PAGE NO.

in payment of tax.
Answer: (a)
Question 14:
Mr. Dinanath of Kolkata, a registered person under GST deals in sales & services of electronic
goods such as TV, refrigerator, washing machine etc. His aggregate turnover during the preceding
financial year was Rs. 6.2 crores. He furnishes following information for the month of December.
Outward supplies during the month of December are as under:
Supply of goods to un-registered persons residing in & around Kolkata Rs. 12 lakh
Supply of goods to a dealer of Bihar Rs. 6 lakh
Supply of goods to registered dealers in West Bengal Rs. 28 lakh
Repair & maintenance services provided to un-registered persons Rs. 4 lakh
Inward supplies during the month of December are as under:

Particulars Amount
Purchase of goods from registered dealers (Inter-State supply) Rs.30
(Rs.)lakh
Purchase of goods from registered dealers (Intra-State supply) Rs.4 lakh

Purchase of goods from un-registered dealers (Intra-State supply) Rs. 2 lakh
Transportation charges paid to Om Logistics (GTA) (GST not charged by Rs. 2 lakh
transporter on said bill)
Payment made to Star Security Services Pvt Ltd (not registered under GST) for Rs. 0.50 lakh
providing security services
Loading & un-loading charges paid to laborer Rs. 0.10 lakh

Shop rent paid to Kolkata Municipal Corporation Rs. 0.30 lakh
Fee paid to Mr. Das, a Senior Advocate of Kolkata High court for legal service Rs. 0.10 lakh
Following additional information is also provided:

(a) During the course of un-loading TV sets, supplied by a registered person, one LED TV costing
Rs. 25,000 was damaged & the supplier refused to replace the same.
(b) The Assistant Commissioner of Commercial Tax, Kolkata has issued a show cause notice
(SCN), to Mr. Dinanath due to non-displaying of Registration Certificate & GSTIN at a prominent
place of principal place of business. Mr Dinanath’s plea is that the display GSTIN to general public

PAGE NO.

is not mandatory as it is required for buyers only & the same is already mentioned in the tax
invoice.
(c) GST rate on all inward and outward supplies is 18% (CGST @ 9%, SGST @ 9%, IGST @
18%), except transportation service which attracts GST @ 5%.
(d) There is no opening ITC available in the relevant period in electronic credit ledger of Mr
Dinanath.
(e) All the goods purchased by Mr Dinanath is ex-shop and he arranges his own transportation
through GTA.
Note. All the above amounts are exclusive of GST, wherever applicable. Based on the facts of the
case scenario given above, choose the most appropriate answer to the following questions:-
i. The total value of inward supplies on which GST is payable by Mr. Dinanath under reverse
charge is-
[Chapter 7: Value of Supply}
(a) Rs.2.40 lakh
(b) Rs.2.10 lakh
(c) Rs.2.90 lakh
(d) Rs.3.00 lakh
Answer: (a)
ii. The total value of inward supplies received during the month of December, not eligible for
input tax credit (ITC) is –
[Chapter 8: Input Tax Credit}
(a) Rs.2,50,000
(b) Rs.2,85,000
(c) Rs.2,90,000
(d) Rs.3,25,000
Answer: (b)
iii. The gross GST liability of Mr. Dinanath for the month of December, assuming that no ITC
is claimed/availed is –
(a) Rs.9,17,200
(b) Rs.9,43,200

PAGE NO.

(c) Rs.9,26,200
(d) Rs.9,20,800
Answer: (a)
iv. Which of the following statement is incorrect?
i. Tax liability under reverse charge can be discharged through electronic credit ledger.
ii. Transportation of goods by a registered person other than goods transport agency is not
covered under reverse charge.
iii. Inward supply of taxable goods which get damaged/destroyed is not eligible for ITC.
(a) (i)
(b) (ii)
(c) (iii)
(d) (i),(ii) and (iii)
Answer: (a)
v. The penalty that may be leviable for failure to display Registration Certificate & GSTIN
in a prominent location at principal place of business & at every additional place of
business is:-
(a) Rs.5000
(b) Rs.10,000
(c) Rs.25,000
(d) Nil
Answer: (c)
April 2021:
Question 15:
[Chapter 4 Exemptions from GST]
Bright Public School, New Delhi, under the aegis of Bright Minds Society, has provided/received
following services/supplies in the month of March:
1. Provided transportation services to its students, teachers and other staff for commuting to
and from school. Such transportation services are provided to Bright Public School by Ambaji
Transporters.

PAGE NO.

An amount of Rs. 1,500 per month is charged from students whereas such services are provided
free of cost to teachers and other staff, being part of their employment contract. Consolidated
amount of Rs. 2 lakh per month is paid to Ambaji Transporters.
2. It conducted entrance examination for students of Class 11 for upcoming academic year. It
charged entrance fee of Rs. 1,000 from external students and nominal entrance fee of Rs. 200 was
charged from internal students at school. A total of 2,000 students gave entrance exam out of which
1000 were internal students.
3. The school was an examination centre for Class XII Examination conducted on 27 th
March A sum of Rs. 15,000 was received from the Central Board of Secondary Education (CBSE)
for hosting the examination in school premises.
4. Bright Public School also provides boarding and lodging facilities to its students belonging to
other cities of India. A consolidated amount of Rs. 1,75,000 per annum is charged per student as a
consideration for educational services as well as for services of boarding and lodging provided to
them.
Note: The above amounts are exclusive of GST, wherever applicable.
Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos.
I to V :
i. Choose the most appropriate option in relation to service of transportation of students,
teachers and other staff provided by Bright Public School:
(a) The amount of Rs. 1,500 charged per student is a supply in terms of section 7 of
the CGST Act, 2017 and GST is payable on the same.
(b) The transportation services provided to students, teachers, other staff is exempt
from GST.
(c) The transportation services provided to students is not a supply as it has been
specifically exempted from GST under section 11 of the CGST Act, 2017.
(d) Transportation services provided to teachers and staff are exempt from GST.
However, since Rs. 1,500 is being charged from students for their transportation, it
is not an exempt supply and GST is payable on the same
Answer: (b)
ii. Choose the most appropriate option in relation to entrance fee charged by Bright Public
School from the students:
PAGE NO.

(a) No GST is leviable on entrance fee charged from internal students. However, GST
is payable by school on entrance fee charged from outside students as it is a service
in relation to entrance examination provided to outsiders who are not students of
school and therefore, supply is not eligible for exemption.
(b) GST is payable on whole of the consideration received from students (internal and
external both) as only services provided to educational institution relating to
admission or conduct of examination are exempt and not the services provided by
educational institution for conduction of examination.
(c) No GST is payable on consideration of Rs. 12,00,000 received from students in the
form of entrance exam fee as such amount is exempt from GST. However, it still
qualifies to be a supply as per the CGST Act, 2017 and needs to be reported in the
return for the month of May as exempt supply.
(d) Since, entrance exam fee is received for admission to the upcoming academic
session, the amount of consideration needs to be amortized over the year and value
of such supply would be reported in the respective month as nil rated supply.
Answer: (c)
iii. Choose the most appropriate option in relation to Bright Public School being an
examination center for conducting conduct of Class XII examination:
(a) It is not an exempt supply under section 11 of the CGST Act, 2017 as services are
provided to CBSE which is not an educational institution (but a governing body) as
per the provisions of the Act.
(b) It is an exempt supply under section 11 of the CGST Act, 2017 as CBSE is treated
as educational institution for the limited purpose of providing services by way of
conduct of examination to the students.
(c) It is not an exempt supply under section 11 of the CGST Act, 2017 as only those
services provided by an educational institute by way of conduct of examination are
exempt which are provided against consideration in the form of entrance fee.
(d) There is no exemption for services provided by an educational institution for
conduct of examination.
Answer: (b)

PAGE NO.

iv. Choose the most appropriate option in relation to boarding and lodging facilities provided
by Bright Public School in addition to educational services and consideration charged
thereto:
(a) It is a composite supply where the principal supply is educational services. Since
the principal supply is exempt, the entire consideration of Rs. 1,75,000 is also
exempt from tax.
(b) It is a composite supply where the principal supply is that of boarding and lodging
services and educational services are incidental to boarding and lodging services.
Therefore, the tax is payable at the rate applicable to principal supply, i.e., boarding
and lodging services.
(c) It is a mixed supply where educational services and boarding and lodging services
are independent of each other. Therefore, the tax is payable at the highest rate of
tax applicable among these supplies.
(d) It is a mixed supply where educational services and boarding and lodging services
are independent of each other. Since educational services are exempt, the tax is
payable at the rate of tax applicable on boarding and lodging services.
Answer: (a)
v. Choose the most appropriate option in relation to supply of service by Ambaji Transporters
to Bright Public School:
(a) GST is payable on the services provided by Ambaji Transporters as they are
covered under section 9(3) of the CGST Act, 2017 which includes services by a
transporter.
(b) GST is not payable on the services provided by Ambaji Transporters as services
provided by it do not qualify as supply under the CGST Act, 2017.
(c) GST is not payable on the services provided by Ambaji Transporters as they have
been specifically exempted under section 11 of the CGST Act, 2017. However,
section 9(3) of the CGST Act, 2017 overrides all other provisions of the CGST Act,
2017 which are contrary to it, thereby making Ambaji Transporter liable to pay
GST.

PAGE NO.

(d) GST is not payable on the services provided by Ambaji Transporters as they have
been specifically exempted under section 11 of the CGST Act, 2017. Tax is not
payable on reverse charge basis on the same under section 9(3) of the CGST Act,
2017.
Answer: (d)
Question 16:
Mr. A is a practicing Chartered Accountant who is supplying the service in the field of auditing
and assurance. His earnings during the current financial year are as follows- : Income from the
auditing and assurance service provided during the year- Rs. 1,86,00,000
1. Income for acting as an examiner from the ICAI and ICSI (not on their rolls) in the month
of June - Rs. 2,50,000
2. Rental income from a commercial property, during the year- Rs. 13,90,000.
Further, in the month of April, Mr. B purchased 10 computers at a price of Rs. 25,000 each, for
his office as new staff has been recruited by his HR team and had availed and utilized ITC on the
same.
On 31st October, out of these 10 computers, Mr. A shifted 2 computers at his residence for his son
for learning purpose. Open market value of each of these computers, on 31st October, is Rs.
10,000.
Mr. A belatedly filed GSTR-3B for the month of December, by 5 days. Value of taxable supply
for the month of December is Rs. 10,00,000 (included in his details of earnings mentioned above).
Applicable rate of tax on said supply is 18%.
Note:
1. All the above amounts are exclusive of taxes, wherever applicable.
2. The opening balance of input tax credit of Mr. A for the relevant tax period is nil. Subject to the
information given above, assume that all the other conditions necessary for availing ITC have been
fulfilled.
3. There is no other inward or outward supply transaction for Mr. A in the relevant period apart
from the aforementioned transactions.
Based on the facts of the case scenario given above, choose the most appropriate answer to Q.
Nos. i. to iv. as follows :-

PAGE NO.

i. Assuming that the current financial year is the financial year 2019 -20, Mr. A is required to
maintain and retain the books of accounts for said financial year under the GST law up to
[Chapter 11: Accounts and Records, E-way Bills]
(a) 31st December 2025
(b) 31st December 2026
(c) 31st December 2027
(d) 31st December 2028
Answer: (b)
ii. Aggregate turnover for the purpose GST audit is ___ _

(a) Rs. 2,02,50,000
(b) Rs. 2,02,90,000
(c) Rs. 2,02,65,000
(d) Rs. 2,02,60,000
Answer: (d)
iii. Total taxable turnover of Mr. A for the current financial year is _.
(a) Rs. 2,00,10,000
(b) Rs. 2,00,40,000
(c) Rs. 2,02,60,000
(d) Rs. 2,02,50,000
Answer: (a)
iv. Which of the following is/are not a supply under GST law? _.
(a) Service provided as an examiner to ICAI and ICSI
(b) Rental income as it is not related to business
(c) Shifting of computers at home for personal purpose as there is no consideration
Answer: (d)
v. Which of the following statement(s) is/are correct with respect to interest liability of Mr.
A, for the month of December? _.
PAGE NO.


(a) Interest liability of Mr. A is Rs. 444 and he can pay the same either from input tax
credit available in electronic credit ledger or in cash.
(b) Interest liability of Mr. A is Rs. 444 and he cannot utilize the input tax credit for
the payment of interest. He needs to pay the interest in cash.
(c) Interest liability of Mr. A is Rs. 2,466 and he can pay the same from input tax credit
available in electronic credit ledger or in cash.
(d) Interest liability of Mr. A is Rs. 2,466 and he cannot utilize the input tax credit for
Answer: (b)
BOOKLET
Question 17:
Aspire Solutions Private Limited (hereinafter referred to as ‘Aspire Solutions’) is engaged in
providing multidimensional services to its clients through its office in Haryana, registered under
GST. During the month of July, following transactions were und ertaken by Aspire Solutions:
(i) Import of certain cloud services from Bizcart.com for an amount of Rs. 50,00,000. There
is an additional charge of 2% as equalisation levy on such services in India which is recovered
from the offshore service supplier by the Government. Bizcart.com passes the taxes to its
customers by charging them, as its internal policy.
(ii) Aspire Solutions pays sitting fee of Rs. 25,000 each to its 4 directors per month. Further,
there are two directors who are in the executive roles and are withdrawing Rs. 2,00,000 each per
month as salary from the company and the applicable TDS amount, under section 192 of the
Income-tax Act, 1961, is deducted from such salary.
(iii) Aspire Solutions paid for life insurance of its employees in compliance of its internal
policy. The amount of premium was Rs. 5,00,000.
(iv) Aspire Solutions provided consultancy services to its client, Zoom Corp. based in
Bangalore and issued an invoice of Rs. 30,00,000.

PAGE NO.

(v) Empowering India is a non-government organisation located in Haryana. It aims at

empowering the eligible companies to grow their business in India. Aspire Solutions, being one of
the eligible companies, received a subsidy of Rs. 5,00,000 in lumpsum from Empowering India
for the month of July.
(vi) Aspire Solutions provided sponsorship services to Mr. X, an individual, for an event
organised by it in the State of Haryana. The amount agreed for such sponsorship services is Rs.
5,00,000.
All the amounts given above are exclusive of GST unless otherwise provided. There is no other
outward or inward supply transaction apart from aforesaid transactions in the month of July.
The opening balance of input tax credit for the relevant tax period for the company is nil. Subject
to the information given above, assume that all the other conditions necessary for availing ITC
have been fulfilled.
GST is applicable on all inward and outward supplies at the following rates:
Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos
I to v
i. The GST liability for cloud services procured by Aspire Solutions from Bizcart.com shall
be:
[Chapter 14 : Import & Export under GST]
(a) on Bizcart.com since the services are online information and database access or
retrieval services and GST of Rs. 9,00,000 shall be paid by Bizcart.com.
(b) nil. There will not be any GST liability on the transaction since Bizcart.com is
located outside India and services are provided electronically.
(c) on Bizcart.com under forward charge and GST of Rs. 9,18,000 shall be paid by
Bizcart.com.
(d) on Aspire Solutions under reverse charge and GST of Rs. 9,18,000 shall be paid by
Aspire Solutions.
Answer: (d)

PAGE NO.

ii. Aspire Solutions seek your advice on the taxability of the sitting fee payable to directors
and salary payable to the executive directors. The correct advice is:
[Chapter 2 : Supply under GST]
(a) Sitting fees paid to the directors is liable to GST under reverse charge and the salary
paid to executive directors shall not be liable to GST.
(b) Total amount payable to directors (sitting fees as well as salary) is exempt from
GST.
(c) Total amount payable to directors (sitting fees as well as salary) is liable to GST
under reverse charge in hands of Aspire Solutions.
(d) Total amount payable to directors (sitting fees as well as salary) is liable to GST
under forward charge in the hands of the directors as professional income.
Answer: (a)
iii. What shall be the amount of input tax credit available with Aspire Solutions for the month
of July?
[CH 8 : Input Tax Credit]
(a) Rs. 10,26,000
(b) Rs. 11,16,000
(c) Rs. 9,36,000
(d) Rs. 1,96,000
Answer: (c)
iv. Compute the value of outward supplies made by Aspire Solutions in July.
[Chapter 2,3,7 : Supply under GST, Charge of GST & Value of Supply]
(a) Rs. 30,00,000
(b) Rs. 25,00,000
(c) Rs. 35,00,000
(d) Rs. 40,00,000
Answer: (c)
v. Compute the amount of GST to be deposited in cash by Aspire Solutions for the month of
July.
[Chapter 3 : Charge of GST]

PAGE NO.

(a) Nil
(b) Rs. 7,20,000
(c) Rs. 9,36,000
(d) Rs. 6,30,000
Answer: (c)
Question 18:
Supernova India Limited is a 100% subsidiary of Supernova LLC, Japan, registered under GST in
the State of Gujarat. Supernova Inc., Singapore, is another subsidiary of Supernova LLC, Japan,
and is engaged in supply of industrial goods to customers across the world.
In India, Supernova Inc., Singapore, sells the goods to a sub-contractor registered under GST in
the name of Alpha Limited in the State of Maharashtra. Alpha Limited imports the goods sold by
Supernova Inc., Singapore and carries out the required technical process on such goods in the
factory located in Maharashtra.
After the processing of goods by Alpha Limited, the goods are sold by Alpha Limited to Supernova
India Limited for further sales to end customers.
As a holding company, Supernova LLC, Japan, recovers an amount equivalent to 20% of the sales
made by Supernova India Limited as commission on monthly basis.
During the month of January, Alpha Limited imported the goods worth Rs. 10,00,000 from
Supernova Inc., Singapore. The inter-State purchases of Alpha Limited from domestic market
amounted to Rs. 2,00,000 during the month of January. The value of processed goods sold by
Alpha Limited to Supernova India Limited amounted to Rs. 10,00,000. Further, Supernova India
Limited paid an additional amount equivalent to Rs. 2,00,000 for transportation and handling of
goods to third party, which was contractually agreed to be paid by Alpha Limited. No GST was
payable on such transportation and handling to the third party. Alpha Limited has also charged an
amount equivalent to Rs. 12,000 on such processed goods as miscellaneous municipal levy (other
than GST) payable in the State of Maharashtra.
Supernova India Limited sold the goods purchased from Alpha Limited in the month of January
as per the details provided below:
1. Rs. 6,00,000 worth goods to X Ltd, a customer located in the State of Rajasthan.
2. Rs. 8,00,000 worth goods to Y Ltd, a customer located in the State of Gujarat.

PAGE NO.

There is no opening stock and closing stock for the month of January with Supernova India
Limited.
In January, Supernova India Limited sent 5 of its employees of finance team to Singapore for
training purpose. The training was given by Supernova Inc., Singapore, at its office located in
Singapore. The expenses related to such training were paid by Supernova India Limited to
Supernova Inc., Singapore.
Further, an employee of Supernova India Limited had visited the manufacturing unit of Alpha
Limited in Mumbai, Maharashtra and had stayed in the hotel located in Mumbai, Maharashtra, in
the month of January. At the time of checkout from hotel, the invoice was issued for an amount
equivalent to Rs. 1,00,000. The hotel had issued invoice in the name of Supernova India Limited
and GST was charged at the rate of 14% CGST and 14% SGST on total invoice amount of Rs.
1,00,000. Out of such amount, the amount recoverable from the employee towards non-official
stay by Supernova India Limited was Rs. 50,000.
Fun Events Ltd., an event management company at New Delhi, had organized an event in the
month of January for Supernova India Limited, in Mauritius.
The opening balance of input tax credit of both Alpha Limited as well as Supernova India Limited
for the relevant tax period is nil. Further, there is no other inward or outward supply transaction
for Alpha Limited in January apart from the aforementioned transactions. Subject to the
fulfilled.
All the above transactions are exclusive of GST, wherever applicable. GST is applicable in the
aforesaid case scenario at the following rates unless otherwise specified:
The rate of basic customs duty on import of goods is nil. However, IGST is applicable on import
of goods. No additional duty or cess is applicable on the import of goods or services.
i to v as follows:-

PAGE NO.

i. The total GST liability net of input tax credit, if any, of Alpha Limited for the month of
January is:
[Chapter 7 : Value of Supply]
(a) Rs. 2,18,160 payable as IGST.
(b) nil.
(c) Rs. 2,160 payable as IGST.
(d) Rs. 1,09,080 payable as CGST and Rs. 1,09,080 payable as SGST.
Answer: (c)
ii. What shall be the gross IGST liability i.e. without any adjustment of input tax credit, if
any, of Supernova India Limited for the month of January?
[Chapter 5 : Place of Supply]
(a) Rs. 1,08,000
(b) Nil
(c) Rs. 1,58,400
(d) Rs. 33,840
Answer: (c)
iii. How shall the amount paid towards the training expenses employees of finance team of
Supernova India Limited be treated under the GST law?
(a) No GST is applicable on the transaction since training was imparted in Singapore,
i.e. place outside India.
(b) GST is applicable on the training expenses and is payable as IGST by Supernova
India Limited since the place of supply for training services in case of registered
person is location of such registered person.
(c) Supernova Inc., Singapore, is required to obtain registration as casual taxable
person in India and discharge the GST liability in India.
(d) Supernova Inc., Singapore, is required to obtain registration as online information
and database access or retrieval service provider in India and discharge the tax
liability on training service.
Answer: (a)

PAGE NO.

iv. Whether input tax credit is available on the GST paid by Supernova India Limited on the
invoice amounting to Rs. 1,00,000 to the hotel located in Mumbai, Maharashtra, for stay
of the employee? If yes, please specify the amount of input tax credit available.
(a) Yes, as Rs. 14,000 CGST and Rs. 14,000 SGST
(b) Yes, as Rs. 28,000 IGST
(c) No input tax credit is available
(d) Yes, as Rs. 7,000 CGST and Rs. 7,000 as SGST
Answer: (c)
v. Whether GST is applicable on the event organized by Fun Events Ltd. for Supernova India
Limited in Mauritius and what is the place of supply in such case?
(a) GST is applicable and the place of supply is New Delhi.
(b) GST is applicable and the place of supply is Gujarat.
(c) GST is not applicable and the place of supply is Mauritius.
(d) GST is applicable and the place of supply is Mauritius.
Answer: (b)
Question 19:
Doodle Inc. is an entity incorporated in USA and is engaged in provision of various information
technology related services directly as well as through its subsidiaries located across the world. In
India, Doodle India, a subsidiary of Doodle Inc., is registered under GST in the State of Karnataka
under GST and is providing services to various customers in India.
Doodle Inc. provides cloud-based storage services to its customers (business entities and non-
business entities) in India. The customers can subscribe to the services by making online payment
directly to Doodle Inc.’s bank account through internet banking and other modes. The terms and
conditions for such services are entered between Doodle Inc. and the customer directly without
involvement of any third party.
In case of any issue, the customers can call and log the issue at the customer help centre which is
operated by Doodle India on principal-to-principal basis. For operation of such customer help
centre, Doodle India is paid on cost plus 10% basis by Doodle Inc. on monthly basis.

PAGE NO.

Further, Doodle India is engaged in promotion and marketing of cloud-based storage services on
principal to principal basis in India for Doodle Inc. The payment for such services is made by
Doodle Inc. to Doodle India on monthly basis at cost plus 20%. The promotional and marketing
activities are carried out in the name of Doodle Inc., without any reference to operations of Doodle
India.
Doodle Inc. owns online space for advertisement on internet. Doodle Inc. has agreed to sell such
online advertising space to Doodle India for an amount of Rs. 5,00,00,000 per month. Doodle India
sells such advertising space to its customers in India on its own account. The contractual
arrangement for sale of such advertising space is between the customer and Doodle India.
Doodle Inc. provides technology support to Doodle India and charges royalty from Doodle India
for such technology support at a fixed charge of Rs. 25,00,000 per month. The royalty paid is
exclusively related to the business of advertising space of Doodle India.
In addition to above information, during the month of January:

(I) Doodle India has incurred following expenses:
1. Expenses exclusively related to operation of call centre – Rs. 75,00,000
2. Expenses exclusively related to promotion and marketing services for Doodle Inc. – Rs.
50,00,000
(II) Doodle India earned an income of Rs. 8,00,00,000 from sale of online advertising space in
India.
(III) Doodle Inc. earned an income of Rs. 10,00,00,000 from non-taxable online recipient
customers, from cloud-based storage services in India.
The opening balance of input tax credit for the relevant period for Doodle India is nil.
Note: In the aforesaid case scenario,
(i) GST is applicable on all inward and outward supplies unless otherwise specified:
A. Intra-State supply – 9% CGST and 9% SGST
B. Inter-State supply – 18% IGST
(ii) Subject to the information given above, assume that all the other conditions necessary for
availing ITC have been fulfilled.

PAGE NO.

(iii) All the amounts are exclusive of GST, wherever applicable, unless otherwise provided.
i to v as follows:-
i. What shall be the output tax payable, without any adjustment of input tax credit, if any, by
Doodle India for the month of January?
(a) Rs. 1,44,00,000
(b) Rs. 2,38,50,000
(c) Rs. 1,69,65,000
(d) Rs. 1,66,50,000
Answer: (a)
ii. What shall be the net GST liability of Doodle Inc. for the month of January?
[Chapter 5,14 : Place of Supply, Import & Export under GST]
(a) Nil
(b) Rs. 1,80,00,000
(c) Rs. 1,84,50,000
(d) Rs. 2,74,50,000
Answer: (b)
iii. What shall be the total input tax credit of Doodle India from the transactions undertaken in
the month of January?
[Chapter14 : Import & Export under GST]
(a) Total input tax of Rs. 90,00,000
(b) Total input tax of Rs. 1,12,50,000
(c) Total input tax of Rs. 1,17,00,000
(d) Total input tax of Rs. 27,00,000
Answer: (c)
iv. Please select the correct statement specifically in relation to sale of online advertisement
space service provided by Doodle Inc. to Doodle India:

PAGE NO.

[Chapter 5,14 : Place of Supply, Import & Export under GST]

(a) Doodle Inc is providing online information and database access or retrieval service
and is thus, required to register in India under GST and discharge GST on forward
charge basis.
(b) Doodle Inc is providing online information and database access or retrieval service
electronically and place of supply in such case is the location of supplier which is
outside taxable territory in present scenario. Therefore, no GST is payable on such
services.
(c) Doodle Inc. is providing online information and database access or retrieval service
and tax on the same is to be paid by Doodle India on reverse charge basis.
(d) Doodle Inc. is providing online information and database access or retrieval service
and tax on the same is to be paid by Doodle India in capacity of an agent of Doodle
Inc.
Answer: (c)
Question 20:
XYZ Ltd. is registered with the jurisdictional GST authorities in the State of Rajasthan and
operates in multiple businesses. The principal business of XYZ Ltd. is works contract service being
provided to the customers by way of fabricating and installing the body for large transportation
vehicles. The chassis of the vehicles are provided by the customers to XYZ Ltd. XYZ Ltd. procures
the material for fabrication and installs the same on the chassis against a lumpsum agreed amount
for material as well as services.
In addition to the above business, XYZ Ltd. is also engaged in providing transportation of goods
by road through its own fleet of trucks. GST is chargeable on such services @ 5%.
During the month of January, XYZ Ltd. undertook the following transactions:
(i) Provided transportation of goods services to A Ltd., a registered person under GST in the
State of Gujarat and received an amount of Rs. 10,00,000 as consideration for the same.
(ii) Purchased tyres for its own fleet of trucks and paid an amount of Rs. 1,00,000 for such
purchases.
(iii) Purchased a machinery with an advance technology for fabrication of body for luxury buses
amounting to Rs. 50,00,000. The machinery is installed at XYZ Ltd.’s premises and the same was
purchased from B Ltd., a registered person in the State of Rajasthan. B Ltd. procured such

PAGE NO.

machinery from C Ltd., a registered person under GST in the State of Maharashtra. The delivery
was made by C Ltd. directly at the premises of XYZ Ltd. and installation work was carried out by
the engineers of C Ltd. The amount charged by C Ltd. from B Ltd. was Rs. 42,00,000.
(iv) XYZ Ltd. procured certain engineering services for its fabrication business through
electronic mode from Lummus Inc., a company located in Italy. The consideration paid to Lummus
Inc. was Rs. 15,00,000. Further, certain goods were exported by XYZ Ltd. for carrying out repairs
work on the same to Lummus Inc. The consideration paid for such goods was Rs. 5,00,000.
(v) Provided transportation services to ABC Ltd., its related party and received an amount of
Rs. 5,00,000. The arm’s length amount of such services provided to third party unrelated customers
was Rs. 7,00,000.
(vi) XYZ Ltd. sold scrap relating to fabrication business amounting to Rs. 5,00,000.
(vii) Purchased goods relating to fabrication business for Rs. 10,00,000 out of which goods
worth Rs. 1,00,000 were stolen from the premises of XYZ Ltd.
(viii) Received an advance of Rs. 10,00,000 for fabrication work on new chassis and Rs.
3,00,000 towards transportation services from W Ltd., a registered person under GST in the State
of Madhya Pradesh.
The opening balance of input tax credit for the relevant tax period for XYZ Ltd. is nil. All the
above amounts are exclusive of GST, wherever applicable.
The applicable GST rate on all inward and outward supplies is 18% unless specified otherwise.
Subject to the information given above, assume that all the other conditions necessary for availing
ITC have been fulfilled.
I to v:-
i. Determine the net outward GST liability, payable in cash, of XYZ Ltd. for the month of
January.
[Chapter 3,6,16 : Charge of GST, Time of Supply & Job Work]
(a) Rs. 5,40,000
(b) Rs. 2,70,000
(c) Nil

PAGE NO.

(d) Rs. 7,38,000

Answer: (b)
ii. What shall be the total eligible input tax credit available to XYZ Ltd. for the month of
January?
[Chapter 3,5,8 : Charge of GST, Place of Supply & Input Tax Credit]
(a) Rs. 10,80,000
(b) Rs. 10,62,000
(c) Rs. 13,32,000
(d) Rs. 9,00,000
Answer: (c)
iii. Whether Lummus Inc. is required to obtain registration in India to discharge GST liability?
If yes, compute the amount of GST liability to be discharged by it in the month of January?
[Chapter 2,5 : Supply under GST & Place of Supply]
(a) Yes, as online infor mation database access and retrieval service provider. GST
payable is Rs. 3,60,000
(b) Yes, as online information database access and retrieval service provider. GST
payable is Rs. 2,70,000
(c) No, GST liability of Lummus Inc. is nil.
(d) Yes, as normal taxpayer. G ST payable is Rs. 3,60,000
Answer: (c)
iv. Determine the GST liability of XYZ Ltd. on transportation of goods services provided to
ABC Ltd.
(a) Nil
(b) Rs. 90,000
(c) Rs. 1,26,000
(d) Rs. 36,000
Answer: (a)
v. In case of the machinery sold and fabricated by C Ltd., the place of supply and tax charged
shall be:

PAGE NO.

(a) Location of C Ltd.; IGST of Rs. 7,56,000

(b) Location of XYZ Ltd.; IGST of Rs. 7,56,000
(c) Location of B Ltd.; IGST of Rs. 9,00,000
(d) Location of C Ltd.; CGST of Rs. 3,78,000 and SGST of Rs. 3,78,000
Answer: (b)
Question 21:
Varun Associates is a supplier registered under GST in Delhi. It is engaged in manufacture of
Product A and Product B. Product A is a taxable product whereas Product B is an exempt product.
It is also engaged in manufacture of Product C, a taxable product, which is exported by it to other
countries without payment of tax under Letter of Undertaking.
It has furnished following information regarding purchase of the machineries for his
manufacturing business:
Date of purchase Machinery Amount (Rs.)
(exclusive of
taxes)
1st April, 2018 Machinery X 10,00,000 Exclusively used

for
manufacturing
Product A
1st October, 2019 Machinery Y 15,00,000 Exclusively used

for
manufacturing
Product B
1st May, 2020 Machinery Z 20,00,000 Exclusively used

for zero-rated
supply of
Product C
From 1st April, 2021, Varun Associates started using Machinery Y for manufacturing Product A
as well.

PAGE NO.

All the purchases and sales are inter-State and rate of IGST applicable on all purchases and sales
is 18%. Subject to the information given above, assume that all the other conditions necessary for
i. The amount of input tax which has been credited to electronic credit ledger during the
financial year 2018-19-
(a) Rs. 1,80,000
(b) Rs. 3,60,000
(c) Rs. 8,10,000
(d) Rs. 5,40,000
Answer: (a)
ii. The amount of GST, paid on purchase of a machinery, which has not been credited to
electronic credit ledger during the financial years 2018-19, 2019-20 and 2020-21 –
(a) Rs. 6,30,000
(b) Rs. 3,60,000
(c) Rs. 8,00,000
(d) Rs. 2,70,000
Answer: (d)
iii. Amount of ineligible ITC in respect of Machinery Y, i.e. ‘Tie’, as per rule 43 of the CGST
Rules, 2017, to be added to the output tax liability is-
(a) Rs. 4,81,000
(b) Rs. 1,89,000
(c) Rs. 81,000
(d) Rs. 72,000
Answer: (c)
iv. What is the time-period up to which common credit needs to be computed for Machinery
Y?

PAGE NO.


(a) 31st March, 2026
(b) 30th September, 2024
(c) 31st March, 2028
(d) 30th September, 2028
Answer: (b)
v. The amount of common credit for the month of April, 2021 is-
(a) Rs. 2,02,500
(b) Rs. 2,70,000
(c) Rs. 6,30,000
(d) Rs. 4,90,500
Answer: (b)
vi. How is the amount of common credit attributable to exempt supplies treated under rule 43
of the CGST Rules, 2017?
(a) It shall be added to output tax liability of Varun Associates.
(b) It shall be reversed by Varun Associates.
(c) 50% of common credit attributable to exempt supplies shall be reversed by Varun
Associates and remaining 50% shall be added to output tax liability.
(d) It shall lapse.
Answer: (a)
.Question 22:
M/s Gopi Narayan & Company is a partnership firm of advocates, registered under GST in
Mumbai, Maharashtra. In the month of April, the firm has supplied services amounting to Rs. 15
lakh. The following information is provided in relation to the some of the services provided:
S.No Particulars Value of
service (Rs.)

PAGE NO.

1. Herbal Power (P) Ltd. (Registered in Telangana 50,000

in the preceding financial year under section
22 of the CGST Act, 2017)
Provided consultation for preparation of an

affidavit in relation to construction of a hotel
building in the State of Maharashtra.
2. Veranta India (P) Ltd. (Registered in Gujarat in 200,000
the preceding financial year under section 22 of
the CGST Act, 2017)
Filed a suit in the Gujarat High Court on behalf

of the company.
3. Ms. Saloni (Registered under GST as a salon -
service provider in Maharashtra in the preceding
financial year under section 22 of the CGST Act,
2017)
Service amounting to Rs. 1 lakh was provided in

the month of February for which invoice was
issued on 15th February. However, payment is
made by the client on 5th April. The firm has

charged Rs. 10,000 as penalty for delayed
payment of consideration. Said penalty is also
paid by the client on 5th April. Apart from this,

the firm had paid Rs. 20,000 as attestation
charges on behalf of the client which were
reimbursed by the client in the month of February
itself.
Note: The turnover of M/s Gopi Narayan & Company in the previous financial year was Rs. 50
lakh. The firm is engaged solely in providing legal services and it does not import/export any
services from/to outside India.

PAGE NO.

i. Whether the service provided to Veranta India (P) Ltd. is exempt under GST? If not,
whether tax is payable under reverse charge?
(a) Yes, all services provided by an advocate firm are exempt from GST.
(b) No, since service is provided to a business entity that is registered under GST in the
preceding financial year under section 22 of the CGST Act, 2017. However, tax
shall be payable by M/s Gopi Narayan & Company under forward charge.
(c) Yes, any service provided by an advocate firm to a business entity is exempt under
GST.
(d) No, since service is provided to a business entity that is registered under GST in the
preceding financial year under section 22 of the CGST Act, 2017. Further, tax shall
be payable by Veranta India (P) Ltd. under reverse charge.
Answer: (d)
ii. What shall be the time of supply for supplies made to Ms. Saloni in respect of original
amount Rs. 1 lakh and penalty amount of Rs. 10,000?
(a) For whole amount of Rs. 1,10,000: 15th February
(b) For Rs. 1 lakh: 15th February and for Rs. 10,000: 5th April
(c) For whole amount of Rs. 1,10,000: 5th April
(d) For Rs. 1 lakh: 15th April and for Rs. 10,000: 5th April
Answer: (c)
iii. What shall be the value of supply provided to Ms. Saloni in terms of section 15 of the
CGST Act, 2017?
(a) Rs. 110,000
(b) Rs. 100,000
(c) Rs.130,000
(d) Rs. 120,000

PAGE NO.

Answer: (a)
iv. Which of the following statements is/are correct in law?
i. M/s Gopi Narayan & Company is eligible to opt for composition levy under sub-sections
(1) and (2) of section 10 of the CGST Act, 2017.
ii. M/s Gopi Narayan & Company is not eligible to opt for composition levy under sub-
sections (1) and (2) of section 10 of the CGST Act, 2017.
iii. M/s Gopi Narayan & Company is eligible to opt for composition levy under sub-section
(2A) of section 10 of the CGST Act, 2017.
iv. M/s Gopi Narayan & Company is not eligible to opt for composition levy under sub-section
(2A) of section 10 of the CGST Act, 2017.
(a) (i)
(b) (i) and (iv)
(c) (ii) and (iv)
(d) (ii) and (iii)
Answer: (c)
Question 23:
Jain Bhagwan (P) Ltd. deals in supply of air conditioners (ACs). It also undertakes installation of
ACs at the premises of the client. The company has provided the following details for the month
of February:
Date Transaction
2nd February Supply and installation of 10 ACs at the newly

established office of M/s Ram Mohan & Associates, a CA
firm, registered under GST in New Delhi. The company
charged Rs. 21,000 per AC from the CA firm.
15th February Service of installation of 15 ACs at Mr. Varun’s Mansion

in Chandigarh. Mr. Varun is an individual and is
unregistered. The company has charged
Rs. 2,000 per installation. The company forgot to issue
the invoice for the service. However, payment was

PAGE NO.

received in advance on 13th February.
20th February Received advance of Rs. 2,00,000 from Sunshine Ltd.

for installation of AC at its factory in Bawana, Delhi on
28th February. The invoice is issued on the date of
provision of service, i.e., on 28th February. The client is

registered under GST in New Delhi.
Other relevant information:

1. Standard price charged:
Air Conditioner: Rs. 20,000 per piece
Service of installation of air conditioner: Rs. 2,000 per installation
AC + Installation: Rs. 21,000 per piece
2. Applicable rate of taxes:
Date of transaction Applicable Applicable rate of
rate of GST GST on supply of
on supply of service of
air installation of air
conditioner conditioner
Before 22nd February 18% 5%
On or after 22nd February 12% 12%
3. Jain Bhagwan (P) Ltd. is registered under GST in Delhi.

4. One order for supply of 100 ACs in Hongkong has been received by the company. The company
is unable to determine the time and value of supply for this supply.
Q. Nos I to v as follows:-
i. What rate of tax should the company charge on supply made to M/s Ram Mohan &
PAGE NO.

Associates?
(a) 18%
(b) 5%
(c) 18% on AC value and 5% on installation value
(d) 12%
Answer: (a)
ii. What is the time of supply of service provided to Mr. Varun?

(a) 15th February
(b) 16th February
(c) 13th February
(d) 14th February
Answer: (c)
iii. Sunshine Ltd. contended that GST should be charged @ 12% since supply is made after
change in rate of tax. Advise whether the contention of Sunshine Ltd. is valid as per GST
law.
(a) No. Since payment has been received before the change in rate of tax, old rate shall
be applicable.
(b) Yes. Since provision of service and issue of invoice is after the change in rate of
tax, new rate shall be applicable.
(c) No. Since time of supply shall be earlier of date of receipt of payment and date of
issue of invoice, old rate shall be applicable.
(d) Yes. Since provision of service is after change in rate of tax, new rate shall be
applicable. Date of invoice is not relevant.
Answer: (b)
iv. Since Jain Bhagwan (P) Ltd. is unable to determine the time and value of supply of air
conditioners to be supplied in Hongkong, it decides to seek the advance ruling in the given
case. Which of the following statements are true in this regard?
PAGE NO.

[Chapter 23 : Advance Ruling]

(a) Jain Bhagwan (P) Ltd. can seek advance ruling to determine the time and value of
supply of air conditioners. After seeking advance ruling, if it is aggrieved with the
finding of the Authority for Advance Ruling (AAR), it can also file an appeal with
Appellate Authority for Advance Ruling (AAAR).
(b) Jain Bhagwan (P) Ltd. can seek advance ruling to determine the time of supply of
air conditioners, but advance ruling cannot be sought for determining the value of
supply of air conditioners. Order of AAR is final and cannot be appealed against.
(c) Jain Bhagwan (P) Ltd. cannot seek advance ruling to determine the time and value
of supply of air conditioners.
(d) Jain Bhagwan (P) Ltd. can seek advance ruling to determine the time and value of
supply of air conditioners. Order of AAR is final and cannot be appealed against.
Answer: (a)
Question 24:
Bright Public School, New Delhi, under the aegis of Bright Minds Society, has provided/received
following services/supplies in the month of March:
1. Provided transportation services to its students, teachers and other staff for commuting to
and from school. Such transportation services are provided to Bright Public School by Ambaji
Transporters.
An amount of Rs. 1,500 per month is charged from students whereas such services are provided
free of cost to teachers and other staff, being part of their employment contract. Consolidated
amount of Rs. 2 lakh per month is paid to Ambaji Transporters.
2. It conducted entrance examination for students of Class 11 for upcoming academic year. It
charged entrance fee of Rs. 1,000 from external students and nominal entrance fee of Rs. 200 was
charged from internal students at school. A total of 2000 students gave entrance exam out of which
1000 were internal students.
3. The school was an examination centre for Class XII Examination conducted on 27th
March. A sum of Rs. 15,000 was received from the Central Board of Secondary Education (CBSE)
for hosting the examination in school premises.
4. Bright Public School also provides boarding and lodging facilities to its students belonging
to other cities of India. A consolidated amount of Rs. 1,75,000 per annum is charged per student

PAGE NO.

as a consideration for educational services as well as for services of boarding and lodging provided
to them.
Note: The above amounts are exclusive of GST, wherever applicable.
Q. Nos. I to v .:-
i. Choose the most appropriate option in relation to service of transportation of students,

teachers and other staff provided by Bright Public School:
[Chapter 4 : Exemptions from GST]
(a) The amount of Rs. 1,500 charged per student is a supply in terms of section 7 of
the CGST Act, 2017 and GST is payable on the same.
(b) The transportation services provided to students, teachers, other staff is exempt
from GST.
(c) The transportation services provided to students is not a supply as it has been
specifically exempted from GST under section 11 of the CGST Act, 2017.
(d) Transportation services provided to teachers and staff are exempt from GST.
However, since Rs. 1,500 is being charged from students for their transportation, it
is not an exempt supply and GST is payable on the same.
Answer: (b)
ii. Choose the most appropriate option in relation to entrance fee charged by Bright Public
School from the students:
(a) No GST is leviable on entrance fee charged from internal students. However, GST
is payable by school on entrance fee charged from outside students as it is a service
in relation to entrance examination provided to outsiders who are not students of
school and therefore, supply is not eligible for exemption.
(b) GST is payable on whole of the consideration received from students (internal and
external both) as only services provided to educational institution relating to
admission or conduct of examination are exempt and not the services provided by
educational institution for conduction examination.
(c) No GST is payable on consideration of Rs. 12,00,000 received from students in the

PAGE NO.

form of entrance exam fee as such amount is exempt from GST. However, it still
qualifies to be a supply as per the CGST Act, 2017 and needs to be reported in the
return for the month of May as exempt supply.
(d) Since, entrance exam fee is received for admission to the upcoming academic
session, the amount of consideration needs to be amortized over the year and value
of such supply would be reported in the respective month as nil rated supply.
Answer: (c)
iii. Choose the most appropriate option in relation to Bright Public School being an
examination centre for conducting conduct of Class XII examination:
(a) It is not an exempt supply under section 11 of the CGST Act, 2017 as services are
provided to CBSE which is not an educational institution (but a governing body) as
per the provisions of the Act.
(b) It is an exempt supply under section 11 of the CGST Act, 2017 as CBSE is treated
as educational institution for the limited purpose of providing services by way of
conduct of examination to the students.
(c) It is not an exempt supply under section 11 of the CGST Act, 2017 as only those
services provided by an educational institute by way of conduct of examination are
exempt which are provided against consideration in the form of entrance fee.
(d) There is no exemption for services provided by an educational institution for
conduct of examination.
Answer: (b)
iv. Choose the most appropriate option in relation to boarding and lodging facilities provided
by Bright Public School in addition to educational services and consideration charged
thereto:
(a) It is a composite supply where the principal supply is educational services. Since
the principal supply is exempt, the entire consideration of Rs. 1,75,000 is also
exempt from tax.
(b) It is a composite supply where the principal supply is that of boarding and lodging
services and educational services are incidental to boarding and lodging services.

PAGE NO.

Therefore, the tax is payable at the rate applicable to principal supply, i.e., boarding
and lodging services.
(c) It is a mixed supply where educational services and boarding and lodging services
are independent of each other. Therefore, the tax is payable at the highest rate of
tax applicable among these supplies.
(d) It is a mixed supply where educational services and boarding and lodging services
are independent of each other. Since educational services are exempt, the tax is
payable at the rate of tax applicable on boarding and lodging services.
Answer: (a)
v. Choose the most appropriate option in relation to supply of service by Ambaji Transporters
to Bright Public School:
(a) GST is payable on the services provided by Ambaji Transporters as they are
covered under section 9(3) of the CGST Act, 2017 which includes services by a
transporter.
(b) GST is not payable on the services provided by Ambaji Transporters as services
provided by it do not qualify as supply under the CGST Act, 2017.
(c) GST is not payable on the services provided by Ambaji Transporters as they have
been specifically exempted under section 11 of the CGST Act, 2017. However,
section 9(3) of the CGST Act, 2017 overrides all other provisions of the CGST Act,
2017 which are contrary to it, thereby making Ambaji Transporter liable to pay
GST.
(d) GST is not payable on the services provided by Ambaji Transporters as they have
been specifically exempted under section 11 of the C GST Act, 2017. Tax is not
payable on reverse charge basis on the same under section 9(3) of the CGST Act,
2017.
Answer: (d)
Question 25:
M/s Harimukund Hardwares, a partnership firm registered under GST in the State of Uttar Pradesh,
is engaged in the supply of door and window fittings across India. In the month of October, it made
following outward supplies:

PAGE NO.

Taxable Date of Date of

Name of Receiver Date of
value (Rs.) receipt of removal of
(State) invoice
payment goods
M/s Nand Kishore 10th 25th 10th

5,75,000
Traders (Haryana) October October October
M/s Charanjot
12th 10th 10th
Hardwares & Fitters 3,25,000
October November October
(Punjab)
M/s Rana Singh Ji

Hardware Products 2,70,000 17th 12th 20th
(Rajasthan) October October October
M/s Annapurai
Hardwares 3,75,000 18th 29th 19th
(Karnataka) October November October
The applicable tax rate on supply of above goods is 18%. Goods are generally received by parties
in Punjab, Haryana & Rajasthan on 2nd day from the date of removal whereas it takes 5 days to
reach Karnataka.
M/s Harimukund Hardwares gives 2% cash discount to its customers wherever the payment is
received in advance or within 15 days of the date of removal of goods and the respective credit
note is also issued immediately. The buyer also takes the necessary legal action with respect to
such credit note immediately.
To supply such goods, it received services from a local transporter namely, M/s Khatushyam
Transporters (unregistered), who raised consolidated invoice for Rs. 1,00,000 on 22nd October for
which payment was made on 27th December along with payment for the month of November.
Applicable tax rate on transport services is CGST @ 2.5% and SGST @ 2.5%.
i to v .:-
i. What is the time of supply of goods in case of goods supplied to M/s Charanjot Hardwares
& Fitters?
PAGE NO.


(a) 12th October
(b) 10th October
(c) 10th November
(d) 14th October
Answer: (b)
ii. What is the time of supply of goods in case of goods supplied to M/s Rana Singh Ji
Hardware Products?
(a) 17th October
(b) 12th October
(c) 20th October
(d) 22nd October
Answer: (a)
iii. What is the time of supply in case of services supplied by M/s Khatushyam Transporters?
(a) 22nd October
(b) 27th December
(c) 10th October, 19th October and 20th October
(d) 22nd December
Answer: (d)
iv. What is the gross tax liability attributable to outward supplies of M/s Harimukund
Hardwares for the month of October?
[Chapter 6,7 : Time of Supply & Value of Supply]
(a) IGST = Rs. 2,75,060, CGST = Nil, SGST= Nil
(b) IGST = Rs. 2,78,100, CGST = Rs. 2,500, SGST= Rs. 2,500
(c) IGST = Rs. 2,75,058, CGST = Nil, SGST= Nil
(d) IGST = Rs. 2,75,058, CGST = Rs. 2,500, SGST= Rs. 2,500
Answer: (c)
v. The total value of supply in the above scenario on which M/s Harimukund Hardwares is
liable to pay tax is-

PAGE NO.


(a) Rs. 16,28,100
(b) Rs. 16,39,100
(c) Rs. 15,45,000
(d) Rs. 15,39,600
Answer: (a)
Question 26:
ABC Pvt. Ltd., a company registered under GST, manufactures products which are used in
laboratories. The products are manufactured in the company’s factory located in Lucknow, Uttar
Pradesh and sold in various parts of Uttar Pradesh. The company also provides repair and
maintenance services for its products. The details of turnover of the company are as under:
Particulars F.Y. - 1 (Rs.) F.Y.- 2 (Rs.)
Turnover from supply of goods 75,00,000 1,02,00,000
Turnover from supply of services 7,10,000 9,25,000
Interest income from extending loans to others 5,25,000 6,26,000
The company procures service of M/s Ram Enterprises, a Goods Transport Agency, having its
place of business in Lucknow, Uttar Pradesh, for transport of goods from its factory to customers’
location. M/s Ram Enterprises prepares a regular consignment note containing the details of
consignor and consignee and other prescribed details. The services provided by M/s Ram
Enterprises are chargeable to tax @ 5%.
Following details are provided by ABC Pvt. Ltd. for the month of July of FY-3 (current FY):
S.No. Particulars Amount (Rs.)
(i) Turnover of supply of goods 10,20,000
(ii) Turnover of supply of services 92,550
(iii) Interest income from extending deposit to 5,000
others
(iv) Amount charged for services received 50,000
from M/s Ram Enterprises

PAGE NO.

(v) Raw material received from other States 5,26,000

(vi) Input services received 7,80,900
Following additional information is also provided:

(1) The raw material received by ABC Pvt. Ltd. mentioned in point (v) above includes goods
amounting to Rs. 2,26,000 received from M/s Aakash Enterprises on the instructions received from
M/s Abhijaat Enterprises. M/s Aakash Enterprises has its principal place of business in Uttar
Pradesh whereas M/s Abhijaat Enterprises has its principal place of business in Gujarat.
(2) Vidhata Foundation, a Charitable Trust, registered under section 12AA of the Income Tax
Act, 1961 has been set up by the founders of ABC Pvt. Ltd. for conducting charitable activities in
the State of Uttar Pradesh. The Trust organises sessions on yoga and spirituality in the State of
Uttar Pradesh and charges participation fees for the same. The total fees collected from participants
for the month of July of current FY is Rs. 2,50,000. The input services received by the Trust during
the said month amount to Rs. 1,25,260. The Trust is also analysing the proposal of granting rights
to ABC Pvt. Ltd. to advertise on its premises.
Following GST rates are applicable on the inward and outward supplies unless otherwise specified:
Particulars CGS SGS IGS
T T T
Outward supply 9% 9% 18%
Inward supply 6% 6% 12%
i to v.:-
i. Whether the service provided by M/s Ram Enterprises to ABC Pvt. Ltd. is chargeable to
tax. If yes, who will discharge the tax liability?
(a) The service is chargeable to tax and M/s Ram Enterprises will bear the tax liability.
(b) The service is chargeable to tax and ABC Pvt. Ltd. will discharge the tax liability.
(c) The service is exempt under the CGST Act, 2017.
(d) The service is chargeable to tax and M/s Ram Enterprises and ABC Pvt. Ltd. will
discharge the tax liability in the ratio of 1:1.
Answer: (b)
PAGE NO.

ii. Whether ABC Pvt. Ltd. could have opted for composition levy under sub-sections (1) and
(2) of section 10 of the CGST Act, 2017 for current financial year?
a. Yes. However, it could have provided services up to a value of Rs. 11,12,500 under
composition levy during the current financial year.
b. No, it could not have opted for composition levy.
c. Yes. However, it could have provided services up to Rs. 5,00,000 under
d. Yes. However, it could have provided services up to Rs. 11,75,100 under
Answer: (a)
iii. Assuming ABC Pvt. Ltd. has opted for composition scheme under sub-sections (1) and (2)
of section 10 of the CGST Act, 2017, what shall be the total GST liability of ABC Pvt. Ltd.
in the State of Uttar Pradesh for the month of July?
(a) No liability, ITC of 1,56,828 will be carried forward.
(b) Rs. 45,931
(c) Rs. 13,626
(d) Rs. 2,02,759
Answer: (c)
iv. Which of the following statement is incorrect in case of Vidhata Foundation?
i. Services provided to charitable or religious trusts are not outside the ambit of GST. Unless
specifically exempt, they are chargeable under GST.
ii. All the activities of Vidhata Foundation are exempt from GST since it is a charitable trust
registered under section 12AA of the Income-tax Act, 1961.
iii. Fees charged for sessions on yoga and spirituality are exempt since the objective of such
programmes is advancement of yoga and spirituality.
(a) i & ii
(b) i
(c) iii
PAGE NO.

(d) ii
Answer: (d)
v. What shall be the place of supply (POS) for the supply transaction(s) between ABC Pvt.
Ltd., M/s Abhijaat Enterprises and M/s Aakash Enterprises and the nature of tax leviable
thereon?
(a) POS for transaction between M/s Abhijaat Enterprises and M/s Akash Enterprises
is the location of principal place of business of M/s Abhijaat Enterprises, i.e.
Gujarat and IGST is leviable on such supply. POS for transaction between M/s
Abhijaat Enterprises and ABC Pvt. Ltd. is the location of principal place of business
of ABC Pvt. Ltd., i.e. Lucknow, Uttar Pradesh and IGST is leviable on such supply.
(b) POS for transaction between M/s Abhijaat Enterprises and M/s Akash Enterprises
is the location of principal place of business of M/s Akash Enterprises, i.e. Uttar
Pradesh and IGST is leviable on such supply. POS for transaction between M/s
Abhijaat Enterprises and ABC Pvt. Ltd. is the location of principal place of business
of M/s Abhijaat Enterprises, i.e Gujarat and CGST and SGST are leviable on such
supply.
(c) POS for transaction between M/s Abhijaat Enterprises and M/s Akash Enterprises
is the location of principal place of business of ABC Pvt. Ltd., i.e. Uttar Pradesh
since goods are delivered there and CGST and SGST are leviable on such supply.
(d) POS for transaction between M/s Abhijaat Enterprises and M/s Akash Enterprises
is the location of principal place of business of ABC Pvt. Ltd., i.e. Uttar Pradesh
since goods are delivered there and IGST is leviable on such supply.
Answer: (a)
Question 27:
GQF Private Limited, registered under GST in the State of Maharashtra, is engaged in
manufacturing of goods which are used for further production in automobile industry. The
company sends some semi-finished inputs to job workers, M/s Yamuna Enterprises and M/s
Jamuna Enterprises, for necessary processing. The processed goods are sent back by the job
workers to the company where they are used for manufacturing the finished products.

PAGE NO.

M/s Yamuna Enterprises has its place of business in Maharashtra. M/s Jamuna Enterprises has its
place of business in the State of Madhya Pradesh viz. 35 km away from the place of business of
GQF Private Limited.
The company imports some raw material and stores the same for few months in the warehouse
operated by M/s Gajanan Enterprises in the State of Tamil Nadu. Later on, it is transported to the
company’s factory in Maharashtra. M/s Gajanan Enterprises is not registered under GST. The
aggregate turnover of M/s Gajanan Enterprises for the current financial year is Rs. 18,25,000.
The company maintains all the records, documents and books of accounts at its place of business
in Maharashtra.
Following are the relevant details of GQF Private Limited for the month of August.
Total turnover 36,00,000
Total inputs received during the month 21,12,000
Total input services received during the month 8,99,000
Goods sent to M/s Yamuna Enterprises during the 75,000
month for job work purpose by motor vehicle
Goods sent to M/s Jamuna Enterprises during the month 46,800
for job work purpose by motor vehicle
Note: All afore-mentioned amounts are exclusive of GST, wherever applicable.

GQF Private Limited procures the service of M/s Speedofast Enterprises, a goods transport agency,
having its place of business in Maharashtra. GQF Private Limited transports its finished goods to
different customers located in the State through M/s Speedofast Enterprises. M/s Speedofast
Enterprises prepares a consignment note containing the details of consignor and consignee, value
of consignment, vehicle number, details of party paying the taxes etc.
Based on the facts of the case scenario given above, choose the most appropriate answer to QNos.
I to v
i. M/s Gajanan Enterprises, owner of warehouse in Tamil Nadu, wishes to know as whether
it is required to obtain registration under GST to conduct its business. Which of the
following statements is true in this regard?
PAGE NO.

(a) Yes, being a warehouse operator, M/s Gajanan Enterprises has to compulsorily take
GST registration to conduct the business irrespective of the quantum of aggregate
turnover.
(b) No, M/s Gajanan Enterprises is not required to take registration under GST as its
aggregate turnover is below the threshold limit for registration. However, it is
required to obtain a unique enrolment number under GST.
(c) M/s Gajanan Enterprises is neither required to obtain registration nor unique
enrolment number under GST to conduct business.
(d) Yes, M/s Gajanan Enterprises is required to take registration compulsorily under
GST. Further, it is also required to obtain a unique enrolment number under GST
as its aggregate turnover is more than Rs. 10 lakh.
Answer: (b)
ii. GQF Private Limited is required to keep and maintain its books of accounts or other
records:
[Chapter 11 : Accounts & Records; E-way Bill]
(a) for 5 years from the due date of furnishing of Annual Return for the year pertaining
to such accounts and records.
(b) for 72 months from the due date of furnishing of Annual Return for the year
pertaining to such accounts and records.
(c) for 72 months from the end of respective financial year.
(d) for 8 years from the end of respective financial year.
Answer: (b)
iii. Whether GQF Private Limited is required to generate e-way bill in case of transfer of goods
to M/s Jamuna Enterprises?
(a) No, as the value of the consignment is within the prescribed limit of Rs. 50,000.
(b) No, as the movement of goods is within the prescribed distance limit of 50 Kms.
(c) Yes, e -way bill is required to be generated irrespective of the value of the
consignment.
(d) Yes, a registered person has to generate e-way bill for every movement of goods.
PAGE NO.

Answer: (c)
iv. M/s Speedofast Enterprises wants to transport multiple consignments in a single
conveyance. These consignments are of different consignors and consignees and individual
e-way bills (EWBs) with different validity periods have been generated for these
consignments. Can M/s Speedofast Enterprises generate one consolidated e-way bill for
such multiple consignments?
(a) No, M/s Speedofast Enterprises cannot generate a consolidated e-way bill
containing the details of different EWBs since all the EWBs have different validity
periods.
(b) Yes, M/s Speedofast Enterprises can generate a consolidated e -way bill containing
the details of different EWBs even if all the EWBs have different validity periods
and even if it is transporting consignments of different consignors and consignees
in a single conveyance.
(c) No, M/s Speedofast Enterprises cannot generate a consolidated e-way bill since it
is transporting consignments of different consignors and consignees in a single
conveyance.
a. There are no provisions to generate a consolidated e-way bill under the GST law.
Answer: (b)
v. M/s Speedo fast Enterprises wants to update Part B of the e-way Bill. Can it update the
same? If yes, then within what time span is it required to do so?
(a) Yes, within 15 days from the generation of unique e -way bill number
(b) Yes, within 24 hours from the generation of the unique e -way bill number
(c) Yes, within 7 days from the generation of the unique e -way bill number
(d) No, once unique e-way bill is generated, Part B of the same cannot be updated.
Answer: (a)
Question 28:
GSP Pvt. Ltd. has started its business in the month of August. It is engaged in supply of machines
required for various industries along with related services. The machines are assembled and

PAGE NO.

installed at the customer’s premises. It has its head office in M umbai, Maharashtra and branches
in the States of Delhi, Karnataka, Madhya Pradesh, Uttarakhand and Tamil Nadu.
The turnover of GSP Pvt. Ltd. in the month of August is as under:
State Intra-State taxable Value of inward
supplies (value supplies on which
exclusive of taxes) reverse charge
mechanism is
applicable
Maharashtra Rs. 2,44,000 Rs. 1,06,000
Delhi Rs. 3,65,560 Rs. 1,50,690
Karnataka Rs. 3,60,480 Rs. 1,01,250
Madhya Pradesh Rs. 4,83,440 Rs. 1,40,220
Uttarakhand Rs. 3,10,600 Rs. 95,500
Tamil Nadu Rs. 2,09,560 Rs. 80,560
The following details for the month of December are provided by GSP Pvt. Ltd.:-
State Taxable Taxable value Taxable Taxable
value of of installation value of value of input
supply of service inputs services
machinery
Maharashtra Rs.25,00,00 Rs.3,00,000 Rs.9,80,00 Rs.5,60,000
0 0
Delhi Rs.20,00,00 Rs.2,40,000 Rs.7,84,00 Rs.4,48,000
0 0
Karnataka Rs.19,00,00 Rs.2,28,000 Rs.7,44,80 Rs.4,25,600
0 0
Madhya Rs.22,50,00 Rs.2,70,000 Rs.8,82,00 Rs.5,04,000
Pradesh 0 0
Uttarakhand Rs.12,20,00 Rs.1,46,400 Rs.4,78,24 Rs.2,73,280

PAGE NO.

0 0
Tamil Nadu Rs.24,20,00 Rs.2,90,400 Rs.9,48,64 Rs.5,42,080
0 0
Notes:
1. Applicable rates of GST are as follows:
Particulars CGST SGST IGST
Outward supply of machinery 9% 9% 18%
Outward supply of installation service 9% 9% 18%
Inward supply of goods 6% 6% 12%
Inward supply of services 9% 9% 18%
2. All the above transactions are exclusive of GST, wherever applicable.

3. There is no other inward or outward supply transaction for GSP Pvt. Ltd. in the relevant months
apart from the aforementioned transactions.
4. Subject to the information given above, assume that all the other conditions necessary for
Based on the facts of the case scenario given above, choose the most appropriate answer to Q Nos.
I to v
i. Whether GSP Pvt. Ltd. is required to take registration under GST in the month of August?
What is the threshold limit of turnover for GSP Pvt. Ltd. to obtain registration?
(a) Yes. Threshold limit of turnover for GSP Pvt. Ltd. to obtain registration is Rs.
20,00,000.
(b) Yes. Threshold limit of turnover to obtain registration for GSP Pvt. Ltd. is not
applicable as it is liable to obtain compulsory registration irrespective the quantum
of its aggregate turnover.
(c) No. Threshold limit of turnover for GSP Pvt. Ltd. to obtain registration in
Uttarakhand is Rs.10,00,000 and for other States /Union Territories (where it has
operations) is Rs. 20,00,000.
(d) Yes. Threshold limit of turnover for GSP Pvt. Ltd. to obtain registration is Rs.
PAGE NO.

40,00,000.
Answer: (b)
ii. Assuming that GSP Pvt. Ltd. also has a branch in the State of Tripura with turnover of
intra-State taxable supplies of Rs. 11,20,250 in the month of August, state whether the
company is required to take registration in the said month? What will be the threshold limit
of turnover for GSP Pvt. Ltd. to obtain registration now?
(a) Yes. Threshold limit of turnover to obtain registration for GSP Pvt. Ltd. is not
applicable as it is liable to obtain compulsory registration irrespective of its
turnover.
(b) No. Threshold limit of turnover for GSP Pvt. Ltd. to obtain registration is Rs.
10,00,000.
(c) Yes. Threshold limit of turnover for GSP Pvt. Ltd. to obtain registration is Rs.
20,00,000.
(d) No. Threshold limit of turnover for GSP Pvt. Ltd. to obtain registration in Tripura
is Rs. 10,00,000 and for other States/Union Territories (where it has operations) is
Rs. 20,00,000.
Answer: (a)
iii. What shall be the net GST payable for the month of December in the State of Maharashtra
provided the machinery has been installed at customer’s site at Kanpur (U.P.) and the parts
of the machinery are manufactured at factory located in Mumbai and dispatched from
Mumbai, Maharashtra? Assume that all inputs and input services are procured from within
the State. The invoice is raised by Mumbai Branch of GSP Pvt. Ltd.
[Chapter 5,8 : Place of Supply & Input Tax Credit]
(a) IGST Rs. 2,85,600
(b) CGST Rs. 1,42,800 & SGST Rs. 1,42,800
(c) IGST Rs. 5,04,000
(d) IGST Rs. 1,42,800
Answer: (a)
iv. The supply of machinery and supply of service of installation of machinery is a
___________ supply and the applicable tax rate shall be the rate of tax applicable on

PAGE NO.

_________.
(a) mixed, principal supply
(b) mixed, supply having highest volume
(c) composite, principal supply
(d) composite, supply having highest rate
Answer: (c)
v. GSP Pvt. Ltd. has received an order for supply of machinery from Auto Wheels Pvt. Ltd.
GSP Pvt. Ltd. has delivered the parts manufactured at factory located in Mumbai and
installed the same at the site of Auto Wheels Pvt. Ltd. which is located in Madhya Pradesh.
Mumbai Branch of GSP Pvt. Ltd. has raised an invoice on the registered office of Auto
Wheels Pvt. Ltd. which is located in Mumbai, Maharashtra. What shall be the place of
supply (POS) of the transaction and the type of GST to be charged?
(a) POS – Maharashtra, IGST
(b) POS - Madhya Pradesh, IGST
(c) POS - Maharashtra, CGST & SGST
(d) POS – Madhya Pradesh, CGST & SGST
Answer: (b)
Question 29 :
XYZ Logistics Limited (XLL) is into warehousing and logistics business. It has two Container
Freight Stations (CFS): one at Inland Container Depot (ICD) Dadri, Uttar Pradesh and other at
ICD Tughlakabad, Delhi. XLL is also engaged in the business of freight forwarding and
multimodal transportation. Intermittently, XLL also deals in trading of goods, primarily in export
to countries outside India.
XLL started its operations on 30th June by setting up head/ corporate office in Gurgaon, Haryana
and two CFS at U.P. and Delhi. Services as well as invoicing to customers was done from Delhi
and U.P. unit only. Top management was placed at the head office for the management of the
company.
The aggregate turnover of the XLL’s Delhi unit crossed Rs. 20 lakh on 31st October. It applied for
GST registration for Delhi on 25th November. Registration was granted on 7th December. GST in

PAGE NO.

respect of stock of goods at Delhi as on 30th October was Rs. 50 lakh, on 25th November was Rs.
40 lakh and on 7th December was Rs. 20 lakh.
The primary business of XLL is container handling service of import/export containers. In July
next year, a shipper placed a work order on XLL for handling of an export container from ICD
Tughlakabad to Dubai UAE, through Nhava Sheva seaport in Mumbai. XLL was responsible for
stuffing goods in containers at ICD, assisting in obtaining customs clearance, and transportation
of goods from ICD to seaport. XLL requested the customer to issue e-way bill for the movement
of customs sealed containers from ICD to seaport as the value of goods in container exceeded Rs.
50,000. However, the customer denied issuing e-way bill stating that the responsibility to issue the
same is on the person who arranges the transport of goods. Consequently, the management of XLL
issued e-way bill with the assistance of a consultant.
There is a green cess that is applicable on the goods handled through CFS for exports outside India.
XLL as a policy deposits green cess with the Government in the name of the customer and recovers
such cess at actuals from the customer.
Few customers of XLL are based out of Nepal & Bhutan. It provides container handling services
for their containers/ cargo which are in transit to Nepal or Bhutan. It receives consideration from
Nepal/ Bhutan customers in INR (Rs.).
All the above amounts are exclusive of GST, wherever applicable. Subject to the information given
above, assume that all the other conditions necessary for availing ITC have been fulfilled.
I to v :-
i. Which of the following statements is correct regarding eligibility of ITC on opening stock
at the time of new registration?
[Chpater 8 : Input Tax Credit]
(a) XLL can avail credit of Rs. 50 lakh.
(b) XLL can avail credit of Rs. 40 lakh.
(c) XLL can avail credit of Rs. 20 lakh.
(d) XLL cannot avail credit on opening stock.
Answer: (a)
ii. Which of the following statements is correct regarding GST registration by XLL?

PAGE NO.

(a) XLL was liable for registration of only Delhi unit.

(b) XLL was liable for registration of Delhi and UP units.
(c) XLL was liable for registration of Delhi, UP and Haryana units.
(d) XLL was liable for normal registration at Delhi and UP unit, and ISD registration
at Haryana unit.
Answer: (c)
iii. Which of the following statements is correct regarding generation of e-way bill for
movement from ICD Tughlakabad to Nhava Sheva seaport in Mumbai?
(a) E-way bill was not required to be generated since goods were being transported
from ICD to seaport.
(b) E-way bill was mandatorily required to be generated irrespective of the value of the
goods being transported as such goods were being transported from ICD to seaport.
(c) E-way bill was required to be generated since the value of goods being transported
exceeded Rs. 50,000.
(d) E-way bill was rightfully issued by XYZ Logistics Limited being the transporter of
goods.
Answer: (a)
iv. Which of the following statements is correct regarding value of container handling services
provided by the company?
(a) Value of the taxable container handling services should exclude transportation cost
and green cess.
(b) Value of the taxable container handling services should exclude green cess but
include transportation cost.
(c) Value of the taxable container handling servic es should exclude transportation cost
but include green cess.
(d) Value of the taxable container handling services should include transportation cost
and green cess.
Answer: (b)
v. Which of the following statements is correct regarding invoicing to Nepal/ Bhutan

PAGE NO.

customers?
[Chapter 4,5 : Exemptions from GST & Place of Supply]
(a) GST is not chargeable on container handling services provided to Nepal/ Bhutan
customers as the place of supply of such services is outside India.
(b) GST is not chargeable on container handling services provided to Nepal/ Bhutan
customers as the same qualifies as export of service.
(c) GST is not payable on container handling services provided to Nepal/ Bhutan
customers as the supply of services associated with transit cargo to Nepal and
Bhutan are exempt services.
(d) GST is chargeable on container handling services provided to Nepal/ Bhutan
customers.
Answer: (c)
Question 30:
Mr. Mahesh, a registered person under GST, is engaged in textile business in the State of Gujarat.
He wants to supply textiles with traditional Indian designs. So, he availed designing services from
Mr. Manoj (Grandfather of Mr. Mahesh) in South Africa wit hout any consideration. He also
availed architect services from Mr. Murali (Brother of Mr. Mahesh) in London for Rs. 2 lakh for
his personal purposes. Mr. Manoj is a reputed freelance textile designer in South Africa and Mr.
Murali is an architect of high repute in London.
For producing the goods as per the traditional Indian designs, he needs to purchase & install an
‘Automatic Zig-Zag Electric Sewing Machine’. On 3rd May, Mr. Mahesh raised a purchase order
for Sewing Machine on KUSHA Pvt Ltd. (registered supplier in Andhra Pradesh) for an amount
of Rs. 2 crores. The rates of GST on various dates of the transaction are as follows:
Date Particulars Rate of IGST
06th June Sewing machine is installed & 18%

accepted by Mr. Mahesh
15th June Date of invoice 18%
Payment details are entered in the

03rd August 28%
books of KUSHA Pvt Ltd

PAGE NO.

Payment is credited to the bank account

09th August 28%
of KUSHA Pvt Ltd
(Note: The rate has been changed from 18% to 28% with effect from
01st August)
From the next financial year onwards, Mr. Mahesh intends to provide ancillary services relating
to textiles like dyeing and designing & also intends to avail the composition scheme. The details
of turnover & GST payable during the current financial year & the budgeted figures for the next
financial year are as follows:
Particulars Current Next financial
financial year Year (Rs.)
(Rs.)
Taxable supplies (excluding GST) 55,00,000 77,00,000*
Exempt supplies (exempt by way of
a notification) 45,00,000 37,00,000
IGST (paid on outward supplies) 5,000 7,000
CGST 15,000 17,000
SGST 15,000 17,000
*including supply of services of Rs. 4,00,000.

On the occasion of ‘Birth anniversary of Mahatma Gandhi’, Mr. Mahesh received a contract for
supply of Indian traditional clothes for an amount of Rs. 10,00,000 (exclusive of taxes) from XYZ
Ltd., a State - owned enterprise. It has its registered office at Delhi and it is registered under GST
only in the Union Territory of Delhi. It intends to celebrate the birth anniversary of Mahatma
Gandhi by distributing such clothes to the people in the city of Porbandar, Gujarat – birthplace of
Mahatma Gandhi. As per the terms of the contract, the delivery of clothes should be made at
Porbandar. Mr. Mahesh supplied the goods as per the contract & received the payment.
i to v:-

PAGE NO.

i. In respect of the services imported by Mr. Mahesh, which of the following services are
considered as supply under section 7 of the CGST Act, 2017?
(a) Designing services received from Mr. Manoj in South Africa without any
consideration
(b) Architect services received from Mr. Murali in London for Rs. 2 lakh for personal
purposes
(c) Both the designing services and architect services received from Mr. Manoj and
Mr. Murali respectively
(d) Neither the designing services nor the architect services received from Mr. Manoj
and Mr. Murali respectively
Answer: (b)
ii. What is the ‘date of payment’ for sewing machine supplied by KUSHA Pvt Ltd. to Mr.
Mahesh?
(a) Date on which payment is entered in the books of accounts of supplier or date on
which the payment is credited in his bank account, whichever is earlier, i.e., 3rd
August
(b) Date on which payment is entered in the books of accounts of supplier or date on
which the payment is credited in his bank account, whichever is later, i.e. 9th
August
(c) Date on which the payment is credited in his bank account, i.e. 9th August
(d) Date on which payment is entered in the books of accounts of supplier, i.e. 3rd
August
Answer: (a)
iii. Whether Mr. Mahesh is eligible to opt for the composition scheme under sub-sections (1)
and (2) of section 10 of the CGST Act, 2017 in the next financial year? If he is eligible,
then what is the permissible limit for him for supply of services in the next financial year?
(a) Eligible; the permissible limit for supply of services is Rs. 11,40,000
(b) Eligible; the permissible limit for supply of services is Rs. 10,00,000

PAGE NO.

(c) Eligible; the permissible limit for supply of services is Rs. 5,50,000
(d) Mr. Mahesh is not eligible to opt for composition scheme.
Answer: (d)
iv. With respect to contract for an amount of Rs. 10,00,000 from XYZ Ltd., specify the
applicable rate of tax deducted at source (TDS) under section 51 of the CGST Act, 2017.
[Chapter 12 : Payment of Tax]
(a) 0.5 %
(b) 1%
(c) 2%
(d) Nil
Answer: (d)
Question 31:
‘M/s Kalpavriksha Iron Traders’ (KIT) is located in the city of Visakhapatnam & is registered
under GST in the State of Andhra Pradesh. On 1st May, ‘KIT’ received an order for supply of
different variety of iron bars amounting to Rs. 60,00,000 (exclusive of GST) from ‘TMT Pvt. Ltd.’
located in the city of Hyderabad and registered under GST in the State of Telangana.
The details of advance payment, issue of invoice and the terms & conditions of the contract relating
to delivery of iron bars are as follows:-
1. The buyer has to pay Rs. 7,00,000 as advance to the supplier.
2. The balance amount needs to be paid within 25 days from the date of issue of invoice.
3. The supplier will bear the goods transportation and other related charges.
4. If payment is not received within the stipulated time limit, then buyer needs to pay penal charges
(taxes, if any to be paid separately) as follows:
Delay (in
1 to 10 11 to 20 21 to 30 More than 30
days)
Rs. Rs. Rs. 2,30,000+
Penal Rs. 5,000 50,000+ 1,30,000+
(Rs. 12,000 Per
charges Per day
(Rs. 8,000 (Rs. 10,000 day)
Per day) Per day)

PAGE NO.

5. If the entire (i.e. 100%) payment is received within the period as mentioned in the below table,
the recipient will be entitled for discount as follows:
No. of After 15th
1 to 5 6 to 10 11 to 15
days* day
Total
Rs. 15,000 Rs. 10,000 Rs. 8,000 No Discount
discount
* within which the payment is received after the date of invoice

Discount will be given only when the full payment is made.
The details of invoice & payment are as follows:
.
.
Date Particulars
TMT Pvt. Ltd. paid the stipulated amount of
2nd May advance to KIT
5th May Invoice issued to TMT Pvt. Ltd.
10th May 30% of the invoice amount is paid
14th May Another 20% of the invoice amount is paid

18th May Balance amount is paid
On 3rd May, TMT Pvt. Ltd. requested KIT to deliver the iron bars to Sakthi Iron & Steels (SIS)
located in the city of Bhubaneswar (Odisha). On 5th May, KIT entered into a contract with
‘Express transports’ [a Goods Transport Agency (GTA) located & register ed under GST in the
State of Andhra Pradesh charging GST at the rate of 5% on its services] for delivery of iron bars
at Bhubaneswar. The freight charges and loading charges for the delivery services provided by
GTA are Rs. 1,50,000 (exclusive of GST) and Rs. 5000 (exclusive of GST) respectively.
The iron bars are removed from the warehouse of KIT on 6th May and an e-way bill is generated
at 00:15 AM on 6th May. The distance from the warehouse of KIT to location of SIS is 4 55 km.
KIT paid the freight charges to the transporter immediately after the delivery of the goods.

PAGE NO.

Note:
1. If buyer receives any discount from the supplier, he will reverse the proportionate ITC availed
at the time of purchase.
2. The iron bars are not Over Dimensional Cargo.
I to v:-
i. What shall be the place of supply for the following two independent supplies?
A) Supply between KIT & TMT Pvt Ltd.;
B) Supply between TMT Pvt Ltd. & SIS
(a) A) Bhubaneswar; B) Hyderabad
(b) A) Bhubaneswar; B) Bhubaneswar
(c) A) Hyderabad; B) Bhubaneswar
(d) A) Hyderabad; B) Visakhapatnam
Answer: (c)
ii. What shall be the time of supply for the transaction between KIT & TMT Pvt Ltd.
(a) 5th May

(b) 6th May
(c) 2nd May
(d) 2nd May for supply of Rs.7,00,000 & 5th May for the balance value of supply.
Answer: (a)
iii. What shall be the value of taxable supply made by KIT to TMT Pvt Ltd.?
(a) Rs. 61,55,000
(b) Rs. 61,47,000
(c) Rs. 59,92,000
(d) Rs. 61,22,000
Answer: (b)
iv. What will be the validity of the e-way bill generated by KIT on 6th May?

PAGE NO.

(a) 12:15 midnight of 11th -12th May

(b) 12:00 midnight of 10th -11th May
(c) 12:15 midnight of 10th -11th May
(d) 12:00 midnight of 11th -12th May
Answer: (d)
v. In the above case scenario, if the entire (100%) payment is made on the following
independent dates namely, A) 03rd June, B) 28th May and C) 20th June, then the value of
taxable supply in each independent case will be:
(a) A) 61,75,000; B) 61,55,000; C) 62,95,000.
(b) A) 60,30,000; B) 60,05,000; C) 61,55,000.
(c) A) 61,80,000; B) 61,47,000; C) 63,05,000.
(d) A) 60,30,000; B) 59,97,000; C) 61,55,000.
Answer: (a)
vi. Who will be liable to pay GST on freight and loading charges charged by ‘Express
Transports’?
(a) TMT Pvt Ltd
(b) SIS
(c) Express Transports
(d) KIT
Answer: (d)
Question 32:
‘Suraksha Travels Pvt. Ltd’ (STPL) is established on 3rd April in the city of Bangalore (Karnataka)
and the primary objective of the company is to provide air-conditioned contract-based passenger
transportation services at affordable fares. The company obtains the voluntary registration under
GST from 1st May. On 1st July, the company purchased motor vehicles of various seating
capacities as follows.

PAGE NO.

Seating capacity Purchase price Rate of GST

No. of
(including driver) (per vehicle-
vehicles
exclusive of
taxes)
7 persons 4 10,00,000 CGST-9%; SGST - 9%
13 persons 1 15,00,000 IGST-18%
From the month of July, STPL associated with RUBA Ltd. for enhancing the business operations.
RUBA Ltd. owns/operates an electronic platform for supply of passenger transportation services
in Bangalore. The company developed an application called ‘RUBA’ th rough which the customers
can access the nearest available motor vehicles (cabs) and avail the services. RUBA Ltd. collects
the consideration for the services from the customers and remits the same to the service provider
(STPL) after retaining the commission charged by it for using its electronic platform.
The details of few bookings of STPL in the month of July are as follows:
(These bookings are obtained by STPL on its own account and not through RUBA Ltd.)
Date of Residence of the Date of
Order Starting Ending city Status of
travel customer payment/
No. city customer
booking
CA- 5th July Bangalore Chennai Bangalore 3rd July Registered
234
CA- 11 th July Bangalore Chennai Chennai 9th July Unregistered
435
PH- 16th July Chennai Bangalore Hyderabad 14th July Registered
534
GK- 19th July Hyderabad Bangalore Delhi 17th July Unregistered
987
UV- 22nd Bangalore Hyderabad Mumbai 20th July Registered
777 July

PAGE NO.

XE- 25th July Chennai Bangalore Kolkata 23rd July Unregistered

001
The invoice is issued electronically on the date of travel immediately after the completion of the
journey.
The details of the passenger transportation services supplied by STPL through RUBA Ltd. & GST
payable on the supply is as follows:-
Particulars July (Rs.) August September
(Rs.) (Rs.)
Value of services 1,30,00,000 1,25,00,000 1,40,00,000
CGST 9,00,000 8,00,000 8,50,000
SGST 9,00,000 8,00,000 8,50,000
IGST 4,00,000 3,50,000 4,50,000
Note:
1. All amounts are exclusive of CGST/SGST or IGST, as the case may be.
2. Booking will be confirmed only after paying total fare for the journey.
3. There is no other inward or outward supply transaction for STPL in the relevant period apart
availing ITC have been fulfilled.
Based on the case scenario given above, choose the most appropriate answer to Qnos. I to v.:-
i. Amount of blocked credit in respect of motor vehicles purchased by STPL on 1st July
is___________.
(a) CGST=Rs. 9,36,000; SGST=Rs. 9,36,000 & IGST = Rs. 2,70,000
(b) CGST=Rs. 3,24,000; SGST=Rs. 3,24,000 & IGST=Rs. 2,70,000
(c) CGST = Nil; SGST = Nil & IGST = Rs. 2,70,000
(d) CGST = Nil; SGST = Nil & IGST = Nil
Answer: (d)
ii. Amount of GST payable through electronic cash ledger by STPL on the services supplied
PAGE NO.

by it through RUBA Ltd. during the month of July is_____________.

(a) CGST=Rs. 9,00,000; SGST=Rs. 9,00,000 & IGST=Rs. 4,00,000
(b) CGST = Nil; SGST = Nil & IGST = Rs. 58,000
(c) CGST = Nil; SGST = Nil & IGST = Rs. 1,30,000
(d) CGST = Nil; SGST = Nil & IGST = Nil
Answer: (d)
iii. Amount of tax to be collected at source by RUBA Ltd. on the taxable supplies made
through it during the months of A) July, B) August and C) September, is____
(a) A) Rs. 65,000; B) Rs. 62,500 and C) Rs. 70,000
(b) A) Rs. 1,30,000; B) Rs. 1,25,000 and C) Rs. 1,40,000
(c) A) Rs. 1,30,000; B) Nil and C) Rs. 70,000
(d) A) Nil; B) Nil and C) Nil
Answer: (d)
iv. Place of supply for order numbers 1) CA-435, 2) PH-534 & 3) GK-987 is____
[Chapter 5 : Place of Supply].
(a) 1) Bangalore, 2) Hyderabad & 3) Hyderabad
(b) 1) Chennai, 2) Hyderabad & 3) Hyderabad
(c) 1) Chennai, 2) Chennai & 3) Delhi
(d) 1) Bangalore, 2) Chennai & 3) Hyderabad
Answer: (a)
v. Time of supply for order numbers 1) CA-234, 2) UV-777 & 3) XE-001 is___.
(a) 1) 5th July, 2) 20th July & 3) 23rd July
(b) 1) 5th July, 2) 22nd July & 3) 23rd July
(c) 1) 3rd July, 2) 20th July & 3) 23rd July
(d) 1) 5th July, 2) 20th July & 3) 23rd July
Answer: (c)
Question 33 :

PAGE NO.

Mr. A is a practicing Chartered Accountant who is supplying the service in the field of auditing
and assurance. His earnings during the current financial year are as follows-
1. Income from the auditing and assurance service provided during the year- Rs. 1,86,00,000
2. Income for acting as an examiner from the ICAI and ICSI (not on their rolls) in the month of
June - Rs. 2,50,000
3. Rental income from a commercial property, during the year- Rs. 13,90,000
Further, in the month of April, Mr. B purchased 10 computers at a price of Rs. 25,000 each, for
his office as new staff has been recruited by his HR team and had availed and utilized ITC on the
same.
On 31st October, out of these 10 computers, Mr. A shifted 2 computers at his residence for his son
for learning purpose. Open market value of each of these computers, on 31st October, is Rs.
10,000.
Mr. A belatedly filed GSTR -3B for the month of December, by 5 days. Value of taxable supply
for the month of December is Rs. 10,00,000 (included in his details of earnings mentioned above).
Applicable rate of tax on said supply is 18%.
Note:
1. All the above amounts are exclusive of taxes, wherever applicable.
2. The opening balance of input tax credit of Mr. A for the relevant tax period is nil. Subject to the
fulfilled.
3. There is no other inward or outward supply transaction for Mr. A in the relevant period apart
I to v. as follows:-
i. Assuming that the current financial year is the financial year 2019 -20, Mr. A is required to
maintain and retain the books of accounts for said financial year under the GST law up to
(a) 31st December 2025
(b) 31st December 2026
(c) 31st December 2027

PAGE NO.

(d) 31st December 2028

Answer: (b)
ii. Aggregate turnover for the purpose GST audit is_________.
[Chapter 17 : Assessment & Audit]
(a) Rs. 2,02,50,000
(b) Rs. 2,02,90,000
(c) Rs. 2,02,65,000
(d) Rs. 2,02,60,000
Answer: (d)
iii. Total taxable turnover of Mr. A for the current financial year is___.
(a) Rs. 2,00,10,000
(b) Rs. 2,00,40,000
(c) Rs. 2,02,60,000
(d) Rs. 2,02,50,000
Answer: (a)
iv. Which of the following is/are not a supply under GST law?
(a) Service provided as an examiner to ICAI and ICSI
(b) Rental income as it is not related to business
(c) Shifting of computers at home for personal purpose as there is no consideration
Answer: (b)
v. Which of the following statement(s) is/are correct with respect to interest liability of Mr.
A, for the month of December?
(a) Interest liability of Mr. A is Rs. 444 and he can pay the same either from input tax
credit available in electronic credit ledger or in cash.
(b) Interest liability of Mr. A is Rs. 444 and he cannot utilize the input tax credit for
(c) Interest liability of Mr. A is Rs. 2,466 and he can pay the same from input tax credit

PAGE NO.

available in electronic credit ledger or in cash.

(d) Interest liability of Mr. A is Rs. 2,466 and he cannot utilize the input tax credit for
Answer: (d)
Question 34:
Kunj Manufacturers, a registered supplier under GST in Surat, Gujarat, has opted to pay tax under
composition scheme under sub-sections (1) and (2) of section 10 of the CGST Act, 2017. It is
engaged in manufacturing textile products.
The following information is available in relation to Kunj Manufacturers for the current financial
year:
1. Total turnover during the quarter April -June is Rs. 1,50,00,000.
2. The option to pay tax under composition scheme lapses from 1st July.
3. Tax paid on inputs lying in stock as on 30th June (Invoice dated 4th May) - CGST Rs. 10,000
and SGST Rs. 10,000.
4. Tax paid on inputs contained in semi-finished goods held in stock as on 30th June- CGST Rs.
5,000 and SGST Rs. 5,000 (Invoice was dated 31st December of preceding financial year).
5. A machinery was purchased on 15th March of preceding financial year for Rs. 10,00,000
(taxable value). Applicable GST rate was 12%.
6. On 10th August, Kunj Manufacturers sold goods worth Rs. 2,40,000 to Surat Municipal
Corporation (SMC). The contract with SMC was to supply only goods and not any services.
7. On 15th August, Kunj Manufacturers sold goods worth Rs. 10,00,000 to Finance Department
of Gujarat Government.
8. Apart from the information provided above, sales and purchases worth Rs. 15,00,000 and Rs.
12,00,000 respectively were also reported during the period of July – February.
9. During the month of March of the current financial year, Kunj Manufacturers manufactured
2,500 meters of fabric (Value of the fabric is Rs. 200 per meter). ITC pertaining to such output
was CGST - Rs. 27,500 and SGST - Rs. 27,500. Mr. Kunj exported 1,500 meters of fabric under
bond and sold the balance 1,000 meters of fabric in Gujarat, India.
Notes:
1. There is no other outward or inward supply transaction apart from the aforesaid transactions.

PAGE NO.

2. It is also assumed that due date for any return required to be filed by the taxpayer has not been
extended by the Government.
3. Rate of GST applicable on goods manufactured by Kunj Manufacturers under regular scheme
is 12%. GST rate applicable on inward supplies is 12% unless otherwise specified.
4. All the purchases and sales are made within the State except the export sales.
5. All the amounts given above are exclusive of taxes, wherever applicable.
I to v as follows:-
i. The net GST payable in cash by Kunj Manufacturers during the period from April to
February is______________.
(a) Rs. 1,76,800
(b) Rs. 3,46,800
(c) Rs. 18,26,800
(d) Rs. 18,46,800
Answer: (a)
ii. Input Tax Credit (ITC) available to Kunj Manufacturers during the period from April to
February is_____________.
(a) Rs. 2,72,000
(b) Rs. 2,82,000
(c) Rs. 2,88,000
(d) Rs. 3,02,000
Answer: (b)
iii. The amount of GST refund available to Kunj Manufacturers for the month of March in the
current financial year is _________.
[Chapter 15 : Refunds]
(a) Rs. 24,000

PAGE NO.

(b) Rs. 33,000

(c) Rs. 31,000
(d) Rs. 22,000
Answer: (c)
iv. Which of the following statements is correct?
[CH 13 : Returns]
(a) Kunj Manufacturers is required to file Form GSTR-9, Form GSTR-9A and Form
GSTR-9C.
(b) Kunj Manufacturers is required to file only Form GSTR-9.
(c) Kunj Manufacturers is required to file Form GSTR-9 and Form GSTR-9C.
(d) Kunj Manufacturers is required to file both Form GSTR - 9 and Form GSTR - 9A.
Answer: (d)
v. Assuming that goods have been sold by Kunj Manufacturers to Finance Department of
Gujarat Government for a value of Rs. 1,00,000 instead of Rs. 10,00,000, net GST payable
by Kunj Manufacturers in cash during the period from July to February will be _.
(a) Rs. 15,88,800
(b) Rs. 83,800
(c) Rs. 82,800
(d) nil
Answer: (d)
Question 35:
Ms. Nitya, engaged in the trading of pipes, is registered under GST in the State of Gujarat. Total
taxable turnover of Ms. Nitya from April to February in the current financial year is Rs. 40,00,000.
Following is the information for the month of March of the said financial year:
1. Taxable value of outward supply Rs. 5,00,000; Rs. 2,500 additional charges collected from the
customers toward taxes levied by the Municipal Authority.
2. Ms. Nitya went to Mumbai, Maharashtra for a business meeting and stayed in a hotel for two
days. Hotel charged Rs. 10,000 (taxable value) for the stay.
3. Taxable value of other inward supplies is Rs. 2,00,000.

PAGE NO.

4. She also bought a life insurance policy for herself amounting to Rs. 11,100 (taxable value).
(CGST Rs. 999, SGST Rs. 999).
5. She bought chairs for office purpose amounting to Rs. 10,000 (taxable value).
Followings additional information is also provided for the current financial year:
On 5th April, Ms. Nitya purchased a motor car, with a seating capacity of 5 persons, worth Rs.
6,00,000 and used it exclusively for business purpose and capitalized the same in the books of
accounts.
On the same day, she also bought 4 laptops worth Rs. 25,000 each. All the laptops are also
capitalized in the books of accounts and no depreciation is claimed under the Income-tax Act, 1961
on the GST component of the same and ITC is availed on the same.
On 7th July, Ms. Nitya purchased an air conditioner worth Rs. 55,000 for office purpose and
capitalized the same in the books of accounts.
On 31st December, Ms. Nitya decided to give the motor car, two laptops and the air conditioner
to her brother - Mr. Darsh – a well-established businessman in Surat, Gujarat, without
consideration. Open market value of the motor car, the air conditioner and the laptop on that day
is Rs. 3,00,000, Rs. 40,000 and Rs. 15,000 (per laptop) respectively.
Note:
1. There is no other outward or inward supply transaction apart from the aforesaid transactions.
availing ITC have been fulfilled. Ms. Nitya availed and utilized all the ITC for which she is
eligible, but she did not avail the ITC on purchase of air conditioner.
3. All inward and outward supplies are intra-State supplies except the stay in hotel in Mumbai,
Maharashtra.
4. Applicable rate of CGST is 6%, rate of SGST is 6% and rate of IGST is 12% on all inward and
outward supplies.
5. All the amounts given above are exclusive of GST, wherever applicable.
Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos
I to v as follows:-
i. Upto which of the following date(s), Ms. Nitya has to maintain relevant books of accounts
under the GST Law?

PAGE NO.

Assuming that:
I. the above information is provided for the financial year 2019-20 and Ms. Nitya is under
investigation for an offence under Chapter XIX of the CGST Act, 2017, and such
investigation was concluded on 31st December 2021.
II. the above information is provided for the financial year 2019-20 and Ms. Nitya is under
investigation for an offence under Chapter XIX, and such investigation was concluded on
31st December 2026.
(a) 31st December 2026 for Case-I and 31st December 2027 for Case-II.
(b) 31st December 2027 for the both the cases.
(c) 31st December 2026 for the both the cases.
(d) 31st December 2026 for Case-I and 31st December 2032 for Case-II.
Answer: (a)
ii. Which of the following statements are correct?

1. Motor car given by Ms. Nitya to her brother is supply.
2. Air conditioner given by Ms. Nitya to her brother is supply.
3. Laptop given by Ms. Nitya to her brother is supply.
4. Air conditioner given by Ms. Nitya to her brother is not supply.
(a) Both 1 and 2
(b) Both 2 and 3
(c) Both 3 and 4
(d) Both 1 and 4
Answer: (c)
iii. Total taxable outward supply by Ms. Nitya for the current financial year is -
(a) Rs. 48,70,000
(b) Rs. 45,70,000
(c) Rs. 45,32,500
(d) Rs. 45,17,500

PAGE NO.

Answer: (c)
iv. Total credit available for the month of March is______.
(Assume that the opening balance of ITC for the relevant period is nil.)
(a) IGST - Rs. 25,200
(b) IGST - Rs. 26,400
(c) CGST - Rs. 12,600, SGST - Rs. 12,600, IGST - Rs. 1,200
(d) CGST -Rs. 12,600, SGST - Rs. 12,600
Answer: (d)
v. Tax payable by Ms. Nitya for the month of March is________.
(Assume that the opening balance of ITC for the relevant period is nil.)
(a) CGST - Rs. 17,550 and SGST - Rs. 17,550
(b) CGST - Rs. 16,950 and SGST - Rs. 17,550
(d) CGST - Rs. 15,951 and SGST - Rs. 16,551
Answer: (a)
.
Question 36:
Neha Chemical Pvt. Ltd. (hereinafter referred to as NCPL), a registered taxpayer under in Surat,
Gujarat, is engaged in manufacturing of chemical products. Poorva Fertilizers Pvt. Ltd.
(hereinafter referred to as PFPL) of Dhule, Maharashtra approached NCPL for supply of chemical
product.
NCPL supplied 20 tons of chemical product @ Rs. 1,00,000 per ton (taxable value) to PFPL on
1st October. The invoice for the supply has also been issued on the same date. Further, following
additional amounts (in lump sum) are also charged from PFPL:
Packing charges 25,000
Extra charges for removal of impurities from chemical 50,000
product

PAGE NO.

Transit insurance for transportation 5,000

Taxes levied by Municipal Authority 4,500
Transportation charges 35,000
As per the terms of the contract of supply, NCPL is required to deliver the chemical at the premises
of PFPL. Therefore, NCPL hires a transporter for transportation of chemical. The lorry receipt
indicates that freight (ignoring taxes) is payable by the receiver of goods.
On 4th October, NCPL has also received Rs. 2,00,000 as subsidy from the State Government for
setting up chemical manufacturing plant in Surat, Gujarat.
As per the contract, PFPL is required to make payment within 20 days of supply. Howev er, PFPL
delayed the payment of consideration and made the payment on 25th December alongwith Rs.
28,000 as interest.
On 5th October, NCPL hired a motor car from Mr. Mehul, resident of Surat, Gujarat for its
management team at Mumbai, Maharashtra for a business meeting. Mr. Mehul issued bill of Rs.
10,000 (including cost of fuel) for the same. Mr. Mehul has not charged any GST in the invoice
raised for the same.
On 9th December, NCPL received technical consultancy service from TikTak Inc., its subsidiary
company located in Singapore, without consideration. TikTak Inc. provides similar consultancy
service to other clients for Rs. 50,000 (converted into Indian rupees).
On 15th December, security office located at the entry gate of NCPL has been renovated fo r Rs.
1,50,000 and the same has been capitalized in the books of accounts.
Notes:
1. NCPL and PFPL are not related and price is the sole consideration for the supply.
2. All the amounts given above including interest on delayed payment of interest received from
PFPL are exclusive of GST, wherever applicable.
3. Applicable rates of GST:
Particulars CGST SGST IGST
Supply of chemical product 9% 9% 18%
Supply of service of hiring of 2.5% 2.5% 5%
motor car

PAGE NO.

Supply of technical consultancy 9% 9% 18%

service
Supply of construction services 6% 6% 12%
Based on the facts of the case scenario given above, choose the most appropriate answer to I to v
as follows:-
i. What is the gross tax liability (total of CGST + SGST+ IGST) for the month of October?
(a) Rs. 3,82,010

(b) Rs. 2,50,640
(c) Rs. 3,75,710
(d) Rs. 2,54,840
Answer: (a)
ii. Which of the following statements is/are not correct in the given case?
1. Subsidy received from the State Government will be included in the transaction value of
the chemical product.
2. Service received from TikTak Inc. is not supply.
3. Service received from TikTak Inc. is supply.
4. GST is not payable on service received from Mr. Mehul.
[Chapter 2,7 : Supply under GST & Value of Supply]
(a) Only 1,2 and 3
(b) Only 2,3 and 4
(c) Only 1, 2 and 4
(d) Only 4
Answer: (c)
iii. What is the time and place of supply for the interest paid on the delayed payment by PFPL?
[Chapter 5,6 : Place of Supply & Time of Supply]

PAGE NO.

(a) 1st October and Surat, Gujarat

(b) 1st October and Dhule Maharashtra
(c) 25th December and Surat, Gujarat
(d) 25th December and Dhule, Maharashtra
Answer: (d)
iv. Assuming that there are no other transactions carried out by NCPL during October to
December apart from the ones as mentioned in the case scenario, total ITC available during
such period is –
(a) Rs. 27,500

(b) Rs. 9,500
(c) Rs. 9,000
(d) Nil
Answer: (c)
v. In the given case scenario, if TikTak Inc. is not subsidiary of NCPL and has supplied the
technical consultancy service to NCPL without consideration,
(a) it will be an exempt supply.
(b) it will be a zero-rated supply.
(c) it will not be a supply.
(d) it will be a taxable supply.
Answer: (c)
Question37:
Vijayant Tours and Travels Ltd. (hereinafter referred to VTTL) is a registered taxable person under
GST in Surat, Gujarat providing service of tours and travels. Following details of VTTL are
available for the current financial year:
Total outward supply during the year: Rs. 1,95,00,000
Total inward supply during the year: Rs. 1,65,00,000
Total interest income earned on fixed deposit: Rs. 5,00,000
Following details relating to additional transactions (over and above the above-mentioned
information) are also available:
PAGE NO.

VTTL provided a holiday package for 3 days in Lakshadweep and Lonawala (Maharashtra) to his
customer - Mr. Vijay - resident of Surat, Gujarat. The package included travel from Surat, Gujarat
to Lakshadweep and from Lakshadweep to Lonawala, Maharashtra and accommodation and
complimentary breakfast in the hotels at both the places. The stay in Lakshadweep was for 2 nights
and in Lonawala for 1 night. For the above service, VTTL charged a total of Rs. 10,000.
On return journey, Mr. Vijay arra nged his travel on his own. Mr. Vijay bought two tickets of Air
India over internet from Mumbai to Surat. He boarded the flight at Mumbai airport.
During the year, VTTL gave a tour package worth Rs. 65,000 to its employee Mr. Sandip free of
cost on the occasion of his marriage. VTTL booked a ticket for air travel for Mr. Ishwar for
travelling to Delhi from Surat. The value of the air ticket was Rs. 8,000, out of which Rs. 7,500
was towards basic fare.
VTTL hired a security agency w.e.f. 1st April, M/s Fiv e Star Security, a partnership firm,
registered under GST in Surat, Gujarat to deploy security guards at its corporate office in Surat,
Gujarat. M/s Five Star Security issues monthly invoice for Rs. 15,000.
During the year, security office located at the entry gate has been renovated for Rs. 1,50,000 and
the same has been capitalized in the books of accounts.
Note:
2. Rates of tax applicable on all inward and outward supplies are CGST and SGST - 9% each and
IGST - 18%.
I to v. as follows:-
i. The place of supply in case of service provided by VTTL to Mr. Vijay is _ _

(a) both Lakshadweep and Mumbai, Maharashtra as service is received at both the
places
(b) Lakshadweep as service is started at this place.
(c) Lakshadweep as service is ended at this place.
(d) Surat, Gujarat
Answer: (d)

PAGE NO.

ii. The place of supply in case of return journey of Mr. Vijay assuming that:
i. he is registered under GST and
ii. he is not registered under GST.
(a) (i) Mumbai, Maharashtra and (ii) Surat, Gujarat
(b) (i) Surat, Gujarat and (ii) Mumbai, Maharashtra
(c) Mumbai, Maharashtra in both the cases
(d) Surat, Gujarat in both the cases
Answer: (b)
iii. What will be the GST liability of VTTL in case of air ticket booking for Mr. Ishwar?
(a) Rs. 1,350.00
(b) Rs. 67.50
(c) Rs. 1,440.00
(d) Rs. 72.00
Answer: (b)
iv. What will be the gross tax liability of VTTL for the current financial year?
[CH 2,3,4,7 : Supply under GST, Charge of GST, Exemptions from GST & Value of
Supply]
a. Rs. 35,23,657.00
b. Rs. 35,57,340.00
c. Rs. 35,55,967.50
d. Rs. 35,56,057.50
Answer: (c)
v. Which of the following statements is correct?
(a) Total aggregate turnover of VTTL is Rs.2,00,75,375.
(b) Total aggregate turnover of VTTL is Rs.2,00,83,000.
(c) Total aggregate turnover of VTTL is Rs.2,00,10,375.
(d) Total aggregate turnover of VTTL is Rs.1,95,75,375.
Answer: (a)
PAGE NO.

Question 38:
Vispute Textile Pvt. Ltd. (hereinafter referred to as VTPL) is engaged in manufacturing and trading
of textile products. Its head office is located in Surat, Gujarat. Besides, it has three other units –
Darsh, Kunj and Nitya located in Mumbai (Maharashtra), Surat (Gujarat) and Pune (Maharashtra)
respectively.
The head office (hereinafter referred to as VTPL -HO) and Units Kunj and Nitya are registered
under GST. Unit Darsh is not registered under GST as it is exclusively engaged in supply of exempt
goods. Further, VTPL-HO in Surat, Gujarat is also separately registered under GST as Input
Service Distributor (ISD).
VTPL-HO purchased goods worth Rs. 5,00,000 from Mr. Jayesh. However, such goods were
directly sent to the premises of registered job worker, Mr. Dinesh, without being first received at
VTPL’s manufacturing unit.
Goods were cleared by supplier – Mr. Jayesh - on 10th April, but were received by the job worker
on 16th April. The job worker carried out the job work and supplied the goods to M/s. Mahendra
Enterprises on 13th April of next year on payment of tax on the direction of VTPL-HO. VTPL-
HO has not declared Mr. Dinesh’s premises as additional place of business in registration details
on GSTN portal.
VTPL-HO bought a new motor vehicle worth Rs. 12,00,000 in exchange of old motor vehicle
(Exchange value of old motor vehicle is Rs. 4,50,000) on 5th July, having seating capacity of 13
persons excluding the driver for the daily transport of its employees. Old motor vehicle was
purchased 2 years before on 1st September for Rs. 8,00,000. Seating capacity of the old motor
vehicle was 10 persons including driver. Rate of GST on motor vehicle is 18%.
On 25th July, VTPL-HO engaged Bahubali Ltd., a company (registered under GST in Mumbai,
Maharashtra) dealing in textile machineries, to supply machineries worth Rs. 30,00,000 for a
spinning unit to be set up at Satara, Maharashtra. Machineries are supplied in completely knocked
down condition at the Satara unit and assembled by the engineers of Bahubali Ltd. Satara unit is
yet to be registered under GST.
Following information is available in respect of the units for which VTPL is registered under GST
as an ISD, for month of July:
Input CGST SGST IGST Remarks
Service (Rs.) (Rs.) (Rs.)

PAGE NO.

X 50,000 50,000 - Used in Unit Darsh

Y - - 1,20,000 Used in Unit Nitya and Darsh
Z 4,000 4,000 - Used in Unit Kunj [Input

Service Z is in respect of
servicing of motor bike
(with engine capacity of 120
cc) used in Kunj Unit for
business purpose]
Total turnover of the units for the last financial year are given under.
Unit Turnover
(Rs.)
Darsh 15,00,000
Kunj 8,00,000
Nitya 10,00,000
Note:
1. Applicable rate of CGST and SGST is 6% each and IGST is 12% on all inward and outward
supplies, unless otherwise specified.
2. All the units are operational during the year unless specifically mentioned otherwise in the
question.
I to v as follows:-
i. Which of the following statements is/are correct in respect of the goods sent for job work
to Mr. Dinesh?
[Chapter 16 : Job Work]
1. VTPL is not eligible to take input tax credit as it has not declared the premises of the job
worker as its additional place of business.

PAGE NO.

2. VTPL is required to reverse the input tax credit as job worker returned the goods after 1 year
from 10th April.
3. VTPL is not required to reverse the input tax credit as job worker returned the goods before
1 year from 16th April.
4. VTPL cannot directly sell the goods to M/s Mahendra Enterprises from job worker’s
premises as VTPL has not declared the premises of the job worker as its additional place of
business.
(a) 1st and 4th
(b) 2nd and 4th
(c) Only 3rd
(d) Only 4th
Answer: (c)
ii. Which of the following statements is true in context of input tax credit to be distributed by
ISD VTPL-HO to Unit Kunj?
(a) CGST and SGST credit of Rs. 54,000 each and IGST credit of Rs. 1,20,000 will be
distributed as IGST credit, to Unit Kunj in proportion to its turnover of preceding
financial year to the total turnover of all the three units of the preceding financial
year.
(b) Ineligible credit of CGST and SGST of Rs. 4,000 each will be distributed as
ineligible credit of IGST of Rs. 8,000 to Unit Kunj.
(c) Credit of CGST and SGST of Rs. 4,000 each will be distributed as credit of IGST
of Rs. 8,000 to Unit Kunj.
(d) Ineligible credit of CGST and SGST of Rs. 4,000 each will be distributed as
ineligible credit of CGST and SGST of Rs. 4,000 each to Unit Kunj.
Answer: (d)
iii. Amount to be distributed by VTPL-HO to Unit Darsh is-
(a) CGST and SGST credit of Rs. 50,000 each; IGST credit of Rs. 72,000.
(b) CGST and SGST credit of Rs. 50,000 each; IGST credit of Rs. 54,545.
(c) IGST credit of Rs. 1,72,000.

PAGE NO.

(d) nil as Unit Darsh is not registered under GST and is exclusively engaged in supply
of exempt goods.
Answer: (c)
iv. Place of supply of the machinery supplied by Bahubali Ltd. on 25th July and the tax
charged thereon is:
(a) Surat, Gujarat; CGST and SGST
(b) Satara, Maharashtra; CGST and SGST
(c) Mumbai, Maharashtra; IGST
(d) Surat, Gujarat; IGST
Answer: (b)
v. Amount of ITC available on purchase of new motor vehicle in exchange of old motor
vehicle as on 5th July is ____________.
(a) nil as ITC is blocked on motor vehicle under section 17(5) of the CGST Act, 2017
(b) Rs. 2,16,000
(c) Rs. 1,35,000
(d) Rs. 2,97,000
Answer: (b)
Question 39:
ABC Petroleum Limited is engaged in the business of refining and marketing of petroleum
products. It has one refinery each in the States of Tamil Nadu, West Bengal & Maharashtra and
numerous administrative and marketing offices spread across the country.
The company has separate marketing cum administrative offices for every major State and
common administrative cum marketing offices for a group of small States e.g., all north -eastern
States are covered under one marketing cum administrative office. The co mpany also blends
lubricants in its blending plants located in the States of Maharashtra and Tamil Nadu.
As a policy, all the places of business of the company in a State are registered under GST under
one registration.
Imported crude is used as input in the refinery and following major products are extracted after
refining process:

PAGE NO.

Products chargeable to GST (Group A) Products not chargeable to GST (Group B)
Base oil (An input for blending lubricants) Petrol
Furnace oil Diesel
Bitumen(Used forroad construction) Air turbine fuel
LPG (Domestic and Industrial)
Base oils are further sent to blending plants where they are blended with additives to produce
lubricants. The company provides the following particulars for States of Tamil Nadu, Maharashtra
and Kerala for the month of January:
(Amount in thousands)
Particulars Tamil Nadu Maharashtr Kerala
(Rs.) a (Rs.) (Rs.)
Value of supply inclusive of 1,650 3,400 1,575
all taxes/duties (Group B
products)
Value of supply (Group A products) 100 200 20
before all taxes/duties
Excise duty leviable on supply of Group 500 1,000 110
B products
VAT on supply of Group B products 250 600 65
procured at the blending plant
Tax paid on spares procured at the 3 8 0
refinery (Spares are booked in revenue
account)

PAGE NO.


procured at the marketing cum
administrative office
Tax paid capital asset procured at the 0 5 0
blending plant
Tax paid capital asset procured at the 12 0 0
refinery
Assume that all of the Group A products are chargeable to GST @ 18% (including both CGST
and SGST or IGST, as the case may be).
The opening balance of input tax credit of ABC Petroleum Limited for the relevant tax period is
nil. Subject to the information given above, assume that all the other conditions necessary for
availing ITC have been fulfilled. Further, there is no other inward or outward supply transaction
for ABC Petroleum Limited in January apart from the aforementioned transactions.
I to v as follows:-
i. The value of company’s supply in the Union Territory of Puducherry is Rs. 32,34,000
(Group A products) and in the State of Goa is Rs. 18,38,000 (Group A and Group B
products) for the current financial year. GST registration is:
a. not required for both Puducherry and Goa
b. not required for Goa but required for Puducherry
c. required for both Puducherry and Goa
d. not required for Puducherry but required for Goa
Answer: (c)
ii. The eligible ITC attributable to taxable supply, available at marketing cum administrative
office located in the State of Maharashtra, for the month of January, is:
(a) Rs. 3,000
(b) Rs. 300
(c) Rs. 166.67

PAGE NO.

(d) Rs. 1,500

Answer: (b)
iii. The eligible ITC attributable to taxable supply in respect of the capital asset procured in
the State of Tamil Nadu, for the month of January is:
(a) Rs. 12,000.
(b) Rs. 200.
(c) Rs. 11,811.11.
(d) Rs. 11,820.
Answer: (d)
iv. Lubricant valued at Rs. 10,000 has been stock transferred from the blending plant located
in the State of Tamil Nadu to the refinery located in the same State, in the month of January.
The GST (CGST and SGST) payable on such transaction is:
(a) nil as the transaction is not a supply.
(b) Rs. 900.
(c) Rs. 1,800.
(d) nil as such supply is exempted from GST.
Answer: (a)
v. Due to sudden fire in the store-room of the refinery located in Maharashtra on 28th January,
the entire quantity of spares procured in the month of January gets destroyed. What action
is required from ABC Petroleum Limited?
(a) No action is required on the part of ABC Petroleum Limited under GST Law.
(b) ABC Petroleum Limited should report to jurisdictional GST Department for
verification of the loss of inputs on account of fire.
(c) ABC Petroleum Limited should not avail ITC of tax paid on the spares.
(d) ABC Petroleum Limited should avail ITC and reverse the same.
Answer: (c)
Question 40:

PAGE NO.

Dumdum Engineering Private Limited (DEPL), Surat (Gujarat), a supplier of heavy machinery,
supplied a machine to Gulati Manufacturers from its godown located in Mumbai, Maharashtra, on
1st January at a price of Rs. 64,00,000 (excluding all taxes). Gulati Manufacturers has its corporate
office in New Delhi.
However, the machinery was installed at its manufacturing unit located in Gurugram (Haryana)
for which installation and commissioning charges of Rs. 4,80,000 and handling and loading
charges of Rs. 1,60,000, were charged by DEPL. For every machinery supplied, DEPL receives a
grant of Rs. 3,20,000 from its holding company Dharam Ltd.
Transportation of machinery to the customer’s premises is arranged by DEPL through a third-party
service provider [Goods Transport Agency (GTA)]. Gulati Manufacturers entered into a separate
service contract with the GTA and paid the freight of Rs. 50,000 directly to it.
DEPL offered a cash discount of 2% on the price of the machinery at the time of supply since
Gulati Manufacturers agreed to make the payment within 15 days of the receipt of the machinery
at its premises. However, it was agreed that in case Gulati Manufacturers failed to make the
payment within the stipulated time, DEPL would-
- recover the discount given; and
- charge interest @ 1% per month or part of the month on the total amount due (including
discount recovered) from Gulati Manufacturers (towards the machinery supplied) from the date of
making the supply till the date of payment. However, no interest is to be charged on the tax dues.
Gulati Manufacturers paid the consideration for the machine on 31st March. Since the payment
was made after the stipulated period of 15 days of the receipt of the machinery, discount given was
recovered from it and interest was accordingly charged. However, Gulati Manufacturers refused
to pay tax on interest and discount recovered.
Note:
1. Assume the rates of taxes to be as under:
Supply CGST rate SGST rate IGST rate
Supply of machinery 6% 6% 12%
Service of transportation of 2.5% 2.5% 5%
goods

PAGE NO.

Other services involved in 9% 9% 18%

the above supply
2. All the above transactions are exclusive of GST, wherever applicable.

3. The opening balance of input tax credit of DEPL for the relevant tax period is Nil. Further,
subject to the information given above, assume that all the other conditions necessary for availing
ITC have been fulfilled.
Based on the facts of the case scenario given above, choose the most appropriate answer to I tov
as follows:-
i. The place of supply of the machinery supplied by DEPL is _______________ and the
nature of supply is ______________.
[Chapter 2,5 : Supply under GST & Place of Supply]
(a) Gujarat, intra-State supply
(b) Haryana, inter-State supply
(c) New Delhi, inter-State supply
(d) Maharashtra, inter-State supply
Answer: (b)
ii. The GST liability of DEPL for the month of January is _______ (approx.).
(a) 9,46,660
(b) 8,67,840
(c) 9,06,153
(d) 8,29,440
Answer: (b)
iii. The GST liability of DEPL for the month of March is _______(approx.).
(a) 36,343
(b) 36,504
(c) 35,314
(d) Nil
Answer: (a)
PAGE NO.

iv. Supply of machinery and supply of installation and commissioning services is

______________ supply. Time of supply of interest received by DEPL and cash discount
recovered on account of delayed payment of consideration is ______
(a) composite, 31st March
(b) composite, 1st January
(c) mixed, 1st January
(d) mixed, 31st March
Answer: (a)
v. If the grant of Rs. 3,20,000 received by DEPL had been received from Central Government
instead of its holding company Dharam Ltd., with other facts remaining the same, the GST
liability of DEPL for the month of January would have been _________ (approx.).
(a) 9,46,660
(b) 8,67,840
(c) 9,06,153
(d) 8,29,440
Answer: (d)
.Question 41:
Starkart Limited owns and operates a web portal in the name of “Starkart” and is registered with
the jurisdictional GST authorities in Delhi as an electronic commerce operator and is liable to
collect tax at source under section 52 of the CGST Act, 2017.
Starkart provides listing service to various sellers for selling the goods to ultimate customers.
Besides this, Starkart also sells its own products through the same web portal.
For the listing services provided to sellers, Starkart charges a listing fee at the rate of 10% of
turnover of goods sold by the seller in a particular month. Such listing fee is recovered from the
seller irrespective of any return of goods sold through Starkart. The customers can choose from
wide range of goods listed on the web portal and place an online order for goods.
The payment is made by the customers through the payment gateway in online mode only. At the
time of monthly settlement, Starkart makes the payment to the sellers after adjusting the tax
collection at source at the applicable rates.

PAGE NO.

The invoice for goods sold on Starkart is issued by the seller in the name of customers and tax is
charged on the basis of location of seller and customer. The goods are shipped directly by the seller
to the customer and there is no responsibility of shipping the goods on Starkart for third party
sellers.
In case of return of goods by the customer, the shipping is arranged by Starkart. It charges a fee
equivalent to 20% of the value of goods returned as cancellation charges and refunds the balance
amount to the customer.
Further, 10% of the value of goods returned is collected from the seller by Starkart as handling
charges for return of goods.
In the month of January, Pulkit, a resident of Rajasthan, purchased following goods from Starkart:
a. Laptop having a value of Rs. 50,000 and a printer having a value of Rs. 10,000. Both the products
are sold by Infocom Limited, a seller listed on Starkart and registered under GST in the State of
Uttar Pradesh.
b. Mobile phone having a value of Rs. 30,000 sold by Starkart in its own capacity.
c. CCTV camera system having a value of Rs. 1,00,000 sold by Secure World, listed on Starkart
and registered under GST in the State of Gujarat.
The opening balance of input tax credit for the relevant tax period for Starkart, Infocom Limited
and Secure World is nil. Further, there is no other inward or outward supply transaction for
Starkart, Infocom Limited and Secure World in January apart from the aforementioned
transactions. Subject to the information given above, assume that all the other conditions necessary
for availing ITC have been fulfilled.
GST is applicable on all inward and outward supplies at the following rates unless otherwise
specified:
CGST - 9%, SGST - 9%, IGST - 18%.
I tov as follows:-
i. The net tax liability (including amount payable as tax collection at source and after set-
off of credits, if any) of Starkart Limited for the month of January is:
[Chapter 5,12 : Place of Supply & Payment of Tax]
(a) IGST - Rs. 8,280

PAGE NO.

(b) IGST - Rs. 5,400

(d) IGST - Rs. 9,880
Answer: (d)
ii. The net tax liability (after set-off of credits, if any) of Infocom Limited and Secure World
for the month of January is:
(a) IGST - Rs. 10,800 and IGST - Rs. 18,000 respectively
(b) IGST - Rs. 9,720 and IGST - Rs. 16,200 respectively
(c) IGST - Rs. 9,120 and IGST - Rs. 15,200 respectively
(d) IGST - Rs. 10,200 and IGST - Rs. 17,000 respectively
Answer: (c)
iii. In case it is assumed that Secure World’s turnover does not exceed the threshold limit for
obtaining egistration under applicable GST Law,
[Chapter 9: Registration]
(a) Secure World shall discharge tax only on the sales made through Starkart.
(b) Secure World is not required to obtain registration as threshold limit for obtaining
registration is not crossed and no tax is payable.
(c) Starkart shall be liable to discharge tax liability of sales made by Secure World.
(d) Secure World is required to obtain registration and shall be liable to pay tax on all
the taxable supplies made through Starkart or on its own.
Answer: (d)
iv. Assuming that Pulkit returns the printer purchased from Infocom Limited in the month of
January. As per the return policy, Starkart charges 20% of the value of the printer as
cancellation charges from Pulkit and 10% of the value of the printer as handling charges
from Infocom Limited. The net tax liability (including amount payable as tax collection at
source and after set- off of credits, if any) of Starkart in such scenario for the month of
January would be:
(a) Rs. 6,900 payable as IGST.

(b) Rs. 3,450 payable as CGST and Rs. 3,450 payable as SGST.
PAGE NO.

(c) Rs. 10,320 payable as IGST.

(d) Rs. 7,440 payable as IGST.
Answer: (c)
Question 42:
Advance Traders is a partnership firm in Jaipur, Rajasthan. The firm has obtained GST registration
at its Head Office (HO) in Jaipur. Further, the fir m is having its depot for storage for goods in other
districts in Rajasthan. The depots are added as additional place of business in the GST registration
obtained at HO. Following details are provided about the firm for the month of July:
a. Advance Traders received goods worth Rs. 5,00,000 for which GST is payable on reverse charge
basis. The goods were received on 25th July. The supplier issued an invoice dated 24th July and
payment for the same was made by Advance Traders on 30th July. Due to the absenc e of
accountant, the transaction was recorded in the books of accounts on 1st August.
b. In the month of July, Advance Traders issued vouchers worth Rs. 2,00,000 to its customers,
which were eligible to be redeemed against identified goods. Also, certain set of customers were
issued vouchers worth Rs. 5,00,000. The said vouchers were eligible to be redeemed against any
supply of goods in next 6 months.
c. Mr. X, a partner in the firm, booked a Hotel in Udaipur, Rajasthan for the wedding of his
daughter in the month of October. The advance amount of Rs. 5,00,000 for booking the hotel was
paid by way of online payment from the current account of Advance Traders in July. The hotel
charged GST on such booking at the rate of 28% (CGST @ 14% and SGST @ 14% or IGST @
28%, as the case may be) on the amount received as advance and issued a receipt voucher.
d. Advance Traders made a supply of goods worth Rs. 25,00,000 during the month of July. Out of
the aforesaid supply, goods worth Rs. 5,00,000 were not liable to GST. However, Advance traders
inadvertently charged GST on such goods and collected the same from the customers.
e. Due to clerical error, Advance Traders made a deposit in minor head penalty of the major head
IGST for an amount of Rs. 3,00,000. There is no liability of interest on any IGST liability and the
amount is lying as unutilized on GST portal.
The opening balance of input tax credit is nil for all the registrations. Further, subject to the
fulfilled. All the above transactions are exclusive of GST, wherever app licable.

PAGE NO.

specified:
CGST - 9%, SGST - 9%, IGST - 18%.
I to v as follows:-
i. Compute the GST liability to be discharged from electronic cash ledger for the month of
July by Advance Traders. For computing this liability, consider that there is no adjustment
regarding amount provided in point e. above:
[Chapter 6,7,19 : TOS, VOS & Demands & Recovery]
(a) Rs. 5,76,000

(b) Rs. 4,36,000
(c) Rs. 3,96,000
(d) Rs. 4,86,000
Answer: (d)
ii. Amount of input tax credit available to Advance Traders against the hotel booking expense
shall be _______________. Would there be any change if the hotel is located outside
Rajasthan?
(a) Nil. There will be no change even if hotel is located outside Rajasthan.
(b) Rs. 70,000 as CGST and Rs. 70,000 as SGST. No credit would be available, had
the hotel been located outside Rajasthan.
(c) Rs. 70,000 as CGST and Rs. 70,000 as SGST. IGST of Rs. 1,40,000 would be
available, had the hotel been located outside Rajasthan.
(d) Nil. IGST of Rs. 1,40,000 would be available, had the hotel been located outside
Rajasthan.
Answer: (a)
iii. What is the time limit for issuance of show cause notice where GST is collected on supplies
which are not liable to GST?
[Chapter 19 : Demands & Recovery]
(a) Within 2 years and 9 months from due date of filing annual return for the financial

PAGE NO.

year
(b) Within 4 years and 6 months from due date of filing annual return for the financial
year
(c) No time limit to issue the show cause notice
(d) No show cause notice to be issued. The tax amount shall be refunded to the
customers if the customer demands the same.
Answer: (c)
iv. Advance Traders claimed refund of amount paid erroneously in the minor head penalty of
major head IGST. The authorities rejected the refund claim. Advance Traders filed a civil
suit before the jurisdictional magistrate. Choose the correct answer:
(a) The jurisdictional magistrate can direct the authorities to process the refund
amount.
(b) The jurisdictional magistrate can redirect the matter for fresh assessment of refund
claim.
(c) The jurisdictional magistrate can order provisional refund and initiate the re-
assessment proceedings.
(d) The jurisdictional magistrate cannot pass any order regarding the refund claim.
Answer: (d)
v. Advance Traders wants to utilize the amount paid erroneously in the minor head penalty
of the major head IGST against its tax liability to be discharged in cash. Please select the
correct option assuming that all the procedural requirements for the same will also be duly
complied with.
(a) The amount can be utilized only for discharging penalty amount under any head.
(b) The amount can be utilized only for discharging liability of IGST under any minor
head.
(c) The amount can be utilized for discharging liability under any minor head or major
head.
(d) The amount can be utilized only for discharging penalty amount related to IGST.
Answer: (c)
PAGE NO.

Question 43:
William & Sons (WS) is a partnership firm, registered under GST, engaged in manufacturing
activity in the State of Rajasthan under GST. In the month of July following transactions were
undertaken by WS:
(a) Intra-State sale of goods worth Rs. 10,00,000. Out of such sale, Rs. 5,00,000 worth of goods
were liable to GST at 28% and balance were liable to GST at 18%.
(b) Intra-State purchase of goods worth Rs. 10,00,000 which is liable to GST at 28%.
(c) WS intended to transfer the business as going concern to Morgan & Sons (MS) on 31st July.
As per the terms of transfer, WS will transfer all the business assets worth Rs. 50,00,000 and all
the liabilities valued at Rs. 20,00,000.
(d) WS, on account of such transfer, paid gift worth Rs. 50,000 to its 3 employees as a reward
towards their services to the firm.
During the month of September, MS received the notice from the authorities for outstanding
liability of GST for Rs. 5,00,000 pertaining to the period before transfer of business by WS. Such
liability was determined after the transfer of business. For this purpose, assume that all the assets
and liabilities were transferred by WS to MS.
The balance of input tax credit at the beginning of the relevant period for WS is nil. Further, subject
to the information given above, assume that all the other conditions necessary for availing ITC
have been fulfilled.
specified:
CGST - 9%, SGST - 9%, IGST - 18%.
I to v as follows:-
i. The gross GST liability (without set off of input tax credit) of WS for the month of July is
(a) Rs. 2,32,000
(b) Rs. 2,80,000
(c) Rs. 25,000
(d) Rs. 2,30,000

PAGE NO.

Answer: (d)
ii. Suppose there is no transfer of business to MS, what is the amount of input tax credit lying
in input tax credit ledger, if any, which can be claimed as refund by WS for the month of
July?
(a) Rs. 50,000 under inverted duty structure

(b) Nil since WS is making outward supply of 28% also, the balance credit shall be
carried forward
(c) Rs. 23,000 under inverted duty structure
(d) Rs. 25,000 under inverted duty structure
Answer: (a)
iii. In case of transfer of business to MS, what is the amount of input tax credit which shall
stand transferred to MS?
(a) Rs. 25,000
(b) Rs. 50,000
(c) Nil. In case of partnership firm input tax credit cannot be transferred on account of
transfer of business.
(d) Nil as the value of liabilities is more than the value of assets.
Answer: (b)
iv. Who is liable to discharge the liability of Rs. 5,00,000 on account of notice received by
MS in the month of September?
[Chapter 20 : Liability to Pay Tax in Certain Cases]
(a) MS as the business is transferred by WS in July and notice was received in
September
(b) WS as the notice pertains to liability before transfer of business
(c) Liability on MS only up to the amount of input tax credit transferred by WS
(d) MS and WS jointly and severally liable
Answer: (d)
v. Suppose WS transfers the business as a going concern and transfers all the assets and
liabilities of such business for a lumpsum amount to MS, the transaction shall be:
PAGE NO.

(a) treated as taxable supply liable to GST under forward charge as WS is a registered
person under GST.
(b) liable to GST in the hands of MS under reverse charge basis.
(c) exempted from GST.
(d) liable to GST only for assets on which input tax credit is availed.
Answer: (c)
Question 44:
KLM Ltd. is a large publishing and printing house registered under GST under a single GSTIN in
Maharashtra. It is engaged in supply of books, letter cards, envelopes, guides and reference
materials. KLM Ltd. has front offices in Mumbai & Nagpur for receivi ng the orders; orders are
supplied to front office or supplied to recipient directly, from the workshop located at Nagpur,
depending on order. To save the time, workshop has in -house mess for the employees working in
the workshop, where lunch is provided free of cost as per the employer-employee agreement.
During April, KLM Ltd. received a proposal for printing of 5,000 copies of taxation book from a
renowned author where only content was to be supplied by the author. KLM Ltd. agreed to supply
the books. As per the requirement of the author, 2500 copies were supplied from workshop to
Nagpur front office and 2500 copies to Mumbai front office from where the author collected books.
Satisfied with the quality of books, the author placed another order of 10,000 pieces of letterhead
during May, the design and logo was supplied by the author for printing. Due to these orders, KLM
Ltd. earned a handsome amount of profit and decided to gift employees for their performance.
Accordingly, KLM Ltd. gifted mobile phone worth Rs. 36,500 each to all its 45 employees.
I to v as follows:-
i. Supply of taxation books by KLM Ltd. is:
(a) composite supply, principal supply being “supply of service”.
(b) composite supply, principal supply being “supply of goods”.
(c) mixed supply.
(d) supply of goods or service or mixed supply, at the choice of the KLM Ltd. and it
may pay the tax accordingly.
PAGE NO.

Answer: (a)
ii. Supply of letterheads by KLM Ltd. will be treated as:
(a) composite supply, principal supply being “supply of service”.
(b) composite supply, principal supply being “supply of goods”.
(c) mixed supply.
(d) supply of goods or service or mixed supply, at the choice of the KLM Ltd. and it
may pay the tax accordingly.
Answer: (b)
iii. Distribution of mobile phones to employees by KLM Ltd. will:
(a) be treated as deemed supply as per para 2 of Schedule I of the CGST Act, 2017
because the aggregate value of mobile phones is more than Rs. 50,000.
(b) not to be treated as deemed supply as per para 2 of Schedule I of the CGST Act,
2017 because value of the mobile phone is less than Rs. 50,000 per employee.
(c) be treated as deemed supply as per para 2 of Schedule I of the CGST Act, 2017
because the value of mobile phone is more than Rs. 25,000 per employee.
(d) be treated as deemed supply as per para 2 of Schedule I of the CGST Act, 2017
because the value of mobile phone is more than Rs. 35,000 per employee.
Answer: (b)
iv. In relation to taxability of supplies of copies from workshop to front office
(a) transfer from workshop to Nagpur front office will be treated as stock transfer, but
is not liable to GST; however, transfer from workshop to the Mumbai front office
will be treated as branch transfer between distinct persons and is liable to GST.
(b) transfer from the workshop to Nagpur front office and Mumbai Front office will be
treated as stock transfer between distinct persons and are liable to GST.
(c) transfer from the workshop to Nagpur front office and Mumbai Front office will be
treated as stock transfer, but are not liable to GST.
(d) transfer from workshop to the Mumbai front office will be treated as stock transfer,
but is not liable to GST, however, transfer from workshop to the Nagpur front office

PAGE NO.

will be treated as branch transfer between distinct persons and is liable to GST.
Answer: (c)
Question 45:
SV Enterprises (P) Ltd. is a pharmaceuticals company engaged in the manufacturing of medicines.
It has its head office in Rajasthan being registered under GST. It primarily sells two products in
the market which are as under:
(i) A (Taxable at 18%)
(ii) B (Taxable at 28%)
From head office (HO), it makes sales on the basis of orders received from dealers and its branches.
Total sales during the month of February is given below:
A B
Inter-State (Rs.) Intra-State Inter-State Intra-State
(Rs.) (Rs.) (Rs.)

50,00,000 50,00,000 50,00,000 30,00,000
(including branch
transfers**)
**The company transferred product A to its branch situated in Mumbai for Rs. 10,00,000. The
open market value of product A was not known at the time of transfer, but the goods of like kind
and quantity were sold at Rs. 12,00,000. Cost of product A is Rs. 8,00,000. Further, the branch
also deals in product A and product B only.
The company purchases its raw material worth Rs. 60,00,000 taxable @18% to be used in product
A, from a supplier located at Haryana and imported raw material worth Rs. 40,00,000 taxable @
28% to be used in product B, from U.S.A based vendor.
The opening balance of input tax credit of SV Enterprises (P) Ltd. for the relevant tax period is
nil. Further, subject to the information given above, assume that all the other conditions necessary
for availing ITC have been fulfilled. All the above transactions are exclusive of GST, wherever
applicable.
i to v as follows:-
i. What shall be the GST paid by SV Enterprises (P) Ltd. through Electronic Cash Ledger?
PAGE NO.

(a) IGST: Rs.1,00,000, CGST: Rs. 8,70,000, SGST: Rs. 8,70,000

(b) IGST: Rs. 11,20,000, CGST: Rs. 8,70,000, SGST: Rs. 8,70,000
(c) IGST: Rs. 12,20,000, CGST: Rs. 8,70,000, SGST: Rs. 8,70,000
(d) IGST: Nil, CGST: Rs. 8,70,000, SGST: Rs. 8,70,000
Answer: (a)
ii. Suppose Product A is exempt from GST, what shall be the aggregate turnover of SV
Enterprise?
(a) Rs. 1,80,00,000

(b) Rs. 80,00,000
(c) Rs. 2,20,00,000
(d) Rs. 1,40,00,000
Answer: (a)
iii. What shall be the value of supply of product “A” transferred to its branch in Mumbai?
(a) Rs. 10,00,000

(b) Rs. 12,00,000
(c) Rs. 8,00,000
(d) Rs. 8,80,000
Answer: (a)
iv. Suppose out of imported raw material amounting to Rs. 40,00,000, raw material amounting
to Rs. 10,00,000 was sold to another local customer before clearance for home
consumption. What shall be the net GST liability in this case?
(a) IGST- Rs. 3,80,000, CGST- Rs. 8,70,000, SGST- Rs. 8,70,000
(b) IGST- Rs. 1,00,000, CGST-Rs. 8,70,000, SGST-Rs. 8,70,000
(c) IGST- Rs. 12,20,000, CGST-Rs. 8,70,000, SGST-Rs. 8,70,000
(d) IGST- Rs. 20,60,000, CGST-Rs. 8,70,000, SGST-Rs. 8,70,000
Answer: (a)
PAGE NO.

v. If the payment for Product A was received on 25th February from one of the customers,
goods supplied on 28th February and invoice issued on 3rd March, what shall be the time
of supply in this case?
(a) 25th February
(b) 28th February
(c) 3rd March
(d) 20th March
Answer: (b)
Question 46:
Diwakar (P) Ltd., registered under GST in Delhi, is engaged in trading of cement as well as
providing services by way of renting of commercial properties. On 2nd January, it received a
contract for supply of 1,000 kg cement from Pakija (P) Ltd., registered under GST in Punjab.
Pakija (P) Ltd. directed Diwakar (P) Ltd. to send the consignment to Gajab & Sons, registered
under GST in Gujarat.
Diwakar (P) Ltd. prepared the consignment on 4th January and dispatched the same on the next
day from its warehouse in Gurugram, Haryana. The invoice was also issued on 5th January. On
7th January, it received the cheque and accountant entered the payment in books of accounts.
However, he presented the cheque in bank on 14th January which was credited in the bank account
of the company on 15th January.
In the meanwhile, on 10th January, the rate of tax on cement was reduced from 28% to 18%.
On inspection of said goods, it was found that there is some deficiency in the quality of goods and
therefore, the defective goods were returned to Diwakar (P) Ltd. Diwakar (P) Ltd. issued credit
note for the same on 20th January.
Diwakar (P) Ltd. let out property and received rent for the month of January from Pakija (P) Ltd.
on 10th January. However, as per the contract entered, the payments should have been received by
7th of every month.
i to iv as follows:-
i. What will be the time of supply and rate of tax to be charged in respect of supply of 1,000
kg of cement?

PAGE NO.


(a) 5th January; 28%
(b) 7th January; 28%
(c) 14th January; 18%
(d) 15th January; 18%
Answer: (a)
ii. In the above case, other facts remaining the same, what will be the time of supply and rate
of tax to be charged if the payment is credited into bank account on 12th January?
(a) 5th January; 28%

(b) 7th January; 28%
(c) 12th January; 28%
(d) 12th January; 18%
Answer: (a)
iii. What is the place of supply in respect of transaction between Diwakar (P) Ltd. and Pakija
(P) Ltd. and Pakija (P) Ltd. and Gajab & Sons?
(a) Delhi, Punjab
(b) Punjab, Gujarat
(c) Haryana, Punjab
(d) Haryana, Gujarat
Answer: (b)
iv. Diwakar (P) Ltd. has not issued any invoice in respect of the services provided by way of
renting of commercial properties in the month of January. What is the last date for issuance
of invoice?
(a) 10th January

(b) 7th January
(c) Either (a) or (b), whichever is earlier.
(d) Either (a) or (b), whichever is later.

PAGE NO.

Answer: (b)
Question 47:
Mr. Veera is a trader of readymade garments and is registered under GST in the State of Uttar
Pradesh.
His turnover is ₹ 1,80,00,000 during the current financial year. The composition of his
turnover is as under-
a) Intra-State - ₹ 80,00,000
b) Inter-State - ₹ 1,00,00,000 [including exempt supplies of ₹ 15,00,000]
His inward supplies are as under-
a) Inter-State - ₹ 1,00,30,000 [including ₹ 20,00,000 exclusively used for exempt supplies]
b) Intra-State ₹ 46,00,000 [including ₹ 15,00,000 exclusively used for taxable supplies]
Apart from above, Mr. Veera has undertaken following transactions during the current financial
year:
1) He purchased a pick-up van for the purpose of delivery of goods to his customers for ₹
1,70,000.
2) He got his showroom renovated (debited all expenses under repairs and maintenance) and
spent money as under-
i. Labour charges ₹ 3,60,000
ii. Architect fees ₹ 80,000
iii. Wooden flooring ₹ 4,00,000
iv. Miscellaneous expenses ₹ 1,62,000
3) He purchased some T-shirts for ₹ 1,80,000 (taxable under GST). After one week, he
gave them away free to its customers to promote his business.
4) He also sold his shares during the year for ₹ 10 crore and bought a house from that
money.
5) The rates of tax are 9% (CGST), 9% (SGST) and 18% (IGST) on all inward/ outward
supplies.
6) All the amounts given above are exclusive of taxes, wherever applicable.
7) The opening balance of input tax credit for the relevant tax period of Mr. Veera is Nil.
Subject to the information given above, assume that all the other conditions necessary
for availing ITC have been fulfilled.

PAGE NO.

Based on the facts of the case scenario given above, choose the most appropriate
answers
(i) Compute value of exempt outward supply (for the purpose of reversal of ITC) by Mr.
Veera during the current financial year.
(a) ₹ 10,00,000
(b) ₹ 15,00,000
(c) ₹ 25,00,000
(d) ₹ 20,00,000
Answer: (c)
(ii) Which of the following statements is true?

a) Mr. Veera cannot claim ITC on van purchased for delivery of goods, expenses
incurred on renovation of showroom and T-shirts distributed free of cost.
b) Mr. Veera can claim ITC on van purchased for delivery of goods and T -shirts
distributed free of cost, but cannot claim ITC on expenses incurred on renovation
of showroom.
c) Mr. Veera can claim ITC on van purchased for delivery of goods, expenses
incurred on renovation of showroom and T-shirts distributed free of cost.
d) Mr. Veera can claim ITC on van purchased for delivery of goods and expenses
incurred on renovation of showroom, but cannot claim ITC on T-shirts distributed
free of cost.
Answer: (d)
(iii) Calculate the amount of input tax credit credited to electronic credit ledger of Mr. Veera
(ignore individual heads of CGST/SGST/IGST).
(a) ₹ 24,84,360
(b) ₹ 22,73,400
(c) ₹ 23,04,000
(d) ₹ 24,53,760
Answer: (a)

PAGE NO.

(iv) Compute the amount of common credit as per rule 42 of the CGST Rules, 2017.
(a) ₹ 20,03,400
(b) ₹ 22,14,360
(c) ₹ 20,34,000
(d) ₹ 21,83,760
Answer: (b)
Question 48:
Mr. Venkat, a practicing Chartered Accountant, based in Hyderabad, is registered under GST
in the State of Telangana.
He undertook following transactions/activities during the current financial year:
1) He provided consultancy services to Kuick Tours, a UK based entity engaged in the
business of e-commerce in the field of tour and travels, having its office at UK. Kuick
Tours paid a sum of Euro 95,000 to Mr. Venkat billed @ 75 per Euro. Mr. Venkat made
travel to UK several times during the year and incurred Euro 5,000 @ ₹ 75 as incidental
expenses (including VAT paid ₹ 10,000) which was ultimately charged from Kuick
Tours.
Kuick Tours also paid a sum of EURO 5,000 @ ₹ 75 to Mr. Venkat as
interest on account of delay in payment of agreed consideration.
Mr. Venkat also hired the services of a professional firm based in UK to
complete the assignment of providing services to Kuick Tours and paid
Euro 10,000 @ ₹ 75. This was not recovered from Kuick Tours.
2) Mr. Venkat’s taxable earnings for services pr ovided in India for the financial year are ₹
85,00,000. In addition to this, Mr. Venkat also provided return filing services free of
charge in the month of July to Indian residents who were economically weaker. Open
market value of such services was ₹ 1,40,000.
3) In July, Mr. Venkat also provided financial services to his real brother Mr. Kamath who
is working at an IT company and earning handsomely, for ₹ 75,000 (invoice value).
However, Mr. Venkat offered him 90% discount on the invoice raised to him. There fore,
Mr. Kamath paid ₹ 7,500 only.
4) Dumdum Electricals Ltd., registered under GST in Guwahati, Assam approached Mr.
Venkat to impart GST training to its accounts and finance personnel. Mr. Venkat
PAGE NO.

imparted the said training to 50 employees of Dumdum Electricals Ltd. at a conference

room of Swaraj Hotel located in Siliguri, West Bengal on 25th August.
Notes: The rates of tax are 9% (CGST), 9% (SGST) and 18% (IGST) on all inward/
outward supplies. All the amounts given above are exclusive of taxes, wherever
applicable.
answers
➢ Compute the value of supply made by Mr. Venkat to Kuick Tour (in Euros).
(a) 120,000
(b) 105,000
(c) 115,000
(d) 125,000
Answer: (b)
(ii) Compute aggregate turnover of Mr. Venkat for the current financial year.
(a) ₹ 1,78,75,000
(b) ₹ 1,86,25,000
(c) ₹ 1,63,82,500
(d) ₹ 1,80,90,000
Answer: (c)
(iii) What is value of supply made by Mr. Venkat to Mr. Kamath if Mr. Kamath
is the son of Mr. Venkat and not his brother, other facts remaining the same?
a. ₹ 7,500
b. ₹ 75,000
b) Not a supply since they are related
c) Value cannot be determined
Answer: (b)

PAGE NO.

(iv) The place of supply of the GST training imparted by Mr. Venkat to the
accounts and finance personnel of Dumdum Electricals Ltd. is
(a) . Hyderabad, Telangana
(b) Guwahati, Assam
(c) Siliguri, West Bengal
(d) Either (a) or (b), at the option of Mr. Venkat
Answer: (b)
Question 49:
Jaskaran, a registered supplier of Delhi, is engaged in supplying a bouquet of taxable goods and
services. He has made the following supplies in the month of January:
S. Particulars Amount*
No. (₹)
(i) Supply of 20,000 packages at ₹ 30 each to Sukhija 6,00,000
Gift Shop in Punjab
[Each package consists of 2 chocolates, 2 fruit juice
bottles and a packet of toy balloons]
(ii) 500 packages each consisting of 1 chocolate and 1
fruit juice bottle given as free gift to Delhi
customers on the occasion of Diwali
[Cost of each package is ₹ 12, but the open market
value of such package of goods and of goods of like
kind and quality is not available. Input tax credit
has not been taken on the items contained in the
package]
(iii) Catering services provided to elder brother free of
cost for his business function in Delhi
[Cost of providing said services is ₹ 55,000, but the
open market value of such services and of services
of like kind and quality is not available.]
*excluding GST
Following additional information has been furnished by Jaskaran:
1. Penalty of ₹ 10,000 was collected in lumpsum in the month of March from
Sukhija Gift Shop since the payment was received with a delay of 60 days.
PAGE NO.

2. One of the old customers of Jaskaran – Mr. Bahubali - approached him

requesting him to arrange the transportation of the goods purchased by him
from a local supplier. Jaskaran arranged the transportation of said goods
for Mr. Bahubali through a goods transport operator. Jaskaran did not issue
a consignment note to Mr. Bahubali.
3. Assume the rates of GST to be as under:
Goods/services supplied CGST SGST IGST

Chocolates 9% 9% 18%
Fruit juice bottles 6% 6% 12%
Toy balloons 2.5% 2.5% 5%
Catering service 9% 9% 18%
answers
➢ GST payable on packages supplied to Sukhija Gift Shop in January and in
March is (1) _________ and (2) __________
respectively.
(a) (1) IGST - ₹ 1,09,526; (2) nil
(b) (1) CGST - ₹ 54,763; SGST - ₹ 54,763; (2) nil
(c) IGST - ₹ 1,08,000; (2) IGST - ₹ 1,526
(d) (1) CGST - ₹ 54,000; SGST - ₹ 54,000; (2) CGST -
₹ 763; SGST - ₹ 763
Answer: (c)
➢ GST on services of transportation of goods provided by Jaskaran to Mr.

Bahubali:
a) is payable by Mr. Bahubali @ 5%.
b) is payable by Jaskaran @ 12%.
c) is payable by Mr. Bahubali @ 12%.
d) is not payable at all.
Answer: (d)

PAGE NO.

➢ Supply of 500 packages given as free gift to Delhi customers on the occasion
of Diwali is _____________________________ _.
a) a mixed supply
b) not a supply
c) a composite supply
d) a separate supply of chocolate and fruit juice bottle
Answer: (b)
➢ For the purposes of GST law, value of supply of catering services provided by
Jaskaran to his elder brother free of cost for his business function in Delhi is
_.
(a) ₹ 60,500
(b) ₹ 55,000
(c) ₹ 60,500 or ₹ 55,000, whichever is lower
(d) nil as catering services provided by Jaskaran to his elder brother is
not a supply.
Answer: (d)
Question 50:
Sudershan Transport Agency (P) Ltd. (hereinafter referred to as “STAL”), registered under
GST in Jaipur, Rajasthan, is providing services by way of transportation of goods by road for
which it issues consignment notes, to all the sectors of industries.
It maintains trucks, trollers, advance carriages for heavy loads, lorries and small tractors, for
the purpose of transportation and renting purposes. It also maintains special vehicles which
has special storage features and other advance facilities for transporting defence equipments
and other complex machineries, chemical and food products.
It has provided the following details for the current financial year:
(i) STAL rendered transportation services to farmers in Punjab for
transportation of agricultural produce to nearby cities for
₹ 2,00,000.
(ii) STAL gave buses on rent to a higher secondary school in Rajasthan
affiliated to CBSE and charged ₹ 5,00,000 for the same during the year.
(iii) STAL also had a contract with local authority in Rajasthan to provide
PAGE NO.

services by way of transportation of relief material to flood affected victims

for which ₹ 2,50,000 is charged.
(iv) Manimani Bank, (registered in Bareilly, Uttar Pradesh) sent its branch
manager Mr. Champak on one year deputation on a special project to
Bhopal, Madhya Pradesh. Mr. Champak’s family is stationed in Kanpur
(U.P.). Manimani Bank enters into a contract with STAL for transportation
of the household goods of Mr. Champak from Kanpur to Bhopal for ₹
1,50,000.
(v) STAL transported equipments to a military camp which also availed
special storage facility from STAL and amount charged for such services
is ₹ 5,50,000.
(vi) STAL provided service of transportation of goods to a co -operative society
which was newly constituted and hence was not registered under GST law
and the amount charged was
₹ 3,00,000. While transporting the goods of the said co-operative society,
STAL generated e -way bill on Monday at 2:00 pm. The goods were to be
transported for a distance of 220 km.
(vii) STAL owns and maintains its own petrol pump wherein the revenue from
supply of petrol was ₹ 20,00,000.
Notes:
1. Assume that GST is payable on the transportation in the aforesaid case
scenario at the following rates unless otherwise specified:
2. All the above amounts are exclusive of GST, wherever
applicable, unless otherwise specified.
answers
➢ Determine the value of outward supplies made by STAL which are exempt
from GST.
(a) ₹ 35,00,000
(b) ₹ 15,00,000
(c) ₹ 16,00,000
(d) ₹ 5,50,000
Answer: (a)

PAGE NO.

➢ Determine the place of supply of the services of transportation of household

goods of Mr. Champak provided by STAL.
(a) Jaipur, Rajasthan
(b) Bareilly, Uttar Pradesh
(c) Kanpur, Uttar Pradesh
(d) Bhopal, Madhya Pradesh
Answer: (b)
➢ Calculate the aggregate turnover of STAL for the current financial year.
(a) ₹ 35,00,000
(b) ₹ 39,50,000
(c) ₹ 19,50,000
(d) ₹ 38,00,000
Answer: (b)
➢ Determine the period of validity of e-way bill generated by STAL for

transporting the goods of the co-operative society.
(a) Tuesday-Wednesday at 12.00 midnight
(b) Wednesday-Thursday at 12.00 midnight
(c) Wednesday at 12.00 noon
(d) Wednesday at 2.00 pm
Answer: (b)
➢ Whether tax is required to be deducted under section 51 of the CGST Act,

2017 for the service provided by STAL to local authority in Rajasthan?
(a) No; since the value of contract is not less than
₹ 2,50,000.
(b) Yes; since the value of contract is ₹ 2,50,000.
(c) Yes; since TDS is mandatorily to be deducted for any supplies
made to a local authority irrespective of the value of supply.
(d) No; since it is an exempt supply.
Answer: (d)

PAGE NO.


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Chapter name Page no:

INDIRECT TAX LAWS

PART I-GOODS & SERVICE TAX

Chapter 1: GST in India – An introduction 03

Chapter 2: Supply under GST 04 – 09

Chapter 3: Charge of GST 10 – 12

Chapter 4: Exemptions From GST 13 - 20

Chapter 5: Place of Supply 21-25

Chapter 6: Time of Supply 26-28

Chapter 7: Value of Supply 29-38

Chapter 8: Input tax credit 39-41

Chapter 9: Registration 42-47

Chapter 11: Accounts and Records and E-way Bills 51-52

Chapter 12: Payment of Tax 53-57

Chapter 13: Returns 58

Chapter 14: Import & Export under GST 58-60

Chapter 15: Refunds 61-64

Chapter 16: Job Work 65

Chapter 17: Assessment & Audit 66-68

Chapter 18: Inspection, Search, Seizure & Arrest 69-70

Chapter 19: Demands & Recovery 71-72

Chapter 20: Liability to Pay Tax in certain cases 73

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Chapter 21: Oﬀences & Penalties 74-77

Chapter 22: Appeals & Revisions 78-81

Chapter 23: Advance Rulings 82-83

Chapter 24: Miscellaneous Provisions 83-86

Chapter name Page no:

PART II- CUSTOMS & FTP

Chapter 1: Levy of and Exemptions from Customs Duty 86-95

Chapter 2: Types of Duties 96-101

Chapter 3: Classiﬁcation of Imported & Export Goods 102-104

Chapter 4: Valuations under customs act,1962 105-111

Chapter 5: Importation, Exportation and Transportation of Goods 112-113

Chapter 6: Duty Drawback 113-116

Chapter 7: Refund 117-118

Chapter 8: Foreign Trade policy 119

Integrated Combined Case Scenarios 120-255

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