Scope of Supply Multiple Choice Questions
1. The activities to be treated as supply of goods or supply of services as referred to in ofCGST Act, 2017.
A. Schedule I of CGST Act
B. Schedule II of CGST Act
C. Schedule III of CGST Act
D. Section 7
Answer: B. Schedule II of CGST Act
2. What are different types of supplies covered under the scope of supply?
A. Supplies made with consideration
B. Supplies made without consideration
C. Both of the above
D. None of the above
Answer: C. Both of the above
3. Which of the following taxes will be levied on Imports?
A. CGST
B. SGST
C. IGST
D. None of the above
Answer: C. IGST
4. Which of the following is not a supply as per section 7 of the CGST Act ?
A. Management consultancy services not in course or furtherance of business
B. Import of service for consideration not in course or furtherance of business
C. Both (a) and (b)
D. None of the above
Answer: A. Management consultancy services not in course or furtherance of business
5. specifies the activities to be treated as supply even if made without Consideration
A. Schedule I of CGST Act
B. Schedule II of CGST Act
C. Schedule III of CGST Act
D. All of the above
Answer: A. Schedule I of CGST Act
6. Which of the following activity is outside the scope of supply and not taxable under GST?
A. Services by an employee to the employer in the course of or in relation to his employment
B. Services of funeral
C. Actionable claims, other than lottery, betting and gambling.
D. All of the above
Answer: D. All of the above
7. Which of the following activities is a supply of services?
A. Transfer of right in goods/ undivided share in goods without transfer of title in goods
B. Transfer of title in goods
C. Transfer of title in goods under an agreement which stipulates that property shall pass at a future date
D. All of the above
Answer: A. Transfer of right in goods/ undivided share in goods without transfer of title in goods
8. Supply includes import of services for a consideration .
A. Only if in the course or furtherance of business
B. Only if not in the course or furtherance of business
C. Whether or not in the course or furtherance of business
D. None of the above
Answer: C. Whether or not in the course or furtherance of business
9. specifies the activities which are neither to be treated as supply of goods nor a supplyof services.
A. Schedule I of CGST Act
B. Schedule II of CGST Act
C. Schedule III of CGST Act
D. All of the above
Answer: C. Schedule III of CGST Act
10. Activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall treated as .
A. Supply of good
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
11. Transfer of the title in goods shall be considered as .
A. Supply of good
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: A. Supply of good
12. Transfer of right in goods or of undivided share in goods without the transfer of title thereof shallbe considered as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
13. Transfer of title in goods under an agreement which stipulates that property in goods shall passat a future date upon payment of full consideration as agreed shall be considered as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: A. Supply of goods
14. Lease, tenancy, easement, licence to occupy land shall be considered as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
15. Lease or letting out of the building including a commercial, industrial or residential complex forbusiness or commerce, either wholly or partly shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
16. Any treatment or process which is applied to another person’s goods shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
17. Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a by the person.
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: A. Supply of goods
18. Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
19. Renting of immovable property is .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
20. Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
21. Temporary transfer or permitting the use or enjoyment of any intellectual property right shall betreated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
22. Development, design, programming, customisation, adaptation, upgradation, enhancement,implementation of information technology software shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
23. Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an actis .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
24. Transfer of the right to use any goods for any purpose (whether or not for a specified period) forcash, deferred payment or other valuable consideration shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
25. Works contract as defined in section 2 (119) shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
26. Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration is .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: B. Supply of services
27. Supply of goods by any unincorporated association or body of persons to a member thereof forcash, deferred payment or other valuable consideration shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: A. Supply of goods
28. Services by an employee to the employer in the course of or in relation to his employment is.
A. Supply of good
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
29. Services by any court or Tribunal established under any law for the time being in force is .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
30. The functions performed by the Members of Parliament, Members of State Legislature, Membersof Panchayats, Members of Municipalities and Members of other local authorities shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
31. The duties performed by any person who holds any post in pursuance of the provisions of theConstitution in that capacity shall be considered as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
32. The duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause shall be considered as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
33. Services of funeral, burial, crematorium or mortuary including transportation of the deceasedshall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
34. Actionable claims, other than lottery, betting and gambling shall be treated as .
A. Supply of goods
B. Supply of services
C. Neither as a supply of goods nor a supply of services
D. Either as a supply of goods or a supply of services
Answer: C. Neither as a supply of goods nor a supply of services
35. Gifts not exceeding in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
A. 50,000
B. 1,00,000
C. 2,00,000
D. 2,50,000
Answer: A. 50,000
36. The shall be treated as supply even if made without consideration
A. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
B. Permanent transfer or disposal of business assets where input tax credit has NOT been availed on such assets.
C. Both of the above
D. None of the above
Answer: A. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
37. The shall be treated as supply even if made without consideration
A. Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal;
B. Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
C. Both of the above
D. None of the above
Answer: C. Both of the above
38. The shall be treated as supply even if made without consideration.
A. Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal;
B. Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
C. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets
D. All of the above
Answer: D. All of the above
39. Import of services by a taxable person from a related person or from any of his other establishmentsoutside India, in the course or furtherance of business shall .
A. Supply of services
B. Not to be treated as supply of service
C. Be treated as supply even when made without consideration
D. None of the above
Answer: C. Be treated as supply even when made without consideration
40. Which of the following is – the supply in which possession of the goods are transferred but the title on the same will be transferred at the future date?
A. Rent a car
B. Hire Purchase
C. Normal sale of goods
D. None of the above
Answer: B. Hire Purchase
41. Which of the following is – the supply in which possession of the goods are transferred but the title of the goods is not transferred at all and thereby attains the character of the supply of service ?
A. Rent a car
B. Hire Purchase
C. Normal sale of goods
D. None of the above
Answer: A. Rent a car
42. Suppose XYZ Ltd has a license to operate a particular business venture but he refrains from operating such business venture after an agreement with other business houses in the same line of business against receiving certain amount. Is this a supply of service?
A. Ye
B. No
C. Exempted
D. None of the above
Answer: A. Ye
43. Which of the following is the supply even if made without consideration?
A. Stock transfer out to another state
B. Temporary application of business asset for a non-business needs
C. Free transfer of business asset
D. All of the above
Answer: D. All of the above
44. What are the factors differentiating composite supply & mixed supply?
A. Nature of bundling i.e. artificial or natural
B. Existence of principal supply
C. Both of the above
D. None of the above
Answer: C. Both of the above
45. What would be the tax rate applicable in case of composite supply?
A. Tax rate as applicable on principal supply
B. Tax rate as applicable on ancillary supply
C. Tax rate as applicable on respective supply
D. None of the above
Answer: A. Tax rate as applicable on principal supply
46. What would be the tax rate applicable in case of mixed supply?
A. Tax rate as applicable on supply attracting the lowest rate of tax
B. Tax rate as applicable on supply attracting the highest rate of tax
C. Tax @ 28%
D. None of the above
Answer: B. Tax rate as applicable on supply attracting the highest rate of tax
47. Which of the following supplies are naturally bundled?
A. Rent deed executed for renting of two different floors of a building-one for residential and another for commercial purpose to same person
B. Pack of watch, tie and belt
C. Package of canned food such as burger, chocolates, sweets, cake etc.
D. None of the above
Answer: D. None of the above
48. A supply comprising of two or more supplies shall be treated as the supply of thatparticular supply that attracts highest rate of tax.
A. Composite
B. Mixed
C. Both (a) and (b)
D. None of the above
Answer: B. Mixed
49. means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
A. Composite Supply
B. Principal Supply
C. Mixed Supply
D. Inward Supply
Answer: A. Composite Supply
50. means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
A. Mixed Supply
B. Principal Supply
C. Inward Supply
D. Exempt Supply
Answer: A. Mixed Supply