Goods and Services Tax (Group I) Model Test Paper - 5 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 5 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to 
Questions in Division A, working notes are not required. 
(ii) Wherever necessary, suitable assumptions may be made by the candidates, 
and disclosed by way of notes. 
(iii) All questions should be answered on the basis of the provisions of the CGST 
Act, 2017 and the IGST Act, 2017 as amended by the  
Finance (No. 2) Act, 2024 including significant notifications and circulars 
issued and other legislative amendments made, which have become effective 
up to 31.10.2024. 
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Case Scenario 1  
FUTURE Insurance Ltd. is an insurance company providing life and general 
insurance services across India. The company has been carrying on its business 
for the past three years with the approval of IRDA.  
FUTURE Insurance Ltd. secure its business through various insurance agents 
spread across India. Those agents include individuals, firm, LLP and private limited 
company also. However, all of them are licensed under the Insurance Act. 
The company availed services of renting of motor vehicles for its employees in PAN 
India through ‘RR Travels Private Limited’, where cost of fuel is included in the 
consideration charged. The service provider charged 5% GST and informed the 
company that it is claiming ITC only in respect of the same line of business.   
FUTURE Insurance Ltd. provided the following details of insurance business for the 
month of May- 
Sl. 
No. 
Nature of receipt Amount in `  
i. Premium received on Pradhan Mantri Jan Dhan Yojana 5,00,000 
ii. Premium received on Aam Aadmi Bima Yojana 3,00,000 
iii. Premium received on Life micro-insurance product having a 
sum assured of ` 2.50 lakh  
4,00,000 
iv. Premium received on reinsurance of Group Personal 
Accident Policy for Self-Employed Women 
1,00,000 
v. Premium received on Fire and Special perils policy of 
various business units  
7,00,000 
vi. Premium received on Money-back policies issued 12,00,000 
263
Page 2


MODEL TEST PAPER 5 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to 
Questions in Division A, working notes are not required. 
(ii) Wherever necessary, suitable assumptions may be made by the candidates, 
and disclosed by way of notes. 
(iii) All questions should be answered on the basis of the provisions of the CGST 
Act, 2017 and the IGST Act, 2017 as amended by the  
Finance (No. 2) Act, 2024 including significant notifications and circulars 
issued and other legislative amendments made, which have become effective 
up to 31.10.2024. 
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Case Scenario 1  
FUTURE Insurance Ltd. is an insurance company providing life and general 
insurance services across India. The company has been carrying on its business 
for the past three years with the approval of IRDA.  
FUTURE Insurance Ltd. secure its business through various insurance agents 
spread across India. Those agents include individuals, firm, LLP and private limited 
company also. However, all of them are licensed under the Insurance Act. 
The company availed services of renting of motor vehicles for its employees in PAN 
India through ‘RR Travels Private Limited’, where cost of fuel is included in the 
consideration charged. The service provider charged 5% GST and informed the 
company that it is claiming ITC only in respect of the same line of business.   
FUTURE Insurance Ltd. provided the following details of insurance business for the 
month of May- 
Sl. 
No. 
Nature of receipt Amount in `  
i. Premium received on Pradhan Mantri Jan Dhan Yojana 5,00,000 
ii. Premium received on Aam Aadmi Bima Yojana 3,00,000 
iii. Premium received on Life micro-insurance product having a 
sum assured of ` 2.50 lakh  
4,00,000 
iv. Premium received on reinsurance of Group Personal 
Accident Policy for Self-Employed Women 
1,00,000 
v. Premium received on Fire and Special perils policy of 
various business units  
7,00,000 
vi. Premium received on Money-back policies issued 12,00,000 
263
 FUTURE Insurance Ltd. received the following supplies in the month of May 
and the details of GST paid on such supplies are as follows- 
i GST paid on purchase of car for use of Managing Director –  
` 5,00,000 
ii GST paid on bus (seating capacity for 14 persons) purchased by the 
company for transportation of its employees from their residence to office 
and back – ` 3,00,000 
iii GST of ` 80,000 was paid on general insurance taken from Amity 
Insurance Ltd. for motor vehicles for transportation of persons with 
seating capacity = 13 persons (including the driver) which were used in 
transportation of staff of the company. 
All the amounts given above are exclusive of taxes wherever applicable. All 
the supplies referred above are intra-State unless specified otherwise. 
Aggregate turnover of the company is not less than ` 10 crores for the past 
three years. Conditions necessary for availment of ITC are fulfilled subject to 
the information given.  
Values given in the question, wherever required, are in accordance with the 
relevant CGST Rules, 2017. 
 Based on the facts of the case scenario given above, choose the most 
appropriate answer to Q. Nos. 1 to 3 below: 
1. Determine the services on which the company is liable to pay tax under 
reverse charge?  
(a) Service availed from insurance agents  
(b) Service availed from RR Travels Private Limited 
(c) None of the services availed attracts RCM 
(d) Both (a) & (b) 
2. Compute the total value of taxable supply made by FUTURE Insurance 
Ltd. for the month of May?   
(a) ` 4,00,000 
(b) ` 12,00,000 
(c) ` 23,00,000 
(d) ` 32,00,000   
3. Determine the amount of ITC that can be claimed by FUTURE Insurance 
Ltd? 
(a) ` 80,000 
(b) ` 3,00,000 
(c) ` 3,80,000 
(d) ` 8,80,000 (3 x 2 Marks = 6 Marks) 
 
264
Page 3


MODEL TEST PAPER 5 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to 
Questions in Division A, working notes are not required. 
(ii) Wherever necessary, suitable assumptions may be made by the candidates, 
and disclosed by way of notes. 
(iii) All questions should be answered on the basis of the provisions of the CGST 
Act, 2017 and the IGST Act, 2017 as amended by the  
Finance (No. 2) Act, 2024 including significant notifications and circulars 
issued and other legislative amendments made, which have become effective 
up to 31.10.2024. 
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Case Scenario 1  
FUTURE Insurance Ltd. is an insurance company providing life and general 
insurance services across India. The company has been carrying on its business 
for the past three years with the approval of IRDA.  
FUTURE Insurance Ltd. secure its business through various insurance agents 
spread across India. Those agents include individuals, firm, LLP and private limited 
company also. However, all of them are licensed under the Insurance Act. 
The company availed services of renting of motor vehicles for its employees in PAN 
India through ‘RR Travels Private Limited’, where cost of fuel is included in the 
consideration charged. The service provider charged 5% GST and informed the 
company that it is claiming ITC only in respect of the same line of business.   
FUTURE Insurance Ltd. provided the following details of insurance business for the 
month of May- 
Sl. 
No. 
Nature of receipt Amount in `  
i. Premium received on Pradhan Mantri Jan Dhan Yojana 5,00,000 
ii. Premium received on Aam Aadmi Bima Yojana 3,00,000 
iii. Premium received on Life micro-insurance product having a 
sum assured of ` 2.50 lakh  
4,00,000 
iv. Premium received on reinsurance of Group Personal 
Accident Policy for Self-Employed Women 
1,00,000 
v. Premium received on Fire and Special perils policy of 
various business units  
7,00,000 
vi. Premium received on Money-back policies issued 12,00,000 
263
 FUTURE Insurance Ltd. received the following supplies in the month of May 
and the details of GST paid on such supplies are as follows- 
i GST paid on purchase of car for use of Managing Director –  
` 5,00,000 
ii GST paid on bus (seating capacity for 14 persons) purchased by the 
company for transportation of its employees from their residence to office 
and back – ` 3,00,000 
iii GST of ` 80,000 was paid on general insurance taken from Amity 
Insurance Ltd. for motor vehicles for transportation of persons with 
seating capacity = 13 persons (including the driver) which were used in 
transportation of staff of the company. 
All the amounts given above are exclusive of taxes wherever applicable. All 
the supplies referred above are intra-State unless specified otherwise. 
Aggregate turnover of the company is not less than ` 10 crores for the past 
three years. Conditions necessary for availment of ITC are fulfilled subject to 
the information given.  
Values given in the question, wherever required, are in accordance with the 
relevant CGST Rules, 2017. 
 Based on the facts of the case scenario given above, choose the most 
appropriate answer to Q. Nos. 1 to 3 below: 
1. Determine the services on which the company is liable to pay tax under 
reverse charge?  
(a) Service availed from insurance agents  
(b) Service availed from RR Travels Private Limited 
(c) None of the services availed attracts RCM 
(d) Both (a) & (b) 
2. Compute the total value of taxable supply made by FUTURE Insurance 
Ltd. for the month of May?   
(a) ` 4,00,000 
(b) ` 12,00,000 
(c) ` 23,00,000 
(d) ` 32,00,000   
3. Determine the amount of ITC that can be claimed by FUTURE Insurance 
Ltd? 
(a) ` 80,000 
(b) ` 3,00,000 
(c) ` 3,80,000 
(d) ` 8,80,000 (3 x 2 Marks = 6 Marks) 
 
264
Case Scenario 2 
Madurai Impex Ltd. (‘company’) is engaged in supplying sports goods. The 
company did not opt for registration under GST. The proper officer under GST, 
based on enquiry, finds that the company is liable for registration and he registers 
the firm on temporary basis on 15
th
 June, 2024. 
Further, in the month of February 2025, the company also generated an e-way bill 
for inter-State transport of goods. However, immediately on generation of the e-
way bill, the buyer cancelled the order before it was dispatched from the factory for 
delivery. 
In the month of March 2025, since the company was incurring heavy losses, it 
applied for cancellation of GST registration on 15
th
 March 2025. The order for 
cancellation was made on 30
th
 March 2025, effecting cancelling the registration 
with effect from 15
th
 March 2025. 
On the basis of the facts given above, choose the most appropriate answer to Q.4 
to Q.6 below: 
4. After the grant of temporary registration, Madurai Impex Ltd. needs to apply 
for registration within __________ from the date of grant of temporary 
registration, if no extension of period is to be granted for such temporary 
registration.   
(a) 30 days  
(b) 90 days  
(c) 7 days 
(d) 15 days 
5.  The Company needs to file its Final return by __________. 
(a) 30
th
 April, 2025 
(b) 30
th
 August, 2025 
(c) 15
th
 June, 2025 
(d) 30
th
 June, 2025 
6. Which of the following statements is correct in respect of e-way bill generated 
for goods in the month of February for which order was cancelled? 
(a) Once generated, E-way bill cannot be cancelled. 
(b) E-way bill can be cancelled within 24 hours of generation 
(c) E-way bill can be cancelled within 48 hours of generation 
(d) E-way bill can be cancelled within 72 hours of generation 
(3 x 2 Marks= 6 Marks) 
7.  ABC Insurance Ltd. received a proposal for pandemic insurance for cricket 
tournament organised by Lion’s Club. Sum assured for said insurance was  
` 20 Crores with a premium of ` 5 lakh. The company issued the said policy 
on 1
st
 July. The invoice for the same was issued on 5
th
 August. Premium was 
received on 14
th 
August. 
265
Page 4


MODEL TEST PAPER 5 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to 
Questions in Division A, working notes are not required. 
(ii) Wherever necessary, suitable assumptions may be made by the candidates, 
and disclosed by way of notes. 
(iii) All questions should be answered on the basis of the provisions of the CGST 
Act, 2017 and the IGST Act, 2017 as amended by the  
Finance (No. 2) Act, 2024 including significant notifications and circulars 
issued and other legislative amendments made, which have become effective 
up to 31.10.2024. 
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Case Scenario 1  
FUTURE Insurance Ltd. is an insurance company providing life and general 
insurance services across India. The company has been carrying on its business 
for the past three years with the approval of IRDA.  
FUTURE Insurance Ltd. secure its business through various insurance agents 
spread across India. Those agents include individuals, firm, LLP and private limited 
company also. However, all of them are licensed under the Insurance Act. 
The company availed services of renting of motor vehicles for its employees in PAN 
India through ‘RR Travels Private Limited’, where cost of fuel is included in the 
consideration charged. The service provider charged 5% GST and informed the 
company that it is claiming ITC only in respect of the same line of business.   
FUTURE Insurance Ltd. provided the following details of insurance business for the 
month of May- 
Sl. 
No. 
Nature of receipt Amount in `  
i. Premium received on Pradhan Mantri Jan Dhan Yojana 5,00,000 
ii. Premium received on Aam Aadmi Bima Yojana 3,00,000 
iii. Premium received on Life micro-insurance product having a 
sum assured of ` 2.50 lakh  
4,00,000 
iv. Premium received on reinsurance of Group Personal 
Accident Policy for Self-Employed Women 
1,00,000 
v. Premium received on Fire and Special perils policy of 
various business units  
7,00,000 
vi. Premium received on Money-back policies issued 12,00,000 
263
 FUTURE Insurance Ltd. received the following supplies in the month of May 
and the details of GST paid on such supplies are as follows- 
i GST paid on purchase of car for use of Managing Director –  
` 5,00,000 
ii GST paid on bus (seating capacity for 14 persons) purchased by the 
company for transportation of its employees from their residence to office 
and back – ` 3,00,000 
iii GST of ` 80,000 was paid on general insurance taken from Amity 
Insurance Ltd. for motor vehicles for transportation of persons with 
seating capacity = 13 persons (including the driver) which were used in 
transportation of staff of the company. 
All the amounts given above are exclusive of taxes wherever applicable. All 
the supplies referred above are intra-State unless specified otherwise. 
Aggregate turnover of the company is not less than ` 10 crores for the past 
three years. Conditions necessary for availment of ITC are fulfilled subject to 
the information given.  
Values given in the question, wherever required, are in accordance with the 
relevant CGST Rules, 2017. 
 Based on the facts of the case scenario given above, choose the most 
appropriate answer to Q. Nos. 1 to 3 below: 
1. Determine the services on which the company is liable to pay tax under 
reverse charge?  
(a) Service availed from insurance agents  
(b) Service availed from RR Travels Private Limited 
(c) None of the services availed attracts RCM 
(d) Both (a) & (b) 
2. Compute the total value of taxable supply made by FUTURE Insurance 
Ltd. for the month of May?   
(a) ` 4,00,000 
(b) ` 12,00,000 
(c) ` 23,00,000 
(d) ` 32,00,000   
3. Determine the amount of ITC that can be claimed by FUTURE Insurance 
Ltd? 
(a) ` 80,000 
(b) ` 3,00,000 
(c) ` 3,80,000 
(d) ` 8,80,000 (3 x 2 Marks = 6 Marks) 
 
264
Case Scenario 2 
Madurai Impex Ltd. (‘company’) is engaged in supplying sports goods. The 
company did not opt for registration under GST. The proper officer under GST, 
based on enquiry, finds that the company is liable for registration and he registers 
the firm on temporary basis on 15
th
 June, 2024. 
Further, in the month of February 2025, the company also generated an e-way bill 
for inter-State transport of goods. However, immediately on generation of the e-
way bill, the buyer cancelled the order before it was dispatched from the factory for 
delivery. 
In the month of March 2025, since the company was incurring heavy losses, it 
applied for cancellation of GST registration on 15
th
 March 2025. The order for 
cancellation was made on 30
th
 March 2025, effecting cancelling the registration 
with effect from 15
th
 March 2025. 
On the basis of the facts given above, choose the most appropriate answer to Q.4 
to Q.6 below: 
4. After the grant of temporary registration, Madurai Impex Ltd. needs to apply 
for registration within __________ from the date of grant of temporary 
registration, if no extension of period is to be granted for such temporary 
registration.   
(a) 30 days  
(b) 90 days  
(c) 7 days 
(d) 15 days 
5.  The Company needs to file its Final return by __________. 
(a) 30
th
 April, 2025 
(b) 30
th
 August, 2025 
(c) 15
th
 June, 2025 
(d) 30
th
 June, 2025 
6. Which of the following statements is correct in respect of e-way bill generated 
for goods in the month of February for which order was cancelled? 
(a) Once generated, E-way bill cannot be cancelled. 
(b) E-way bill can be cancelled within 24 hours of generation 
(c) E-way bill can be cancelled within 48 hours of generation 
(d) E-way bill can be cancelled within 72 hours of generation 
(3 x 2 Marks= 6 Marks) 
7.  ABC Insurance Ltd. received a proposal for pandemic insurance for cricket 
tournament organised by Lion’s Club. Sum assured for said insurance was  
` 20 Crores with a premium of ` 5 lakh. The company issued the said policy 
on 1
st
 July. The invoice for the same was issued on 5
th
 August. Premium was 
received on 14
th 
August. 
265
Determine the time of supply of service provided to Lion’s Club? 
(a) 1
st
 July 
(b) 16
th
 August 
(c) 05
th
 August 
(d) 14
th
 August (2 Marks) 
8.  Mr. Naresh, a supplier of readymade garments issued an invoice to a 
customer and erroneously charged a higher value by ` 42,000. Such an 
invoice was issued on 28
th
 October. Which document is required to be issued 
by the company in respect of the invoice issued on 28
th
 October? 
(a) Debit note  
(b) Credit note 
(c) Bill of supply 
(d) Revised Tax invoice (1 Mark) 
Division B - Descriptive Questions 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
Total Marks:35 Marks 
1. (a) Miss Shreya, proprietor of M/s. Happy Enterprise, a registered supplier 
of taxable goods and services in the state of West Bengal, pays GST 
under regular scheme. It is not eligible for any threshold exemption. It 
provided the following information for the month of December: 
S. 
No. 
Particulars Amount 
(`) 
 OUTWARD SUPPLY:  
i. Intra-state supply of goods to M/s. Reliable & Sons 7,00,000 
ii. Intra-state transfer of goods to its branch office in the 
state of West Bengal. Both places are under the 
same GSTIN. 
1,00,000 
iii. Permanent transfer of old computers to orphanage 
home without consideration. Input tax credit was not 
availed on the same. 
80,000 
iv. Advance received for Future supply of management 
consultancy service to Mr. Shubam (Intra-state 
supply) 
40,000 
 INWARD SUPPLY: (Intra-state)  
i. Purchase of taxable goods from registered 
suppliers. 
8,00,000 
ii. Availed Works Contract service for repair of office 
building. Amount of repair was debited in the profit & 
loss account. 
30,000 
266
Page 5


MODEL TEST PAPER 5 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to 
Questions in Division A, working notes are not required. 
(ii) Wherever necessary, suitable assumptions may be made by the candidates, 
and disclosed by way of notes. 
(iii) All questions should be answered on the basis of the provisions of the CGST 
Act, 2017 and the IGST Act, 2017 as amended by the  
Finance (No. 2) Act, 2024 including significant notifications and circulars 
issued and other legislative amendments made, which have become effective 
up to 31.10.2024. 
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Case Scenario 1  
FUTURE Insurance Ltd. is an insurance company providing life and general 
insurance services across India. The company has been carrying on its business 
for the past three years with the approval of IRDA.  
FUTURE Insurance Ltd. secure its business through various insurance agents 
spread across India. Those agents include individuals, firm, LLP and private limited 
company also. However, all of them are licensed under the Insurance Act. 
The company availed services of renting of motor vehicles for its employees in PAN 
India through ‘RR Travels Private Limited’, where cost of fuel is included in the 
consideration charged. The service provider charged 5% GST and informed the 
company that it is claiming ITC only in respect of the same line of business.   
FUTURE Insurance Ltd. provided the following details of insurance business for the 
month of May- 
Sl. 
No. 
Nature of receipt Amount in `  
i. Premium received on Pradhan Mantri Jan Dhan Yojana 5,00,000 
ii. Premium received on Aam Aadmi Bima Yojana 3,00,000 
iii. Premium received on Life micro-insurance product having a 
sum assured of ` 2.50 lakh  
4,00,000 
iv. Premium received on reinsurance of Group Personal 
Accident Policy for Self-Employed Women 
1,00,000 
v. Premium received on Fire and Special perils policy of 
various business units  
7,00,000 
vi. Premium received on Money-back policies issued 12,00,000 
263
 FUTURE Insurance Ltd. received the following supplies in the month of May 
and the details of GST paid on such supplies are as follows- 
i GST paid on purchase of car for use of Managing Director –  
` 5,00,000 
ii GST paid on bus (seating capacity for 14 persons) purchased by the 
company for transportation of its employees from their residence to office 
and back – ` 3,00,000 
iii GST of ` 80,000 was paid on general insurance taken from Amity 
Insurance Ltd. for motor vehicles for transportation of persons with 
seating capacity = 13 persons (including the driver) which were used in 
transportation of staff of the company. 
All the amounts given above are exclusive of taxes wherever applicable. All 
the supplies referred above are intra-State unless specified otherwise. 
Aggregate turnover of the company is not less than ` 10 crores for the past 
three years. Conditions necessary for availment of ITC are fulfilled subject to 
the information given.  
Values given in the question, wherever required, are in accordance with the 
relevant CGST Rules, 2017. 
 Based on the facts of the case scenario given above, choose the most 
appropriate answer to Q. Nos. 1 to 3 below: 
1. Determine the services on which the company is liable to pay tax under 
reverse charge?  
(a) Service availed from insurance agents  
(b) Service availed from RR Travels Private Limited 
(c) None of the services availed attracts RCM 
(d) Both (a) & (b) 
2. Compute the total value of taxable supply made by FUTURE Insurance 
Ltd. for the month of May?   
(a) ` 4,00,000 
(b) ` 12,00,000 
(c) ` 23,00,000 
(d) ` 32,00,000   
3. Determine the amount of ITC that can be claimed by FUTURE Insurance 
Ltd? 
(a) ` 80,000 
(b) ` 3,00,000 
(c) ` 3,80,000 
(d) ` 8,80,000 (3 x 2 Marks = 6 Marks) 
 
264
Case Scenario 2 
Madurai Impex Ltd. (‘company’) is engaged in supplying sports goods. The 
company did not opt for registration under GST. The proper officer under GST, 
based on enquiry, finds that the company is liable for registration and he registers 
the firm on temporary basis on 15
th
 June, 2024. 
Further, in the month of February 2025, the company also generated an e-way bill 
for inter-State transport of goods. However, immediately on generation of the e-
way bill, the buyer cancelled the order before it was dispatched from the factory for 
delivery. 
In the month of March 2025, since the company was incurring heavy losses, it 
applied for cancellation of GST registration on 15
th
 March 2025. The order for 
cancellation was made on 30
th
 March 2025, effecting cancelling the registration 
with effect from 15
th
 March 2025. 
On the basis of the facts given above, choose the most appropriate answer to Q.4 
to Q.6 below: 
4. After the grant of temporary registration, Madurai Impex Ltd. needs to apply 
for registration within __________ from the date of grant of temporary 
registration, if no extension of period is to be granted for such temporary 
registration.   
(a) 30 days  
(b) 90 days  
(c) 7 days 
(d) 15 days 
5.  The Company needs to file its Final return by __________. 
(a) 30
th
 April, 2025 
(b) 30
th
 August, 2025 
(c) 15
th
 June, 2025 
(d) 30
th
 June, 2025 
6. Which of the following statements is correct in respect of e-way bill generated 
for goods in the month of February for which order was cancelled? 
(a) Once generated, E-way bill cannot be cancelled. 
(b) E-way bill can be cancelled within 24 hours of generation 
(c) E-way bill can be cancelled within 48 hours of generation 
(d) E-way bill can be cancelled within 72 hours of generation 
(3 x 2 Marks= 6 Marks) 
7.  ABC Insurance Ltd. received a proposal for pandemic insurance for cricket 
tournament organised by Lion’s Club. Sum assured for said insurance was  
` 20 Crores with a premium of ` 5 lakh. The company issued the said policy 
on 1
st
 July. The invoice for the same was issued on 5
th
 August. Premium was 
received on 14
th 
August. 
265
Determine the time of supply of service provided to Lion’s Club? 
(a) 1
st
 July 
(b) 16
th
 August 
(c) 05
th
 August 
(d) 14
th
 August (2 Marks) 
8.  Mr. Naresh, a supplier of readymade garments issued an invoice to a 
customer and erroneously charged a higher value by ` 42,000. Such an 
invoice was issued on 28
th
 October. Which document is required to be issued 
by the company in respect of the invoice issued on 28
th
 October? 
(a) Debit note  
(b) Credit note 
(c) Bill of supply 
(d) Revised Tax invoice (1 Mark) 
Division B - Descriptive Questions 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
Total Marks:35 Marks 
1. (a) Miss Shreya, proprietor of M/s. Happy Enterprise, a registered supplier 
of taxable goods and services in the state of West Bengal, pays GST 
under regular scheme. It is not eligible for any threshold exemption. It 
provided the following information for the month of December: 
S. 
No. 
Particulars Amount 
(`) 
 OUTWARD SUPPLY:  
i. Intra-state supply of goods to M/s. Reliable & Sons 7,00,000 
ii. Intra-state transfer of goods to its branch office in the 
state of West Bengal. Both places are under the 
same GSTIN. 
1,00,000 
iii. Permanent transfer of old computers to orphanage 
home without consideration. Input tax credit was not 
availed on the same. 
80,000 
iv. Advance received for Future supply of management 
consultancy service to Mr. Shubam (Intra-state 
supply) 
40,000 
 INWARD SUPPLY: (Intra-state)  
i. Purchase of taxable goods from registered 
suppliers. 
8,00,000 
ii. Availed Works Contract service for repair of office 
building. Amount of repair was debited in the profit & 
loss account. 
30,000 
266
iii. Availed legal service form an advocate to represent 
the matter in the Court relating to collection of 
disputed proceed from customers. 
50,000 
Notes: 
(i) Rate of CGST, SGST and IGST on all supplies are as below: 
Particulars CGST SGST IGST 
Goods 2.5% 2.5% 5% 
Supply of services 9% 9% 18% 
(ii) Both inward and outward supplies given above are exclusive of 
taxes. 
(iii) All the conditions necessary for availing the ITC have been fulfilled. 
(iv) The aggregate turnover of M/s Happy Enterprise in the preceding 
financial year exceeds the threshold limit for registration. 
(v) Working note should form part of the answer. 
Compute the net minimum GST payable in cash by M/s. Happy 
Enterprise for the month of December. (10 Marks) 
(b)  Renuka Sales, a registered supplier, receives 100 invoices (for inward 
supply of goods/ services) involving GST of ` 10 lakh, from various 
suppliers during the month of January.  Out of 100 invoices, details of 80 
invoices involving GST of ` 6 lakh have been furnished by the suppliers 
in their respective GSTR-1s filed on the prescribed due date therefor and 
such details have also been duly communicated to the recipients of such 
invoices in Form GSTR-2B. 
Compute the ITC that can be claimed by Renuka Sales in its GSTR-3B 
for the month of January to be filed by 20
th
 February assuming that GST 
of ` 10 lakh is otherwise eligible for ITC. 
Make suitable assumptions, wherever necessary. (5 Marks) 
2. (a)  Comment on the taxability or otherwise of the following transactions 
under GST law. Also state the correct legal provisions for the same. 
S. 
No. 
Description of Services provided 
(i) Service provided by a private transport operator to Vintage 
Girls Higher Secondary School by way of transportation of 
students to and from the school. 
(ii) Services provided by way of vehicle parking to general public 
in a shopping complex. 
(iii) Food supplied by the canteen run by a hospital to the in-
patients as advised by the doctors. 
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