Division A - Multiple Choice Questions

Question Answer
No.
1 (c) i & iii
2 (c) i & iii
3 (d) 1st April
4 (a) (i)
5 (b) ` 3,50,000
6 (c) Time of supply is 10th August for ` 5,000 & 10th October for ` 15,000.

Division B - Descriptive Questions

1. Computation of net GST payable by Prithviraj Pvt. Ltd. for the month of July
Particulars CGST SGST
(`) (`)
GST payable on outward supplies (Refer Working note – 1) 2,83,500 2,83,500
Less: ITC (Refer Working note – 2) 1,32,500 1,32,500
[ITC of IGST can be utilised for payment of CGST and SGST in any
proportion and in any order.]
Net GST payable in cash 1,51,000 1,51,000
Note: ITC of IGST can be utilised towards payment of CGST and SGST in any proportion and in any
order. Therefore, there can be multiple ways of setting off of IGST credit against CGST and SGST
liability and accordingly, in the given case, amount of net GST payable in cash under the heads of CGST
and SGST will vary. However, total amount of net GST payable in cash will be ` 3,02,000 in each case
Working note – 1

Computation of GST payable on outward supply made by M/s. Flo Pro for the month of July

Particulars Amount (`)

Price of the machine 25,00,000
[Since the subsidy is received from the State Government, the same is not
includible in the value of supply in terms of section 15(2)(e)]
Third party inspection charges 5,00,000
[Any amount that the supplier is liable to pay in relation to the supply but has
been incurred by the recipient and not included in the price actually paid or
payable for the goods, is includible in the value of supply in terms of section
15(2)(b)]
Freight charges for delivery of the machine 2,00,000
[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.]
Total 32,00,000
 Less: Discount @ 2% on ` 25,00,000 being price charged to BP Ltd. 50,000
[Discount given before or at the time of supply if duly recorded in the invoice is
deductible from the value of supply in terms of section 15(3)(a)]
Value of taxable supply 31,50,000
GST payable on outward supplies
CGST @ 9% 2,83,500
SGST @ 9% 2,83,500
[Since all the outward supplies are intra-State supplies, CGST and SGST are
payable on the same.]

Working note – 2
Computation of ITC available with M/s Flow Pro for the month of July
S. Inward supplies ITC (`)
No.
(i) Inputs ‘A’ 90,000
[ITC cannot be taken on missing invoice. The registered person should have
the invoice in its possession to claim ITC.]
(ii) Inputs ‘B’ Nil
[When inputs are received in lots, ITC can be availed only on receipt of last
lot.]
(iii) Capital goods Nil
[Input tax paid on capital goods cannot be availed as ITC, if depreciation has
been claimed on such tax component.]
(iv) Input services 1,75,000
[ITC on an invoice cannot be availed after 30th November following the end of
financial year to which such invoice pertains or the date of filing annual return,
whichever is earlier.
Since the annual return for the previous financial year has been filed on 15 th
September, ITC on the invoice pertaining to previous financial year cannot be
availed after 15 th September.]
Total ITC (IGST) 2,65,000

Note - CGST @ 9% and SGST @ 9% are payable on the outward supplies since they are intra-State
supplies and IGST @ 18% is payable on the inward supplies since they are inter-State supplies.
2. (a) (i) Services by way of health care services by a clinical establishment, an authorised medical
practitioner or para-medics are exempt from GST. Food supplied to the in-patients by a
canteen run by the hospital, as advised by the doctor/nutritionists, is a part of composite
supply of healthcare and not separately taxable. Thus, said services are exempt from GST.
(ii) Supply of service by a RWA (unincorporated body or a non-profit entity registered under any
law) to its own members by way of reimbursement of charges or share of contribution up to
an amount of ` 7500 per month per member for providing services and goods for the common
use of its members in a housing society/a residential complex are exempt from GST. Hence,
in the given case, services provided by the RWA are exempt from GST since the maintenance
charges collected per month per member do not exceed ` 7500.
 (b) (i) The registered person, whose aggregate turnover in the preceding financial year does not
exceed ` 1.5 crore, may opt to pay tax under composition levy, under section 10(1) and 10(2).
The scheme can be availed by an intra-State supplier of goods and supplier of restaurant
service.
However, the composition scheme permits supply of marginal services (other than restaurant
services) for a specified value along with the supply of goods and restaurant service, as the
case may be.
Thus, M/s United Electronics can opt for composition scheme for the current financial year as
its aggregate turnover is less than ` 1.5 crore in the preceding financial year and it is not
engaged in inter-State outward supplies.
(ii) The registered person opting for composition scheme, under section 10(1) and 10(2), can
also supply services (other than restaurant services) for a value up to 10% of the turnover in
the preceding year or ` 5 lakh, whichever is higher, in the current financial year.
Thus, M/s United Electronics can supply repair and maintenance services up to a value of
` 12 lakh [10% of ` 120 lakh or ` 5 lakh, whichever is higher] in the current financial year.
3. (a) (a) Every supplier becomes liable to registration if his turnover exceeds t he applicable threshold
limit [` 40 lakh in this case] in a finacial year. Since in the given case, the turnover of Dhampur
Industries exceeded ` 40 lakh on 1st September, it becomes liable to registration on said date.
Further, since the application for registration has been submitted within 30 days from such
date, the registration shall be effective from the date on which the person becomes liable to
registration. Therefore, the effective date of registration is 1 st September.
(b) Since in the given case, the turnover of Mehta Teleservices exceeds the applicable threshold
limit [` 20 lakh] on 25 th October, it becomes liable to registration on said date.
Further, since the application for registration has been submitted after 30 days from the date
such person becomes liable to registration, the registration shall be effective from the date of
grant of registration. Therefore, the effective date of registration is 5 th December.
(b) Udai Singh is required to issue a receipt voucher at the time of receipt of advance payment with
respect to services to be supplied to Sujamal. A receipt voucher is a document evidencing receipt
of advance money towards a supply of goods and/or services or both. A registered person, on
receipt of advance payment with respect to any supply of goods or services or both, shall issue a
receipt voucher or any other document, evidencing receipt of such payment.
Where, on receipt of advance payment with respect to any supply of goods or services or both the
registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice
is issued in pursuance thereof, the said registered person may issue to the person who had made
the payment, a refund voucher against such payment. Therefore, in case subsequently no services
are supplied by Udai Singh, and no tax invoice is issued in pursuance thereof, Udai Singh may
issue a refund voucher against such payment to Sujamal.
4. (a) The condition of payment of value of supply plus tax within 180 days does not apply in the following
situations:
(a) Supplies on which tax is payable under reverse charge
(b) Deemed supplies without consideration
(c) Additions made to the value of supplies on account of supplier’s liability, in relation to such
 supplies, being incurred by the recipient of the supply.
(b) The statement is not correct. Supply of goods on hire purchase shall be treated as supply of goods
as there is transfer of title, albeit at a future date.
(c) Filing of GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business
activity in any particular tax period. For such tax period(s), a Nil GSTR-3B is required to be filed.
A Nil GSTR-3B does not have any entry in any of its tables. For example, a Nil GSTR-3B for a tax
period cannot be filed, if the taxpayer has made any outward supply (including nil-rated, exempt or
non-GST supplies) or has received any supplies which are taxable under reverse charge or it
intends to take ITC etc.
A Nil GSTR-3B can be filed through an SMS using the registered mobile number of the taxpayer.
GSTR-3B submitted through SMS is verified by registered mobile number-based OTP facility.
A taxpayer may file Nil GSTR-3B, anytime on or after the 1st day of the subsequent month/quarter
for which the return is being filed for.