Input Tax Credit and Computation of GST Liability

(a)Calculate the total GST on outward supply for the month of September, 2024 in the context of CGST Act, 2017.

( b )Divya Ltd., a registered supplier from Gujrat, is engaged in the manufacture of passenger autos. The company provides the following details of purchases made/services availed by it during the month of March, 2025 :

You are required to determine the ITC that can be availed by Divya Ltd. for the month of March, 2025 by giving brief explanations for treatment of various items. Subject to the information given above, all the other conditions necessary for availing ITC have been fulfilled.

Certain goods have been supplied by a manufacturing company under free warranty. Which one of following statements is true ?

(A)Supply is not in the course of business

(B)No GST is charged on replacements

(C)Supplier is required to reverse the ITC on the replacement part

(D)All of the above

Aggregate Turnover of a Registered Person is ₹ 15,00,000 out of which ₹ 6,00,000 is exempted turnover and ₹ 9,00,000 is taxable turnover. The common input on which GST is paid is ₹ 2,16,000. The eligible ITC on Common input as per section 17(2) is :

(A)₹ 2,16,000

(B)₹ 86,400

(C)₹ 1,08,000

(D)₹ 1,29,600

Balance in electronic credit ledger can be utilized against payment of :

(A)Output tax

(B)Interest

(C)Penalty

(D)Late fees

Input tax credit shall not be available in respect of :

(i)Goods used for personal consumption

(ii)Membership of a club provided by the employer to its employees as per company’s internal policy

(iii)Travel benefits extended to employees on vacation such as leave or home travel concession as per company’s internal policy

(A)(i)

(B)(i) and (ii)

(C)(ii) and (iii)

(D)(i), (ii) and (iii)

The biggest benefit of ITC is :

(A)Eliminating the cascading effect of taxes

(B)Reducing the cost of goods and services

(C)Paradigm shift from individuals paying more taxes to more individuals paying taxes

(D)All of the above

(b)Compute the Input Tax Credit available for the month of March, 2024 for VVIP Global Limited.

The ITC of IGST shall first be utilised towards payment of IGST on Outward Supply. The amount remaining may be utilised towards the payment of :

(A)CGST only

(B)SGST only

(C)First CGST, then SGST/UTGST

(D)First SGST, then CGST/UTGST

What is the rate of interest under GST Law as per rule 37(3) in case of reversal of ITC for non-payment of consideration within 180 days ?

(A)10% pa

(B)12% pa

(C)18% pa

(D)24% pa

If the goods are received in lots/instalment,

..................... .

(A)50% ITC can be taken on receipt of 1st lot and balance 50% on receipt of last lot

(B)ITC can be availed upon receipt of last lot

(C)100% ITC can be taken on receipt of 1st lot

(D)Proportionate ITC can be availed on receipt of each lot/instalment

A supplier takes deduction of depreciation on the GST component of the cost of capital goods as per Income-Tax Act, 1961. The supplier can :

(A)avail only 50% of the said tax component as ITC

(B)not avail ITC on the said tax component

(C)avail 100% ITC of the said tax component

(D)avail only 25% of the said tax component as ITC

ITC on purchase of motor vehicles used for making ................. is allowed.

( i )Transportation of goods

( ii )Taxable supplies of transportation of passengers

( iii )Taxable supplies of imparting training on driving

(A)(i)

(B)(i) and (ii)

(C)(ii) and (iii)

(D)(i), (ii) and (iii)

Input Tax Credit (ITC) is available in respect of tax paid on :

(A)Goods used for personal consumption

(B)Free samples

(C)Services on which tax has been paid under composition levy

(D)None of the above

If a registered person has claimed depreciation on the ........... of the capital goods and plant and machinery under the provisions of the Income Tax Act, the input tax credit on the said tax component shall not be allowed in CGST Act.

(A)Cost

(B)Tax component of the cost

(C)WDV

(D)Realisable value

Which of the following can avail of, every month, an amount equal to 50% of the eligible input tax credit on inputs, capital goods and input services of that month ?

(A)Banking Company

(B)Non-banking financial company

(C)Financial institution

(D)All the above

Maurya Traders engaged in wholesale trade, made inter-state supply of ₹ 8, 00,000 (without GST) in October, 2022. The rate of GST applicable is 12%. It has input tax credit viz. in ITGST ₹ 40,000; SGST ₹ 60,000; and CGST ₹ 20,000. After adjustment of ITC, how much would be available in the credit ledger of Maurya Traders?

(A)SGST ₹ 4,000 and CGST ₹ 20,000

(B)SGST ₹ 24,000

(C)S GST ₹ 60,000 and CGST Nil

(D)ITGST ₹ 24,000

Gautam & Co. has ₹ 2, 15,000 in electronic credit ledger as on 1st January, 2023. For the month of January, 2023 it has input credit of ₹ 60,000 and output tax for supplies of ₹ 1,20,000. In the assessment order passed on 15th January, 2023 it has t o pay penalty of ₹ 40,000, interest of ₹ ₹ 30,000 and fee of ₹ 5,000. After adjustment of eligible items how much would be available in its electronic credit ledger?

(A)₹ 1, 55,000

(B)₹ 1, 15,000

(C)₹ 85,000

(D)₹ 80,000

M & Co. purchased raw material 500 kgs @ ₹ 60 per kg plus GST @ 12% thereon. It manufactured a product which is exempt from GST. How much M & Co. can claim ITC in respect of raw materials so purchased?

(A)Nil

(B)₹ 3,600

(C)₹ 1,800

(D)₹ 2,400

Rosy & Co. became liable to pay GST from 1st October, 2022 and obtained registration on 25th October, 2022. From which date it is eligible to take ITC in respect of raw materials/finished goods and capital work in progress held by it?

(A)As on 31st October, 2022

(B)As on 25th October, 2022

(C)As on 1st October, 2022

(D)As on 30th September, 2022

MC (P) Ltd. acquired 4 motor cars meant for directors use and for use of the company. The GST paid thereon amounts to ₹ 6, 20, 000. How much of the GST paid is eligible for input tax credit?

(A)₹ 6, 20,000

(B)₹ 3, 10,000

(C)₹ 62,000

(D)Nil

Which one of the following is not a condition as per section 16(2) of CGST Act, 20l7, to avail Input Tax Credit (ITC):

(A)Recipient has possession of tax invoice issued by supplier

(B)Goods or Services is actually consumed by Recipient

(C)Filing of valid return by supplier

(D)Supplier pays the tax to the government

Determine the amount of Input tax credit admissible to PQR Ltd. in respect of the following goods procured by it in the month of January 2022:

Goods used in construction of an additional floor of office building ₹ 25,000

Packing Materials used in a factory ₹ 8,000 Goods destroyed due to natural calamities ₹ 17,000

(A)₹ 25,000

(B)₹ 8,000

(C)₹ 7,000

(D)₹ 50,000

Input Tax credit as credited in Electronic Credit ledger can be utilized for:

(A)Payment of Interest

(B)Payment of late fees

(C)Payment of Taxes

(D)Payment of Interest and payment of late fees both

A dealer has an SGST Credit of ₹ 4 Lakh in his ITC ledger for the month of December 2021 and the same month he has CGST output Liability of ₹ 3 Lakh. What an amount should be deposited by that dealer to his Electronic cash ledger maintained in GSTN portal to file a valid return?

(A)No deposit is required

(B)₹ 4 Lakh

(C)₹ 3 Lakh

(D)₹ 1 Lakh

Which of the following liability cannot be adjusted against input tax credit of UTGST ?

(A)IGST

(B)UTGST

(C)CGST

(D)Both(A) and (C)

Bharath Ltd is engaged in making Sweets. The Company on Diwali, distributed the same sweets to its employees. Can the company claim ITC in respect to the inputs used in making such gifts to its employees?

(A)Yes

(B)No

(C)Yes, after approval from GST Commissioner

(D)Yes, to the extent of 50% of Inputs

As per Section 17 of CGST Act, 2017, for banking companies using inputs and input services partly for taxable supplies and partly for exempt supplies, which of the following statement is true?

(A)ITC shall be compulsorily restricted to credit attributable to taxable supplies including zero rated supplies

(B)50% of eligible ITC on inputs, Capital goods and input service shall be mandatorily taken in a month and rest shall lapse

(C)Either (a) or (b) at the option of banking company

(D)None of the above

What should be the treatment of tax element in a capital asset under CGST Act, 2017?

(A)Capitalize the same and claim depreciation thereon

(B)Claim the ITC at first instance

(C)Either (A) or (B)

(D)Both (A) and (B)

Balance in electronic credit ledger under IGST can be used against which liability:

(A)IGST Liability only

(B)IGST and CGST liability only

(C)IGST, CGST and SGST liability

(D)None of the above

In case of exports and supplies to SEZs, no tax is payable. In these cases on the inputs used :

(A)ITC is allowed

(B)ITC is not allowed

(C)ITC is allowed provided the export results into inflow of foreign currency

(D)ITC @ 50% is allowed up to inflow of foreign currency and amount from SEZs

The ITC as self-assessed in the return of a registered person shall be credited to :

(A)Electronic Liability Ledger

(B)Electronic Cash Ledger

(C)Electronic Credit Ledger

(D)Electronic Available Ledger

As per section 16 of CGST Act, 2017, whether credit on inputs can be availed based on receipt of documents and or on receipt of goods :

(A)Receipt of goods

(B)Receipt of documents

(C)After receipt of goods and documents

(D)Either receipt of documents or Receipt of goods

Sathvik has received the goods in 5 lots in respect of a single invoice. Which of the following is in accordance with the first proviso to section 16(2) of CGST Act, 2017:

(A)100% ITC can be taken on receipt of 1st lot

(B)50% ITC can be taken on receipt of each lot

(C)100% ITC can be availed upon receipt of last instalment of the lot

(D)None of the above

A GST registered manufacturing company furnished the following information for the month of December 2020 :

(a)Goods and services on which tax has been paid by the supplier under section 10 of ₹ 10,000

(b)Capital goods used for construction of building of ₹ 5,000

(c)Laptop to be used within factory office of ₹ 25,000 You are required to calculate input tax credit available to it.

(A)₹ 40,000

(B)₹ 25,000

(C)₹ 30,000

(D)No input tax credit

Under model of GST adopted by India taxes paid on the inward supplies made by a registered person is available as Input Tax Credit (ITC), which can be utilized for making payments as per section 49 of the CGST Act, 2017. The ITC of CGST can be utilized for :

(A)CGST only

(B)SGST only

(C)1st SGST & then IGST

(D)1st CGST & then IGST

XYZ Ltd of Jaipur purchased on 1.8.2019 a machine for ₹ 10 lakh and paid IGST @ 12%. The ITC of the capital goods used in business was claimed till the machine was sold on 5.12.2020 for ₹ 6,00,000 to Yadav Enterprises of Jaipur by charging tax under GST @ 12%. Find out the amount of tax payable/ITC reversible.

(A)₹ 1,56,000

(B)₹ 84,000

(C)₹ 72,000

(D)₹ 90,000

Chandra Prakash acquired a capital asset on 1st April, 2019 which was used for manufacturing and production of goods/ supplies which are exempt under CGST Act, 2017. However, the Government, by the notification issued in November, 2020 made the supplies so manufactured as taxable. Cost of the capital asset was ₹ 5,00,000 on which GST @ 18% was charged. Amount of input tax credit (ITC) on such capital asset available for the reason of asset now being used in the production of taxable supplies shall be .......................

(A)₹ 90,000

(B)₹ 63,000

(C)₹ 58,500

(D)₹ 54,000

As per section 16 of the CGST Act, 2017 relating to eligibility and conditions for taking Input Tax Credit (ITC); state when the Input Tax Credit (ITC) be available where the goods are received in lots/installments;

(A)50% be taken on receipt of 1st installment and balance 50% on receipt of last installment of goods

(B)ITC can be availed upon receipt of last installment of goods

(C)Proportionate ITC can be availed on receipt of each lot/installment of goods

(D)100% ITC can be taken on receipt of 1st installment of goods.

Kuber, a registered person under GST as the proprietor of M/s Natraj Restaurant died on 15.07.2020 and left behind his wife & son. His son wants to continue the business of the deceased father and therefore consulted the tax consultant to complete the formalities under the CGST Act, 2017. The consultant had given which out of the following advices to the son for carrying the business of Natraj Restaurant after the death of his father.

(A)The son should get himself registered by filing application in GST–REG - 01under the name of M/s Natraj Restaurant, in his own PAN and should also file form GST–ITC – 02.

(B)The son can get the authorized signatory changed by filing an application to the proper officer and can continue the same business in the capacity of legal heir.

(C)The son should close the old firm and start new business under different name or in the same name by filing application for registration.

(D)The son should do business in the capacity of a Manager and by making the wife of deceased (his mother) as the proprietor of M/s Natraj Restaurant.

Electronic Credit Ledger (ECL) shall be maintained in GST-PMT-2 by each registered person. State which out of the following are debited to the Electronic Credit Ledger :

(A)Matched input tax credit

(B)Provisionally input tax credit

(C)Unmatched input tax credit

(D)All of the above

The self assessed input tax credit (ITC) in the return filed in form GSTR-3B of the registered person shall be credited to his ........................ in accordance with section 41 or section 43A of the CGST Act, 2017.

(A)Electronic Credit Ledger

(B)Electronic Cash Ledger

(C)Electronic Liability Ledger

(D)Electronic Ledger

Which out of the following is the false statement regarding eligibility and conditions for taking input tax credit as per section 16 of CGST Act ?

(A)Every registered person is eligible to take credit of GST charged to him for his inward supply of goods/services if he uses such supplies in course or furtherance of his business.

(B)Payment of tax and filing of return is also necessary to claim ITC.

(C)Where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take credit upon receipt of the last lot or installment.

(D)Depreciation under section 32 of the Income Tax Act shall be claimed on the tax portion on which ITC has been claimed.

Section 17 of CGST Act, 2017 where a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advance shall have the option to either comply with the provision of sub section (2), or avail of, every month, an amount equal to________ of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse.

(A)30%

(B)40%

(C)50%

(D)60%

The maximum time limit for availing Input Tax Credit (ITC) in CGST Act, 2017 :

(A)90 days

(B)180 days

(C)One year

(D)Two years

A banking company has ₹ 52,000 by way of input tax credit for the month of January, 2021. How much of input tax credit it can avail and how much would lapse ?

(A)₹ 26,000 and balance 50% of ITC would lapse

(B)₹ 13,000 and balance 75% of ITC would lapse

(C)₹ 39,000 and balance 25% of ITC would lapse

(D)₹ 52,000 and nothing would lapse

Purchase invoices beyond what period are not eligible for input tax credit ?

(A)6 months

(B)1 year

(C)2 years

(D)9 months

Balaram has made purchase of raw material vide invoice dated 11.01.2021 which has IGST of ₹ 24,000 (18%). Up to which date, he is entitled to take input tax credit ?

(A)10.07.2021

(B)10.01.2022

(C)10.01.2023

(D)10.10.2021

Chand & Co. bought a machine for ₹ 3 lakhs on 01.04.2019 plus GST @ 18% was charged on it. The goods manufactured became chargeable w.e.f. 01.08.2020. How much of input tax credit on such machinery purchase could be availed after the goods manufactured by it became taxable under GST ?

(A)₹ 40,500

(B)₹ 27,000

(C)₹ 54,000

(D)₹ 37,800

The amount available in electronic credit ledger cannot be used for payment of which of the following :

(A)Interest

(B)Penalty

(C)Fees

(D)All of the above

According to Rule - 3 of CGST Rules, any registered person opts to pay tax under section 10 of the CGST Act, 2017 shall file an intimation in Form GST ________ prior to commencement of financial year and shall also furnish the statement in Form GST ________ within 60 days from the commencement of relevant financial year.

(A)CMP-01, ITC-1

(B)CMP-02, ITC-3

(C)CMP-03, ITC-3

(D)CMP-02, ITC-2

A GST registered manufacturing company provides the information and particulars of GST paid for the month of December, 2019 on (a) goods and services where tax has been paid by supplier under section 10 of the CGST Act, 2017 of ₹ 20,000 (b) capital goods used for construction of building of ₹ 10,000 (c) laptops to be used within factory office of ₹ 35,000. You are required to work out the amount of available input tax credit (ITC).

(A)₹ 45,000

(B)₹ 55,000

(C)₹ 65,000

(D)₹ 35,000

Input tax credit (ITC) as per section 16 of the CGST Act, 2017 be available to a registered person on fulfillment of certain conditions. Find from the following which are such conditions :

(i)Possession of tax invoice

(ii)Receipt of the goods or services

(iii)Tax has been paid to supplier

(iv)Furnished return u/s 39

(A)(i) & (ii)

(B)(i), (ii) & (iii)

(C)(i), (ii) & (iv)

(D)all the above four

A registered person shall not be entitled to take input tax credit (ITC) as per section 18(1) of the CGST Act, 2017 in respect of any supply of goods or services or both after the expiry of ---------- from the date of issue of tax invoice relating to such supply.

(A)6 Months

(B)9 Months

(C)2 Years

(D)1 Year

Chetan Prasad purchased a machine of value of ₹ 2,50,000 on which GST at the rate of 18% was charged in invoice dated 03-04-2018. This machine was used by him in manufacturing of exempted supplies. However, the supplies manufactured by him become taxable from 01-11-2019. He claims that he is entitled for ITC on this machine because being used in manufacturing of taxable supplies. Find the amount of ITC available to him if any, relating to this machine as per rule 40(2) of the CGST Rules, 2017.

(A)₹ 29,250

(B)₹ 45,000

(C)₹ 31,500

(D)₹ 22,500

Inox Ltd engaged in manufacture of electrical appliances provides the details of the GST paid on various items during the month of January, 2020 and asks you to find out the amount of input tax credit (ITC) available to them :

(A)₹ 5,25,000

(B)₹ 5,00,000

(C)₹ 7,50,000

(D)₹ 7,75,000

Which of the following supply of goods or services is eligible for input tax credit?

(A)Purchase of motor vehicle for supply of goods

(B)Membership fee for health club

(C)Food and beverages to employees

(D)Cost of paint for office building

A registered taxable person is eligible to obtain Input Tax Credit (ITC) as per section 16 of the CGST Act, on fulfilling of certain conditions which consist of that such person should :

(i)Be in possession of tax invoice

(ii)Have received the goods

(iii)Supplier have not paid the tax charged

(iv)Supplier have furnished the return u/s 39

(A)(i), (ii) & (iv)

(B)(i), (iii) & (iv)

(C)(i), (ii) & (iii)

(D)(i), (ii), (iii) & (iv)

ABC Ltd. is engaged in manufacture of electrical appliances supply following details relating to GST paid on various items by them :

The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be .............. .

(A)₹ 2,00,000

(B)₹ 2,12,500

(C)₹ 52,500

(D)₹ 1,00,000

The Input Tax Credit (ITC) is being credited to ........................ of a person which may be used by the person to pay his out-put tax liability.

(A)Electronic Cash Ledger

(B)Electronic Credit Ledger

(C)Electronic Tax Ledger

(D)Electronic Tax Credit Ledger

Zebra, a supplier of goods located at Jaipur paid GST under regular scheme both Interstate and Intra-state. The supplies are chargeable to GST @ 18% The outward taxable supply in the month of February, 2019 made by him of Intrastate ₹ 12,00,000 and Inter-state ₹ 5,00,000. The total tax liability under GST Act on both these supplies shall be ........................., if he is having the Opening Balance of ITC available of ₹ 45,000 each under CGST and SGST and of ₹ 55,000 under IGST.

(A)₹ 3,06,000

(B)₹ 2,16,000

(C)₹ 1,61,000

(D)₹ 1,71,000

The registered person, in case of supply of capital goods or of plant and machinery on which input tax credit (ITC) has been availed/ taken shall pay an amount equal to the Input Tax Credit on such capital goods or plant and machinery which is being arrived at by reducing the Input-tax at ________ percentage points for every quarter or part thereof from the date of issue of invoice of such goods or the tax on the transaction value of such capital goods, whichever is higher.

(A)3

(B)5

(C)6

(D)2

Radhey & Company registered supplier paying GST under regular scheme had made Interstate Taxable Supply of ₹ 8,00,000 and Intrastate Taxable Supply of ₹ 6,00,000 chargeable under CGST, SGST, and IGST at the rates of 9%, 9% and 18% respectively. He is having available amount of ITC under CGST of ₹ 30,000 and under SGST of ₹ 20,000. Supplies made are exclusive of taxes. Amount of the total tax payable as CGST, SGST and IGST after availing the amount of ITC by Radhey & Company on such supplies shall be of ?

(A)2,30,000

(B)2,00,000

(C)2,22,000

(D)2,26,000

(c)SS Ltd., a registered person under GST, is manufacturing taxable goods. The company supplies following information relating to GST paid on purchases made and input services availed in July, 2018 :

GST Paid ₹

Calculate the amount of input tax credit available to SS Ltd., for the month of July, 2018. Assume that all the conditions for availing ITC are satisfied.

(e)Explain in brief, how the imports and/or exports will be taxed under the GST law and whether any set off will be available as Import Tax Credit (ITC) of the IGST paid on such imports and/or exports.

(i)True Sai Cars Pvt. Ltd., Tamil Nadu is a dealer in cars. They import cars from abroad and sell it to customers in India. On 20th March, 2018, they have imported cars from Japan, as per following details :

True Sai Cars Pvt. Ltd., are eligible to claim input tax credit (ITC). Their output IGST liability, before taking credit for ITC is ₹ 130 lakh. Compute the net liability towards customs duty and IGST.

(a)Compute the value of Output Tax Liability under GST for M/s Khatri Electronics Pvt. Ltd. for the month of August, 2025.

(c)Compute the Net minimum GST payable in cash (CGST/SGST/IGST) for M/s Khatri Electronics Pvt. Ltd. for the month of August, 2025.

(b)Compute the value of Output Tax Liability under the GST for M/s Optitech Solutions Pvt. Ltd.

for the month of August, 2025.

(d)Compute the Net minimum GST payable by M/s Optitech Solutions Pvt. Ltd. for the month of August, 2025.

(c)Calculate the Net GST liability payable for the month of September, 2024 and also calculate Balance left in electronic credit ledger on September 30, 2024, if any, in the context of CGST Act, 2017.

(c)Compute the Output Tax Liability for the month of March, 2024 for VVIP Global Limited.

Mahesh Electronics Ltd. engaged in manufacture of electronic products, gifted one laptop to Suresh, CFO of the company, free of cost on the occasion of Diwali. The regular sale price of laptop was ₹ 72,000 and the cost of laptop was ₹ 54,000. Assume th e rate of GST as 5%. How much is the GST payable in respect of such gift?

(A)₹ 200

(B)₹ 3,600

(C)₹ 2,700

(D)₹ 1,100

Leather & Co. of Kanpur commenced business on 10th August, 2022 applied for registration on 20th August, 2022 voluntarily. The supply is liable for GST @ 12%. For the month of August, 2022 its taxable outward supply was ₹ 8 lakh. How much is the GST payable for August, 2022 on the assumption that it has ITC of ₹ 40,000 for the same month?

(A)₹ 96,000

(B)₹ 56,000

(C)₹ 40,000

(D)Nil

Ramesh purchased a plant a nd machinery before commencement of business for ₹ 5 lakh on which GST payable was @ 12% being ₹ 60,000. He commenced business 2 months later. How much is eligible for input tax credit in respect of plant and machinery so acquired before commencement of business?

(A)Nil

(B)₹ 60,000

(C)₹ 30,000

(D)₹ 15,000

HP Ltd. is engaged in manufacture of taxable goods. Compute the ITC available for the month of October, 2021 from the following particulars:

Input ‘A’ ₹ 2,30,000 out of which one invoice on which GST Payable was ₹ 60,000 is missing.

Input ‘B’ ₹ 75,000 in which inputs are received in 5 installments (Second installment received in Oct. 2021).

(A)₹ 3,05,000

(B)₹ 2,45,000

(C)₹ 1,70,000

(D)₹ 1,85,000

X of Jaipur, registered dealer, purchased goods from Y of Kota, unregistered dealer for ₹ 10,00,000. He sold the same goods to Z of Kota, registered dealer, at Profit margin of 20% on Purchase Cost. GST rate on such goods is 12%. Compute the GST payable by X.

(A)CGST ₹ 72,000 and SGST ₹ 72,000

(B)CGST ₹ 60,000 and SGST ₹ 60,000

(C)CGST ₹ 12,000 and SGST ₹ 12,000

(D)CGST ₹ 24,000 and SGST ₹ 24,000

As per section 50 of the CGST Act, 2017 interest not exceeding……..calculated from the next day of the due date has to be paid for delay of payment. Interest on undue or excess claim of ITC or excess reduction in output tax liability shall not be exceeding ....................

(A)24%, 18%

(B)18%, 24%

(C)12%, 18%

(D)18%, 12%

What will be maximum rate of interest, if a taxable person who makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability ?

(A)12%

(B)18%

(C)24%

(D)36%

Rex Ltd. purchased a machine for ₹ 5 lakhs plus GST 12% on 01.05.2019. It availed input tax credit and used the machine for manufacture of goods. On 12.12.2020, the machine was sold to its allied concern for ₹ 1,50,000 plus GST @ 12%. How much is the GST payable on sale of machine ?

(A)₹ 39,000

(B)₹ 36,000

(C)₹ 33,000

(D)₹ 18,000

Alpha Ltd dispatched on 10.09.2019 raw material to Beta Ltd for conversion into finished product. Beta Ltd manufactured and supplied finished goods to Alpha Ltd on 10.01.2021. The input tax credit on raw materials @ 5% was ₹ 3 lakhs. The finished goods were sold on 17.01.2021 for ₹ 100 lakhs and output tax was @ 12%. What would be the net output tax liability ?

(A)₹ 12 lakhs

(B)₹ 9 lakhs

(C)₹ 7 lakhs

(D)NIL

A & Co. has output tax of IGST of ₹ 50,000; CGST ₹ 60,000 and SGST ₹ 90,000. It has input tax credit by way of IGST ₹ 90,000, CGST ₹ 30,000; SGST ₹ 38,000. How much is the net tax liability/ITC after set off ?

(A)IGST=Nil/CGST=Nil/ SGST= ₹ 42,000

(B)IGST=Nil/CGST= ₹ 30,000/S GST= ₹ 12,000

(C)IGST= ₹ (40,000)/CGST= ₹ 30,000/ SGST = ₹ 52,000

(D)IGST input = ₹ 11,000/CGST= Nil/ SGST = ₹ 52,000

As per section 50 of CGST Act, 2017 interest not exceeding -------------- calculated from the next day of the due date has to be paid for delay of payment. Interest on undue or excess claim of ITC or excess reduction in output tax liability shall be not exceeding ---------------

(A)24%; 18%

(B)12%; 18%

(C)18%; 24%

(D)18%; 12%

(a)A, a supplier of goods, pays GST under regular scheme. He is not eligible for any threshold exemption. He has made the following outward/inward taxable supplies in a tax period :

(1)Rate of CGST, SGST & IGST is 9%, 9% and 18% respectively.

(2)Both inward and outward supplies are exclusive of taxes, wherever applicable.

(3)All the conditions necessary for availing ITC have been fulfilled.

Compute the NET GST payable by Mr. A during the tax period. Make suitable assumptions as required.

(b)PQ Ltd. a manufacturer of taxable goods provides the following information regarding inward supplies for the month of September, 2018 :

Sr. No. Items GST Paid ( ₹ )

1.Input A (one invoice on which GST payable was ₹ 20,000 is missing) 2,00,000

2.Input B (input is to be received in three installments last installment to be received in November 2018) 4,00,000

3.Capital goods (invoice value being ₹ 2,00,000 inclusive of GST but only ₹ 1,80,000 has been debited to asset a/c) 20,000

4.Input services (one invoice dated 22-01-2018 on which GST payable was ₹ 40,000 has been received in Sept. 2018 whereas annual return for the financial year 2017-18 was filed on 25th October 2018) 1,50,000

Compute the Input Tax Credit (ITC) available to PQ Ltd. for the month of September, 2018.

(i)All the conditions necessary for availing the ITC have been fulfilled.

(ii)PQ Ltd. is not eligible for any threshold exemption.

Goods may be transported without issue of invoice in case of :

(A)Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known

(B)Transportation of goods for job work

(C)Transportation of goods for reasons other than by way of supply

(D)All of the above

A registered person (hereafter in this section referred to as the ‘‘principal’’) may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, ...................., to a job worker for job work.

(A)With Payment of Tax (25%)

(B)With Payment of Tax (50%)

(C)With Payment of Tax (75%)

(D)Without Payment of Tax

A shirt manufacturing company sends semi- finished shirts (without collars and pockets) to job workers who will complete the remaining work. In such a situation, the ......... would be allowed to take the credit of the tax paid on purchases of the goods sent for job work.

(A)Job Workers

(B)Principal Manufacturer

(C)Both of the above

(D)None of the above

When the Goods are sent by one job worker to another job worker, the challan may be issued by :

(A)Principal or job worker sending the goods to another job worker

(B)Principal or job worker receiving the goods from another job worker

(C)Principal only

(D)Either of the job worker only

(a)Determine the eligible input tax credit available to Majumdar Industries for the month of December, 2023 by giving brief explanations for treatment of various items.

(b)State the time limit for return of semi-finished goods sent to job workers including moulds and dies given to them. When would such movement be treated as supply of goods ?

Park Ltd. sent its moulds, dies, jigs and fixtures on 1st June, 2019 to job worker for use in the job work given by it. The cost of moulds, dies, jigs and fixtures was ₹ 3 lakh and GST paid thereon was ₹ 36,000. The job worker has not returned the moulds and dies, jigs and fixtures till 31st March, 2023. How much would be taken as deemed supply by Park Ltd. to the job worker?

(A)Nil

(B)₹ 1, 20,000

(C)₹ 80,000

(D)₹ 3 6,000

Ram & Co. sends goods to job worker on 10th August, 2021 and the value of supply was ₹ 4 lakh plus GST @ 5% thereon. The job worker returned the goods after completing the job work on 5th October, 2022 with value of supply being ₹ 5 lakh excluding GST @ 5%. How much would be the GST for the goods returned by the job worker in October, 2022?

(A)Nil

(B)₹ 20,000

(C)₹ 25,000

(D)₹ 5,000

The time limit beyond which if inputs sent for job work is not returned will be treated as supply in CGST Act, 2017:

(A)1 Year

(B)2 Years

(C)3 Years

(D)5 Years

Principal entitled for input tax credit on capital goods sent for job work in CGST Act, 2017:

(A)If goods sent are returned within one year

(B)If goods sent are returned within three years

(C)If goods sent are returned within six months

(D)If goods sent are returned within nine months

Under GST regime, when goods are sent from a taxable person to a job worker it shall be treated as supply and will be liable to GST if the goods so sent are not received back within _________ in case of ‘‘inputs’’ and _______ in case of ‘‘capital goods’’, as case may be.

(A)180 days, One year

(B)Three Years, One Year

(C)One Year, Three Years

(D)Three Years, Five Years

Trade LLP sent raw materials to a job worker on 01.06.2020. The raw materials were processed and became finished product. Within how many days the finished goods is either be brought back to its place or sold on its behalf from the premises of job worker ?

(A)4 months

(B)6 months

(C)1 year

(D)2 years

Under GST regime, when goods are sent from a taxable person to a job worker it shall be treated as supply and will be liable to GST, if the goods so sent are being not received back within __________ or _________ in case of inputs or capital goods as the case may be.

(A)6 months; 1 year

(B)1 year; 18 months

(C)1 year; 3 years

(D)1 year; 2 years

Sun & Co. purchased raw materials from supplier vide invoice dated 1-7-2018. It was sent directly to job worker, Moon Industries on 7-8-2018 as per the direction of Sun & Co., by the supplier of goods. The job worker Moon Industries has not completed the job work up to 31-3-2019. What is the maximum time limit within which the goods have to be sent to Sun & Co. from job worker, Moon Industries?

(A)31-3-2020

(B)30-6-2019

(C)6-8-2019

(D)31-8-2019

When the goods are sent to job worker, input tax credit will be reversed if the goods are not received back by the principal after completion of job work within of being sent out.

(A)3 months

(B)6 months

(C)1 year

(D)3 years

The stipulated time limit within which inputs and capital goods sent to a job worker in a job work, shall be brought back and beyond that period it will be treated as supply and tax is payable by the principal as per CGST Act, 2017 is.........

(A)6 months and 1 year in case of inputs and capital goods respectively

(B)1 year and 2 years in case of inputs and capital goods respectively

(C)1 year and 3 years in case of inputs and capital goods respectively

(D)None of the above

(b)Compute the value of eligible Input Tax Credit under GST for M/s Khatri Electronics Pvt. Ltd. for the month of August, 2025.

(c)Arihant Ltd., a registered supplier from Rajkot, is engaged in the manufacture of heavy machinery. The company provides the following details of purchases made/services availed by it during the month of July, 2025 :

You are required to determine the ITC that can be availed by Arihant Ltd. for the month of July, 2025 by giving brief explanations for treatment of various items. Subject to the information given above, all the other conditions necessary for availing ITC have been fulfilled.

(c)Compute the value of Input Tax Credit under the GST for M/s Optitech Solutions Pvt. Ltd. for the month of August, 2025.

(c)M/s Delta Manufacturers Ltd., a registered company in Gujarat, is engaged in manufacturing of taxable goods. The following transactions took place during the month of July, 2025 :

(i)Purchased raw materials worth ₹ 10,00,000 + GST @ 18% from M/s Alpha Traders (a registered supplier). Payment was made on 15th November 2025.

(ii)Purchased a passenger vehicle (sedan) for use by the Director for official and personal purposes : ₹ 12,00,000 + GST @ 28% + Cess @ 12%.

(iii)Paid outdoor catering charges to a caterer for employee meals in the factory canteen : ₹ 50,000 + GST @ 5% (under composition scheme).

(iv)Incurred construction expenses of ₹ 5,00,000 + GST @ 18% for building an additional floor on the factory building (capitalized in books).

(v)Purchased office stationery worth ₹ 25,000 + GST @ 12% from a registered supplier. The invoice was uploaded in GSTR-1 after the due date by supplier and it was not reflected in GSTR-2B in the month of July, 2025.

You are required to compute the eligible Input Tax Credit for M/s Delta Manufacturers Ltd., for the month of July, 2025 by giving brief explanations for each item separately. Subject to the information given above, all the other conditions necessary for availing the ITC have been fulfilled unless specified above.

(b)Calculate the total input tax credit available for the month of September, 2024 in the context of CGST Act, 2017.

Which one of the following is the case of Blocked Credit ?

(A)Goods lost due to theft

(B)Goods destroyed due to fire

(C)Goods destroyed due to national calamities

(D)All of the above

In terms of Section 17(5) of CGST Act, Blocked credit means the inward supply of goods or services on which ITC :

(A)Shall be allowed provisionally

(B)Shall be allowed fully

(C)Shall not be allowed forever

(D)Shall not be allowed provisionally

(c)Shyam Ltd., a registered person, is engaged in the business of spices. It provides following details in relation to GST paid on inward supplies procured by it during the month of March, 2023 :

Determine the amount of ITC that can be availed by Shyam Ltd. for the month of March, 2023 by giving the necessary explanation for treatment of various items. Subject to the information given above, all the other conditions necessary for availing ITC have been fulfilled.

As per Section 17(5) of CGST Act, 2017, ITC of motor vehicles is allowed for following:

(i)Vehicle used for Transportation of goods

(ii)Vehicle used for Transportation of passengers having seating capacity of 15 persons

(iii)Vehicle used for Taxable supplies of imparting training on driving

(A)(i) and (iii)

(B)(ii) and (iii)

(C)(i), (ii) and (iii)

(D)Only (ii)

Shakthi limited purchases an aircraft for the purpose of transportation of goods manufactured by it. ITC shall be ............. for the GST paid on the aircraft.

(A)allowed

(B)blocked under Section 17(5)

(C)allowed to the extent of 50%

(D)blocked under section 17(5) to the extent of 50%

Find from the following which inward supplies are not eligible under section 17(5) of the CGST Act for input tax credit (ITC) in case of a company who is engaged in manufacturing of Paints and Chemicals :

(A)Trucks used in supply of finished goods

(B)Food and beverages consumed by workers in factory

(C)Life and health insurance paid for staff as per Government policy

(D)Motor vehicle of sitting capacity of 12 (excluding driver)

(i)Compute the amount of Input Tax Credit available to GK Ltd. in respect of the following items procured by it in April, 2018 :

GST Paid ₹

(a)Ram & Shyam LLP, engaged in the business of manufacturing of domestic use electrical items, provides the following details relating to the amount of GST paid on various items and asks you to suggest whether any Input Tax Credit

under the CGST Act, 2017 be available against such items to them :

The ISD Mechanism is based on the concept of ...................... .

(A)Distributing the credit on common invoices pertaining to Input Services

(B)Distribution of goods (inputs or capital goods) among the branches

(C)Both (A) and (B)

(D)Neither (A) nor (B)

Aryan Ltd has its head office (HO) at Mumbai and branches located at different places in different states across India. The HO collects the ITC on all purchases made and distributes the ITC amongst the branches as CGST, SGST, UTGST, IGST. Find out the type of entity, which is being exhibited by Aryan Ltd as per provisions of CGST Act, 2017.

(A)Taxable Entity

(B)Input Service Distributor

(C)Principal and Agent

(D)HO and Branches

Input Service Distributor (ISD) is required to file monthly return by ---------- of the following month in form ----------------.

(A)13th; GSTR-6

(B)18th; GSTR-5

(C)13th; GSTR-4

(D)18th; GSTR-3

Input Service Distributor (ISD) may distribute the CGST credit within the State as :

(A)UTGST

(B)CGST

(C)SGST

(D)Any of the above

The credit of tax paid on input services used by more than one supplier be distributed as per provisions of the CGST Act, 2017 ...........

(A)only to one supplier

(B)equally among all the suppliers

(C)among the suppliers who used such input service on pro rata basis of turnover in such state

(D)cannot be distributed

(d)What is the order of utilization of input tax credit as per CGST Rules, 2017.

IGST paid is available as credit as in order to set off against the payment of ................. on output supplies.

(A)IGST

(B)IGST and CGST

(C)CGST and SGST

(D)IGST, CGST and SGST

Which of the following utilization of input tax credit is not permitted ?

(i)ITC of IGST against CGST

(ii)ITC of SGST against CGST

(iii)ITC or IGST against SGST

(iv)ITC of UTGST against CGST

(v)ITC of CGST against UTGST

(A)(i), (ii) and (iii)

(B)(ii), (iii) and (iv)

(C)(ii), (iv) and (v)

(D)(iii), (iv) and (v)