The charge and place of supply, registration, deduction of tax at source and the monthly return are the subjects you apply in this GST test. It carries 8 questions for 15 marks, with a time limit of 30 minutes, and it is set for CA Intermediate Group 1 students preparing for the January 2027 attempt. The chapters covered are Chapter 2 - Supply under GST, Chapter 3 - Charge of GST, Chapter 4 - Place of Supply, Chapter 6 - Time of Supply, Chapter 14 - Tax Deduction at Source and Collection of Tax at Source and Chapter 15 - Returns. The questions sit in three case scenarios: a buyer's purchase of a production-line unit, a gift hamper and legal services, a public works contract with collection at source, and a monthly filer preparing a return.
The law basis is the CGST Act 2017, IGST Act 2017 and CGST Rules as amended by Finance Act 2025, notifications and circulars effective up to 28 February 2026. There is no negative marking, so a wrong answer costs nothing. Questions are prepared with AI tools and cross-checked by independent solvers; they are not reviewed by a Chartered Accountant.
8 questions across 6 chapters, 15 marks and 30 minutes in the timed paper. Every answer below is shown with the working behind it and the authority it rests on.
Law and standards used: CGST Act 2017, IGST Act 2017 and CGST Rules as amended by Finance Act 2025, notifications and circulars effective up to 28 February 2026.
Questions
8
Marks
15
Time limit
30 minutes
Attempt
January 2027
Group
Group 1
Law basis
CGST Act 2017, IGST Act 2017 and CGST Rules as amended by Finance Act 2025, notifications and circulars effective up to 28 February 2026
Content as of
2026-10-31
Chapters covered
Chapter 2 - Supply under GST (2 Q)
Chapter 3 - Charge of GST (1 Q)
Chapter 4 - Place of Supply (2 Q)
Chapter 6 - Time of Supply (1 Q)
Chapter 14 - Tax Deduction at Source and Collection of Tax at Source (1 Q)
Chapter 15 - Returns (1 Q)
Questions, answers and explanations
Question 1 · 2 marks · Chapter 2 - Supply under GST · easy
Scenario. Avyukt Motion Systems Pvt Ltd is registered in Pune, Maharashtra and carries on business there. In July 2026, it buys a production-line unit from Sumeru Industrial Supplies, a Pune supplier, for a single package price of ₹18,00,000. The package comprises taxable supplies of the unit, delivery, transit insurance and on-site calibration; Sumeru invariably supplies them together in its ordinary business, and customers regard the unit as the main element, with the other elements ancillary to its use. In the same month, Avyukt buys a festive hamper for ₹4,500 from Rangilo Gifts containing tea, chocolates and a ceramic cup. Each item is taxable and can be supplied independently; the items are not naturally bundled, and Rangilo charges one consolidated price. Avyukt also obtains legal services for business litigation from K&S Advocates, a firm located in Delhi. K&S issues its invoice on 3 June 2026; Avyukt records payment in its books on 5 August 2026 and its bank account is debited on 6 August 2026. Separately, Avyukt engages Ishan Design Studio, an architect located in Indore, to prepare plans directly relating to a commercial property situated in Goa. All service suppliers and Avyukt are located in India; Avyukt is GST-registered in Maharashtra.
How should the production-line package supplied by Sumeru Industrial Supplies be classified for GST, and how is its tax liability determined?
It is a composite supply and is treated as a supply of calibration services because calibration is necessary for operating the unit.
It is a composite supply and is treated as a supply of the production-line unit, being the principal supply. (correct answer)
It is a mixed supply and is taxed at the rate applicable to the component attracting the highest rate.
It comprises independent supplies, each of which must be taxed separately at its respective rate.
Answer: B — It is a composite supply and is treated as a supply of the production-line unit, being the principal supply.
Explanation. The package contains multiple taxable supplies naturally bundled and supplied together in the ordinary course of the supplier's business. The production-line unit is the predominant element; delivery, insurance and calibration are ancillary. It is therefore a composite supply, treated as a supply of the principal supply under section 8(a). The option treating it as a mixed supply overlooks the natural bundling and principal-supply relationship.
Where it goes wrong. Confusing a naturally bundled composite supply with a mixed supply or treating an ancillary element as the principal supply.
Authority. CGST Act, sections 2(30), 2(90) and 8(a); Study Material, Chapter 2, pages 2.71-2.72
Question 2 · 2 marks · Chapter 2 - Supply under GST · medium
What is the GST treatment of the festive hamper supplied by Rangilo Gifts?
It is a composite supply and is taxed at the rate applicable to the ceramic cup.
It is a mixed supply but each component is taxed separately at its respective rate.
It is a composite supply and is taxed at the rate applicable to tea as the principal supply.
It is a mixed supply and is taxed at the rate applicable to the component attracting the highest rate of tax. (correct answer)
Answer: D — It is a mixed supply and is taxed at the rate applicable to the component attracting the highest rate of tax.
Explanation. Each hamper component can be supplied independently, and the facts state that the items are not naturally bundled. Since they are supplied together for one consolidated price and do not form a composite supply, the hamper is a mixed supply under section 2(74). Section 8(b) taxes a mixed supply as the particular supply attracting the highest rate, not by treating tea as the principal supply or taxing each item separately.
Where it goes wrong. Applying the principal-supply rule for composite supplies instead of the highest-rate rule for mixed supplies.
Authority. CGST Act, sections 2(74) and 8(b); Study Material, Chapter 2, pages 2.77-2.78
Question 3 · 2 marks · Chapter 3 - Charge of GST · easy
Who is liable to pay GST on the legal services supplied by K&S Advocates to Avyukt Motion Systems Pvt Ltd?
Avyukt Motion Systems Pvt Ltd, under reverse charge, as the recipient is a business entity located in the taxable territory. (correct answer)
Avyukt Motion Systems Pvt Ltd, under forward charge, because it is the registered recipient.
Both K&S Advocates and Avyukt Motion Systems Pvt Ltd are jointly liable to pay GST.
K&S Advocates, under forward charge, because the supplier is a registered firm.
Answer: A — Avyukt Motion Systems Pvt Ltd, under reverse charge, as the recipient is a business entity located in the taxable territory.
Explanation. Legal services supplied by a firm of advocates to a business entity located in the taxable territory fall under the notified reverse-charge category. Accordingly, the recipient business entity, Avyukt, is liable to pay GST. K&S's registration or its status as supplier does not convert the notified service to forward charge; the reverse-charge entry places liability on the business-entity recipient.
Where it goes wrong. Assuming that a registered service provider must always pay GST under forward charge.
Question 4 · 2 marks · Chapter 4 - Place of Supply · medium
What is the place of supply of K&S Advocates' legal services, and how is the transaction classified for levy of tax?
Maharashtra; inter-State supply attracting IGST, payable by Avyukt under reverse charge. (correct answer)
Delhi; inter-State supply attracting IGST, payable by K&S Advocates under forward charge.
Maharashtra; intra-State supply attracting CGST and Maharashtra SGST.
Delhi; intra-State supply attracting CGST and Delhi SGST.
Answer: A — Maharashtra; inter-State supply attracting IGST, payable by Avyukt under reverse charge.
Explanation. Because Avyukt is registered, section 12(2) places the supply at the location of the registered recipient, Maharashtra. K&S is located in Delhi, so the supplier's location and place of supply are in different States; the transaction is inter-State and attracts IGST. The place of supply is not the advocate firm's location merely because the legal work is performed there. The recipient pays the tax under reverse charge.
Where it goes wrong. Using the supplier's location instead of the registered recipient's location under the general rule for services.
Authority. IGST Act, sections 7(3) and 12(2); CGST Act, section 9(3); Study Material, Chapter 4, pages 4.26-4.27
Question 5 · 2 marks · Chapter 4 - Place of Supply · medium
What is the place of supply of the architect's service supplied by Ishan Design Studio, and what is the nature of the supply?
Pune, Maharashtra; inter-State supply.
Goa; intra-State supply.
Goa; inter-State supply. (correct answer)
Indore, Madhya Pradesh; intra-State supply.
Answer: C — Goa; inter-State supply.
Explanation. Architectural services directly related to immovable property are governed by the specific rule in section 12(3)(a), rather than the general registered-recipient rule. The place of supply is where the property is located or intended to be located. Since the commercial property is in Goa, Goa is the place of supply. The supplier is located in Madhya Pradesh, making the supply inter-State.
Where it goes wrong. Applying the general rule for registered recipients instead of the specific immovable-property rule.
Authority. IGST Act, sections 7(3) and 12(3)(a); Study Material, Chapter 4, pages 4.21-4.22
Question 6 · 2 marks · Chapter 6 - Time of Supply · hard
What is the time of supply of the legal services provided by K&S Advocates under reverse charge?
2 August 2026
5 August 2026
6 August 2026
3 August 2026 (correct answer)
Answer: D — 3 August 2026
Working. 1. Supplier's invoice date = 3 June 2026.\
2. Sixty days from the invoice date expire on 2 August 2026. The immediately following day, i.e. the 61st day, is 3 August 2026.\
3. Date of payment = earlier of the date entered in the recipient's books (5 August 2026) and the date of bank debit (6 August 2026) = 5 August 2026.\
4. Time of supply = earlier of 3 August 2026 and 5 August 2026 = 3 August 2026.
Explanation. Under section 13(3), the time of supply is the earliest of the recipient's date of payment and the date immediately following 60 days from the supplier's invoice. Payment is recorded in the books on 5 August, earlier than the 6 August bank debit. The 61st day after 3 June is 3 August, which precedes 5 August. The 60th day, 2 August, is not the statutory date.
Where it goes wrong. Taking the 60th day instead of the day immediately following 60 days, or selecting the bank debit date instead of the earlier date of payment.
Question 7 · 2 marks · Chapter 14 - Tax Deduction at Source and Collection of Tax at Source · hard
Scenario. During November 2026, the Karnataka Public Works Department, registered in Karnataka, awards a taxable-services contract to Rishit Services, a registered supplier located in Karnataka, for ₹3,20,000 excluding GST; the place of supply is also Karnataka. It pays an instalment of ₹1,50,000 excluding GST. Separately, an ECO collects consideration for inter-State taxable supplies of a registered seller worth ₹4,80,000, of which supplies worth ₹80,000 are returned.
What are the respective amounts of TDS and TCS for November 2026? Amounts are in rupees; no rounding is required.
TDS Nil; TCS ₹2,000
TDS ₹3,000; TCS ₹2,400
TDS ₹3,000; TCS ₹2,000 (correct answer)
TDS ₹1,500; TCS ₹2,000
Answer: C — TDS ₹3,000; TCS ₹2,000
Working. TDS calculation:\
Contract value = ₹3,20,000, which exceeds ₹2,50,000. Hence, TDS applies.\
Payment made during November = ₹1,50,000 (excluding GST).\
CGST TDS = 1% × ₹1,50,000 = ₹1,500.\
SGST TDS = 1% × ₹1,50,000 = ₹1,500.\
Total TDS = ₹1,500 + ₹1,500 = ₹3,000.\
\
TCS calculation:\
Inter-State taxable supplies through ECO = ₹4,80,000.\
Less: Supplies returned = ₹80,000.\
Net value of taxable supplies = ₹4,80,000 − ₹80,000 = ₹4,00,000.\
TCS = 0.5% × ₹4,00,000 = ₹2,000.\
\
Therefore, TDS = ₹3,000 and TCS = ₹2,000.
Explanation. The contract value of taxable services exceeds ₹2,50,000 and the supplier's location, place of supply and recipient's registration are all in Karnataka, so TDS applies. The intra-State deduction is 1% CGST plus 1% SGST on the ₹1,50,000 payment, totalling ₹3,000. Inter-State TCS is 0.5% of net supplies after returns: ₹4,80,000 less ₹80,000 equals ₹4,00,000; TCS is ₹2,000. The gross-sales distractor fails to deduct returns.
Where it goes wrong. Applying only 1% as the combined intra-State TDS rate, ignoring the contract-value threshold, or calculating TCS on gross supplies without reducing returns.
Authority. CGST Act, sections 51(1) and 52(1); IGST Act, section 20; Study Material, Chapter 14, pages 14.5-14.9 and 14.17-14.18
Scenario. M/s Rivan Supplies is a regular registered person, files returns monthly and has not opted for QRMP. It is not an input service distributor, non-resident taxable person, composition taxpayer, TDS deductor or TCS operator. It is preparing its GSTR-3B for October 2026.
By what date must M/s Rivan Supplies furnish its GSTR-3B for October 2026?
On or before 22 November 2026
On or before 20 November 2026 (correct answer)
On or before 20 December 2026
On or before 10 November 2026
Answer: B — On or before 20 November 2026
Explanation. An ordinary registered taxpayer required to furnish a monthly return under section 39(1) files GSTR-3B on or before the 20th of the month succeeding the tax period. The return relates to October 2026, so its due date under the supplied material is 20 November 2026. The 22nd and 24th dates relate to quarterly QRMP filers, not this monthly filer.
Where it goes wrong. Confusing the monthly GSTR-3B due date with the quarterly QRMP filing dates.
CGST Act, sections 2(30), 2(90) and 8(a); Study Material, Chapter 2, pages 2.71-2.72 · CGST Act, sections 2(74) and 8(b); Study Material, Chapter 2, pages 2.77-2.78 · CGST Act, section 9(3); Notification No. 13/2017-Central Tax (Rate), entry 2; Study Material, Chapter 3, page 3.18 · IGST Act, sections 7(3) and 12(2); CGST Act, section 9(3); Study Material, Chapter 4, pages 4.26-4.27 · IGST Act, sections 7(3) and 12(3)(a); Study Material, Chapter 4, pages 4.21-4.22 · CGST Act, section 13(3); Study Material, Chapter 6, pages 6.35-6.36 · CGST Act, sections 51(1) and 52(1); IGST Act, section 20; Study Material, Chapter 14, pages 14.5-14.9 and 14.17-14.18 · CGST Act, section 39(1); CGST Rules, rule 61; Study Material, Chapter 15, pages 15.32-15.33
Questions people ask
What does this GST test ask me to apply?
The paper asks you to classify a bundled supply, decide who pays the tax where reverse charge applies, fix the place and the time of supply, work out tax deducted at source and tax collected at source, and note the date for the monthly return. The 8 questions sit in three case scenarios: a buyer's purchase of a production-line unit, a hamper and legal services, a public works contract with collection at source, and a monthly filer preparing a return.
How many questions are there and how long do I have?
There are 8 questions and the paper carries 15 marks. Seven questions are worth 2 marks each and the last one is worth 1 mark. The time limit is 30 minutes. In exam mode the paper is timed and marked once at the end, so you can move between questions and return to any of them before the time is up.
Which chapters does the paper cover?
The chapters covered are Chapter 2 - Supply under GST, Chapter 3 - Charge of GST, Chapter 4 - Place of Supply, Chapter 6 - Time of Supply, Chapter 14 - Tax Deduction at Source and Collection of Tax at Source, and Chapter 15 - Returns. The questions draw on all six, so a gap in any one of them will cost you marks. Read the scenario before you start answering.
Which law do the questions follow?
The law basis is the CGST Act 2017, IGST Act 2017 and CGST Rules as amended by Finance Act 2025, with notifications and circulars effective up to 28 February 2026. The content is stated as at 31 October 2026. Where a notification or a circular changes a rule, the change as at that date is applied in the questions, so work from your study material and the applicable statutory update.
How are the questions written?
Each question sits inside a short case scenario. You read a passage of facts, which gives the names of the parties, the amounts and the dates, and then apply the law to those facts. One passage is shared by the questions that follow it, so the same scenario usually carries more than one question. Work through the passage once and note the key figures and dates before you look at the options.
What do the calculations in the paper involve?
Two questions ask you to work out amounts rather than pick a rule. One asks for the tax deducted at source and the tax collected at source for a month, where you must read the threshold from the facts and reduce the collections by the value of goods returned. Another asks for the date on which a monthly return has to be furnished. The other questions test classification, liability, place of supply and time of supply.
Is there negative marking?
No. There is no negative marking, so a wrong answer costs nothing. Each question carries the marks set out above and the paper is marked on that basis. If you are unsure of an option, attempt it rather than leave it blank, because an attempt that turns out wrong does not reduce your score.
Can I take the paper without a timer?
Yes. In practice mode there is no timer, and you can read the explanation for every answer as you go, so you can pause and work through the questions at your own pace. In exam mode the paper is timed and marked once at the end, and you get a certificate carrying your name and score when the paper closes.
Do I need to sign up or pay anything?
No sign-up is needed and there is no payment. Nothing about a student is stored on a server. You can open the paper, attempt it and read the result without creating an account, and the same applies to the timed mode and the untimed mode alike.
Is this paper issued by ICAI?
No. This is a practice test by HeyArtha. It is not issued by or affiliated with ICAI, and it is written for students of CA Intermediate Group 1 preparing for the January 2027 attempt. Use it alongside your study material and the applicable statutory update, and check the position of each rule as at the date stated in the paper.
