Goods and Services Tax (GST)

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Questions and Answers

ABC Ltd. is providing taxable services of ₹500,000. They are eligible for input tax credit of ₹300,000. What is their net GST liability payable in cash?

₹300,000
₹200,000 (correct)
₹800,000
₹500,000

Exempt supplies are included in the aggregate turnover for GST registration purposes.

True (A)

What condition must be satisfied to avail input tax credit?

Possession of a tax invoice or debit note, receipt of goods or services, payment of tax, and filing of return.

Under RCM, the liability to pay GST lies with the _______ of goods or services.

recipient Signup and view all the answers

Match the following situations with their respective place of supply:

Supply of goods where movement is involved = Location where the movement of goods terminates for delivery to the recipient Supply of services directly related to immovable property = Location where the immovable property is located Supply of telecommunication services = Location of recipient of services Supply of training and performance appraisal services = Location where the services are actually performed Signup and view all the answers

Which of the following credits is usually blocked under GST?

Input tax credit on motor vehicles for personal use (A) Signup and view all the answers

Continuous Supply of Services is when service is provided continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations.

True (A) Signup and view all the answers

What is the time of supply of goods under forward charge if the invoice is not issued?

The date of removal of goods, or the date of making goods available to the recipient, whichever is earlier. Signup and view all the answers

Payment of GST under RCM is always to be done by _______ only.

cash Signup and view all the answers

XYZ Ltd. received services from an advocate. Under which mechanism is XYZ Ltd. liable to pay GST?

Reverse Charge (C) Signup and view all the answers

Flashcards

What is GST?

Tax levied on most goods and services sold for domestic consumption.

What is Reverse Charge Mechanism (RCM)?

A mechanism where the recipient of goods or services is liable to pay GST instead of the supplier.