100 MCQs ON GOODS AND SERVICES TAX (GST)
PART A — STANDARD / MODERATE QUESTIONS
1.
GST is primarily a tax on:
A. Manufacture only
B. Sale of goods only
C. Supply of goods or services or both
D. Income of the supplier
2.
The Central Goods and Services Tax (CGST) is levied by:
A. State Government
B. Central Government
C. Local Authority
D. GST Council
3.
SGST is generally levied on:
A. Inter-State supplies
B. Imports only
C. Intra-State supplies
D. Exports only
4.
IGST is generally applicable to:
A. Intra-State supplies
B. Inter-State supplies
C. Supplies within a municipality only
D. Exempt supplies only
5.
The GST Council is constituted under:
A. Article 246
B. Article 279A
C. Article 280
D. Article 300A
6.
The GST Council is chaired by the:
A. Prime Minister
B. Union Home Minister
C. Union Finance Minister
D. Revenue Secretary
7.
Which of the following is included in the definition of “supply”?
A. Sale
B. Transfer
C. Barter
D. All of the above
8.
A supply made without consideration can still be taxable when:
A. It is always taxable
B. It falls under specified cases such as Schedule I
C. The supplier is registered
D. The recipient is registered
9.
Which Schedule of the CGST Act deals with activities treated as supply even without consideration?
A. Schedule I
B. Schedule II
C. Schedule III
D. Schedule IV
10.
Activities which are neither supply of goods nor supply of services are specified in:
A. Schedule I
B. Schedule II
C. Schedule III
D. Schedule V
11.
A composite supply is a supply:
A. Containing unrelated items
B. Consisting of two or more taxable supplies naturally bundled together
C. Containing only exempt supplies
D. Made only to registered persons
12.
In case of a composite supply, GST is charged according to the:
A. Highest rate applicable to any item
B. Lowest rate applicable
C. Rate applicable to the principal supply
D. Average rate
13.
A mixed supply is taxed at:
A. Rate applicable to principal supply
B. Rate applicable to the item attracting the highest rate
C. Average rate
D. Nil rate
14.
Consideration for a supply may be:
A. Monetary only
B. Non-monetary only
C. Monetary or non-monetary
D. Only in Indian currency
15.
Which of the following is generally not a consideration?
A. Money
B. Goods received in exchange
C. Voluntary donation unrelated to supply
D. Payment made by recipient
16.
The taxable value of a supply is generally based on:
A. Cost of production
B. Transaction value, subject to statutory conditions
C. MRP in every case
D. Profit margin
17.
The transaction value method applies when:
A. Supplier and recipient are unrelated and price is the sole consideration, subject to statutory conditions
B. Supplier and recipient are always related
C. Supply is exempt
D. No consideration exists
18.
A discount given before or at the time of supply and duly recorded in the invoice is generally:
A. Included in taxable value
B. Excluded from taxable value
C. Treated as GST
D. Treated as exempt supply
19.
A post-supply discount may be excluded from taxable value when:
A. It is never documented
B. Relevant statutory conditions are satisfied
C. It is paid in cash only
D. Recipient is unregistered
20.
Which of the following is generally included in the value of supply?
A. GST itself
B. Incidental expenses charged by supplier
C. Eligible pre-supply discount
D. ITC claimed by recipient
21.
Time of supply determines:
A. Place of business
B. Rate of depreciation
C. Point when tax liability arises
D. Amount of turnover
22.
For goods under the normal forward-charge mechanism, time of supply is primarily linked to:
A. Invoice and receipt of payment, subject to statutory provisions
B. Annual return
C. Date of audit
D. Date of registration
23.
For services, the time of supply provisions primarily determine:
A. When tax becomes payable
B. Whether supplier is resident
C. HSN classification
D. Registration number
24.
Reverse Charge Mechanism means:
A. Tax is paid by the recipient instead of the supplier in specified cases
B. Tax is refunded to supplier
C. Tax is paid twice
D. Tax is paid only by transporter
25.
Under GST, reverse charge may arise:
A. Only for exports
B. Only for imports
C. In specified supplies notified under law
D. In every B2B supply
26.
A registered person generally issues a tax invoice for:
A. Taxable supplies
B. Exempt supplies only
C. Salary payments
D. Capital introduced
27.
For an exempt supply, a registered supplier generally issues:
A. Tax invoice charging GST
B. Bill of supply
C. Debit note only
D. Delivery challan only
28.
A credit note may be issued when:
A. Taxable value or tax charged in invoice exceeds actual taxable value/tax
B. Supplier wants to increase taxable value
C. Recipient requests a duplicate invoice
D. Goods are never supplied
29.
A debit note is generally used when:
A. Taxable value or tax charged is less than what should have been charged
B. Supply is completely exempt
C. GST registration is cancelled
D. Payment is received in advance
30.
The maximum validity of an e-way bill is primarily linked to:
A. Value of invoice only
B. Distance travelled
C. GST rate
D. Supplier's turnover
31.
An e-way bill is generally required for movement of goods when:
A. The statutory conditions and prescribed value threshold are met
B. Any service is supplied
C. Salary is paid
D. An exempt service is provided
32.
The standard e-way bill threshold generally referred to under Rule 138 is:
A. ₹10,000
B. ₹25,000
C. ₹50,000
D. ₹1,00,000
33.
Input Tax Credit (ITC) primarily allows a registered person to:
A. Reduce taxable turnover
B. Set off eligible input tax against output tax liability
C. Avoid registration
D. Avoid issuing invoices
34.
ITC is generally available only when:
A. Statutory conditions under Section 16 are satisfied
B. Purchase is made in cash
C. Supplier is unregistered in every case
D. Goods are used for personal purposes
35.
Which of the following is generally a condition for claiming ITC?
A. Possession of tax invoice or prescribed document
B. Payment of salary
C. Filing of income-tax return only
D. Purchase of personal goods
36.
If a recipient fails to pay the supplier the value of supply plus tax within the prescribed period, the ITC is:
A. Permanently forfeited
B. Added to turnover
C. Required to be reversed with applicable interest, subject to statutory provisions
D. Converted into SGST
37.
Which section primarily deals with eligibility and conditions for taking ITC?
A. Section 7
B. Section 16
C. Section 25
D. Section 54
38.
Which of the following is generally a blocked credit under Section 17(5), subject to exceptions?
A. Certain motor vehicles
B. Raw materials used in taxable production
C. Office stationery
D. Business software
39.
ITC relating to goods or services used exclusively for:
A. Business purposes is always blocked
B. Non-business purposes is generally not available
C. Export purposes is always blocked
D. Taxable supplies is always blocked
40.
The composition scheme is primarily designed for:
A. Large multinational companies
B. Small taxpayers satisfying prescribed conditions
C. Government departments only
D. Exporters only
41.
A person paying tax under the composition scheme generally:
A. Charges GST separately from customer
B. Cannot collect tax from recipient
C. Gets unrestricted ITC
D. Must charge IGST on every supply
42.
A composition taxpayer generally cannot:
A. Make taxable supplies
B. Issue a bill of supply
C. Claim eligible ITC
D. Maintain books
43.
The GST registration number is known as:
A. PAN
B. TAN
C. GSTIN
D. CIN
44.
GSTIN consists of:
A. 10 characters
B. 12 characters
C. 15 characters
D. 20 characters
45.
The first two digits of a GSTIN generally represent:
A. PAN
B. State code
C. Entity number
D. Checksum
46.
A person who voluntarily obtains GST registration below the mandatory threshold:
A. Is treated as an unregistered person
B. Is treated as a registered taxable person subject to GST provisions
C. Cannot issue invoices
D. Cannot collect GST under any circumstances
47.
Aggregate turnover generally includes:
A. Only taxable supplies
B. Taxable, exempt, exports and inter-State supplies of the relevant person on an all-India PAN basis, subject to statutory exclusions
C. Only cash sales
D. Only intra-State sales
48.
Which of the following is excluded from aggregate turnover?
A. Exempt supplies
B. Exports
C. Inter-State supplies
D. Central GST and State GST components
49.
GST returns are generally filed electronically through:
A. GST portal
B. Income Tax portal only
C. MCA portal only
D. RBI portal
50.
GSTR-1 primarily contains details of:
A. Inward supplies only
B. Outward supplies
C. Income-tax deductions
D. Fixed assets only
PART B — TOUGH / APPLICATION-BASED QUESTIONS
51.
A dealer supplies a laptop for ₹60,000 along with a laptop bag for ₹2,000 as part of a single naturally bundled transaction for one consolidated price. The laptop is the principal supply. The transaction is:
A. Mixed supply
B. Composite supply
C. Exempt supply
D. Non-GST supply
52.
A trader sells a gift hamper containing chocolates, perfume and a watch for one single price. The items are not naturally bundled and different GST rates apply. This is:
A. Composite supply
B. Mixed supply
C. Zero-rated supply
D. Non-taxable supply
53.
A registered manufacturer transfers goods worth ₹80,000 without consideration to another establishment bearing the same PAN in another State. Assuming the transaction falls within Schedule I, the transfer is:
A. Not a supply because there is no consideration
B. A supply liable to GST
C. Always exempt
D. Outside GST because both establishments have the same PAN
54.
Company A provides goods worth ₹1,00,000 to its branch in another State without consideration. The branch and company have different GST registrations. The principal reason the transaction can be treated as supply without consideration is:
A. It is an export
B. It falls within specified Schedule I situations involving distinct persons
C. It is a mixed supply
D. It is a deemed export
55.
A supplier in Maharashtra supplies goods to a customer in Maharashtra. The transaction is an intra-State supply. Which tax combination is normally applicable?
A. IGST only
B. CGST and SGST
C. CGST only
D. SGST only
56.
A supplier in Maharashtra supplies goods to a registered buyer in Karnataka. The supply is inter-State. Which tax is normally charged?
A. CGST + Maharashtra SGST
B. Karnataka SGST only
C. IGST
D. Maharashtra SGST only
57.
A supplier in Delhi sends goods to a buyer in Haryana. The goods move from Delhi to Haryana pursuant to the supply. The transaction is generally:
A. Intra-State supply
B. Inter-State supply
C. Exempt supply
D. Zero-rated supply automatically
58.
An Indian company imports goods from the USA. The applicable integrated GST on import is generally collected:
A. As SGST by the State
B. As IGST in addition to applicable customs duties
C. As CGST only
D. By the local municipality
59.
A registered person exports goods outside India. Such export is classified under GST as:
A. Exempt supply only
B. Zero-rated supply
C. Nil-rated domestic supply
D. Non-GST supply
60.
A registered supplier provides eligible services to an SEZ unit for authorised operations. Such supply is generally:
A. Intra-State supply
B. Zero-rated supply
C. Exempt supply only
D. Non-taxable supply
61.
A supplier sells goods for ₹1,00,000 and charges packing of ₹5,000 separately as part of the supply. If packing is incidental to the supply, the taxable value before GST is generally:
A. ₹1,00,000
B. ₹1,05,000
C. ₹5,000
D. Nil
62.
A supplier gives a discount of ₹10,000 before or at the time of supply and records it properly in the invoice. The original price before discount is ₹1,00,000. Subject to statutory conditions, taxable value is:
A. ₹1,10,000
B. ₹1,00,000
C. ₹90,000
D. ₹10,000
63.
Goods worth ₹2,00,000 are supplied. A discount of ₹20,000 is granted after supply. The discount was not agreed upon before/at the time of supply. It can reduce taxable value only if:
A. The recipient verbally agrees
B. The statutory conditions for post-supply discount are fulfilled
C. Supplier issues no document
D. Recipient is unregistered
64.
A machine costing ₹5,00,000 is purchased exclusively for taxable business supplies. Eligible GST charged is ₹90,000. Assuming all Section 16 conditions are satisfied and there is no blocked credit, the eligible ITC is:
A. ₹5,00,000
B. ₹90,000
C. ₹4,10,000
D. Nil
65.
A business purchases a car exclusively for the personal use of its proprietor. GST of ₹1,80,000 is charged. Assuming no statutory exception applies, ITC is:
A. ₹1,80,000
B. ₹90,000
C. ₹18,000
D. Not available
66.
A company purchases machinery for ₹10,00,000 plus GST of ₹1,80,000. The machinery is used exclusively for taxable supplies. Assuming all conditions are satisfied, the ITC relating to GST is:
A. ₹10,00,000
B. ₹1,80,000
C. ₹11,80,000
D. Nil
67.
A registered person has output GST liability of ₹2,50,000 and eligible ITC of ₹1,80,000. Ignoring interest and other adjustments, cash tax payable is:
A. ₹70,000
B. ₹1,80,000
C. ₹2,50,000
D. ₹4,30,000
68.
Output tax liability is ₹4,00,000. Eligible ITC is ₹3,20,000. Subsequently, ₹20,000 of the ITC is found ineligible. The valid ITC is:
A. ₹3,40,000
B. ₹3,20,000
C. ₹3,00,000
D. ₹80,000
69.
A registered person receives a service used partly for business and partly for personal purposes. The ITC attributable exclusively to personal use is:
A. Fully available
B. Generally not available
C. Available at 50% automatically
D. Available only after annual return
70.
A taxpayer has output tax of ₹5,00,000 and eligible ITC of ₹4,25,000. If the taxpayer pays the remaining liability through the electronic cash ledger, the amount required, ignoring interest and other liabilities, is:
A. ₹75,000
B. ₹4,25,000
C. ₹5,00,000
D. ₹9,25,000
71.
A registered person fails to pay the supplier the value plus tax within 180 days from the date of invoice. The ITC attributable to that supply is generally:
A. Automatically converted into output tax permanently
B. Required to be added/reversed with applicable interest as prescribed
C. Converted into SGST
D. Treated as exempt supply
72.
A taxpayer receives an invoice on 15 April 2026. The supplier has not furnished the relevant invoice details as required for ITC availability under the applicable provisions. The recipient should:
A. Claim ITC irrespective of supplier compliance
B. Claim ITC only when statutory conditions are satisfied
C. Treat invoice as exempt
D. Pay the supplier's income tax
73.
A business has both taxable and exempt supplies. Common input/input services are used for both. The entire ITC is:
A. Always available
B. Always blocked
C. Subject to proportionate reversal/apportionment under applicable rules
D. Converted into refund automatically
74.
A taxpayer purchases goods exclusively for making exempt supplies. The ITC on such goods is:
A. Fully available
B. Generally not available
C. Available after one year
D. Available only if payment is in cash
75.
A taxpayer purchases raw material for taxable supplies. GST charged is ₹72,000. Subsequently, the supplier issues a valid credit note reducing the taxable value and corresponding GST by ₹12,000. The recipient should, where applicable:
A. Increase ITC by ₹12,000
B. Reverse/reduce corresponding ITC by ₹12,000
C. Ignore the credit note
D. Claim ₹84,000 ITC
76.
A trader under the composition scheme makes taxable supplies worth ₹20,00,000. He purchases inputs on which GST of ₹2,00,000 is charged. Subject to composition provisions, he:
A. Can claim the entire ₹2,00,000 as ITC
B. Can claim 50% of ₹2,00,000
C. Cannot claim ITC merely because the inputs bear GST
D. Can claim ITC only on capital goods
77.
A composition taxpayer issues an invoice showing GST separately to the customer. This is:
A. A normal feature of composition scheme
B. Generally not permitted
C. Compulsory
D. Required only for inter-State supplies
78.
A person is eligible for composition levy but makes a supply that disqualifies him from the scheme. The person:
A. Can continue composition for that transaction
B. Must comply with the consequences of becoming ineligible under the scheme
C. Automatically becomes exempt
D. Pays no GST
79.
A supplier has aggregate turnover of ₹18 lakh and voluntarily obtains GST registration. After registration, he makes taxable supplies. He is:
A. Completely outside GST
B. A registered person subject to applicable GST provisions
C. Required to pay only income tax
D. Permanently exempt from GST
80.
A person exclusively supplies goods that are wholly exempt from GST. His turnover exceeds the normal registration threshold. Subject to statutory provisions, he is:
A. Automatically required to register solely because turnover exceeds the threshold
B. Generally not liable to registration merely because of such exempt turnover
C. Required to pay IGST
D. Required to obtain composition registration
81.
A registered person makes an inter-State taxable supply of ₹60,000 to an unregistered consumer. For the purpose of determining the applicable GSTR-1 reporting category under the current reporting framework, the transaction falls into:
A. B2B
B. B2C Large
C. B2C Others
D. Export
82.
A registered person makes an inter-State taxable supply to an unregistered consumer for an invoice value of ₹1,20,000. Under the current GSTR-1 reporting framework, this is generally reported as:
A. B2C Large
B. B2B
C. Export
D. Deemed export
83.
A taxpayer files GSTR-1 containing outward supply details. The principal purpose of GSTR-1 is:
A. Reporting outward supplies
B. Claiming income-tax refund
C. Reporting personal expenditure
D. Reporting depreciation
84.
A taxpayer wants to report his summary tax liability and discharge tax for a tax period through the regular monthly/quarterly return mechanism. The relevant return is generally:
A. GSTR-3B
B. GSTR-9A only
C. GSTR-10
D. GSTR-11
85.
A registered person has received inward supplies from various vendors. The recipient's ITC is generally dependent on:
A. Mere possession of a purchase order
B. Satisfaction of statutory ITC conditions
C. Payment by cheque only
D. Annual turnover being zero
86.
A supplier issues an invoice for ₹1,00,000 plus GST of ₹18,000. Later, the taxable value is found to be understated by ₹20,000. The supplier should generally issue:
A. Credit note
B. Debit note
C. Bill of supply
D. Refund voucher
87.
A supplier originally charges GST of ₹18,000, but subsequently determines that only ₹12,000 was legally chargeable. The excess GST is:
A. ₹30,000
B. ₹12,000
C. ₹6,000
D. ₹18,000
88.
A supplier has wrongly charged GST of ₹18,000 instead of ₹12,000. Subject to the statutory requirements, the reduction of ₹6,000 would generally be dealt with through:
A. Debit note
B. Credit note
C. Delivery challan
D. E-way bill
89.
A taxpayer has excess balance in the electronic cash ledger. Subject to statutory conditions, the taxpayer may seek:
A. Refund
B. Depreciation
C. ITC transfer to any person
D. Conversion into income-tax credit
90.
A taxpayer exports goods under a valid zero-rated mechanism without payment of IGST under the applicable procedure. The transaction is:
A. Zero-rated supply
B. Exempt domestic supply
C. Non-GST supply
D. Mixed supply
91.
A taxpayer imports a service from a foreign supplier and the service is taxable under reverse charge. The GST liability is generally discharged by:
A. Foreign supplier through Indian SGST
B. Indian recipient under reverse charge, where applicable
C. Customs department as CGST
D. Recipient's customer
92.
An Indian company receives an eligible taxable service from a foreign supplier. Assuming reverse charge applies, the tax is generally:
A. CGST only
B. SGST only
C. IGST
D. No GST
93.
A registered person has CGST credit of ₹50,000 and SGST credit of ₹50,000. He has IGST output liability of ₹80,000. Subject to utilisation rules, which statement is correct?
A. CGST credit can never be used against IGST
B. SGST credit can never be used against IGST
C. Both CGST and SGST credits can be utilised against IGST subject to statutory order/conditions
D. Neither can ever be used against IGST
94.
A registered person has IGST credit of ₹1,00,000 and CGST output liability of ₹70,000. Subject to utilisation rules, IGST credit can be used against:
A. CGST liability
B. Only SGST liability
C. Income-tax liability
D. Customs duty automatically
95.
A registered person has IGST credit of ₹1,00,000, CGST credit of ₹40,000 and SGST credit of ₹30,000. Output liabilities are IGST ₹50,000, CGST ₹60,000 and SGST ₹40,000. Ignoring other restrictions and following the prescribed utilisation sequence, the taxpayer must determine utilisation:
A. Without considering IGST credit
B. Only from cash ledger
C. By applying statutory ITC utilisation rules and then paying any balance in cash
D. By treating all ITC as SGST credit
96.
A supplier receives an advance of ₹1,00,000 for a taxable service and GST becomes payable on the advance under the applicable time-of-supply provisions. The GST liability is determined with reference to:
A. The applicable time-of-supply rules
B. The annual return date only
C. The income-tax assessment date
D. The date of audit only
97.
A supplier receives ₹1,18,000 as a tax-inclusive amount for a supply taxable at 18%. Assuming the entire amount represents consideration inclusive of GST, the taxable value is:
A. ₹1,18,000
B. ₹1,00,000
C. ₹99,000
D. ₹18,000
98.
A tax-inclusive supply has total consideration of ₹59,000 and GST rate is 18%. The GST component is:
A. ₹9,000
B. ₹10,620
C. ₹50,000
D. ₹59,000
99.
A registered person has output GST liability of ₹2,00,000. Eligible ITC is ₹1,20,000. A further ₹20,000 ITC is blocked under Section 17(5). Ignoring other adjustments, the amount payable from cash ledger is:
A. ₹60,000
B. ₹80,000
C. ₹1,20,000
D. ₹2,00,000
100.
A taxpayer has the following for a tax period:
Output GST liability = ₹4,50,000
Eligible ITC = ₹2,80,000
ITC of ₹30,000 is blocked under Section 17(5)
Interest payable = ₹5,000
Ignoring late fee and other liabilities, the amount of tax payable from the cash ledger before considering the separate interest payment is:
A. ₹1,40,000
B. ₹1,70,000
C. ₹2,00,000
D. ₹4,50,000
ANSWER KEY
📖 CLICK HERE TO VIEW SOLUTION
| Q | Ans | Q | Ans | Q | Ans | Q | Ans |
|---|---|---|---|---|---|---|---|
| 1 | C | 26 | A | 51 | B | 76 | C |
| 2 | B | 27 | B | 52 | B | 77 | B |
| 3 | C | 28 | A | 53 | B | 78 | B |
| 4 | B | 29 | A | 54 | B | 79 | B |
| 5 | B | 30 | B | 55 | B | 80 | B |
| 6 | C | 31 | A | 56 | C | 81 | C |
| 7 | D | 32 | C | 57 | B | 82 | A |
| 8 | B | 33 | B | 58 | B | 83 | A |
| 9 | A | 34 | A | 59 | B | 84 | A |
| 10 | C | 35 | A | 60 | B | 85 | B |
| 11 | B | 36 | C | 61 | B | 86 | B |
| 12 | C | 37 | B | 62 | C | 87 | C |
| 13 | B | 38 | A | 63 | B | 88 | B |
| 14 | C | 39 | B | 64 | B | 89 | A |
| 15 | C | 40 | B | 65 | D | 90 | A |
| 16 | B | 41 | B | 66 | B | 91 | B |
| 17 | A | 42 | C | 67 | A | 92 | C |
| 18 | B | 43 | C | 68 | C | 93 | C |
| 19 | B | 44 | C | 69 | B | 94 | A |
| 20 | B | 45 | B | 70 | A | 95 | C |
| 21 | C | 46 | B | 71 | B | 96 | A |
| 22 | A | 47 | B | 72 | B | 97 | B |
| 23 | A | 48 | D | 73 | C | 98 | A |
| 24 | A | 49 | A | 74 | B | 99 | B |
| 25 | C | 50 | B | 75 | B | 100 | B |
Calculation check for the numerical questions
Q64: ITC = ₹90,000.
Q67: ₹2,50,000 − ₹1,80,000 = ₹70,000.
Q68: ₹3,20,000 − ₹20,000 ineligible = ₹3,00,000.
Q70: ₹5,00,000 − ₹4,25,000 = ₹75,000.
Q87: ₹18,000 − ₹12,000 = ₹6,000.
Q97: ₹1,18,000 × 18/118 = ₹18,000 GST, taxable value = ₹1,00,000.
Q98: ₹59,000 × 18/118 = ₹9,000 GST.
Q99: Valid ITC = ₹1,20,000; cash tax = ₹2,00,000 − ₹1,20,000 = ₹80,000.
Q100: Valid ITC = ₹2,80,000; cash tax = ₹4,50,000 − ₹2,80,000 = ₹1,70,000. Interest of ₹5,000 is separate.
Important current-law note: I deliberately avoided filling the paper with commodity-rate questions because GST rates are frequently amended. Where current-rate/reporting provisions are used above, I based them on the current GST Council/CBIC material, including the 2025 rate rationalisation and the current GSTR-1 reporting framework. GST Council
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