GST Compliant Invoices: CGST, SGST, IGST and GSTIN
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Kit Library / Commerce / Taxation
⚡ Topic Learning KitGST Invoicing 4.4
English 16 leveled MCQs Free
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All 16 questions, laddered from warm-up to topper-level, each with its answer and the reasoning behind it.
Warm-up · 9 questions
Q1. Under Section 31 of the CGST Act, 2017, when must a registered person issue a tax invoice?
Beginner
A
Only when requested by the buyer
B
Within 30 days of supply
C
At the time of supply
D
At the end of the financial year
Show the answer
C · At the time of supply
Section 31 of the CGST Act, 2017 mandates that every registered person must issue a tax invoice at the time of supply.
Q2. For supply of goods, the invoice must be issued:
Beginner
A
After the goods are delivered
B
Within 30 days of delivery
C
Only when payment is received
D
On or before the date of removal of goods for delivery
Show the answer
D · On or before the date of removal of goods for delivery
As per GST law, for goods, the invoice should be issued on or before the date of removal of goods for delivery to the buyer.
Q3. For supply of services, what is the general time limit to issue an invoice from the date of supply?
Beginner
A
45 days
B
30 days
C
15 days
D
60 days
Show the answer
B · 30 days
The service provider must issue the invoice within 30 days from the date of supply of services.
Q4. CGST is levied on:
Beginner
A
Intra-state supply of goods and services
B
Exports only
C
Imports only
D
Inter-state supply of goods and services
Show the answer
A · Intra-state supply of goods and services
CGST is the portion of GST that goes to the Central Government and is charged on intra-state supplies (within the same state).
Q5. IGST is applicable on:
Beginner
A
Sale within the same state
B
Sale to government departments only
C
Sale between different states
D
Sale of exempt goods
Show the answer
C · Sale between different states
IGST (Integrated GST) is applied on inter-state supplies, i.e., when goods or services are sold from one state to another.
Q6. A valid GSTIN consists of how many characters?
Beginner
A
18
B
12
C
10
D
15
Show the answer
D · 15
GSTIN is a 15-digit PAN-based code assigned to every registered taxpayer under GST.
Q7. SAC codes are used for classifying:
Beginner
A
Both goods and services
B
Neither goods nor services
C
Services
D
Goods
Show the answer
C · Services
SAC (Services Accounting Code) is used for services, while HSN is used for goods.
Q8. Under GST, a tax invoice is essential for claiming Input Tax Credit (ITC).
Beginner
A
True
B
False
Show the answer
A · True
A GST-compliant invoice serves as evidence of a taxable transaction and is essential for claiming Input Tax Credit.
Q9. In inter-state supply, both CGST and SGST are charged.
Beginner
A
True
B
False
Show the answer
B · False
In inter-state supply, IGST is charged instead of CGST and SGST. CGST and SGST are applicable only for intra-state supplies.
Building up · 7 questions
Q10. If services are supplied to a government department, the time limit for issuing invoice may extend up to:
Intermediate
A
45 days
B
30 days
C
90 days
D
60 days
Show the answer
A · 45 days
For supply to government departments or notified recipients, the time limit may extend up to 45 days.
Q11. In the case of continuous supply of services, invoices can be issued:
Intermediate
A
Only after completion of the contract
B
Only when payment is received
C
On a periodic basis as per the contract
D
At the end of the financial year
Show the answer
C · On a periodic basis as per the contract
For continuous supply of services, invoices can be issued periodically based on the contract terms, such as due date of payment, receipt of payment, or completion of a milestone.
Q12. Which of the following is NOT an essential content of a valid GST invoice?
Intermediate
A
Place of supply
B
Name, address and GSTIN of the supplier
C
HSN/SAC code
D
Signature of the buyer
Show the answer
D · Signature of the buyer
A GST invoice requires the supplier's signature or digital signature, not the buyer's signature.
Q13. If a buyer is not registered under GST, their name and address must be mentioned on the invoice if the value of the invoice is:
Intermediate
A
Rs 10,000 or more
B
Rs 1,00,000 or more
C
Rs 50,000 or more
D
Rs 25,000 or more
Show the answer
C · Rs 50,000 or more
For unregistered buyers, the invoice must include their name and address if the value is Rs 50,000 or more.
Q14. In an intra-state sale, if the GST rate is 18%, how is the tax split?
Intermediate
A
9% CGST and 9% SGST
B
18% CGST
C
9% IGST and 9% SGST
D
18% SGST
Show the answer
A · 9% CGST and 9% SGST
For intra-state supplies, the GST amount is divided equally between CGST and SGST. So 18% GST becomes 9% CGST and 9% SGST.
Q15. In the GSTIN example 32ABCDE1234F1Z5, what does '32' represent?
Intermediate
A
Registration number
B
State code
C
PAN number
D
Entity type
Show the answer
B · State code
The first two digits of GSTIN represent the state code. For example, '32' is the state code for Kerala.
Q16. E-invoicing under GST is mandatory for businesses with turnover exceeding:
Intermediate
A
Rs 5 crores
B
Rs 10 crores
C
Rs 50 crores
D
Rs 1 crore
Show the answer
A · Rs 5 crores
As per the source content, e-invoicing is mandatory for businesses with turnover exceeding Rs 5 crores.
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