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B Com Exam  >  B Com Test  >  Goods and Services Tax (GST)  >  Test: Charge of GST - B Com MCQ

Charge of GST - Free MCQ Practice Test with solutions, B Com Goods


MCQ Practice Test & Solutions: Test: Charge of GST (10 Questions)

You can prepare effectively for B Com Goods and Services Tax (GST) with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Charge of GST". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

Sign up on EduRev for free to attempt this test and track your preparation progress.

Test: Charge of GST - Question 1
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Under which section of the CGST Act, 2017, is GST levied on the supply of petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel?

Detailed Solution: Question 1

GST on the supply of petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel is levied under Section 9(2) of the CGST Act, 2017. The government can notify the date from which this provision becomes effective.

Test: Charge of GST - Question 2
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What is the threshold limit for opting for the composition levy under Section 10(1) of the CGST Act, 2017, for a registered person in the financial year?

Detailed Solution: Question 2

Section 10(1) of the CGST Act, 2017, allows a registered person to opt for the composition levy if their aggregate turnover in the financial year does not exceed ?1 crore (?75 lakhs for North-Eastern states). This threshold determines eligibility for the composition scheme.

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Test: Charge of GST - Question 3
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Which of the following goods or services is NOT eligible for the composition scheme under Section 10 of the CGST Act, 2017?

Detailed Solution: Question 3

Inter-state outward supplies of goods are not eligible for the composition scheme under Section 10 of the CGST Act, 2017. The composition scheme is primarily designed for businesses engaged in intra-state supplies and has certain restrictions on the types of supplies that can be made under this scheme.

Test: Charge of GST - Question 4
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What does the term "aggregate turnover" mean under Section 2(6) of the CGST Act, 2017?

Detailed Solution: Question 4

The term "aggregate turnover" under Section 2(6) of the CGST Act, 2017, means the total turnover of all taxable supplies (excluding reverse charge supplies), exempt supplies, exports of goods or services, and inter-state supplies made by persons having the same Permanent Account Number (PAN). It is computed on an all-India basis.

Test: Charge of GST - Question 5
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Which of the following statements is true regarding the composition scheme?

Detailed Solution: Question 5

Option A is true. Composition taxpayers must pay tax at normal rates on all their inward supplies, even though they enjoy a simplified tax and return filing process. They cannot avail input tax credit on their purchases, as mentioned in Section 10(4) of the CGST Act, 2017.

Test: Charge of GST - Question 6
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What is the penalty for a composition taxpayer who fails to display the words "Composition Taxable Person" on their notice and signboard?

Detailed Solution: Question 6

There is a penalty of ?10,000 for a composition taxpayer who fails to display the words "Composition Taxable Person" on every notice and signboard displayed at a prominent place, as per the rules.

Test: Charge of GST - Question 7
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Under what conditions can a registered person opt for the composition levy scheme?

Detailed Solution: Question 7

  • Under the CGST Act, 2017, a registered person cannot opt for the composition levy scheme if they are engaged in the supply of services other than restaurant and outdoor catering services.
  • This is stipulated under Section 10(2) of the Act.
  • Additionally, a person is also disqualified if they engage in inter-state outward supplies of goods, make supplies through an electronic commerce operator, or if their aggregate turnover exceeds 1.5 crores.

Test: Charge of GST - Question 8
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Which category of taxpayers is NOT eligible for the composition scheme under Section 10 of the CGST Act, 2017?

Detailed Solution: Question 8

Businesses engaged in inter-state outward supplies of goods are not eligible for the composition scheme under Section 10 of the CGST Act, 2017. The composition scheme is primarily for intra-state businesses.

Test: Charge of GST - Question 9
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When is it mandatory for a taxpayer to display the words "composition taxable person, not eligible to collect tax on supplies" on their invoices?

Detailed Solution: Question 9

It is mandatory for a taxpayer to display the words "composition taxable person, not eligible to collect tax on supplies" on their invoices when they opt for the composition scheme, as per the rules. This helps in identifying composition taxpayers who are not allowed to collect tax on supplies.

Test: Charge of GST - Question 10
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What is the maximum GST rate that can be levied on all intra-state supplies of goods or services under the CGST Act, 2017?

Detailed Solution: Question 10

According to Section 9(1) of the CGST Act, 2017, the maximum GST rate that can be levied on all intra-state supplies of goods or services is 20%, with CGST and SGST each not exceeding 10%. This means that the combined CGST and SGST rate cannot exceed 20%.

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About this B Com Practice Test

This test contains 10 MCQs on Charge of GST with detailed solutions for each question. It is part of the Goods and Services Tax (GST) course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Charge of GST MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Goods and Services Tax (GST) course. The course offers:
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