GST

GST
Super 75
QUESTIONS
INTER
MAY / JUNE 24
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GST Super
Table of
75
Contents
Basics of GST 1-4
Supply under GST 5-11
Charge under GST 12-17
Time of Supply 18-23
Exemptions 24-32
ITC 33-36
Registration 37-44
Returns under GST 45-52
Tax Invoice, Dr Note, Cr Note, E way bill 53-62

CA Amit Mahajan
Place of Suuply, Account & Records, TDS 63-72
73
Value of Supply and Payment of Taxes
onwards
Tax & Law Notes and
Guidance - CA Amit
Mahajan
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Basics of GST
Question 1 PYQ Nov 18
Differentiate between direct and indirect taxes
Answer
Difference between direct taxes and indirect taxes:
Direct Taxes Indirect Taxes
The person paying the tax to the The person paying the tax to the Government
Government directly bears the incidence collects the same from the ultimate consumer. Thus,
of the tax. incidence of the tax is shifted to the other person.
Progressive in nature - high rate of taxes Regressive in nature - All the consumers equally bear
for people having higher ability to pay. the burden, irrespective of their ability to pay.
List the Central and State levies which have been subsumed in GST in India
Answer
List of Central and State levies to be subsumed GST are as under: -
Central Taxes to be subsumed State taxes to be subsumed
1) Central Excise Duty & Additional Excise 1) VAT/Sales tax

Duty 2) State surcharges and cesses in so far
2) Service tax they relate to supply of goods &
3) CVD & Special CVD (these were levied services
on import of goods in lieu of excise and 3) Entertainment tax (except those levied
VAT if similar goods had been sold in by local bodies)
India) 4) Tax on lottery, betting and gambling
4) Central Sales tax 5) Entry tax (all forms) & Purchase tax
5) Surcharges and Cesses in so far, they 6) Luxury tax
relate to supply of goods & services 7) Tax on advertisements
Question 3 MTP 2018
Discuss the need & functions of the common GST portal
Answer
1. GST being a destination-based tax, the inter-State trade of goods and services (IGST)
needed a robust settlement mechanism amongst the States and the Centre. A Common
Portal was needed which could act as a clearing house and verify the claims and inform
the respective Governments to transfer the funds. This was possible only with the help of a
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strong IT Infrastructure.
2. Resultantly, Common GST Electronic Portal – www.gst.gov.in – a website managed by

Goods and Services Network (GSTN) [a company incorporated under the provisions of
section 8 of the Companies Act, 2013] is set by the Government to establish a uniform
interface for the tax payer and a common and shared IT infrastructure between the
Centre and States.
Question 4 MTP 2021
Write a short note on various Lists provided under Seventh Schedule to the Constitution of
India
Answer
Seventh Schedule to Article 246 of the Constitution contains three lists which enumerate the
matters under which the Union and the State Governments have the authority to make laws.
(i) List -I (UNION LIST): It contains the matters in respect of which the Parliament (Central
Government) has the exclusive right to make laws.
(ii) List -II (STATE LIST): It contains the matters in respect of which the State Government has
the exclusive right to make laws.
(iii) List -II (CONCURRENT LIST): It contains the matters in respect of which both the Central &
State Governments have power to make laws.
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Supply under GST

Examine whether the following activities would amount to supply under section 7 read with Schedule
I:
a) Sulekha Manufacturers have a factory in Delhi and a depot in Mumbai. Both these
establishments are registered in respective States. Finished goods are sent from factory in Delhi
to the Mumbai depot without consideration so that the same can be sold.
b) Raman is an architect in Chennai. His brother who is settled in London is a well-known lawyer.
Raman has taken legal advice from him free of cost with regard to his family dispute.
c) Would your answer be different if in the above case, Raman has taken advice in respect of his
business unit in Chennai?
Answer
A. Schedule I, inter alia, stipulates that supply of goods or services or both between related
persons or between distinct persons as specified in section 25, is supply even without
consideration provided it is made in the course or furtherance of business. Further, a
person who has obtained more than one registration, whether in one State/Union territory
or more than one State/Union territory shall, in respect of each such registration, be
treated as distinct persons [Section 25(4)].
In view of the same, factory and depot of Sulekha Manufacturers are distinct persons.
Therefore, supply of goods from Delhi factory of Sulekha Manufacturers to Mumbai Depot
without consideration, but in course/furtherance of business, is supply under section 7 read
with Schedule I.
B. Schedule I, inter alia, stipulates that import of services by a taxable person from a related
person located outside India, without consideration is treated as supply if it is provided in
the course or furtherance of business. Explanation to section 15, inter alia, provides that
persons shall be deemed to be “related persons” if they are members of the same family.
Further, as per section 2(49), family means, —
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or
mainly dependent on the said person
In the given case, Raman has received free of cost legal services from his brother.
However, in view of section 2(49)(ii) above, Raman and his brother cannot be considered
to be related as Raman’s brother is a well- known lawyer and is not wholly/mainly
dependent on Raman. Further, Raman has taken legal advice from him in personal matter
and not in course or furtherance of business. Consequently, services provided by Raman’s
brother to him would not be treated as supply under section 7 read with Schedule I.
C. In the above case, if Raman has taken advice with regard to his business unit, services
provided by Raman’s brother to him would still not be treated as supply under section 7
read with Schedule I as although the same are provided in course or furtherance of
business, such services have not been received from a related person.
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Question 6
PTL Pvt. Ltd. is a retail store of merchandise located in 25 States/UTs in the country. For the purpose
of clearance of stock of merchandise and to attract consumers, PTL Pvt. Ltd. launched scheme of
“Buy One Get One Free” for the same type of merchandise, for instance, one shirt to be given free
with purchase of one shirt. Determine how the taxability of the goods supplied under “Buy One
Get One Free” scheme is determined.
Answer
As per section 7(1)(a), the goods or services which are supplied free of cost (without any
consideration) are not treated as “supply” except in case of activities mentioned in Schedule I.
Under “Buy One Get One Free” scheme, it may appear at first glance that in case of offers like
“Buy One, Get One Free”, one item is being “supplied free of cost” without any consideration.
However, it is not an individual supply of free goods, but a case of two or more individual supplies
where a single price is being charged for the entire supply. It can at best be treated as supplying
two goods for the price of one.
Taxability of such supply will be dependent upon as to whether the supply is a composite supply
or a mixed supply and the rate of tax shall be determined accordingly
Question 7 RTP May 18
Sahab Sales, an air-conditioner dealer in Janakpuri, Delhi, needs 4 air -conditioners for his newly
constructed house in Safdarjung Enclave. Therefore, he transfers 4 air conditioners [on which ITC
has already been availed by it] from its stock, for the said purpose. Examine whether the said
activity amounts to supply under section 7 of the CGST Act, 2017.
Further, a Janakpuri resident, Aakash, approached Sahab Sales. He sold an air conditioner to
Sahab Sales for Rs 5,000. Aakash had bought the said air-conditioner six months before, for his
residence. Does sale of the air conditioner by Aakash to Sahab Sales amount to supply under
section 7 of the CGST Act, 2017?
Answer
Section 7(1)(a) stipulates that in order to qualify as supply, following three conditions should be
satisfied: -
1) Supply should be of goods and/or services.
2) Supply should be made for a consideration.
3) Supply should be made in the course or furtherance of business
Further, Sec 7(1)(c) Schedule I of the CGST Act, 2017 illustrates the activities to be treated as
supply even if made without consideration. One such activity is permanent transfer or disposal of
business assets where input tax credit has been availed on such assets, i.e. said activity is to be
treated as supply even if made without consideration
Taxability in given cases
Transfer of AC Since ITC has been availed by Sahab Sales on air conditioners, their permanent
by Sahab transfer by Sahab Sales from its stock for personal use at its residence, though
Sales without consideration would amount to supply under Schedule I
Sale of AC by the CGST Act, 2017 as although it is made for a consideration, but it is not in the
Aakash to course or furtherance of business.
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Sahab Sales
Question 8 May 2022
Examine whether the following activities would amount to "supply" under GST law?
(i) Glory Ltd. is engaged in manufacturing and selling of cosmetic products. Seva Trust, a
charitable organisation, approached Glory Ltd. to provide financial assistance for its
charitable activities. Glory Ltd. donated a sum of 2 lakh to Seva Trust with a condition that
Seva Trust will place a hoarding at the entrance of the trust premises displaying picture of
products sold by Glory Ltd.
(ii) Mr. Swamy of Chennai is working as a manager with ABC Bank. He consulted M/s. Jacobs
and Company of London and took its advice for buying a residential house in Mumbai
and paid them consultancy fee of 200 UK Pound for this import of service.
Answer
An activity qualifies as supply under GST only if it is for a consideration and is in course/furtherance
of business. Donations received by the charitable organizations are treated as consideration only
when there's an obligation on part of the recipient of the donation to do anything.
(i) Since in the given case, the display of products sold by the donor - Glory Ltd. - in charitable
organization's premises aims at advertising/promotion of its business, it is supply for
consideration in course/furtherance of business and thus, qualifies as supply under GST law.
(ii) Supply includes importation of services, for a consideration whether or not in the
course/furtherance of business. Thus, in the given case, the import of services by Mr. Swamy
amounts to supply although it is not in course/furtherance of business
Question 9 RTP Nov 23
Examine the implications of GST on payment of honorarium to the Guest Anchors
Answer
Circular No. 177/09/2022 GST dated 03.08.2022 clarifies the applicability of GST on honorarium
paid to Guest Anchors. Sansad TV and other TV channels invite guest anchors to participate in
their shows and pay remuneration to them in the form of honorarium.
It is clarified that supply of all goods & services are taxable unless exempt or declared as 'neither
a supply of goods nor a supply of service'. Services provided by the guest anchors in lieu of
honorarium attract GST liability.
However, guest anchors whose aggregate turnover in a financial year does not exceed 20 lakh
(10 lakh in case of specified Special Category States) shall not be liable to take registration and
pay GST.
Examine whether the activity of import of service in the following independent cases would
amount to supply under section 7:
(i) Miss Shriniti Kaushik received interior decoration services for her residence located at
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Bandra, Mumbai from Mr. Racheal of Sydney (Australia). The amount paid for the said
service is 5,000 Australian dollar.
(ii) Miss Shriniti Kaushik received interior decoration services for her residence located at
Bandra, Mumbai from her brother, Mr. Varun residing in Sydney (Australia) [wholly
dependent on Miss Shriniti]. Further, Miss Shriniti did not pay any consideration for the said
service
(iii) Will your answer change if in the above case, if Miss Shriniti has taken interior decoration
services with regard to her business premises and not her residence?
Answer
i. Supply, under section 7, inter alia,
 includes import of services for a consideration
 even if it is not in the course or furtherance of business.
Thus, although the import of service for consideration by Miss. Shriniti Kaushik is not in course
or furtherance of business [as the interior decoration services have been availed in respect
of residence], it would amount to supply.
ii. Schedule I, inter alia, stipulates that import of services by a taxable person from a related
person located outside India, without consideration is treated as supply if it is provided in
the course or furtherance of business. Explanation to section 15, inter alia, provides that
persons shall be deemed to be “related persons” if they are members of the same family.
Further, as per section 2(49), family means, —
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or
mainly dependent on the said person.
In the given case, Miss Shriniti Kaushik has received interior decoration services from her
brother. In view of section 2(49)(ii) above, Miss Shriniti and her brother shall be considered to
be related as Miss Shriniti’s brother is wholly dependent on her. However, Miss Shrinti has
taken interior decoration services for her residence and not in course or furtherance of
business. Consequently, services provided by Miss Shrinti’s brother to her would not be
treatedas supply under section 7 read with Schedule I.
iii. In the above case, if Miss Shriniti has taken interior decoration services with regard to her
business premises, services provided by Miss Shriniti’s brother to her would be treated as
supply under section 7 read with Schedule I.
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Charge under GST

Mr. Priyam, director of Sun Moon Company Private Limited, provided service to the company for
remuneration of ₹ 1,25,000. Briefly answer whether GST is applicable in the below mentioned
independent cases? If yes, who is liable to pay GST?
1. Mr. Priyam is an independent director of Sun Moon Company Private Limited and not an
employee of the company.
2. Mr. Priyam is an executive director, i.e. an employee of Sun Moon Company Private Limited.
Out of total remuneration amounting to ₹ 1,25,000, ₹ 60,000 has been declared as salaries in
the books of Sun Moon Company Private Limited and subjected to TDS under section 192 of
the Income-Tax Act (IT Act). However, ₹ 65,000 has been declared separately other than
salaries in the Sun Moon Company Private Limited’s accounts and subjected to TDS under
section 194J of the IT Act as professional services.
Answer
1. As per Para I of Schedule III of the CGST Act, services by an employee to the employer in
the course of or in relation to his employment are non-supplies, i.e. they are neither supply of
goods nor supply of services. Services provided by the independent directors who are not
employees of the said company to such company, in lieu of remuneration as the
consideration for the said services, are clearly outside the scope of Schedule III of the CGST
Act and are therefore taxable. Further, such remuneration paid to the directors is taxable in
hands of the company, on reverse charge basis.
Thus, GST is applicable in this case and Sun Moon Company Private Limited is liable to pay
GST.
2. The part of director’s remuneration which is declared as salaries in the books of a company
and subjected to TDS under section 192 of the Income-tax Act (IT Act), is not taxable being
consideration for services by an employee to the employer in the course of or in relation to
his employment in terms of Schedule III.
3. Further, the part of employee director’s remuneration which is declared separately other
than salaries in the company’s accounts and subjected to TDS under section 194J of the IT
Act as fees for professional or technical services are treated as consideration for providing
services which are outside the scope of Schedule III and is therefore, taxable. The recipient
of the said services i.e. the company, is liable to discharge the applicable GST on it on
reverse charge basis.
4. In lieu of the above provisions, ₹ 60,000 declared as salaries in the books of Sun Moon
Company Private Limited and subjected to TDS under section 192 of the Income-Tax Act (IT
Act), is not taxable being consideration for services by an employee to the employer in the
course of or in relation to his employment in terms of Schedule III.
5. Further, ₹ 65,000 declared separately other than salaries in the Sun Moon Company Private
Limited’s accounts and subjected to TDS under section 194J of the IT Act as professional
services is treated as consideration for providing services which is outside the scope of
Schedule III and is therefore, taxable. The recipient of the said services i.e. the Sun Moon
Company Private Limited, is liable to discharge the applicable GST on it on reverse charge
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basis
Mr. Vicky Frankyn, an unregistered famous author, received ₹ 3 crore of consideration from
Shiv Bhawan Publications (SBP) located in Indore for supply of services by way of temporary
transfer of a copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to
original literary works of his new book. He finished his work & made available the book to the
publisher, but has yet not raised the invoice.
Mr. Vicky Frankyn is of the view that SBP is liable to pay tax under reverse charge on services
provided by him. SBP does not concur with his view and is not ready to deposit the tax under
any circumstances.
Examine whether the view of Mr. Vicky Frankyn is correct. Further, if the view of Mr. Vicky
Frankyn is correct, what is the recourse available with Mr. Vicky Frankyn to comply with the
requirements of GST law as SBP has completely refused to deposit the tax
Answer
Yes, the view of Mr. Vicky Frankyn is correct. GST is payable under reverse charge in case of
supply of services by an author by way of transfer/permitting the use or enjoyment of a
copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to original
literary work to a publisher located in the taxable territory in terms of reverse charge
Notification No. 13/2017 CT(R) dated 28.06.2017. Therefore, in the given case, person liable to
pay tax is the publisher – SBP.
However, since SBP has completely refused to deposit the tax on the given transaction, Mr.
Vicky Frankyn has an option to pay tax under forward charge on the same. For the purpose,
he needs to fulfill the following conditions:
since he is unregistered, he has to first take registration under the CGST Act, 2017, he needs to
file a declaration, in the prescribed form, that he exercises the option to pay CGST on the
said service under forward charge in accordance with section 9(1) of the CGST Act and to
comply with all the provisions as they apply to a person liable for paying the tax in relation to
the supply of any goods and/or services and that he shall not withdraw the said option within
a period of 1 year from the date of exercising such option; he has to make a declaration on
the invoice, which he would issue to SBP, in prescribed form
State the person liable to pay GST in the following independent services provided:
1. Siddhi Builders, registered in Haryana, rented out 20 residential units owned by it in
Sanskriti Society to Rudra Technologies, an IT based firm registered in the State of
Haryana, for accommodation of its employees.
2. M/s. Purohit Consultants, a partnership firm registered in Delhi as a regular tax payer,
paid sponsorship fees of ₹ 70,000 at a seminar organized by a private NGO (a
partnership firm) in Delhi
Answer
1. Services provided by way of renting of residential dwelling for use as residence is
exempt from GST. However, where the residential dwelling is rented to a registered
person, said exemption is not available. Further, tax on service provided by way of
renting of residential dwelling to a registered person is payable by the recipient under
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reverse charge.
Therefore, in the given case, Rudra Technologies is liable to pay GST on the residential
dwellings taken on rent by it from Siddhi Builders, under reverse charge mechanism.
2. In case of services provided by any person by way of sponsorship to anybody
corporate or partnership firm, GST is liable to be paid under reverse charge by such
body corporate or partnership firm located in the taxable territory.
Since in the given case, sponsorship services are being provided by the private NGO to
a partnership firm – M/s. Purohit Consultants, GST is payable by Purohit Consultants on
said services under reverse charge
Question 15
Mr. Ajay has a registered repair center where electronic goods are repaired/serviced. His
repair center is located in State of Rajasthan and he is not engaged in making any inter-State
supply of services. His aggregate turnover in the preceding financial year (FY) is ₹ 45 lakh.
With reference to the provisions of the CGST Act, 2017, examine whether Mr. Ajay can opt for
the composition scheme under section 10(1) &10(2) in the current financial year? Or whether
he is eligible to avail benefit of composition scheme under section 10(2A)? Considering the
option of payment of tax available to Mr. Ajay, compute the amount of tax payable by him
assuming that his aggregate turnover in the current financial year is ₹ 35 lakh.
Will your answer be different if Mr. Ajay procures few items required for providing repair
services from neighboring State of Madhya Pradesh?
Answer
Section 10(1) provides that a registered person, whose aggregate turnover in the preceding
financial year did not exceed ₹ 1.5 crore (₹ 75 lakhs in Special Category States except
Assam, Himachal Pradesh and Jammu and Kashmir), may opt to pay, in lieu of the tax
payable by him, an amount calculated at the specified rates. However, as per proviso to
section 10(1), person who opts to pay tax under composition scheme may supply services
other than restaurant services, of value not exceeding 10% of the turnover in a State or Union
territory in the preceding financial year or ₹ 5 lakh, whichever is higher.
In the given case, since Mr. Ajay is an exclusive supplier of services other than restaurant
services [viz. repair services], he is not eligible for composition scheme under section 10(1) &
10(2).
However, section 10(2A) provides an option to a registered person (subject to certain

conditions) whose aggregate turnover in the preceding financial year is up to ₹ 50 lakh and
who is not eligible to pay tax under composition scheme under section 10(1) & 10(2), to pay
tax @ 3% [Effective rate 6% (CGST+ SGST/UTGST)] of the turnover of supplies of goods and
services in the State or Union territory.
Thus, in view of the above-mentioned provisions, Mr. Ajay is eligible to avail the composition
scheme under section 10(2A) as his aggregate turnover in the preceding FY does not exceed
₹ 50 lakh and he is not eligible to opt for the composition scheme under section 10(1) & 10(2).
Thus, the amount of tax payable by him as per the composition scheme under section 10(2A)
is ₹ 2,10,000 [6% of ₹ 35 lakh].
A registered person cannot opt for composition scheme under section 10(2A), if, inter alia, he
is engaged in making any inter-State outward supplies. However, there is no restriction on
inter-State procurement of goods. Hence, answer will remain the same even if Mr. Ajay
procures few items from neighboring State of Madhya Pradesh
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Question 16 PYQ May 2019
Examine in relation to composition levy scheme under section 10(1) and 10(2) of the CGST
Act, 2017 and the rules made thereunder in the following individual cases: (IMP.)
(1) Ketu is a manufacturer of ice-cream and pan masala in State of Maharashtra. His
turnover for the year does not exceed ₹ 1.5 Crore. He wants to register for composition
levy scheme. ls he eligible for it?
(2) Jadhu of Gujarat opts for composition scheme during a financial year 2022-23. But on
10-02-2023 his turnover crosses ₹ 1.5 Crore, can he continue under composition levy
scheme.
(3) X Ltd. has 2 branches K & L in Delhi, having same PAN. Both branches are separately
registered under GST Act. Branch K opts for normal scheme. X Ltd. want to continue
composition levy u/s 10(1) & 10(2) in case of its branch L. Can X Ltd. continue
composition levy only for branch L?
Answer
1) A registered person who is engaged in manufacture of, inter alia, ice cream and pan
masala, is not eligible to opt for composition levy u/s 10(1) & 10(2) even if his aggregate
turnover does not exceed ₹ 1.5 crore. Therefore, in the given case, Ketu is not eligible to
opt for composition levy u/s 10(1) & 10(2).
2) The option to pay tax under composition levy u/s 10(1) & 10(2) availed of by a
registered person lapses with effect from the day on which his aggregate turnover
during a financial year exceeds the threshold limit of ₹ 1.5 crore. He needs to pay tax
under normal scheme from that day.
Since in the given case, the turnover of Jadhu crosses ₹ 1.5 crore on 10.02.2023, he
cannot continue under composition scheme u/s 10(1) & 10(2) from that day.
3) Where person having the same Permanent Account Number, has more than one
registration, the registered person shall not be eligible to opt for composition scheme
unless all such registered persons opt to pay tax under composition scheme. In other
words, all the registrations under the same PAN have to opt for composition scheme.
In view of the same, in the given case, X Ltd. cannot continue with composition
scheme only for branch L.
Question 17_ Nov 22

Nesamani started his business activities in the month of February 2024 in the State of Orissa.
He provided the following details:
Particulars Amount in ₹
(i) Outward supply of petrol (Intra State) 4,00,000
(ii) Transfer of exempt goods to his branch in Rajasthan (Inter- State) 2,00,000
(iii) Outward supply of taxable goods by his branch in Uttar Pradesh (Intra State) 5,00,000
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(iv) Outward supply of services on which tax is payable under RCM by the 6,00,000
recipient of services (Intra-State)
(v) Inward supply of services on which tax is payable under RCM (Intra- State) 2,00,000
From the information given above, compute the aggregate turnover of Nesamani and also
decide whether he is required to get registration under GST. Assume that the amounts given
above are exclusive of taxes
Answer
Particulars Amount (₹)
Computation of aggregate turnover of Nesamani
Outward supply of petrol 4,00,000
[Supply of petrol being a non-taxable supply is an exempt supply. Value of
exempt supply is includible in aggregate
turnover.]
Inter-State stock transfer of exempt goods 2,00,000

[Supply of taxable/exempt goods between distinct persons is includible.]
Outward supply of taxable goods from Uttar Pradesh branch [Value of 5,00,000
outward supplies under same PAN are
includible.]
Outward supply of services taxable under reverse charge [Includible in 6,00,000
aggregate turnover.]
Inward supply of services taxable under reverse charge [Excludible from the --
aggregate turnover.]
Aggregate turnover 17,00,000
For a supplier engaged in supply of goods and services from the States of Orissa
and Uttar Pradesh, the threshold limit of aggregate turnover to obtain registration is
₹ 20 lakh. However, a person required to pay tax under reverse charge has to
obtain registration compulsorily irrespective of the quantum of turnover.
Since in the given case, Nesamani is required to pay tax under reverse charge, it is liable to
obtain registration compulsorily irrespective of his quantum of turnover.
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Time of Supply
Question 18
Determine the time of supply from the following particulars:
6th May Booking of convention hall, sum agreed ₹ 15000, advance of
₹ 3000 received
15th September Function held in convention hall
27th October Invoice issued for ₹ 15000, indicating balance of ₹ 12000

payable
3rd November Balance payment of ₹ 12000 received
Answer
As per section 31(2) read with rule 47 of CGST Rules, the tax invoice is to be issued within 30 days of
supply of service. In the given case, the invoice is not issued within the prescribed time limit. As per
section 13(2)(b), in a case where the invoice is not issued within the prescribed time, the time of
supply of service is the date of provision of service or receipt of payment, whichever is earlier.
Therefore, the time of supply of service to the extent of ₹ 3,000 is 6th May as the date of payment of
₹ 3000 is earlier than the date of provision of service. The time of supply of service to the extent of
the balance ₹ 12,000 is 15th September which is the date of provision of service
Question 19
Investigation shows that ABC & Co carried out service of cleaning and repairs of tanks in an
apartment complex, for which the Apartment Owners’ Association showed a payment in cash
on 4th April to them against work of this description. The dates of the work are not clear from the
records of ABC & Co. ABC & Co have not issued invoice or entered the payment in their books of
account
Answer
The time of supply cannot be determined vide the provisions of clauses (a) and (b) of section
13(2) as neither the invoice has been issued nor the date of provision of service is available as
also the date of receipt of payment in the books of the supplier is also not available. Therefore,
the time of supply will be determined vide clause (c) of section 13(2) i.e., the date on which the
recipient of service shows receipt of the service in his books of account.
Thus, time of supply will be 4th April, the date on which the Apartment Owners’ Association
records the
receipt of service in its books of account.
XYZ & Co., a firm of Chartered Accountants, issued invoice for services rendered to Mr. A on 7th
September. Determine the time of supply in the following independent cases: (IMP.)
1) The provision of service was completed on 1st August and payment was received on 28th
September.
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2) The provision of service was completed on 14th August and payment was received on 28th
September.
3) Mr. A made the payment on 3rd August. However, provision of service was remaining to be
completed at that time.
4) Mr. A made the payment on 15th September. However, provision of service was remaining
to be completed at that time
Answer
The time of supply of services is the date of issue of invoice if the same is issued within 30 days
from the date of supply of service OR the date of receipt of payment, whichever is earlier
[Section 13(2)(a)].
In case the invoice is not issued within 30 days from the date of supply of service, time of supply is
the date of provision of service OR the date of receipt of payment, whichever is earlier [Section
13(2)(b)].
In accordance with the aforesaid provisions, the time of supply in the four independent cases
will be:
1) 1st August since the invoice is not issued within 30 days of supply of service.
2) 7th September since the invoice is issued within 30 days of supply of service and the
payment is received after the issuance of invoice.
3) 3rd August viz., earlier of date of issuance of invoice (7th September) or date of receipt of
payment (3rd August)
4) 7th September viz., earlier of date of issuance of invoice (7th September) or date of receipt
of payment (15th September)
Question 21 PYQ Dec 21
An order is placed to T & Co; Sholapur on 18th August, 2023 for supply of fabrics to make
garments. Company delivered the fabrics on 4th September, 2023 and after completion of the
order issued the invoice on 15th September, 2023. The payment against the same was received
on 30th September, 2023. Determine the time of supply for the purpose of payment under CGST
Act, 2017 with your explanations.
HM Industries Ltd. engaged the services of a transporter for road transport of a consignment on
20th May, 2023. However, the consignment could not be sent immediately on account of a strike
in the factory, and instead was sent on 20th July 2023. Invoice was received from the transporter
on 20th June 2023 and payment was made on 25th August 2023. What is the time of supply of
the transporter’s service assuming it has not opted for payment of tax under forward charge?
Answer
The time of supply of goods (where movement of goods involve) (fabric) for the purpose of
payment of tax is the date of issue of invoice or the last date when the invoice ought to have
been issued.
Further, a registered person is required to issue a tax invoice before or at the time of delivery of
goods or making available thereof to the recipient.
Thus, in the given case, time of supply is 4th September, 2023
Tax on supply of transportation of goods by road services provided by a Goods Transport

Agency (GTA) to a body corporate is payable under reverse charge by such body corporate.
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Time of supply of services taxable under reverse charge is earliest of: -
• date of making payment, or
• 61st day from the date of issue of invoice by supplier
Thus, in the given case, time of supply is earlier of
• 25th August or
• 20th August 2021 (61st day from 20th June)
Thus, in the given case, time of supply 20th August 2023
Question 22 MTP
Modern Security Co. provides service of testing of electronic devices. In one case, it tested a
batch of devices on 4th and 5th September but could not raise invoice till 19th November
because of some dispute about the condition of the devices on return. The payment was made
in December. What is the method to fix the time of supply of the service
Answer
The time of supply of services, if the invoice is not issued in time, is the date of payment or the
date of provision of service, whichever is earlier [Section 13(2)(b)]. In this case, the service is
provided on 5th September but not invoiced within the prescribed time limit. Therefore, 5 the
September, the date of provision of service, being earlier than the date of payment, will be the
time of supply.
Question 23 RTP 18
Royal Fashions, a registered supplier of designer outfits in Delhi, decides to exhibit its products in
a Fashion Show being organised at Hotel Park Royal, Delhi on 4th January, 20XX. For the
occasion, it gets the makeover of its models done by Aura Beauty Services Ltd., Ashok Vihar, for
which a consideration is ₹ 5,00,000 (excluding GST) has been charged. Aura Beauty Services
Ltd. issued a duly signed tax invoice on 10th February, 20XX showing the lumpsum amount of ₹
5,90,000 inclusive of CGST and SGST @ 9% each. Royal Fashions made the payment the very next
day. Answer the following questions:
Examine whether the tax invoice has been issued within the time limit prescribed under law?
Tax consultant of Royal Fashions objected to the invoice raised suggesting that the amount of
tax charged in respect of the taxable supply should be shown separately in the invoice raised
by Aura Beauty Services Ltd. However, Aura Beauty Services Ltd. contended that there is no
mandatory requirement of showing tax component separately in the invoice. You are required
to examine the validity of the objection raised by tax consultant of Royal Fashions?
Answer
As per section 31 of the CGST Act, 2017 read with the CGST Rules, 2017, in case of taxable
supply of services, invoices should be issued before or after the provision of service, but within a
period of 30 days [45 days in case of insurer/ banking company or financial institutions including
NBFCs] from the date of supply of service. In view of said provisions, in the present case, the tax
invoice should have been issued in the prescribed time limit of 30 days from the date of supply
of service i.e. upto 03.02.20XX. However, the invoice has been issued on 10.02.20XX.
In such a case, the time of supply as per section 13 of the CGST Act, 2017 would be 04.01.20XX
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i.e. earliest of the following:
Date of provision of service (04.01.20XX) Date of receipt of payment (11.02.20XX)
Section 31 of the CGST Act, 2017 read with the CGST Rules, 2017, inter alia, provides that tax
invoice shall contain the following particulars-
Total value of supply of goods or services or both;
Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
Amount of tax charged in respect of taxable goods or services (central tax, State tax,
integrated tax, Union territory tax or cess);
The objection raised by the tax consultant of Royal Fashions suggesting that the amount of tax
charged in respect of the taxable supply should be shown separately in the invoice raised by
Aura Beauty Services Ltd., is valid in law. In the present case, the tax amount has not been
shown separately in the invoice.
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Exemptions
AB Ltd., a registered company of Chennai, Tamil Nadu has provided following services for the
month of October, 2021
Services of transportation of students, faculty and staff from home to 2,50,000

college and back to Commerce College, (a private college) providing
degree courses in BBA, MBA, B.Com., M.Com.
Online monthly magazine containing question bank and latest updates in 1,00,000
law to students of PQR Law College offering degree courses in LLB and LLM
Housekeeping services to T Coaching Institute 50,000
Security services to N Higher Secondary School 3,25,000
Services of providing breakfast, lunch and dinner to students of ABC 5,80,000

Medical College offering degree courses recognized by law in medical
field
All the above amounts are exclusive of GST
Compute the taxable supplies of AB Ltd. for the month of October 2021 with necessary
explanations
Answer
Computation of value of taxable supplies of AB Ltd
Services of transportation of students, faculty and staff from home to 2,50,000

Commerce college
[Not exempt, since transportation services provided to an educational

institution are exempt only if such institution provides pre-school
education or education up to higher secondary school or equivalent.]
Online monthly magazine to students of PQR Law College Nil
[Services of supply of online educational journals provided to an

educational institution providing qualification recognized by law are
exempt.]
Housekeeping services to T Coaching Institute [Not exempt] 50,000
Security services to N Higher Secondary School Nil
[Security services provided to an educational institution providing

education up to higher secondary school are exempt.]
Services of providing breakfast, lunch and dinner to students of ABC 5,80,000

Medical College
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5,80,000
[Not exempt, since catering services provided to an educational

institution are exempt only if such institution provides pre-school
education or education up to higher secondary school or equivalent]
Value of taxable supplies 8,80,000
Gita Services Limited, registered under GST, is engaged in providing various services to
Government. The company provides the following information in respect of services provided
during the month of April
1 Supply of manpower for cleanliness of roads not involving any supply of goods.
2 Service provided by Fair Price Shops owned by Gita Services Limited by way of sale
of sugar under Public Distribution System against consideration in the form of
commission
3 Service of maintenance of street lights in a Municipal area involving replacement of

defunct lights and other spares alongwith maintenance. Generally replacement of
defunct lights and other spares constitutes 35% of the supply of service
4 Service of brochure distribution provided under a training programme for which 70%
of the total expenditure is borne by the Government
Comment on the taxability or otherwise of the above transactions under GST law. Also state the
correct legal provisions for the same.
Answer
1 Supply of manpower for cleanliness of roads not involving any supply Exempt
of goods.
[Pure services provided to Government are exempt.]
2 Service provided by Fair Price Shops by way of sale of sugar under Exempt
Public Distribution System
[Service provided by Fair Price Shops to Government by way of sale of

sugar under Public Distribution System against consideration in the form
of commission is exempt.]
3 Service of maintenance of street lights in a Municipal area involving Taxable

replacement of defunct lights and other spares constituting 35% of the
supply of service.
[Composite supply of goods and services to Government in which the

value of supply of goods constitutes not more than 25% of the value of
the said composite supply is exempt. Since, in this case value of supply
of goods constitutes 35% of the supply of composite service, same is
taxable.]
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4 Service of brochure distribution provided under a training programme. Taxable
[Services provided to the Government under any training programme

for which 75% or more of the total expenditure is borne by the
Government is exempt. Since in the given case, 70% of the total
expenditure is borne by the Government, it is taxable.]
Mr. Shyam Das was admitted to Suraksha Hospital in Mumbai for 2 days in relation to diagnosis
of removal of stones from his kidney. For the said services, Surkasha hospital charged following
from Mr. Das:
(i) Room rent 7,000 per day for 2 days.
(ii) Operation theatre charges 5,000
(iii) Doctors Consultation Charges $8,000
(iv) Other services 4,000
In each of the above scenario explain whether Suraksha Hospital should levy GST or not in line
with the relevant provisions of the GST laws.
Answer
Health care services by a clinical establishment are exempt from GST.
However, services provided by a clinical establishment by way of providing room having room
charges exceeding 5,000 per day to a person receiving health care services are not exempt.
In view of the same, only the room rent of 14,000 (7,000 per day × 2 days) is liable to GST.
Other than room rent, all other nature of services provided by Suraksha Hospital are exempt
from GST.
State the person liable to pay GST in the following independent services provided:
(i) Siddhi Builders, registered in Haryana, rented out 20 residential units owned by it in
Sanskriti Society to Rudra Technologies, an IT based firm registered in the State of
Haryana, for accommodation of its employees.
(ii) M/s. Purohit Consultants, a partnership firm registered in Delhi as a regular tax payer, paid
sponsorship fees of 70,000 at a seminar organized by a private NGO (a partnership firm)
in Delhi.
Answer
(i) Services provided by way of renting of residential dwelling for use as residence is exempt
from GST. However, where the residential dwelling is rented to a registered person, said
exemption is not available. Further, tax on service provided by way of renting of
residential dwelling to a registered person is payable by the recipient under reverse
charge.
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Therefore, in the given case, Rudra Technologies is liable to pay GST on the residential
dwellings taken on rent by it from Siddhi Builders, under reverse charge mechanism.
(ii) In case of services provided by any person by way of sponsorship to any body corporate
or partnership firm, GST is liable to be paid under reverse charge by such body corporate
or partnership firm located in the taxable territory.
Since in the given case, sponsorship services are being provided by the private NGO to a
partnership firm - M/s. Purohit Consultants, GST is payable by Purohit Consultants on said
services under reverse charge.
Question 28
Satya Sai Residents Welfare Association, a registered person under GST has 30 members each
paying Rs. 8,000 as maintenance charges per month for sourcing of goods and services from
third persons for common use of its members.
The Association purchased a water pump for Rs. 59,000 (inclusive of GST of Rs. 9,000) and
availed input services for Rs. 23,600 (inclusive of GST of Rs. 3,600) for common use of its
members during February 2020.
Compute the total GST payable, if any, by Satya Sai Residents Welfare Association, for February
2020. GST rate is 18%. All transactions are intra-State.
There is no opening ITC and all conditions for ITC are fulfilled.
Answer
Computation of total GST payable by Satya Sai Residents Welfare Association
Particulars Value GST@18%

(Rs.) (Rs.)
Maintenance charges received 2,40,000
[Rs. 8,000 × 30 members]
[Services by RWA to its members for sourcing of goods or services
from a third person for the common use of its members in a
housing society are exempt provided the share of contribution per
month per member is upto Rs. 7,500. Otherwise, entire amount is
taxable.]
Total GST payable [It has been logically presumed that 43,200
maintenance charges are exclusive of GST.]
While paying the GST liability Satya Sai RWA can utilize the available ITC.
Question 29 MTP 22
Determine the GST payable, if any, in each of the following independent cases, assuming that
the rate of GST is 18% and that the service providers are registered under GST:
(i) Bollywood dance performance by a film actor in a film and consideration charged is ₹
1,45,000.
(ii) Carnatic music performance by a classical singer to promote a brand of readymade

garments and consideration charged is ₹ 1,30,000.
(iii) Carnatic music performance by a classical singer in a music concert and consideration
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charged is ₹ 1,55,000.
(iv) Kathak dance performance by a classical dancer in a cultural programme and

consideration charged is ₹ 1,45,000.
Answer
(i) Bollywood Dance performance by a film actor in a film is not exempt from GST even
though the consideration charged is less than threshold limit of ₹ 1,50,000. The reason for
the same is that the dance performance by an artist is exempt only if it is a performance
in folk or classical art forms of dance. Consequently, entire consideration charged is
subject to GST as follows:
= ₹ 1,45,000 × 18% = ₹ 26,100
(ii) Carnatic music performance by a classical singer to promote a brand of readymade

garments is not exempt from GST even though, the consideration charged is less than
threshold limit of ₹ 1,50,000 and it is a performance in classical art forms of music. The
reason for the same is that the said exemption is not applicable to service provided by
such artist as a brand ambassador. Consequently, entire consideration charged is
subject to GST as follows:
= ₹ 1,30,000 × 18% = ₹ 23,400
(iii) Carnatic music performance by a classical singer in a music concert is not exempt from
GST even though it is a performance in classical art forms of music. The reason for the
same is the consideration charged for the service exceeds ₹ 1,50,000. Consequently,
entire consideration charged is subject to GST as follows:
= ₹ 1,55,000 × 18% = ₹ 27,900
(iv) Kathak dance performance by a classical dancer in a cultural programme is exempt

from GST as it is a performance in classical art forms of dance and consideration
charged does not exceed ₹ 1,50,000 [i.e. ₹ 1,45,000].
Question 30 Mixed
Sungrow Pvt. Ltd. (a registered taxable person) having the gross receipt of Rs. 50 lakh in the
previous financial year provides the following information relating to their services for the month
of July, 2023
Sr. Particulars Amount (Rs.)
No.
(1) Running a boarding school 2,40,000
(2) Fees from prospective employer for campus interview 1,70,000
(3) Education services for obtaining the qualification recognised by 3,10,000

law of foreign country
(4) Renting of furnished flats for temporary stay to different persons 1,20,000
(Rent per day is less than Rs. 1,000 per flat)

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(5) Conducting Modular Employable Skill Course, approved by 1,40,000
National Council of Vocational Training
(6) Conducting private tuitions amount 3,00,000
(7) Running martial arts academy for young children 55,000
(8) Conducting career counselling session 1,65,000
(9) Amount charged for loading, unloading, packing and warehousing

25,000
of potato chips
(10) Fees charged for yoga camp conducted by a charitable trust 50,000
registered under section 12AA of the Income-tax Act, 1961
(11) Amount charged by business correspondent for the services 1,00,000

provided to
the rural branch of a bank with respect to Savings Bank Accounts
(12) Amount charged by cord blood bank for preservation of stem 5,00,000
cells
(13) Amount charged for service provided by commentator to a 6,00,000

recognized
sports body
(14) Amount charged for service provided by way of right to 12,000
admission to circus
where consideration for the same is Rs. 750 per person.
Answer
Computation of value of taxable supply
S.No. Particulars Rs.
(1) Running a boarding school Nil
[Services provided by an educational institution to its students, faculty and

staff are exempt.]
(2) Fees from prospective employer for campus interview 1,70,000
[Not exempt]
(3) Education services for obtaining the qualification recognised by law of 3,10,000
foreign country
[An institution providing education services for obtaining qualification

recognized by a foreign country does not qualify as educational institution.
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Thus, said services are not exempt.]
(4) Renting of furnished flats for temporary stay of different persons Nil
[Services by a hotel, inn, guest house, club or campsite, by whatever name

called, for residential or lodging purposes, having Value of Supply of a unit
of accommodation below Rs. 1,000 per day or equivalent are exempt]
As per amendment, notification dated 18.07.2022 Services by a hotel, inn,

guest house, club or campsite, by whatever name called, for residential or
lodging purposes, having value of supply of a unit of accommodation
below or equal to Rs 1,000 per day or equivalent is removed from the
exemption list and is now taxable.
(5) Conducting Modular Employable Skill Course Nil

[An institution providing Modular Employable Skill Course qualifies as
educational institution. Services provided by an educational institution to its
students, faculty and staff are exempt.]
(6) Conducting private tuitions 3,00,000
[Not exempt.]
(7) Running martial arts academy for young children [Not exempt under GST 55,000
laws]
(8) Conducting career counselling session [Not exempt under GST laws] 1,65,000
(9) Amount charged for loading, unloading, packing and warehousing of 25,000
potato chips
(10) Fees charged for yoga camp conducted by a charitable trust registered Nil
under section 12AA of the Income-tax Act, 1961
(11) Amount charged by business correspondent for the services provided to Nil
the rural branch of a bank with respect to Savings Bank Accounts
(12) Amount charged by cord blood bank for preservation of stem cells 5,00,000
(13) Service provided by commentator to a recognized sports body 6,00,000
(14) Amount charged for service provided by way of right to admission to circus 12,000
where consideration for the same is Rs. 750 per person.
Question 31 MTP 23
Services provided by an entity registered under section 12AB of the Income-tax Act, 1961 are
exempt from GST if such services are provided by way of charitable activities. Elaborate the
term ‘charitable activities’.
Answer
The term ‘charitable activities’ mean activities relating to-
(i) public health by way of-
(A) care or counseling of

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(I) terminally ill persons or persons with severe physical or mental disability;
(II) persons afflicted with HIV or AIDS;
(III) persons addicted to a dependence-forming substance such as narcotics drugs or

alcohol; or
(B) public awareness of preventive health, family planning or prevention of HIV

infection;
(ii) advancement of religion, spirituality or yoga;
(iii) advancement of educational programmes/skill development relating to,-
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests & wildlife

Question 32 RTP 23
Determine whether GST is payable in each of the following independent transactions:
(i) Dhruv Developers sold a plot of land in Greater Noida after levelling, laying down of
drainage lines, water lines and electricity lines.
(ii) Deccan Shipping Pvt. Ltd., registered under GST in Andaman and Nicobar islands,
provided the passenger transportation services to the local residents in the ferries
owned by it from Neil Island to Havelock Island.
Answer
(i) GST is not payable by Dhruv Developers on sale of plot of land . Circular No.
177/09/2022 GST dated 03.08.2022 clarifies applicability of GST on sale of land after
levelling, laying down of drainage lines etc. As per Para 5 of Schedule III of the CGST
Act, 2017, ‘sale of land’ is neither a supply of goods nor a supply of services. Therefore,
the sale of land does not attract GST. Land may be sold either as it is or after some
development such as levelling, laying down of drainage lines, water lines, electricity
lines, etc. It is clarified that sale of such developed land is also sale of land and is
covered by Para 5 of Schedule III and accordingly, does not attract GST.
(ii) Transportation of passenger services provided by the private operator - Deccan

Shipping Pvt. Ltd. - are exempt from GST. Circular No. 177/09/2022 GST dated 03.08.2022
clarifies the applicability of GST on private ferry tickets. Transportation of passengers by
public transport, other than predominantly for tourism purpose, in a vessel between
places located in India is exempt from GST vide Notification No. 12/2017 CT (R) dated
28.06.2017. It is clarified that this exemption would apply to tickets purchased for
transportation from one point to another irrespective of whether the ferry is owned or
operated by a private sector enterprise or by a PSU/Government.
It is further clarified that, the expression ‘public transport’ used in the said exemption
notification only means that the transport should be open to public. It can be privately
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or publicly owned. Only exclusion is on transportation which is predominantly for
tourism, such as services which may combine with transportation, sightseeing, food and
beverages, music, accommodation such as in shikara, cruise etc.
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Input Tax Credit
Question 33
Babla & Bros. is exclusively engaged in making exempt supply of goods and is thus, not
registered under GST. On 1st October, the exemption available on its goods gets withdrawn. On
that day, the turnover of Babla & Bros. was ₹ 50 lakh. Examine the eligibility of Babla & Bros. for
availing ITC, if any.
Mamta Sales trades in exempt goods and provides taxable services. It is registered under GST.
On 1st October, the exemption available on its goods gets withdrawn
Analyze the scenario and determine the eligibility of Mamta Sales for availing ITC, if any, on
inputs and/or capital goods used in the supply of exempt goods
Answer
Since the exemption available on goods being supplied by Babla & Bros. is withdrawn, it
becomes liable to registration as its turnover has crossed the threshold limit (for registration) on
the day when the exemption is withdrawn.
Assuming that Babla & Bros. applies for registration within 30 days of 1st October and it obtains
such registration, it will be entitled to take credit of input tax in respect of inputs held in stock and
inputs contained in semi-finished or finished goods held in stock on the day immediately
preceding the date from which it becomes liable to pay tax, i.e. 30th September [Section
18(1)(a) of the CGST Act, 2017]. Input tax paid on capital goods will not be available as input tax
credit in this case.
If the exempt supply made by a registered person becomes a taxable supply, provisions of
section 18(1)(d) of the CGST Act, 2017 become applicable. In the given case, since Mamta
Sales is a registered person, section 18(1)(d) will be applicable. As per section 18(1)(d), Mamta
Sales will be entitled to take credit of input tax in respect of inputs held in stock and inputs
contained in semi-finished or finished goods held in stock relatable to such exempt supply and
on capital goods exclusively used for such exempt supply on the day immediately preceding
the date from which such supply becomes taxable, i.e. 30th September. Input tax credit on
capital goods will be reduced by 5% per quarter or part thereof from the date of invoice
Question 34
Cloud Seven Private Limited, a registered supplier, is engaged in the manufacture of taxable
goods. The company provides the following information pertaining to GST paid on the
purchases made/input services availed by it during February, 20XX
SN Particulars GST paid (Rs)

(i) Trucks used for the transport of raw material 1,20,000
(ii) Foods & beverages for consumption of employees in the factory 40,000
(iii) Inputs are to be received in five lots, out of which third lot was 80,000
received during the month
(iv) Membership of a club availed for employees working in the factory 1,50,000
(v) Capital goods (out of five items, invoice for one item was missing 4,00,000
and GST paid on that item was Rs 50,000)
(vi) Raw material (to be received in March, 20XX) 1,50,000
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Determine the amount of input tax credit available with Cloud Seven Private Limited for the
month of February, 20XX by giving necessary explanations for treatment of various items. All
the conditions necessary for availing the input tax credit have been fulfilled.
Answer
Particulars Rs
Trucks used for the transport of raw material [Note-1] 1,20,000
Foods & beverages for consumption of employees in the factory [Note-2] Nil
Inputs are to be received in five lots, out of which third lot was received during Nil
the month [Note-3]
Membership of a club availed for employees working in the factory [Note-4] Nil
Capital goods (out of five items, invoice for one item was missing and GST 3,50,000
paid on that item was Rs 50,000) [Note-5]
Raw material to be received in March, 20XX [Note-6] Nil

Total ITC 4,70,000
Notes:-
1. ITC on motor vehicles is disallowed in terms of section 17(5) of the CGST Act, 2017,
except when they are used inter alia, for transportation of goods.
2. ITC on food or beverages is specifically disallowed unless the same is used for making
outward taxable supply of the same category or as an element of the taxable composite
or mixed supply- [Section 17(5)].
3. When inputs are received in instalments, ITC can be availed only on receipt of last
installment- [Section 16(2)].
4. Membership of a club is specifically disallowed under section 17(5) of the CGST Act,
2017.
5. ITC cannot be taken on missing invoice. The registered person should have the invoice in
its possession to claim ITC [Section 16(2) of CGST Act, 2017].
6. Input tax credit is available only upon the receipt of goods in terms of section 16(2) of
CGST Act, 2017
Question 35
Mr. Nimit, a supplier of goods, pays GST under regular scheme. He is not eligible for any
threshold exemption. He has made the following outward taxable supplies in the month of
August, 20XX
Particulars Amount
Intra-State supply of goods 6,00,000
Inter-State supply of goods 2,00,000

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He has also furnished following information in respect of purchases made by him from
registered dealers during August, 20XX
Particulars Amount
Intra-State purchase of goods 4,00,000
Inter-State purchase of goods 50,000
Balance of ITC available at the beginning of; August 20XX
Particulars Amount
CGST 15,000
SGST 35,000
IGST 20,000
Note - Rate of CGST, SGST and IGST to be 9%, 9% and 18% respectively, on both inward and
outward supplies. Both inward and outward supplies given above are exclusive of taxes,
wherever applicable.
All the conditions necessary for availing the ITC have been fulfilled.
Compute the minimum GST payable through cash ledger by Mr. Nimit for the month of
August, 20XX
Answer
Computation of GST payable by Mr. Nimit on outward supplies
S No. Particulars CGST SGST IGST
(i) Intra-State supply of goods (9% on ₹ 6,00,000) 54,000 54,000 Nil
(ii) Inter-State supply of goods (18% on ₹ 2,00,000) Nil Nil 36,000
Total 54,000 54,000 36,000
Computation of Total ITC
Particulars CGST SGST IGST

Opening ITC 15,000 35,000 20,000
Add; - ITC on Intra-State purchase of goods valuing ₹ 4L 36,000 36,000 Nil
Add; - ITC on Inter-State purchase of goods valuing ₹ 50,000 Nil Nil 9,000
Total ITC 51,000 71,000 29,000
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Computation of minimum GST payable from Cash Ledger
Output GST payable 54,000 54,000 36,000
Step 1: - Adjustment of IGST credit against IGST output - - (29,000)

tax liability
Step 2: - Adjustment of CGST credit against CGST (51,000) - -

output tax liability
Step 3: - Adjustment of SGST credit against SGST - (54,000) -

output tax liability
Step 4: -Adjustment of unutilized SGST credit against - - (7,000)

output IGST
Net GST payable through cash ledger 3,000 Nil Nil
ITC to be carried forward Nil 10,000
Question 36 RTP 18
Granites Textiles Ltd. purchased a needle detecting machine on 8th July, 2022 from Makhija
Engineering Works Ltd. for ₹ 10,00,000 (excluding GST) paying GST @ 18% on the same. It
availed the ITC of the GST paid on the machine and started using it for manufacture of
goods. The machine was sold on 22nd October, 2023 for ₹ 7,50,000 (excluding GST), as
second hand machine to LT. Pvt. Ltd. The GST rate on supply of machine is 18%.
State the action which Granites Textiles Ltd. is required to take, if any, in accordance with the
statutory GST provisions on the sale of the second-hand machine.
Answer
Section 18 of the CGST Act, 2017 read with the CGST Rules, 2017 provides that if capital
goods or plant and machinery on which input tax credit has been taken are supplied
outward by the registered person, he must pay an amount that is the higher of the following:
(a) input tax credit taken on such goods reduced by 5% per quarter of a year or part thereof
from the date of issue of invoice for such goods (i.e., input tax credit pertaining to
remaining useful life of the capital goods), or
(b) tax on transaction value.
Accordingly, the amount payable on supply of needle detecting machine shall be

computed as follows:
Particulars ₹ ₹
Input tax credit taken on the machine (₹ 10,00,000 × 18%) 1,80,000
Less: Input tax credit to be reversed @ 5% per quarter for the period
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of use of machine
(i) For the year 2017-18 = (₹ 1,80,000 × 5%) × 3 quarters 27,000
(ii) For the year 2018-19 = (₹ 1,80,000 × 5%) × 3 quarters 27,000 54,000
Amount required to be paid (A) 1,26,000
Duty leviable on transaction value (₹ 7,50,000 × 18%) (B) 1,35,000
Amount payable towards disposal of machine is higher of 1,35,000
(A) and (B)

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Registration under GST
Examine whether the supplier of goods is liable to get registered in the following independent
cases:
(i) Raghav of Assam is exclusively engaged in intra-State taxable supply of readymade garments.
His turnover in the current financial year (FY) from Assam showroom is ₹ 33 lakh. He has another
showroom in Tripura with a turnover of ₹ 11 lakh in the current FY. (IMP.)
(ii) Pulkit of Panjim, Goa is exclusively engaged in intra-State taxable supply of shoes. His
aggregate turnover in the current financial year is ₹ 22 lakh.
(iii) Harshit of Himachal Pradesh is exclusively engaged in intra-State supply of pan masala. His
aggregate turnover in the current financial year is ₹ 24 lakh.
Answer
As per section 22 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier is liable to be
registered in the State/Union territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit
for a person making exclusive intra-State taxable supplies of goods is as under: -
a) ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
b) ₹ 20 lakh for the States, namely, States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim,
Telangana and Uttarakhand.
c) ₹ 40 lakh for rest of India except persons engaged in making supplies of ice cream and other
edible ice, whether or not containing cocoa, Pan masala and Tobacco and manufactured
tobacco substitutes.
In the light of the afore-mentioned provisions, the answer to the independent cases is as under: -
(i) Raghav is eligible for higher threshold limit of turnover for registration, i.e. ₹ 40 lakh as he is
exclusively engaged in intra-State supply of goods. However, since Raghav is engaged in
supplying readymade garments from a Special Category State i.e. Tripura, the threshold limit
gets reduced to ₹ 10 lakh. Thus, Raghav is liable to get registered under GST as his turnover
exceeds ₹10 lakh. Further, he is required to obtain registration in both Assam and Tripura as he
is making taxable supplies from both the States.
(ii) The applicable threshold limit for registration for Pulkit in the given case is ₹ 40 lakh as he is
exclusively engaged in intra-State taxable supply of goods in Goa. Thus, he is not liable to get
registered under GST as his turnover is less than the threshold limit.
(iii) Harshit being exclusively engaged in supply of pan masala is not eligible for higher threshold
limit of ₹40 lakh. The applicable threshold limit for registration in this case is ₹20 lakh. Thus,
Harshit is liable to get registered under GST
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M/s Siya Ram is a trader of decorative items in Hauz Khas, Delhi. His aggregate turnover
exceeded ₹ 20 lakh in the month of October, 20XX. He applied for registration on GST portal, but
missed to submit the details of his bank account. His tax consultant advised him that prior
submission of bank details is mandatory to obtain registration. Examine whether the advice of
Mr. Siya Ram’s tax consultant is correct.
Answer
The advice of Mr. Siya Ram’s consultant that prior submission of bank details is mandatory to
obtain registration is not valid in law. Rule 10A of CGST Rules, 2017 allows the registered person to
furnish information with respect to details of bank account, or any other information, as may be
required on the common portal in order to comply with any other provision, soon after obtaining
certificate of registration and a GSTIN, but not later than: -
45 days from the date of grant of registration or
the date on which the return required under section 39 is due to be furnished, whichever is
earlier.
This relaxation is however not available for those who have been granted registration as TDS
deductor / TCS collector under rule 12 or who have obtained suo-moto registration under rule 16
Question 39
Mr. Q, a casual taxable person of Gujarat state is a trader of taxable notified handicraft goods. It
makes supplies to the states of Maharashtra, Rajasthan and Andhra Pradesh. Turnover for
October, 2023 is ₹ 18 Lakh.
Explain the provisions of registration for casual taxable person under GST. Examine whether Mr.
Q is liable for registration or not?
What will be the answer if Mr. Q makes trading in taxable notified products instead of taxable
notified handicraft goods which involves 75% making on machine and 25% by hand?
Answer
A casual taxable person is required to obtain compulsory registration under GST irrespective of
the quantum of its aggregate turnover. However, a threshold limit of ₹ 20 lakh (₹ 10 lakhs in case
of specified Special Category States) is available for registration to a casual taxable person
who:
is making inter-State taxable supplies of notified handicraft goods and notified hand-made
goods, is availing the benefit of exemption from registration available to inter-State supply of
above-mentioned goods up to the aggregate turnover of ₹ 20 lakh (₹ 10 lakhs in case of
specified Special Category States), and has obtained a PAN and has generated an e-way bill.
In the given case, since Mr. Q is engaged in supplying notified handicraft goods and its
aggregate turnover6 does not exceed ₹ 20 lakh, he will not be liable to registration provided he
fulfills other conditions specified herein.
In case Mr. Q is engaged in trading of notified products which are predominantly made by
machine, he will not be eligible for the exemption from registration under aforesaid provisions
and needs to take compulsory (mandatory) registration.
Super 75
Briefly enumerate the contraventions which make a registered person liable to cancellation of
registration, as prescribed under rule 21 of the CGST Rules, 2017
Answer
Rule 21 of the CGST Rules, 2017 prescribes the contraventions which make a registered person
liable to cancellation of registration. As per said rule, the registration granted to a person is liable
to be cancelled, if the said person
(a) the business has been discontinued, transferred fully for any reason including death of the
proprietor, amalgamated with other legal entity, demerged or otherwise disposed of;
(b) (b) there is any change in the constitution of the business;
(c) does not conduct any business from the declared place of business;
(d) issues invoice/bill without supply of goods/services in violation of the provisions of this Act, or
the rules made thereunder.
(e) violates the provisions of section 171 of the CGST Act. Section 171 contains provisions
relating to anti-profeetering measure.
(f) violates the provision of rule 10A of the CGST Rules relating to furnishing of bank account
details;
(g) a person paying tax under section 10 has not furnished returns for 3 consecutive tax periods
(Amendment -the return for a financial year beyond 3 months from the due date of
furnishing the said return)
(h) any registered person, other than a person specified above, has not furnished returns for a
continuous period of six months such continuous tax period as may be prescribed
(i) avails input tax credit in violation of the provisions of section 16 of the CGST Act or the rules
made thereunder.

Batra Ltd., a normal taxpayer, is winding up its business in Rajkot. The Tax Consultant of Batra Ltd.
has suggested that Batra Ltd. will have to file either the annual return or the final return at the
time of voluntary cancellation of registration in the State of Rajkot.
Do you agree with the stand taken by Tax Consultant of Batra Ltd.? Offer your comments. Ignore
the aggregate turnover of Batra Ltd
Answer
No, the stand taken by Tax Consultant of Batra Ltd. is not correct.
Annual return is required to be filed by every registered person paying tax as a normal taxpayer.
Final return is filed by the registered persons who have applied for cancellation of registration
within three months of the date of cancellation or the date of cancellation order.
In the given case, Batra Ltd., a registered person, is winding up its business and has thus, applied
for cancellation of registration. Therefore, it is required to file both annual return and final return.

Mr. X of Haryana intends to start business of supply of building material to various construction
sites in Haryana. He has taken voluntary registration under GST in the month of April. However,
he has not commenced the business till December due to lack of working capital. The proper
officer suo-motu cancelled the registration of Mr. X. You are required to examine whether the
action taken by proper officer is valid in law?
Mr. X has applied for revocation of cancellation of registration after 100 days from the date of
service of the order of cancellation of registration. Department contends that application for
Super 75
revocation of cancellation of registration can only be made within 90 days from the date of
service of the order of cancellation of registration. However, Mr. X contends that the period of
submission of application may be extended on sufficient grounds being shown. You are required
to comment upon the validity of contentions raised by Department and Mr. X.
Answer
As per section 29 of the CGST Act, 2017, the proper officer may cancel the registration of a
person from such date, including any retrospective date, as he may deem fit, where,-
(a) a registered person has contravened such provisions of the Act or the rules made
thereunder as may be prescribed; or
(b) a person paying tax under composition scheme has not furnished returns for three
consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns
for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not
commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement, or suppression of
facts:
Thus, in view of the above-mentioned provisions, suo-motu cancellation of registration of Mr. X

by proper officer is valid in law since Mr. X, a voluntarily registered person, has not commenced
his business within 6 months from the date of registration.
Further, where the registration of a person cancelled suo-motu by the proper officer, such
registered person may apply for revocation of the cancellation to such proper officer, within 90
days from the date of service of the order of cancellation of registration.
However, the said period of 30 days may, on sufficient cause being shown and for reasons to be
recorded in writing, be extended for a period not exceeding 180 days by Commissioner.
Thus, considering the above provisions, the contention of Department is not valid in law as
extension can be sought in the prescribed time limit for revocation of cancellation of
registration.
The contention raised by Mr. X is valid in law as extension in time limit is allowed on sufficient
cause being shown and for reasons to be recorded in writing.
Question 43
Answer the following questions with respect to casual taxable person (CTP) and Non-resident
taxable person (NRTP) under the CGST Act, 2017: -
a) Who is CTP & NRTP?
b) Can a casual taxable person opt for the composition scheme?
c) When is the CTP & NRTP liable to get registered?
d) Is PAN being mandatory for registration of CTP and NRTP?
e) What is the validity period of the registration certificate issued to a CTP and NRTP?
f) Can the validity of registration certificate issued to a CTP and NRTP be extended? If yes,
what will be the period of extension?
Super 75
Answer
(a) As per section 2(20) of CGST Act, 2017, Casual taxable person means a person- who
occasionally undertakes transactions involving supply of goods and/or services,
1. in the course or furtherance of business, whether as principal, agent or in any other
capacity - in a State/UT where he has no fixed place of business.
2. As per section 2(77) of CGST Act, 2017, Non-resident taxable person means a person-
a. Who occasionally undertakes transactions involving supply of goods and/or
services,
b. Whether as principal, agent or in any other capacity,
c. but who has no fixed place of business or residence in India
(b) No, a casual taxable person cannot opt for the composition scheme
(c) As per section 24 of CGST Act, 2017, a casual taxable person (CTP) is liable to obtain
registration compulsorily under GST law.
CTP has to apply for registration at least 5 days prior to commencement of business as
per section 25(1) read with proviso thereto.
However, if CTP is making taxable supplies of specified handicraft goods, then it is
eligible for the threshold limit applicable as per section 22.
Whereas non-resident taxable person, should apply for registration at least 5 days prior to
the commencement of business irrespective of the threshold limit
(d) Yes, PAN is being mandatory for registration of casual taxable person. However, PAN is
not mandatory for registration of non-resident taxable person.
He has to submit a self-attested copy of his valid passport along with the application
signed by his authorized signatory who is an Indian Resident having valid PAN.
However, in case of a business entity incorporated or established outside India, the
application for registration shall be submitted along with its tax identification number or
unique number on the basis of which the entity is identified by the Government of that
country or its PAN, if available
(e) As per section 27(1) of CGST Act read with proviso thereto, Registration Certificate
granted to a casual taxable person & non-resident taxable person will be valid for earlier
of:-
a. period specified in the application for registration or
b. period of 90 days from the effective date of registration.
However, at the request of the said taxable person, the proper officer may extend the
validity by a further period not exceeding 90 days
(f) Yes, the validity of registration certificate issued to a casual taxable person and non-
resident taxable person can be extended.
It can be extended by a further period not exceeding 90 days by making application
before the end of period of validity of registration granted to him.
Super 75
Question 44 PYQ 20
BBD Pvt. Ltd. of Gujarat exclusively manufactures and sells product 'Z' which is exempt from GST
vide notifications issued under relevant GST legislations. The company sells 'Z' only within Gujarat
and is not registered under GST laws. The turnover of the company in the previous year 2022-23
was Rs 50 lakh. The company expects the sales to grow by 10% in the current year 2023-24.
However, effective 01.01.2024, exemption available on 'Z' was withdrawn by the Central
Government and GST@ 5% was imposed thereon. The turnover of the company for the nine
months ended on 31.12.2023 was ` 42 lakh. BBD Pvt. Ltd. is of the opinion that it is not required to
get registered under GST for current financial year 2019-20. Examine the above scenario and
advise BBD Pvt. Ltd. whether it needs to get registered under GST or not.
Answer
For a supplier exclusively engaged in intra-State supply of goods, the threshold limit of turnover
to obtain registration in the State of Gujarat is ` 40 lakh. However, a person exclusively engaged
in the business of supplying goods and/or services that are not liable to tax or are wholly exempt
from tax is not liable to registration.
Therefore, since BBD Pvt. Ltd. was engaged exclusively in supplying exempted goods till
31.12.2023, it was not required to be registered till that day; though voluntary registration was
allowed.
The position, however, will change from 01.01.2024 as the supply of goods become taxable from
that day and the turnover of BBD Pvt. Ltd. is more than Rs 40 lakh. Since the aggregate turnover
limit of ` 40 lakh includes exempt turnover also, turnover of ‘Z’ till 31.12.2023 will be considered for
determining the threshold limit even though the same was exempt from GST. Therefore, BBD Pvt.
Ltd. needs to register within 30 days from 01.01.2024.
Super 75
Returns under GST
X Ltd. is winding up its business in Rajasthan. The Tax Consultant of X Ltd. has suggested that X Ltd. will
have to file either the annual return or the final return at the time of voluntary cancellation of
registration in the state of Rajasthan. Do you agree with the stand taken by Tax Consultant of X Ltd.?
Offer your comments
Answer
No, the stand taken by Tax Consultant of X Ltd. is not correct. Annual return is required to be filed by
every registered person paying tax as a normal taxpayer. Final return is filed by the registered persons
who have applied for cancellation of registration within three months of the date of cancellation or
the date of cancellation order. In the given case, X Ltd., a registered person, is winding up its business
and has thus, applied for cancellation of registration. Therefore, it is required to file both annual return
and final return
Mr. Gauri Shiva, a registered person in Punjab, supplies goods taxable @ 12% [CGST @ 6%, SGST @
6% & IGST @ 12%] in the States of Punjab & Haryana. He has furnished the following details in relation
to independent supplies made by him in the quarter ending June, 20XX:-
Sup ply Recipient Nature of Supply Value
1 Mr. A, a registered person Inter-State 2,20,000
2 Mr. B, a registered person Inter-State 2,55,000
3 Mr. C, an unregistered person Intra -State 1,80,000
4 Mr. D, an unregistered person Intra -State 2,60,000
5 Mr. M, an unregistered person Inter-State 3,00,000
6 Mr. N, an unregistered person Inter-State 50,000
7 Mr. O, an unregistered person Inter-State 2,50,000
8 Mr. P, an unregistered person Inter-State 2,80,000
9 Mr. Q, a registered person Intra -State 1,50,000
10 Mr. R, a registered person Intra -State 4,10,000
The aggregate annual turnover of Mr. Gauri Shiva in the preceding financial year was Rs 1.20 crore.
With reference to rule 59 of the CGST Rules, 2017, discuss the manner in which the details of above
supplies are required to be furnished in GSTR-1
Super 75
Answer
Rule 59 of the CGST Rules, 2017, inter alia, stipulates that the details of outward supplies of goods
and/or services furnished in form GSTR-1 shall include the–
(a) invoice wise details of all –
(i) inter-State and intra-State supplies made to the registered persons; and
(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to
the unregistered persons;
(b) consolidated details of all –
(i) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State wise inter-State supplies with invoice value upto two and a half lakh rupees made
to unregistered persons for each rate of tax;
Thus, in view of the above-mentioned provisions, Mr. Gauri Shiva should furnish the details of
outward supplies of goods made by him during the quarter ending June 20XX in the following
manner:-
Supply Recipient Nature of Value Manner of furnishing

Supply details
1 Mr. A, a registered person Inter-State 2,20,000 Invoice-wise details
2 Mr. B, a registered person Inter-State 2,55,000 Invoice-wise details
3 Mr. C, an unregistered person Intra State 1,80,000 Consolidated

details of
supplies 3 and 4
4 Mr. D, an unregistered person Intra -State 2,60,000
5 Mr. M, an unregistered person Inter-State 3,00,000 Invoice-wise details
6 Mr. N, an unregistered person Inter-State 50,000 Consolidated

details of
supplies 6 and 7
7 Mr. O, an unregistered person Inter-State 2,50,000
8 Mr. P, an unregistered person Inter-State 2,80,000 Invoice-wise details
9 Mr. Q, a registered person Intra -State 1,50,000 Invoice-wise details
10 Mr. R, a registered person Intra -State 4,10,000 Invoice-wise details

Super 75
Question 47
The due date for payment of tax by a person paying tax under section 10 of the CGST Act, 2017, i.e.
a composition supplier is aligned with the due date of return to be filed by the said person. Discuss
the correctness or otherwise of the statement
Answer
The statement is not correct. Every registered person paying tax under section 10, i.e. a composition
supplier, is required to file a return annually in Form GSTR-4. Form GSTR-4 for a financial year should
be furnished by 30th April of the succeeding financial year. However, a composition supplier is
required to pay his tax on a quarterly basis. A quarterly statement for payment of self-assessed tax
in GST CMP-08 is required to be furnished by 18th day of the month succeeding such quarter.
Therefore, while the return is to be furnished annually, payment of tax needs to be made on a
quarterly basis, by a composition supplier.

(a) Mr. Ayushman, a registered person having intra-State aggregate turnover of 1.2 crores in the
preceding financial year did not file GSTR-3B for the month of September, 2021 by 10th
November, 2021. The amount of tax payable for the month of September, 2021 is 8 lakh. All his
supplies are intra-State supplies. Is there any late fee payable for the same? If yes, what is the
amount of late fee payable?
(b) Will your answer be different in (a), if Mr. Ayushman has intra-State aggregate turnover of 5
crores in the preceding financial year?
(c) Will your answer be different in (a), if total amount of tax payable in the GSTR-3B for the month
of September is Nil?
Answer
(a) As per section 47 of the CGST Act, 2017 read with Notification No 19/2021 CT dated 01.06.2021,
the registered persons whose aggregate turnover is ≤ 1.5 crores in the preceding FY, and who
fails to furnish the returns required under section 39 by the due date shall pay a late fee of
______________________________.
Thus, late fee is payable in the given case and the amount of late fee payable is _____________.
(b) As per section 47 of the CGST Act, 2017 read with Notification No 19/2021 CT dated 01.06.2021,
the registered persons whose aggregate turnover is more than 1.5 crores but less than equal to
5 crores in the preceding FY, and who fails to furnish the returns required under section 39 by
the due date shall pay a late fee of __________________________.
Thus, late fee is payable in the given case and the amount of late fee payable is
___________________.
(c) As per section 47 of the CGST Act, 2017 read with Notification No 19/2021 CT dated 01.06.2021,
any registered person whose total amount of tax payable in the GSTR-3B is Nil and who fails to
furnish the returns required under section 39 by the due date shall pay a late fee of
__________________.
Thus, late fee is leviable even if total amount of tax payable in the GSTR-3B for the month of
September is Nil. The amount of late fee would be _____________________________________.
Super 75
Question 49
Who can be registered as Goods and Service Tax Practitioners under Section 48 of the CGST Act?
Answer
Following persons can be registered as Goods and Service Tax Practitioners:
Any person who, (i) is a citizen of India; (ii) is a person of sound mind; (iii) is not adjudicated as
insolvent; (iv) has not been convicted by a competent court; and satisfies any of the
following conditions, namely that he:
1. is a retired officer of Commercial Tax Department of any State Govt./CBIC who, during
service under Government had worked in a post not lower than the rank of a Group-B
gazetted officer for a period ≥ 2 years, or
2. is enrolled as a Sales Tax Practitioner or Tax Return Preparer under the erstwhile indirect tax
laws for a period of not less than 5 years, or
3. acquired any of the prescribed qualifications
4. has passed Graduate/postgraduate degree or its equivalent examination having a degree in
specified disciplines, from any Indian University or a degree examination of any Foreign
University recognised by any Indian University as equivalent to degree examination
5. has passed any other notified examination
6. has passed final examination of ICAI/ ICSI/ Institute of Cost Accountants of India
Question 50
Amit Mahajan has filed GSTR-1 for the quarter ended June 2023 before the due date. Later in the
month of January next year, he discovers error in GSTR 1 of May 2023 and wishes to revise it. Advice
him on the future course of action.
Answer
 The mechanism of filing revised return for any correction of errors/omission is not available
under GST but the rectification of errors/omission is allowed in the subsequent returns.
The error can be rectified by furnishing appropriate particulars in the "Amendment Tables"
contained in GSTR-1.
Thus, Mr. X who discovered an error in GSTR-1 for quarter ended in September 20XX cannot
revise it.
However, he should rectify said error in the GSTR-1 filed for the month of January and should
pay the tax and interest, if any, in case of short payment, in the return to be furnished for
January.
 However, the rectification of details furnished in GSTR-1 shall not be allowed after:
o 30th November following the end of the financial year to which such details pertain or
o furnishing of the relevant annual return
Whichever is earlier
Super 75
PQR Ltd., have filed their GSTR-3B return for the month of August, 2020 within the due date i.e.
20.09.2020. It was noticed in October, 2020 that tax dues for the month of August, 2020 have been
short paid by 10,000. The shortfall of 10,000 was paid through cash ledger and credit ledger
amounting to 7,500 and 2,500 respectively while filing GSTR-3B of October, 2020 which was filed on
20.11.2020
(i) Examine and compute the interest payable if any under the CGST Act, 2017.
(ii) What would be your answer if, GSTR-3B for the month of August 2020 had been filed belatedly
on 20.11.2020 as above.
Note: Ignore the effect of the leap year. Electronic cash ledger and credit ledger carried
sufficient balance for the above shortfall
Answer
In case of delayed payment of tax,interest is payable @ 18% per annum from the date following
the due date of payment to the actual date of payment of tax.
However, interest is payable only on the short-paid tax which is paid through electronic cash ledger
if return under section 39 is furnished after the due date.
(i) In the given case, PQR Ltd. has furnished the return for August 2020 by the due date. Hence,
interest is payable on the entire amount of short payment of 10,000, as under:
=10,000×18%×61/365 = 300.82 or 301 (rounded off)
(i) If PQR Ltd. has furnished the return for August 2020 after the due date, interest is payable only
on the short payment which is paid through electronic cash ledger, i.e. 7,500, as under:
=7,500×18%x61/365 = 225.62 or 226 (rounded off)
Question 52 PYQ 23
Mr. Sumit is a registered dealer in the state of Punjab. In the month of May, he decides to apply for
QRMP scheme. As he wants to switch to QRMP scheme, he had not filed his returns for the months of
May and June.
Please guide to Mr. Sumit regarding the following:
(A) Conditions and restrictions of QRMP scheme.
(B) Manner of exercising option of QRMP scheme.
Answer
(A) Conditions and restrictions of QRMP scheme

Mr. Sumit has to fulfil the following conditions and restrictions for opting for QRMP scheme:
• His aggregate annual turnover (PAN based) is up to ` 5 crore in the preceding financial
year.
• He has furnished the return for the preceding month, as due on the date of exercising such
option.
• He is not required to exercise the option every quarter.
(B) Manner of exercising option of QRMP scheme
Registered person – Mr. Sumit - intending to opt for QRMP scheme for any quarter should
indicate his preference for furnishing of return on a quarterly basis from 1st day of the 2nd
month of the preceding quarter till the last day of the 1st month of the quarter for which the
option is being exercised.
Super 75
Tax Invoice, Dr Note, Cr Note and E Way Bill
Royal Fashions, a registered supplier of designer outfits in Delhi, decides to exhibit its products in
a Fashion Show being organised at Hotel Park Royal, Delhi on 4th January, 20XX. For the
occasion, it gets the makeover of its models done by Aura Beauty Services Ltd., Ashok Vihar, for
which a consideration is ₹ 5,00,000 (excluding GST) has been charged. Aura Beauty Services Ltd.
issued a duly signed tax invoice on 10th February, 20XX showing the lumpsum amount of ₹
5,90,000 inclusive of CGST and SGST @ 9% each. Royal Fashions made the payment the very next
day. Answer the following questions:
1. Examine whether the tax invoice has been issued within the time limit prescribed under law?
2. Tax consultant of Royal Fashions objected to the invoice raised suggesting that the amount of
tax charged in respect of the taxable supply should be shown separately in the invoice raised
by Aura Beauty Services Ltd. However, Aura Beauty Services Ltd. contended that there is no
mandatory requirement of showing tax component separately in the invoice. You are
required to examine the validity of the objection raised by tax consultant of Royal Fashions?
Answer
1. As per section 31 read with the CGST Rules, in case of taxable supply of services, invoices
should be issued before or after the provision of service, but within a period of 30 days [45
days in case of insurer/ banking company or financial institutions including NBFCs] from the
date of supply of service.
In view of said provisions, in the present case, the tax invoice should have been issued in the
prescribed time limit of 30 days from the date of supply of service i.e. upto 3rd February.
However, the invoice has been issued on 10th February.
2. Section 31 read with the CGST Rules, inter alia, provides that tax invoice in addition to other
mandatory details shall also contain the amount of tax charged in respect of taxable goods
or services (central tax, State tax, integrated tax, Union territory tax or cess). Further, where
any supply is made for a consideration, every person who is liable to pay tax for such supply
shall prominently indicate in all documents relating to assessment, tax invoice and other like
documents, the amount of tax which shall form part of the price at which such supply is
made.
3. The objection raised by the tax consultant of Royal Fashions suggesting that the amount of
tax charged in respect of the taxable supply of makeover services should be shown
separately in the invoice raised by Aura Beauty Services Ltd., is valid in law
Bali Limited, a registered taxpayer, provides security services to registered persons from Mumbai
office and Delhi office. The aggregate turnover of Mumbai office and Delhi office in the
preceding financial year is ₹ 8 crore and ₹ 2.5 crore respectively. For the month of November in
the current financial year, Bali Limited prepares duplicate invoices and does not issue e-invoice
as it is of the view that its aggregate turnover does not cross the threshold limit to make it liable
for issuing e-invoices.
Briefly explain whether the view taken by Bali Limited is correct in law?
Super 75
Answer
The view taken by Bali Limited is not correct in law.
All notified registered businesses (except specified class of persons) with an aggregate turnover
(based on PAN) in the any preceding financial year from FY 2017-18 onwards, is greater than ₹
10 crore are required to issue e-invoices.
The eligibility is based on aggregate annual turnover on the common PAN. Thus, the aggregate
total turnover of Bali Limited is more than ₹ 10 crores (considering both the GSTINs) and is
required to issue e-invoices. Further, where e-invoicing is applicable, there is no need of issuing
invoice copies in triplicate/duplicate.
1. Is Dynamic Quick Response (QR) Code applicable to suppliers who issue invoice to
unregistered persons? If no, list the suppliers to whom Dynamic QR Code is not applicable
2. What is 'e-invoicing'?
3. What is the threshold limit for mandatory issuance of E-invoice for all registered businesses?
4. Enumerate the persons to whom provisions of e invoicing is applicable
5. What are the advantages of E invoicing?
6. A consignor hands over his goods for transportation on Friday to the transporter. However,
assigned transporter starts the movement of goods from consigner's warehouse to its depot
located at distance of 600 Km. on Monday.
7. When will the e-way bill be generated and for how many days it will be valid?
Answer
1. Dynamic QR code is applicable to invoices issued in respect of supplies made to

unregistered persons by a registered supplier provided its aggregate turnover in any
preceding financial year from 2017-18 onwards exceeds 500 crores.
However, it is not applicable to following suppliers issuing invoices to unregistered

persons:-
(i) Insurer or banking company or financial institution including NBFC
(ii) GTA supplying services in relation to transportation of goods by road in a goods

carriage
(iii) Supplier of passenger transportation service
(iv) Person supplying services by way of admission to exhibition of cinematograph films

in multiplex screens
(v) Supplier of online information and database access or retrieval (OIDAR) services
2. E-invoicing is reporting of business to business (B2B) invoices to GST system for certain
notified category of taxpayers.
3. The threshold limit for mandatory issuance of e-invoice for all registered businesses is 50
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crores
4. Mandatory e-invoicing is applicable to all registered businesses whose aggregate turnover

(based on PAN) in any preceding financial year from 2017-18 onwards exceeds 10 Crore
will be required to issue e-invoices for B2B supplies or for exports
Exception: Following persons are exempted from the mandatory requirement of e-

invoicing:-
1. A Government Department
2. A local Authority
3. Special Economic Zone (SEZ) units
4. Insurer or banking company or financial institution including NBFC
5. GTA supplying services in relation to transportation of goods by road in a goods

carriage
6. Supplier of passenger transportation service
7. Person supplying services of admission to exhibition of cinematograph films in

multiplex screens
Clarification
CBIC has clarified that exemption from the mandatory requirement of e-invoices, in the
above mentioned cases, is available for the entire entity as a whole and is not restricted
by the nature of the supply being made by the entity
5. The advantages of E-invoicing are as follows
1. Auto-reporting of invoices into GST return & auto-generation of e-way bill (wherever
required):- Once B2B invoice data is reported in e-invoice form, the same is reported
in multiple forms (GSTR-1, e-way bill etc.)
2. Substantial reduction in transcription errors & Reconciliation:- Same data gets

reported to tax department & to buyer to prepare his inward supplies register. Buyer
can reconcile with his Purchase Order.
3. Matching of ITC & output tax by Dept. & reduces tax evasion:- A complete trail of B2B
invoices is available with Department which enables the system-level matching of ITC
& output tax thereby reducing the tax evasion.
4. Eliminates fake invoices:- Claiming fictitious ITC by raising fake invoices is eliminated.
E-invoice system helps to curb actions of unscrupulous taxpayers & reduces fraud
cases as tax authorities have access to data in real-time.
5. Other Advantages:-
 Facilitate standardisation & inter-operability,
 Reduction of disputes among transacting parties,
 Better relationship,
 Eco-friendly as it eliminates paper,

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 Improve payment cycles,
 Internal controls,
 Reduction of processing costs &
 Improving overall business efficiency greatly
6. E-way bill will be generated before commencement of movement of goods by

transporter on Monday. The validity period of the e-way bill is one day from relevant date
upto 200 km and one additional day for every 200 km or part thereof thereafter.
Thus, validity period in the given case, is 3 days
M/s. Xing Trans of Kolkata is engaged in the trading of transmitters. On 20/05/2021, M/s. Xing
Trans has sent 500 units of transmitters for exhibition at Chennai on sale or return basis. Out of
the said 500 units, 300 units have been sold on 28/07/2021 at the exhibition. Out of remaining
200 units, 150 units have been brought back to Kolkata on 25/11/2021 and balance 50 units
have neither been sold nor brought back
Answer
Where the goods being sent for sale or return are removed before the supply takes place, the
tax invoice shall be issued before or at the time of supply or 6 months from the date of
removal, whichever is earlier.
In the given case, 500 units of transmitters have been sent for exhibition on sale or return basis
out of which 300 units are sold before 6 months from the date of removal. Thus, tax invoice for
said 300 units needs to be issued before or at the time of supply of such goods, i.e. upto
28/07/2021.
Remaining 200 (150+ 50) units have neither been sold nor brought back till the expiry of 6
months from the date of removal goods, i.e. 20/11/2021. Thus, tax invoice for said 200 units
needs to be issued upto 20/11/2021.
"One consolidated e-way bill can be generated for multiple invoices". Comment on the
validity of the above statement with reference to GST law
Answer
The statement is invalid.
Multiple invoices cannot be clubbed to generate one e-way bill. If multiple invoices are
issued by the supplier to recipient, for movement of such goods, multiple e-way bills have to
be generated.
Thus, for each invoice, one e-way bill has to be generated, irrespective of the fact whether
same or different consignors or consignees are involved.
However, after generating all these e-way bills, one consolidated e-way bill can be prepared
for transportation purpose, if goods are going in one vehicle.
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When goods are transferred by principal to job worker, there is no need to issue e-way bill.
Comment on the validity of the above statement with reference to GST Laws
Answer
The said statement is not valid.
When goods are transferred by principal to job worker, e-way bill is required to be mandatorily
issued:
- in case of intra-State transfer, if consignment value exceeds 50,000, and
- in case of inter-State transfer, irrespective of the value of the consignment
Question 59
Under what circumstances does the need of issuance of debit note and credit note arise
under section 34 of CGST Act, 2017
Answer
Debit note is required to be issued
(i) if taxable value charged in the tax invoice is found to be less than the taxable
value in respect of supply of goods and/or services or
(ii)if tax charged in the tax invoice is found to be less than the tax payable in
respect of supply of goods and/or services
Credit note is required to be issued:-
(i) If taxable value charged in the tax invoice is found to exceed the taxable value
in respect of supply of goods and/or services, or
(ii) If tax charged in the tax invoice is found to exceed the tax payable in respect of
supply of goods and/or services, or
(iii) if goods supplied are returned by the recipient, or
(iv) if goods and/or services supplied are found to be deficient
Question 60
1. Whether e-way bill is required to be generated if the goods in given case are transported
by a non-motorised conveyance?
2. "It is mandatory to furnish the details of conveyance in Part-B of E-way Bill. “Comment on
the validity of the above statement with reference to provisions of E-Way Bill under CGST
Rules, 2017
Answer
1. No, e-way bill is not required to be generated, if goods are being transported by a non-
motorised conveyance
2. Yes –
An e-way bill is valid for movement of goods by road only when the information in Part-B
– which includes details of conveyance - is furnished.
However, the details of conveyance may not be furnished in Part-B of the e-way bill
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where the goods are transported for a distance of up to 50 km within the
State/Union territory:
(a) from the place of business of the consignor to the place of business of the
transporter for further transportation or
(b) from the place of business of the transporter finally to the place of business of
the consignee.
Question 61
Time limit to accept / reject the E way Bill for supplier or recipient
Answer
Information furnished in Part A of e- way bill by the recipient/ transporter or by the

supplier/transporter, as the case may be, shall be accepted or rejected by the
supplier/recipient within the Earlier of:-
- 72 hours of details being made available to him on common portal or
- Time of delivery of goods
If such supplier/ recipient does not communicate his acceptance or rejection within this time,
then it shall be deemed to be accepted
(a) Eden Ltd., registered under GST and dealing in educational toys, has an aggregate
turnover of 18 crore in the preceding financial year. The tax consultant of Eden Ltd.
advised it to issue e-invoices mandatorily in the current financial year. However, Eden Ltd.
is of the view that since it's aggregate turnover is less than the threshold limit applicable
for e-invoicing, so it is not required to issue e-invoices. You are required to comment
upon the validity of the advice given by Tax consultant.
(b) A Government Department is registered under GST. It's aggregate turnover in the
preceding financial year is 22 crore. You are required to comment with the help of
relevant provisions whether the said Department is required to issue e-invoices in the
current financial year.
Answer
(a) E-invoicing has been made mandatory for all registered businesses (except specified
class of persons) with an aggregate turnover in any preceding financial year from 2017-18
onwards greater than 5 crore in respect of B2B supplies (supply of goods or services or
both to a registered person) or for exports. Thus, the advice given by tax consultant of
Eden Ltd. for issuance of e-invoices mandatorily in the current financial year is valid in law
as the aggregate turnover of Eden Ltd. has exceeded the threshold limit i.e. 5 crore in the
preceding financial year.
(b) Following entities are exempt from the mandatory requirement of e-invoicing:
- Special Economic Zone units
- Insurer or banking company or financial institution including NBFC
- GTA supplying services in relation to transportation of goods by road in a goods

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carriage
- Supplier of passenger transportation service
- Person supplying services by way of admission to exhibition of cinematograph films in

multiplex screens
- Government Department and a local authority
Further, the above taxpayers exempted from the mandatory requirement of e- invoicing
are required to provide a declaration on the tax invoice stating that though their
aggregate turnover exceeds the notified aggregate turnover for e-invoicing, they are
not required to prepare an e-invoice.
Thus, above mentioned entities are not required to issue e-invoices even if their turnover
exceeds 5 crore in the preceding financial year from 2017-18 onwards but are required to
provide a declaration as discussed above.
Thus, in the given case, the Government Department is not required to issue e-invoices in
the current financial year even if it's aggregate turnover has exceeded 5 crores
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Place of Supply
Question 63
Answer the following questions in the light of the place of supply provisions contained in the IGST
Act, 2017:
(1) Quick deal Enterprises (Ahmednagar, Gujarat) opens a new branch office at Hissar,
Haryana. It purchases a building for office from Ruhani Builders (Hissar) along with pre-
installed office furniture and fixtures. Determine place of supply of the pre-installed office
furniture and fixtures. (MTP 2 Marks April ’18)
(2) Supra Events, an event management company at New Delhi, organizes an award function
for Chirag Diamond Merchants of Varanasi (registered in U.P.), at Mumbai. Determine
place of supply of the service supplied by Supra Events. Will your answer be different, if the
award function is organized at Mauritius instead of Mumbai?
Answer
(1) Section 10(1)(c) of the IGST Act stipulates that if the supply does not involve movement of
goods, the place of supply is the location of goods at the time of delivery to the
recipient. Since there is no movement of office furniture and fixtures in the given case,
the place of supply of such goods is their location at the time of delivery to the recipient
(Quick deal Enterprises) i.e., Hissar, Haryana.
(2) Section 12(7) of the IGST Act stipulates that the place of supply of services provided by
way of organisation of a cultural, artistic, sporting, scientific, educational or
entertainment event including supply of services in relation to a conference, fair,
exhibition, celebration or similar events is the location of recipient in a case where such
service is provided to a registered person. In the given case, since the recipient (Chirag
Diamond Merchants) is a registered person, the place of supply is the location of the
recipient, i.e., Varanasi, U.P.
Further, the place of supply will not change even if the award function is organized at
Mauritius instead of Mumbai as the location of recipient remains unchanged. Thus, in that
case also, the place of supply is the location of the recipient, i.e., Varanasi, U.P
Question 64
Determine the place of supply for the following independent cases under the IGST Act, 2017:
(i) Mega Events, an event management company at Kolkata, organises two award
functions for Shagun Jewellers of Chennai (Registered in Chennai) at New Delhi and at
Singapore.
(ii) Crown Planners (Bengaluru) is hired by Dr. Banta (unregistered person based in Kochi) to
plan and organise his son's wedding at Mumbai.
Will your answer be different if the wedding is to take place at Malaysia?
Answer
(i) When service by way of organization of an event is provided to a registered person,

place of supply is the location of recipient in terms of section 12(7)(a)(i) of IGST Act,
2017. Since, in the given case, the award functions at New Delhi and Singapore are
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organized for Shagun Jewellers (registered in Chennai), place of supply in both the
cases is the location of Shagun Jewellers i.e., Chennai.
(ii) As per section 12(7)(a)(ii) of IGST Act, 2017, when service by way of organization of an
event is provided to an unregistered person, the place of supply is the location where
the event is actually held and if the event is held outside India, the place of supply is
the location of recipient. Since, in the given case, the service recipient [Dr. Banta] is
unregistered and event is held in India, place of supply is the location where the
event is actually held i.e., Mumbai.
However, if the wedding is to take place outside India [Malaysia], the place of supply
is the location of that unregistered recipient i.e. Kochi
Question 65
Mr. Sheru, an unregistered person and a resident of Pune, Maharashtra hires the services of Class
Ltd. an event management company registered in Delhi, for organising the new product launch
in Bengaluru, Karnataka.
(i) Determine the place of supply of services provided by Class Ltd.
(ii) What would be your answer if the product launch takes place in Bangkok?
(iii) What would be your answer if Mr. Sheru is a registered person and product launch takes
place in-
(a) Bengaluru
(b) Bangkok?
Answer
(i) As per section 12(7)(a)(ii) of the IGST Act, 2017 when service by way of organization of
an event is provided to an unregistered person, the place of supply is the location
where the event is actually held and if the event is held outside India, the place of
supply is the location of recipient.
Since, in the given case, the service recipient [Mr. Sheru] is unregistered and event is
held in India, place of supply is the location where the event is actually held, i.e.
Bengaluru, Karnataka. The location of the supplier and the location of the recipient is
irrelevant in this case.
(ii) However, if product launch takes place outside India [Bangkok], the place of supply will
be the location of recipient, i.e. Pune, Maharashtra.
(iii) When service by way of organization of an event is provided to a registered person,

place of supply is the location of recipient vide section 12(7)(a)(i) of the IGST Act, 2017.
Therefore, if Mr. Sheru is a registered person, then in both the cases, i.e. either when product
launch takes place in Bengaluru or Bangkok, the place of supply will be the location of recipient,
i.e. Pune, Maharashtra.
Super 75
Question 66
Mr. Rajat Chawla, an interior decorator provides professional services to Mr. Aman Malhotra in
relation to two of his immovable properties. Determine the place of supply in the transactions
below as per provisions of GST law in the following independent situations:
Case Location of Mr. Rajat Location of Mr. Aman Property situated at

Chawla Malhotra
I Delhi Maharashtra New York (USA)
II Delhi New York Pihus (France)
Explain the relevant provisions of law to support your conclusions.
Answer
Case I
As per section 12(3) of the IGST Act, 2017, where both the service provider and the service
recipient are located in India, the place of supply of services directly in relation to an immovable
property, including services provided by interior decorators is the location of the immovable
property. However, if the immovable property is located outside India, the place of supply is the
location of the recipient. Since in the given case, both the service provider (Mr. Rajat Chawla)
and the service recipient (Mr. Aman Malhotra) are located in India and the immovable property
is located outside India (New York), the place of supply will be the location of recipient, i.e.
Maharashtra.
Case II
As per section 13(4) of the IGST Act, 2017, where either the service provider or the service
recipient is located outside India, the place of supply of services directly in relation to an
immovable property including services of interior decorators is the location of the immovable
property. Since in the given case, service provider (Mr. Rajat Chawla) is located in India and
service recipient (Mr. Aman Malhotra) is located outside India (New York), the place of supply
will be the location of immovable property, i.e. Pihus (France).
Question 67
Dhun Pvt. Ltd. owned by Jairaj - a famous classical singer - wishes to organise a ‘Jairaj Music
Concert’ in Gurugram (Haryana). Dhun Pvt. Ltd. (registered in Ludhiana, Punjab) enters into a
contract with an event management company, Dhanraj (P) Ltd. (registered in Delhi) for
organising the said music concert at an agreed consideration of ` 10,00,000.
Dhanraj (P) Ltd. books the lawns of Hotel Dumdum, Gurugram (registered in Haryana) for holding
the music concert, for a lump sum consideration of ` 4,00,000. Dhun Pvt. Ltd. fixes the entry fee to
the music concert at ` 5,000.
You are required to determine the place of supply in respect of the supply(ies) involved in the
given scenario.
Answer
In the given situation, three supplies are involved:
(i) Services provided by Dhun Pvt. Ltd. to audiences by way of admission to music
concert.
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(ii) Services provided by Dhanraj (P) Ltd. to Dhun Pvt. Ltd. by way of organising the music
concert.
(iii) Services provided by Hotel Dumdum to Dhanraj (P) Ltd. by way of accommodation in
the Hotel lawns for organising the music concert.
The place of supply in respect of each of the above supplies is determined as under:
(i) As per the provisions of section 12(6), the place of supply of services provided by way
of admission to, inter alia, a cultural event shall be the place where the event is
actually held.
Therefore, the place of supply of services supplied by Dhun Pvt. Ltd. (Ludhiana,
Punjab) to audiences by way of admission to the music concert is the location of the
Hotel Dumdum, i.e. Gurugram, Haryana.
(ii) Section 12(7)(a)(i) stipulates that the place of supply of services provided by way of
organization of, inter alia, a cultural event to a registered person is the location of
such person.
Therefore, the place of supply of services supplied by Dhanraj (P) Ltd. (Delhi) to Dhun
Pvt. Ltd. (Ludhiana, Punjab) by way of organising the music concert is the location of
the registered person, i.e. Ludhiana (Punjab).
(iii) As per the provisions of section 12(3)(c) of the IGST Act, 2017, the place of supply of
services, by way of accommodation in any immovable property for organizing, inter
alia, any cultural function shall be the location at which the immovable property is
located.
Therefore, the place of supply of services supplied by Hotel Dumdum(Gurugram, Haryana) to

Dhanraj (P) Ltd. (Delhi) by way of accommodation in Hotel lawns for organising the music
concert shall be the location of the Hotel Dumdum, i.e. Gurugram, Haryana.
Question 68
(i) Parth of Pune, Maharashtra enters into an agreement to sell goods to Bakul of Bareilly,
Uttar Pradesh. While the goods were being packed in Pune godown of Parth, Bakul got an
order from Shreyas of Shimoga, Karnataka for the said goods. Bakul agreed to supply the
said goods to Shreyas and asked Parth to deliver the goods to Shreyas at Shimoga. You
are required to determine the place of supply(ies) in the above situation.
(ii) Damani Industries has recruited Super Events Pvt. Ltd., an event management company
of Gujarat, for organising the grand party for the launch of its new product at Bangalore.
Damani Industries is registered in Mumbai. Determine the place of supply of the services
provided by Super Events Pvt. Ltd. to Damani Industries. Will your answer be different if the
product launch party is organised at Dubai?
Answer
(i) The supply between Parth (Pune) and Bakul (Bareilly) is a bill to ship to supply where the
goods are delivered by the supplier [Parth] to a recipient [Shreyas (Shimoga)] or any
other person on the direction of a third person [Bakul]. The place of supply in case of bill
to ship to supply of goods is determined in terms of section 10(1)(b) of IGST Act, 2017.
As per section 10(1)(b) of IGST Act, 2017, where the goods are delivered by the supplier
to a recipient or any other person on the direction of a third person, whether acting as an
Super 75
agent or otherwise, before or during movement of goods, either by way of transfer of
documents of title to the goods or otherwise, it shall be deemed that the said third person
has received the goods and the place of supply of such goods shall be the principal
place of business of such person.
Thus, in the given case, it is deemed that the Bakul has received the goods and the
place of supply of such goods is the principal place of business of Bakul. Accordingly, the
place of supply between Parth (Pune) and Bakul ( Bareilly) will be Bareilly, Uttar Pradesh.
This situation involves another supply between Bakul (Bareilly) and Shreyas (Shimoga). The
place of supply in this case will be determined in terms of section 10(1)(a) of IGST Act,
2017.
Section 10(1)(a) of IGST Act, 2017 stipulates that where the supply involves movement of
goods, whether by the supplier or the recipient or by any other person, the place of
supply of such goods shall be the location of the goods at the time at which the
movement of goods terminates for delivery to the recipient of goods terminates for
delivery to the recipient (Shreyas) i.e., Shimoga, Karnataka
(ii) Section 12(7)(a)(i) of IGST Act, 2017 stipulates that when service by way of organization of
an event is provided to a registered person, place of supply is the location of recipient.
Since, in the given case, the product launch party at Bangalore is organized for Damani
Industries (registered in Mumbai), place of supply is the location of Damani Industries i.e.,
Mumbai.
In case the product launch party is organized at Dubai, the answer will remain the same,
i.e. the place of supply is the location of Damani Industries – Mumbai
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Account and Records
Question 69
1. Mr. Sky is engaged in the business of trading of mobiles. He is eligible for composition
scheme and has opted for the same. He seeks your advice for records which are not
required to be maintained by him as composition taxable person
2. Explain the provisions relating to period of retention of accounts as provided under

section 36 of CGST Act, 2017
3. Whether the transporters, who are not registered under the GST, are required to maintain
any records under the provisions of CGST Act, 2017? Also explain, if any other
unregistered persons who are required to maintain records under GST
Answer
(1) A supplier who has opted for composition scheme is not required to maintain records
relating to;
a. Stock of goods: Accounts of stock in respect of goods received and supplied by him,
and such accounts shall contain particulars of the opening balance, receipt, supply,
goods lost stolen, destroyed, written off or disposed of by way of gift or free sample
and the balance of stock including raw materials, finished goods, scrap and wastage
thereof.
b. Details of tax: Account, containing the details of tax payable (including tax payable
under reverse charge), tax collected and paid, input tax, input tax credit claimed,
together with a register of tax invoice, credit notes, debit notes, delivery challan
issued or received during any tax period.
Thus, Mr. Sky is not required to maintain above mentioned records
(2) Section 36 of the CGST Act explains the provisions relating to period of retention of
accounts as under: - Every registered person required to keep and maintain books of
account or other records shall retain them until the expiry of 72 months from the due date
of furnishing of annual return for the year pertaining to such accounts and records.
However, a registered person, who is a party to an appeal or revision or any other

proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal
or court, whether filed by him or by the Commissioner, or is under investigation for an
offence under Chapter XIX, shall retain the books of account and other records
pertaining to the subject matter of such appeal or revision or proceedings or
investigation for a period of 1 year after final disposal of such appeal or revision or
proceedings or investigation, or for the period specified above, whichever is later
(3) The transporters, who are not registered under GST, shall obtain a unique enrollment
number on GST common portal and maintain records of goods transported, delivered
and goods stored in transit by them along with GSTIN of the registered consignor and
consignee for each of his branches. Every owner or operator of warehouse/godown/any
other place used for storage of goods, even if unregistered, is also required to maintain
records under GST
Super 75
Question 70
List any four records required to be maintained by an agent under the CGST Rules, 2017
Answer
Every agent shall maintain accounts depicting the-
(a) particulars of authorisation received by him from each principal to receive or supply goods
or services on behalf of such principal separately;
(b) particulars including description, value and quantity (wherever applicable) of goods or
services received on behalf of every principal;
(c) particulars including description, value and quantity (wherever applicable) of goods or
services supplied on behalf of every principal;
(d) details of accounts furnished to every principal; and
(e) tax paid on receipts or on supply of goods or services effected on behalf of every
principal.
Super 75
GST - TDS / TCS
Question 69
1. Shubi Enterprises is entitled for exemption from tax under GST law. However, it collected
tax from its buyers worth Rs. 50,000 in the month of August. It has not deposited the said
amount collected as GST with the Government. You are required to brief to Shubi
Enterprises the consequences of collecting tax, but not depositing the same with
Government as provided under section 76 of the CGST Act, 2017
Answer
(1) It is mandatory to pay amount, collected from other person representing tax under GST
law, to the Government. Every person who has collected from any other person any
amount as representing the tax under GST law, and has not paid the said amount to the
Government, shall forthwith pay the said amount to the Government, irrespective of
whether the supplies in respect of which such amount was collected are taxable or not.
For any such amount not so paid, proper officer may issue show cause notice(SCN) for
recovery of such amount and penalty equivalent to amount specified in notice.
The proper officer shall, after considering the representation, if any, made by the person
on whom SCN is served, determine the amount due from such person and thereupon
such person shall pay the amount so determined alongwith interest at the rate specified
under section 50 of the CGST Act, 2017 from the date such amount was collected by him
to the date such amount is paid by him to the Government
Question 70
Ragini Traders, a registered supplier of Jaipur, is engaged in supply of various goods and services
exclusively to Government departments, agencies, local authority and persons notified under
section 51 of the CGST Act, 2017.
You are required to briefly explain the provisions relating to tax deduction at source under
section 51 and also determine the amount of tax, if any, to be deducted from each of the
receivables given below (independent cases) assuming that the payments as per the contract
values are made on 31st October. The rates of CGST, SGST and IGST may be assumed to be 6%,
6% and 12% respectively.
(1) Supply of computer stationery to Public Sector Undertaking (PSU) located & registered in
Mumbai. Total contract value is ₹ 2,72,000 (inclusive of GST)
(2) Supply of air conditioner to GST department located & registered in Delhi. Total contract
value is ₹ 2,55,000 (exclusive of GST)
(3) Supply of generator renting service to Municipal Corporation of Jaipur (not exempt under
GST law). Total contract value is ₹ 3,50,000 (inclusive of GST)
Answer
As per section 51 of the CGST Act, 2017, Government departments, agencies, local authority
and notified persons are required to deduct tax @ 2% (1% CGST + 1% SGST/UTGST) or IGST @ 2%
from payment made to the supplier of taxable goods and/ or services where the total value of
such supply [excluding tax and compensation cess indicated in the invoice], under a contract,
exceeds ₹ 2,50,000.
Super 75
Since in the given case, Ragini Traders is supplying goods and services exclusively to Government
departments, agencies, local authority and persons notified under section 51 of the CGST Act,
2017, applicability of TDS provisions on its various receivables is examined in accordance with the
above- mentioned provisions as under:
S. Particulars Total contract value

Tax to be deducted
due to be received
No. CGST SGST IGST
[excluding GST]
@ 1% @ 1% @ 2%
(₹)
(₹) (₹) (₹)
(1) Supply of computer stationery 2,42,857 -- --

to
PSU in Mumbai [2,72,000
[Since the total value of supply × 100 / 112]
under the contract [excluding
IGST (being inter-State supply)]
does not exceed ₹ 2,50,000, tax
is not required to be
deducted.]
(2) Supply of air conditioner to GST 2,55,000 -- 5,100

Department in Delhi
[Since the total value of supply

IGST (being inter-State supply)]
exceeds ₹ 2,50,000, tax is
required to be deducted.]
(3) Supply of a generator renting 3,12,500 3,125 3,125
service to Municipal [3,50,000× 100 /

Corporation
of Jaipur 112]
[Since the total value of supply
CGST and SGST (being intra-
State supply)] exceeds
₹ 2,50,000, tax is required to be
deducted.]
Total 3,125 3,125 5,100

Super 75
Question 71
(i) A Central Government Department located at Uttar Pradesh is registered with the
Commercial Tax Department UP State for deducting GST. It enters into a contract with a
Public Sector Undertaking (PSU), registered under GST in the State of Delhi, for supplying
goods valued ` 3,50,000. The PSU argues that no tax is deductible on this supply by the
Central Government Department as it is located outside the State of Uttar Pradesh and
therefore not liable to tax under CGST and SGST as it is a local levy and IGST tax
deduction is not applicable if it is located in another State, other than the State in which
the Department is registered. You are required to comment on this.
(ii) Would there be any difference, if instead of the PSU if it was an entity in the private
sector? Applicable tax rate for deduction is 1% CGST, 1% SGST and 2% IGST
(iii) If the private sector entity undertakes works contract, for the above Department in New
Delhi. What would be the position of tax deduction when the contract value Rs 5,00,000?
(iv) The disbursing officer has not paid the tax deducted in the month of February 2019,
amounting to ` 2,00,000 under CGST and 2,00,000 under SGST to the Government's
account on the relevant due date, but has paid it on 14th May, 2019. Further, return for
that month is also filed on that date and the certificate is also issued simultaneously. What
are the consequences, on such failures, to the disbursing officer under the GST law?
Answer
(i) Certain specified persons are required to deduct tax from the payment made to the
supplier of taxable goods and/or services, where the total value of such supply
[excluding GST] under a contract, exceeds Rs 2,50,000.
However, the tax is not liable to be deducted at source when supply of goods and/or
services has taken place between one specified person to another specified person.
Since both Central Government Department and PSU are the specified persons, tax is not
deductible in case of supply of goods between them.
(ii) Central Government Department is mandatorily required to deduct IGST @ 2% since a

private entity is not the specified person.
(iii) Since, in the given case, the location of supplier and place of supply is in the same State,
i.e., Delhi and location of recipient is in UP, Central Government Department is not
required to deduct TDS although the total value of supply under the contract is more
than Rs 2,50,000.
(iv) Failure to deposit TDS with the Government and failure to furnish TDS return within the
stipulated time period will result in following consequences:
a. Interest @ 18% p.a. on the amount of tax deducted shall be payable.
b. Late fee of Rs 100 per day for the period of delay in furnishing return, or Rs 5,000,
whichever is lower, shall be payable. Equal amount of late fee will be payable under
the respective State law.
c. Applicable penalty will also be levied.

Super 75
Question 72
BSA Corporation is a Public Sector Undertaking registered in Karnataka. For entertainment events
in Bengaluru and at Mumbai, BSA has given contract to Mr. A, a renowned artist, registered
person in Maharashtra, to perform on contemporary Bollywood songs. BSA Corporation agreed
to pay ₹ 12,39,000 and ₹ 18,29,000, inclusive of GST, for Mumbai and Bengaluru events
respectively. BSA Corporation seeks your advice regarding amount of TDS to be deducted
assuming GST rate @ 18%
Answer
A Public Sector Undertaking is required to deduct tax @ 2% (on inter-State supplies) from
payment made to the supplier of taxable services where the total value of such supply,
excluding tax indicated in the invoice, under a contract, exceeds ₹ 2,50,000.
Value of supplies excluding tax are
₹ 10,50,000 (₹ 12,39,000 × 100/118) and
₹ 15,50,000 (₹ 18,39,000 × 100/118)
Further, in the given case, since the location of supplier is Maharashtra and place of supply of
services provided by Mr. A to BSA Corporation is the location of recipient, viz. Karnataka, said
services provided at both Mumbai and Bengaluru events are inter -State supplies.
Accordingly, in the given case, BSA Corporation is required to deduct tax as follows:
(i) ₹ 10,50,000 × 2% = ₹ 21,000 (IGST)
(ii) ₹ 15,50,000 × 2% = ₹ 31,000 (IGST)

Super 75
Value of supply
Question 73
Samriddhi Advertisers conceptualized and designed the advertising campaign for a new
product launched by New Moon Pvt Ltd. for a consideration of Rs 5,00,000. Samriddhi
Advertisers owed Rs 20,000 to one of its vendors in relation to the advertising service provided
by it to New Moon Pvt Ltd. Such liability of Samriddhi Advertisers was discharged by New Moon
Pvt Ltd. New Moon Pvt Ltd. delayed the payment of consideration and thus, paid Rs 15,000 as
interest. Assume the rate of GST to be 18%. Determine the value of taxable supply made by
Samriddhi Advertisers.
Solution:
Computation of value of taxable supply
Particulars Amount
Service Charges 500000
Payment made by New Moon Pvt. Ltd to vendor of Samriddhi Advertisers 20000
[Liability of the supplier being discharged by recipient, is includible in the value
in terms of sec 15(2)(b)]
Interest for delay in payment of consideration [Includible in the value in terms of 12712
section 15(2)(d) – Refer note below] (rounded off)
Value of taxable Supply 5,32,712
Note:
The interest for delay in payment of consideration will be includible in the value of supply but the
time of supply of such interest will be the date when such interest is received in terms of section
13(6). Such interest will be taken to be inclusive of GST and the value will be computed by
makingback calculations [Interest /100 + tax rate) x 100].
Question 74
Red Pepper Ltd., Delhi, a registered supplier, is manufacturing taxable goods. It provides the
following details of taxable inter-State supply made by it for the monthof March, 20XX.
Particulars Amount
(Rs)
List price of goods supplied inter-state (exclusive of taxes) 15,00,000
Subsidy received from Central Government for supply of taxable goods to 2,10,000
Government School.
Subsidy received from a NGO for supply of taxable goods to an old age 50,000
home
Tax levied by Municipal Authority 20,000
Packing charges 15,000
Late fee paid by the recipient of supply for delayed payment of invoice 6,000
The list price of the goods takes into account the two subsidies received. However, the other
charges/taxes/fee are charged to the customers over and above the list price. Calculate the
value of taxable supply made by M/s Red Pepper Ltd. for the month of March, 20XX. Rate of
IGST is 18%.
Super 75
Answer
Computation of value of taxable supply made by Red Pepper Ltd. for the month of March, 20XX
Particulars Rs
List price of the goods 15,00,000
Add: Subsidy amounting to Rs 2,10,000 received from Central Government NIL
[Since subsidy is received from Government, the same is not includible in the
value in terms of section 15 of the CGST Act, 2017]
Subsidy received from NGO 50,000
[Since subsidy is received from a non-Government body, the same is includible
in the value in terms of section 15 of the CGST Act, 2017]
Tax levied by the Municipal Authority 20,000
[Includible in the value as per section 15 of the CGST Act, 2017]
Packing charges 15,000
[Being incidental expenses, the same are includible in the value as per section 15 of
the CGST Act, 2017]
Late fees paid by recipient of supply for delayed payment [Includible in the 5,085
value as per section 15 of the CGST Act, 2017] (assumed to be inclusive of
taxes) [Rs 6,000 x 100/118] rounded off
Value of taxable supply 15,90,085
Question 75
Candy Blue Ltd., Mumbai, a registered supplier, is manufacturing Chocolates and Biscuits. It
provides the following details of taxable inter-state supply made by it for the month of October,
2017.
Particulars Amoun (Rs)

List price of goods supplied inter-state 12,40,
Items already adjusted in the price given in (i) above: 000
(1) Subsidy from CG for supply of biscuits to Government School.
(2) Subsidy from Trade Association for supply of qualitybiscuits. Items not 1,20,000
adjusted in the price given in (i) above:
(3) Tax levied by Municipal Authority 30,000
(4) Packing Charges 24,000

(5) Late fee paid by the recipient of supply for delayedpayment of invoice 12,000
5,000
Calculate the value of taxable supply made by M/s Candy Blue Ltd. for the month of
October, 2017.
Answer
Computation of value of taxable supply made by Candy Blue Ltd. for the month of October, 2017
Particulars Rs
List Price of the goods 12,40,000
Add: Subsidy amounting to Rs 1,20,000 received from Central Government NIL
[Since subsidy is received from Government, the same is not includible in
the value in terms of section 15 of the CGST Act, 2017.]
Super 75
Subsidy received from Trade Association [Since subsidy is received 30,000
from
a non-Government body, the same is includible in the value in terms of
section 15 of the CGST Act, 2017.]
Tax levied by the Municipal Authority [Includible in the value as per 24,000
section 15 of the CGST Act, 2017]
Packing charges [Being incidental expenses, the same are includible in 12,000
the value as per section 15 of the CGST Act, 2017]
Late fees paid by recipient of supply for delayed payment [Includible in
the value as per section 15 of the CGST Act, 2017] 5,000
Value of taxable supply 13,11,000
Note: - In the above solution, list price of the goods and late fee for delayed payment of
invoice have been assumed to be exclusive of taxes.
Question 76
M/s. Flow Vlow sold a machine to BP Ltd. It provides the following particulars in this regard:-
Sl No. Particulars Rs
(i) Price of the machine (excluding taxes and incidental charges) 30,000
(ii) Machine was subject to third party inspection. The inspection charges 5,000
have been directly paid by BP Ltd. to the inspection agency
(iii) Freight charges for delivery of the machine (M/s Flow Vlow has agreed 2,000
to
deliver the goods at BP Ltd’s premises)
(iv) Subsidy received from State Government on sale of machine under skill 5,000
Development Programme. [The subsidy is directly linked to the price].
(v) Discount of 2% is offered to BP Ltd. on the price and recorded in the
invoice
Note: Items given in S. No. (ii) to (v) have not been considered in the price at S. No. (i).
Determine the value of taxable supply made by M/s Flow Pro to BP Ltd.
Solution:
Particulars Rs
Price of the machine (Price Rs 30,000 - Rs 5,000 subsidy) [Note-1] 25,000
Third party inspection charges [Note-2] 5,000
Freight charges for delivery of the machine value [Note-3] 2,000
Total 32,000
Less: Discount @ 2% on ` 30,000 being price charged to BP Ltd. [Note-4] 600
Value of taxable supply 31,400
Notes:
1. Since subsidy is received from State Government, the same is deductible to arrive at taxable
value under section 15 of the CGST Act, 2017.
2. Any amount that the supplier is liable to pay in relation to such supply but has been incurred
by the recipient, is includible in the value of supply under section 15 of the CGST Act, 2017.
3. Since arranging freight is the liability of supplier, it is a case of composite supply and thus,
freight charges are added in the value of principal supply.
Discount given before or at the time of supply if duly recorded in the invoice is deductible from
the value of supply under section 15 of the CGST Act, 2017.
Super 75
Payment Of Tax
Question 77
1. What is a CPIN?
2. What is a CIN and what is its relevance?
3. What is an E-FPB?
Solution:
1. CPIN stands for Common Portal Identification Number (CPIN) given at the time of
generation of challan. It is a 14-digit unique number to identify the challan. As stated
above, the CPIN remains valid for a period of 15 days.
2. CIN stands for Challan Identification Number. CIN is generated by the authorized banks/
Reserve Bank of India (RBI) when payment is actually received by such authorized banks
or RBI and credited in the relevant government account held with them. It is an
indication that the payment has been realized and credited to the appropriate
government account. CIN is communicated by the authorized bank to taxpayer as well
as to GSTN
3. E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks
which are authorized to collect payment of GST. Each authorized bank will nominate
only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open
accounts under each major head for all governments. Total 38 accounts (one each for
CGST, IGST and one each for SGST for each State/UT Govt.) will have to be opened. Any
amount received by such E-FPB towards GST will be credited to the appropriate account
held by such EFPB. For NEFT/RTGS Transactions, RBI will act as E-FPB.
Question 78
Rule 86B restricts the use of Input Tax Credit (ITC) available in the Electronic Credit Ledger for
discharging output tax liability. List down the exceptions to the rule 86B
Answer
Rule 86B of the CGST Rules, 2017 restricts the use of ITC available in the Electronic Credit
Ledger for discharging output tax liability by a registered person. Exceptions to rule 86B are as
follows:
(1) Where the said person/proprietor/karta/managing director/any of its two partners,
whole-time directors, members of Managing Committee of Associations or Board of
Trustees, as the case may be, have paid more than ₹ 1 lakh as income tax in each of the
last 2 financial years.
(2) Where the registered person has received a refund of more than ₹ 1 lakh in the
preceding FY on account of unutilised ITC in case of
(i) zero rated supplies made without payment of tax or
(ii) inverted duty structure.
(3) Where the registered person has discharged his liability towards output tax through the
electronic cash ledger for an amount which is in excess of 1% of the total output tax
liability, applied cumulatively, upto the said month in the current FY.
(4) Where the registered person is Government Department, Public Sector Undertaking,
Local authority or Statutory body. Said restriction may be removed by Commissioner/
Super 75
authorised officer after required verifications and safeguards.
Question 79
R Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to Sahil Traders
and Jaggi Motors Ltd. located in Ahmedabad (Gujarat) and Pune (Maharashtra)
respectively. Raman
Ltd. has furnished the following details for the current month:
S. No. Particulars Sahil Traders (Rs) Jaggi Motors Ltd.

(Rs)
(i) Price of the goods (excluding GST) 20,000 15,000
(ii) Packing charges 600
(iii) Commission 400
(iv) Weighment charges 1,000
(v) Discount for prompt payment 500
(recorded in the invoice)
Items given in points (ii) to (v) have not been considered while arriving at price of the
goods given in point (i) above.
Compute the GST liability [CGST & SGST or IGST, as the case may be] of Raman Ltd. for the
given month. Assume the rates of taxes to be as under:
Particulars Rate of tax
Central tax (CGST) 9%
State Tax (SGST) 9%
Integrated tax (IGST) 18%
Make suitable assumptions, wherever necessary.
Note: The supply made to Sahil Traders is an inter-Statesupply.
Answer:
Computation of GST liability
S. No. Particulars Sahil Traders (Rs) Jaggi motors Ltd.
(Rs)
(i) Price of goods 20,000 15,000
(ii) Add: Packing charges (Note-1) 600
(iii) Add: Commission (Note-1) 400
(iv) Add: Weighment charges (Note-1) - 1,000
(v) Less: Discount for prompt
payment (Note-2) - 500
Value of taxable supply 21,000 15,500
IGST payable @ 18% (Note-3) 3,780

CGST payable @ 9% (Note-4) 1,395
SGST payable @ 9% (Note-4) 1,395
Notes:
a) Incidental expenses, including commission and packing, charged by supplier torecipient
of supply is includible in the value of supply. Weighment charges are also incidental
Super 75
expenses,
hence includible in the value of supply [Section 15 of the CGST Act, 2017].
b) Since discount is known at the time of supply, it is deductible from the value in terms of
c) Since supply made to Sahil Traders is an inter-State supply, IGST is payable in terms of
section 5 of the IGST Act, 2017.
d) Since supply made to Jaggi Motors Ltd. is an intra-State supply, CGST & SGST ispayable on
the same.
Additional Practice Qs 1
(i) Tirupati Traders, a registered supplier of goods, pays GST [CGST & SGST or IGST, as the case
may be] under regular scheme. It has furnished the following particulars for a tax period:-
Particulars Rs
Value of intra-State supply of goods 12,000
Value of intra-State purchase of goods 10,000
Note:
(i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.
(ii) Both inward and outward supplies are exclusive of taxes, wherever applicable.
(iii) All the conditions necessary for availing the input tax credit have been fulfilled.
Compute the net GST payable by Tirupati Traders during the given tax period assuming that
there is no opening balance of input tax credit (ITC). Make suitable assumptions wherever
required.
(ii) Govind, a registered supplier, is engaged in providing services in the neighbouring States
from his registered office located in Mumbai. He has furnished the following details in
respect of the inward and outward supplies made during a tax period:-
Particulars (Rs)
Inter-State supply of services 1,80,000
Receipt of goods and services within the State 1,00,000
Assume the rates of taxes to be as under:-

Particulars Rate
CGST 9%
SGST 9%
IGST 18%
Note:
(i) Both inward and outward supplies are exclusive of taxes, wherever applicable.
(ii) All the conditions necessary for availing the input tax credit have been fulfilled.
Compute the net GST payable by Govind during the given tax period. Make suitable
assumptions if required.
Answer:
(i) Computation of Net GST payable

Particulars CGST (Rs) SGST (Rs)
GST payable on intra-State supply of goods 1,080 1,080
[Being an intra-State supply, CGST and SGST is payable (Rs 12,000 × 9%) (Rs 12,000 × 9%)
Super 75
on
the same]
Less: Input tax credit (ITC) on intra-State purchase of 900 900
goods [CGST and SGST paid on the intra-State
purchases of goods]
(Rs 10,000 × 9%) (Rs 10,000x9%)
Net GST payable 180 180
(ii) Computation of net GST payable by Govind

Particulars Rs
IGST @ 18% payable on inter-State supply of services [Being an inter- 32,400
State supply, IGST is payable on the same in terms of section 5 of the [1,80,000 × 18%]
IGST Act, 2017]
Less: ITC of CGST @ 9% paid on intra-State receipt of goods and services 9,000
[Cross utilisation of CGST towards IGST] [1,00,000 × 9%]
Less: ITC of SGST @ 9% paid on intra-State receipt of 9,000
goods and services [1,00,000 × 9%]
[Cross utilisation of SGST towards IGST]
Net GST payable in cash 14,400
Note:
1. CGST shall first be utilised towards payment of CGST and the amount remaining, if
any, be utilised towards the payment of IGST [Section 49 of the CGST Act, 2017].
2. SGST shall first be utilised towards payment of SGST and the amount remaining, if any,
may be utilised towards the payment of IGST [Section 49 of the CGST Act, 2017].
M/s. Shri Durga Corporation Pvt. Ltd. is a supplier of goods and services at Kolkata. It
has furnished the following information for the month of February, 20XX:
SN Particulars Amount
(Rs)
(i) Intra-State sale of taxable goods including Rs 1,00,000 received as 4,00,000
advance in January, 20XX, the invoice for the entire sale value is
issued on 15th February, 20XX
(ii) Goods purchased from unregistered dealer on 20th February, 20XX 1,00,000
(Inter-State purchases are worth Rs 30,000 and balance purchases are
intra-State)
(iii) Services provided by way of labour contracts for repairing a single 1,00,000
residential unit otherwise than as a part of residential complex (It is
an intra-State transaction)
(iv) Goods transport services received from a GTA. GTA is paying tax @12% (It 2,00,000
is an inter-State transaction)
Compute net GST liability (CGST, SGST or IGST, as the case may be) of M/s Shri Durga
Corporation Pvt. Ltd. for the month of February, 20XX.
Assume the rates of GST, unless otherwise specified, as under:
CGST 9%
SGST 9%
lGST 18%
Super 75
Note:-
(i) The turnover of M/s. Shri Durga Corporation Pvt. Ltd. was Rs 2.5 crore in the
previous financial year.
(ii) All the amounts given above are exclusive of taxes.
Answer
Computation of GST liability of M/s. Shri Durga Corporation Pvt. Ltd. for the month of February,
20XX
Particulars Value of CGST SGST IGST
Supply (Rs) (Rs) (Rs)
Intra -State sale of taxable goods [Note-1] 4,00,000 36,000 36,000
Goods purchased from unregistered dealer on Nil Nil Nil
20th February, 20XX [Note-2]
Services rendered by way of labour contracts for 1,00,000 9,000 9,000

repairing a single residential unit otherwise than
as a part of residential complex [Note-3]
Goods transport services received from GTA 2,00,000 Nil
[Note-4]
Total GST liability for the month of February, 20XX 45,000 45,000 Nil
Less: Input tax credit available [Note-5] (Rs 2,00,000 x 12%) 24,000
Net GST liability for the month of February, 20XX 21,000 45,000 Nil
Notes:
1. Section 12 of CGST Act, 2017 read with Notification No. 66/2017 CT dated 15.11.2017
provides that the time of supply for all suppliers of goods (excluding composition
suppliers) is the time of issue of invoice, without any turnover limit. Thus, liability to pay
tax on the advance received in January, 20XX will also arise in the month of February,
when the invoice for the supply is issued.
2. All intra-State and inter-State procurements made by a registered person from

unregistered person have been exempted from reverse charge liability, without any
upper limit for daily procurements upto 30.06.2018. [Notification No. 8/2017 CT (R) dated
28.06.2017 as amended and Notification No. 32/2017 IT(R) dated 13.10.2017 as
amended]
3. Services by way of pure labour contracts of construction, erection, commissioning, or

installation of original works pertaining to a single residential unit otherwise than as a
part of a residential complex are exempt vide Notification No. 12/2017 CT(R) dated
28.06.2017. Labour contracts for repairing are thus, taxable.
4. As per Notification No. 13/2017 CT(R) dated 28.06.2017, GST is payable by the recipient
on reverse charge basis on the receipt of services of transportation of goods by road
from a goods transport agency (GTA) provided such GTA has not paid GST @ 12%. Since
in the given case, services have been received from a GTA who has paid GST @ 12%,
reverse charge provisions will not be applicable.
Input tax credit is available for the services received from GTA. The input tax credit of IGST shall
Super 75
be used against IGST and then against CGST and SGST in the any order any propotion.
Mr. Ekaant, a supplier registered in Delhi, is engaged in the business of sale and purchase of
plastic raincoats. He furnishes the following information pertaining to inward/outward supply
made by him for the month of July, 20XX:
Particulars Amount
(Rs in lakh)
Value of inter-State outward supply to registered persons 30
Value of intra-State outward supply to registered persons 50
Value of intra-State outward supply to unregistered persons 15
Value of intra-State inward supply from registered persons 10
Value of inter-State inward supply from registered persons 5
Value of intra-State inward supply from unregistered persons 2
Following additional information is also provided by Mr. Ekaant:-

Particulars Amount (Rs in
lakh)
IGST credit on capital goods purchased in the month of July 1.5
CGST/ SGST credit on other inward supplies [including credit of 0.5
Rs 5,000 (CGST and SGST each) on account of membership of a club] (CGST and SGST
each)
Availed consultancy services from Mr. Sujit, lawyer located in Delhi 1
[Intra-State services]
the amount of ITC brought forward in the month of July, 20XX is as

under:- CGST: Rs 2 lakh
SGST: Rs 2 lakh
IGST: Rs 5 lakh
Calculate the net GST liability (CGST and SGST or IGST, as the case may be) to be paid in
cash for the month of July, 20XX by assuming the rates of GST as under:
CGST 9%
SGST 9%
IGST 18%
Notes: -
1. All the amounts given above are exclusive of taxes.
2. All the conditions necessary for availing the ITC have been fulfilled.
Super 75
Answer
Computation of net GST liability of Mr. Ekaant
Particulars Value CGST (Rs) SGST (Rs) IGST (Rs)
(Rs)
Total tax liability
Value of intra-State legal consultancy 1,00,000 9,000 9,000 -
services i.e. inward supplies liable to
reverse charge mechanism (to be paid
in cash) (A)
[Note-1]
Value of inter-State outward 30,00,000 - - 5,40,000

supplies (B1)
Value of intra-State outward supplies to 65,00,000 5,85,000 5,85,000 -
registered as well as unregistered
persons (B2) (Rs
50,00,000+ Rs 15,00,000)
Total (B) = (B1) +(B2) 5,85,000 5,85,000 5,40,000

Input tax Credit
Brought forward ITC 2,00,000 2,00,000 5,00,000
Value of intra-State inward supplies 10,00,000 90,000 90,000
from registered person [Note-2]
Value of inter-State inward supplies 5,00,000 - - 90,000
from registered person [Note-2]
Value of intra-State inward supplies 2,00,000 - - -
from unregistered person [Note-3]
IGST credit of capital goods [Note- 1,50,000
2]
Credit on other inward supplies 45,000 45,000 -
purchased in the month of July less
credit on membership of a club
[Note-2 & 4]
Credit of legal consultancy services 9,000 9,000 -

[Note-2]
Total ITC 3,44,000 3,44,000 7,40,000
Super 75
Set off and Computation of Net GST Liability
Particulars IGST CGST SGST
Output Tax Liability 540000 585000 585000
Less: ITC of IGST (540000) (200000) 0
Less: ITC of CGST (344000)
Less: ITC of SGST (344000)
Liability after set off Nil 41000 241000
RCM liability payable in cash 9000 9000
Net GST liability to be paid in cash Nil 50000 250000
Notes:-
3. Services supplied by an individual advocate to any business entity located in the
taxable territory by way of legal services, directly or indirectly are taxable under
reverse charge mechanism. Thus, tax is payable by the recipient (Mr. Ekaant) on said
services to the Government.
Further, as per section 49(4) of the CGST Act, 2017, amount available in the electronic
credit ledger [ITC amount] may be used for making payment towards output tax.
However, tax payable under reverse charge is not an output tax in terms of section
2(82) of the CGST Act, 2017. Therefore, tax payable under reverse charge cannot be
set off against the input tax credit and thus, will have to be paid in cash.
4. Every registered person is entitled to take credit of input tax charged on any inward
supply of goods and/or services which are used or intended to be used in the course
or furtherance of his business in terms of section 16 of CGST Act, 2017. Further “input
tax” in relation to a registered person includes the tax payable under reverse charge
mechanism in terms of section 2(62) of the CGST Act, 2017.
5. Intra-State supplies received by a registered person from any unregistered supplier,

are exempt from the whole of the central tax leviable thereon under section 9(4) till
30.09.2019 [Notification No.8/2017 CT (R) dated 28.06.2017]. Since no tax has been
paid, so no credit is available.
6. Input tax credit is not allowed in respect of membership of a club in terms of section
17(5) of CGST Act, 2017.
Super 75
Mr. Kanhaiya, a supplier of goods, pays GST under regular scheme. He is not eligible for any
threshold exemption. He has made the following outward taxable supplies in the month of
January, 2018:-
Particulars Amount
Intra-state supplies of goods 6,00,000
Inter-state supplies of goods 2,00,000
He has also furnished following information in respect of purchases made by him from
registered dealers during January, 2018:-
Particulars Amount
Intra-state purchase of goods 4,00,000
Inter-state purchase of goods 50,000
Balance of ITC available at the beginning of the January 2018:-

CGST 15000
SGST 35000
IGST 20000
Note:
e) Rate of CGST, SGST and IGST to be 9%, 9% and 18% respectively, onboth
inward and outward supplies.
f) Both inward and outward supplies given above are exclusive oftaxes,
wherever applicable.
g) All the conditions necessary for availing the ITC have been fulfilled. Compute the net
GST payable by Mr. Kanhaiya for the month of January, 2018.
Answer:
Computation of net GST payable by Mr. Kanhaiya for the month of January, 2018
S.No. Particulars (Rs.) GST (Rs.)
(i) Intra-State supply of goods CGST @ 9% on Rs.
6,00,000 54,000
1,08,000
SGST @ 9% on Rs. 6,00,000 54,000
(ii) Inter-State supply of goods IGST @ 18% on Rs.

36,000
2,00,000
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Computation of total ITC
Particulars CGST @ 9% SGST @ 9% IGST@18%
(Rs.) (Rs.) (Rs.)
Opening ITC 15,000 35,000 20,000
Add: ITC on Intra-State purchases of goods 36,000 36,000
valuing Rs. 4,00,000
Add: ITC on Inter-State purchases of goods
valuing Rs. 50,000 9,000
Total ITC 51,000 71,000 29,000
Computation of GST payable from cash ledger

Particulars IGST @ 18% CGST @ 9% SGST @ 9%
GST payable 36000 54,000 54,000
Less: ITC of IGST (29000)
Less: ITC of CGST (51,000)
Less: ITC of SGST (7000) (54,000)
Net GST payable Nil 3,000 Nil
Namo Shankar Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to
Narad Traders and Nandi Motors Ltd. located in Ahmedabad (Gujarat) and Pune
(Maharashtra) respectively. Namo Shankar Ltd. has furnished the following details for the
current month:
S. No. Particulars Narad Traders Nandi Motors

(Rs.) Ltd. (Rs.)
(v) Discount for prompt payment (recorded in 1,000
the invoice
Items given in points (ii) to (v) have not been considered while arriving at price of the goods
given in point (i) above.
Compute the GST liability [CGST & SGST or IGST, as the case may be] of Namo Shankar Ltd.
for the given month. Assume the rates of taxes to be as under:

State Tax (SGST) 9%

Note: The supply made to Narad Traders is an inter-State
supply.
Super 75
Answer:
S. Particulars Narad Traders Nandi Motors
No. (Rs.) Ltd. (Rs.)
(v) Less: Discount for prompt payment (Note-2) - 1,000
Notes:
1. Incidental expenses, including commission and packing, charged by supplier to

recipient of supply is includible in the value of supply. Weighment charges are also
incidental expenses, hence includible in the value of supply [Section 15 of the CGST Act,
2017].
2. Since discount is known at the time of supply, it is deductible from the value in terms of
3. Since supply made to Narad Traders is an inter-State supply, IGST is payable in terms of
4. Since supply made to Nandi Motors Ltd. is an intra-State supply, CGST & SGST is payable
on the same.
M/s. Grey, a registered taxable person under regular scheme provides following information
in respect of supplies made by it during the month of April, 2019:
Particulars (All
amount in
rupees)
(i) Inter-state supply of goods 1,00,000
(ii) Intra-state supply of 500 packets of detergent @ Rs. 400 each alongwith a
plastic bucket worth Rs. 100 each with each packet, being a mixed supply.
(Rate of GST on detergent is 18% and on plastic bucket is 28%)
(iii) Supply of online educational journals to M/s. Pinnacle, a private coaching 50,000
centre providing tuitions to students of Class X-XII, being intra-state supply.
Super 75
M/s. Grey has also received the following inward supplies:
(iv) Inter-state supply of goods (out of which invoice for goods worth Rs. 70,000
20,000 is missing and no other tax paying document is available)
(v) Repairing of bus with seating capacity of 20 passengers used to transport its
employees from their residence, being intra-state supply. 50,000
Details of opening balances of ITC as on 1-·4-2019 are as follows:

CGST 5,000
SGST 5,000
IGST 40,000
Following additional information is provided :

(a) Rate of GST in respect of all inward and outward supplies except item (ii) above is 18%. i.e.
CGST and SGST @ 9% and IGST @ 18%.
(b) All figures mentioned above are exclusive of taxes.
(c) All the conditions for availing the ITC have been fulfilled except specifically given and M/s.
Grey is not eligible for any threshold exemption.
Answer:
Computation of minimum net GST payable in cash by M/s. Grey for the month of April, 2019
Particulars Value (Rs.) CGST (Rs.) SGST (Rs.) IGST (Rs.)
Total tax liability

Inter-State supply of goods 1,00,000 18,000
Intra-State supply of 500 packets of 2,00,000 28,000 28,000
detergents along with a plastic bucket (500 x 400) (2,00,000 (2,00,000
[Note-1] x 14%) x 14%)
Supply of online educational journal to 50,000 4,500 4,500
private coaching centre [Note-2] (50,000 x (50,000 x
9%) 9%)
Total tax liability (A) 32,500 32,500 18,000
Input tax credit (ITC)
Brought forward ITC 5,000 5,000 40,000
Inter-State purchase of goods [Note-3] 50,000 9,000
Repairing of bus with seating capacity of 50,000 4,500 4,500
20 passengers [Note-4]
Total ITC (B) 9,500 9,500 49,000
Minimum net GST payable in cash
Total tax liability 32,500 32,500 18,000
Less: Set off of IGST liability from IGST (18,000)
credit
Super 75
Set off IGST credit against CGST and SGST (23,000) (8,000)
liability in any order and in any proportion
Set off of CGST and SGST credit against CGST (9,500) (9,500)
and SGST liability respectively CGST SGST
Minimum net GST payable in cash Nil 15,000 Nil
Notes:-
1. Supply of detergent and bucket together with a single price of Rs. 400 is a mixed supply.
Being a mixed supply comprising of two supplies, it shall be treated as supply of that
particular supply that attracts highest rate of tax (28%).
2. Supply of online educational journal is exempt only when the same is provided to an
educational institution which provides a qualification recognised by law. Since, the private
coaching centre does not provide any recognised qualification, the supply of online
educational journals to the same will be taxable.
3. ITC can be taken only on the basis of a valid tax paying document. Thus, ITC will not be
available on goods for which the invoice is missing.
4. ITC on motor vehicles for transportation of persons with seating capacity > 13 persons
(including the driver) used for any purpose is allowed. Further, ITC is allowed on repair and
maintenance services relating to motor vehicles, ITC on which is allowed.
Note: Under the amended position of law, the IGST credit, after being set off against IGST
liability, can be utilised against CGST and SGST liability in any order and in any proportion.
Thus, there cannot be one answer for the minimum net CGST and SGST payable in cash
[i.e. GST liability] as the amount of CGST and SGST liabilities are the same as also the
amount of ITC for CGST and SGST is also the same.
KNK Ltd., a registered supplier of Mumbai is a manufacturer of heavy machines. Its outward
supplies (exclusive of GST) for the month of January, 2020 are as follows:
S. No. Particulars Amount

(Rs.)
(i) Inter-State 85,00,000
(ii) Intra-State 15,00,000
Applicable rate of CGST, SGST and IGST on outward supply are 9%, 9% and 18%
respectively. Details of GST paid on inward supplies during the month of January, 2020 are
as follows:
S. No. Particulars CGST SGST

paid (Rs.) paid (Rs.)
(i) Raw material A 60,000 60,000
(of which 70% of inputs procured were used and
30% were in stock at the end of the January, 2020)
Super 75
(ii) Raw material B 50,000 50,000
(of which 90% material received in factory and
remaining material completely damaged due to a
road accident on the way to factory. There was no
negligence on the part of
the KNK Ltd.)
(iii) Construction of pipelines laid outside the factory 30,000 30,000

premises
(iv) Insurance charges paid for trucks used for 55,000 55,000
transportation of goods.
Additional Information:
(i) There is no opening balance of any input tax credit and all the conditions necessary
for availing the input tax credit (ITC) have been fulfilled.
(ii) Details of GST paid on inward supplies are available in GSTR-2A except for item (i) i.e.
Raw Material A, for which supplier has not filed its GSTR-1 for the month of January
2020, hence corresponding input tax credit (ITC) is not reflecting in GSTR-2A of KNK Ltd.
in January, 2020.
Compute the following:
(i) Amount of eligible input tax credit (ITC) available for the month of January, 2020.
(ii) Minimum net GST payable in cash, for the month of January, 2020 after using available
input tax credit.
Working notes should form part of your answer.
Answer:
(i) Computation of amount of eligible ITC available for the month of January, 2020
S. No. Particulars CGST (Rs.) SGST (Rs.)

(i) Raw materials B (90%) [Note-1] 45,000 45,000
(ii) Construction of pipelines laid outside the factory Nil Nil
premises [Note-2]
(iii) Insurance charges paid for trucks used for 55,000 55,000
transportation of goods [Note-3]
(iv) Raw materials A [Note-4] Nil Nil
(v) Eligible ITC on invoices the details of which are 1,00,000 1,00,000
available in GSTR-2A (45,000 + (45,000 +
55,000) 55,000)
(vi) ITC on invoices the details of which are not available in 10,000 10,000
GSTR-2A, i.e. the invoices which have not been
uploaded by the suppliers in their GSTR-1 [Note-4]
Total eligible ITC 1,10,000 1,10,000

Super 75
Notes:
a) ITC on goods destroyed is blocked under section 17 of the CGST Act, 2017.
b) ITC on works contract services availed for construction of plant and machinery is
allowed but pipelines laid outside the factory premises are excluded from the definition
of plant and machinery and hence, ITC thereon is blocked.
c) ITC on motor vehicles used for transportation of goods is allowed. Further, ITC is
also allowed on insurance services relating to motor vehicles, ITC on which is
allowed.
d) Where invoice has not been uploaded by the supplier in its GSTR-1, 10% of the eligible
ITC available in respect of the uploaded invoices can be claimed by the recipient, i.e.
10% of Rs. 1,00,000.
ii. Computation of minimum net GST payable in cash for the month of January, 2020
Particulars Value CGST @ 9% SGST @ IGST @ 18%

(Rs.) (Rs.) 9% (Rs.) (Rs.)
Inter-State outward supplies 85,00,000 15,30,000
Intra-State outward supplies 15,00,000 1,35,000 1,35,000
Total output tax payable 1,35,000 1,35,000 15,30,000
Less: Set off of CGST and SGST credit (1,10,000) (1,10,000)
against CGST and SGST
liability respectively
Minimum net GST payable in cash 25,000 25,000 15,30,000
X Electronics is a registered manufacturer of electrical appliances.
It made contract with dealers, that purchase of air conditioners of capacity 1.5 ton in the
month of October, 2020 of quantity of more than 50 units will entitle them for 10% discount.
Inter-State supply made during the month of October 2020 is Rs. 50,00,000 Details of Intra-
State supply:
Particulars Amount (Rs.)

Supply of Microwave Oven 15,00,000
Supply of Refrigerators with Stabilizers being a mixed supply, rate of GST on 40,00,000
Refrigerator is 28% (14% CGST & 14% SGST), rate of GST on Stabilizer is 18% (9%
CGST & 9% SGST)
Supply of Air Conditioners of capacity 1.5 Ton @ Rs. 50,000 per AirConditioner 50,00,000
Intra-State inward supplies are :

Particulars Amount (Rs.)
Raw material 20,00,000
Paid Gym membership for employees 50,000
Truck purchased for transportation of goods 30,00,000
Super 75
X Electronics made supply of Air Conditioners (capacity 1.5 ton) to only one dealer named Mr. L.
Gym membership for employees is not obligatory for X Electronics under any law.
Opening Balance of ITC is as under:

CGST: Rs. 58,000
SGST: Rs. 70,000
IGST: Rs. 10,00,000
Note:
(i) Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively for both inward and
outward supplies except where specifically provided.
(ii) Both inward and outward supplies are exclusive of taxes.
(iii) All the conditions for availing the ITC have been fulfilled.
Compute the Net GST payable in cash by X Electronics for the month of October, 2020.
Solution:
Computation of net GST payable in cash by X Electronics for October 2020
S. Particulars Amount (Rs.) CGST SGST IGST

No. (Rs.) (Rs.) (Rs.)
I Intra-State supply
Supply of microwave oven 15,00,000 1,35,000 1,35,000
Supply of refrigerators with 40,00,000 5,60,000 5,60,000
stabilizers
[Being mixed supply, the
supply shall be treated as a
supply of that particular
supply which attracts the
highest rate of tax and taxed
accordingly. Thus, it will be
taxed @ 14% CGST and 14%
SGST.]
Supply of 100 (Rs. 50 lakh/ Rs. 45,00,000 4,05,000 4,05,000
50,000) air conditioners
[Since 100 air conditioners [Rs. 50,00,000 x
have been supplied, 90%]
discount @ 10% will be
available.]
II Inter-State supply @ 18% 50,00,000 9,00,000
Total outward tax liability 11,00,000 11,00,000 9,00,000
Less: Input Tax Credit (Refer

Working Note below)
IGST credit first utilized towards 1,00,000 9,00,000
payment of IGST. Remaining (IGST) (IGST)
amount can be utilized
towards CGST and SGST in any
order and in any proportion
Super 75
CGST credit set off against 5,08,000 5,20,000
CGST liability and SGST (CGST) (SGST)
credit set off against SGST
liability as CGST credit
cannot be utilized towards
payment of SGST and vice
versa.
Net GST liability payable in 4,92,000 5,80,000 Nil
cash
Working Note
Computation of ITC available with X Electronics

(Rs.) (Rs.) (Rs.)
Opening balance of ITC 58,000 70,000 10,00,000
Intra-State inward supplies
Raw material 20,00,000 1,80,000 1,80,000
Gym membership for employees 50,000 Nil Nil
[ITC on membership of a health and
fitness centre is blocked if there is no
statutory obligation for the employer to
provide the same.]
Truck purchased for transportation of 30,00,000 2,70,000 2,70,000
goods
[ITC on motor vehicles used for
transportation of goods is not blocked2.]
Total ITC 5,08,000 5,20,000 10,00,000
Note: In the above answer, tax payable in cash has been computed by setting off the IGST credit
against CGST liability. However, since IGST credit can be set off against CGST and SGST liability in any
order and in any proportion, the same can be set off against CGST and/or SGST liabilities in different
other ways as well. In all such cases, net CGST and net SGST payable in cash will differ though the
total amount of net GST payable (Rs. 10,72,000) in cash will remain the same.
Namo Shankar Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to
Narad Traders and Nandi Motors Ltd. located in Ahmedabad (Gujarat) and Pune
(Maharashtra) respectively. Namo Shankar Ltd. has furnished the following details for the
current month:
S. Particulars Narad Traders Nandi Motors

No. (Rs.) Ltd. (Rs.)
Super 75
(v) Discount for prompt payment (recorded in the 1,000
invoice
Items given in points (ii) to (v) have not been considered while arriving at price of the
goods given in point (i) above.
Compute the GST liability [CGST & SGST or IGST, as the case may be] of Namo Shankar Ltd. for the
given month. Assume the rates of taxes to be as under:

State Tax (SGST) 9%

Note: The supply made to Narad Traders is an inter-State
supply.
Answer:
S. No. Particulars Narad Traders Nandi Motors

(Rs.) Ltd. (Rs.)
(v) Less: Discount for prompt payment (Note-2) - 1,000
Notes:
1. Incidental expenses, including commission and packing, charged by supplier to

recipient of supply is includible in the value of supply. Weighment charges are also
incidental expenses, hence includible in the value of supply [Section 15 of the CGST Act,
2017].
2. Since discount is known at the time of supply, it is deductible from the value in terms of
3. Since supply made to Narad Traders is an inter-State supply, IGST is payable in terms of
4. Since supply made to Nandi Motors Ltd. is an intra-State supply, CGST & SGST is payable
on the same.
Super 75
XY of Kolkata is engaged in supply of various goods and services. It pays GST under regular
scheme. The following information is provided by it for the month of July:
Payments Amount Receipts Amount

(Rs.) (Rs.)
Inter-State purchases of office 1,40,000 Inter-State supply of office 2,00,000
stationery stationery
Repairing of lorry used to transport 1,00,000 Intra-State supply of 500 combi 4,00,000
goods from warehouse to clients’ packs containing one calculator
location [Intra-State and one diary
supply]
Intra-State supply of services of 1,00,000

business correspondent to
Shubhvidhi Bank with respect
to accounts in its urban area
branch
The following additional information is provided by ‘XY’ in relation to the above receipts and
payments:
a) 10% of the inter-State supply of office stationery are made to unregistered persons.
b) Each combi pack (containing a calculator and a diary) is priced at Rs. 800. The
calculator and the diary are individually priced at Rs. 700 and Rs. 200 respectively.
c) An invoice of Rs. 40,000 towards purchase of office stationery is missing and no
other tax paying document is available in respect of such goods.
d) All the figures mentioned above are exclusive of taxes, wherever applicable.
e) Rates of CGST, SGST and IGST for all services, office stationery and calculator are 9%,
9% and 18% respectively. Rates of CGST, SGST and IGST for diary are 14%, 14% and
28% respectively.
f) Subject to the information given above, all the necessary con ditions for availing
input tax credit have been fulfilled.
Details of opening balances of input tax credit as on 1st July is given here under:
Tax Amount
(Rs.)
CGST 5,000
SGST 5,000
IGST 80,000
Compute the minimum net GST [CGST, SGST or IGST, as the case may be] payable in
cash by ‘XY’ for the month of July.
Super 75
Answer:
Computation of minimum net GST payable in cash by ‘XY’ for the month of July
Particulars Value CGST SGST IGST

(Rs.) (Rs.) (Rs.) (Rs.)
Total tax liability
Inter-State supply of stationery [Note1] 2,00,000 36,000
Intra-State supply of 500 combi packs 4,00,000 56,000 56,000
ofcalculators and diaries [Note-2] (500 x (4,00,000 (4,00,000
800) x 14%) x 14%)
Intra-State supply of services of business 1,00,000 9,000 9,000
correspondent to a Shubhvidhi Bank with respect (1,00,000 (1,00,000
to accounts in its urban area branch [Note-3] x 9%) x 9%)

Input tax credit (ITC)
Brought forward ITC 5,000 5,000 80,000
Inter-State purchase of office stationery [Note-4] 1,00,000 18,000
Intra-State repairing of lorry used for 1,00,000 9,000 9,000

transportation of goods [Note-5]
Total ITC 14,000 14,000 98,000
Minimum net GST payable in cash
IGST credit being set off against IGST liability (36,000)
IGST credit being used to pay CGST and (11,000) (51,000)
SGST liability in any order and in any
proportion
CGST and SGST credit being used to pay CGST (14,000) (14,000
and SGST liability respectively CGST ) SGST
Minimum net GST payable in cash 40,000 Nil Nil
Notes:-
1. Taxable supplies made by a registered person are liable to tax irrespective of
whether they are made to a registered person or to an unregistered person.
2. Supply of calculator and diary as a combi pack with a single price of Rs. 800 is a
mixed supply. Being a mixed supply comprising of two supplies, it shall be treated as
supply of that particular supply which attracts highest rate of tax.
3. Services provided by a business facilitator/ business correspondent to a banking
company only with respect to accounts in its rural area branch are exempt and not
with respect to accounts in its urban area branch .
4. ITC can be taken only on the basis of a valid tax paying document. Thus, ITC will not
be available on goods for which the invoice is missing.
5. ITC on motor vehicles used for transportation of goods is allowed. Further, ITC is
allowed on repair and maintenance services relating to motor vehicles, ITC on which
is allowed.
Note: IGST credit, after being set off against IGST liability, can be utilised against CGST and
Super 75
SGST liability in any order and in any proportion. Thus, there cannot be one answer for the
minimum net CGST and SGST payable in cash as the amount of CGST and SGST liabilities
are the same as also the amount of ITC for CGST and SGST is also the same.

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Supply under GST 5-11

Charge under GST 12-17

Time of Supply 18-23

Returns under GST 45-52

Tax Invoice, Dr Note, Cr Note, E way bill 53-62

Place of Suuply, Account & Records, TDS 63-72

Differentiate between direct and indirect taxes

Difference between direct taxes and indirect taxes:

Direct Taxes Indirect Taxes

Question 2 PYQ Nov 18

List of Central and State levies to be subsumed GST are as under: -

Central Taxes to be subsumed State taxes to be subsumed

1) Central Excise Duty & Additional Excise 1) VAT/Sales tax

Question 3 MTP 2018

Discuss the need & functions of the common GST portal

2. Resultantly, Common GST Electronic Portal – www.gst.gov.in – a website managed by

Question 4 MTP 2021

Supply under GST

(i) the spouse and children of the person, and

Question 7 RTP May 18

1) Supply should be of goods and/or services.

2) Supply should be made for a consideration.

3) Supply should be made in the course or furtherance of business

Taxability in given cases

Question 8 May 2022

Question 9 RTP Nov 23

Examine the implications of GST on payment of honorarium to the Guest Anchors

Question 10 RTP Nov 18

i. Supply, under section 7, inter alia,

 includes import of services for a consideration

 even if it is not in the course or furtherance of business.

(i) the spouse and children of the person, and

Charge under GST

Question 13 RTP May 20

Question 14 RTP May 2023

However, section 10(2A) provides an option to a registered person (subject to certain

Question 17_ Nov 22

Inter-State stock transfer of exempt goods 2,00,000

Determine the time of supply from the following particulars:

6th May Booking of convention hall, sum agreed ₹ 15000, advance of

15th September Function held in convention hall

27th October Invoice issued for ₹ 15000, indicating balance of ₹ 12000

3rd November Balance payment of ₹ 12000 received

Question 20 RTP May 2023

Thus, in the given case, time of supply is 4th September, 2023

Tax on supply of transportation of goods by road services provided by a Goods Transport

• date of making payment, or

• 61st day from the date of issue of invoice by supplier

Thus, in the given case, time of supply is earlier of

• 20th August 2021 (61st day from 20th June)

Thus, in the given case, time of supply 20th August 2023

Date of provision of service (04.01.20XX) Date of receipt of payment (11.02.20XX)

Total value of supply of goods or services or both;

Services of transportation of students, faculty and staff from home to 2,50,000

Housekeeping services to T Coaching Institute 50,000

Security services to N Higher Secondary School 3,25,000

Services of providing breakfast, lunch and dinner to students of ABC 5,80,000

All the above amounts are exclusive of GST

Computation of value of taxable supplies of AB Ltd