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CA Final Paper 5: IDT study materials
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CA Final Paper 5: IDT practice questions

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Question 1Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Under the Constitution (One Hundred and First Amendment) Act 2016, the power to make laws on goods and services tax in respect of supplies in the course of inter-State trade or commerce is vested in which legislature?

  1. The GST Council, which exercises delegated legislative power
  2. Both Parliament and the State Legislature concurrently under Article 246A(2)
  3. Parliament, under Article 269A read with the IGST Act Correct answer.
  4. The State Legislature where the supplier is registered

Explanation

Article 269A empowers Parliament alone to make laws for the levy and collection of IGST on supplies in the course of inter-State trade or commerce, and the IGST Act is enacted under this provision. Article 246A(2) gives exclusive power to Parliament over inter-State supplies, while the GST Council under Article 279A is only a recommendatory constitutional body and does not legislate.

Question 2Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Which article of the Constitution, inserted by the 101st Constitutional Amendment, confers simultaneous power on Parliament and the State Legislatures to make laws with respect to GST?

  1. Article 269A
  2. Article 246
  3. Article 246A Correct answer.
  4. Article 279A

Explanation

Article 246A is the new article that gives both Parliament and each State Legislature power to make laws on GST, with sub-article (2) reserving exclusive power to Parliament for inter-State supplies. Article 246 deals with the ordinary Seventh Schedule lists, Article 269A covers IGST apportionment, and Article 279A creates the GST Council.

Question 3Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

The power to levy and collect GST on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel arises at which point?

  1. From the date on which the GST Council recommends, as notified by the Central Government on the recommendation of the Council Correct answer.
  2. Only after a fresh constitutional amendment is passed by Parliament
  3. Immediately from 1 July 2017, since all petroleum products are within GST
  4. From the date the GST Council recommends, which is deemed to be the date specified in the notification

Explanation

Article 279A(5) provides that GST shall not be levied on the five specified petroleum products until a date recommended by the GST Council, and that date is notified by the Central Government on the Council's recommendation. No fresh constitutional amendment is needed because the enabling provision already exists in the Constitution.

Question 4Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A taxable person registered in Maharashtra supplies goods to a recipient in Gujarat. The supplier has no other place of business. Which tax is attracted and under which statute is it levied?

  1. CGST and SGST under the CGST Act and the Maharashtra SGST Act
  2. CGST only, because the Union collects tax on all movement of goods
  3. IGST under the IGST Act, since the supply is in the course of inter-State trade or commerce Correct answer.
  4. SGST only, because the goods physically move from Maharashtra

Explanation

Section 7 of the IGST Act read with the location rules in section 8 treats a supply from a registered person in one State to a recipient in another State as an inter-State supply, attracting IGST. CGST and SGST are levied only on intra-State supplies under section 8 of the CGST Act and the respective State GST Acts.

Question 5Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

For a supply of goods involving movement, the place of supply under section 10(1)(a) of the IGST Act is:

  1. The location of the recipient as per the contract
  2. The location of the supplier
  3. The location of the goods at the time of delivery to the recipient Correct answer.
  4. The registered place of business of the transporter

Explanation

Section 10(1)(a) of the IGST Act fixes the place of supply for goods involving movement as the location where the goods are delivered to the recipient. Where goods are delivered to a person on the direction of the recipient, the proviso deems the principal's location to be the place of supply.

Question 6Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A company in Delhi receives advertising services from a supplier in Singapore, and the supplier has no establishment in India. The service is used in the course of business. What is the place of supply?

  1. Outside India, since the supplier is a non-resident
  2. Delhi, being the location of the recipient Correct answer.
  3. The place where the advertisement is broadcast
  4. Singapore, since the supplier is located there

Explanation

Section 13(2) of the IGST Act provides that where the recipient is a registered person, the place of supply for services is the location of the recipient; where the recipient is unregistered, it is the location of the recipient if the address on record is available. Since the recipient is located in Delhi, the place of supply is Delhi.

Question 7Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Which of the following falls within the definition of 'supply' under section 7(1)(a) of the CGST Act?

  1. Functions performed by a constitutional office holder
  2. Services supplied by an employee to an employer in the course of employment
  3. Sale of goods by a principal to his agent where the agent undertakes to supply on behalf of the principal Correct answer.
  4. Transfer of title in business assets without consideration on closure of business

Explanation

Section 7(1)(a) read with Schedule I treats the sale of goods by a principal to his agent as a supply even though it is made without consideration. Schedule III excludes the other three items from the scope of supply altogether, so they are not supplies.

Question 8Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A registered manufacturer permanently transfers a machine on which input tax credit has been availed to a related person without consideration. Which statement is correct?

  1. It is not a supply because no consideration is received
  2. It is a supply under Schedule I and liable to GST Correct answer.
  3. It is a supply only if the recipient is registered
  4. It is outside GST because it is a capital asset

Explanation

Paragraph 1 of Schedule I to the CGST Act treats permanent transfer or disposal of business assets, where input tax credit has been availed, as a supply even without consideration. The transaction therefore attracts GST irrespective of whether the recipient is registered.

Question 9Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Under section 15(1) of the CGST Act, the value of a supply is:

  1. The cost of production plus a fixed mark-up
  2. The maximum retail price printed on the goods
  3. The price approved by the GST Council for the sector
  4. The transaction price, being the price actually paid or payable for the supply Correct answer.

Explanation

Section 15(1) defines value of supply as the transaction price, which is the price actually paid or payable for the supply where the supplier and recipient are not related and the price is the sole consideration. Section 15(2) then adds specified inclusions such as taxes other than GST, and section 15(3) deals with related-party or non-sole-consideration cases.

Question 10Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Which of the following is included in the value of supply under section 15(2) of the CGST Act?

  1. Subsidy given by the Central Government
  2. Discount given before or at the time of supply and recorded in the invoice
  3. GST itself charged on the supply
  4. Interest or late fee received for delayed payment of consideration Correct answer.

Explanation

Section 15(2)(d) includes interest, late fee or penalty for delayed payment of any consideration in the value of supply. Subsidies granted by the Government are excluded under section 15(2)(e), pre-supply discounts recorded in the invoice are excluded under section 15(3)(a), and GST itself is never part of value.

Question 11Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

The taxable event for levy of GST under section 9 of the CGST Act is:

  1. Manufacture of goods
  2. Sale of goods
  3. Supply of goods or services or both Correct answer.
  4. Transfer of ownership in immovable property

Explanation

Section 9 levies CGST on all intra-State supplies of goods or services or both, except alcoholic liquor for human consumption, so the taxable event is supply rather than manufacture or sale. This distinguishes GST from the earlier excise and VAT regimes, which taxed manufacture and sale respectively.

Question 12Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A composition taxpayer registered under section 10 of the CGST Act makes an inter-State outward supply of goods. What is the consequence?

  1. The taxpayer may pay IGST at the composition rate
  2. IGST is payable at the normal rate on that supply Correct answer.
  3. The supply is exempt because composition taxpayers are outside IGST
  4. The supply is treated as intra-State and taxed under CGST

Explanation

Section 10(4) prohibits a composition taxpayer from making inter-State outward supplies, and the proviso to section 10(2) makes the option available only if the person is not engaged in such supplies. The IGST Act levies tax at the rates notified under section 5, so an impermissible inter-State supply attracts IGST at normal rates.

Question 13Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Under section 9(3) of the CGST Act, the Government may notify categories of supply on which tax is paid by the recipient. This mechanism is known as:

  1. Forward charge
  2. Mixed supply
  3. Reverse charge Correct answer.
  4. Composite supply

Explanation

Section 9(3) empowers notification of supplies on which the recipient is liable to pay tax, which is the reverse charge mechanism. Section 9(4) deals with notified supplies received from unregistered persons, while composite and mixed supplies under section 8 concern bundled supplies.

Question 14Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A supplier provides a package of goods and services that are naturally bundled and supplied in conjunction with each other, one of which is the principal supply. How is the package taxed?

  1. Each component is taxed separately at its own rate
  2. The package is taxed at the highest rate among the components
  3. The package is treated as a composite supply and taxed at the rate applicable to the principal supply Correct answer.
  4. The package is exempt because it contains multiple components

Explanation

Section 8(a) of the CGST Act provides that a composite supply is treated as a supply of the principal supply, and the rate applicable to that principal supply applies to the whole bundle. A mixed supply under section 8(b) is taxed at the highest rate, which is the rule the option referring to the highest rate wrongly applies here.

Question 15Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Which of the following is a mixed supply under section 8(b) of the CGST Act?

  1. A hotel providing accommodation with complimentary breakfast
  2. A telecom operator providing a telephone connection with a router
  3. A retailer selling a gift hamper containing chocolates, a pen and a watch, each capable of separate supply Correct answer.
  4. A printer supplying a machine with an installation service

Explanation

A mixed supply is a combination of two or more individual supplies made for a single price where the combination is not a naturally bundled supply. The gift hamper has no natural dependence among its contents, so it is a mixed supply taxed at the rate of the item attracting the highest rate.

Question 16Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A person exclusively supplying exempt goods is not required to register under section 23 of the CGST Act. Which of the following also falls within the exemption from registration under that section?

  1. A person making inter-State taxable supplies of handicraft goods
  2. A casual taxable person making taxable supplies
  3. A person supplying taxable services through an electronic commerce operator
  4. A person engaged exclusively in supplying goods that are not liable to tax under the Act Correct answer.

Explanation

Section 23(1)(a) exempts a person engaged exclusively in the supply of goods or services that are wholly exempt from tax or not liable to tax under the Act. Persons making inter-State supplies, casual taxable persons and persons supplying through e-commerce operators are excluded from this relief by the proviso and by specific provisions.

Question 17Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Under section 22 of the CGST Act, a supplier of goods located in a special category State becomes liable to register when aggregate turnover in a financial year exceeds:

  1. Five lakh rupees
  2. Forty lakh rupees
  3. Ten lakh rupees Correct answer.
  4. Twenty lakh rupees

Explanation

Section 22(1) fixes the threshold at twenty lakh rupees, but the proviso reduces it to ten lakh rupees for special category States. The higher forty lakh rupee figure applies to service providers under the notification issued under section 22, and five lakh rupees is not a statutory threshold.

Question 18Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A registered person makes a supply of goods on 5 January, issues the invoice on 8 January, and receives payment on 20 February. The time of supply under section 12 of the CGST Act is:

  1. 20 February, being the date of payment
  2. 8 January, being the earlier of the date of invoice and the last date for issue of invoice Correct answer.
  3. The last day of the month in which payment is received
  4. 5 January, being the date of supply

Explanation

Section 12(2) fixes the time of supply for goods as the earlier of the date of issue of invoice or the last date on which the invoice is required to be issued. Where the invoice is issued within the prescribed period, the invoice date of 8 January is the time of supply.

Question 19Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

For a supply of services where the invoice is not issued within the prescribed period, the time of supply under section 13(2) is:

  1. The date of provision of service
  2. The date of payment, or the date of provision of service, whichever is earlier Correct answer.
  3. The due date for filing the return for the period in which the service is provided
  4. The date of receipt of payment, if earlier than the date of provision of service

Explanation

Section 13(2) provides that where the invoice is not issued within the prescribed period, the time of supply is the date of provision of service or the date of receipt of payment, whichever is earlier. The date of payment alone governs only where the invoice has been issued within time and payment precedes it.

Question 20Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

An individual registered in Karnataka supplies goods to a customer in Kerala. Which of the following statements about the levy is correct?

  1. IGST is payable and is apportioned between the Union and the State where the goods are consumed Correct answer.
  2. CGST and Kerala SGST are payable, since the goods are consumed in Kerala
  3. SGST of Karnataka is payable because the supplier is registered there
  4. IGST is payable and accrues entirely to the Union

Explanation

Article 269A provides that IGST is levied and collected by the Government of India and apportioned between the Union and the States in the manner provided by Parliament. Section 17 of the IGST Act read with the IGST (Apportionment) provisions gives the consuming State its share, so the tax does not accrue wholly to the Union.

Question 21Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Which of the following is excluded from the definition of 'goods' under section 2(52) of the CGST Act?

  1. Securities Correct answer.
  2. Software licences
  3. Actionable claims
  4. Growing crops attached to land

Explanation

Section 2(52) defines goods as every kind of movable property other than money and securities, but it expressly includes actionable claims, growing crops and things attached to or forming part of the land agreed to be severed before supply. Securities are therefore outside the definition of goods.

Question 22Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

'Aggregate turnover' under section 2(6) of the CGST Act includes which of the following?

  1. Value of exempt supplies and exports Correct answer.
  2. CGST and SGST charged on outward supplies
  3. Value of inward supplies on which reverse charge is payable
  4. Interest received on fixed deposits

Explanation

Section 2(6) defines aggregate turnover as the aggregate value of all taxable supplies, exempt supplies, exports and inter-State supplies of a person having the same PAN, computed on an all-India basis. It excludes CGST, SGST, IGST, cess, and value of inward supplies on which reverse charge is payable.

Question 23Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A supplier charges consideration of one lakh rupees plus IGST of eighteen thousand rupees, and also recovers freight of five thousand rupees from the recipient separately. The value of supply under section 15 is:

  1. One lakh five thousand rupees Correct answer.
  2. One lakh twenty-three thousand rupees
  3. One lakh eighteen thousand rupees
  4. One lakh rupees

Explanation

Section 15(2)(c) includes incidental expenses such as packing and commission in the value of supply, so the freight recovered is added to the price. IGST of eighteen thousand rupees is a tax on the supply and is excluded from value, giving one lakh five thousand rupees.

Question 24Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Under section 9(1) of the CGST Act, which of the following is expressly outside the levy of GST?

  1. Aerated beverages
  2. Tobacco products
  3. Aircraft parts
  4. Alcoholic liquor for human consumption Correct answer.

Explanation

Section 9(1) levies CGST on all intra-State supplies except alcoholic liquor for human consumption, which remains outside GST and continues to attract State excise. Tobacco and tobacco products, however, are within GST, though the Union also retains the power to levy central excise on them under Article 269A(1) proviso.

Question 25Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A supplier in India provides services to a recipient in the United States, and the place of supply is outside India. How is the transaction treated under the IGST Act?

  1. It is a taxable supply and IGST is payable at the notified rate
  2. It is an inter-State supply and CGST plus SGST are payable
  3. It is a non-taxable supply and no IGST is payable Correct answer.
  4. It is an exempt supply and must be reported as exempt

Explanation

Section 7(5)(b) read with section 8 treats a supply where the supplier is in India and the place of supply is outside India as a supply in the course of inter-State trade, but section 5 of the IGST Act levies tax only where the place of supply is in India. Such a supply is therefore a non-taxable supply, distinct from an exempt supply.

Question 26Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

Under Article 246A of the Constitution of India, as inserted by the Constitution (One Hundred and First Amendment) Act, 2016, which legislature has the power to make laws with respect to goods and services tax where the supply of goods or services takes place within a State?

  1. The Legislature of that State, but only after obtaining the President's prior approval
  2. Only Parliament, since GST is a Union subject
  3. Only the Legislature of that State
  4. Both Parliament and the Legislature of that State Correct answer.

Explanation

Article 246A(1) confers concurrent power on Parliament and the Legislature of every State to make laws with respect to GST on intra-State supplies. Article 246A(2) gives Parliament exclusive power over inter-State supplies. Hence intra-State supply falls within the concurrent competence of both legislatures, not the State alone.

Question 27Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A supplier makes a supply of goods for a consideration, and the transaction is neither an intra-State nor an inter-State supply because the place of supply lies outside India. What is the correct position regarding levy of GST on this transaction?

  1. GST is not leviable, since the supply is not an intra-State or inter-State supply Correct answer.
  2. GST is leviable at a concessional rate notified for export-like supplies
  3. IGST is leviable because the supplier is located in India
  4. CGST and SGST are together leviable at the supplier's location

Explanation

Sections 7, 8 and 9 of the IGST Act, read with sections 7 and 9 of the CGST Act, levy tax only on supplies that qualify as intra-State or inter-State supply. A supply whose place of supply is outside India is neither, so it falls outside the charging provisions; such supplies are treated as exports and are zero-rated rather than taxed.

Question 28Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A supplier agrees to provide a factory building, together with the plant and machinery embedded in it, to a buyer for a single indivisible consideration. Which test in Schedule II to the CGST Act determines whether this is a supply of goods or a supply of services?

  1. Whether the supplier has availed input tax credit on the building
  2. Whether the buyer intends to use the building for manufacturing
  3. Whether the plant and machinery are embedded in the earth at the time of transfer Correct answer.
  4. Whether the consideration is paid in instalments

Explanation

Paragraph 5(b) of Schedule II provides that supply of building along with land or earth or other immovable property is a supply of services, except where the plant and machinery is embedded in the earth and the supply is of the plant and machinery itself. The classification therefore hinges on whether what is transferred is the embedded plant and machinery or the immovable structure.

Question 29Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A taxable person's aggregate turnover in the preceding financial year was forty lakh rupees, but all of it came from supplies of goods that are exempt from tax. For the current financial year, the person begins making taxable supplies of goods in the same State. What is the correct position on liability to register?

  1. Registration is required only if the person also makes inter-State supplies
  2. Registration is not required at all, since the previous year's turnover was entirely exempt
  3. Registration is required once taxable turnover crosses the threshold, as exempt turnover alone did not make the person liable Correct answer.
  4. Registration is required from the start of the year because aggregate turnover exceeded twenty lakh rupees

Explanation

Section 23 exempts a person engaged exclusively in supplying goods or services that are wholly exempt from tax from registration. However, the aggregate turnover of forty lakh rupees includes exempt supplies for threshold purposes under section 2(6), so once taxable supplies begin, the threshold is already crossed and liability arises under section 22.

Question 30Goods and Services Tax (GST) - Constitutional framework, levy, supply, and charge of tax

A supplier receives an advance of fifty thousand rupees on 10 June for goods to be supplied later, and the invoice is issued on 25 July when the goods are delivered. For a supply of goods, what is the time of supply under section 12 of the CGST Act?

  1. 20 July, being the last date for issue of invoice
  2. 25 July, the date of invoice, because for goods the invoice date governs Correct answer.
  3. 10 June, the date of receipt of advance, because payment precedes invoice
  4. The date on which the recipient takes delivery of the goods

Explanation

Under section 12(2) of the CGST Act, the time of supply of goods is the earlier of the date of issue of invoice or the last date on which the invoice is required to be issued. Receipt of an advance is relevant for services under section 13, not for goods. Since the invoice was issued on 25 July, that date is the time of supply.

Question 31GST - Place of supply, time of supply, value of supply, and exemptions

Under the IGST Act, 2017, where a supply of goods involves movement of goods, the place of supply is:

  1. The location of the supplier
  2. The location of the goods at the time of delivery to the recipient Correct answer.
  3. The location of the recipient if the address is known
  4. The location where the goods are handed over for transportation

Explanation

Section 10(1)(a) of the IGST Act provides that where the supply involves movement of goods, the place of supply is the location of the goods at the time when the delivery of the goods is made to the recipient. The supplier's location and the recipient's billing address are irrelevant when goods actually move.

Question 32GST - Place of supply, time of supply, value of supply, and exemptions

A registered dealer in Mumbai supplies goods to a registered dealer in Pune, and the goods are installed at the Pune premises. The place of supply is:

  1. The location of the transporter's office
  2. Mumbai, being the supplier's registered place of business
  3. Pune, being the location where the goods are installed Correct answer.
  4. The billing address of the recipient recorded in the invoice

Explanation

Section 10(1)(b) covers supplies involving movement plus installation or assembly at site, and fixes the place of supply at the place of installation or assembly. This overrides the general movement rule, so the Pune site governs even though the supplier is in Mumbai.

Question 33GST - Place of supply, time of supply, value of supply, and exemptions

Where goods are supplied on board a conveyance such as a train or aircraft, the place of supply under the IGST Act is:

  1. The location where the goods are taken on board Correct answer.
  2. The registered address of the supplier
  3. The billing address of the passenger
  4. The destination of the conveyance

Explanation

Section 10(1)(c) fixes the place of supply for goods taken on board a conveyance at the location where the goods are taken on board. The destination of the journey does not shift the tax to the place of disembarkation.

Question 34GST - Place of supply, time of supply, value of supply, and exemptions

Goods are supplied where neither the supplier nor the recipient knows the location of the goods at the time of supply. The place of supply is:

  1. The location of the goods at the time of delivery, determined as if the supply were a service Correct answer.
  2. The registered place of business of the transporter
  3. The location of the recipient
  4. The location of the supplier

Explanation

Proviso to section 10(1) states that where the location of the goods is not known, the place of supply is determined as if the supply were a supply of services. The residual rules in section 13 then apply by reference to the recipient or supplier.

Question 35GST - Place of supply, time of supply, value of supply, and exemptions

A supplier in Delhi delivers goods to a recipient in Jaipur, but on the instruction of the recipient the goods are delivered to a third person in Udaipur. The place of supply is:

  1. Udaipur Correct answer.
  2. The place where the invoice is raised
  3. Jaipur
  4. Delhi

Explanation

Under section 10(1)(a) read with the third-party delivery situation, the place of supply is the location of the goods at the time of delivery, which is Udaipur where the goods are actually handed over to the third person. The recipient's billing address in Jaipur does not control.

Question 36GST - Place of supply, time of supply, value of supply, and exemptions

For a supply of services where both the supplier and the recipient are located in India, the general place of supply is:

  1. The location where the service is performed
  2. The location of the recipient Correct answer.
  3. The location of the registered office of the supplier
  4. The location of the supplier

Explanation

Section 12(2) of the IGST Act makes the location of the registered recipient the default place of supply for domestic B2B services. Where the recipient is unregistered, the address on record governs, and only if that is unavailable does the supplier's location apply.

Question 37GST - Place of supply, time of supply, value of supply, and exemptions

A registered person in Chennai receives architect services for a building located in Bengaluru from a supplier in Hyderabad. The place of supply is:

  1. The location of the architect's branch office
  2. Bengaluru Correct answer.
  3. Hyderabad
  4. Chennai

Explanation

Section 12(3) requires services directly in relation to immovable property to be taxed at the location of the property. Since the building is in Bengaluru, that is the place of supply regardless of where the parties are located.

Question 38GST - Place of supply, time of supply, value of supply, and exemptions

A company in India organises an event in Singapore for a recipient in India. The place of supply of the event-management service is:

  1. The location of the supplier's head office
  2. India, the recipient's location
  3. The location where payment is received
  4. Singapore, the place where the event is held Correct answer.

Explanation

Section 12(7) provides that the place of supply for services in relation to an event, including admission to it, is the place where the event is actually held. Even for a domestic recipient, the physical venue governs.

Question 39GST - Place of supply, time of supply, value of supply, and exemptions

Where goods are transported by a goods transport agency to a registered recipient, the place of supply of the GTA service is:

  1. The location of the driver
  2. The destination of the goods
  3. The location of the goods at the time of handing over to the GTA Correct answer.
  4. The location of the GTA's registered office

Explanation

Section 12(8) fixes the place of supply of services by way of transportation of goods, including by mail or courier, to a registered person at the location of the recipient. For an unregistered recipient, the location where the goods are handed over for transportation applies.

Question 40GST - Place of supply, time of supply, value of supply, and exemptions

A passenger boards a train at Lucknow and travels to Delhi on a ticket issued by an Indian railway operator. The place of supply of the passenger transport service is:

  1. The location where the ticket is booked
  2. Delhi, the destination
  3. The location of the railway's head office
  4. Lucknow, the boarding point Correct answer.

Explanation

Section 12(9) provides that the place of supply of passenger transport services to a registered person is the place of embarkation. For unregistered passengers, it is the place where the passenger embarks on the conveyance for a continuous journey.

Question 41GST - Place of supply, time of supply, value of supply, and exemptions

A banking company in India provides services to account holders. The place of supply of banking and other financial services is:

  1. The location of the recipient's branch
  2. The location of the RBI regional office
  3. The location where the account is opened
  4. The location of the supplier of the service Correct answer.

Explanation

Section 12(12) fixes the place of supply of banking and other financial services to account holders at the location of the supplier. This is an exception to the general recipient-based rule.

Question 42GST - Place of supply, time of supply, value of supply, and exemptions

A registered person in India receives advertising services from a foreign supplier for display to customers in India. The place of supply is:

  1. The location where the advertisement is displayed
  2. The location of the foreign supplier
  3. The location of the Indian recipient Correct answer.
  4. The location of the advertising agency's bank

Explanation

Section 13(2) of the IGST Act applies to cross-border services and fixes the place of supply at the location of the recipient where the supplier is outside India. The Indian recipient is therefore liable to pay tax under reverse charge.

Question 43GST - Place of supply, time of supply, value of supply, and exemptions

A supplier provides services to a recipient in India, but the supplier's location is outside India and the recipient's location is not known. The place of supply is:

  1. The location of the recipient's bank
  2. The location of the Indian government
  3. The location of the supplier Correct answer.
  4. The location where the service is performed

Explanation

Under section 13(3), where the location of the recipient is not available, the place of supply is the location of the supplier. This residual rule prevents the charge from failing where the recipient cannot be located.

Question 44GST - Place of supply, time of supply, value of supply, and exemptions

The time of supply of goods under section 12 of the CGST Act, where the invoice is issued before delivery, is:

  1. The date of filing of the return
  2. The date of payment
  3. The date of issue of invoice or the last date for issue of invoice, whichever is earlier Correct answer.
  4. The date of delivery of goods

Explanation

Section 12(2)(a) fixes the time of supply at the earlier of the date of issue of invoice or the last date on which the invoice is required to be issued. Delivery and payment dates are relevant only when the invoice is not issued in time.

Question 45GST - Place of supply, time of supply, value of supply, and exemptions

For a supply of services where the invoice is issued within 30 days of supply and payment is received 45 days later, the time of supply is:

  1. The date of issue of invoice Correct answer.
  2. The date of payment
  3. The date of filing of GSTR-1
  4. The date the service is completed

Explanation

Section 13(2)(a) fixes the time of supply for services at the earlier of the date of issue of invoice (where issued within the prescribed period) or the date of payment. Since the invoice precedes payment, the invoice date governs.

Question 46GST - Place of supply, time of supply, value of supply, and exemptions

Where tax is payable under the reverse charge mechanism on goods, the time of supply is the earliest of:

  1. The date of issue of the self-invoice only
  2. The date of filing of the return
  3. The date of receipt of goods, the date of payment, or the date immediately following 30 days from the date of invoice Correct answer.
  4. The date on which the supplier files his return

Explanation

Section 12(3) prescribes that for reverse charge on goods, the time of supply is the earliest of the date of receipt of goods, the date of payment, or the date immediately following 30 days from the date of issue of the supplier's invoice. Where none of these can be determined, the date of entry in the books of account applies.

Question 47GST - Place of supply, time of supply, value of supply, and exemptions

For a supply of services where tax is payable under reverse charge, the time of supply is the earlier of:

  1. The date of payment and the date of issue of the self-invoice Correct answer.
  2. The date of receipt of invoice and the date of the supplier's return
  3. The date of completion of service and the date of filing of the return
  4. The date of payment and the date of receipt of goods

Explanation

Section 13(3) provides that in reverse charge cases for services, the time of supply is the earlier of the date of payment recorded in the recipient's books or the date immediately following 60 days from the date of the supplier's invoice, and where the self-invoice is issued, the date of the self-invoice.

Question 48GST - Place of supply, time of supply, value of supply, and exemptions

Where a supply of services cannot be determined under the normal rules because the invoice and payment dates are not ascertainable, the time of supply is:

  1. The date on which the tax is paid
  2. The date on which the return is filed
  3. The date on which the supplier records the supply in his books
  4. The date on which the recipient records the supply in his books Correct answer.

Explanation

Section 13(5) provides that where the time of supply cannot be determined under the preceding provisions, it is the date on which the recipient records the supply in his books of account. This residual rule mirrors section 12(5) for goods.

Question 49GST - Place of supply, time of supply, value of supply, and exemptions

The value of supply under section 15 of the CGST Act is the transaction value, which is the price actually paid or payable, provided that:

  1. The supply is made to a government department
  2. The supplier and recipient are unrelated and the price is the sole consideration Correct answer.
  3. The goods are exempt from tax
  4. The supplier is registered under the composition scheme

Explanation

Section 15(1) requires that the transaction value be accepted only where the supplier and recipient are not related and the price is the sole consideration for the supply. If either condition fails, valuation rules apply.

Question 50GST - Place of supply, time of supply, value of supply, and exemptions

Which of the following is required to be included in the value of supply under section 15(2)?

  1. Interest or late fee received from the recipient for delayed payment Correct answer.
  2. GST charged on the supply
  3. Subsidy received from the Central Government
  4. Discount given after the supply has been made and recorded in the invoice

Explanation

Section 15(2)(d) requires interest, late fee or penalty for delayed payment of consideration to be included in the value of supply. Government subsidies and GST itself are excluded, and post-supply discounts are excluded subject to conditions.