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GST - FUNDAMENTALS QUIZ 2

Total questions: 25

Worksheet time: 11mins

Name
Class
Date
1.

A US consultant provides online design services to a company registered in Kerala. The company pays in USD.
What is the place of supply?

a)

USA

b)

Kerala

c)

Location of payment gateway

d)

India’s customs port of entry

2.

Select an item that does not attract GST?

a)

Milk

b)

Soft drink

c)

Mobile phones

d)

Washing machine

3.

If the price is not the sole consideration for a supply, the value shall be determined on:

a)

open market value

b)

cost price

c)

purchase price of similar goods

d)

supplier’s discretion

4.

GST is a destination based ............. tax

a)

origin

b)

consumption

c)

manufacturing

d)

direct

5.

An event organizer in Delhi arranges a show in Mumbai for a client based in Bengaluru. The place of supply is:

a)

Delhi

b)

Mumbai

c)

Bengaluru

d)

Based on choice of recipient

6.

For services related to immovable property located in India, the place of supply is:

a)

Location of the recipient

b)

Location of the supplier

c)

Location of the immovable property

d)

Location where contract is signed

7.

A company is selling goods to a customer within the state. Which GST component will be charged on the invoice?

a)

SGST

b)

CGST

c)

SGST & CGST

d)

IGST

8.

Which of the following conditions must be satisfied to avail ITC?

a)

Possession of a valid tax invoice

b)

Receipt of goods or services

c)

Supplier has paid tax to government

d)

All of the above

9.

Which among the following is NOT a Union Territory?

a)

Chandigarh

b)

Ladakh

c)

Puducherry

d)

Sikkim

10.

Input Tax Credit is not available for:

a)

Goods used for personal consumption

b)

Goods purchased for further taxable supply

c)

Inputs used in the course of business

d)

Capital goods used for business

11.

What is the primary purpose of GST?

a)

To increase tax revenue

b)

To simplify the tax structure

c)

To bring uniformity in prices

d)

All of these

12.

Which of the following transactions is subject to IGST?

a)

Goods sold within the same state

b)

Goods sold from one state to another

c)

Services provided within the same state

d)

None of the above

13.

Which tax is NOT subsumed under GST?

a)

Value Added Tax

b)

Central Excise Duty

c)

Electricity Duty

d)

CST

14.

GST is considered as ................... Constitution Amendment Act

a)

101st

b)

129th

c)

119th

d)

109th

15.

What is the majority required for passing decisions by the GST Council

a)

3/4

b)

2/4

c)

1/3

d)

2/3

16.

Which of the following is not a function of GST Network?

a)

Maintaining taxpayer profiles

b)

Determining GST rates for goods and services

c)

Facilitating e-filing of returns

d)

Handling registration applications

17.

A hotel offers a “Summer Package” that includes room stay, complimentary breakfast, and local sightseeing for a single price.
This will be treated as:

a)

Mixed supply, highest rate applies

b)

Composite supply, principal supply is accommodation

c)

Exempt supply

d)

Two separate supplies

18.

A supplier received an advance on 28 March 2025 and issued an invoice on 3 April 2025.
The time of supply is:

a)

28 March 2025

b)

3 April 2025

c)

Date of delivery of goods

d)

Either date at supplier’s option

19.

Which of the following is not eligible for ITC even if used for business?

a)

Works contract service for construction of an office building

b)

Motor vehicle for transport of goods

c)

Security services for factory premises

d)

Raw material used in manufacturing

20.

Catering services are provided on a flight from Kochi to Delhi with a stop at Mumbai.
Place of supply is:

a)

Kochi (place of embarkation)

b)

Delhi (final destination)

c)

Mumbai (mid-stop)

d)

Location of catering company

21.

A Mumbai-based company buys software consulting from a developer in Singapore. Payment is in USD.
Who pays the GST?

a)

Singapore developer

b)

Indian company under reverse charge

c)

RBI as remitter

d)

No GST on such imports

22.

A manufacturer purchases capital goods on which depreciation is claimed on the GST component.
ITC eligibility is:

a)

Full ITC

b)

Partial ITC

c)

No ITC

d)

ITC only after asset disposal

23.

Goods are supplied to a related party for ₹1,00,000 though the open-market value is ₹1,40,000.
Taxable value is:

a)

₹1,00,000

b)

Value decided by recipient

c)

Average of both

d)

₹1,40,000

24.

Which statement is correct for an ISD?

a)

Can distribute both goods and service credit

b)

Distributes ITC of services to units having same PAN

c)

Common billing by the HO

d)

b and c

25.

A dealer distributes credit to other entities under same PAN.
Which formula is applied for ITC on inputs?

a)


Actual usage estimate by auditor

b)

50% of total ITC

c)

Taxable turnover ÷ total turnover × common credit

d)

Turnover of exempt ÷ total turnover × common credit