Model Question Paper – IGST Act.

PART – A
(2 Marks Each)
Multiple Choice Questions
1. The headquarters of GST council is located at .
A) New Delhi
B) Lucknow
C) Ahmadabad
D) Mumbai
Answer : A

2. GST Stands for

A) Goods and Supply Tax
B) Government Sales Tax
C) Goods and Services Tax
D) General Sales Tax
Answer : C

3. In India GST became effective from

A) 1st April, 2017
B) 1st January, 2017
C) 1st July, 2017
D) 1st March, 2017
Answer : C

4. In India GST came effective from July 1st, 2017 India has chosen _______
model of dual GST.
A) USA
B) UK
C) Canadian
D) China
Answer : C

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5. Indian GST model has _________rate structure.
A) 3
B) 4
C) 5
D) 6
Answer : B

6. What does “ I “stands for in IGST?

A) International
B) Internal
C) Integrated
D) Intra
Answer : C

7. How many types of taxes will be in Indian GST?

A) 2
B) 3
C) 4
D) 5
Answer : B

8. Which of the following tax is not subsumed in GST

A) VAT
B) Stamp Duty
C) Entry Tax
D) Entertainment Tax
Answer : B

9. What are the taxes levied on an Intra-State Supply?

A) CGST
B) SGST
C) CGST and SGST
D) IGST
Answer : C

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10. Which of the following taxes will be levied on Imports of goods and
services?
A) CGST
B) SGST
C) IGST
D) Exempt
Answer : C

11. How will the goods and services be classified under GST regime?
A) SAC/HSN Code
B) HSN Code
C) SAC Code
D) GST Code
Answer : A

12. HSN Code Stands for

A) Home Shopping Network
B) Harmonised System of Nomenclature
C) Harmonised System Number
D) Home State Number
Answer : B

13. SAC Code Stands for

A) Services Accounting Code
B) Software Accounting Code
C) System Accounting Code
D) Service Application Code
Answer : A

14. Is there any ceiling limit prescribed on the rate under IGST?
A) 12%
B) 18%
C) 28%
D) 40%
Answer : D

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15. Which of the following is an intrastate supply?
A) Supplier of goods located in Nagpur and place of supply of goods SEZ
located in Mumbai
B) Supplier of goods located in Kolkata and place of supply of goods in
Bangalore
C) Supplier of goods located in Goa and place of supply of goods in Goa
D) All the above
Answer : C

16. Place of supply in case of installation of elevator is:

A) Where the movement of elevator commences from the suppliers place.
B) Where the delivery of elevator is taken.
C) Where the installation of elevator is made.
D) Where address of the recipient is mentioned in the invoice.
Answer : C

17. What is location of supply in case of importation of goods?

A) Customs port where the goods are cleared
B) Location of the importer
C) Place where the goods are delivered after clearance from customs port
D) Owner of the goods
Answer : B

18. Which one of the following is true?

A) A person can collect tax only he is registered
B) Registered person not liable to collect tax till his aggregate turnover
exceeds threshold limit
C) A person can collect the tax during the period of his provisional
registration
D) None of the above
Answer : A

19. Business which has centralized registration under existing Acts

A) Shall obtain a centralized registration under GST Law.
B) Shall obtain separate registration in each state from where it is making
taxable supplies.

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 C) Shall obtain registration on temporary basis.
D) No need to apply for registration under GST.
Answer : B

20. Whether credit can be availed without actual receipt of goods where
goods are transferred through transfer of document of title before or
during the movement of goods?
A) Yes
B) No
C) Yes, in specific instances
D) Can be availed only after transfer of document of title after movement
of goods
Answer : C

21. Balance in electronic credit ledger under CGST can be used against
which liability?
A) CGST Liability only
B) CGST and IGST liability
C) CGST, IGST and SGST liability
D) None of them
Answer : B

22. Balance in electronic credit ledger under SGST can be used against which
liability?
A) SGST Liability only
B) SGST and IGST liability
C) SGST, IGST and CGST liability
D) None of them
Answer : B

23. Who is considered as an e-commerce operator, who ____________digital

or electronic facility or platform for electronic commerce
A) Owns
B) Operates
C) Manages

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 D) Any of the above
Answer : D

24. When an e-commerce operator is required to register under GST?

A) When he is required to collect tax at source u/s 52
B) When his aggregate turnover exceeds the threshold limit
C) When he is required to discharge tax on the taxable supply or services
made by the supplier through him u/s 9(5)
D) It is mandatory to register irrespective of the threshold limit.
Answer : D

25. The tax IGST charged by _________Government.

A) Central
B) State
C) Concerned department
D) Both a and b
Answer : A

26. The maximum rate prescribed under IGST now is _______.

A) 5%
B) 12%
C) 18%
D) 28%
Answer : D

27. The permissible order of cross utilisation of IGST credit over the GST tax
liabilities
A) SGST, CGST and IGST
B) IGST, CGST and SGST
C) CGST, IGST and SGST
D) CGST, SGST and IGST
Answer : B

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28. The Tax applicable to interstate supplies will be:
A) SGST Only
B) CGST Only
C) IGST Only
D) CGST + IGST
Answer : C

29. Whether Alcoholic Liquor for industrial and other usages is taxable under
GST?
A) No
B) Yes
C) Exempted
D) Non-Taxable
Answer : B

30. CGST and SGST will be levied on;

A) Intra-state supply
B) Inter-state supply
C) Import
D) Export
Answer : A

31. Zero Rated Supply means:

A) No OPT Liability .But, eligible for IPT Credit
B) No OPT Liability and No IPT Credit
C) Both OPT Liability and IPT Credit
D) None of the Above
Answer : A

32. IGST means ................... ?

A) Inter-state GST
B) Integrated GST
C) Import GST
D) International GST
Answer : B

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33. ......................... tax is levied on inter-state supply of goods and services?
A) CGST
B) SGST
C) IGST
D) VAT
Answer : C

34. Which of the following taxes will be levied on Imports?

A) CGST
B) IGST
C) SGST
D) Exempt
Answer : B

35. Suppose, the IGST Credit of ` 5/-Lakhs has been cross utilised to settle
the SGST OPT of ` 5/-Lakhs of a Kerala Dealer. The fund transfer will
be:
A) 5/-Lakhs from IGST Fund will be transferred by Central government
In to Kerala SGST Fund
B) 5/-Lakhs from IGST Fund will be transferred by Central government
In to Kerala SGST Fund
C) 5/-Lakhs from CGST Fund will be transferred by Central government
in to Kerala SGST Fund
D) No Fund Transfer at all.
Answer : A

36. Suppose, the IGST Credit of ` 5/-Lakhs is cross utilised to settle the IGST
OPT of ` 5/-Lakhs of a Kerala Dealer. The fund transfer will be:
A) 5/-Lakhs from IGST Fund will be transferred by Central government
In to Kerala SGST Fund
B) 5/-Lakhs from SGST Fund will be transferred by Kerala government
in to Central IGST Fund
C) 5/-Lakhs from CGST Fund will be transferred by Central government
in to Kerala SGST Fund
D) No Fund Transfer at all.
Answer : D

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37. The interstate purchases made by the Govt .deparmtnet not in the course
of business are treated as :
A) B2B Supplies
B) B2C Supplies
C) B2C Subject to the quoting of the Departmental ID issued by SGST
Officials
D) B2G Supplies
Answer : C

38. What will be a Taxable Event in GST?

A) Manufacture
B) Taxable Supply of Goods and Services
C) Both (A) and (B) above
D) None of the Above
Answer : B

39. The Order of the Utilisation of the SGST ITC Credit will be:
A) IGST OPT,CGST OPT and SGST OPT
B) CGST OPT,IGST OPT and SGST OPT
C) SGST OPT,IGST OPT and No Utilisation agnist CGST OPT
D) SGST OPT,CGST OPT and No Utilisation agnist IGST OPT
Answer : C

40. The person in charge of the conveyance carrying any consignment of

goods exceeding the value of ________________, shall carry prescribed
documents (E-Waybill)
A) 50,000
B) 1,00,000
C) 10,000
D) 100 lakhs
Answer : A

41. The default rule of place of supply of services made to any person other
than a registered person if address on record doesn't exist shall be .......?
A) Location of the recipient of services
B) Location of the supplier of services

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 C) Location where service is rendered
D) Location where agreement for rendering of services is executed
Answer : B

42. Place of supply of services in relation to lodging accommodation

shall be .................?
A) Location of the supplier
B) Location of the recipient
C) Location at the lodging accommodation is located
D) None of these
Answer : C

43. Place of supply of services in relation to mobile connection for pre-paid

customers other than through internet shall be ...............................?
A) Location of supplier
B) Location of recipient

C) Location where such pre-payment is received as such vouchers are

sold
D) None of these
Answer : C

44. Cross utilization of ITC is ot allowed between:

A) SGST and CGST
B) SGST and IGST
C) IGST and CGST
D) None of the above
Answer : A

45. Tax paid on goods and services under ...................... Act is allowable both
under SGST act and CGST Act?
A) IGST
B) VAT
C) Excise
D) Customs
Answer : A

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46. ................... Act implements 'destination principle of taxation' in GST
scenario?
A) CGST
B) SGST
C) Customs
D) IGST
Answer : D

47. ............... Act provides un-intercepted ITC chain on inter-state

transactions?
A) IGST
B) CGST
C) VAT
D) SGST
Answer : A

48. In IGST .................. shall pay the amount equal to the ITC SGST used by
the supplier in the exporting state to centre?
A) Exporting state
B) Importing state
C) Centre
D) NA
Answer : A

49. Place of supply of goods when supply involves movement of goods?

A) location of the goods at the time at which the movement of goods
terminates for delivery to
B) the recipient
C) Location of the goods at the time at which movement of goods
commences for delivery to
D) the recipient
E) location of the principle place of business of the supplier
F) location of the principle place of business of the recipient
Answer : A

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50. Place of supply of goods where the supply doesn't involve movement of
goods ...........?
A) Location of the goods at the time of purchase order
B) Location of the goods at the time of delivery to the recipient
C) Location of the supplier
D) Location of the recipient
Answer : B

51. Place of supply where the goods are assembled or installed?

A) Place of supplier
B) Place of recipient
C) Place of transporter
D) Place of the such assembly or installation
Answer : D

52. Place of supply where the goods are supplied on board a conveyance such
as vessel, an aircraft, a train or motor vehicle?
A) Location of supplier
B) Location of recipient
C) Location at which such goods are taken on board
D) None of these
Answer : C

53. Manner of utilizing ITC for payment of IGST .........................?

A) (i) IGST (ii) SGST (iii) CGST (iv) Cash
B) (i) CGST (ii) IGST (iii) SGST (iv) Cash
C) (i) IGST (ii) Cash (iii) CGST (iv) SGST
D) (i) IGST (ii) CGST (iii) SGST (iv) Cash
Answer : D

54. The default rule of place of supply of services made to a registered person
shall be ..............................?
A) Location of such person
B) Location of service provider
C) Location where service is provided

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 D) Location where agreement for rendering of service is executed
Answer : A

55. The default rule of place of supply of services made to any person other
than a registered person if address on record exist shall be ......................?
A) Location of service provider
B) Location where service is rendered
C) Location where agreement for rendering of service is executed
D) Location of the recipient
Answer : D

56. IGST means ..........................?

A) CGST Inter-state GST
B) Integrated GST
C) Import GST
D) International GST
Answer : B

57. IGST Act is passed by ........................?

A) Parliament
B) State Legislative
C) Union Territory
D) Legislative Council
Answer : A

58. Under ............... Article of the Constitution, GST on supplies in the cause
of Inter-state trade or commerce shall be levied and collected by the
Government of India ?
A) Article 246 A
B) Article 269 A
C) Article 254
D) Article 279 A
Answer : B

59. IGST is levied and collected is .................?

A) Allotted to centre only

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 B) Allotted to states only
C) Allotted to UT's only
D) Apportioned between centre and states
Answer : D

60. What is rate of tax of IGST?

A) CGST rate
B) SGST rate
C) CGST + SGST rate
D) VAT rate
Answer : C

61. ........... is levied on imports of goods and services?

A) SGST
B) CGST
C) IGST
D) VAT
Answer : C

62. Import/Export is treated as ..................... in GST?

A) Intra-state supply
B) Inter-state supply
C) Non-taxable supply
D) Exempted supply
Answer : B

63. Inter-state supplies means:

A) Any-supply where the location of the supplier and the place of
supply are in the same state
B) Any supply where the location of supplier and the place of supply
are in different states
C) Any supply where location of the supplier and place of supply are
outside the country
D) None of these
Answer : B

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64. Works contract is;
A) Supply of goods
B) Supply of services
C) Supply of both
D) Neither supply of goods nor supply of services
Answer : B

65. The refund application of the UN agencies, embassies or consulate will

be processed based on:
A) Unique Identification Number
B) GSTIN
C) Pass Port Number
D) Any of the Above
Answer : A

66. The Tax wrongly paid under IGST instead of Tax on intra-state (Local)
supply-How it will be treated in the GST?
A) Refund
B) Automatic System Adjustment
C) Online Withdrawal as and when required
D) Any of the Above.
Answer : A

67. The scanned documents required for filing ITC on export?

A) Export Invoice and Shipping Bill
B) Packing List, Bill of Lading and material Receipt
C) Bank Realisation Certificate
D) All of the above
Answer : D

68. What is the rate of interest to be payable in case of delay in sanctioning

the refund claimed
A) Not exceeding 6%
B) Not exceeding 8%

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 C) Not exceeding 10%
D) Not exceeding 12%
Answer : A

69. Place of supply of service for DTH by ABC Pvt. Ltd. located in Mumbai
to customer in Trivandrum is
A) Mumbai
B) Trivandrum
C) Either (a) or (b)
D) New Delhi
Answer : B

70. Mr. X of Trivandrum not having bank account takes a demand draft in
Kolkata from ABC Bank for his visa purpose. The place of supply is:
A) Hyderabad
B) Kolkata
C) Either (a) or (b)
D) New Delhi
Answer : B

71. The provider of AMC service outside India has entered into an agreement
for an aircraft company PQR located in India for AMC. The service
provider provides repair service to the aircraft when it was in India. The
place of service in this case is:
A) Outside India
B) India, since the aircraft is in India when the service is provided
C) Outside India, since the aircraft is in India when the service is
provided
D) None of the above
Answer : B

72. Out of IGST paid to the Central Government, which of the following
must be apportioned based on tax rate equivalent to the CGST on similar
intra-state supply?
A) Interstate supply of goods and services to an unregistered person.
B) Interstate supply of goods and services to a taxable person paying
tax under sec.10 of the CGST Act, 2017.

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 C) Interstate supply of good and services to taxable person not eligible
for input tax credit.
D) All of the above.
Answer : D

73. The basic nature of assessment in GST will be:

A) Self-assessment
B) Provisional Assessment
C) Best Judgment Assessment
D) Protective Assessment
Answer : A

74. Can IGST amount apportioned to a State, if subsequently found

refundable to any person and refunded to such person, be reduced from
the amount apportioned to such state?
A) Yes
B) No
C) Partially
D) None of the above
Answer : A

75. Out of the IGST paid to the Central Government in respect of import of
goods or services, if the registered taxable person does not avail the said
credit within the specified period and so remains in the IGST account,
what is the treatment?
A) Refund it back to the taxable person.
B) Can be claimed after the expiry of the specified period.
Apportionment of Tax and Settlement of Funds 341 Indirect Taxes
Committee
C) Apportion to the Central Government based on rate equivalent to
CGST on similar intra-State supply and Apportion to the state
where such supply takes place.
D) None of the above.
Answer : C

76. The provisions of apportionment of tax also apply to:

A) Apportionment of interest

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 B) Apportionment of penalty
C) Compounding amount realized in connection with tax so
apportioned.
D) All of the above
Answer : D

77. The registered person has paid IGST by treating an intra-State supply as
inter-State supply. The officer has levied CGST and SGST as the same is
intra-State supply. What is the remedy?
A) Pay CGST and SGST along with applicable interest
B) Pay CGST and SGST and Claim refund of IGST
C) Forgo IGST paid
D) None of the above
Answer : B

78. What provisions of CGST have been made applicable to IGST?

A) All provisions
B) Only a few provisions
C) The provisions of CGST Act as would be applicable to IGST has
not been mentioned
D) The exact provisions of CGST Act as would be applicable to IGST
have not been enumerated. However a list of items have been
mentioned, whose corresponding provisions under CGST would
apply to IGST Act.
Answer : D

79. What would the TDS and TCS rates be under IGST?
A) TDS and TCS provisions not applicable to IGST since no such
provisions have been incorporated under IGST Act
B) At the rates mentioned in CGST Act
C) At the rate equal to CGST Act + SGST Act
D) At double the rate mentioned in CGST Act
Answer : D

80. When is a service transaction deemed to have been initiated before

commencement of IGST Act?
A) When invoice relating to such supply has been received or made

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 before IGST has come into existence
B) Payment is made/ received either in part or full before IGST has
come into existence
C) Both of the Above
D) Any one of the Above
Answer : D

81. Is IGST payable on services imported after the appointed day, though
service tax has actually been paid under service tax regime?
A) No.
B) Yes. Pay and avail the credit paid of IGST under reverse charge on
full value Yes. If tax has been paid partially under service tax
regime and part of the service/
C) consideration paid has not suffered service tax under service tax
regime
D) None of the above
Answer : C

82. Can government make retrospective rules?

A) Yes. But cannot impose penalty for contravention of rules for
retrospective period
B) Yes and also can impose penalty for contravention of rules for
retrospective period
C) No
D) None of the above
Answer : A

83. Whether a taxable person who has paid IGST on a transaction considered
by him to be an inter-state supply, but which is subsequently held to be an
intra-state supply is required to pay interest?
A) Yes
B) No
C) At proper Officers discretion
D) None of the above
Answer : B

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84. Mr. X a resident from Trivandrum conducts training for employees of P
Ltd. being a registered person under GST based out in Chennai at a resort
in Kovalam. The place of supply in this case is:
A) Chennai
B) Pune
C) Darjeeling
D) None of the above
Answer : A

85. What happens if a taxable person has paid IGST (in IGST Act) on a
transaction considered by him to be an inter-state supply but which is
subsequently held to be an intra-state supply?
A) Seek refund
B) Adjust against future liability
C) Take re-credit
D) File a suit for recovery
Answer : A

86. Zero rated supply includes:

A) export of goods and services.
B) Supply of goods and services to a SEZ developer or SEZ Unit
C) Supply of goods and services by a SEZ developer or SEZ Unit
D) Both (a) and (b)
Answer : D

87. Is the SEZ developer or SEZ unit receiving zero rated supply eligible to
claim refund of IGST paid by the registered taxable person on such
supply?
A) Yes
B) No
C) Partially yes
D) None of the above
Answer : B

88. A registered taxable person is eligible to claim refund in respect of export

of goods and services in the following cases:

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 A) Under bond, without payment of IGST and claim refund of
unutilized input tax credit.
B) On payment of IGST and claim refund of IGST paid on such goods
and services.
C) None of the above
D) Both (a) and (b)
Answer : D

89. Which of the following supply involving movement of goods is an intra-

State supply?
A) Location of supplier in Kerala and place of supply in Tamil Nadu
B) Location of supplier in Karnataka and place of supply in
Karnataka
C) Location of supplier in Kerala and place of supply on Andhra
Pradesh
D) None of the above
Answer : B

90. Which of the following is an inter-State supply?

A) Supplier of goods located in Delhi and place of supply of goods
SEZ located in Delhi
B) Supplier of goods located in Delhi and place of supply of goods in
Jaipur
C) Supplier of goods located in Delhi and place of supply of goods
SEZ located in Chandigarh
D) All the above
Answer : D

91. Which of the following transaction is inter-state supply of goods

involving movement of goods?
A) Location of supplier is in Bangalore and location of recipient is in
Mumbai
B) Location of supplier is in Bangalore and place of supply is Mumbai
C) Location of supplier and place of supply is Bangalore
D) None of the above
Answer : B

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92. Supply of goods in the course of import of territory of India is
A) Intrastate supply
B) Inter-State supply
C) Export
D) Inter-state trade or commerce
Answer : D

93. ___________ supply shall attract IGST?

A) Intra-State
B) Inter-State
C) Both (a) and (b)
D) None of the above
Answer : B

94. What if an e-commerce operator having no physical presence in the

taxable territory, does not have a representative in the taxable territory?
A) His will have to discharge his tax liability in foreign currency
B) He will not be liable to tax
C) He has to appoint a person in the taxable territory for the purpose
of paying tax on his behalf
D) None of the above
Answer : C

95. Unless and until notified, IGST shall not be levied on the inter-State
supply of which of the following:
A) Industrial alcohol
B) Works contract
C) Petroleum
D) None of the above
Answer : C

96. Deemed exports provisions applicable to?

A) Deemed export provision is applicable only to goods
B) Deemed export provision is applicable only to services

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 C) Deemed export provision is applicable both to goods and services
D) Deemed export provision is applicable when goods and services
are supplied to SEZ units/ developers
Answer : A

97. What are the conditions applicable before claiming deemed exports?
A) Goods must be manufactured in India
B) Goods must not leave India
C) Goods must be notified by Central Government
D) All the above
Answer : D

98. Whether a taxable person who has paid CGST& SGST or, as the case
may be, CGST & UTGST on a transaction considered by him to be an
intra-state supply, but which is subsequently held to be an inter-state
supply is required to pay interest?
A) Yes
B) No
C) At proper officer’s discretion
D) None of the above
Answer : B

99. The annual return shall be filed by the registered taxable person (other
than dealers paying tax under section 10) in form
A) GSTR 7
B) GSTR 9
C) GSTR 9A
D) GSTR 10
Answer : B

100. A goods and service tax practitioner can undertake the following
activities if authorized by the taxable person
A) Furnish details inward and outward supplies
B) Furnish monthly / quarterly return
C) Furnish Annual and Final return

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 D) All of the above
Answer : D

101. What should the taxable person do, if he payment of tax is made under
wrong GSTIN?
A) Pay again under right GSTIN and claim refund
B) Auto-adjustment
C) Adjustment on application/request
D) Raise ISD invoice and transfer
Answer : A

PART B
(5 Marks Each)
Write Short Notes:

1. Export of Goods
2. Zero rated Supply
3. Supply in territorial waters
4. OIDAR Services
5. Location of recipient of Service
6. Non taxable online receipient

PART C
(10 Marks Each)
Short Answer Questions:

1. Explain charging provision under section 5 of the IGST Act. Explain

special provisions relating to RCM and e-commerce operator under
section 5.

2. Explain general provision (default rule) U/s 12(2) with respect to supply
of services, where both location of supplier and recipient is in India.

3. What do you mean by Intra State supply of goods/services U/s 8 of the

IGST Act?
4. Explain “Place of Supply of Goods” imported in to or exported from

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 India. U/s 11 of the IGST Act.
5. What is OIDAR Services? Explain special provision U/s 14 with respect
to payment of tax by OIDAR.

6. Explain the principles of apportionment of tax and settlement of funds

U/s 17 of the IGST Act. How apportionment is made when “Place of
Supply cannot be determined” and when taxable person making supply is
not identifiable.

7. Explain the provision of transfer of input tax credit U/s 18, when goods
purchased interstate are sold in the Destination State.

8. Discuss the powers of Government with respect to grant of exemption

from payment of tax U/s 6 of the IGST Act.

9. Explain the general provisions (default rule) with respect to supply of

services U/s 13 (2), where either “Location of supplier” or “Location of
recipient” is outside India.

PART D
(20 Marks)
Essay Questions:

1. Explain how the place of supply of goods is determined U/s 10, where both
the supplier and recipient are located in India. Explain with illustrations.

2. What is Inter-State supplier of goods/services U/s 7 of the IGST Act?

Explain different types of inter-state supply under the Act.

3. What is Zero rated supply? Explain how registered person making zero
rated supply claim refund of tax, when he supplies goods/services without
payment of IGST and on payment of IGST with illustrations.

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