Quiz - GST Kanun

#1. How does the process of GST registration take place?

A) Only online through the GST portal

B) Only through physical application at the tax office

C) Both online and offline methods are available

D) Through a third-party agent only

Answer: C) Both online and offline methods are available

Explanation: GST registration can be done through both online and offline methods. Most registrations are processed online through the GST portal, but provisions for offline registration are also available.

#2. How long is the GST registration certificate valid for?

A) Lifetime

B) 5 years

C) 10 years

D) 2 years

Answer: A) Lifetime

Explanation: The GST registration certificate is valid until it is cancelled, surrendered, or suspended by the tax authorities.

#3. Who is required to obtain GST registration as an Input Service Distributor (ISD)?

Only manufacturers

Only exporters

Entities receiving input services and distributing them to other units

Only service providers

Explanation: Input Service Distributors (ISDs) are required to obtain GST registration if they intend to distribute the input tax credit (ITC) of input services to their other registered business units.

#4. What is the threshold limit for obtaining GST registration for special category states?

A) Rs. 10 lakhs

B) Rs. 20 lakhs

C) Rs. 40 lakhs

D) Rs. 5 lakhs

Answer: A) Rs. 10 lakhs

Explanation: Special category states have a lower threshold limit of Rs. 10 lakhs for obtaining GST registration, as compared to the regular threshold of Rs. 20 lakhs.

#5. Which of the following documents is required for GST registration?

A) PAN card of the business

B) Aadhaar card of the business owner

C) Passport of the business owner

D) Only the business's utility bills

Answer: A) PAN card of the business

Explanation: PAN card of the business is a mandatory document for GST registration as it serves as a unique identifier for tax purposes.

#6. Can a registered taxpayer apply for voluntary cancellation of GST registration?

A) No, registration cannot be cancelled once obtained

B) Yes, but only after 5 years of registration

C) Yes, but only if the turnover is below Rs. 10 lakhs

D) Yes, if there are valid reasons for cancellation

Answer: D) Yes, if there are valid reasons for cancellation

Explanation: A registered taxpayer can apply for voluntary cancellation of GST registration if there are valid reasons, such as discontinuation of business or merger with another entity.

#7. Is voluntary GST registration allowed? ? what is required

A) No, GST registration is always mandatory

B) Yes, any business can choose to register voluntarily

C) Yes, but only for manufacturers

D) Only for businesses with interstate supply

Answer: B) Yes, any business can choose to register voluntarily

Explanation: Businesses with turnover below the mandatory threshold can choose to register under GST on a voluntary basis. This can provide them with certain benefits and enable them to claim input tax credits.

#8. Which government authority is responsible for processing GST registration applications?

A) Ministry of Finance

B) Central Board of Direct Taxes

C) Goods and Services Tax Network (GSTN)

D) State Government

Answer: C) Goods and Services Tax Network (GSTN)

Explanation: The GSTN is the agency responsible for processing GST registration applications and managing the GST portal.

#9. What is the threshold limit for mandatory GST registration for casual taxable persons and non-resident taxable persons?

₹20 lakhs

₹10 lakhs

₹40 lakhs

No threshold limit

Casual taxable persons and non-resident taxable persons are required to obtain GST registration regardless of their turnover, as there is no threshold limit.

#10. A casual taxable person or a non-resident taxable person needs to obtain GST registration when they intend to:

A) Supply goods/services for a temporary period in a different state

B) Export goods/services to another country

C) Only supply goods/services locally

D) Supply goods/services only within their own state

Answer: A) Supply goods/services for a temporary period in a different state

Explanation: Casual taxable persons and non-resident taxable persons are required to obtain GST registration when they engage in the supply of goods or services for a temporary period in a state or union territory where they are not registered.

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