Goods & Services Tax — Multiple Choice Questions

IGST is charged on :

1. interstate transaction

2. intrastate transaction

3. both (1) and (2)

4. none of these

Answer

IGST is charged on interstate transaction.

Hence, Option 1 is the correct option.

ITC stands for :

1. Income Tax Calculations

2. Input Tax Credit

3. Instant Tax Credit

4. None of these

Answer

ITC stands for Input Tax Credit.

Hence, Option 2 is the correct option.

GST is :

1. a direct tax

2. an indirect tax

3. both (1) and (2)

4. neither (1) nor (2)

Answer

GST is an indirect tax.

Hence, Option 2 is the correct option.

GST which is collected by the state government for intrastate transaction is known as :

1. CGST

2. SGST

3. IGST

4. All of these

Answer

GST which is collected by the state government for intrastate transaction is known as SGST.

Hence, Option 2 is the correct option.

The selling price of a shirt excluding GST is ₹ 800. If the rate of GST is 12%, then the total price of the shirt is :

1. ₹ 704

2. ₹ 96

3. ₹ 896

4. ₹ 848

Answer

Given,

Shirt price (excluding GST) = ₹ 800

Rate of GST = 12%

GST = $\dfrac{12}{100} \times 800$ = ₹ 96

Total price of shirt = Shirt price (excluding GST) + GST

= ₹ 800 + ₹ 96

= ₹ 896.

Hence, option 3 is the correct option.

For a transaction of ₹ 80,000 in Delhi, if GST rate is 18%, then SGST is :

1. ₹ 7,200

2. ₹ 14,400

3. ₹ 6,400

4. nil

Answer

Given,

Amount of transaction = ₹ 80,000

Rate of GST = 18%

SGST rate = CGST rate = $\dfrac{\text{Rate of GST}}{2}$ = 9%

SGST = $\dfrac{9}{100} \times 80,000$ = ₹ 7,200.

Hence, option 1 is the correct option.

The printed price of an article is ₹ 3,080. If rate of GST is 10%, then the GST charged is :

1. ₹ 154

2. ₹ 308

3. ₹ 30.80

4. ₹ 15.40

Answer

Given,

Printed price = ₹ 3,080

Rate of GST = 10%

GST = $\dfrac{10}{100} \times 3,080$ = ₹ 308.

Hence, option 2 is the correct option.

The GST of an article is reduced from 12% to 5% and due to this, the price paid for the article is cut down by ₹ 14. The original price of the article is :

1. ₹ 50

2. ₹ 98

3. ₹ 100

4. ₹ 200

Answer

Let the original price (before GST) = ₹ x

Price paid at 12% GST = x + 12% of (x)

= x + $\dfrac{12}{100}$ x

= x + 0.12x

= 1.12x

Price paid at 5% GST = x + 5% of (x)

= x + $\dfrac{5}{100}$ x

= x + 0.05x

= 1.05x

Given,

The price paid for the article is cut down by ₹ 14.

Difference in price paid = 1.12x - 1.05x

⇒ 14 = 1.12x - 1.05x

⇒ 14 = 0.07x

⇒ x = $\dfrac{14}{0.07}$

⇒ x = 200.

The original price of the article is = ₹ 200

Hence, option 4 is the correct option.

In a transaction from Delhi to Lucknow, MRP = ₹ 10,000, discount = 10%, GST = 28%. Here IGST is :

1. ₹ 2,520

2. ₹ 5,040

3. nil

4. none of these

Answer

Given,

MRP = ₹ 10,000

Discount % = 10%

Discount = $\dfrac{10}{100} \times 10,000$ = ₹ 1,000

Discounted price = MRP - Discount = ₹ 10,000 - ₹ 1,000 = ₹ 9,000.

Since, the transaction is an interstate transaction.

IGST % = GST % = 28%

IGST = $\dfrac{28}{100} \times 9,000$ = ₹ 2,520

Hence, option 1 is the correct option.

A refrigerator was sold for ₹ 15,000 under intrastate transaction from station A to station B and the GST rate is 18%. CGST is equal to :

1. ₹ 1,400

2. ₹ 1,350

3. ₹ 1,300

4. ₹ 2,700

Answer

Given,

A refrigerator was sold for ₹ 15,000 under intrastate transaction from station A to station B.

Rate of GST = 18%

In intrastate transaction,

SGST rate = CGST rate = $\dfrac{\text{Rate of GST}}{2}$ = 9%

SGST = $\dfrac{9}{100} \times 15,000$ = ₹ 1,350.

Hence, option 2 is the correct option.

For an inter-state sale, the CGST paid by a dealer to central government is ₹ 120.If the marked price of the article is ₹2000, the rate of GST is:

1. 6%

2. 10%

3. 12%

4. 16.67%

Answer

CGST % = $\dfrac{CGST}{M.P.} \times 100$

Substituting values we get :

CGST % = $\dfrac{120}{2000} \times 100$ = 6%

GST% = 2 × CGST% = 2 × 6% = 12%.

Hence, option 3 is the correct option.

A consumer bought a T.V. from a dealer at a discount of 20% on the marked price of ₹ 40,000. If the rate of GST is 18%, then the tax paid by the consumer is :

1. ₹ 5,760

2. ₹ 2,880

3. nil

4. ₹ 7,200

Answer

Given,

M.P. of T.V. = ₹ 40,000

Rate of GST = 18%

Discount % = 20%

Discount = $\dfrac{20}{100} \times 40,000$ = ₹ 8,000

Discounted price = ₹ 40,000 - ₹ 8,000 = ₹ 32,000

GST = $\dfrac{18}{100} \times 32,000$ = ₹ 5,760

Hence, option 1 is the correct option.

An article which is marked at ₹ 1200 is available at a discount of 20% and the rate of GST is 18%. The amount of SGST is :

1. ₹ 86.40

2. ₹ 108.00

3. ₹ 172.80

4. ₹ 216.00

Answer

M.P. = ₹ 1200

Discount = 20% = $\dfrac{20}{100}$ × 1200 = ₹ 240

Price after discount = ₹ 1200 - ₹ 240 = ₹ 960.

GST = 18%

SGST = $\dfrac{GST}{2}$ % = 9%

= $\dfrac{9}{100}$ × 960

= 9 × 9.6

= ₹ 86.40

Hence, Option 4 is the correct option.

The marked price of an article is ₹ 5,000. The shopkeeper gives a discount of 10%. If the rate of GST is 12%, then the amount paid by the customer including GST is :

1. ₹ 5,040

2. ₹ 6,100

3. ₹ 6,272

4. ₹ 6,160

Answer

Given,

M.P. of the article = ₹ 5,000

Rate of GST = 12%

Discount % = 10%

Discount = $\dfrac{10}{100} \times 5,000$ = ₹ 500

Discounted price = ₹ 5,000 - ₹ 500 = ₹ 4,500

GST = $\dfrac{12}{100} \times 4,500$ = ₹ 540

Amount paid by customer = Discounted price + GST

= ₹ 4,500 + ₹ 540

= ₹ 5,040.

Hence, option 1 is the correct option.

The marked price of an article is ₹ 1375. If the CGST is charged at a rate of 4%, then the price of the article including GST is:

1. ₹ 55

2. ₹ 110

3. ₹ 1,430

4. ₹ 1,485

Answer

Given,

Marked price of the article = ₹1,375.

The CGST (Central Goods and Services Tax) = 4%.

As we know that the total GST is composed of CGST and SGST (State Goods and Services Tax) at equal rates, the total GST rate is 8% (4% CGST + 4% SGST).

GST = 8% of marked price of the article

= $\dfrac{8}{100} \times 1375 = \dfrac{8 \times 1375}{100} = \dfrac{11000}{100}$ = ₹ 110

Final Price = Marked Price + GST Amount

= ₹1,375 + ₹110 = ₹1,485

Hence, option 4 is the correct option.

A retailer buys an article at its listed price from a wholesaler and sells it to a consumer in the same state after marking up the price by 20%. The list price of the article is ₹ 2500, and the rate of GST is 12%. What is the tax liability of the retailer to the central government?

1. ₹ 0

2. ₹ 15

3. ₹ 30

4. ₹ 60

Answer

For retailer,

C.P. = ₹ 2500

G.S.T. = 12%

C.G.S.T. = $\dfrac{12}{2}$ % = 6%.

C.G.S.T. paid = $\dfrac{6}{100}$ × 2500 = ₹ 150.

Given,

Retailer sells the article to the consumer in the same state after marking up the price by 20%.

S.P. = ₹ 2500 + 20%

= ₹ 2500 + $\dfrac{20}{100}$ ×2500

= ₹ 2500 + ₹ 500

= ₹ 3000.

C.G.S.T. = 6%

C.G.S.T. charged = $\dfrac{6}{100}$ × 3000 = ₹ 180.

Tax liability = C.G.S.T. charged - C.G.S.T. given

= ₹ 180 - ₹ 150

= ₹ 30.

Hence, Option 3 is the correct option.

A shopkeeper marked a pressure cooker at ₹ 1800. The rate of GST on pressure cooker is 12%. The customer has only ₹ 1792 with him and he requests the shopkeeper to reduce the price so that he can buy the cooker in ₹ 1792. What percent discount must the shopkeeper give ?

1. 10%

2. $11\dfrac{1}{9}$%

3. 12%

4. $11\dfrac{1}{2}$%

Answer

M.P. of pressure cooker = ₹ 1800.

Let after discount the price of cooker be ₹ x.

GST on pressure cooker = 12%

According to question,

∴ x + $\dfrac{12}{100}$ × x = 1792

⇒ x + 0.12x = 1792

⇒ 1.12x = 1792

⇒ x = $\dfrac{1792}{1.12}$ = ₹ 1600.

Discount given by shopkeeper = ₹ 1800 - ₹ 1600 = ₹ 200.

Discount % = $\dfrac{\text{Discount}}{\text{M.P.}}$ ×100

= $\dfrac{200}{1800} \times 100$

= $\dfrac{100}{9}$

= $11\dfrac{1}{9}$

Hence, option 2 is the correct option.

A shopkeeper bought an article from a dealer at ₹ 1,000. He sold it to the customer at ₹ 1,200. If the rate of GST is 12%, then :

(i) GST paid by the dealer is :

1. ₹ 120

2. ₹ 240

3. ₹ 144

4. ₹ 288

(ii) The amount paid by the customer to buy the item is :

1. ₹ 1,200

2. ₹ 1,300

3. ₹ 1,344

4. ₹ 1,350

Answer

(i) Given,

A shopkeeper bought an article from a dealer at ₹ 1,000.

Rate of GST = 12%

GST charged by dealer = $\dfrac{12}{100} \times 1,000$ = ₹ 120.

This will be the GST paid by dealer to government.

Hence, option 1 is the correct option.

(ii) Given,

Shopkeeper sells the article to the customer for ₹ 1,200.

GST = $\dfrac{12}{100} \times 1,200$ = ₹ 144.

Amount paid by customer = ₹ 1,200 + ₹ 144 = ₹ 1,344.

Hence, option 3 is the correct option.

Three friends A, B and C live in Delhi. A sells medicine worth ₹ 50,000 to B, B sells the same medicine to C at profit of ₹ 6,000. If rate of GST is 12%, then :

(i) SGST paid by B is :

1. ₹ 300

2. ₹ 360

3. ₹ 400

4. ₹ 425

(ii) Total CGST is :

1. ₹ 2,600

2. ₹ 2,700

3. ₹ 3,360

4. ₹ 3,500

Answer

Given,

A sells medicine worth ₹ 50,000 to B.

Rate of GST = 12%

Since, the transaction is intrastate.

SGST rate = $\dfrac{\text{GST rate}}{2}$ = 6%

SGST paid by B = $\dfrac{6}{100} \times 50,000$ = ₹ 3,000

Given,

B sells the same medicine to C at profit of ₹ 6,000.

Thus, B sells the medicine to C at ₹ 56,000.

SGST rate = $\dfrac{\text{GST rate}}{2}$ = 6%

SGST charged by B = $\dfrac{6}{100} \times 56,000$ = ₹ 3,360

Net SGST paid by B = SGST charged by B - SGST paid by B

= ₹ 3,360 - ₹ 3,000

= ₹ 360.

Hence, option 2 is the correct option.

(ii) From part (i),

B sells the medicine to C (end-user) at ₹ 56,000.

CGST rate = $\dfrac{\text{GST rate}}{2}$ = 6%

CGST = $\dfrac{6}{100} \times 56,000$ = ₹ 3,360.

Hence, option 3 is the correct option.

Mr. Gupta wanted to book a semidelux room in a hotel for ₹ 750. Since semidelux room was not available, he booked a delux room for ₹ 1,400. If GST for a room below ₹ 1,000 is 18% and GST for a room above ₹ 1,000 is 28%, then :

(i) The amount paid by the Mr. Gupta for the delux room is :

1. ₹ 1,700

2. ₹ 1,792

3. ₹ 1,800

4. ₹ 1,850

(ii) The extra GST Mr. Gupta paid for the delux room is :

1. ₹ 257

2. ₹ 280

3. ₹ 300

4. ₹ 425

Answer

(i) Since, delux room costs for ₹ 1,400, thus GST charged will be 28%.

GST = $\dfrac{28}{100} \times 1,400$ = ₹ 392

Amount paid by Mr. Gupta for the delux room = ₹ 1,400 + ₹ 392 = ₹ 1,792.

Hence, option 2 is the correct option.

(ii) Cost of semidelux room = ₹ 750

Rate of GST for semidelux room = 18%

GST for semidelux room = $\dfrac{18}{100} \times 750$ = ₹ 135

From part (i),

GST for delux room = ₹ 392

Extra GST Mr. Gupta paid for the delux room = ₹ 392 - ₹ 135 = ₹ 257.

Hence, option 1 is the correct option.

A dealer purchased a music system from the manufacturing company for ₹ 25,000 and sold it to a consumer in the same city at a profit of 20%. If the rate of GST is 18%, then :

(i) The amount of input CGST for the dealer is :

1. ₹ 2,250

2. ₹ 4,500

3. ₹ 5,000

4. ₹ nil

(ii) The amount of GST payable by the dealer to the goverment is :

1. ₹ 2,250

2. ₹ 900

3. ₹ 450

4. nil

(iii) The amount the consumer has to pay for the music system is :

1. ₹ 30,000

2. ₹ 32,700

3. ₹ 35,400

4. ₹ 36,000

Answer

(i) C.P. for dealer = ₹ 25,000

Rate of GST = 18%

Since, the transaction is intrastate.

CGST rate = SGST rate = $\dfrac{\text{Rate of GST}}{2}$ = 9%.

CGST paid by dealer = $\dfrac{9}{100} \times 25000$ = ₹ 2,250

∴ Input CGST for dealer = ₹ 2,250.

Hence, Option 1 is the correct option.

(ii) From part (i),

CGST paid by dealer = ₹ 2,250

SGST = CGST = ₹ 2,250

Total GST paid by dealer = ₹ 2,250 + ₹ 2,250 = ₹ 4,500.

Given,

Dealer sold the music system at a profit of 20%.

S.P. of music system = ₹ 25,000 + $\dfrac{20}{100}\times 25,000$

= ₹ 25,000 + ₹ 5,000

= ₹ 30,000.

GST charged by dealer = $\dfrac{18}{100} \times 30,000$ = ₹ 5,400.

Net GST payable by the dealer to the goverment = GST charged by dealer - GST paid by dealer

= ₹ 5,400 - ₹ 4,500

= ₹ 900.

Hence, Option 2 is the correct option.

(iii) C.P. of music system for consumer = ₹ 30,000

GST paid by consumer = GST charged by dealer = ₹ 5,400

Amount paid by consumer for music system = ₹ 30,000 + ₹ 5,400 = ₹ 35,400.

Hence, Option 3 is the correct option.