GST Question for Today:- Which of the following statements is correct for a tax payer who has opted for composition scheme?
a) A registered person supplying goods/services under the composition scheme shall issue a bill of supply.
b) Last date for payment of liability towards tax, interest, penalty, fee or any other sum is 20th day of each month.
c) A composition dealer shall be required to file GSTR-1 and GSTR-3B on monthly basis.
d) A composition dealer has an option to file GSTR-3B on quarterly basis, however tax payment has to be made on monthly basis upto 25th of next month

The correct answer to above question would be (a). Composition dealers are not allowed to issue tax invoice in respect of their outward supplies, instead they have to issue a Bill of Supply

GST Question for Today:- Mr. Deepak has been registered as composition dealer in State of Haryana since 15th April 2021, when he got registered under GST law. On 18th July 2021, he imported services from California for which he paid Rs. 5,00,000 as consideration. Which of the following statements is correct in the given case:-
a) Mr. Deepak is ineligible for composition scheme since he has made an Inter-State procurement of services
b) Mr. Deepak is eligible for composition scheme and he has to pay tax @1% under reverse charge on import of services
c) Mr. Deepak is eligible for composition scheme but he will have to pay tax @18% under reverse charge on import of services
d) Mr. Deepak is eligible for compositions scheme. Further, reverse charge will not apply in his case since he is not a normal taxpayer

Income tax test scheduled for today is being shifted to 22nd April...
Income tax Marathon Part 2 would be uploaded tonite or 2moro morning

The correct answer to above question would be (C). Sec 10 only provides that a composition dealer is not allowed to make Inter-State outward supplies, however there is no bar on Inter State inward supplies. Further, concessional rate of tax is not applicable if composition dealer has to pay tax under reverse charge

GST Question for Today:- Determine the cases in which ITC will not be available amongst the following
(i) A software professional providing technical consultancy buys a motorcycle for use of his employee.
(ii) A motor driving school buys a car for being used in imparting motor driving training.
(iii) A flying school imports an aircraft for use in its training activity.
(iv) A manufacturer buys a small truck for the purpose of transporting its inputs and finished goods.
Input tax credit cannot be taken on:
(a) (iii)
(b) (i), (ii), (iii), (iv)
(c) (i)
(d) (i), (iii)

Its 24th

The correct answer to above question would be (c). NO ITC is allowed as per Sec 17(5) in respect of any motor vehicles having seating capacity of less than 13 passengers, except when it is used for providing passenger transport service

GST Question for Today:- In case of Voluntary registration input tax credit can be availed
(a) on stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act
(b) on stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act.
(c) on stocks held on the day immediately preceding the date of application of registration under the provisions of this Act.
(d) None of the above

Topics covered in this part
1) Income under the head Other Sources
2) Income under the head PGBP
3) Set off and Carry Forward
4) Advance tax

The correct answer to above question would be (b). In case of voluntary registration, Sec 18(1) provides special ITC in respect of inputs held in stock on the date immediately preceeding date of REG-06

GST Question for Today:- Mr. A placed an order with Mr. B of 20,000 pcs on 1st January 2021 and the same order is to be received on last day of every month i.e. 2,000 pcs per month shall be received in next 10 months. When can Mr. A can avail ITC?
(a) 28th February, 2021
(b) 31st October, 2021
(c) 31st March, 2021
(d) Proportionately with receipt of every instalment