{"id":17889,"date":"2022-04-14T14:53:51","date_gmt":"2022-04-14T09:23:51","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=17889"},"modified":"2025-01-04T12:59:27","modified_gmt":"2025-01-04T07:29:27","slug":"composition-levy-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/composition-levy-mcq\/","title":{"rendered":"Composition Levy MCQ (S.10) | 20 Free MCQs of Indirect Tax (GST)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Composition Levy MCQ<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Composition-Levy-MCQ-1024x576.webp\" alt=\"Composition Levy MCQ\" class=\"wp-image-17965 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Composition-Levy-MCQ-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Composition-Levy-MCQ-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Composition-Levy-MCQ-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Composition-Levy-MCQ-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Composition-Levy-MCQ.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Composition Levy MCQ<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/income-tax-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/income-tax-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>MCQs on other topics of Taxation<\/strong><\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Which of the following persons can opt for composition scheme?<br><\/strong>(a) Person making any supply of goods which are not leviable to tax under this Act<br>(b) Person making any inter-State outward supplies of goods and services (except restaurant services)<br>(c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source<br>(d) Person providing restaurant services<\/p>\n\n\n\n<p><strong>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?<br><\/strong>(a)&nbsp;Rs&nbsp;20 lacs <br>(b)&nbsp;Rs&nbsp;10 lacs<br>(c)&nbsp;Rs&nbsp;50 lacs <br>(d)&nbsp;Rs&nbsp;1.5 crore<\/p>\n\n\n\n<p><strong>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?<br><\/strong>(a)&nbsp;Rs&nbsp;25 lacs <br>(b) Rs&nbsp;50 lacs<br>(c)&nbsp;Rs&nbsp;75 lacs <br>(d)&nbsp;Rs&nbsp;1 crore<\/p>\n\n\n\n<p><strong>4. What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme?<br><\/strong>(a) 2.5% <br>(b) 1%<br>(c) 0.5% <br>(d) No composition for manufacturer<\/p>\n\n\n\n<p><strong>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?<br><\/strong>(a) 1% <br>(b) 0.5%<br>(c) 2.5%<br>(d) Not eligible for composition scheme thus liable to pay normal tax<\/p>\n\n\n\n<p><strong>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:<br><\/strong>(a) 0.5% CGST &amp; 0.5% SGST <br>(b) 2.5% CGST &amp; 2.5% UTGST<br>(c) 5% IGST <br>(d) 5% UTGST<\/p>\n\n\n\n<p><strong>7. Can a registered person opt for composition scheme only for one out of his 3 business places having same Permanent Account Number?<br><\/strong>(a) Yes<br>(b) No<br>(c) Yes, subject to prior approval of the Central Government<br>(d) Yes, subject to prior approval of the concerned State Government<\/p>\n\n\n\n<p><strong>8. Can composition scheme be availed if the registered person effects inter-State supplies?<br><\/strong>(a) Yes<br>(b) No<br>(c) Yes, subject to prior approval of the Central Government<br>(d) Yes, subject to prior approval of the concerned State Government<\/p>\n\n\n\n<p><strong>9. Can a registered person under composition scheme claim input tax credit?<br><\/strong>(a) Yes<br>(b) No<br>(c) Input tax credit on inward supply of goods only can be claimed<br>(d) Input tax credit on inward supply of services only can be claimed<\/p>\n\n\n\n<p><strong>10. Can a registered person opting for composition scheme collect tax on his outward supplies?<br><\/strong>(a) Yes<br>(b) No<br>(c) Yes, if the amount of tax is prominently indicated in the invoice issued by him<br>(d) Yes, only on such goods as may be notified by the Central Government<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)Person providing restaurant services<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">2)Rs&nbsp;1.5 crore<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">3)Rs&nbsp;75 lacs<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">4)0.5%<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">5)Not eligible for composition scheme thus liable to pay normal tax  6)0.5% CGST &amp; 0.5% SGST<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">7)No<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">8)No<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">9)No<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">10)No<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. Which of the following will be excluded from the computation of \u2018aggregate turnover\u2019?<br><\/strong>(a) Value of taxable supplies<br>(b) Value of exempt Supplies<br>(c) Non-taxable supplies<br>(d) Value of inward supplies on which tax is paid on reverse charge basis<\/p>\n\n\n\n<p><strong>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?<br><\/strong>(a) He can continue under composition scheme till the end of the financial year<br>(b) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year2019-20<br>(c) He will cease to remain under the composition scheme with immediate effect<br>(d) He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit<\/p>\n\n\n\n<p><strong>13. Which of the following persons can opt for composition scheme?<br><\/strong>(a) Person making any supply of goods which are not leviable to tax under this Act;<br>(b) Person making any inter-State outward supplies of goods;<br>(c) Person effecting supply of goods through an e-commerce operator liable to collect tax atsource<br>(d) All of the above<br>(e) None of the above<\/p>\n\n\n\n<p><strong>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?<br><\/strong>(a)&nbsp;Rs&nbsp;30 lacs <br>(b)&nbsp;Rs&nbsp;10 lacs<br>(c)&nbsp;Rs&nbsp;150 lacs <br>(d)&nbsp;Rs&nbsp;75 lacs<\/p>\n\n\n\n<p><strong>15. For certain Special category States, the reduced limit of&nbsp;Rs&nbsp;75 lakhs for opting composition scheme is available. The reduced limit of&nbsp;Rs&nbsp;75 Lakhs is not available for?<br><\/strong>(a) Manipur <br>(b) Meghalaya<br>(c) Himachal Pradesh <br>(d) Jammu &amp; Kashmir<\/p>\n\n\n\n<p><strong>16. ABC Ltd is manufacturer of goods opting for Composition Scheme has effected turnover of&nbsp;Rs&nbsp;60 Lakhs during the financial year 2019-20. The CGST portion for composition tax payable by ABC Ltd is<br><\/strong>(a)&nbsp;Rs&nbsp;30,000 <br>(b)&nbsp;Rs&nbsp;60,000<br>(c)&nbsp;Rs&nbsp;30,000 <br>(d)&nbsp;Rs&nbsp;1,50,000<\/p>\n\n\n\n<p><strong>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\u00a0Rs\u00a075 lakhs. Can it opt composition levy for Lucknow and normal levy at Kanpur?<br><\/strong>(a) No<br>(b) Yes<br>(c) Up to an Aggregate Turnover of\u00a0Rs\u00a075 lakhs at Lucknow only<br>(d) Subject to the approval of GST Council<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">11)Value of inward supplies on which tax is paid on reverse charge basis<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">12He will cease to remain under the composition scheme with immediate effect<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">13)None of the above<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">14)Rs&nbsp;150 lacs<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">15)Jammu &amp; Kashmir<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">16)Rs&nbsp;30,000<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">17)No<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":17965,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7,1],"tags":[4823],"class_list":["post-17889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","category-misc","tag-composition-levy-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=17889"}],"version-history":[{"count":5,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17889\/revisions"}],"predecessor-version":[{"id":36335,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17889\/revisions\/36335"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/17965"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=17889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=17889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=17889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}