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B Com Exam  >  B Com Test  >  Goods and Services Tax (GST)  >  Test: Input Tax Credit - 1 - B Com MCQ

Input Tax Credit - 1 - Free MCQ Practice Test with solutions, B Com Goods


MCQ Practice Test & Solutions: Test: Input Tax Credit - 1 (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: Input Tax Credit - 1". 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

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Test: Input Tax Credit - 1 - Question 1
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What is the primary purpose of Input Tax Credit (ITC) under GST?

Detailed Solution: Question 1

The primary purpose of Input Tax Credit (ITC) under GST is to ensure a seamless flow of credit in the GST chain, allowing businesses to claim tax credits for goods and services used for business purposes.

Test: Input Tax Credit - 1 - Question 2
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Which of the following taxes could not be claimed as Input Tax Credit (ITC) under the pre-GST indirect tax regime?

Detailed Solution: Question 2

Under the pre-GST indirect tax regime, Central Sales Tax (CST) could not be claimed as Input Tax Credit (ITC).

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Test: Input Tax Credit - 1 - Question 3
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What is the purpose of the Electronic Credit Ledger in GST?

Detailed Solution: Question 3

The Electronic Credit Ledger in GST is used to maintain a record of taxes paid on supplies, which can be used to claim Input Tax Credit (ITC) for business purposes.

Test: Input Tax Credit - 1 - Question 4
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What is the condition for availing Input Tax Credit (ITC) on goods and services?

Detailed Solution: Question 4

To avail Input Tax Credit (ITC), the goods and services should have been received by the taxable person.

Test: Input Tax Credit - 1 - Question 5
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Which component of GST allows Input Tax Credit (ITC) for payment of IGST first?

Detailed Solution: Question 5

The Integrated Goods and Services Tax (IGST) allows Input Tax Credit (ITC) for payment of IGST first, and then for CGST and SGST/UTGST.

Test: Input Tax Credit - 1 - Question 6
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In which cases is Input Tax Credit (ITC) not available under GST?

Detailed Solution: Question 6

Input Tax Credit (ITC) is not available under GST when goods and services are used for personal purposes.

Test: Input Tax Credit - 1 - Question 7
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What are common credits in GST?

Detailed Solution: Question 7

Common credits in GST refer to tax credits available for partly personal/exempted and partly normal sales, where the credit is proportionate to the business use of the goods or services.

Test: Input Tax Credit - 1 - Question 8
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What is the purpose of matching, reversal, and reclaim of Input Tax Credit (ITC) under GST?

Detailed Solution: Question 8

The purpose of matching, reversal, and reclaim of Input Tax Credit (ITC) under GST is to identify discrepancies in ITC claims and rectify them to maintain the integrity of the tax system.

Test: Input Tax Credit - 1 - Question 9
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What is the useful life of capital goods for distributing Input Tax Credit (ITC) over time?

Detailed Solution: Question 9

The useful life of capital goods for distributing Input Tax Credit (ITC) over time is generally considered to be 5 years.

Test: Input Tax Credit - 1 - Question 10
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Which document is NOT considered for claiming Input Tax Credit (ITC) under GST?

Detailed Solution: Question 10

A purchase order is not considered for claiming Input Tax Credit (ITC) under GST. Tax invoices, debit notes, and bills of entry are typically used for claiming ITC.

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About this B Com Practice Test

This test contains 10 MCQs on Input Tax Credit - 1 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 Input Tax Credit - 1 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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