The 'GST Refund' for zero-rated supplies without payment of tax (under bond/LUT) can be claimed for: MCQ with Answer and Explanation

The 'GST Refund' for zero-rated supplies without payment of tax (under bond/LUT) can be claimed for:
A. Output tax only
B. Both output tax and input tax credit
C. Unutilised input tax credit
D. No refund
Answer: Option C
Solution (By JKSSB Mock Tests)
When export is under bond/LUT without payment of IGST, refund of accumulated input tax credit can be claimed.

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Practice More Accountancy and Book Keeping Questions

Question #1
A Value Added Statement is an important component of:
A. Cost Sheet
B. Social Accounting
C. Bank Reconciliation
D. Cash Flow Statement

Correct Answer: Option B


Explanation:
A Value Added Statement shows how much wealth the company has created and how it is distributed among employees, government, providers of capital, and retained earnings.

Question #2
For calculating the Current Ratio, which of the following is excluded from Current Assets?
A. Sundry Debtors
B. Prepaid Expenses
C. Loose Tools
D. Cash at Bank

Correct Answer: Option C


Explanation:
Loose tools and spares are generally excluded from current assets while calculating liquidity ratios because they cannot be easily converted into cash to pay off liabilities.

Question #3
S1: A Cash Book is a subsidiary book. S2: A Cash Book also acts as a ledger account. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. S1 only
D. Both S1 and S2

Correct Answer: Option D


Explanation:
The Cash Book is a subsidiary book (book of original entry) for cash transactions. It also serves as the Cash and Bank accounts in the ledger, eliminating the need to post them separately. Both statements are correct.