GST interview questions and answers

Answer: D. CGST ₹3,600 and SGST ₹3,600

When supplier and place of supply are in the same state, the supply is intra-state and the 18% is split equally into CGST 9% and SGST 9%. 9% of ₹40,000 is ₹3,600 each, so the total tax is ₹7,200. IGST applies only to inter-state supplies.

Answer: A. Details of outward supplies (sales), including invoice-wise B2B details

GSTR-1 is the statement of outward supplies. B2B invoices are reported invoice by invoice so that buyers see them in their GSTR-2B, while B2C supplies are reported in summary. Errors in GSTR-1 directly affect customers’ input tax credit.

Answer: B. To document and track the movement of goods above a specified value

An e-way bill is an electronic document generated on the e-way bill portal for movement of goods, generally when the consignment value exceeds a specified limit. It carries details of the goods, supplier, recipient and transporter, and helps authorities check that tax is paid on goods in transit.

Answer: A. IGST is levied along with customs duty at the time of import

Imports of goods are treated as inter-state supplies, so IGST is collected by customs along with basic customs duty, on the assessable value plus duty. A registered importer can usually claim this IGST as input tax credit, based on the bill of entry.

Answer: D. No; CGST credit can be used against CGST and then IGST, but not against SGST

Cross-utilisation between CGST and SGST is not allowed, because they go to different governments. CGST credit can be used for CGST and then IGST, and SGST credit for SGST and then IGST. IGST credit is the flexible one, usable against all three.

Answer: D. ₹20 lakh

For service providers in most states the threshold is ₹20 lakh (₹10 lakh in a few special category states). The ₹40 lakh limit applies only to those supplying goods alone in states that adopted it, and ₹1.5 crore is the composition limit.

Answer: A. Casual taxable person registration in Kerala

A casual taxable person makes occasional taxable supplies in a state where they have no fixed place of business, such as at fairs and exhibitions. A non-resident taxable person is someone with no business in India at all.

Answer: A. ₹50,000

An e-way bill is generally required when the value of goods in a consignment exceeds ₹50,000, including tax. Some states set different limits for movement within the state, and certain goods need one whatever the value.

Answer: A. Punjab, where the goods are consumed

Under GST, tax follows consumption. On inter-state supplies the IGST collected is apportioned to the destination state, here Punjab. This was a key change from the old origin-based central sales tax.

Answer: D. No, holding a valid tax document is a condition

Section 16(2)(a) requires the buyer to hold a tax invoice, debit note or other prescribed document. The supply must also appear in GSTR-2B, the goods or services must be received, and the supplier must have paid the tax and filed returns.

Answer: A. The electronic credit ledger

ITC claimed in GSTR-3B is credited to the electronic credit ledger and used to pay output tax. The cash ledger holds tax paid in cash, and the liability register records what is owed. GSTR-2A is only a statement of supplier filings.

Answer: C. It is blocked and must not be claimed

Section 17(5)(h) blocks ITC on goods disposed of as gifts or free samples. If credit was already taken on those goods, it must be reversed. The same applies to goods lost, stolen, destroyed or written off.

Answer: D. Reverse the ₹1.8 lakh ITC

ITC is blocked on goods lost, stolen, destroyed or written off, because they will never be part of a taxable supply. The credit taken must be reversed, whatever the cause and even if an insurer pays the loss.

Answer: A. The company, under reverse charge

Services by a director to the company are under reverse charge, so the company pays the GST. Salary paid to a whole-time director who is an employee is not a supply at all, because employee services are in Schedule III.

Answer: B. No, composition bills carry no GST

Composition taxpayers issue a bill of supply and cannot collect GST from buyers, so there is no tax to take credit for. Buyers who need ITC often prefer suppliers under the normal scheme for that reason.

Answer: B. 11 July

Monthly GSTR-1 is due by the 11th of the next month. Quarterly filers under QRMP file it by the 13th of the month after the quarter. Filing on time matters because buyers' GSTR-2B is built from it.

Answer: B. ₹5 crore

Taxpayers with aggregate turnover up to ₹5 crore in the previous year can file GSTR-1 and GSTR-3B quarterly while paying tax monthly. This reduces return filing from 24 to 8 a year.

Answer: D. ₹50 per day

The late fee is ₹25 CGST plus ₹25 SGST, or ₹50 a day, subject to caps based on turnover. For a nil return it is ₹20 a day in total. Interest on late tax is charged on top of the fee.

Answer: A. Gujarat, where the service is performed

Restaurant, catering, beauty and fitness services are supplied where they are actually performed. So the restaurant charges CGST and SGST of Gujarat, and the Mumbai business cannot use that credit in Maharashtra.

Answer: D. Tamil Nadu, the registered client's location

The general rule in Section 12(2) puts the place of supply at the location of a registered recipient. So the consultant charges IGST because Telangana and Tamil Nadu are different states.

Answer: C. 30 days

A tax invoice for services must be issued within 30 days of the date of supply; banks, insurers and NBFCs get 45 days. Delays shift GST timing and can attract interest. For goods, the invoice is issued at or before removal or delivery.

Answer: D. No; GST on goods is due at supply, not advance

For goods, the government removed the requirement to pay GST on advances for regular taxpayers in 2017, so tax becomes due at the time of invoicing or supply. For services, GST is still payable on advances. The advance is a liability in the books either way.

Answer: A. 50 days

Receivables include GST but revenue does not, so the naive DSO of 118 ÷ 730 × 365 = 59 days is overstated. On a like-for-like basis, 100 ÷ 730 × 365 = 50 days.

Answer: D. IGST, because the place of supply is Delhi, the buyer’s principal place of business

In a bill-to ship-to case, goods delivered to a third person on the instructions of the buyer are treated as received by the buyer. The place of supply is the buyer’s principal place of business, Delhi. Since the supplier is in Haryana, it is an inter-state supply and IGST is charged.

Answer: B. In March, because for services the time of supply can be triggered by receipt of an advance

For services, the time of supply is generally the earliest of the invoice date (if issued on time), the date of payment, or the date of provision. Receiving an advance therefore makes GST payable in March. For goods, GST on advances is not currently payable under a notification, so the rule differs.

Answer: C. ₹1,00,000

Discounts given at the time of supply and recorded on the invoice are excluded from value. Incidental expenses charged by the supplier, such as packing and freight, are included. ₹1,00,000 − ₹5,000 + ₹2,000 + ₹3,000 = ₹1,00,000.

Answer: A. B2B invoices, credit and debit notes, and exports

E-invoicing applies to notified taxpayers above the turnover threshold, for B2B supplies, exports and related credit and debit notes. B2C invoices are generally outside e-invoicing, although large businesses may have to print a dynamic QR code on them. An invoice that should have an IRN but does not may be treated as invalid.

Answer: B. Registration is compulsory, whatever the turnover

Section 24 makes registration compulsory for anyone making inter-state taxable supplies of goods, with limited exceptions such as notified handicrafts. Service providers making inter-state supplies were given relief up to the normal threshold.

Answer: A. No, the ₹40 lakh goods threshold applies

Suppliers dealing only in goods can use the higher ₹40 lakh threshold in states that adopted it, including Maharashtra. The limit does not apply to certain goods like ice cream, pan masala and tobacco, or to those who also supply services.

Answer: B. As a mixed supply, at the highest rate of any item

Items that are not naturally bundled but sold together for one price form a mixed supply, taxed at the rate of the item with the highest rate. A composite supply, by contrast, is naturally bundled and taxed at the principal supply's rate.

Answer: D. Within 30 days, by 10 July

Rule 47 allows 30 days from the date of supply of services to issue the invoice (45 days for banks and financial institutions). If issued later, time of supply moves to the date of service rather than the invoice.

Answer: D. A delivery challan, as it is not a sale

Movement of goods that is not a supply, such as sending inputs to a job worker, is done under a delivery challan (Rule 55). An e-way bill may also be needed. The job worker later invoices the stitching charges.

Answer: A. A debit note for ₹10,000 plus GST

When the taxable value or tax charged turns out to be lower than it should be, the supplier issues a debit note for the difference and reports it in the return. A credit note is for reducing value, such as returns or agreed discounts.

Answer: B. The interest is added to the value of supply and taxed

Section 15(2)(d) includes interest, late fee or penalty for delayed payment in the value of supply. So the supplier charges GST on it at the rate of the main supply. Interest on loans and deposits is a separate case and is exempt.

Answer: B. The company pays it under reverse charge

Renting a residential dwelling is exempt when the tenant is unregistered, but since July 2022 renting to a registered person is taxable under reverse charge. The company pays the GST and may claim ITC if the use is eligible.

Answer: A. 1 May, the day after 60 days from the invoice date

For services under reverse charge, time of supply is the earlier of the payment date or the date immediately after 60 days from the invoice date. Sixty days after 1 March is 30 April, so the next day, 1 May, comes before payment on 20 May.

Answer: C. ITC on inputs in stock on the day before liability arose

Section 18(1)(a) allows a person who applies within 30 days of becoming liable to claim ITC on inputs held in stock, and inputs in semi-finished or finished goods, on the day before liability. Invoices must be within one year old.

Answer: B. The foreign supplier, after registering in India

Online information and database access services (OIDAR) to non-taxable online recipients in India make the foreign supplier liable to register under a simplified scheme and pay IGST. Business buyers instead pay under reverse charge.

Answer: C. The service must be delivered by an employee abroad

An export of services needs the supplier in India, the recipient outside India, place of supply outside India, payment in convertible foreign exchange or INR where RBI permits, and the parties not being mere establishments of one person. Staff need not travel.

Answer: C. 14 days

UAE VAT law requires a tax invoice within 14 days of the date of supply. India's GST gives 30 days for services. Returns in the UAE are generally due 28 days after the end of the tax period, which is a separate deadline.

Answer: A. ₹20,000

Credit used for exempt supplies is not allowed. Common credit is apportioned in the ratio of exempt turnover to total turnover: ₹1,00,000 × 2,00,000 / 10,00,000 = ₹20,000 is reversed. The remaining ₹80,000 is eligible. Rule 42 also requires a final annual true-up.

Answer: D. A binding ruling from the Authority for Advance Ruling on specified questions such as classification, binding on the applicant and its jurisdictional officer

An advance ruling gives certainty in advance on questions such as classification, applicability of a notification, valuation, admissibility of input tax credit or whether registration is needed. It binds the applicant and the concerned officer, unless facts or law change. Rulings can be appealed but do not bind other taxpayers.

Answer: D. IGST, because the place of supply is Goa, where the immovable property is located

For services directly related to immovable property, such as architects’ services, the place of supply is where the property is located, regardless of where the client is. The supplier is in Delhi and the place of supply is Goa, so it is an inter-state supply and IGST applies. The client may face issues claiming this credit, which is worth flagging.

Answer: B. No, because supplies between establishments of the same person are excluded from export of services

One of the conditions for export of services is that the supplier and recipient are not merely establishments of a distinct person, such as a company and its own branch abroad. Services to an overseas branch therefore do not qualify as exports. A separate subsidiary is a different legal person, so the analysis would differ.

Answer: C. No; ITC on motor vehicles for transporting persons with seating up to 13 is generally blocked unless used for specified purposes like resale, passenger transport or driving training

Section 17(5) blocks ITC on motor vehicles for transport of persons with seating capacity up to 13 (including the driver), except when used for further supply of such vehicles, transport of passengers, or training to drive. A manufacturer using a car for executives does not fall in these exceptions, so the GST becomes part of the car’s cost.

Answer: C. A refund of unutilised input tax credit on inputs under the inverted duty structure, using the prescribed formula

Where credit accumulates because the tax rate on inputs is higher than on output supplies, a refund of unutilised ITC can be claimed under the inverted duty structure, using the prescribed formula. The formula covers credit on input goods, not input services or capital goods, and some goods are notified as ineligible.

Answer: D. ₹15,000, the broker's own fee

Under Rule 33, amounts paid as a pure agent on the client's behalf are left out of value if the agent does not use those services itself, bills them at actuals and shows them separately. The fee for its own service stays taxable.

Answer: B. 30 November 2027, based on the debit note's year

Section 16(4) ties the time limit to the financial year of the invoice or debit note itself. The debit note belongs to FY 2026-27, so ITC must be claimed by 30 November 2027 or the annual return date, whichever is earlier.

Answer: A. No, interest applies only if the wrong ITC is used

Section 50(3) charges interest (notified at 18%) only when wrong ITC is both availed and utilised. Rule 88B treats it as used only when the ledger balance drops below the wrong amount. Here the balance stayed above ₹1 lakh, so no interest is due.

Answer: C. Not payable; the levy was struck down

In Union of India v. Mohit Minerals (2022), the Supreme Court held that taxing ocean freight separately under reverse charge for CIF imports was double taxation, since IGST is already paid on the CIF value at customs. The levy was struck down.

Answer: A. No, tax paid on fraud demands is a blocked credit

Section 17(5)(i) blocks ITC on tax paid under orders for fraud, wilful misstatement or suppression (Section 74, and the fraud limb of Section 74A), and on tax paid during detention or confiscation of goods. Non-fraud demands do not carry this bar.

Answer: C. Yes, delivery on its direction counts as receipt

The explanation to Section 16(2)(b) deems goods received when delivered to the recipient or to any other person on the recipient's direction, before or during movement. This covers bill-to ship-to and direct delivery to job workers.

Answer: D. About ₹2,959, on the ₹2 lakh paid in cash

The proviso to Section 50(1) charges interest only on the part of a late-filed liability paid in cash. 2,00,000 × 18% × 30/365 is about ₹2,959. Before this change, interest on gross tax caused many disputes.

Answer: A. 42 months, with the order 12 months after the notice

Section 74A replaced separate limits for fraud and non-fraud cases. The notice must be issued within 42 months of the annual return due date, and the order within 12 months of the notice, extendable by six months. Penalties still differ by case.

Answer: C. ₹30,000, i.e. 10% of the tax

For cases without fraud or suppression, the penalty is 10% of tax or ₹10,000, whichever is higher, so ₹30,000 here. If tax and interest are paid within 60 days of the notice, no penalty is levied. Fraud cases carry a penalty equal to the tax.

Answer: C. Maharashtra, where they were loaded

Section 10(1)(e) sets the place of supply of goods supplied on board a conveyance, such as a vessel, aircraft, train or vehicle, at the location where the goods are taken on board. So it is Maharashtra.

Answer: B. Maharashtra, the registered recipient's location

For organising events, Section 12(7) uses the location of a registered recipient; only for unregistered recipients is it where the event happens. So the Goa company charges IGST, which the Maharashtra client can use as ITC.

Answer: C. ₹6 lakh

Refund = zero-rated turnover × net ITC ÷ adjusted total turnover. That is 60 × 10 ÷ 100 = ₹6 lakh. The rest of the ITC relates to domestic supplies and stays in the credit ledger for use.

Answer: B. No new applications are accepted after 1 April 2025

The anti-profiteering authority role moved to the Competition Commission of India in 2022, and a sunset was set so that no new applications are received from 1 April 2025. Pending cases continue to be decided.

Answer: D. West Bengal, the supplier's location

Under Section 12(2), for unregistered recipients the place of supply is their address on record; where no address is on record, it is the location of the supplier. So the consultant charges CGST and SGST of West Bengal.