Basic Cost Concept

MCQ
1. What is the taxable event under GST? 8. Supply of goods or other similar articles for human
a. Manufacturing of goods consumption as a part of service, shall be
b. Sales of goods classified as:
c. Provision of Services a. Supply of goods
d. Supply b. Supply of services
c. Both
2. Supplier within the meaning of supply includes d. None of the above
a. Person supplying goods
b. Person providing services 9. What type of supply shall transfer of title in goods
c. Both under works contract constitute?
d. None of the above a. Supply of Goods
b. Supply of services
3. Flow of consideration is not a mandatory field under c. Either of the two at the option of authority
supply, in case of: d. None of the above
a. Imports
b. Activities specified under schedule I 10. A job worker performed certain dyeing operations
c. Both on fabrics. Does the given operation qualify as
d. None of the above supply?
a. Yes
4. Can an activity be considered supply even when not b. No
made in course or furtherance of business? c. On the prior approval of Government
a. Yes d. None of the above
b. No
c. Prior permission by the Government 11. Mr. A, being a Director of ABC Pvt. Ltd. Is provided
d. Not applicable a car which he uses for his personal purpose.
Does the same classify as supply? If yes under
5. Supply can be made to: which group?
a. Taxable person a. Yes, supply of goods
b. Non taxable person b. Yes, supply of services
c. Both c. Does not qualify as supply
d. None d. None of the above
6. A Holding entity made certain transfer of fixed asset 12. What shall be the proper classification of Renting
on permanent basis to its subsidiary entity without of immovable property under supply?
any consideration. Does the same classify as a a. Supply of Goods
supply under GST? b. Supply of Services
a. Yes c. Does not qualify as supply
b. No d. None of the above
c. On prior Permission of Government
d. Not any 13. ABC Ltd. offers a software to businesses for
smooth processing of returns and accounts. Such
7. What are the transactions to be classified as software shall be considered as:
supply even if made without consideration? a. Supply of Goods
a. Permanent transfer or disposal of business b. Supply of Services
asset c. Does qualify as supply
b. Supply between related or distinct person d. None of the above
when made in the course or furtherance of
business
c. Import of services from related persons or
from any of his other establishment outside
India
d. All of the above
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14. A local club supplies lunch to its members during 21. What shall constitute the main item under
its quarterly meetings at subsidized rates.. The composite supply?
same for the purpose of the Act, is classified as: a. Principal Item of the supplies naturally
a. Supply bundled
b. Sale b. Item with Highest tax rate
c. Does not qualify as supply c. As per the option of the taxpayer
d. None of the above d. None of the above
15. Transaction falling outside the ambit of supply are 22. What shall be the tax rate under mixed supply?
provided in: a. Tax rates as applicable on principal supply
a. Schedule I b. Highest tax rate of all items bundled in supply
b. Schedule II c. Either (a) or (b), at the option of taxpayer
c. Schedule III d. None of the above
d. None of the above
23. A person purchases laptop from a vendor along
16. Schedule III of the CGST Act includes which of the with laptop bag. What types of supply it shall
following? constitute?
a. Funeral, Burial, Crematorium a. Composite supply
b. Functions performed by MP’s, MLA’s b. Mixed supply
c. Services by any court or tribunal c. Neither of the two
d. All of the above d. As per recommendation of Government
17. The Government of Haryana took initiative to 24. “Inward supply” in relation to a person, shall mean
develop Khadi, Village and Rural Industries in receipt of goods or services or both whether by
various Panchayats and municipalities as public __________________
authorities. The same provision is covered under: a. Purchase
a. Supply of Goods b. Acquisition
b. Supply of services c. Any other means with or without
c. Neither of the two consideration
d. At the option of Appropriate Authority d. All of the above
18. Which of the following is the feature of mixed 25. “Principal supply”, the term used in Composite
supply? supply means the supply of goods or services
a. Supply made at a single price which constitutes the __________________ of a
b. Nontaxable Goods supplied composite supply and to which any other supply
c. Naturally Bundled forming part of that composite supply is
d. Persons in same industry follow same __________________
practices a. Ancillary element, predominant
b. Usual element, ancillary
19. Which of the following is not a composite supply? c. Predominant element, ancillary
a. Goods are packed and transported with d. Predominant element, important
insurance
b. Supplier of machinery providing erection and 26. Mr. B had a capital asset on which he did not avail
commissioning services ITC instead claimed depreciation on it. Now he
c. Goods transport agency arranging for loading has permanently transferred the same to Mr. D
and unloading facility without consideration. Is this a supply?
d. None of the above a. Yes
b. No
20. What does mixed supply means under GST? c. Maybe
a. Combination of two or more goods or services d. None of the above
made together for a single price.
b. Each of supply made together are not 27. Mr. A of Kolkata is transferring stock to its branch
naturally bundled. in UP. Is this transaction taxable?
c. Both (a) and (b) a. Yes
d. None of the above b. No
c. Maybe
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MCQ
3
28. What kind of supply is this transaction: Food 35. As per section 2(102) of the CGST Act 2017,
supplied to the in – patients as advised by the “services” means anything other than goods. Does
doctor in the hospital.” this means that immovable property is also
a. Composite Supply included in services?
b. Mixed Supply a. Yes
c. Works Contract Service b. No
d. None of the above c. Maybe
29. Comment on the tax rate applicable in case of
composite supply? 36. Mr. A gave Rs. 2000 note to Mr. C, who in return
a. Tax rate as applicable on principal supply gave 4 notes of Rs.500 back to Mr. A. Does this
b. Tax rate as applicable on ancillary supply qualify “service” definition as per GST Law?
c. Tax rate as applicable on respective supply a. Yes
d. None of the above b. No
c. Maybe
30. Mr. A, a director of ABC Pvt. Ltd. Sends some d. None of the above
goods to Mr. B for his personal use. Will this
constitute a supply? 37. Recipient of supply of goods or services means
a. Yes, transaction between related parties a.Where a consideration is payable for the supply
b. No of goods or services or both, the person who is
c. Maybe liable to pay that consideration;
d. None of the above b.Where no consideration is payable for the
supply of goods, the person to whom the goods
31. Services by way of transfer of a going concern, as are delivered or made available, or to whom
a whole or an independent part thereof is possession or use of the goods is given or made
__________________ available; and
a. Exempt from GST c.Where no consideration is payable for the supply
b. Taxable under GST of a service, the person to whom the service is
c. Partially taxable & partially exempt rendered.
d. Taxable at 28% d.All of the above
32. True or false “Activities performed by employees 38. Items out of the purview of Supply are provided in
at corporate office such as accounting, other a. Schedule I
administrative and IT system maintenance for b. Schedule II
units located in other states as well shall be c. Schedule III
treated as supply & will be subject to IGST.” d. None of the above
a. Correct
b. Incorrect 39. ABC Ltd. donates old computers to a charitable
c. Partially correct institution after they purchased new computer
d. None of the above systems. Such donation of computers on
permanent basis is:
33. Free food is supplied in the religious institutions. a. Supply under GST
Is the same taxable? b. Shall not be a supply
a. Yes c. On prior approval of Government
b. No d. Not any
c. Maybe
d. None of the above 40. ABC Ltd. provides certain services to Mr. Joy who
holds 35% of the voting right in the company. The
34. High sea sales are considered as supply under transfer made was without any consideration.
GST. True or False? Does the same qualify as supply?
a. Yes a. Yes, if made in the course or furtherance of
b. No business
c. May be b. No, since made without any consideration
d. None of the above c. Not a supply
d. Yes
41. Any gift made by an employer to an employee 47. Temporary transfer or permitting use of intellectual
shall be considered as supply. What is the limit right or property is classified as:
prescribed for the same? a. Supply of goods
a. Less than or equal to 50,000 b. Supply of services
b. More than 50,000 c. Does not qualify as supply
c. Exactly 50,000 d. Supply on the prior permission of
d. 50,000 and above Government
42. XYZ Ltd. has entered into contract with ABC Ltd. 48. Mr. A agreed with B Pvt. Ltd. to withdraw the suit
for the purpose of sale of goods on his behalf. XYZ filed against the company, if principle amount of
afterwards supplied the goods worth INR 60,000 loan paid by him to company is returned to him.
without any consideration. Does the same qualify Does the withdrawal of the suit qualify as supply?
as supply? a. Yes
a. Yes, being principal agent transfer b. No
b. No, since made without any consideration c. At the approval of Government
c. On prior permission of the government d. None of the above
49. Items provided under the ambit of Schedule III are
43. ABC Associates of Delhi receives certain not considered as:
consultancy services from XYZ Corporates in a. Supply of Goods
USA. Both are not related person. The services b. Supply of Services
received is without any consideration. Does the c. Both
same classify as supply? d. None of the above
a. Yes, being import of service in the course of
business. 50. What is the classification of sale of land and
b. No, since party to the contract are not related building under GST?
c. On the prior approval of the Government a. Supply of Goods
d. None of the above b. Supply of Services
c. Does not qualify as supply
44. Transfer of rights in goods has been considered d. None of the above
as supply under Schedule II. What type of supply
is it? 51. Mr. A, a whole time director in ABC Pvt. Ltd.
a. Supply of goods provides certain services in the course of
b. Supply of services employment to the company. The consideration
c. Either of two at the option of authority received in respect of such services has been
d. None of the above taxed under reverse charge mechanism. Is the
classification justified?
45. Any transfer made of title in goods shall be a. Yes, Services of Director has been
considered as: considered under Reverse charge
a. Supply of services Mechanism
b. Supply of goods b. No, since he is an employee and the same fall
c. Does not qualify as supply under the ambit of Schedule III
d. At the option of taxpayer c. At the option of the Company
46. Mr. C a taxable person initiates action of winding
up his business due to any non - compliance 52. XYZ Pvt. Ltd. manufactures the jeans on order of
clause under legal verdict of court. As a result of ABC Pvt. Ltd. Further, after manufacturing, it also
such incidence, he shall cease to be taxable gets it delivered to ABC Ltd. & gets the in transit
person under GST. All the stocks standing as on insurance done. What kind of supply is this?
date of winding up of business shall hence be a. Mixed supply
classified as: b. Composite supply
a. Supply of Goods c. None of the above
b. Supply of Services d. Don’t know
c. Does not qualify as supply
MCQ
5
53. Mr. A went into ABC outlet and purchased a gift 59. ABC Pvt. Ltd. makes certain supplies to Mr. X and
wrap containing canned foods, sweet, chocolates, Mr. Z. Both of them hold 51% of the voting rights
cakes, dry fruits, aerated drink and fruit juices. in the company and exercise major stake in the
What type of supply it shall constitute? decision making. Does the same supply stands as
a. Composite supply related party transaction?
b. Mixed supply a. Yes
c. Non taxable supply b. No
d. Not a supply under GST c. As per the opinion of the appropriate authority
54. A person purchase a bundle of toothpaste along
with Tooth brush. Toothpaste under this case is 60. Mr. A purchased a car for personal consumption
liable to GST at 12% and tooth brush for instance which after two years of use was sold to a car
is liable to GST at 18% and is sold as a single unit dealer, ABC Motors for certain consideration.
for a single price. What shall be the tax rate Does the same qualify as supply?
applicable in case of such supply? a. No, since the supply is not made in course or
a. 18% furtherance of business
b. 12% b. Yes, since it is made for consideration
c. Nil c. Neither of the two
d. None of the above d. As per the opinion of appropriate Authority
55. Which of the following are not naturally bundled? 61. Mr. Amar being a managing director of Alpha
a. A packet of Watch, Tie and Belt Project Pvt. Ltd. made gifts to his employees worth
b. A packet of canned food, such a burger, of INR 60,000 each for assisting in the
chocolates, sweets, cakes, etc. architectural work of his house. Does the same be
c. Both considered supply?
d. None of the above a. Yes, since the value of gift exceeds the
provided limit of INR 50,000
56. All the activities covered under actionable claims b. No, since the gift is not made in course or
are exempt from tax as are entirely covered under furtherance of business
Schedule III. Do you agree? c. As per the option of appropriate authority
a. Yes, as provided under schedule III. d. No
b. No, Lottery, Betting and gambling is covered
under GST 62. ABC enterprises made gifts to its employees worth
c. As per the opinion of appropriate authority 51,000 each, in consideration of execution of a
d. None of the above particular project of the company. Does the same
qualify as supply?
57. Who are the appropriate authorities to notify a. Yes, since the value exceed 50,000 per
transaction as supply of goods or services? employee
a. Central Government b. No, since such gift is made against a
b. State Government consideration
c. Central Board of Indirect tax and Custom c. As per the opinion of the appropriate authority
d. Both A and B on the recommendation of d. None of the above
council
63. Any agreement entered into as of hire purchase or
58. Consideration within the meaning of supply instalment purchase of any goods shall be
consists of: classified as:
a. Money a. Supply of Goods
b. Any payment made in kind b. Supply of Services
c. Forbearance of any act c. Neither of the two
d. All of the above d. At the option of taxpayer
64. Mr. P has been paid Rs.50,000 by Mr. D for not

selling the goods in his vicinity for a month. Does
this constitute a supply?
a. Yes
b. No
c. At the option of Government
66. What are the elements differentiates composite

65. “Manufacture” means processing of raw material supply and mixed supply?
or inputs in any manner that results in emergence a. Nature of bundling i.e. artificial or natural
of ……………… b. Existence of principal supply
a. A new product having a distinct name, c. Both of the above
character and use d. None of the above
b. An old product having a distinct name,
character and use 67. Mr. X has sold his old furniture of the house. Does
c. A new product having a distinct name this constitute a supply?
d. Either (a) or (b) a. Yes
b. No
c. Maybe
1. What are different types of supplies covered under 3. What would be the tax rate applicable in case of
the scope of supply? composite supply?
a. Supplies made with consideration a. Tax rate as applicable on principal supply
b. Supplies made without consideration b. Tax rate as applicable on ancillary supply
c. Both of the above c. Tax rate as applicable on respective supply
d. None of the above d. None of the above
2. What are the factors differentiating composite supply 4. What would be the tax rate applicable in case of
& mixed supply? mixed supply?
a. Nature of bundling i.e. artificial or natural a. Tax rate as applicable on supply attracting the
b. Existence of principal supply lowest rate of tax
c. Both of the above b. Tax rate as applicable on supply attracting the
d. None of the above highest rate of tax
c. Tax @ 28%

Basic Cost Concept

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MCQ

64. Mr. P has been paid Rs.50,000 by Mr. D for not

66. What are the elements differentiates composite

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