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IIMB GST Assessment 6 Answers 2025

Assessment 6

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

Q1. Principal supply refers to:
Any supply bundled with other supplies
✅ The main supply in a composite supply
The cheapest supply
Unrelated goods supplied together

Q2. Which of the following qualifies as a principal supply?
Chocolate and biscuit combo sold during Diwali
✅ Mobile phone sold with charger
Buy one soap, get one free
Combo of soft drinks and snacks at different prices

Q3. Under composite supply, the tax rate is applied on the basis of:
Average of all items
Ancillary supply
✅ Principal supply
Highest GST rate among the items

Q4. A tour operator offers a package including travel (5%), hotel accommodation (12%) and sightseeing (18%). The predominant element is travel. What will be the tax treatment under GST?
Apply highest rate (18%)
Apply hotel rate (12%)
✅ Apply travel rate (5%)
Split rates as per services

Q5. A company provides IT hardware and separately charges for installation. The installation is essential for the working of hardware. What is this supply?
Mixed supply
✅ Composite supply with principal supply as hardware
Separate supplies
Exempt supply

Q6. A school provides educational services to its students. Under which category will this supply fall?
✅ Absolute Exemption
Conditional Exemption
Zero-Rated Supply
Deemed Supply

Q7. XYZ Ltd. sends goods from its head office in Delhi to its branch in Bangalore (separate GSTIN’s). Which type of supply does this represent?
Exempt supply
Zero-rated supply
✅ Deemed supply
Non-GST supply

Q8. A legal consultant provides services and charges GST. They purchase laptops for office use and pay GST on it. Can they claim ITC?
No, because services are exempt
✅ Yes, because legal services are taxable
No, because ITC is only for manufacturing
Yes, but only partially

Q9. Under RCM, GST must be paid using:
Input Tax Credit
Credit Note
✅ Cash
Barter system

Q10. Which return must be filed by the recipient under RCM?
GSTR-1
GSTR-2
✅ GSTR-3B
GSTR-9

Q11. In which of the following scenarios is RCM not applicable?
Import of services
Purchase of cement by builder from unregistered dealer
✅ Purchase of milk by restaurant
Legal service received by a company

Q12. RCM was initially applicable on purchases from all unregistered persons. Why was this later restricted?
To encourage exports
To promote voluntary compliance
✅ It led to practical difficulties and reduced purchases from unregistered dealers
It increased government revenue

Q13. Which of the following correctly distinguishes RCM from exempt supply?
RCM – GST payable; Exempt – GST also payable
RCM – Buyer pays; Exempt – Seller pays
✅ RCM – GST payable by buyer; Exempt – No GST is payable
Both RCM and Exempt supply allow ITC

Q14. Services under GST include:
Sale of physical goods
✅ Conversion of currency for a fee
Sale of shares
Sale of crops

Q15. Which of the following best defines goods under GST as per the CGST Act?
Any intangible service except money
✅ Every kind of movable property except money and securities, including growing crops
Money and securities
Immovable property like land

📌 Summary of Correct Answers (Assessment 6):

  1. The main supply in a composite supply

  2. Mobile phone sold with charger

  3. Principal supply

  4. Apply travel rate (5%)

  5. Composite supply with principal supply as hardware

  6. Absolute Exemption

  7. Deemed supply

  8. Yes, because legal services are taxable

  9. Cash

  10. GSTR-3B

  11. Purchase of milk by restaurant

  12. It led to practical difficulties and reduced purchases from unregistered dealers

  13. RCM – GST payable by buyer; Exempt – No GST is payable

  14. Conversion of currency for a fee

  15. Every kind of movable property except money and securities, including growing crops