Top 150+ Solved Computation of Liability MCQ Questions Answer
Q. A service shall be a continuous supply of service agreed to be provided continuously or onrecurrent basis under a contract when the period of service exceeds
a. 1 month
b. 3 months
c. 6 months
d. 1 year
Q. Which of the following is not liable to be registered as per provisions of CGST Act, 2017 ?
a. Person supplying exempted good
b. Non-resident making taxable supplies
c. Deductor of tax at source
d. Supplier on behalf of other person
Q. Miss. Raksha is engaged in providing private coaching services in Noida, Uttar Pradesh and is not registered under GST till 25 Sept. 2019. Her aggregate turnover is ` 19,00,000 on 30 Sept. 2019. She got GT registration on 30 Sept. 2019. Which of the following options are available to her ?
a. She can pay tax @ 18%, charge it from customer and avail full input tax credit on procurements made.
b. She can pay tax @ 6% under exemption scheme for service providers but she cannot charge GST from customer and also cannot avail input tax credit.
c. She is not liable for registration since her aggregate turnover is less than ` 40,00,000
d. Either (a) or (b)
Q. Mr. Arun, a registered supplier, is engaged in selling sweets. The sweets are sold in boxes and the cost of each sweet box is ` 500. In order to increase his turnover, he purchased certain juice cans @ ` 20 each and added juice can with every sweet box as a gift. A sweet box along with free juice can is sold at ` 500 each. Which of the statements is correct ?
a. He is liable to pay tax on ` 520 and eligible to claim input tax credit on purchase of juice cans
b. He is liable to pay tax on ` 500 and not eligible to claim input tax credit on purchase of juice cans
c. He is liable to pay tax on ` 500 and also eligible to claim input tax credit on purchase of juice cans
d. Either (a) or (b)
Q. Which is not considered as supply under GST Law ?
a. Stock transferred from one establishment in Delhi to another establishment in Gurgaon, Haryana registered under same PAN.
b. CA Ram supplies accounting services to CA Radha in lieu of taxation services received from CA Radha.
c. A Health club supplies lunch to its members at its annual meeting against a nominal charge
d. Mr. A sells a flat to Mr. B (i) Date of completion certificate - 31-1-2020 (ii) Date of agreement with buyer - 1-2-2020 (iii) Consideration received - 5-2-2020
Q. With reference to the provisions relating to transaction value under section 15 of the CGST Act,2017, which of the following is not correct ?
a. Central excise duty will not be included in transaction value for supply of tobacco.
b. Municipal taxes paid by tenant will be included in transaction value for supply of renting service.
c. Entertainment tax included in movie ticket will form part of transaction value
d. Customer makes payment of freight which is payable by the supplier, directly to the service provider. However, supplier does not include this amount in this invoice. Such amount will be included in transaction value of the supplier.
Q. Mr. Dev Anand is engaged in providing services of facilitating sale and purchase of securities to various clients. He is also engaged in trading of securities. His turnover details are as follows : Trading of securities - ` 40,00,000 Brokerage on account of facilitating transactions in securities - ` 30,00,000 You are required to ascertain aggregate turnover of Mr. Dev Anand under GST :
a. 30,00,000
b. 40,00,000
c. 70,00,000
d. Nil
Q. Mr. Pappu Singh, commenced his business in Feb. 2019. He has established following units : (i) Unit A (in SEZ) and Unit B (non-SEZ) in the State of Maharashtra (ii) Unit C in Delhi (iii) Unit D and E in the State of Goa Mr. Pappu Singh has approached you to help him in determining the states and number registrations he is required to take under GST (presuming the fact that he is making taxable supply from each state and his aggregate turnover exceeds the threshold limit) :
a. Maharashtra - 2 : Delhi - 1, Goa - Optional 1 or 2
b. Maharashtra - Optional 1 or 2 : Delhi - 1, Goa - Optional 1 or 2
c. Maharashtra - 1 : Delhi - 1, Goa - 1
d. Maharashtra - 2 : Delhi - 1, Goa - 2
Q. A non-resident taxable person is required to apply for registration
a. within 30 days from the date on which he becomes liable to registration
b. within 60 days from the date on which he becomes liable to registration
c. at least 5 days prior to the commencement of business
d. none of the above
Q. Which of the following activity shall be treated neither as a supply of goods nor a supply of services ? (i) Permanent transfer of business assets where input tax credit has been availed on such assets (ii) Temporary transfer of intellectual property right (iii) Transportation of deceased (iv) Services by an employee to the employer in the course of employment
a. (i) and (iii)
b. (ii) and (iv)
c. (i) and (ii)
d. (iii) and (iv)
Q. is levied on Inter-State supplies of goods or services or both.
a. CGST
b. SGST
c. IGST
d. Both (a) and (b)
Q. The liability to pay tax on goods shall arise at the .
a. Dispatch of good
b. Time of supply
c. Removal of goods
d. Delivery of goods
Q. Input Tax Credit of CGST can be first utilised to pay output liability of .
a. SGST
b. CGST
c. IGST
d. UTGST