Chapter 3 - Charge of GST - Introduction & RCM

Question 1

Charge of GST is given u/s _________ of CGST Act 2017

Answer 1

9

Question 2

GST is applicable on all goods or services or both other than ____________

Answer 2

Alcoholic Liquor for Human Consumption

Question 3

what is the maximum rate of CGST/SGST that can be applicable on supply of a particular good or service ?

Answer 3

20%

Question 4

what is the maximum rate of IGST that can be applicable on supply of a particular good or service ?

Answer 4

40%

Question 5

GST on 5 petroleum products shall be applicable from the date notified by _______ on recommendation of _______

Answer 5

Central Govt ;
GST Council

Question 6

Name the 5 petroleum products which have been kept temporarily outside the purview of GST.

Answer 6

NH- MAP
natural Gas
high speed diesel
motor spirit
Aviation turbine fuel
petroleum crude

Question 7

under _________ mechanism GST is paid by the recipient of G/S/B

Answer 7

Reverse Charge

Question 8

under GST on certain transactions liability to pay GST is on 3rd party, Name the 3rd party

Answer 8

Electronic Commerce Operator (ECO)

Question 9

Name the list of services for which ECO is liable to pay GST.

Answer 9

Passenger transport facility
Accommodation services
House keeping services
Restaurant services

Question 10

ECO will be liable to pay GST in case of any passenger transport facility provided through any kind of _________ by ECO __________ Service provider is liable to be __________

Answer 10

Motor vehicle ;
irrespective of whether ;
registered

Question 11

in case of _________ services ECO will be liable to pay GST only if the service provider is not liable to be registered

Answer 11

Accommodation as well as House Keeping

Question 12

services provided by GTA to ________ are always taxable under RCM, also define the _________

Answer 12

Specified persons ;
it includes :-
a) factory Est under Factories Act
b) Registered Person
c) Casual Taxable person
d) Society reg under societies Act
e) co - operative society
f) body corporate
g) Partnership firm irrespective of its registration

Question 13

services provided by GTA to ________ are taxable under optional basis

Answer 13

other than specified persons.

Question 14

if GTA opts to pay tax under FCM then it shall _______

Answer 14

a) issue Invoice
b) specify on it that it is on forward charge basis
c) charge applicable rates.

Question 15

Judiciary services under RCM includes services provided by _________

Answer 15

a) individual advocate (including senior advocate)
b) firm of advocates
c) Arbitral Tribunal

Question 16

services provided by ________ to company or body corporate comes under RCM

Answer 16

Directors ;
if director is an employee then in such case the services provided become exempt by the virtue of Section ______ read with schedule _____

Question 17

services of Insurance Agent to ______ are taxable under RCM basis

Answer 17

any person

Question 18

Sponsorship services by ________ to _________ or _________ are taxable under RCM basis

Answer 18

any person ;
any body corporate ;
partnership Firm

Question 19

services by recovery agent to ________ are taxable under RCM

Answer 19

banking co ;
Financial institution ;
NBFC

Question 20

services by member of ___________ committee to RBI are taxable under RCM basis

Answer 20

Overseeing

Question 21

services supplied by _______ Direct selling agent to ______ or ______ are taxable under RCM basis

Answer 21

an individual ;
banking company ;
NBFC

Question 22

services supplied by business facilitators to _______ are taxable under RCM basis

Answer 22

Banking companny

Question 23

services provided by __________ of business correspondent to _________ are taxable under RCM basis

Answer 23

an agent ;
such business correspondent

Question 24

what are the conditions for a services of security agency to fall under the ambit of RCM ?

Answer 24

Security services provided by any person other than a company to a registered person other than a person registered under composition scheme shall be taxable under RCM

Question 25

state the conditions for services related to transfer of development rights and long term lease to fall under the ambit of RCM

Answer 25

Transfer of TDR :-
services by way of transfer of developmental rights or FSI or TDR by any person to the promoter is taxable under RCM

Long term Lease :-
The long term lease of land (for 30 years or more) by any person to promoter for construction project is taxable under RCM

Question 26

services provided by central govt, state govt, union territory, local authority (GAT) to a ________ is covered under RCM

Answer 26

Business entity
means any person engaged in business or profession

Question 27

services by way of _________________ provided by GAT to __________ does not fall under RCM

Answer 27

renting of immoveable property ;
an unregistered person

Question 28

Services by department of post to any person other than central govt, state govt, union territory, local authority is covered under _______

Answer 28

FCM

Question 29

state the 4 governmental services which are not covered under RCM

Answer 29

1. renting of immoveable property to an unregistered person
2. services by DOP to any person other than CG, SG, UT, LA
3. services in relation to aircraft or vessel whether inside or outside the precincts of a port or airport
4. services by way of transportation of goods and passengers.

Question 30

Complete the following RCM transactions using the hint :-
1. Renting of motor vehicle
2. Securities lending scheme
3. renting of residential unit

Answer 30

1. services by way of renting of motor vehicle by any person other than a body corporate to a body corporate (provided that rate of GST applicable is @5% and not 12%)
2. services of lending of securities under SLS of SEBI- RCM applicable, hence GST payable by borrower.
3. services by way of renting of residential dwelling/unit to a registered person.

Question 31

state the 2 services that fall under RCM as per IGST Act

Answer 31

The following 2 services have been notified to fall under RCM for the purposes of IGST :-
1. Supply of services by a person in non taxable territory to any person in taxable territory other than a NTOR (Non taxable online recipient) .
2. Supply of services by way of transportation of goods in a vessel originating from a place outside india to custom station of clearance in india by a person located in a non taxable territory.

Question 32

state the relaxation provided under RCM for entities who take registration under GST only for the purposes of deducting tax at source (TDS) under section 51 of CGST act.

Answer 32

as per the CGST act read along with RCM notification, in case of :-
1. GTA services
2. Security services
provisions of RCM shall not apply if such services are provided to :-
a. Department established by or under CG,SG, UT
b. Local Authority
c. Governmental agencies
which have taken registration under GST only for the purpose of deducting TDS under section 51 of CGST Act.

Question 33

services of literary works provided by author to publishing company is covered under _________

Answer 33

RCM, but the author may opt to pay tax under FCM provided that :-
1. he specifies on the invoice that it is on FCM basis and
2. he cannot subsequently withdraw from the option for a period of 1 year.

Question 34

What is the mnemonic for remembering all the 17 services under RCM?

Answer 34

It is “MR FLAG goes to DISCO” where
L- 3
G - 2
D - 3
S - 2