Understanding GST Concepts

1. Which of the following is NOT a taxable supply under GST? A) Sale of goods B) Sale of used personal property C) Sale of land D) Sale of securities

• Sale of real estate

• Sale of business assets

• D) Sale of securities

• Sale of collectibles

2. Which of the following statements is true regarding GST composition scheme? A) It is available only for businesses dealing with goods. B) It is mandatory for businesses with an annual turnover exceeding ₹2 crore. C) It allows a taxpayer to pay tax based on a percentage of turnover. D) It is available for businesses involved in both goods and services.

• D) It allows a taxpayer to pay tax based on fixed monthly rates.

• C) It allows a taxpayer to pay tax based on a percentage of turnover.

• B) It is optional for businesses with an annual turnover exceeding ₹2 crore.

• A) It is available for both goods and services only.

3. The time of supply of goods, if the supply involves payment of advance, is determined by: A) Date of invoice B) Date of receipt of advance C) Date of delivery of goods D) Date of payment of tax

• B) Date of receipt of advance

• A) Date of invoice

• D) Date of payment of tax

• C) Date of delivery of goods

4. Which of the following tax rates is applicable under the GST for the supply of most goods and services in India? A) 10% B) 12% C) 18% D) 28%

• C) 18%

• 5%

• 20%

• 15%

5. Which of the following is the correct classification of a supply of service under GST? A) Supply of service includes only services provided B) Supply of service includes both goods and services C) Supply of service is exempt from tax D) Supply of service is only for government services

• D) Supply of service is only for government services

• A) Supply of service includes only services provided

• B) Supply of service includes both goods and services

• C) Supply of service is exempt from tax

6. Under GST, which of the following is considered a supply? A) Sale of goods B) Transfer of goods B) Import of services D) All of the above

• D) All of the above

• Lease of property

• Donation of goods

• Export of services

7. What is the threshold limit for GST registration for service providers? A) ₹10 lakh B) ₹20 lakh C) ₹30 lakh D) ₹40 lakh

• ₹5 lakh

• ₹25 lakh

• ₹15 lakh

• B) ₹20 lakh

8. Which of the following is NOT a benefit of the GST system? A) Simplified tax structure B) Increased compliance C) Higher tax rates D) Reduction in cascading effect

• C) Higher tax rates

• Increased revenue for the government

• Reduction in tax evasion

• Encouragement of small businesses

9. What is the GST rate for the supply of luxury goods? A) 5% B) 12% C) 18% D) 28%

• 10%

• 15%

• 20%

• D) 28%

10. Which of the following is a feature of the GST system? A) Dual tax structure B) Single tax structure C) No input tax credit D) Only state tax applicable

• No tax on services

• Flat tax rate

• Only federal tax applicable

• A) Dual tax structure