Question 1

A key condition for accepting transaction value is that:

Accepted Answer

Transaction value is generally accepted when parties are **not related** and price is the **sole consideration** (concept).

Question 2

The taxable event under GST is:

Accepted Answer

Under GST, the levy is triggered on **supply** (concept).

Question 3

Exports under GST are generally treated as:

Accepted Answer

Exports are treated as **zero-rated supplies** (concept/overview).

Question 4

GSTR-3B is best described as:

Accepted Answer

**GSTR-3B** is a **summary** return where tax payment is made (concept/overview).

Question 5

Zero-rated supply generally allows:

Accepted Answer

Zero-rated supplies typically allow refund of **IGST paid** or **unutilized ITC** (overview).

Question 6

A casual taxable person is best described as:

Accepted Answer

**Casual taxable person** makes temporary supplies in a State/UT (concept).

Question 7

In GST payment, the balance tax payable after ITC set-off is generally paid through:

Accepted Answer

After set-off using **ITC**, remaining liability is paid through **cash ledger** (concept/overview).

Question 8

If parties are related or price is not the sole consideration, valuation is generally done using:

Accepted Answer

When transaction value is not acceptable, GST valuation rules/methods apply (overview).

Question 9

If IGST is paid on exports, refund is generally claimed of:

Accepted Answer

One export route is paying **IGST** and then claiming refund of **IGST paid** (overview).

Question 10

Audit under GST mainly aims to:

Accepted Answer

GST **audit** checks correctness of turnover, tax paid, refund and **ITC** claimed (concept/overview).

Question 11

Penalties in GST generally depend on:

Accepted Answer

Penalties are typically higher for **fraud/wilful misstatement** than for genuine errors (overview).

Question 12

ITC in GST refers to:

Accepted Answer

ITC means **Input Tax Credit** (concept).

Question 13

A person opting for Composition Scheme generally:

Accepted Answer

Under **composition scheme**, **ITC is not available** (basic concept).

Question 14

In an intra-state supply, the tax generally charged is:

Accepted Answer

**Intra-state** supplies are taxed as **CGST + SGST/UTGST** (concept).

Question 15

For an inter-state supply, the tax shown on the invoice is generally:

Accepted Answer

Inter-state supplies generally attract **IGST** (concept).

Question 16

Transaction value generally means:

Accepted Answer

**Transaction value** is the price actually paid/payable when conditions are satisfied (concept).

Question 17

A key benefit of GST registration for B2B customers is:

Accepted Answer

Registered supplies support **ITC** flow to business customers (concept).

Question 18

GST is commonly referred to as a self-assessment tax system because:

Accepted Answer

Under **self-assessment**, taxpayer determines liability, files returns, and pays tax (concept).

Question 19

Who may generate an e-way bill (overview)?

Accepted Answer

Depending on responsibility and registration status, supplier/recipient/transporter may generate it (overview).

Question 20

ITC may need reversal if inputs are used for:

Accepted Answer

If used for **exempt** supplies/personal use, proportionate ITC reversal may apply (concept).

Question 21

Imports generally attract IGST. (True/False)

Accepted Answer

True. Imports are generally treated as inter-state supplies and attract **IGST** (concept).

Question 22

When do valuation rules apply in GST (one point)?

Accepted Answer

Valuation rules apply when **transaction value cannot be accepted**, e.g., parties are **related** or price is not the **sole consideration** (concept).

Question 23

What is meant by blocked credit (one line)?

Accepted Answer

**Blocked ITC** is input tax credit that is **specifically not allowed** under GST law (concept/overview).

Question 24

Define “taxable person” under GST (basic).

Accepted Answer

A **taxable person** is a person who is **registered** or required to be registered and is liable to pay GST under the law (concept).

Question 25

What is meant by “place of supply” (in one line)?

Accepted Answer

**Place of supply** is the rule-based location considered as the **destination/consumption place** for a supply, used to decide intra vs inter-state (concept).

Question 26

Define assessment under GST (basic).

Accepted Answer

**Assessment** means determining/verifying a taxpayer’s **tax liability** (or refund) based on returns/records as per GST provisions (concept/overview).

Question 27

Name any one document carried during movement of goods with e-way bill.

Accepted Answer

**Tax invoice** / bill of supply / delivery challan (any one) (concept).

Question 28

State one benefit of ITC.

Accepted Answer

ITC reduces the **cascading effect (tax-on-tax)** and makes GST a **value-added** tax (concept).

Question 29

Penalties are generally higher in fraud cases than genuine errors. (True/False)

Accepted Answer

True. **Fraud/wilful misstatement** generally attracts higher penalties than bona fide errors (overview).

Question 30

What is transaction value (in one line)?

Accepted Answer

**Transaction value** is the **price actually paid or payable** for a supply when conditions are satisfied (concept).

Question 31

Why is GST called a ‘tax on supply’ and not only a tax on sale? Explain briefly (any three points) with a small table.

Accepted Answer

GST is a **tax on supply** because the levy is triggered by a broader set of transactions than just sale (concept).

Any three points:
- covers **sale** as well as other forms like transfer, barter, exchange, lease/rental, and services (concept)
- focuses on the economic activity of making goods/services available in business
- helps apply one charging concept across goods and services uniformly

| Term | Simple meaning |
|---|---|
| **Sale** | transfer of ownership of goods for price |
| **Supply** | wider term; includes sale + other forms of providing goods/services (concept) |

Question 32

Explain aggregate turnover (concept) used for threshold registration (any three points) using a small table.

Accepted Answer

**Aggregate turnover** is a broad turnover measure used to decide whether registration is required (concept).

| Point | Explanation (concept) |
|---|---|
| Basis | linked to turnover threshold for registration |
| Coverage | considers value of supplies under the same PAN (all-India) |
| Nature | includes more than just taxable sales (basic idea) |

Exact inclusions/exclusions are as per law; write the concept clearly.

Question 33

Differentiate Part A and Part B of e-way bill (brief) using a table.

Accepted Answer

Difference (basics) (overview):

| Part | What it contains |
|---|---|
| **Part A** | supply details: GSTINs, document no/date, value, HSN, reason, etc. |
| **Part B** | transport details: vehicle number/transporter details |

Key idea: Part B completes transport information for movement (basics).

Question 34

List any three inclusions in value of supply (exam points) using a table.

Accepted Answer

Any three inclusions (concept/overview):

| Inclusion | Example |
|---|---|
| Incidental expenses | **packing**, commission, outward freight if charged |
| Taxes/fees (other than GST) | duties/fees charged by supplier (concept) |
| Interest/late fee/penalty | for delayed payment (concept) |
| Subsidy linked to price | non-government subsidies (overview) |

Write any three items in points/table form.

Question 35

Explain how time of supply and place of supply together affect GST compliance (any three points) with a small flowchart.

Accepted Answer

Both concepts control correct reporting and payment (concept):

- **Place of supply** decides tax type: **IGST** vs **CGST+SGST/UTGST**
- **Time of supply** decides *which return period* to report and pay GST
- Together they help avoid wrong tax payment and interest/penalty risk (overview)

Flowchart:

```text
Supply -> Place of supply (IGST or CGST+SGST)
      -> Time of supply (tax period)
      -> Invoice -> Return filing + payment
```

Question 36

Write an exam-style answer on GST appeals: meaning, why appeals are needed, and basic stages (with a table/flow).

Accepted Answer

### Meaning
An **appeal** is a statutory remedy to challenge an assessment/audit/enforcement order if the taxpayer disagrees (concept/overview).

### Why appeals are needed
- ensures **fairness** and correction of errors
- provides a structured dispute resolution path
- builds confidence in compliance system (concept/overview)

| Stage | What happens (overview) |
|---|---|
| Order passed | demand/decision issued by authority |
| Appeal filed | within time, with prescribed form/fee |
| Hearing | taxpayer presents facts and law |
| Appellate order | decision passed; further appeal possible |

Flow:

```text
Order -> Appeal -> Hearing -> Appellate decision -> Further appeal (if applicable)
```

Conclusion: Appeals provide a formal mechanism to resolve disputes under GST (concept).

Question 37

Write an exam-style note on interest and late fee under GST for delayed compliance (meaning + when applicable + table).

Accepted Answer

### Meaning
- **Interest**: charged for **late payment** of tax.
- **Late fee**: charged for **late filing** of returns (concept/overview).

### When applicable (table)

| Situation | What applies (concept) |
|---|---|
| Tax paid after due date | **interest** |
| Return filed after due date | **late fee** |
| Both delayed | interest + late fee (as applicable) |

### Key exam points
- Due dates vary by category/notifications; write “as prescribed”.
- Regular timely filing avoids extra cost and compliance issues (concept).

Conclusion: Interest/late fee encourage timely GST payment and return filing.

Question 38

Explain time of supply: meaning and basic trigger events (exam-style) with a table.

Accepted Answer

### Meaning
**Time of supply** is the time when **GST liability arises** for a supply, used to decide the return/tax period (concept).

### Why it is required
GST is paid through periodic returns, so law needs a rule to assign a supply to the correct period and prevent delay/manipulation (concept).

### Basic trigger events (table)

| Event (overview) | How it relates to liability |
|---|---|
| **Invoice issued** | indicates tax has been charged/documented |
| **Payment received** | indicates consideration received |
| Supply completed / service provided | confirms the supply activity |

Conclusion: Time of supply rules ensure timely tax payment and correct period reporting (concept).

Question 39

Explain GST registration: meaning, threshold concept and GSTIN (exam-style) using headings and a small table.

Accepted Answer

### Meaning
GST registration enrolls a person under GST so they become a **registered taxable person** and receive a unique **GSTIN** (concept).

### Threshold concept
Registration is generally required when **aggregate turnover** crosses the prescribed limit (concept). Aggregate turnover is a broad turnover measure linked to the PAN (basic idea).

### GSTIN (use)
**GSTIN** is used on invoices and returns to identify the taxpayer and support the **ITC** chain (concept).

| Item | Key point |
|---|---|
| Registration | makes you part of GST compliance system |
| Threshold | based on **aggregate turnover** |
| GSTIN | unique identification for invoices/returns |

Conclusion: Registration ensures lawful tax collection and compliance, and supports credit flow in GST (concept).

Question 40

Explain zero-rated supplies and refund mechanism in GST (exam-style) with a table and flowchart.

Accepted Answer

### Meaning
**Zero-rated supplies** (exports/SEZ) are treated so that the final tax burden on exports is zero, supported by refund of **IGST** or **ITC** (concept/overview).

### Two routes (table)

| Route | Payment on export | Refund claim |
|---|---|---|
| **LUT/Bond** | no IGST payment | refund of unutilized **ITC** |
| Pay **IGST** | pay IGST on export | refund of **IGST** paid |

### Flow (overview)

```text
Export supply -> Choose route (LUT or pay IGST)
            -> File returns + refund application -> Verification -> Refund sanctioned
```

Conclusion: Zero-rating ensures exports are competitive and not burdened by domestic GST (concept).

Goods and Services Tax (GST) — Question Paper

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