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Created on April 10, 2026 By

CA Sonal Saboo

CMA Final

Final ITLP PN-19 Quiz 5

This quiz is based on the CMA Indirect Tax Laws and Practice paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA ITLP concepts.

1 / 25

Category: Indirect Tax Laws and Practice PN-19

1. A GST-registered restaurant supplies complimentary desserts (free of charge) to its customers after a qualifying spending. The cost of desserts is small compared to overall bill. Which statement is correct?

a. This is a supply (because part of business activity) and taxable

b. This is not a supply because there is no consideration

c. This is a supply only if the value exceeds ₹5,000

d. This is a deemed supply only if the restaurant had claimed ITC on ingredients

2 / 25

Category: Indirect Tax Laws and Practice PN-19

2. Which of the following is not included in the definition of “supply” under Section 7 of the CGST Act?

a. Sale, transfer, barter, exchange

b. Import of services (whether or not in course or furtherance of business)

c. Permanent transfer of business assets without consideration (if ITC was availed)

d. Services by any court or Tribunal.

3 / 25

Category: Indirect Tax Laws and Practice PN-19

3. X issues an invoice on 10th April for goods supplied on 5th April. He receives payment on 20th April. What is the time of supply?

a. 10th April

b. 15th April

c. 5th April

d. 20th April

4 / 25

Category: Indirect Tax Laws and Practice PN-19

4. Which of the following statements about “addition in value by way of interest or late fee for delayed payment” is correct in respect of time of supply?

a. Time of supply for the additional amount is the date of invoice

b. Time of supply for additional amount is the date of provision of service

c. Time of supply for additional amount is the date on which supplier receives such addition

d. Time of supply for additional amount is 30 days after original invoice

5 / 25

Category: Indirect Tax Laws and Practice PN-19

5. In which of the following cases is Part B of the E-way bill not mandatory to be filled?

a. When distance is less than 50 km and within same State

b. In all inter-state movement

c. When goods are sent for job work

d. When transported by railways

6 / 25

Category: Indirect Tax Laws and Practice PN-19

6. Which of the following does not attract TDS under GST?

a. Intra-state supply by a supplier to a PSU

b. Inter-state supply to a government department

c. Exempt supply of goods worth ₹10 lakh

d. Works contract supply of ₹4 lakh to a municipality

7 / 25

Category: Indirect Tax Laws and Practice PN-19

7. TCS under GST is applicable only when:

a. Goods are sold on consignment basis

b. Services are provided to foreign customers

c. Supplies are made through an e-commerce operator

d. Sales exceed ₹50 lakh per annum

8 / 25

Category: Indirect Tax Laws and Practice PN-19

8. If TDS is deducted under GST, the deductor must deposit the amount with the government within:

a. 7 days from the end of the month

b. 10 days from the date of deduction

c. 15 days from the end of the quarter

d. 10 days from the end of the month

9 / 25

Category: Indirect Tax Laws and Practice PN-19

9. Under GST, a government department is required to deduct TDS when the value of supply under a contract exceeds:

a. ₹2.5 lakh exclusive of tax

b. ₹2.5 lakh inclusive of tax

c. ₹5 lakh exclusive of tax

d. ₹10 lakh inclusive of tax

10 / 25

Category: Indirect Tax Laws and Practice PN-19

10. A supplier makes a supply to SEZ unit. The place of supply is determined as SEZ (inside India). The supplier furnishes LUT and ships the goods. The tax treatment is:

a. The supply is a domestic supply taxed under CGST/SGST

b. The supply is inter- state IGST leviable

c. The supply is zero-rated (no tax)

d. The supply is exempt supply

11 / 25

Category: Indirect Tax Laws and Practice PN-19

11. Which of the following statements is correct regarding input tax credit (ITC) for zero-rated supplies?

a. ITC is allowed only if the final supply is taxable

b. For zero-rated supplies, ITC of inputs and input services used is allowed, even if the zero-rated supply is an exempted supply

c. Zero-rated supplies are exempt supplies, so no ITC is allowed

d. ITC is disallowed for capital goods used in zero-rated supplies

12 / 25

Category: Indirect Tax Laws and Practice PN-19

12. In relation to non-payment to supplier within 180 days, which of the following is correct?

a. The entire ITC taken must be reversed

b. ITC has to be reversed to the extent of non- payment (value + tax)

c. No reversal is required if the due amount is less than ₹10,000

d. ITC reversal is required only for capital goods, not for inputs

13 / 25

Category: Indirect Tax Laws and Practice PN-19

13. X Ltd switches its product line, and some goods become exempt supply (i.e. not liable to GST). How should X Ltd deal with ITC on inputs/inventory used partly for exempt and partly for taxable supplies?

a. It can claim full ITC; no adjustment needed

b. It must reverse the entire ITC claimed earlier

c. It must apportion and reverse the portion attributable to exempt supplies

d. It can carry forward to next year and adjust later

14 / 25

Category: Indirect Tax Laws and Practice PN-19

14. A company receives a capital good on 1 July 2025, but the usage for business begins only on 1 October 2025. The invoice is dated September 2025. When can the company claim the ITC for that capital good?

a. In September 2025 return

b. In October 2025 return

c. Spread over 5 years from October 2025

d. Not before annual return period

15 / 25

Category: Indirect Tax Laws and Practice PN-19

15. Which of the following cross-utilisations of ITC (credit) is allowed (assuming credit balances exist)?

a. SGST credit can be used to pay CGST liability

b. CGST credit can be used to pay SGST liability

c. CGST credit can be used to pay IGST liability

d. UTGST credit can be used to pay SGST liability

16 / 25

Category: Indirect Tax Laws and Practice PN-19

16. Where value cannot be determined under any prescribed rule, which method is used?

a. Cost-based valuation

b. Declared value

c. Best judgment under Rule 31

d. Comparable value

17 / 25

Category: Indirect Tax Laws and Practice PN-19

17. Which of the following is not a condition to allow a post-supply discount as deduction under Section 15?

a. It must be established in terms of an agreement before or at the time of supply

b. It must be linked to a specific invoice

c. It must be credited to recipient’s ledger or paid back

d. It must be disclosed in GSTR-1 only

18 / 25

Category: Indirect Tax Laws and Practice PN-19

18. X Ltd. supplies goods worth ₹2,00,000 to a sister company and does not charge any price. Open market value of goods is ₹2,20,000. And the company is eligible for full ITC. What is the taxable value?

a. Nil

b. ₹ 2,00,000

c. ₹ 2,20,000

d. ₹ 1,80,000

19 / 25

Category: Indirect Tax Laws and Practice PN-19

19. A dealer gives a post-supply discount of 10% on condition that buyer meets a sales target. The condition was agreed before supply. Is this discount deductible from transaction value?

a. No

b. Yes, always

c. Yes, if linked to invoice and reversed proportionally

d. Only if agreed post- supply

20 / 25

Category: Indirect Tax Laws and Practice PN-19

20. ABC Ltd. in Mumbai organises an event in Chennai for a registered client from Hyderabad. What is the place of supply?

a. Mumbai

b. Chennai

c. Hyderabad

d. Where payment is received

21 / 25

Category: Indirect Tax Laws and Practice PN-19

21. Place of supply of services in relation to immovable property (e.g. hotel accommodation) is:

a. Location of property

b. Location of recipient

c. Location of supplier

d. Place of payment

22 / 25

Category: Indirect Tax Laws and Practice PN-19

22. An unregistered individual based in Hyderabad contacts a travel agent in Delhi to book an international flight from Mumbai to Dubai. What is the place of supply for GST purposes?

a. Delhi

b. Hyderabad

c. Mumbai

d. Dubai

23 / 25

Category: Indirect Tax Laws and Practice PN-19

23. Which of the following is correct for supply of vouchers (in case where supply is identifiable at voucher issuance)?

a. Time of supply is date of redemption of voucher

b. Time of supply is date of issuance of voucher

c. Time of supply is date of payment by customer

d. Time of supply is latest of issuance or redemption

24 / 25

Category: Indirect Tax Laws and Practice PN-19

24. Suppose rate of tax changes on 1st July. If supply is completed before change in rate, but invoice is issued after change in rate and payment also received after change, what is the time of supply?

a. Date of payment or invoice (whichever earlier)

b. Date of issue of invoice

c. Date of supply (i.e. completion date)

d. Change rate date

25 / 25

Category: Indirect Tax Laws and Practice PN-19

25. Where it is not possible to determine the time of supply under the usual provisions (for services), the fallback rule provides that time of supply shall be:

a. Date on which supplier issues invoice

b. Date of entry in the books of account of recipient

c. Date of provision of service

d. Date of receipt of payment

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Final PN-19 Indirect Tax Laws & Practice Quiz 5

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