IIMB GST Assessment 4 Answers 2025

Assessment 4

📅 Due date: 2025-09-14, 23:59 IST.
📌 Assignment not submitted

Q1. Under IGST, the tax revenue is allocated to:

The state where goods are produced
The central government only
✅ The state where goods are consumed
The state from where goods are dispatched

Q2. What is the treatment of supplies to SEZ units under IGST?

Taxable at standard rate
Fully exempt
✅ Treated as zero-rated supplies
Subject to compensation cess

Q3. What is the correct order of utilization of IGST Input Tax Credit?

IGST → SGST → CGST
CGST → IGST → SGST
✅ IGST → CGST → SGST
SGST → CGST → IGST

Q4. Which of the following is true regarding compensation cess under IGST?

Not applicable to inter-state supplies
Only applicable to agricultural goods
Collected by state government
✅ Levied on luxury and sin goods and shared with states

Q5. What is the threshold limit for GST registration for service providers in normal category states?

₹10 lakh
✅ ₹20 lakh
₹40 lakh
₹75 lakh

Q6. Which of the following is considered for computing aggregate turnover?

Salary paid to employees
Services provided by courts
✅ Nil-rated supplies
Inward supplies under RCM

Q7. Which one of these qualifies as a zero-rated supply under GST?

Alcohol for human consumption
Goods sold within a state
✅ Goods exported to the USA
Intra-state services

Q8. A business registered under a single PAN has the following supplies: taxable – ₹35 lakh, exempt – ₹10 lakh, exports – ₹5 lakh, inter-state supplies – ₹5 lakh. What is the aggregate turnover?

₹40 lakh
₹50 lakh
✅ ₹55 lakh
₹65 lakh

Q9. If a business deals in both taxable and exempt goods, how should ITC be claimed?

Claim 100% ITC
✅ Proportionally reverse ITC as per Rule 42 and 43
Do not claim ITC at all
Claim ITC on exempt goods only

Q10. Which of the following powers is granted to an adjudicating officer?

Appointing appellate tribunal members
✅ Summoning documents and witnesses
Making advance rulings
Creating new tax slabs

Q11. A taxpayer disagrees with an order passed by an adjudicating authority. What is the next course of action available to the taxpayer under GST law?

File a writ petition in the Supreme Court
Submit a complaint to the CBIC
✅ File an appeal before the Appellate Authority
Wait for tax department review

Q12. Which of the following is NOT typically considered an agent under GST?

Auctioneer
Commission agent
✅ Manufacturer
Broker

Q13. Which one of the following best describes the responsibility of an agent under GST?

Only to maintain inventory
✅ To collect and remit GST on behalf of the principal
To manufacture goods
To file income tax returns for the principal

Q14. When is registration mandatory for an agent under GST?

Always, regardless of turnover
Only if principal is not registered
✅ When aggregate turnover exceeds prescribed limits or supplies are made inter-state
When goods are exported

Q15. Which of the following is NOT true about the liability of an agent in GST?

✅ Agent is not responsible for invoicing
Agent and principal are jointly and severally liable
Agent must deposit tax collected to the government
Agent must maintain proper documentation

✅ Summary of Correct Answers (Assessment 4):

The state where goods are consumed
Treated as zero-rated supplies
IGST → CGST → SGST
Levied on luxury and sin goods and shared with states
₹20 lakh
Nil-rated supplies
Goods exported to the USA
₹55 lakh
Proportionally reverse ITC as per Rule 42 and 43
Summoning documents and witnesses
File an appeal before the Appellate Authority
Manufacturer
To collect and remit GST on behalf of the principal
When aggregate turnover exceeds prescribed limits or supplies are made inter-state
Agent is not responsible for invoicing