S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct?
A. Both S1 and S2
B. S1 only
C. Neither S1 nor S2
D. S2 only
Answer: Option B
Solution (By JKSSB Mock Tests)
S1 is correct; e-invoicing generates an IRN and QR code. S2 is incorrect because the IRN is generated by the Invoice Registration Portal (IRP) of the government, not locally by the taxpayer's software without validation.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following statements about GST is/are correct? 1. It is a destination-based consumption tax. 2. It subsumes all central and state indirect taxes. 3. Petroleum products are presently outside GST. 4. The GST Council is a constitutional body.
A. All of the above
B. 1, 2 and 3
C. 1, 3 and 4
D. 2, 3 and 4

Correct Answer: Option C


Explanation:
Statement 2 is incorrect because some taxes like basic customs duty, stamp duty are not subsumed. 1, 3, 4 are correct.

Question #2
In the context of PFMS, the 'Public Accounts Committee' (PAC) examines:
A. The annual budget estimates
B. The monetary policy of the RBI
C. The appropriation accounts and the audit reports of the CAG
D. The tax collection policies

Correct Answer: Option C


Explanation:
The Public Accounts Committee (PAC) of the Parliament examines the appropriation accounts (showing how grants were spent) and the audit reports submitted by the Comptroller and Auditor General (CAG).

Question #3
Identify the non-cash item from the following:
A. Purchase of machinery
B. Dividend paid
C. Wages paid
D. Depreciation

Correct Answer: Option D


Explanation:
Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.