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 restaurantservices)
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax atsource
(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 |
