IIMB GST Assessment 7 Answers 2025

Assessment 7

📅 Due date: 2025-09-28, 23:59 IST
📌 Assignment not submitted

Q1. ISD is applicable to which of the following?

• Input goods

• Output services
  ✅ Input services

• Capital goods

Q2. Which one of the following is NOT a condition to qualify as an ISD?

• Must distribute credit proportionately

• Must file GSTR-6
  ✅ Can distribute credit for goods

• Must have the same PAN across units

Q3. A corporate office in Delhi pays ₹2,00,000 for training. GST @ 18% is ₹36,000. 50% of the service benefits Maharashtra unit, and 50% to Gujarat unit. How much ITC will Maharashtra get via ISD?

• ₹36,000
  ✅ ₹18,000

• ₹10,000

• ₹20,000

Q4. Which of the following reflects the main reason ISD is important under GST?

• Helps avoid income tax audit

• Distributes goods across branches
  ✅ Ensures fair allocation of ITC

• Ensures ITC refund for exports

Q5. Who retains ownership of goods in a job work arrangement?

• Job worker

• Transporter
  ✅ Principal

• Customer

Q6. Which of the following statements is true regarding job work under GST?

• Principal must pay GST when sending goods to the job worker

• Job work is considered a supply of goods
  ✅ Job work is taxable only when service is rendered by the job worker

• Input Tax Credit cannot be claimed on job work transactions

Q7. In manufacturing, the ownership of raw materials and finished products lies with:

• Supplier

• Job worker
  ✅ Manufacturer

• Buyer

Q8. XYZ Co. sends capital goods to a job worker directly without bringing them to its registered premises. Can ITC be claimed by XYZ Co.?

• No, because goods did not enter the principal’s premises
  ✅ Yes, if goods are returned within 5 years

• Yes, if goods are returned within 3 years

• No, unless job worker is unregistered

Q9. Which of the following best distinguishes job work from manufacturing under GST?

• GST is always charged at a higher rate in job work

• Job work is always exempt from GST
  ✅ In job work, goods are returned to the principal; in manufacturing, the goods belong to the manufacturer

• Manufacturing does not require registration under GST

Q10. Which of the following is a blocked credit under GST?

• Raw materials for production

• Laptop for office use
  ✅ Club membership fees

• Purchase of stock-in-trade

Q11. Mr. Raj imports machinery for business use and pays IGST. He also purchases goods from a composition dealer. What input taxes can he claim ITC on?
✅ Only IGST

• Only GST from composition dealer

• Both IGST and composition GST

• None of the above

Q12. A business received goods in April 2024. The supplier paid tax and issued invoice. What is the latest date to claim ITC?

• 31st March 2025

• Date of GSTR-1

• Date of invoice
  ✅ Earlier of September 2025 return or Annual Return

Q13. For services related to immovable property, the place of supply is:

• Location of supplier

• Location of recipient
  ✅ Location of the immovable property

• Location where invoice is issued

Q14. A supplier in Delhi provides training services in Tamil Nadu to a registered company in Maharashtra. The place of supply is:

• Delhi

• Tamil Nadu
  ✅ Maharashtra

• Either Tamil Nadu or Maharashtra

Q15. If a graphic designing service is supplied to an unregistered recipient whose address is not available, place of supply will be:
✅ Supplier’s location

• Recipient’s last known location

• Location of service delivery

• None of the above

✅ Summary of Answers (Assessment 7)

1. Input services

2. Can distribute credit for goods

3. ₹18,000

4. Ensures fair allocation of ITC

5. Principal

6. Job work is taxable only when service is rendered by the job worker

7. Manufacturer

8. Yes, if goods are returned within 5 years

9. In job work, goods are returned to the principal; in manufacturing, the goods belong to the manufacturer

10. Club membership fees

11. Only IGST

12. Earlier of September 2025 return or Annual Return

13. Location of the immovable property

14. Maharashtra

15. Supplier’s location