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MCQs
1 Introduction of GST
 MCQ’s
Q. 1. __________ was first country to adopt GST as government behind the introduction of the Goods
indirect system of taxation. & Service tax act?
(a) France (a) To bring uniformity of taxes in the country
(b) Germany (b) To increase the government revenue
(c) UK (c) To replace all indirect taxes
(d) India (d) All of the above
Ans:- a) France Ans:- (d) All of the above

Q. 2. The GST is recommended by the __________ on Q. [Link] article of the Constitution outlines the
implementation of the Fiscal Responsibility and composition and functions of the GST Council ?
Budget Management (FRBM) Act, 2003 (a) 270
(a) Kelkar Task Force (b) 279-A
(b) Chidambaram Task Force (c) 246-A
(c) Jaitely Task Force (d) 269-A
(d) None of the above Ans:- (c) 246-A
Ans:- a) Kelkar Task Force
Q. 10 GSTN is a -----------
Q 3:- What kind of tax can be transferred from one (a) Non-profit organisation
person to another? (b) Profit organisation
(a) Direct tax (c) None of the above
(b) Indirect tax (d) One Person company
(c) Both of the above Ans :- a) Non-profit organisation
(d) None of the above
Ans:- (b) Indirect tax Q 11:- Who of the following will be the members of the
GST Council?
Q 4:- What is the difference between a direct & an 1. Union Finance Minister
indirect tax? 2. Union Minister of State in charge of Revenue or
(a) Charge of levy Finance
(b) Nature of transfer 3. Chief Ministers of States
(c) Different collection pattern of tax (a) 1 & 3
(d) All of the above (b) 1 & 2
Ans:- (d) All of the above (c) 2 & 3
(d) All of the above
Q 5:- When did the GST act come into force? Ans:- (b) 1 & 2
(a) Year 2015
(b) Year 2016 Q 12:- Who amongst the following will be considered
(c) Year 2017 as the chairman of GST Council ?
(d) None of the above (a) Union Minister of State
Ans:- (c ) Year 2017 (b) Union Finance Minister
(c) Minister of state revenue
Q 6:- Which of the following constitutional amendment (d) Chief Minister of state
governs GST act? Ans:- (b) Union Finance Minister
(a) 101 st amendment,
(b) 122 nd amendment, Q 13:- Which of the following functions are performed
(c) 152 nd amendment by Goods & Service Network (GSTN)?
(d) 140 th amendment, (a) Facilitating registration
Ans:- (a) 101 st amendment (b) Computation & settlement of IGST
(c) Matching of tax payment details with banking
Q 7:- What kind of tax is GST called as..? network
(a) Consumption based tax (d) All of the above
(b) Movement based tax Ans:- (d) All of the above
(c) Destination based tax
(d) None of the above Q 14:- What does dual GST concept mean?
Ans:- (c) Destination based tax (a) Charging CGST & IGST
(b) Charging SGST & IGST
Q 8:- Which of the following is the main motive of the (c) Charging both CGST & SGST
 (d) None of the above the GST council
Ans:- (c) Charging both CGST & SGST
Q 22:- The proceeds of the GST Compensation Cess
Q 15:- What kinds of taxes are subsumed under GST? leviable under section 8 shall be distributed
(a) Central excise duty among States as and when collected.
(b) State VAT/Sales Tax a) Yes
(c) Central Sales Tax b) No
(d) Service Tax c)
(e) All of the above d)
Ans:- (e) All of the above Ans:- b) No

Q 16:- Which of the taxes are out of purview of GST? Q.23. If a state loses revenue because of abolition of
(a) Property tax & stamp duty central sales tax, Central Government will pay
(b) Additional duties of Custom (CVD & SAD) compensation in the form of GST compensation cess
(c) Excise duty on Alcohol for:
(d) Entertainment tax by local body (a) 1 year
(e) Only (a) & (c) (b) 3 years
Ans:- (e) Only (a) & (c) (c) 5 years
(d) 10 years.
Q 17 :- Which of the following good will not be covered Ans:- (c) 5 years
under the GST act?
(a) Cooking gas Q. 24. Which of the following statement is correct ?
(b) Liquor (A) GST is based on principle of ‘pay as you earn’.
(c) Petrol (B) GST is a destination based tax.
(d) All of the above (c) GST is technically paid by consumers but it is
Ans:- (b&c) liquor & Petrol actually funded by suppliers.
(D) All of the above
Q. 18:-.GST is levied on supply of all goods and
services except: Q.25 The term 'public interest' is ----------vague and
(a) Alcoholic liquor for human consumption uncertain.
(b) Tobacco a) Definitely
(c) Health care services b) not
(d) All of the above c) To an extent
Ans:- (a) Alcoholic liquor for human consumption d) Both (a) and (c) are correct
Ans:- b) Not
Q 19:- How many Companies are given permission to
act as GST Suvidha Providers? [Link] IGST revenue is to be apportioned to
a) 30 state?
b) 34 (a) No
c) 40 (b) Yes- apportioned to origin state
d) 20 (c) Yes- apportioned to destination state
Ans:- b) 34 (d) Discretion of Parliament
Ans:- Yes- apportioned to destination state
Q. 20:- The Authority shall consists of?
a) 1 Chairman & 1 Technical member Q. [Link] will legislate GST law?
b) 1 Chairman & 2 Technical members (a) State Legislature
c) 1 Chairman & 3 Technical members (b) Parliament
d) 1 Chairman & 4 Technical members (c) Both
Ans:- d) 1 Chairman & 4 Technical members (d) Depends upon nature of supply
Ans:- (a) State Legislature
Q 21:- Who will notify the rate of tax to be levied under
CGST? Q. [Link] GST law/Act extends to —
(a) Central government suo moto (a) All States (except the State of J&K)
(b) State government suo moto (b) All States as well as all Union territories
(c) GST council suo moto (c) All States (except the State of J&K) and All Union
(d) Central government as per recommendations of territories
the GST council (d) All States (except the State of Telangana) but
Ans:- (d) Central government as per recommendations of including Union territories
Ans:- (b) All States as well as all Union territories Q 36:- Which of the following supplies will be classified
as Inter-state supply?
Q. [Link] recommendation of the GST Council will be (a) Supply within same state
__________ . (b) Supply within same union territory
(a) Mandatory (c) Supply between two different states/ union
(b) Only Advisory Power territory
(c) Mandatory and sometimes Advisory (d) None of the above
(d) Mandatory on States only Ans:- (c) Supply between two different states/ union
Ans:- (d) Jammu & Kashmir territory

[Link] of the following states does not fall under Q 37:- What is Integrated Goods and Services Tax?
special category given under Article 279A of the (a)Tax imposed on import or export of goods and
Constitution services
(a) Himachal Pradesh (b)Tax imposed on value additions to exports
(b) Uttarakhand (c)Tax imposed on interstate trade
(c) Chhattisgarh (d)Tax on international trade
(d) Jammu & Kashmir Ans:- (a&c)
Ans:- (d) Jammu & Kashmir
Q. [Link] items which will be taxable both under
Q. [Link] and Services Tax (Compensation to the current Central Excise Law and GST even after
States) Act, 2017 is popularly known as ----------. the implementation of the GST Act.
a) GST CSA (a) Motor Spirit
b) GST Compensation Cess Act (b) Alcoholic Liquor for Human Consumption
c) GST Cess Act (c) Tobacco and Tobacco Products
d) GST Compensation Act (d) Natural Gas
Ans:- b) GST Compensation Cess Act Ans:- (c) Tobacco and Tobacco Products

Q 32. GST is levied on which of the following? Q. 39. What does “I” stand for IGST or CT for CGST or
(a) Sale of goods Stand for SGST ?
(b) Manufacture of goods (a) International , Central, State
(c) Provision of services (b) Integrated, Central, State
(d) Supply of goods/ services (c) Integral , Central, State
Ans:- (d) Supply of goods/ services (d) Intra, Central, State
Ans:- (c) Integral , Central, State
Q 33:- Which of the following would attract levy of
CGST & SGST? Q 40:- ITC of CGST can be utilised for payment of
(a) Inter-state supplies (a) Only CGST
(b) Intra-state supplies (b) Only SGST
(c) Any of the above (c) 1st CGST & then IGST
(d) None of the above (d) 1st SGST & then IGST
Ans:- (b) Intra-state supplies Ans:- (c) 1st CGST & then IGST

Q 34:- What are the taxes levied on an intra-state Q 41:- ITC of SGST can be utilised for payment of
supply? (a) Only CGST
(a) CGST (b) Only SGST
(b) SGST (c) 1st CGST & then IGST
(c) CGST & SGST (d) 1st SGST & then IGST
(d) IGST Ans:- (d) 1st SGST & then IGST
Ans:- (c) CGST & SGST
Q 42:- ITC of IGST can be utilised for payment of
Q. 35. If any supply made by a trader from Delhi to (a) Only CGST
another trader in Delhi, the supply will be subject (b) Only SGST
to: (c) Only CGST & SGST
(a) CGST and SGST (d) 1st IGST 2nd CGST & then SGST
(b) CGST and UTGST Ans:- (d) 1st IGST 2nd CGST & then SGST
(c) IGST
(d) SGST and UTGST. Q. 43. For purposes of GST law, the territory of “India”
Ans:- (b) CGST and UTGST shall be taken to cover up following:
 (a) Sea Area upto 12 nautical miles from base line c. Both (a) and (b)
(b) Sea Area upto 200 nautical miles from base line d. None of the above
(c) Air space above its territory and territorial waters Ans:- a. Any other officer who is sub-ordinate to him
(d) All of the above
Ans:- (D) All of the above

Q.44 . Which of the following type of GST is payable on

all Inter-State supply of goods and / or services ?
(a) State GST (SGST)
(b) State GST (SGST) & Integrated GST (IGST)
(c) Central GST (CGST) & integrated GST (IGST)
(d) Integrated GST (IGST)
Ans:- (d) Integrated GST (IGST)

Q.45. Which of the following is not the role of GSTN in

GST regime?
(a) Facilitating registration, forwarding return to Central
and State authorities.
(b) Computation and Settlement of IGST, matching tax
payment details with banking network
(c) Providing platform for litigation
(d) Providing various MIS reports to Central and State
Governments, providing analysis on tax payers
profile, running the matching engine, reversal and
reclaim of Input tax credit
Ans:- (c) Providing platform for litigation

Q.46. Officers under SGST Act shall be deemed to be

the officers appointed under:
(a) Income tax Act, 1961
(b) Customs Act, 1962
(c) CGST Act
(d) None of the Above
Ans:- (c) CGST Act

Q. 47. Officers under which Act shall be deemed to be

the officers appointed under the provisions of
CGST Act:
a. Central Excise Act, 1944
b. Central Sales Tax Act, 1956
c. Delhi Value Added Tax Act, 2004
d. Customs Act, 1962
Ans:- a. Central Excise Act, 1944

Q. 48. The officers appointed under which of the

following Acts are authorised to be the proper
officers for the purposes of the CGST Act, 2017:
a. State Goods and Services Tax Act
b. Union Territory Goods and Services Tax Act
c. Both (a) and (b)
d. None of the above
Ans:- c. Both (a) and (b)

Q. 49. The Commissioner may, subject to such

conditions and limitations as may be specified in
this behalf by him, delegate his powers to:
a. Any other officer who is sub-ordinate to him
b. Any other officer who is senior to him