GST MCQ Questions and Solutions with Explanations

51

Can Banking Company or Financial Institution withdraw the option of availing actual credit or 50% credit anytime in the financial year?

A) Yes B) No

Discuss

Answer & Solution

Answer: Option B

Solution:

According to Rule 38 of Central Goods and Service Tax Act, Banks, financial institutions and non banking financial companies (NBFC) engaged in business of deposits, extending loans or advances have an option to avail an amount equal to fifty per cent of the eligible input tax credit on inputs, capital goods and input services in that month or to take Input tax credit only on purchases made for selling taxable or zero rated goods or services and leave out the tax paid on purchases made for exempted supplies. Option once exercised can not be changes during the financial year.

52

Any input tax paid on purchase of goods or services by an assessee for employees is eligible for ITC?

A) No B) Yes C) Yes, on the services notified which are obligatory for an employer to provide to its employees under any law for the time being in force D) Not applicable

Discuss

Answer & Solution

Answer: Option C

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

53

Mr. A obtains new registration, voluntary registration, change of scheme from composition to regular scheme and from exempted goods/services to taxable goods/services. He can avail credit on inputs lying in stock. What is the time limit for taking said credit

A) 1 year from the date of invoice B) 3 year from the date of invoice C) 5 year from the date of invoice D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

54

Can Mr. A avail credit on Input services or capital goods held in stock, in case of new registration/voluntary Registration

A) Yes B) No C) Yes on Input services only D) Yes on capital goods only

Discuss

Answer & Solution

Answer: Option B

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

55

Is Input tax to be reversed in case of supply of capital goods

A) Yes fully B) No C) Yes, to extent of credit taken as reduced by prescribed percentage or tax on transaction value whichever is higher D) Yes to the extent of transaction value of such goods

Discuss

Answer & Solution

Answer: Option C

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

56

The time limit beyond which if goods are not returned, the input sent for job work shall be treated as supply

A) One year B) Three years C) Six months D) Five years

Discuss

Answer & Solution

Answer: Option A

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

57

The time limit beyond which if goods are not returned, the capital goods sent for job work shall be treated as supply

A) One year B) Three Years C) Six months D) Five years

Discuss

Answer & Solution

Answer: Option B

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

58

Is the principal entitled for credit of goods though he has not received the goods and has been sent to job worker directly by vendor

A) Yes B) No C) Yes vendor should be located in same place D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

59

A person is entitled to take credit of input tax as self-assessed in the return and credited to Electronic credit ledger on

A) Final basis B) Provisional basis C) Partly Provisional and partly final basis D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

60

Provisional Input tax credit can be utilized against

A) Any Tax liability B) Self Assessed output Tax liability C) Interest and Penalty D) Fine

Discuss

Answer & Solution

Answer: Option B

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

GST MCQ Questions and Solutions with Explanations | Commerce