Thirty per cent of CA Inter Paper 3 is case-scenario MCQs, with no negative marking. The fastest way to get them right is to practise recognising which provision a question is really testing. Here are ten questions from Chapters 2 and 3 of the ICAI Study Material: supply, reverse charge, e-commerce operators and the composition scheme. Tap an option to see if you are right, and read the explanation either way.
Try to answer all ten in 12 minutes, the pace you need in the exam.
Supply under GST
Question 1
Why
Sale of land is listed in Schedule III, so it is outside GST. The other three are supplies of services under Schedule II.
Question 2
Why
The proviso to Schedule I, Para 2 says gifts by an employer to an employee up to ₹50,000 in value in a financial year are not treated as a supply.
Question 3
Why
Schedule I, Para 4 makes import of services from a related person, or from one’s own establishment outside India, in the course or furtherance of business, a supply even without consideration.
Question 4
Why
The items are not naturally bundled but are sold for a single price, so this is a mixed supply under section 2(74). Section 8(b) taxes a mixed supply at the rate of the item with the highest rate.
Charge of GST and reverse charge
Question 5
Why
Entry 14 of the reverse charge notification covers security services supplied by any person other than a body corporate to a registered person, other than a composition taxpayer or a TDS-only Government registrant.
Question 6
Why
GTA services to an unregistered person, other than the specified recipients (factory, society, co-operative society, body corporate, partnership firm, registered casual taxable person), are exempt. An unregistered individual is not a specified recipient (ICAI example).
Question 7
Why
Passenger transport by motor cab is a service notified under section 9(5). The e-commerce operator pays the tax as if it were the supplier.
Composition scheme
Question 8
Why
Uttarakhand is one of the eight States where the section 10(1) limit is ₹75 lakh. ₹80 lakh is above it.
Question 9
Why
Restaurant services under composition pay 5% (2.5% CGST and 2.5% SGST) of turnover in the State. Manufacturers and traders pay 1%, and section 10(2A) suppliers pay 6%.
Question 10
Why
Section 10(1) is for goods and restaurant services (with marginal services). A service provider not eligible for 10(1), with turnover up to ₹50 lakh in the preceding year, can opt for section 10(2A) at 6%.
How did you do?
- 9–10 correct: you are exam-ready on these chapters. Move to place of supply and exemptions.
- 6–8 correct: read the explanations for the ones you missed, then re-attempt tomorrow.
- 5 or fewer: revise Schedules I to III, the reverse charge list and the composition limits before attempting again.
Revise the topics behind these questions
- Supply under GST (Section 7): CA Inter notes
- Reverse charge under GST: services under section 9(3)
- Composition scheme under GST: limits, rates and eligibility
Free for the May 2027 batch
Learn GST the way it is applied at work
CA Inter GST (Paper 3, Section B) by CA Vivek Kumar: short lectures in Hinglish, a concept-check MCQ after every concept, study notes, revision notes and past-paper practice for every chapter.
Note
Questions are based on Chapters 2 and 3 of the ICAI BoS Study Material, Intermediate Paper 3 Section B, for May 2027, September 2027 and January 2028 (law as amended up to 30.04.2026). Last reviewed 15 October 2026.