Composition Levy MCQ (S.10) | 20 Free MCQs of Indirect Tax (GST)
Composition Levy MCQ
1. Which of the following persons can opt for composition scheme?
(a) Person making any supply of goods which are not leviable to tax under this Act
(b) Person making any inter-State outward supplies of goods and services (except restaurant services)
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source
(d) Person providing restaurant services
2. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for States other than special category States?
(a) Rs 20 lacs
(b) Rs 10 lacs
(c) Rs 50 lacs
(d) Rs 1.5 crore
3. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for special category states?
(a) Rs 25 lacs
(b) Rs 50 lacs
(c) Rs 75 lacs
(d) Rs 1 crore
4. What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme?
(a) 2.5%
(b) 1%
(c) 0.5%
(d) No composition for manufacturer
5. What is the rate applicable under CGST to a registered person being a hotelier (providing restaurant and accommodation services) opting to pay taxes under composition scheme?
(a) 1%
(b) 0.5%
(c) 2.5%
(d) Not eligible for composition scheme thus liable to pay normal tax
6. Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST. Determine the rate of total GST payable by him under composition scheme:
(a) 0.5% CGST & 0.5% SGST
(b) 2.5% CGST & 2.5% UTGST
(c) 5% IGST
(d) 5% UTGST
7. Can a registered person opt for composition scheme only for one out of his 3 business places having same Permanent Account Number?
(a) Yes
(b) No
(c) Yes, subject to prior approval of the Central Government
(d) Yes, subject to prior approval of the concerned State Government
8. Can composition scheme be availed if the registered person effects inter-State supplies?
(a) Yes
(b) No
(c) Yes, subject to prior approval of the Central Government
(d) Yes, subject to prior approval of the concerned State Government
9. Can a registered person under composition scheme claim input tax credit?
(a) Yes
(b) No
(c) Input tax credit on inward supply of goods only can be claimed
(d) Input tax credit on inward supply of services only can be claimed
10. Can a registered person opting for composition scheme collect tax on his outward supplies?
(a) Yes
(b) No
(c) Yes, if the amount of tax is prominently indicated in the invoice issued by him
(d) Yes, only on such goods as may be notified by the Central Government
| Answers: 1)Person providing restaurant services 2)Rs 1.5 crore 3)Rs 75 lacs 4)0.5% 5)Not eligible for composition scheme thus liable to pay normal tax 6)0.5% CGST & 0.5% SGST 7)No 8)No 9)No 10)No |
11. Which of the following will be excluded from the computation of ‘aggregate turnover’?
(a) Value of taxable supplies
(b) Value of exempt Supplies
(c) Non-taxable supplies
(d) Value of inward supplies on which tax is paid on reverse charge basis
12. What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2019-20 crosses threshold limit?
(a) He can continue under composition scheme till the end of the financial year
(b) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year2019-20
(c) He will cease to remain under the composition scheme with immediate effect
(d) He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit
13. Which of the following persons can opt for composition scheme?
(a) Person making any supply of goods which are not leviable to tax under this Act;
(b) Person making any inter-State outward supplies of goods;
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax atsource
(d) All of the above
(e) None of the above
14. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for a trader in Mumbai?
(a) Rs 30 lacs
(b) Rs 10 lacs
(c) Rs 150 lacs
(d) Rs 75 lacs
15. For certain Special category States, the reduced limit of Rs 75 lakhs for opting composition scheme is available. The reduced limit of Rs 75 Lakhs is not available for?
(a) Manipur
(b) Meghalaya
(c) Himachal Pradesh
(d) Jammu & Kashmir
16. ABC Ltd is manufacturer of goods opting for Composition Scheme has effected turnover of Rs 60 Lakhs during the financial year 2019-20. The CGST portion for composition tax payable by ABC Ltd is
(a) Rs 30,000
(b) Rs 60,000
(c) Rs 30,000
(d) Rs 1,50,000
17. GST Ltd. has business places at Lucknow, UP and Kanpur, UP having the same PAN; and Aggregate Turnover in the financial year not exceeding Rs 75 lakhs. Can it opt composition levy for Lucknow and normal levy at Kanpur?
(a) No
(b) Yes
(c) Up to an Aggregate Turnover of Rs 75 lakhs at Lucknow only
(d) Subject to the approval of GST Council
| Answers: 11)Value of inward supplies on which tax is paid on reverse charge basis 12He will cease to remain under the composition scheme with immediate effect 13)None of the above 14)Rs 150 lacs 15)Jammu & Kashmir 16)Rs 30,000 17)No |
