Composition Levy MCQ (S.10) | 20 Free MCQs of Indirect Tax (GST)

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