Identify the correct statement regarding GST collected by a vendor.

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

GST vendors can claim credit of GST paid on their input goods and then will have to remit the balance to the account of the Government

Correct answer
B

GST vendors will have to deposit the entire GST collected with the Government
C

GST vendors can keep the GST collected with themselves as it is part of their income
D

None of the above

Why this is the answer

Under GST, vendors can offset input tax credit and remit only the net tax payable to the government.

Test yourself for real

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.