GST Works Contract

Description: Quiz on GST Works Contract
Number of Questions: 14
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Tags: gst works contract taxation
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What is the definition of a works contract under GST?

  1. A contract for the sale of goods

  2. A contract for the provision of services

  3. A contract for the transfer of property

  4. A contract for the construction of a building


Correct Option: B
Explanation:

A works contract is defined under GST as a contract for the provision of services in relation to the construction of a building, civil structure or any other immovable property.

What is the GST rate applicable to works contracts?

  1. 18%

  2. 12%

  3. 5%

  4. 0%


Correct Option: A
Explanation:

The GST rate applicable to works contracts is 18%.

Who is responsible for paying GST on a works contract?

  1. The contractor

  2. The client

  3. Both the contractor and the client

  4. None of the above


Correct Option: A
Explanation:

The contractor is responsible for paying GST on a works contract.

What are the documents required for claiming input tax credit on GST paid on works contracts?

  1. Invoice

  2. Payment challan

  3. GST registration certificate

  4. All of the above


Correct Option: D
Explanation:

All of the above documents are required for claiming input tax credit on GST paid on works contracts.

What is the time limit for filing GST returns for works contracts?

  1. 15th of the following month

  2. 30th of the following month

  3. 20th of the following month

  4. 10th of the following month


Correct Option: C
Explanation:

The time limit for filing GST returns for works contracts is 20th of the following month.

What is the penalty for late filing of GST returns for works contracts?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day


Correct Option: A
Explanation:

The penalty for late filing of GST returns for works contracts is Rs. 100 per day.

What is the interest payable on late payment of GST on works contracts?

  1. 18% per annum

  2. 12% per annum

  3. 9% per annum

  4. 6% per annum


Correct Option: A
Explanation:

The interest payable on late payment of GST on works contracts is 18% per annum.

What are the consequences of non-payment of GST on works contracts?

  1. Penalty

  2. Interest

  3. Imprisonment

  4. All of the above


Correct Option: D
Explanation:

All of the above consequences can be imposed for non-payment of GST on works contracts.

What is the difference between a works contract and a supply of goods?

  1. In a works contract, the contractor is responsible for the construction of the building, while in a supply of goods, the supplier is responsible for the sale of the goods.

  2. In a works contract, the contractor is responsible for the provision of services, while in a supply of goods, the supplier is responsible for the sale of the goods.

  3. In a works contract, the contractor is responsible for the transfer of property, while in a supply of goods, the supplier is responsible for the sale of the goods.

  4. In a works contract, the contractor is responsible for the construction of the building, while in a supply of goods, the supplier is responsible for the transfer of property.


Correct Option: B
Explanation:

The main difference between a works contract and a supply of goods is that in a works contract, the contractor is responsible for the provision of services, while in a supply of goods, the supplier is responsible for the sale of the goods.

What is the difference between a works contract and a contract for the sale of land?

  1. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of land, the seller is responsible for the sale of the land.

  2. In a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of land, the seller is responsible for the sale of the land.

  3. In a works contract, the contractor is responsible for the transfer of property, while in a contract for the sale of land, the seller is responsible for the sale of the land.

  4. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of land, the seller is responsible for the transfer of property.


Correct Option: B
Explanation:

The main difference between a works contract and a contract for the sale of land is that in a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of land, the seller is responsible for the sale of the land.

What is the difference between a works contract and a contract for the sale of goods?

  1. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of goods, the seller is responsible for the sale of the goods.

  2. In a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of goods, the seller is responsible for the sale of the goods.

  3. In a works contract, the contractor is responsible for the transfer of property, while in a contract for the sale of goods, the seller is responsible for the sale of the goods.

  4. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of goods, the seller is responsible for the transfer of property.


Correct Option: B
Explanation:

The main difference between a works contract and a contract for the sale of goods is that in a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of goods, the seller is responsible for the sale of the goods.

What is the difference between a works contract and a contract for the sale of immovable property?

  1. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of immovable property, the seller is responsible for the sale of the immovable property.

  2. In a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of immovable property, the seller is responsible for the sale of the immovable property.

  3. In a works contract, the contractor is responsible for the transfer of property, while in a contract for the sale of immovable property, the seller is responsible for the sale of the immovable property.

  4. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of immovable property, the seller is responsible for the transfer of property.


Correct Option: B
Explanation:

The main difference between a works contract and a contract for the sale of immovable property is that in a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of immovable property, the seller is responsible for the sale of the immovable property.

What is the difference between a works contract and a contract for the sale of a going concern?

  1. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of a going concern, the seller is responsible for the sale of the going concern.

  2. In a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of a going concern, the seller is responsible for the sale of the going concern.

  3. In a works contract, the contractor is responsible for the transfer of property, while in a contract for the sale of a going concern, the seller is responsible for the sale of the going concern.

  4. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of a going concern, the seller is responsible for the transfer of property.


Correct Option: B
Explanation:

The main difference between a works contract and a contract for the sale of a going concern is that in a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of a going concern, the seller is responsible for the sale of the going concern.

What is the difference between a works contract and a contract for the sale of securities?

  1. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of securities, the seller is responsible for the sale of the securities.

  2. In a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of securities, the seller is responsible for the sale of the securities.

  3. In a works contract, the contractor is responsible for the transfer of property, while in a contract for the sale of securities, the seller is responsible for the sale of the securities.

  4. In a works contract, the contractor is responsible for the construction of the building, while in a contract for the sale of securities, the seller is responsible for the transfer of property.


Correct Option: B
Explanation:

The main difference between a works contract and a contract for the sale of securities is that in a works contract, the contractor is responsible for the provision of services, while in a contract for the sale of securities, the seller is responsible for the sale of the securities.

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