GST MCQ Questions and Solutions with Explanations

31

How a person can apply for registration?

A) Filing FORM GST REG-01 along with necessary documents with the jurisdictional proper officer. B) Filing FORM GST REG-01 electronically in the common portal and uploading the required documents along with the application. C) Uploading necessary documents electronically in the common portal and also submitting manually to the jurisdictional proper officer. D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

32

Under what circumstances physical verification of business premises is mandatory?

A) Physical verification of business premises is a discretionary power of proper officer. B) If additional information for registration asked by the proper officer is not submitted within specified time. C) If certificate of registration is obtained on misrepresentation of facts. D) If photograph of the business premise is not uploaded in the common portal within specified time.

Discuss

Answer & Solution

Answer: Option A

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33

Business which has centralized registration under existing Acts

A) Shall obtain a centralized registration under GST Law. B) Shall obtain separate registration in each state from where it is making taxable supplies. C) Shall obtain registration on temporary basis. D) No need to apply for registration under GST.

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Answer & Solution

Answer: Option B

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34

Can a registered person opt for composition scheme only for one out of his 5 business different units having same Permanent Account Number?

A) Yes B) No C) Yes, with prior approval of the Central Government D) Yes, subject to prior approval of the GST Council

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Answer & Solution

Answer: Option B

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35

Can a registered person under Composition Scheme claim input tax credit?

A) Yes B) No C) Input tax credit on inward supply of goods only can be claimed D) Input tax credit on inward supply of services only can be claimed

Discuss

Answer & Solution

Answer: Option B

Solution:

No, a Composition Dealer is not allowed to avail input tax credit of GST paid to their supplier.

36

When does liability to pay GST arise in case of supply of goods?

A) On raising of invoice B) At the time of supply of goods C) On receipt of payment D) Earliest of any of above

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Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

37

What is date of receipt of payment?

A) Date of entry in the books B) Date of payment credited into bank account C) Earlier of (a) and (b) D) Date of filing of return

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Answer & Solution

Answer: Option C

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38

The value of supply of goods and services shall be the

A) Transaction value B) MRP C) Market Value D) None of above

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Answer & Solution

Answer: Option A

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39

When can the transaction value be rejected for computation of value of supply

A) When the buyer and seller are not related and price is not the sole consideration B) When the buyer and seller are related or price is not the sole consideration C) It can never be rejected D) When the goods are sold at very low margins

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

40

What deductions are allowed from the transaction value

A) Discounts mention on invoice B) Packing Charges mention on invoice C) Any amount paid by customer on behalf of the supplier D) Freight charges mention on invoice

Discuss

Answer & Solution

Answer: Option A

Solution:

Discounts given before or at the time of supply will be allowed as deduction from transaction value. Such discounts must be clearly mentioned on the invoice.

GST MCQ Questions and Solutions with Explanations | Commerce