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CMA Intermediate · Direct and Indirect Taxation · Returns and Payment of Taxes

Which statement about the procedure for obtaining instalments under the CGST Rules is correct?

The taxable person applies electronically in FORM GST DRC-20, after which the Commissioner calls for a report from the jurisdictional officer about financial ability to pay. If satisfied, the Commissioner issues an order in FORM GST DRC-21 allowing time or monthly instalments not exceeding twenty-four.

  1. AThe taxable person applies electronically in FORM GST DRC-20, and the Commissioner calls for a report from the jurisdictional officer on financial ability to payCorrect
  2. BThe application is made in FORM GST DRC-21 and no report is called for
  3. CThe jurisdictional officer alone issues the order without the Commissioner
  4. DThe order is issued in FORM GST DRC-20 for any number of instalments

Explanation

The application is filed electronically in FORM GST DRC-20. The Commissioner then calls for a report on financial ability and may issue an order in FORM GST DRC-21. The other options reverse the forms, drop the report or exceed the 24-instalment limit.

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