WorksheetsGST - New 120 Quiz
Total questions: 120
Worksheet time: 3600secs
"Principal supply" under Section 2(90) refers to:
The first supply made in a financial year
The main supply in a composite supply to which other supplies are ancillary
Supply made by the principal manufacturer
Supply of principal raw material
Under Section 2(93), who is considered the "recipient" of supply of goods or services?
The supplier
The person who pays for the supply
The person who receives the goods/services and is liable to pay the consideration
Only registered dealers
In the case of direct taxes, the payer and the sufferer of the tax are:
Different persons
The same person
Only businesses
Only government entities
Which of the following is an example of a direct tax?
Goods and Services Tax (GST)
Income Tax
Value Added Tax (VAT)
Customs Duty
Indirect taxes are primarily based on:
Income
Wealth
Supply of goods and services
Capital gains
Who is responsible for collecting and managing direct taxes in India?
Central Board of Indirect Taxes and Customs (CBIC)
Central Board of Direct Taxes (CBDT)
Reserve Bank of India (RBI)
Securities and Exchange Board of India (SEBI)
Which of the following statements about indirect taxes is true?
The tax burden is on the individual paying the tax
The payer of the tax is not the ultimate bearer
The entire revenue goes to the Central Government only
Indirect taxes are based on income
What is a key characteristic of direct taxes?
They are paid voluntarily
They are supply-based taxes
They have different rates for different persons
They are collected at the point of sale
Which organization manages indirect taxes in India?
Central Board of Direct Taxes (CBDT)
Central Board of Indirect Taxes and Customs (CBIC)
Securities and Exchange Board of India (SEBI)
National Stock Exchange (NSE)
The revenue from indirect taxes is shared between:
Only the State Governments
Only the Central Government
Both the Central and State Governments
Private companies
Which of the following is NOT a direct tax?
Corporate Tax
Property Tax
Excise Duty
Capital Gains Tax
What is the key difference between direct and indirect taxes?
Direct taxes are levied on consumption, whereas indirect taxes are levied on income
Indirect taxes have different rates for different individuals
Direct taxes are paid by the person who earns the income, whereas indirect taxes are collected from consumers
Indirect taxes are paid directly to the government by individuals
Who has the authority to resolve GST-related disputes between states and the central government?
Supreme Court of India
GST Council
Ministry of Finance
GST Appellate Tribunal
GSTN (Goods and Services Tax Network) is responsible for:
Enforcing tax laws and collecting GST
Providing the IT infrastructure for GST implementation
Auditing businesses for GST compliance
Issuing GST exemptions and refunds
What is the primary function of GSTN in the GST system?
To formulate GST tax policies
To facilitate online registration, return filing, and tax payments
To conduct tax raids and investigations
To settle disputes related to GST
What does GSTN stand for?
Goods and Services Tax Number
Goods and Services Tax Network
General Sales Tax Notification
Government Sales Tax Norms
What does GSTIN stand for?
Goods and Services Tax Identification Number
Government and State Tax Identification Number
General Sales Tax Information Network
Goods and Services Tax Invoice Number
Section 12 of the CGST Act, deals with
Registration
GSTN
GSTIN
Time of Supply
Under Section 22 of the CGST Act, A Service Provider is liable to be registered under GST
If a supplier whose aggregate turnover exceeds 20 lakh rupees
if a supplier who does not make taxable supplies
if a supplier whose aggregate turnover exceeds 40 lakh rupees in a financial year
If a supplier whose turnover is below 40 lakh rupees in a financial year
Which of the following persons are not liable to register under GST, according to Section 23 of the CGST Act?
A person engaged in the supply of taxable goods
A person who only supplies goods that are wholly exempt from tax
A person engaged in inter-State taxable supply
A casual taxable person making taxable supplies
Which of the following categories of persons are required to compulsorily register under GST as per Section 24?
Persons making only intra-State taxable supplies
An agriculturist supplying produce from land cultivation
Casual taxable persons making taxable supply
Persons supplying goods that are exempt from tax
As per Section 23 of the CGST Act, who is not required to obtain registration under GST?
A person supplying both taxable and exempt goods
An agriculturist, to the extent of supplying produce out of land cultivation
A person making inter-State taxable supplies
A person providing taxable services
According to Section 33 of the CGST Act, where should the amount of tax be prominently indicated?
In the tax return only
In the tax invoice and other like documents
On the supplier's website
In the supply order only
Under Section 67 of the CGST Act, who can authorize the inspection of a taxable person's business premises?
Any officer of the GST department
An officer not below the rank of Joint Commissioner
A customs officer
Any senior officer in the tax department
Under Section 67 of the CGST Act, when can the proper officer authorize an inspection of the premises?
Only when the taxable person requests it
When there is a reason to believe that the taxable person has evaded tax or violated provisions of the Act
When the taxable person has paid taxes for all goods
When a tax return has not been filed for two consecutive months
According to Section 117 of the CGST Act, how long does an aggrieved person have to file an appeal to the High Court?
1 Year
180 days
1 Week
15 days
Under the Goods and Services Tax (GST) Act, what is the maximum imprisonment period for serious offenses such as tax evasion exceeding ₹5 crore?
1 year
3 years
6 months to 5 years
10 years
Settlement Commission orders are binding on:
Only the taxpayer
Only the tax authorities
Both taxpayer and tax authorities
None of the above
What is the primary difference between tax evasion and tax avoidance?
Tax evasion is legal; tax avoidance is illegal
Tax evasion involves hiding income; tax avoidance involves planning to reduce tax
Tax avoidance involves cash transactions; tax evasion is only online
There is no difference
Which of the following is an example of tax evasion?
Investing in tax-saving instruments under Section 80C
Not reporting rental income in tax returns
Claiming deduction for home loan interest
Setting up a trust to reduce tax liability
Tax avoidance is:
A criminal offence under Indian law
Ethically questionable but legal
Always illegal
A form of tax theft
Under which section of the Income Tax Act, 1961 are penalties for tax evasion imposed?
Section 80C
Section 234A
Section 270A
Section 10
Which of the following best defines tax evasion?
Paying taxes before the due date
Avoiding taxes through lawful means
Illegally not paying or underreporting taxes
Investing in foreign securities
Which case is considered a recent landmark tax case in India?
Vodafone International Holdings v. Union of India
McDowell & Co. Ltd. v. CTO
Union of India v. Azadi Bachao Andolan
CIT v. B.C. Srinivasa Setty
Which governmental body in India investigates serious cases of tax evasion?
NITI Aayog
Central Bureau of Investigation (CBI)
Central Board of Direct Taxes (CBDT)
Enforcement Directorate (ED)
Which of the following is an acceptable form of tax planning?
Hiding income to reduce tax
Creating fictitious expenses
Using deductions provided under law
Not filing a tax return
The penalty for misreporting of income under Section 270A can be up to:
0% of the tax payable
10% of the tax payable
200% of the tax payable
5% of the tax payable
Which of the following best defines a sale in legal terms?
Temporary transfer of goods for free
Permanent transfer of ownership in exchange for money
Lease of goods for fixed time
Exchange of goods without money
What does the abbreviation 'OECD' stand for?
Organization for Economic Coordination and Development
Organization for Economic Co-operation and Development
Office of Economic Co-operation and Development
Organization of European Countries for Development
Black money refers to income:
Reported to the government and taxed
Earned through legal means and fully disclosed
Earned through legal or illegal means but not disclosed to tax authorities
Earned only from illegal sources
Under the Section 132(1)(i) of The CGST Act, 2017, what is the maximum imprisonment for committing certain specified offences involving tax evasion exceeding ₹5 crore?
3 years
5 years
7 years
10 years
Under the Income Tax Act, 1961, what is the maximum punishment for wilful attempt to evade tax under Section 276C(1)?
3 years
5 years
7 years
10 years
Under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015, what is the maximum punishment for wilful failure to disclose foreign assets?
3 years
5 years
7 years
10 years
Under the Prevention of Money Laundering Act (PMLA), 2002, what is the maximum imprisonment prescribed for the offence of money laundering?
5 years
7 years
10 years
14 years
What does the abbreviation 'SCN' stand for in tax and legal proceedings?
Special Case Notification
Show Cause Notice
Statutory Compliance Notice
Standard Compliance Notice
Under the CGST Act, who is empowered to authorize the arrest of a person for offences under GST?
Income Tax Officer
Central Bureau of Investigation
Commissioner of GST
Enforcement Directorate
In Income Tax, an arrest for willful attempt to evade tax may result in prosecution under which court?
Civil Court
High Court
Magistrate's Court
Special Economic Offences Court
Which of the following agencies does not have power to arrest in tax-related cases?
GST Intelligence Wing
Enforcement Directorate
Income Tax Department (in certain cases)
National Company Law Tribunal
Under GST law, arrest without a warrant is permissible when the offence is classified as:
Compoundable offence
Civil wrong
Cognizable offence
Non-cognizable offence
In case of arrest under the Income Tax Act, who can grant bail to the arrested person?
Income Tax Officer
Civil Court only
Magistrate having jurisdiction
GST Commissioner
Under the Black Money Act, the offence of willfully attempting to evade tax is:
Cognizable and bailable
Non-cognizable and bailable
Cognizable and non-bailable
Non-cognizable and non-bailable
What was one of the major objectives of the 2016 demonetization policy?
Introduce new taxes
Promote cash-based economy
Eliminate black money, counterfeit currency, and curb terrorism financing
Increase interest rates
During a tax raid by authorities under the GST Act, a businessman is arrested for allegedly issuing fake invoices. He is not informed of the grounds of arrest, his family is not informed, and he is denied access to legal counsel. Which Supreme Court case ensures protection of his fundamental rights in such a situation?
D.K. Basu vs State of West Bengal
Vodafone vs Union of India
Puttaswamy vs Union of India
Lalita Kumari vs Govt. of U.P.
A GST officer receives credible information that a trader is issuing fake invoices without actual supply of goods. A surprise inspection is conducted, and incriminating documents are found. What legal action can the officer take?
Only impose penalty
Arrest the trader under Section 69 of CGST Act
Ignore the issue
Send notice only
A businessman conceals ₹5 crore in sales in his GST return. After investigation, it's found he intentionally evaded tax. What is the maximum imprisonment under CGST Act?
3 years
5 years
7 years
1 year
An Income Tax officer finds ₹2 crore unaccounted cash during a search. The assessee fails to explain the source. What is the likely next step?
Confiscation and penalty
Seizure of cash and arrest
Immediate bail
No action required
A person obstructs tax officers during a GST raid and refuses to allow access to business records. What can the officers do legally?
File a civil suit
Arrest under Section 132 of CGST Act
Dismiss the search
Hand over case to SEBI
During an Income Tax raid, officers seize gold jewellery. The taxpayer fails to produce supporting documents. What does this amount to?
Routine audit
Tax evasion and undisclosed asset
Legal transfer
No consequence
A company books fake purchases to claim Input Tax Credit under GST. After inquiry, it is proven false. What is the possible consequence?
Refund of GST
Arrest and penalty under Section 132
Suspension of GSTIN only
Audit notice
A businessman is issued an arrest warrant under the Income Tax Act for willful evasion. Who can issue such a warrant?
Police Inspector
Income Tax Commissioner
GST Superintendent
Finance Minister
A person is found using a fake GST registration number and collecting tax fraudulently. What can be the consequence?
Compulsory registration
Fine only
Arrest and prosecution under Section 132
No action
During a GST investigation, a taxpayer absconds and avoids summons. What can the department do?
Ignore the case
Seek arrest warrant from Magistrate
Summon again only
Cancel PAN
A tax officer arrests someone under GST, but no arrest memo is prepared. Which constitutional principle is violated?
Article 370
Article 14
Article 21
Article 324
Which of the following is an essential condition before conducting a search under Section 67 of CGST Act?
Approval from High Court
Reason to believe that goods or documents are hidden
Newspaper notice
FIR from police
What is the maximum time an arrested person can be detained without being produced before a magistrate?
48 hours
24 hours
72 hours
96 hours
A taxpayer is arrested under GST and demands bail. Which court will hear his bail application if the offence is non-bailable?
Civil Court
Magistrate's Court
CIT
Income Tax Tribunal
What is the fine for failing to deduct TDS as per Section 271C?
₹10,000
100% of the tax not deducted
₹50,000
₹25,000
The Settlement Commission has the power to grant:
Tax refunds
Immunity from penalties and prosecution
Lower tax rates
Advance rulings
Which section deal about Composition Scheme under CGST ACT, 2017?
5
7
35
10
As per the amendment to Section 22 of the CGST Act, what is the threshold turnover for a supplier in special category States to be liable for registration?
20 lakh rupees
10 lakh rupees
40 lakh rupees
50 lakh rupees
What does HSN stand for in the context of GST?
Harmonized System Number
Harmonized Sales Number
Harmonized System of Nomenclature
High Security Number
What does 'Income Escaping Assessment' refer to?
Income that is exempt from tax
Income declared by the taxpayer
Income that has not been assessed earlier by mistake or omission
Refund not claimed
What is meant by 'Best Judgment Assessment'?
Assessment based on court orders
Assessment when a taxpayer hides income
Assessment made by the officer using their judgment when the taxpayer does not cooperate
Final assessment after audit
What does a summary assessment check for?
Fraud
Mathematical errors and mismatches
Investment plans
Physical inspection
What does inspection under tax law refer to?
Filing return
Checking books and premises
Search
Arrest
What is seizure in the context of tax law?
Collecting penalties
Taking possession of undisclosed assets during search
Sending notices
Filing returns
Which section of CGST Act, 2017 allows arrest in GST-related offences?
Section 69
Section 67
Section 147
Section 143
Which mechanism is the default method for collecting GST?
Reverse charge mechanism
Forward charge mechanism
Self-assessment mechanism
Deferred charge mechanism
Who collects and deposits tax in the Forward Charge Mechanism (FCM)?
The buyer
The bank
The supplier
The GST Council
Who collects and deposits tax in the Forward Charge Mechanism (FCM)?
The buyer
The bank
The supplier
The GST Council
Under Reverse Charge Mechanism (RCM), who pays the tax?
Supplier
Government
Buyer/Recipient
GST officer
Who needs separate GST registration for each state of operation?
Freelancers
E-commerce customers
Businesses operating in multiple states
Government offices
What happens after successful GST registration?
Tax is refunded
GSTIN is issued
Income tax returns are generated
No change
Under Section 11 of the CGST Act, exemptions are granted based on the recommendation of:
Supreme Court
Parliament
GST Council
RBI
ITC is available only if the recipient has:
PAN
Aadhaar
Valid tax invoice
TDS certificate
PAN is required in GST for:
Invoice
ITC
Registration
Refund
First appellate authority under the Income Tax Act is:
CBDT
Assessing Officer
CIT(A) - Commissioner of Income Tax (Appeals)
ITAT
Time limit to file appeal before CIT(A) is:
15 days
30 days
60 days
90 days
Second appeal in income tax lies with:
High Court
CBDT
ITAT
Supreme Court
Appeal against the order of ITAT lies with:
CIT(A)
Supreme Court
High Court
NCLT
Appeal before the Supreme Court in tax matters can be filed only if:
High Court certifies it as fit case
Assessee wishes to appeal
AO permits
ITAT directs
What is the due date for filing Income Tax Return (ITR) for individual taxpayers (non-audit cases) for the Assessment Year 2024-25?
30th June 2024
31st July 2024
31st August 2024
30th September 2024
First appellate authority under GST is:
High Court
Appellate Authority (AA)
Revisional Authority
National Anti-profiteering Authority
Which international organization is primarily responsible for developing the Base Erosion and Profit shifting Action Plan?
World Trade Organization (WTO)
TRIPS
International Monetary Fund (IMF)
Organisation for Economic Co-operation and Development (OECD)
An appeal against the Appellate Tribunal's order lies with:
High Court
Supreme Court
GST Council
Central Government
Who is not allowed to file an appeal under GST?
Registered person
Proper officer
Unregistered person
Government
Which Article gives the Supreme Court the power to grant special leave to appeal in any matter including tax disputes?
Article 226
Article 131
Article 136
Article 141
Writ petitions against arbitrary tax assessments can be filed under which Article?
Article 13
Article 32
Article 246A
Article 265
Which constitutional remedy is available for challenging excessive or unjust tax assessments?
SLP under Article 136
Review under Article 137
Writ under Article 226 or 32
Appeal under Income Tax Act only
If a taxpayer misses the deadline to appeal to the High Court under Income Tax Act or GST, the delay may be condoned if:
The delay is less than 10 days
Sufficient cause is shown
The tax amount is paid
AO approves it
What is the primary objective of the Base Erosion and Profit Shifting (BEPS) project led by the OECD?
To increase tariffs between countries
To help multinational companies avoid double taxation
To prevent tax avoidance by shifting profits to low or no-tax jurisdictions
To abolish income tax for corporations
What does the Arm's Length Principle in international taxation refer to?
The minimum wage to be paid to foreign employees
Charging related parties a special discounted price for tax purposes
Transactions between related entities should be priced as if they were between independent entities
The legal limit of a company's global operations
Can a composition dealer claim input tax credit (ITC)?
Yes, on capital goods
Yes, for inward supply
No, ITC is not available
Yes, if turnover is below ₹20 lakh
What must a composition dealer mention on every bill of supply?
GSTIN only
"Composition taxable person, not eligible to collect tax on supplies"
Input tax credit details
HSN code only
A registered trader purchases raw materials from a GST-registered supplier and uses them to manufacture taxable goods. Can he claim ITC?
No, ITC is not allowed on raw materials
Yes, as it is used for taxable supplies
No, if the raw materials are imported
Yes, but only on half the amount
A person buys office chairs for use in his business. Can he avail ITC on this purchase?
Yes, it's for business use
No, furniture is not eligible
Yes, but only after 6 months
No, ITC is not allowed on capital goods
An IT company purchases a car for its director's personal use. Is ITC allowed?
Yes, all purchases are eligible
No, motor vehicles for personal use are blocked credit
Yes, if registered in the company's name
Yes, if GST is paid
A restaurant under composition scheme avails input services such as pest control and security services. Is ITC available?
Yes, fully
No, restaurants under composition scheme cannot avail ITC
Yes, only on pest control
Yes, on all input services
Rajesh buys stationary items for office use from a GST-registered supplier. Can he claim ITC?
No, stationary is not eligible
Yes, as it is used in course of business
Yes, if used within the same month
No, ITC is only for capital goods
A firm pays GST on canteen services provided to its employees. Is ITC allowed?
No, ITC on food and beverages is blocked
Yes, canteen service is part of welfare
Yes, if it's a factory with more than 250 workers
Yes, for private limited companies
An exporter purchases inputs and uses them to manufacture zero-rated goods. Can he avail ITC?
No, exports are not taxable
Yes, ITC is available on zero-rated supplies
Yes, but not on capital goods
No, if not registered under SEZ
A business uses mobile phones for employees' work purposes. Can ITC be claimed?
No, mobile phones are blocked credit
Yes, if used for business purposes
Yes, only for directors
Yes, on prepaid connections only
Rohit buys air tickets for a business conference. Can he claim ITC on air fare?
No, ITC not allowed on travel
Yes, if for business purposes
Yes, only if outside India
No, if not accompanied by boarding pass
A taxpayer mistakenly claims excess ITC. What is the consequence?
No issue, can adjust later
Interest and penalty may be imposed
Allowed with CA certificate
Allowed if under ₹1,000
Which of the following best defines the term "business" under Section 2(17) of the CGST Act?
Any activity carried on for personal use
Any trade, commerce, manufacture, profession or similar activity, whether or not for profit
Only activities done by companies
Activities only within India
Under Section 2(31), "consideration" in relation to a supply includes:
Only cash received
Any payment made in money or otherwise in respect of supply of goods/services
Payment through banking channels only
Only advance received
Who is classified as an "Electronic Commerce Operator" under Section 2(45) of the CGST Act?
Any trader selling products online
Any person who owns a website
Any person who owns, operates or manages a digital platform for e-commerce
Only Flipkart and Amazon
Which of the following would be classified as "goods" under Section 2(52) of the CGST Act?
Electricity
Actionable claims
Land and buildings
Securities
Who is referred to as a "taxable person" under Section 2(107) of the CGST Act?
Any individual receiving goods
Any person registered or liable to be registered under GST
Only companies and LLPs
Unregistered business entities
Which of the following is a correct definition of "India" under Section 2(56) of the CGST Act?
Only the landmass of Indian states
Includes only the mainland and islands
Includes the territorial waters, seabed, subsoil, continental shelf, and exclusive economic zone
Includes only areas notified by the President
