GST Unit 3.3: 15 MCQs with answers

C · Section 2(61)

Section 2(61) of the CGST Act, 2017 defines Input Service Distributor.

B · FORM GSTR-6

Every ISD must file a return in FORM GSTR-6 containing details of invoices and distribution of ITC.

D · Rs. 1.5 crore

Under section 10(1), the turnover limit is Rs. 1.5 crore (Rs. 75 lakh for special category states).

A · 1% (0.5% CGST + 0.5% SGST)

Eligible manufacturers and traders pay 1% (0.5% CGST + 0.5% SGST/UTGST) of turnover.

A · Bill of supply

Composition taxpayers are not eligible to issue taxable invoices; they must issue a bill of supply.

B · 2% (1% CGST + 1% SGST or 2% IGST)

TDS is deducted at 2% (1% CGST + 1% SGST or 2% IGST) on payments exceeding Rs. 2,50,000 under a contract.

B · FORM GSTR-7A

The TDS certificate is issued in Form GSTR-7A by the deductor to the deductee.

C · Electronic Commerce Operator

TCS is collected by the Electronic Commerce Operator when a supplier supplies taxable goods or services through its portal.

A · 1% (0.5% CGST + 0.5% SGST or 1% IGST)

TCS is collected at 1% (0.5% CGST + 0.5% SGST for intra-state, or 1% IGST for inter-state).

A · FORM GSTR-8

An E-Commerce Operator is required to furnish a monthly statement in Form GSTR-8 by the 10th of the following month.

B · False

ISD is only for distribution of ITC on input services, not on goods, inputs or capital goods.

B · False

A composition taxpayer cannot claim input tax credit of purchases.

A · Can distribute ITC on capital goods

ISD is only for distribution of ITC on input services, not on goods, inputs or capital goods.

A · IGST only

As per Rule 39, when ISD and recipient are in different states, IGST is distributed as IGST.

C · A person engaged in inter-state outward supply of goods

A person engaged in inter-state outward supply of goods and services is not eligible for composition scheme.