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

GST Question for Today:- Mr. Shubham has purchased a new refrigerator (to be used in kitchen of his office for use by his employees) for Rs. 2,50,000 (plus GST of Rs. 30,000) on 25th May 2021. He has estimated its useful life to be 5 years and hence he has decided to charge 20% depreciation each year on straight line basis. Which of the following statements is correct about availment of ITC:-
a) He should avail ITC of Rs. 500 each month so that he can claim ITC over a period of 36 months
b) He can avail entire ITC of Rs. 30,000 in May 2021 itself, irrespective of how depreciation is charged in books of accounts
c) He is not allowed any ITC since refrigerator is not used in course and furtherance of business
d) He is not allowed any ITC since it is specifically restricted under section 17(5)

The correct answer to above question would be (b) . In case of capital goods used for course & furtherance of business, ITC is allowed on receipt of goods (the fact that capital goods will be used over a period of time will have no relevance)

GST Question for Today:- Mr. Raghu avails services of Mr. Raja, a Chartered Accountant, as under-
(i) Audit of financial accounts Rs. 55,000
(ii) Tax audit and annual filing Rs. 10,000
(iii) Income-tax return filing of Mr. Raghu ’s wife Rs. 5,000
All the above amounts are exclusive of taxes and the applicable rate of GST on these services is 18%.
The accountant of Mr. Raghu has booked the entire expenses of Rs. 70,000 plus GST in the books of account. Mr. Raghu is eligible to take input tax credit of -
(a) Rs. 13,500
(b) Rs. 11,700
(c) Rs. 9,900
(d) Rs. 1,800