GST Compliance 3.2: 16 MCQs with answers

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.

C · Bill of Supply

As per Sec 31(3)(c), a registered person supplying exempted goods or services shall issue a bill of supply.

C · Receipt Voucher

As per Sec 31(3)(d), a receipt voucher can be issued evidencing receipt of advance payment.

A · Delivery Challan

A delivery challan is used when goods are transported from one place to another, as per the source.

C · Three

For taxable supply of goods, the invoice shall be prepared in triplicate (three copies).

D · Electronic Refund Ledger

The three ledgers are Electronic Cash Ledger, Electronic Credit Ledger, and Electronic Liability Ledger. Electronic Refund Ledger is not mentioned.

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.

D · ₹90,000

The liability ledger shows CGST 20,000 + SGST 20,000 + IGST 50,000 = ₹90,000.

B · False

As per the source, if the value of goods or services supplied is less than ₹200, a tax invoice is not compulsory.

A · True

The Electronic Liability Ledger is a record which reflects the total GST liability of a taxpayer for a specific tax period.

D · Signature of the recipient

The invoice rules mandate the signature of the supplier or his authorized representative, not of the recipient.

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.

A · PMT-06

It is mandatory to deposit any amount towards GST exceeding ₹10,000 electronically only using PMT-06.

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.

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.

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.