The 'GST' on sale of used cars by a registered person is: MCQ with Answer and Explanation

The 'GST' on sale of used cars by a registered person is:
A. Exempt
B. Taxable at 18% on margin (if no ITC taken) or on value
C. Nil
D. 5% on margin
Answer: Option B
Solution (By JKSSB Mock Tests)
GST on sale of used vehicles by registered persons is 18% on margin (difference between purchase and selling price) if no ITC taken; otherwise on value.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'GST on Crypto transactions' (transfer of VDA) is:
A. Exempt
B. 18% on services, and classification of VDA as goods/services being debated; treated as goods, 18% GST on margin? Presently GST is levied at 18% on the value of supply.
C. 28%
D. 5%

Correct Answer: Option B


Explanation:
GST on cryptocurrency transactions is generally 18% on the service/value.

Question #2
A trader sells goods costing ₹20,000 for ₹25,000. The gross profit margin is:
A. 20%
B. 25%
C. None
D. 20% on sales? Actually profit 5,000 on sales 25,000 = 20%.

Correct Answer: Option A


Explanation:
Gross profit = 5,000. Gross profit ratio on sales = (5,000/25,000)*100 = 20%.

Question #3
Debentures are shown in Balance Sheet under:
A. Long-term borrowings
B. Current liabilities
C. Share capital
D. Reserves and surplus

Correct Answer: Option A


Explanation:
Debentures are long-term borrowings unless they are due within 12 months, then current liabilities.