Exemption from GST Multiple Choice Questions
1. Select the correct statement?
A. Transfer of a going concern wholly is not exempt from GST
B. Transfer of a going concern is partly exempt from GST
C. Transfer partly as going concern is exempted from GST
D. Transfer of a going concern is exempt from GST
Answer: D. Transfer of a going concern is exempt from GST
2. Which one of the following is true?
A. Entire income of any trust is exempted from GST
B. Entire income of a registered trust is exempted from GST
C. Incomes from specified/defined charitable activities of a trust are exempted from GST
D. Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income)
Answer: D. Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income
3. Service by whom, by way of any activity in relation to any function entrusted to a municipalityunder Article 243 W of the Constitution, is exempted?
A. Central Government or State Government or Union territory or Local authority
B. Governmental authority
C. Municipality under Article 243 W of the Constitution
D. All of above
Answer: D. All of above
4. Which is a wrong statement?
A. All services of Department of Post are exempted
B. All services by State/Central Governments/local authorities in relation to an aircraft or a vessel in a Port or an Airport are exempted
C. All services by State/Central Governments/local authorities in relation to transport of passengers are exempted
D. All the above mentioned
Answer: D. All the above mentioned
5. Services to a single residential unit is, exempted if:
A. It is pure labour service only
B. It is works contract only
C. It is a part of residential complex only
D. It is on ground floor without further super structure
Answer: A. It is pure labour service only
6. Which exemption option is right from the following?
A. For letting out any immovable property
B. For letting out any residential dwelling for use as residence
C. For letting out any residential property irrespective of its use
D. For none of the above
Answer: B. For letting out any residential dwelling for use as residence
7. Services by a hotel, inn, guest house, club or campsite are exempted for residential / lodgingpurposes –
A. If the actual tariff for a unit of accommodation is below ` 10,000
B. If the actual tariff for a unit of accommodation is below ` 1,000
C. If the actual tariff for a unit of accommodation is exactly ` 1,000
D. If the actual tariff for a unit of accommodation is above ` 1,000
Answer: B. If the actual tariff for a unit of accommodation is below ` 1,000
8. Transportation of passengers exempted if
A. It is by air-conditioned stage carriage
B. It is by air-conditioned contract carriage
C. It is by non-air-conditioned stage carriage for tourism, charter or hire
D. None of the above
Answer: D. None of the above
9. Transportation of passengers is exempted
A. In an air-conditioned railway coach
B. In a vessel for public tourism purpose between places in India
C. In a metered cab/auto rickshaw / e rickshaw
D. In all the above mentioned
Answer: C. In a metered cab/auto rickshaw / e rickshaw
10. Transportation of goods is not exempted if it is
A. by a goods transport agency / courier agency
B. by inland waterways
C. by an aircraft from a place outside India upto the customs station of clearance in India
D. by all the above mentioned
Answer: A. by a goods transport agency / courier agency
11. Transportation of agricultural produces, milk, salt and food grain including flour, pulses and rice, ‘relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap’, newspaper or magazines registered with the Registrar of Newspapers – is exempted
A. If it is by a goods transport agency
B. If it is by a rail – within India
C. If it is by a vessel – within India
D. If it is by all of the above
Answer: D. If it is by all of the above
12. Which of the following is exempted
A. Services by way of loading, unloading, packing, storage or warehousing of rice
B. Services by way of loading and unloading of jute
C. Services by way of packing and storage or warehousing of rubber
D. None of the above
Answer: A. Services by way of loading, unloading, packing, storage or warehousing of rice
13. Core services of which organization is not exempted
A. Services provided by the Insurance Regulatory and Development Authority of India to insurers
B. Services provided by the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors
C. Services by Port Trusts
D. Services by the Reserve Bank of India
Answer: C. Services by Port Trusts
14. If the aggregate turnover of in F.Y. 2018-19 of M/s ABCD Enterprises, Kanchipuram, Tamil Nadu,India was ` 18 lakh, exemption is available for the following services rendered to ABCD Enterprises
A. Arbitral Tribunal services
B. Legal services by firm of advocates
C. Legal services by senior advocate
D. All of the above
Answer: D. All of the above
15. Which of the following is exempted?
A. All kinds of long term (30 or more years) leases of industrial plots
B. Long term (30 or more years) leases of industrial plots or plots for development of infrastructure for financial business by State Government Industrial Development Corporations or Undertakings to industrial units
C. Short term (up to 30 years) leases of industrial plots by State Government Industrial Development Corporations or Undertakings to industrial units
D. All kinds of short term (up to 30 years) lease of industrial plots
Answer: B. Long term (30 or more years) leases of industrial plots or plots for development of infrastructure for financial business by State Government Industrial Development Corporations or Undertakings to industrial units
16. One of the following is exempted from GST –
A. Any business exhibition
B. A business exhibition in India
C. A business exhibition outside India
D. None of the above
Answer: C. A business exhibition outside India
17. Which of the following is not exempted ?
A. Health care service to human beings by authorized medical practitioners / para medics
B. Health care services to Animals/Birds
C. Slaughtering of animals
D. Rearing horses
Answer: D. Rearing horses
18. Services by educational institution is exempted if the services are to
A. Any common man
B. Its own students, faculty / staff
C. Both a & b
D. None of the above
Answer: B. Its own students, faculty / staff
19. Services by a Non-Profit entity (Registered or Unregistered) are exempted –
A. If they are to its own members provided the contribution received is up to ` 7500 , per month from a member
B. If they are to its own members, provided the contribution received is up to ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members
C. If they are to its own members, provided the contribution is less than ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members
D. If they are to its own members, provided the contribution is up to ` 7500 per month per member for common use specified members
Answer: B. If they are to its own members, provided the contribution received is up to ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members
20. Which of the following are exempted services?
A. Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1 lakh
B. Services by an artist by way of a performance in folk or classical art forms of music/ dance with consideration therefor not exceeding ` 1.5 lakh
C. Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh
D. Services by an artist as a brand ambassador by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh
Answer: C. Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh
21. Transportation of passengers by are exempt from GST.
A. Railway in first clas
B. Railway in an air-conditioned coach
C. Metro
D. All of the above
Answer: C. Metro
22. Transportation of by a GTA in a goods carriage is exempt from GST.
A. Agricultural produce
B. Organic manure
C. Milk
D. All of the above
Answer: D. All of the above
23. What of the following services provided to an educational institution – Debo Public School- areexempt from GST?
A. Transportation of staff of the school
B. Cleaning of the school
C. Services relating to conduct of higher secondary exams
D. All of the above
Answer: D. All of the above
24. Transportation of passengers by are exempt from GST.
A. air conditioned stage carriage
B. radio taxi
C. air, terminating in Nagaland airport
D. All of the above
Answer: C. air, terminating in Nagaland airport
25. Which of the following services provided by Department of Posts are exempt from GST?
A. Speed post
B. Life Insurance
C. Express parcel posts
D. None of the above
Answer: D. None of the above
26. Distribution of electricity by a distribution utility is a:
A. Non-taxable supply
B. Exempt Supply
C. Nil Rated Supply
D. Neither supply of goods nor supply of services
Answer: B. Exempt Supply
27. An exempt supply includes
A. Supply of goods or services or both which attracts Nil rate of tax
B. Non-taxable supply
C. Supply of goods or services or both which are wholly exempt from tax under Section 11 of the CGST Act or under Section 6 of IGST Act
D. All of the above
Answer: D. All of the above