topic composition scheme

1. For which of the following goods, the supplier of goods is not allowed to opt for composition scheme u/s 10(1) & 10(2) of the CGST Act?

(a) Alcoholic liquor for human consumption

(b) Petroleum crude

(d) All of the above

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2. Which of the following statement is true for a composition tax payer?

(a) He can avail ITC on capital goods but not on inputs

(b) He can avail ITC on inputs but not on capital goods

(d) ITC is available on inward supplies if tax is mentioned separately in the invoice.

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3. Ms Sonakshi, a registered supplier of Meghalaya wants to opt for composition levy as prescribed u/s 10(1) & 10(2) of the CGST Act. The turnover limit for composition levy is

(a) ₹50 lakhs

(b) ₹75 lakhs

(d) ₹1.5 crore

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4. The rate prescribed for payment of GST in case of a registered person being a restaurant who has opted for composition scheme u/s 10(1) & 10(2) of the CGST Act is

(a) 1% of the total turnover as CGST and 1% of the total turnover as SGST/UTGST

(b) 0.5% of the total turnover as CGST and 0.5% of the total turnover as SGST/UTGST

(d) None of the above

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5. The rate prescribed for payment of GST in case of a registered person other than a manufacturer or restaurant who has opted for composition scheme u/s 10(1) & 10(2) of the CGST Act is

(a) 1% of the total turnover as CGST and 1% of the total turnover as SGST/UTGST

(b) 0.5% of the total turnover as CGST and 0.5% of the total turnover as SGST/UTGST

(d) 0.5% of the taxable turnover as CGST and 0.5% of the taxable turnover as SGST/UTGST

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6. For which of the following goods, the manufacturer is not allowed to opt for composition scheme u/s 10(1) & 10(2) of the CGST Act?

(a) Ice-cream and other edible ice, whether or not containing cocoa

(b) Pan masala

(d) All of the above

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7. Which of the following persons can opt for composition scheme u/s 10(1) & 10(2) of CGST Act?

(a) Person making any supply of goods which are not leviable to tax under GST law

(b) Person making any inter-state outward supplies of goods

(d) None of the above

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8. Can a registered person having two places of business under same PAN opt for composition scheme only for one out of his two places of business?

(a) Yes

(b) No

(d) Yes, subject to prior approval of the concerned SG/UT

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9. Can a person who opts for composition scheme collect any tax from the recipient of goods?

(a) Yes

(b) No

(d) Yes, provided the recipient is unregistered

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10. Is a person who opts for composition scheme eligible for input tax credit?

(a) Yes

(b) No

(d) Yes, subject to prior approval of the concerned SG/UT

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11. What is the threshold limit of turnover in the preceding FY for opting to pay tax under composition scheme u/s 10(1) & 10(2) of the CGST Act?

(a) ₹75 lacs

(b) ₹1 crore

(d) ₹75 lacs in case of 8 states stated specifically and `1.5 crore for other states

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12. The rate prescribed for payment of GST in case of a registered person being a manufacturer who has opted for composition scheme u/s 10(1) & 10(2) of the CGST Act is

(a) 1% of the total turnover as CGST and 1% of the total turnover as SGST/UTGST

(b) 0.5% of the total turnover as CGST and 0.5% of the total turnover as SGST/UTGST

(d) None of the above

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13. Composition scheme provides _______ rate of tax and filling of ________ instead of ________

(a) Concessional, quarterly statement, monthly return

(b) Higher, quarterly statement, monthly return

(d) None of the above

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14. XYZ Ltd is supplier of goods as well as services. It can opt for composition scheme u/s 10(1) & 10(2) of the CGST Act in respect of ___________

(a) Supply of goods

(b) Supply of services

(c) Supply of goods as well as services provided the value of services does not exceed the higher of 10% of turnover of preceding FY or ₹5L

(d) Neither supply of goods nor supply of service

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15. Which of the following persons is not eligible for opting composition scheme u/s 10(1) & 10(2) of CGST Act?

(a) M/s ABC, a firm selling garments in Ahmedabad having annual turnover of ₹78 lakhs

(b) A startup company operating restaurant in Delhi having annual turnover of ₹98 lakhs

(d) A trader selling grocery items in Orissa having an annual turnover of ₹95 lakhs

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16. Which of the following persons is not eligible for composition scheme u/s 10(1) & 10(2) of the CGST Act even though their aggregate turnover does not exceed ₹1.5 crore in preceding FY, in Uttar Pradesh?

(a) A manufacturer of any goods other than icecream, pan masala, aerated waters, tobacco and other manufactured tobacco substitutes

(b) A person supplying restaurant services

(d) A person supplying restaurant services and warehousing of rice

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17. Which of the following persons is not eligible for composition levy u/s 10(1) & 10(2) of the CGST Act, 2017 even though their aggregate turnover does not exceed ₹1.5 crore in preceding FY, in UP?

(a) A person supplying restaurant services

(b) A person supplying restaurant services and earning bank interest

(d) A person engaged in repairing of electronic items

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18. C & Co, a registered supplier in Delhi, opted for composition levy u/s 10(1) & 10(2) of the CGST Act, 2017. It sold goods in the fourth quarter of a FY for ₹15,00,000 (exclusive of GST). The applicable GST rate on these goods is 12%. C & Co purchased goods from Ramesh & Co, registered in Delhi, for `9,55,000 on which Ramesh & Co had charged CGST of `57,300 and SGST of ₹57,300. C & Co had also purchased goods from E & Co, registered in Haryana, for ₹2,46,000 on which E & Co had charged IGST of ₹29,520. GST liability of C & Co for the fourth quarter of the financial year is:

(a) CGST ₹7,500 & SGST ₹7,500

(b) CGST ₹3,180 & SGST ₹32,700

(d) CGST Nil and SGST Nil

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Topic - Composition Scheme

Topic -
Composition Scheme