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IIMB GST Assessment 5 Answers 2025

Assessment 5

📅 Due date: 2025-09-21, 23:59 IST.
📌 Assignment not submitted

Q1. Capital goods under GST must be:
Used for personal use
Expensed in books
✅ Capitalized in books and used in business
Only rented out

Q2. Which of the following is NOT an example of business under GST?
A freelance photographer providing services
✅ A charitable trust running a free clinic
A yoga instructor charging for classes
A person organizing trekking for a fee

Q3. A company sends capital machinery to a job worker, and it is returned after 4 years. What is the implication under GST?
ITC is claimed in full
✅ ITC needs to be reversed
ITC is unaffected
Depreciation is claimed instead

Q4. Which of the following statements is TRUE about GST treatment of government activities?
All government services are exempt from GST
Government contractors are not considered businesses under GST
✅ Some government services attract GST unless exempted
GST does not apply to statutory bodies

Q5. The registration for a CTP is valid for how many days initially?
30 days
60 days
✅ 90 days
180 days

Q6. Which of the following statements is not true for a Casual Taxable Person?
✅ CTP can opt for the composition scheme
CTP must pay estimated tax in advance
CTP must register at least five days before starting business
CTP may operate in India or be a foreign entity

Q7. A foreign company participates in an exhibition in India for 10 days and sells its products. Under GST, which of the following is true?
It need not register if turnover is below ₹20 lakhs
✅ It must register as a Non-Resident Taxable Person (NRTP)
It must register as a Casual Taxable Person (CTP)
It can operate under an Indian agent’s GSTIN

Q8. Which of the following statements correctly explains the need for advance tax by a CTP?
To avoid dual registration
To simplify compliance
✅ To ensure timely payment of estimated tax liability
To get eligible for composition scheme

Q9. How many days before commencement of business should a NRTP apply for registration?
2 days
✅ 5 days
10 days
No such requirement

Q10. Which of the following statements is true about NRTP?
NRTP has a fixed place of business in India
NRTP can claim ITC
✅ NRTP must file GSTR-5 return
NRTP is not required to pay advance tax

Q11. Which of the following is not a distinction between NRTP and CTP?
NRTP is a foreign supplier, while CTP is a domestic supplier
CTP can claim ITC, NRTP cannot
✅ NRTP is exempted from advance tax
NRTP operates without a fixed place of business in India

Q12. If a non-resident taxable person files a GSTR-5 on the 25th of the next month and their registration expired on the 18th, is it valid?
Yes
No, should have been filed by 20th
No, should have been filed by 25th
✅ No, should have been filed within 7 days of expiry

Q13. Which of the following is a composite supply under GST?
Buying a chocolate and a bottle of water together
✅ Air ticket with onboard meals
Gift hamper of unrelated items
Purchase of land

Q14. Which of the following best describes “composite supply”?
Two or more supplies that are artificially bundled
Supplies made in conjunction but not in ordinary business
✅ Naturally bundled supplies with one principal component
Combination of taxable and exempt supplies

Q15. A software company offers a bundled package of software license, installation, and training. The supply is composite because:
All services have different tax rates
The services are artificially bundled
✅ The services are naturally bundled with the license as principal supply
There is no consideration involved

📌 Summary of Correct Answers (Assessment 5):

  1. Capitalized in books and used in business

  2. Charitable trust running free clinic

  3. ITC needs to be reversed

  4. Some government services attract GST unless exempted

  5. 90 days

  6. CTP can opt for composition scheme (NOT true)

  7. Must register as NRTP

  8. To ensure timely payment of estimated tax liability

  9. 5 days

  10. NRTP must file GSTR-5 return

  11. NRTP is exempted from advance tax (NOT true)

  12. No, should have been filed within 7 days of expiry

  13. Air ticket with onboard meals

  14. Naturally bundled supplies with one principal component

  15. Naturally bundled with license as principal supply