topic supply under gst

Topic -
Supply Under GST

1. Lease or letting out of the building is treated as supply of services if such leasing or letting is

(a) For residential purposes

(b) For business purposes

(d) Either wholly or partly for business or commerce

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2. “Supply” includes import of services, if such import of services

(a) Is for a consideration

(b) Is for a consideration or not

(d) Is for a consideration and whether or not in the course or furtherance of business

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3. Import of services by a taxable person from a related person or from any of his other establishments outside India shall be treated as supply

(a) If such import of services is for a consideration

(b) Even if such import of services is without consideration

(d) Even if such import of services is without consideration and it may or may not be in the course or furtherance of business

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4. Which of the following activities is treated as a supply of services under GST law?

(a) Transfer of right in goods/undivided share in goods without transfer of title in goods

(b) Transfer of title in goods

(d) All of the above

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5. Any job-work carried out by a job-worker on another person’s goods shall be treated as

(a) Supply of goods

(b) Supply of services

(d) Supply of services whether the job-work is to be carried out by a job-worker with or without any material

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6. Which of the following activities shall be treated neither as a supply of goods nor a supply of services?

(a) Services by an employee to the employer in the course of or in relation to his employment

(b) Services by any court or tribunal established under any law for the time being in force

(d) All of the above

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7. Which of the following activities shall be treated neither as a supply of goods nor a supply of services?

(a) Sale of land and building

(b) Lease of land

(d) All of the above

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8. Activities which are to be treated as “supply” even if made without consideration are specified in

(a) Schedule I of CGST Act

(b) Schedule II of CGST Act

(d) All of the above

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9. Which of the following supplies are naturally bundled?

(a) Rent deed executed for renting of two different floors of a building - one for residential and another for commercial purpose to same person

(b) Pack of tie, belt and scarf

(d) None of the above

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10. Supply comprising of two or more supplies one of which is a principal supply which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, shall be taxable at the rate applicable to

(a) Each supply separately

(b) That particular supply which attracts the highest rate of tax

(d) None of the above

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11. 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 shall be taxable at the rate applicable to

(a) Each supply separately

(b) That particular supply which attracts the highest rate of tax

(d) None of the above

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12. Which of the following is/are the essential elements of a mixed supply?

(a) Supply is made by a taxable person to a recipient

(b) Supply consists of two or more individual supplies of goods or services or both or any combination thereof but it is not naturally bundled

(d) All of the above

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13. Which of the following is/are the essential elements of a composite supply?

(a) Supply is made by a taxable person to a recipient

(b) Supply consists of two or more taxable supplies of goods or services or both or any combination thereof which are naturally bundled and supplied in the ordinary course of business

(d) All of the above

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14. Which of the following is not a supply as per Section 7 of CGST Act?

(a) Management consultancy services not in the course or furtherance of business

(b) Import of service for consideration not in the course or furtherance of business

(d) None of the above

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15. Transfer of right in goods or of undivided share in goods without transfer of title thereof is treated as

(a) Supply of goods

(b) Supply of services

(d) Partly supply of goods and partly supply of services

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16.

(a) (i) & (iii)

(b) (ii) & (iv)

(d) (iii) & (iv)

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17. A customer purchases a printer and pays the supplier by exchanging his used computer for printer. FMV of the used computer is `12,000. This transaction is

(a) Supply since it is a barter and covered u/s 7(1)(a)

(b) Supply since it is a sale and covered u/s 7(1)(a)

(d) Supply since it is an exchange and covered u/s 7(1)(a)

None

18. A trader exchanged a new car for `2L cash and a used car having FMV of `10L. This transaction is

(a) Supply since it is a barter and covered u/s 7(1)(a)

(b) Supply since it is a sale and covered u/s 7(1)(a)

(d) Supply since it is an exchange and covered u/s 7(1)(a)

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19. Mr A is a salaried employee in A Ltd. He sells his second hand cycle for consideration of `2,000. Whether this transaction shall be deemed to be a supply u/s 7(1)(a)?

(a) Not a supply since this transaction is not in the course or furtherance of business

(b) It is a supply since this transaction is in the course or furtherance of business

(d) None of the above

None

20. Mr A is a salaried employee in A Ltd. He has availed the services of an foreign architect for consideration for his house. Which of the following statements is correct?

(a) Such supply of service is not in the course or furtherance of any business in hands of Mr A. But it will constitute supply as per Section 7(1)(b).

(b) Such supply of service is not in the course or furtherance of any business in hands of Mr A and it will not constitute supply as per Section 7(1)(b)

(d) None of the above

None

21.

(a) (i), (ii), (iii)

(b) (i), (ii), (v)

(d) Only (iii) and (iv)

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22. Motor car purchased (ITC not availed being not admissible) subsequent, disposed off without consideration is

(a) Covered under the scope of supply

(b) Not a supply

(d) Liable to excise duty

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23.

(a) (i)

(b) (ii)

(d) (i), (ii) and (iii)

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24. Which of the following statements is correct?

(a) ABC Associates receives legal consultancy services from its head office. The head office provides such services free of cost to ABC Associates. Since the head office and ABC Associates are related persons, services received by ABC Associates will qualify as supply even though the head office has not charged anything from it.

(b) Gift upto `50,000 in an year to an employee shall not be treated as supply

(d) None of the above

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25.

(a) 1), 3) and 4)

(b) 2), 3) and 4)

(d) 1) and 2)

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26. Husain, a famous painter sends his latest art work to Indian Classic Gallery for exhibition. However, no consideration has flown from Indian Classic Gallery to Husain when the art work is sent to the gallery for exhibition. Husain is in dilemma whether GST is payable on said transfer of art work. What would be your advice on the same?

(a) GST is payable as the same amounts to taxable supply of goods

(b) GST is payable as the same amounts to taxable supply of services.

(d) GST is not payable as the same does not amount to supply at all.

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27. Which of the following is not a composite supply?

(a) Supply of charger and mobile phone

(b) Supply of battery and inverter

(d) None of the above

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28. Which of the following is not a supply of services?

(a) Renting of commercial office complex

(b) Payment of non-compete fee by an ex-employee to his previous employer

(d) Permanent transfer of business assets on which ITC is availed

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29. Mr Arun, a registered supplier, is engaged in selling sweets. The sweets are sold in boxes and the cost of each sweet box is ₹500. In order to increase his turnover, he purchased certain juice cans @ ₹20 each and added juice can with every sweet box as a gift. A sweet box along with free juice can is sold at ₹500 each. Which of the statements is correct?

(a) He is liable to pay tax on ₹520 and eligible to claim input tax credit on purchase of juice cans.

(b) He is liable to pay tax on ₹500 and not eligible to claim input tax credit on purchase of juice cans

(d) Either (a) or (b)

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30. Assuming that all the activities given below are undertaken for a consideration, state which of the following is not a supply of service:

(a) Renting of commercial office complex

(b) An employee agreeing to not work for the competitor organization after leaving the current employment

(d) Provision of services by an employee to the employer in the course of employment

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31. Which of the following transactions is not considered as supply under GST law?

(a) Stock transferred from one establishment in Delhi to another establishment in Gurgaon, Haryana registered under same PAN.

(b) CA Ram supplies accounting services to CA Radha in lieu of taxation services received from CA Radha.

(d) Mr A sells a flat to Mr B ) Date of completion certificate - 31/01/20XX ) Date of agreement with buyer - 01/02/20XX ) Consideration received - 05/02/20XX

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32. The term ‘goods’, as defined u/s 2(52) of the CGST Act, 2017, does not include:

(a) Grass

(b) Money and securities

(d) Growing crops

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33. Mr Avishkar is a painter registered under GST in Delhi. He sends his artwork for exhibition in Mumbai. At what point of time, supply is considered to have been made under GST?

(a) When painting is completed.

(b) When painting is sent for exhibition in Mumbai

(d) When painting is purchased by one of the visitors in the exhibition.

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34.. Which of the following is not covered under Schedule III of CGST Act, 2017?

(a) Director’s monthly salary under employment agreement

(b) Sitting fees to independent directors for attending AGMs

(c) Payment to employee for providing broking services to the employer for purchase of commercial property. Such services do not form part of the employment contract entered into by the employer with the employee.

(d) Both (b) and (c)

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35. ABC Ltd is a registered pharmaceutical company. The company invented one drug for instant cure of cancer. They supplied free samples of this medicine to various doctors. What will be the tax treatment of these free samples under GST?

(a) ABC Ltd is liable to pay tax on supply of free samples and eligible to claim input tax credit

(b) ABC Ltd is not liable to pay tax on supply of free samples but eligible to claim input tax credit

(d) ABC Ltd is liable to pay tax on supply of free samples but not eligible to claim input tax credit

None

36. Pradeep Traders, registered in Haryana, sold goods inter-State for ₹2,05,000 to Balram Pvt Ltd registered in Uttar Pradesh (GST is leviable @ 5% on said goods). As per the terms of sales contract, Pradeep Traders has to deliver the goods at the factory of Balram Pvt Ltd. For this purpose, Pradeep Traders has charged freight of ₹2,400 from Balram Pvt Ltd. GST is leviable @ 12% on freight. What would be the net GST liability to be paid in cash in this case assuming that the amounts given herein are exclusive of GST?

(a) IGST – ₹37,332

(b) IGST – ₹10,370

(d) CGST – ₹5,185 and SGST – ₹5,185

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37.

(a) (i) and (iii)

(b) (iii) and (iv)

(d) (ii) and (iii)

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38.

(a) (i)

(b) (iii)

(d) (i), (ii) and (iii)

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39.

(a) (i)

(b) (ii)

(d) Both (i) and (ii)

None

Time's up

Topic - Supply Under GST

Topic -
Supply Under GST