Assertion Reason MCQs of Accounting of Goods and Services Tax (GST) Class 11 with Answers
Assertion Reason MCQs of Accounting of Goods and Services Tax (GST) Class 11 with Answers for CBSE, ISC and State Boards
Assertion (A): CGST and SGST are levied on Intra-state supply of good and/or services and/or both.
Reason (R): CGST means Central Goods and Services Tax and SGST means State Goods and Services Tax.
Options:
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A)
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (a)
Assertion (A): GST has replaced many indirect taxes levied by Centre and State Governments.
Reason (R): Central level taxes that have merged into GST are excise duty, services tax and central sales tax.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): CGST and SGST are levied on Intra-state supply of goods and/or services or both at half the rate of GST prescribed in IGST.
Reason (R): Rate of GST is same whether IGST is levied or CGST and SGST are levied.
Options:
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A)
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (b)
Assertion (A): GST paid on purchase of goods and services is termed Input GST and GST collected on sale of goods and services is termed Output GST.
Reason (R): Input GST is set off against Output GST.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): IGST is levied on supply of goods and/or services and/or both to another state.
Reason (R): IGST is levied when supply of goods and/or services or both is made within the same state.
Options:
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A)
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (d)
Assertion (A): GST paid on purchase of vehicles cannot be set off against GST collected.
Reason (R): In such a case GST paid is a cost for the purchaser.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): Input CGST and Input SGST means CGST and SGST paid on Intrastate supply of goods and/or services and/or both and allowed to be set off against Output CGST and Output SGST.
Reason (R): CGST and SGST paid, if not allowed to be set off against Output CGST and SGST is cost.
Options:
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A)
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (a)
Assertion (A): GST paid (i.e., Input GST) is reversed (Credited) in case of purchase returns and goods lost or stolen.
Reason (R): GST collected (i.e., Output GST) is reversed (Debited) in case of sales returns.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (b)
Assertion (A): Input IGST is first set off against Output IGST and balance, if any in Input IGST is set off against Output CGST and Output SGST.
Reason (R): Input IGST is consumed first before Input CGST is set off against Output CGST and Input SGST against Output SGST.
Options:
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A)
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (b)
Assertion (A): GST is credited alongwith Purchase A/c if the goods are withdrawn for personal consumption.
Reason (R): In case of drawings in goods, GST paid Can’t be set off against GST collected.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): Payment of wages and salaries are exempt from levy of GST.
Reason (R): Payment of health insurance and payment of membership fee of a club, health and fitness centre is also exempt from levy of GST.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (c)
Assertion (A): GST is not levied in case of amount deposited into bank and amount withdrawn from bank.
Reason (R): GST is also not levied in case of amoun paid to creditors and amount received from debtors.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (b)
Assertion (A): GST is a destination based tax.
Reason (R): GST is charged every time a sale is made till the time goods reach the consumer. Thus it is a destination based tax.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): GST is value added tax.
Reason (R): GST is a value added tax since INput GST is set-off against Output GST. As a result, GSt is levied on the incremental value.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
