GST Invoices and Electronic Ledgers
8 minFull explanation, worked examples & memory tricks in the app
Kit Library / Commerce / Taxation
⚡ Topic Learning KitGST Compliance 3.2
English 16 leveled MCQs Free
Shared by a Veda learner · Generated with Veda AI
Smart notes
1
What you'll study, topic by topic
Leveled MCQ practice
Try the smart MCQs from this kit
All 16 questions, laddered from warm-up to topper-level, each with its answer and the reasoning behind it.
Warm-up · 10 questions
Q1. Under GST, which document is mandatory for availing Input Tax Credit (ITC)?
Beginner
A
Delivery Challan
B
Tax Invoice or Debit Note
C
Receipt Voucher
D
Bill of Supply
Show the answer
B · Tax Invoice or Debit Note
As per the source, a registered person cannot avail input tax credit unless he is in possession of a tax invoice or a debit note.
Q2. A registered person supplying exempted goods or services should issue which document?
Beginner
A
Tax Invoice
B
Payment Voucher
C
Bill of Supply
D
Receipt Voucher
Show the answer
C · Bill of Supply
As per Sec 31(3)(c), a registered person supplying exempted goods or services shall issue a bill of supply.
Q3. When a registered person receives an advance payment for a supply, which document can be issued?
Beginner
A
Credit Note
B
Refund Voucher
C
Receipt Voucher
D
Tax Invoice
Show the answer
C · Receipt Voucher
As per Sec 31(3)(d), a receipt voucher can be issued evidencing receipt of advance payment.
Q4. Which document is used for transportation of goods under GST?
Beginner
A
Delivery Challan
B
Bill of Supply
C
Tax Invoice
D
ISD Invoice
Show the answer
A · Delivery Challan
A delivery challan is used when goods are transported from one place to another, as per the source.
Q5. How many copies of a tax invoice are prepared for supply of goods?
Beginner
A
Four
B
Two
C
Three
D
One
Show the answer
C · Three
For taxable supply of goods, the invoice shall be prepared in triplicate (three copies).
Q6. Which of the following is NOT one of the three electronic ledgers under GST?
Beginner
A
Electronic Cash Ledger
B
Electronic Credit Ledger
C
Electronic Liability Ledger
D
Electronic Refund Ledger
Show the answer
D · Electronic Refund Ledger
The three ledgers are Electronic Cash Ledger, Electronic Credit Ledger, and Electronic Liability Ledger. Electronic Refund Ledger is not mentioned.
Q7. The Electronic Cash Ledger is like an e-wallet and records:
Beginner
A
Input Tax Credit availed
B
Distribution of credit by ISD
C
Total GST liability
D
Cash deposits made for GST payments
Show the answer
D · Cash deposits made for GST payments
The Electronic Cash Ledger records all cash deposits made by a taxpayer into the government account for GST payments.
Q8. In the problem of Mr. Goutham Bose, what is the total liability in the Electronic Liability Ledger?
Beginner
A
₹48,000
B
₹2,58,000
C
₹3,00,000
D
₹90,000
Show the answer
D · ₹90,000
The liability ledger shows CGST 20,000 + SGST 20,000 + IGST 50,000 = ₹90,000.
Q9. A tax invoice is mandatory for supply of goods or services valued less than ₹200.
Beginner
A
True
B
False
Show the answer
B · False
As per the source, if the value of goods or services supplied is less than ₹200, a tax invoice is not compulsory.
Q10. The Electronic Liability Ledger reflects the total GST liability of a taxpayer for a specific tax period.
Beginner
A
True
B
False
Show the answer
A · True
The Electronic Liability Ledger is a record which reflects the total GST liability of a taxpayer for a specific tax period.
Building up · 6 questions
Q11. Which of the following is NOT a mandatory field in a GST invoice?
Intermediate
A
HSN code of goods or Accounting Code of services
B
Taxable value of supply
C
Name, address and GSTIN of the supplier
D
Signature of the recipient
Show the answer
D · Signature of the recipient
The invoice rules mandate the signature of the supplier or his authorized representative, not of the recipient.
Q12. If a tax invoice has been issued and the taxable value is found to be less than the actual taxable value, the supplier should issue a:
Intermediate
A
Debit Note
B
Credit Note
C
Refund Voucher
D
Payment Voucher
Show the answer
A · Debit Note
As per Sec 34(3), a debit note is issued when the tax invoice issued is less than the actual taxable value.
Q13. Which form is mandatory for depositing any amount towards GST exceeding ₹10,000 electronically?
Intermediate
A
PMT-06
B
GSTR-2
C
GSTR-1
D
Rule 51
Show the answer
A · PMT-06
It is mandatory to deposit any amount towards GST exceeding ₹10,000 electronically only using PMT-06.
Q14. The Electronic Credit Ledger can be used to offset:
Intermediate
A
Late fees
B
GST liability on outward supplies
C
Penalties
D
Interest
Show the answer
B · GST liability on outward supplies
Credits in the Electronic Credit Ledger can be used only for offsetting GST liability on outward supplies and cannot be applied towards interest, penalties, late fees etc.
Q15. According to the utilization sequence of ITC, CGST credit can be used to offset:
Intermediate
A
IGST liabilities first, then SGST
B
SGST liabilities first
C
CGST liabilities first, then IGST
D
Only CGST liabilities
Show the answer
C · CGST liabilities first, then IGST
CGST credit can be used to offset CGST liabilities first and any excess can be applied to IGST liabilities. It cannot be used for SGST payments.
Q16. In the set-off for Mr. Goutham Bose, how much cash is used to pay IGST liability?
Intermediate
A
₹34,000
B
₹4,000
C
₹50,000
D
₹16,000
Show the answer
A · ₹34,000
IGST liability is ₹50,000. IGST credit of ₹16,000 is used first, leaving ₹34,000 to be paid from cash ledger.
Study it properly — free, in the app
The full Veda Bites deck, complete notes, spaced-repetition flashcards, leveled MCQs, tests and games for this kit — plus Daily Facts and the Arena, every day.