CA Final Indirect Tax Laws Quiz ( ICAI MCQ 1-10)

1. Aircool Ltd., a supplier of air conditioners, is registered under GST in the State of Maharashtra. It has a policy to gift an air conditioner to its employees [residing in Gujarat] at the end of a financial year in terms of the employment contract. The company installs such air conditioners at the residence of the employees. During the current financial year, the company gifted its employees 150 air conditioners and got the air conditioners installed at the residence of these employees. The total open market value of such air conditioners is ₹ 52.50 lakh (excluding GST). The tax rate on such air conditioners is 28% (14% CGST, 14% SGST and 28% IGST). Compute the GST liability of Aircool Ltd., if any.

2. Mr. James Stewart is registered under GST in the State of Maharashtra. He sells footwear to his customers locally within the same State. He has been appointed as an agent by Toto Shoes Ltd., a company registered under GST in the State of Karnataka. During a financial year, Toto Shoes Ltd., sends taxable goods worth ₹ 5.00 crore from its Bengaluru store to Mr. James Stewart who sells such goods for ₹ 5.00 crore by raising invoices using the GSTIN of Toto Shoes Ltd. Mr. James Stewart receives a commission of ₹ 60.00 lakh from Toto Shoes (P) Ltd., during the said financial year. Compute the value of supply of Toto Shoes (P) Ltd. and Mr. James Stewart for the financial year assuming that amounts given above are exclusive of GST, wherever applicable.

3. Which of the following persons can opt for the composition scheme under sub-sections (1) and (2) of section 10 of the CGST Act, 2017, in the State of Delhi? 1. Registered person whose aggregate turnover in the preceding financial year did not exceed ₹ 75 lakh. 2. Registered person whose aggregate turnover in the preceding financial year did not exceed ₹ 1.5 crore. 3. A person engaged in manufacture of pan masala, tobacco and manufactured tobacco substitutes. 4. A person engaged in the manufacture of ice cream, other edible ice, whether or not containing cocoa. 5. A person engaged exclusively in providing restaurant service. 6. A person engaged exclusively in supply of medicines.

4. State which of the following statements is incorrect: (i) An agent, supplying taxable goods on behalf of principal, where invoice is issued in the name of principal, is required to get compulsorily registered under GST. (ii) Persons who are required to deduct tax under section 51 of the CGST Act, 2017, whether or not separately registered under CGST Act, are compulsory required to get registered under GST without any threshold limit. (iii) Every person supplying online information and database access or retrieval services from a place outside India to a registered person in India is compulsory required to get registered under GST without any threshold limit. (iv) Persons who supply services, other than supplies specified under sub-section (5) of section 9 of the CGST Act, 2017, through such electronic commerce operator who is required to collect tax at source under section 52 of the CGST Act, 2017, are compulsory required to get registered under GST without any threshold limit. Choose the most appropriate option.

5. Mr. Lal, a registered person under GST, was the proprietor of M/s Spiceton Restaurant. He died and left behind his wife and son, on 15th August. His son – Mr. Pal – wants to continue the business of the deceased father. The GST consultant of M/s Spiceton Restaurant gives advice to Mr. Pal as to how he can continue the business of his deceased father. Which of the following options is correct in accordance with the provisions of GST law?

6. M/s Raman Plastics is a manufacturer of plastic toys. It is registered under GST in Shimla, Himachal Pradesh. It furnishes the return on monthly basis. It procures its raw materials from Punjab. During the month of April 2021, it purchased material of ₹ 35.00 lakh and paid IGST thereon amounting to ₹ 6.30 lakh. It supplied 30% of its production in the State of Jammu and Kashmir, whereas the 70% of its production was supplied taxable @ 0.1% to a merchant exporter during the month of April 2021. The returns for the month of April 2021 were duly filed in time, i.e. within the due date of 20th May, 2021. The last date upto which the taxpayer can claim refund of input tax credit on account of inverted duty structure is:

7. Jolly Electronics (P) Ltd., an authorized dealer of GG Micro Ltd., is located and registered under GST in Lucknow, Uttar Pradesh. It has sold following items to Mr. Rakesh (a consumer): Product Refrigerator (500 litres) taxable @ 18% 40,000 Stabilizer for refrigerator taxable @ 12% 5,000 LED television (42 inches) taxable @ 12% 30,000 Split air conditioner (2 Tons) taxable @ 28% 35,000 Stabilizer for air conditioner taxable @12%. 5,000 Total value 1,15,000 Jolly Electronics (P) Ltd. has given a single invoice indicating price of each item separately to Mr. Rakesh. Mr. Rakesh has given a single cheque of ₹ 1,00,000 for all the items as a composite discounted price. State the type of supply and the tax rate applicable on the same.

8. Radhika Travels (P) Ltd. purchased a bus chassis from Jyoti Motors Ltd. for a consideration of ₹ 80.00 lakh on 1st August. Radhika Travels (P) Ltd. sent the bus chassis for body building to M/s Hanumant Fabricators and paid in advance the total consideration of ₹ 25.00 lakh, received by M/s Hanumant Fabricators on 10th August. M/s Hanumant Fabricators, after completing the bus body, informed Radhika Travels (P) Ltd., for inspection of the work done on 1st September. Radhika Travels (P) Ltd. visited the workshop of M/s Hanumant Fabricators on 7th September and confirmed that the bus body was in accordance with the terms of the contract. M/s Hanumant Fabricators raised an invoice of ₹ 25.00 lakh on 15th September and supplied chassis along with the bus body so constructed, along with the invoice on 16th September. State the time of supply in this case for supply made by M/s Hanumant Fabricators, out of the choices given below:

9. Banke Bihari (Pedewala) owns a famous sweets shop located and registered under GST in Mathura, Uttar Pradesh. He received an order for 200 kg of sweets on 2nd May from Ghoomghoom Travels (P) Ltd., located in same locality of Mathura and registered under GST, for a total consideration of ₹ 1,00,000. Complete order of sweets was delivered to Ghoomghoom Travels (P) Ltd. on 5th May but without invoice, as accountant of Mr. Banke Bihari was on leave on that day. However, the invoice was raised for the same on 6th May, when the accountant joined the office after leave. Payment in full was made on 7th May. Determine the time of supply of goods in this case.

10. M/s Dhoom Furniture Mart, located and registered under GST in the State of Chhattisgarh, sells furniture from its showroom to M/s Lucky Dhaba (located and registered under GST in the State of Jharkhand). M/s Lucky Dhaba requested to deliver the furniture to Mr. Pyare Lal at Patna, Bihar. M/s Dhoom Furniture Mart sends the furniture with a proper e-way bill to Patna through a transporter who made the delivery to Mr. Pyare Lal. Determine the place of supply of furniture sold by M/s Dhoom Furniture Mart to M/s Lucky Dhaba in the above case.

Leave a Reply

Your email address will not be published. Required fields are marked *