Value of Supply MCQ | 50 Free MCQs on GST

11. Subsidies provided by the Central / State Govt.
(a) Shall be excluded from the value of taxable supply
(b) Shall be included from the value of taxable supply
(c) Shall require no adjustment
(d) Can be included or excluded from the value of the taxable supply

12. The value of supply should include –
(a) Incidental expenses, including commission and packing, charged by the supplier to therecipient of a supply
(b) Interest, late fee or penalty for delayed payment of any consideration for any supply
(c) Subsidies directly linked to the price except subsidies provided by the Central and StateGovernment
(d) All of the above

13. From the following information determine the value of taxable supply as per provisions of Section15 of the CGST Act, 2017? Contracted value of supply of goods (including GST @ 18%) 11,80,000
The contracted value of supply includes the following:
(1) Cost of primary packing 25,000
(2) Cost of protective packing at recipient’s request for safe transportation 15,000
(a) 10,00,000
(b) 11,80,000
(c) 11,55,000
(d) 11,40,000

14. From the following information determine the value of taxable supply as per provisions of Section15 of the CGST Act, 2017?
Price (including GST @18%) 11,00,000 Other information :
(i) Commission paid to agent by recipient on instructionof supplier not included in Price 5,000
(ii) Freight and insurance charges paid by recipient onbehalf of supplier not included in Price 75,000
(a) 11,00,000
(b) 11,80,000
(c) 10,00,000
(d) 11,75,000

15. What deductions are allowed from the transaction value
(a) Discounts offered to customers, subject to conditions
(b) Packing Charges, subject to conditions
(c) Amount paid by customer on behalf of the supplier, subject to conditions
(d) Freight charges incurred by the supplier for CIF terms of supply, subject to conditions

16. Discount given after the supply is deducted from the value of taxable supply, if –
(a) such discount is given as per the agreement entered into at/or before the supply
(b) such discount is linked to the relevant invoices
(c) proportionate input tax credit is reversed by the recipient of supply
(d) all of the above

17. When deductions are allowed from the Transaction Value?
(a) Discount offered to customers subject to conditions
(b) Freight charges
(c) Incidental expenses
(d) Amount paid by customer on behalf of the supplier.

18. Determine the value of taxable supply as per Section 15 of the CGST Act; 2017 :
Contracted sale price of goods (including CGST and SGST @5%) 10,56,000
The contracted sale price includes the following elements of cost:
(i) Cost of drawings and design 5,000
(ii) Cost of primary packing 2,000
(iii) Cost of packing at buyer’s request 4,000
(iv)Fright and insurance from ‘place of removal’ to buyer’s premises 43,000
A discount of 6,000 was given by the supplier at the time of supply of goods. CGST and SGST islevied @ 5%.
(a) 10,56,000
(b) 10,50,000
(c) 10,00,000
(d) 11,10,000