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Tax Quiz 3

Total questions: 104

Worksheet time: 57mins

Name
Class
Date
1.

A business in Kerala purchases machinery from a seller in Tamil Nadu. The machine is transported from Tamil Nadu to Kerala. Identify the supply type.

a)

Intra-State Supply

b)

Inter-State Supply

c)

Composite Supply

d)

Exempt Supply

2.

An e-commerce platform located in Mumbai sells goods to a buyer in Mumbai, and the goods are delivered within the same state. What is the type of supply?

a)

Export

b)

Inter-State Supply

c)

Intra-State Supply

d)

Import

3.

A company in Haryana supplies goods to a unit in Haryana with both units registered under GST. What is the type of supply?

a)

Intra-State Supply

b)

Inter-State Supply

c)

Export

d)

Import

4.

An event organizer in Kolkata provides services to a company in Bengaluru. The location of the recipient is Bengaluru. Identify the nature of supply.

a)

Intra-State

b)

Inter-State

c)

Composite

d)

Exempt

5.

Goods are sold by a trader in Rajasthan to a buyer in Uttar Pradesh, but the goods are delivered in Madhya Pradesh on the buyer's request. What is this supply?

a)

Intra-State

b)

Export

c)

Inter-State

d)

Exempt

6.

A software firm in Chandigarh provides online services to a client located in Punjab. The place of supply is Punjab. What is the nature of this transaction?

a)

Intra-State Supply

b)

Inter-State Supply

c)

Mixed Supply

d)

Composite Supply

7.

A wholesaler in Gujarat sells goods to a retailer in Gujarat, and goods are delivered within the state. Identify the supply.

a)

Inter-State

b)

Intra-State

c)

Import

d)

Export

8.

An exporter in Hyderabad exports goods to a buyer in Germany. What type of supply is this under GST?

a)

Intra-State

b)

Inter-State

c)

Export

d)

Out-of-scope

9.

A business in Bihar provides taxable services to an unregistered customer in West Bengal. What kind of supply is it?

a)

Intra-State

b)

Inter-State

c)

Composite

d)

Exempt

10.

An online coaching platform located in Delhi provides services to a student in Uttar Pradesh. The place of supply is Uttar Pradesh. Identify the supply type.

a)

Inter-State

b)

Intra-State

c)

Exempt

d)

Import

11.

A business in Pune, Maharashtra sends goods to its warehouse in Nagpur, Maharashtra under the same GSTIN. What is the type of supply?

a)

Intra-State

b)

Inter-State

c)

No Supply

d)

Export

12.

A trader in West Bengal purchases goods from a dealer in Odisha and sells them to a customer in Jharkhand, directly delivering the goods to Jharkhand. What is the nature of this supply?

a)

Inter-State

b)

Intra-State

c)

Composite

d)

Exempt

13.

An importer in India purchases goods from a company in China. What is the nature of supply upon customs clearance?

a)

Export

b)

Inter-State Supply

c)

Intra-State Supply

d)

Non-GST Supply

14.

A consulting firm in Bangalore provides services to a company in Delhi. The place of supply is Delhi. What is the nature of this supply?

a)

Inter-State

b)

Intra-State

c)

Import

d)

Exempt

15.

A retailer in Assam buys goods from a wholesaler in the same state. Delivery is also within Assam. What is the nature of this supply?

a)

Inter-State

b)

Intra-State

c)

Export

d)

Mixed Supply

16.

Which of the following is not considered a supply under GST?

a)

Sale of goods by a trader

b)

Provision of consulting services

c)

Donation made without consideration

d)

Lease of commercial property

17.

Supply under GST must involve:

a)

Free exchange of goods

b)

Goods or services only

c)

Anything, including money and securities

d)

Goods, services, or money

18.

Under GST, consideration refers to:

a)

Only cash received

b)

Only goods

c)

Money or any form of payment in return for supply

d)

Only services

19.

Which of the following does not attract GST?

a)

Supply of goods for cash

b)

Supply of services for a fee

c)

Gift of property without consideration

d)

Sale of software with a license fee

20.

Supply must be made in the course or furtherance of:

a)

Education

b)

Personal use

c)

Business

d)

Agriculture

21.

Who is a taxable person under GST?

a)

A person below 18 years

b)

A person not required to register under GST

c)

A person registered or liable to be registered under GST

d)

A person supplying exempt goods

22.

A supply will be taxable under GST only if it is:

a)

Made to a relative

b)

A taxable supply

c)

Made outside India

d)

Made for free

23.

Supply made by a person who is not registered under GST is:

a)

Valid

b)

Always exempt

c)

Not taxable under GST

d)

Not considered supply

24.

What is meant by "taxable territory" under GST?

a)

Entire world

b)

Whole of India excluding Jammu and Kashmir

c)

Entire India including its territorial waters

d)

Only states with GST registration

25.

A person supplies goods within India, but the place of supply is outside India. Will it be covered under GST?

a)

Yes, if the recipient is a friend

b)

No, because it's outside taxable territory

c)

Yes, because the supplier is registered

d)

No, because goods are not taxable

26.

Ravi gifts a laptop to his friend without charging any money. There is no business purpose involved. Will this be considered a supply under GST?

a)

Yes, because a laptop was given

b)

No, because it lacks consideration and business purpose

c)

Yes, because gifting is allowed under GST

d)

No, because GST only applies to services

27.

Ankit, a registered trader, sells goods worth ₹50,000 to a client and receives payment via UPI. Is this a valid supply under GST?

a)

No, UPI payment is not valid

b)

Yes, as it is for consideration and in the course of business

c)

No, as it was not a cash transaction

d)

Yes, but only if the goods are imported

28.

Sneha supplies goods to her sister as part of her birthday gift without charging any amount. Is this a taxable supply?

a)

Yes, as goods were transferred

b)

No, as there is no consideration involved

c)

Yes, if the recipient is a relative

d)

Yes, but GST is paid by the recipient

29.

A school teacher sells handmade soaps on weekends to earn extra income. She is not registered under GST. Is this a supply under GST?

a)

Yes, because she is earning money

b)

No, because she is not a taxable person

c)

Yes, because soap is a taxable item

d)

No, because she is a teacher

30.

A software company provides a paid training workshop for corporate clients. What kind of supply is this?

a)

Not a supply

b)

Taxable supply of goods

c)

Taxable supply of services

d)

Exempt supply

31.

A restaurant in Mumbai delivers food to a customer and charges ₹800. The restaurant is GST registered. Will GST apply?

a)

No, because food is essential

b)

Yes, because it is a taxable supply by a taxable person

c)

No, because amount is below ₹1000

d)

Yes, only if the food is non-vegetarian

32.

An NGO provides free meals to the poor as part of a charitable activity. Will this be considered a supply?

a)

Yes, since food is involved

b)

No, because it is done without consideration and not in furtherance of business

c)

Yes, because it is a regular activity

d)

No, because it is a supply of services

33.

A company in Delhi provides IT services to a company in Bangalore and charges ₹1,00,000. What kind of supply is this?

a)

Intra-State supply

b)

Non-taxable supply

c)

Inter-State taxable supply

d)

Composite supply

34.

A person sells antique items from home occasionally and is not registered under GST. He earns ₹2,000 monthly. Will this fall under GST?

a)

Yes, because he sells goods

b)

No, because he is not a taxable person

c)

Yes, because antiques are taxable

d)

No, because he is working from home

35.

Rajesh, a GST-registered trader, sells goods in Delhi to a customer located in Mumbai. The place of supply is Mumbai. Is GST applicable?

a)

No, place of supply is outside his state

b)

Yes, because the supply is in taxable territory

c)

No, because customer is from another state

d)

Yes, but only if the goods are imported

36.

A District Court delivers a judgment in a civil case. Is GST applicable on the services rendered by the court?

a)

Yes, courts provide professional services

b)

No, services by courts are not taxable under GST

c)

Yes, if the parties pay court fees

d)

Yes, only in criminal cases

37.

A Member of Parliament receives remuneration and performs his legislative duties. Will this be treated as a supply under GST?

a)

Yes, MPs are providing services to the public

b)

No, functions performed by MPs are not taxable under GST

c)

Yes, if the MP receives allowances

d)

Yes, only if services are rendered outside Parliament

38.

A person is appointed as Chairperson of a State Commission but is not treated as an employee. Is GST applicable on his honorarium?

4 lines
39.

A person is appointed as Chairperson of a State Commission but is not treated as an employee. Is GST applicable on his honorarium?

a)

Yes, all payments are taxable

b)

No, the duties are exempt from GST

c)

Yes, if he is above 60 years old

d)

Yes, if appointed by a private organization

40.

A mortuary van is hired to transport a deceased person from the hospital to the crematorium. Will this service attract GST?

a)

Yes, because it is a vehicle service

b)

No, funeral-related services are exempt

c)

Yes, if the distance is more than 100 km

d)

Yes, if a private ambulance is used

41.

A builder sells a fully constructed and completed building after obtaining the completion certificate. Is GST applicable?

a)

Yes, as it's a building

b)

No, sale of completed building is not taxable under GST

c)

Yes, if it's a commercial building

d)

Yes, if it includes interior work

42.

Ravi purchases a plot of land from a developer. Will GST be charged on the transaction?

a)

Yes, land sale is taxable

b)

No, sale of land is outside GST scope

c)

Yes, if the land is agricultural

d)

No, only stamp duty applies

43.

A telecom company offers recharge coupons which are considered actionable claims. Are such coupons taxable?

a)

Yes, because it's a business transaction

b)

No, actionable claims (except specified ones) are not taxable

c)

Yes, because it's a service

d)

No, because it's provided digitally

44.

A person buys a state government-approved lottery ticket for ₹100. Will GST be applicable on this purchase?

a)

No, because it's a game of chance

b)

Yes, because lottery is a specified actionable claim under GST

c)

No, because it's issued by the government

d)

Yes, only if it's a private lottery

45.

A local Panchayat member is paid a sitting allowance for attending village meetings. Is this amount subject to GST?

a)

Yes, allowance is taxable

b)

No, functions of Panchayat members are exempt

c)

Yes, if paid in cash

d)

Yes, only for rural panchayats

46.

A hotel provides a package of accommodation with complimentary breakfast. What type of supply is this?

a)

Mixed supply

b)

Composite supply with accommodation as principal supply

c)

Composite supply with food as principal supply

d)

Exempt supply

47.

A Diwali gift hamper contains chocolates, sweets, and a watch sold for a single price. What is this considered under GST?

a)

Composite supply

b)

Mixed supply, taxed at highest rate

c)

Exempt supply

d)

Zero-rated supply

48.

A courier company charges one price for transport and insurance services. How is this classified under GST?

a)

Composite supply with transportation as principal supply

b)

Mixed supply

c)

Exempt service

d)

Independent supplies

49.

A mobile phone is sold with a charger for one price. How is this treated under GST?

a)

Mixed supply

b)

Composite supply with mobile phone as principal supply

c)

Composite supply with charger as principal supply

d)

Not taxable

50.

A combo pack of tea and electric kettle is sold at a single price during a festival. What type of supply is this?

a)

Composite supply

b)

Mixed supply, taxed at highest rate

c)

Supply of goods only

d)

Exempt supply

51.

A travel agency offers a tour package including air travel, hotel stay, and sightseeing for one price. What is this?

a)

Mixed supply

b)

Composite supply with air travel as principal supply

c)

Composite supply with tour package as principal supply

d)

Exempt supply

52.

A shop sells a TV with free installation at home. How is this treated under GST?

a)

Mixed supply

b)

Composite supply with TV as principal supply

c)

Composite supply with installation as principal supply

d)

Installation is not a supply

53.

A printer is sold with cartridges, paper, and a USB cable in one package. What type of supply is this?

a)

Mixed supply

b)

Composite supply with printer as principal supply

c)

Composite supply with accessories as principal supply

d)

Exempt supply

54.

A birthday gift pack contains a shirt, wallet, and perfume sold as a bundle at a single price. What is this under GST?

a)

Composite supply

b)

Mixed supply, taxed at the rate applicable to perfume

c)

Exempt supply

d)

Supply of goods only

55.

An electronics store offers a combo of laptop and antivirus software (pre-installed), sold for one price. How is it treated?

a)

Mixed supply

b)

Composite supply with laptop as principal supply

c)

Composite supply with software as principal supply

d)

Not a supply under GST

56.

Meena runs a stationery store and wants to opt for the composition scheme. Can she issue a tax invoice?

a)

Yes, with GST details

b)

No, composition dealers cannot issue tax invoices

c)

Yes, if turnover is below ₹20 lakhs

d)

Yes, for B2B sales

57.

A composition dealer sells goods to a customer in another state. Is this allowed under the composition scheme?

a)

Yes, with IGST

b)

No, inter-state outward supply is not permitted

c)

Yes, with permission from GST officer

d)

Yes, only on e-commerce

58.

A composition dealer fails to mention 'composition taxable person' on his invoice board. What is the consequence?

a)

No consequence

b)

Penalty may be imposed

c)

He becomes a regular taxpayer

d)

Can continue using old invoice format

59.

Can a composition dealer claim input tax credit (ITC)?

a)

Yes, on capital goods

b)

Yes, for inward supply

c)

No, ITC is not available

d)

Yes, if turnover is below ₹20 lakh

60.

What must a composition dealer mention on every bill of supply?

a)

GSTIN only

b)

'Composition taxable person, not eligible to collect tax on supplies'

c)

Input tax credit details

d)

HSN code only

61.

A registered trader purchases raw materials from a GST-registered supplier and uses them to manufacture taxable goods. Can he claim ITC?

a)

No, ITC is not allowed on raw materials

b)

Yes, as it is used for taxable supplies

c)

No, if the raw materials are imported

d)

Yes, but only on half the amount

62.

A person buys office chairs for use in his business. Can he avail ITC on this purchase?

a)

Yes, it's for business use

b)

No, furniture is not eligible

c)

Yes, but only after 6 months

d)

No, ITC is not allowed on capital goods

63.

An IT company purchases a car for its director's personal use. Is ITC allowed?

a)

Yes, all purchases are eligible

b)

No, motor vehicles for personal use are blocked credit

c)

Yes, if registered in the company's name

d)

Yes, if GST is paid

64.

A restaurant under composition scheme avails input services such as pest control and security services. Is ITC available?

a)

Yes, fully

b)

No, restaurants under composition scheme cannot avail ITC

c)

Yes, only on pest control

d)

Yes, on all input services

65.

Rajesh buys stationary items for office use from a GST-registered supplier. Can he claim ITC?

a)

No, stationary is not eligible

b)

Yes, as it is used in course of business

c)

Yes, if used within the same month

d)

No, ITC is only for capital goods

66.

A firm pays GST on canteen services provided to its employees. Is ITC allowed?

a)

No, ITC on food and beverages is blocked

b)

Yes, canteen service is part of welfare

c)

Yes, if it's a factory with more than 250 workers

d)

Yes, for private limited companies

67.

An exporter purchases inputs and uses them to manufacture zero-rated goods. Can he avail ITC?

a)

No, exports are not taxable

b)

Yes, ITC is available on zero-rated supplies

c)

Yes, but not on capital goods

d)

No, if not registered under SEZ

68.

A business uses mobile phones for employees' work purposes. Can ITC be claimed?

a)

No, mobile phones are blocked credit

b)

Yes, if used for business purposes

c)

Yes, only for directors

d)

Yes, on prepaid connections only

69.

Rohit buys air tickets for a business conference. Can he claim ITC on air fare?

a)

No, ITC not allowed on travel

b)

Yes, if for business purposes

c)

Yes, only if outside India

d)

No, if not accompanied by boarding pass

70.

A taxpayer mistakenly claims excess ITC. What is the consequence?

a)

No issue, can adjust later

b)

Interest and penalty may be imposed

c)

Allowed with CA certificate

d)

Allowed if under ₹1,000

71.

Which of the following best defines the term 'business' under Section 2(17) of the CGST Act?

a)

Any activity carried on for personal use

b)

Any trade, commerce, manufacture, profession or similar activity, whether or not for profit

c)

Only activities done by companies

d)

Activities only within India

72.

Under Section 2(31), 'consideration' in relation to a supply includes:

4 lines
73.

Under Section 2(31), "consideration" in relation to a supply includes:

a)

Only cash received

b)

Any payment made in money or otherwise in respect of supply of goods/services

c)

Payment through banking channels only

d)

Only advance received

74.

Who is classified as an "Electronic Commerce Operator" under Section 2(45) of the CGST Act?

a)

Any trader selling products online

b)

Any person who owns a website

c)

Any person who owns, operates or manages a digital platform for e-commerce

d)

Only Flipkart and Amazon

75.

Which of the following would be classified as "goods" under Section 2(52) of the CGST Act?

a)

Electricity

b)

Actionable claims

c)

Land and buildings

d)

Securities

76.

Who is referred to as a "taxable person" under Section 2(107) of the CGST Act?

a)

Any individual receiving goods

b)

Any person registered or liable to be registered under GST

c)

Only companies and LLPs

d)

Unregistered business entities

77.

Which of the following is a correct definition of "India" under Section 2(56) of the CGST Act?

a)

Only the landmass of Indian states

b)

Includes only the mainland and islands

c)

Includes the territorial waters, seabed, subsoil, continental shelf, and exclusive economic zone

d)

Includes only areas notified by the President

78.

Under Section 2(78), which of the following is a "non-taxable supply"?

a)

Supply on which GST is paid

b)

Supply on which IGST is paid

c)

Supply not leviable to tax under GST

d)

Exempt supply under GST

79.

According to Section 2(84), which of the following qualifies as a "person" under the CGST Act?

a)

Only individuals

b)

Only companies

c)

Individuals, HUFs, companies, firms, LLPs, AOPs, and government bodies

d)

Only registered dealers

80.

"Principal supply" under Section 2(90) refers to:

a)

The first supply made in a financial year

b)

The main supply in a composite supply to which other supplies are ancillary

c)

Supply made by the principal manufacturer

d)

Supply of principal raw material

81.

Under Section 2(93), who is considered the "recipient" of supply of goods or services?

a)

The supplier

b)

The person who pays for the supply

c)

The person who receives the goods/services and is liable to pay the consideration

d)

Only registered dealers

82.

In the case of direct taxes, the payer and the sufferer of the tax are:

a)

Different persons

b)

The same person

c)

Only businesses

d)

Only government entities

83.

Which of the following is an example of a direct tax?

a)

Goods and Services Tax (GST)

b)

Income Tax

c)

Value Added Tax (VAT)

d)

Customs Duty

84.

Indirect taxes are primarily based on:

a)

Income

b)

Wealth

c)

Supply of goods and services

d)

Capital gains

85.

Who is responsible for collecting and managing direct taxes in India?

a)

Central Board of Indirect Taxes and Customs (CBIC)

b)

Central Board of Direct Taxes (CBDT)

c)

Reserve Bank of India (RBI)

d)

Securities and Exchange Board of India (SEBI)

86.

Which of the following statements about indirect taxes is true?

a)

The tax burden is on the individual paying the tax

b)

The payer of the tax is not the ultimate bearer

c)

The entire revenue goes to the Central Government only

d)

Indirect taxes are based on income

87.

What is a key characteristic of direct taxes?

a)

They are paid voluntarily

b)

They are supply-based taxes

c)

They have different rates for different persons

d)

They are collected at the point of sale

88.

Which organization manages indirect taxes in India?

a)

Central Board of Direct Taxes (CBDT)

b)

Central Board of Excise and Customs (CBEC)

c)

Securities and Exchange Board of India (SEBI)

d)

National Stock Exchange (NSE)

89.

The revenue from indirect taxes is shared between:

a)

Only the State Governments

b)

Only the Central Government

c)

Both the Central and State Governments

d)

Private companies

90.

Which of the following is NOT a direct tax?

a)

Corporate Tax

b)

Property Tax

c)

Excise Duty

d)

Capital Gains Tax

91.

What is the key difference between direct and indirect taxes?

a)

Direct taxes are levied on consumption, whereas indirect taxes are levied on income

b)

Indirect taxes have different rates for different individuals

c)

Direct taxes are paid by the person who earns the income, whereas indirect taxes are collected from consumers

d)

Indirect taxes are paid directly to the government by individuals

92.

Who has the authority to resolve GST-related disputes between states and the central government?

a)

Supreme Court of India

b)

GST Council

c)

Ministry of Finance

d)

GST Appellate Tribunal

93.

GSTN (Goods and Services Tax Network) is responsible for:

a)

Enforcing tax laws and collecting GST

b)

Providing the IT infrastructure for GST implementation

c)

Auditing businesses for GST compliance

d)

Issuing GST exemptions and refunds

94.

What is the primary function of GSTN in the GST system?

a)

To formulate GST tax policies

b)

To facilitate online registration, return filing, and tax payments

c)

To conduct tax raids and investigations

d)

To settle disputes related to GST

95.

What does GSTN stand for?

a)

Goods and Services Tax Number

b)

Goods and Services Tax Network

c)

General Sales Tax Notification

d)

Government Sales Tax Norms

96.

What does GSTIN stand for?

a)

Goods and Services Tax Identification Number

b)

Government and State Tax Identification Number

c)

General Sales Tax Information Network

d)

Goods and Services Tax Invoice Number

97.

As per Section 12 of the CGST Act, what is the time of supply of goods?

a)

The date when the goods are delivered to the recipient

b)

The earlier of the date of issue of invoice or the date of receipt of payment

c)

The date when the supplier files the GST return

d)

The date when the recipient acknowledges the receipt of goods

98.

Under Section 22 of the CGST Act, who is liable to be registered under GST?

a)

A supplier whose aggregate turnover exceeds 20 lakh rupees

b)

A supplier who does not make taxable supplies

c)

A supplier whose aggregate turnover exceeds 40 lakh rupees in a financial year

d)

A supplier whose turnover is below 40 lakh rupees in a financial year

99.

Which of the following persons are not liable to register under GST, according to Section 23 of the CGST Act?

a)

A person engaged in the supply of taxable goods

b)

A person who only supplies goods that are wholly exempt from tax

c)

A person engaged in inter-State taxable supply

d)

A casual taxable person making taxable supplies

100.

Which of the following categories of persons are required to compulsorily register under GST as per Section 24?

a)

Persons making only intra-State taxable supplies

b)

An agriculturist supplying produce from land cultivation

c)

Casual taxable persons making taxable supply

d)

Persons supplying goods that are exempt from tax

101.

As per Section 23 of the CGST Act, who is not required to obtain registration under GST?

a)

A person supplying both taxable and exempt goods

b)

An agriculturist, to the extent of supplying produce out of land cultivation

c)

A person making inter-State taxable supplies

d)

A person providing taxable services

102.

According to Section 33 of the CGST Act, where should the amount of tax be prominently indicated?

a)

In the tax return only

b)

In the tax invoice and other like documents

c)

On the supplier's website

d)

In the supply order only

103.

Under Section 67 of the CGST Act, who can authorize the inspection of a taxable person's business premises?

a)

Any officer of the GST department

b)

An officer not below the rank of Joint Commissioner

c)

A customs officer

d)

Any senior officer in the tax department

104.

Under Section 67 of the CGST Act, when can the proper officer authorize an inspection of the premises?

a)

Only when the taxable person requests it

b)

When there is a reason to believe that the taxable person has evaded tax or violated provisions of the Act

c)

When the taxable person has paid taxes for all goods

d)

When a tax return has not been filed for two consecutive months