📝CA Final IDT May'24 MCQs By CA (Dr) Mahesh Gour Sir

Chap - ITC


14. III. Mr. X is in possession of certain Capital Goods & purchases more of them as per Following particulars.
✓ Capital Goods D (has been exclusively used for 2 years for Exempted Supply)
✓ Input tax paid on such capital Goods Rs. 1,20,000.
Now such Capital Goods used for taxable as well as exempted supplies.


III. Determine the amount added in output tax liability or Reversal in current taxable period, if total turnover is
Rs. 12 Lakh exempted supply of current period is 6,00,000.
option (a) Rs. 48,000 (b) Rs. 1,000
(c) Rs. 49,000 (d) None of the above

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📝CA Final IDT May'24 MCQs By CA (Dr) Mahesh Gour Sir

Chap - ITC


15. Palliwal Associates, a firm of Chartered Accountants registered under GST, located in Jaipur, Rajasthan is
providing professional consultancy services to its various clients.
It has taken consultancy services for its business from another establishment of its firm in UK. However, it has
not paid any consideration for the same.
Such services would have been taxable @ 18% (CGST @ 9%, SGST @ 9% and IGST @ 18%), had the same been
received in India. Further, Palliwal Associates would have paid ₹ 4.00 lakh, had it not received the said services
from its UK establishment.
Determine the GST liability of Palliwal Associates.

(a) IGST - ₹72,000
(b) CGST - ₹ 36,000 & SGST - ₹ 36,000, since place of supply is inIndia
(c) Nil, since no foreign exchange was paid.
Nil, since such services are exempt.

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📝CA Final IDT May'24 MCQs By CA (Dr) Mahesh Gour Sir

Chap - ITC


16. State whether the following statements are true or false:
1. Zero rated supply means supply of any goods or services or both which attracts nil rate of tax & supply
to SEZ.
2. Exempt supply means export of goods or services or both or supply of goods or services or both to a
Special Economic Zone developer or a Special Economic Zone unit.
3. Non-taxable supply means supply of goods or services or both which is not leviable to tax under the
CGST Act, 2017 but leviable to tax under the IGST Act, 2017.
4. ITC may be availed for making zero rated supply of exempt goods.
option (a) False, False, False, True (b) True, False, False, False
(c) True, True, False, False (d) False, False, False, False
(e) None of the above

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📝CA Final IDT May'24 MCQs By CA (Dr) Mahesh Gour Sir

Chap - ITC


18. Mr. Mehul Roy, proprietor of M/s. Royal Shoe & Company, is running a business of manufacturing shoes with the brand name of ‘JUNOON’. The manufacturing unit is located in Delhi and is registered under GST.However,
due to low profitability in the business, he has decided to transfer his business to his friend Mr. Dilip Tijori. Mr.
Dilip Tijori is already running the business of manufacturing shoes under a proprietorship firm named M/s Hawai
Shoes & Company which is located in Mumbai and registered under GST.
Mr. Mehul Roy has approached you to help him with the issue of transfer of unutilized input tax credit in
electronic credit ledger of M/s. RoyalShoe & Company to M/s Hawai Shoes & Company.
Advise Mr. Mehul Roy with the correct option in accordance with the provisions of the CGST Act, 2017:
option

(a) M/s. Royal Shoe & Company cannot transfer unutilised input tax credit in its electronic credit ledger to
M/s Hawai Shoes & Company as the proprietors are different.

(b) M/s. Royal Shoe & Company can transfer the unutilized input tax credit in its electronic credit ledger to
M/s Hawai Shoes & Company and it can further be utilized in setting off GST liability for succeeding
period.

(c) M/s. Royal Shoe & Company can transfer unutilized input tax credit in its electronic credit ledger to M/s
Hawai Shoes & Company and it can be further utilized in setting off GST liability for a period upto the
month of September following the year in which ITC was transferred.

(d) M/s. Royal Shoe & Company cannot transfer unutilized input tax credit in its electronic credit ledger to
M/s Hawai Shoes & Company but can claim refund of such unutilized input tax credit.

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📝CA Final IDT May'24 MCQs By CA (Dr) Mahesh Gour Sir

Chap - ITC


20. Compute the value of ‘exempted supply’ for purpose of section 17(2) of the CGST Act, 2017 from the following
details:
(i) Value of alcoholic liquor for human consumption: Rs. 1,60,000
(ii) Value of consultancy services supplied: Rs. 3,00,000
(iii) Securities of face value of Rs. 1,00,000 sold for Rs. 95,000
option (a) Rs. 1,60,000 (b) Rs. 2,50,000
(c) Rs. 2,45,000 (d) Rs. 1,60,950

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Chap - ITC


21. Can credit be taken on input lying in stock in case of new registration, voluntary registration, and change of
scheme from composition to regular scheme and from exempted goods / services to taxable goods/services.
What is the time limit for taking said credit?
option (a) 30th November of succeeding financial year or Date of furnishing annual return.
(b) 1 year from the date of invoice
(c) 3 years from the date of invoice
(d) 5 years from the date of invoice

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📝CA Final IDT May'24 MCQs By CA (Dr) Mahesh Gour Sir

Chap - ITC


23. Input tax Credit is available on all supplies which are used or intended to be used in the course or furtherance of
business. Input tax credit will be available under which of the following situations?
option (a) GST paid on car used in the course and furtherance of business (Seating capacity= 7 Person)
(b) GST paid on food & Beverages.
(c) GST paid on goods or services or both used for House hold use.
(d) IGST @18% paid on inputs purchased from a vendor in Rajasthan where the recipient is registered in Mumbai.

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