MULTIPLE CHOICE QUESTIONS

GOODS AND SERVICE TAX - BBA 309

BBA V

DECEMBER 2021
 FOR PRIVATE CIRCULATION

The Questions and Answers contained in this document have been prepared

by the faculty of the Institute from the sources believed to be reliable. Neither

the Institute nor the faculty gives any guarantee with respect to completeness

or accuracy of the contents contained in the document and shall in no event

be liable for any errors, omissions or damages arising out of use of the

matter contained in the document. The Institute and the faculty specifically

disclaim any implied warranty as to merchantability or fitness of the

information for any particular purpose.

 MULTIPLE CHOICE QUESTIONS
GOODS AND SERVICE TAX - BBA 309
BBA V
1. Which among the following is not the type of tax which is directly imposed on the
taxpayer and he/she pays the same directly to the government?
A. Income Tax
B. Corporate Tax
C. Wealth Tax
D. Goods and Service Tax

2. A ……. is a mandatory financial charge or levy or burden imposed upon a taxpayer by

the government in order to fund different public expenditures.
A. Subsidy
B. Tax
C. Income
D. Revenue

3. Do you think tax evasion has become less with the application of goods and service tax
on supply?
A. Yes
B. No

4. What is the nature of indirect taxes in our nation?

A. Progressive
B. Regressive

5. What is the nature of direct taxes in our nation?

A. Progressive
B. Regressive

6. Under which type of tax is the taxation amount collected shared between the centre and
the states?
A. CGST
B. SGST
C. UTGST
D. IGST

7. The system of charging tax on tax (also called as incidence of tax) is called as….
A. Input Tax Credit
B. Tax Compliance
C. Cascading Effect
D. Sales Tax

8. Article….. states that no tax shall be levied or collected except by authority of law.
A. 100
B. 250
C. 265
D. 300
9. Article….. grants power to centre to make laws with respect to GST in case of inter-
state supply of goods and services and state government to make laws with respect to
GST in case of intra-state supply of goods and services.
A. 100
B. 246 A
C. 245
D. 145

10. Who is the chairperson of the GST Council?

A. Prime Minister
B. President
C. Union Finance Minister
D. State Revenue Minister

11. Under GST, which is the point of collection of taxes?

A. Manufacture
B. Production
C. Destination of Supply
D. Origin of Sales

12. ….. is a constitutional body created by the President to make recommendations or give
any suggestions to the union and state government on issues related to goods and
service tax.
A. GST Court
B. GST Apex Body
C. GST Board of Directors
D. GST Council

13. Any transaction or occurrence that results in a tax consequence is called a “taxable
event.” In case of GST, the taxable event is…..
A. Manufacture
B. Production
C. Supply of goods and services
D. Origin of Sales

14. Can Composition scheme be availed if the registered person effects interstate supplies?
A. Yes
B. No
C. Yes, subject to prior approval of the Central Government Levy and Collection of Tax
11 Indirect Taxes Committee
D. Yes, subject to prior approval of the concerned State Government

15. What are different types of supplies covered under the scope of Supply?
A. Supplies made with consideration
B. Supplies made without consideration
C. Both of the above
D. None of the above
16. What are the factors differentiating Composite Supply & Mixed Supply?
A. Nature of bundling i.e., artificial or natural
B. Existence of Principal Supply
C. Both of the above
D. None of the above

17. Who will notify the rate of tax to be levied under CGST?
A. Central Government suo moto
B. State Government suo moto
C. GST Council suo moto
D. Central Government as per the recommendations of the GST Council

18. First discussion paper (FDP) which formed the basis for GST in 2009 was released by
A. Union Finance Ministry
B. Dr. Manmohan Singh
C. GST Council
D. Empowered Committee

19. …… includes all forms of supply such as sale, transfer, barter, exchange, license,
rental, lease or disposal made or agreed to be made for a consideration by a person in
the course or furtherance of business.
A. Supply
B. Production
C. Manufacture
D. Sales

20. …… in relation to supply of goods or services or both include any payment made or
agreed to be made whether in money or otherwise (in kind) in respect of or in response
to supply of goods or services or both.
A. Consideration
B. Monetary payment
C. Manufacture
D. Sales

21. .…… in relation to supply of goods or services under GST shall be in money or in kind
or partly in money and partly in kind or monetary value of any act or forbearance of the
supply.
A. Consideration
B. Monetary payment
C. Manufacture
D. Sales

22. It is possible to shift the burden of taxation in the case of….

A. Income Tax
B. Wealth Tax
C. Gift Tax
D. Indirect Tax such as GST
23. The imposition of direct taxes is on…. while in the case of indirect taxes it is on ….
A. Gifts, Income
B. Income, Goods or Services
C. Goods or Services, Income
D. Income, Gifts

24. The final burden of paying taxes in case of income tax is on …. While in the case of
indirect taxes is on….
A. Producer, Consumer
B. Consumer, Producer
C. Final Consumer, Taxpayer
D. Taxpayer, Final Consumer

25. GST is a …... based tax.

A. Consumption/Destination
B. Production
C. Manufacture
D. Sales

26. Uniform rate of taxes are applicable in the case of ….

A. Central Sales Tax
B. VAT
C. Excise Duty
D. GST

27. What is the nature of levy in the case of GST?

A. Only at supply point without input tax credit
B. All points of manufacture
C. Only at supply point/consumption of goods and services with input tax credit
D. At the time of transfer and rent

28. Tax burden in the case of GST is comparatively …. as compared to pre-Gst tax regime.
A. Higher
B. Lower

29. Goods and services tax mean any tax on supply of goods or services or both except
taxes on the supply of the …...
A. Articles
B. Commodities
C. Any material in tangible form
D. Alcoholic Liquor for human consumption

30. What is applicability of GST?

A. Applicable all over India except Sikkim
B. Applicable all over India except Jammu and Kashmir
C. Applicable all over India
D. Applicable all over India except Nagaland
31. Which among the following is not the function of Goods and service tax council’s:
A. Establish a mechanism for dispute resolution
B. Make recommendations related to GST
C. Make any suggestions related to GST
D. Collect tax

32. In the case of reverse charge, tax is paid to the government by

A. Supplier
B. Buyer
C. Manufacturer
D. None

33. Supply NOT includes ….

A. All forms of supply such as sale, transfer, barter, exchange, lease or rental
B. Importation of services for a consideration whether or not in the course of business
C. Activities covered in Schedule I or Schedule II
D. Export of goods and services

34. …… of services, mean the supply of any service where the supplier of service is
located outside India, the recipient/receiver of service is in India and the place of
service is in India.
A. Export
B. Import
C. Domestic Produce
D. Domestic Sales

35. ….. supply means a supply of goods or services or Both which is leviable to tax under
this act.
A. Zero-Rated
B. Taxable
C. Continuous
D. Exempt

36. ….. supply means supply of goods or services within a single state or union-territory.
A. Zero-Rated
B. Continuous
C. Intra-State Supply
D. Inter-State Supply

37. ….. supply means supply of goods or services between two different states or union-
territories.
A. Zero-Rated
B. Continuous
C. Intra-State Supply
D. Inter-State Supply

38. ……supply means supply of goods or services or both on which no tax is payable and
such supplies include export of goods and supply of goods to special economic zones.
A. Zero-Rated
B. Continuous
C. Intra-State Supply
D. Inter-State Supply

39. Goods which get input tax credit without being liable to collect output tax is called
A. Exempt goods
B. White goods
C. Sin goods
D. Zero rated goods

40. …… supply means supply of goods or services or both which attract nil rate of tax and
which are not chargeable to tax.
A. Exempt
B. Continuous
C. Intra-State Supply
D. Inter-State Supply

41. …… supply means supply of goods or services which is provided or agreed to be

provided on continuous or recurring basis.
A. Exempt
B. Continuous
C. Intra-State Supply
D. Inter-State Supply

42. Schedule I of GST includes deemed supplies that is supply without consideration. Such
supplies include all of the following except one. Mark the correct answer: -
A. Permanent transfer or disposal of assets
B. Supply between distinct or related persons
C. Supply between principal and agent and Supply involving Import of Services
D. Supply involving export of goods and services

43. …… persons under GST means persons who are under influence of one-another like
members of the same family.
A. Related
B. Distinct
C. Influential
D. Persuasive

44. Related persons include all but not one of the following. Mark the correct answer.
A. Directors of each other’s business
B. Legally recognised partners
C. Employer and Employee
D. Any third person holding 10% shares of both the companies

45. Related persons include all but not one of the following. Mark the correct answer.
A. Directors of each other’s business
B. Legally recognised partners
C. Employer and Employee
D. Any third person holding more than 25% shares of both the companies
E. Both are friends with each other however they do not control each other’s actions
46. Transactions between headquarters and branches of an establishment and stock
transfers and branch transfers are known as transactions between …... persons.
A. Related
B. Distinct
C. Influential
D. Persuasive

47. …. Supply means a supply made by a taxable person to a recipient which comprises of
two or more taxable supplies of goods or services or both, or any combination thereof
that are naturally bundled and supplied in conjunction with each other in the ordinary
course of business, one of which is a principal supply.
A. Exempt
B. Continuous
C. Composite
D. Inter-State Supply

48. Supply of goods or services which constitutes the predominant element of a composite
supply is called
A. Common Supply
B. Principal Supply
C. Continuous Supply
D. Mixed Supply

49. …….Supply means two or more individual supplies of goods or services or any
combination thereof made in conjunction with each other by a taxable person for a
single price where such supply does not constitute a composite supply.
A. Exempt
B. Mixed
C. Intra-State Supply
D. Inter-State Supply

50. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is
A. Exempt
B. Mixed
C. Intra-State Supply
D. Inter-State Supply

51. Goods are packed and transported with insurance, packing materials, transport and
insurance. This is a case of
A. Exempt
B. Continuous
C. Composite
D. Inter-State Supply

52. RK (Delhi) supplies goods to AB in Delhi. Determine the kind of supply and the
applicable tax.
A. Inter-State Supply, IGST
B. Intra-State Supply, CGST and SGST
C. Intra-State Supply, IGST
D. Inter-State Supply, CGST AND SGST
53. RK(Delhi) supplies goods to XY in Mumbai. Determine the kind of supply and the
applicable tax.
A. Inter-State Supply, IGST
B. Intra-State Supply, CGST and SGST
C. Intra-State Supply, IGST
D. Inter-State Supply, CGST AND SGST

54. Activities or transactions which are neither supply of goods nor supply of services that
are covered under negative list are covered under Schedule …. of the GST act.
A. I
B. II
C. III
D. IV

55. …. means receivers of goods or services are liable to pay the GST instead of suppliers.
A. Forward Charge Mechanism
B. Ordinary Mechanism
C. Routine Mechanism
D. Reverse Charge Mechanism

56. ……. is a simple and easy scheme under GST which can be opted by the small
taxpayers whose aggregate turnover of the preceding year is less than Rs.1.5 Crore
which helps them to get rid of tedious GST formalities and pay GST at a fixed rate of
turnover.
A. Payment Scheme
B. Turnover Scheme
C. Aggregate Scheme
D. Composition Scheme

57. First announcement for introduction of GST arose in

A. 2004
B. 2005
C. 2006
D. 2007

58. GST is a ____________ based tax on consumption of goods and services.

A. Destination
B. Duration
C. Destiny
D. Development

59. Which of the following tax rate is not applicable under the GST?
A. 5
B. 12
C. 18
D. 25
 60. What kind of Tax is GST?
A. Direct Tax
B. Indirect Tax
C. Depends on the type of goods and services
D. None of the above

ANSWER KEY

1 D 11 C 21 A 31 D 41 B 51 C
2 B 12 D 22 D 32 B 42 D 52 B
3 A 13 C 23 B 33 D 43 A 53 A
4 B 14 B 24 D 34 B 44 D 54 C
5 A 15 C 25 A 35 B 45 E 55 D
6 D 16 C 26 D 36 C 46 B 56 D
7 C 17 D 27 C 37 D 47 C 57 C
8 C 18 D 28 B 38 A 48 B 58 A
9 B 19 A 29 D 39 D 49 B 59 D
10 C 20 A 30 C 40 A 50 B 60 B