REVISION TEST PAPER

TAXATION

SECTION B: GOODS AND SERVICES TAX

The provisions of the CGST Act, 2017 and the IGST Act, 2017 as amended by
the Finance Act, 2023 including significant notifications and circulars issued
and other legislative amendments made, which have become effective up to
29.02.2024, are applicable for September 2024 examination.
The subject matter of June, 2023 edition of the Study Material of Goods and
Services Tax is based on the provisions of the CGST Act and the IGST Act as
amended by the notifications and circulars issued up to 30.04.2023. The
amendments made vide relevant Finance Acts, which have become effective
till 30.04.2023, and significant notifications and circulars issued upto
30.04.2023 have been incorporated in the Study Material. Further, students
are advised to read all the amendments made by the Finance Act, 2023 given
at the end of relevant chapters for September 2024 examinations as all such
amendments have become effective.
The Statutory Update containing significant notifications and circulars issued
between 01.05.2023 and 29.02.2024 in GST laws as well as the amendments
made by the CGST Amendment Act, 2023 and IGST Amendment Act, 2023,
which are relevant for September, 2024 examination is webhosted at
https://resource.cdn.icai.org/77999bos62625.pdf

(1) All questions should be answered on the basis of the position of

GST law as amended up to 29.02.2024.
(2) The GST rates for goods and services mentioned in various questions
are hypothetical and may not necessarily be the actual rates leviable
on those goods and services. Further, GST compensation cess should
be ignored in all the questions, wherever applicable.

QUESTIONS

Case Scenario
XYZ Private Limited is a mid-sized company, registered in Delhi, dealing in the
manufacturing and distribution of electronic goods in India. The company has
been operating for over a decade and has a robust supply chain network

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across the Country. The Company needs to ensure compliance with various
GST regulations related to return filing, registration, and payment of tax.
The company is exploring to expand its sales channel in India through
distributors in each State. In view of the same, the company has undertaken
following activities in the month of June.
(a) Organized a distributor conclave in Udaipur, Rajasthan, where the
distributors from Rajasthan, Gujarat and Madhya Pradesh participated in
the conclave held in Rajasthan. The total cost of hotel accommodation
was ` 25 lakh, which was paid by the Delhi office to the Hotel located in
Rajasthan.
(b) The company purchased certain gift items for distribution to the
participants in the conclave. The gift items were purchased from the
vendor located in Ludhiana, Punjab and were delivered to the hotel in
Udaipur, Rajasthan for distribution to the participants of the conclave.
The cost of such gift items was ` 25 lakh. However, the value of
individual gift items was restricted to ` 75,000.
(c) The company purchased an insurance policy for its employees travelling
for the conclave and the premium for such insurance policy was ` 1 lakh
which was paid by the company. There is no requirement under any law
requiring such insurance policy.
(d) The company took on rent, a new warehouse near its factory in Delhi for
storage and dispatch of goods. The goods are being transported
between the factory and new warehouse in non-motorized cart. The
value of such goods transported in single trip is up to ` 5 lakh. Further,
the rent of warehouse is ` 18 lakh for the initial 11 months and the same
shall be revised to ` 21 lakh after expiry of initial 11 months.
The rate of tax applicable is 18% IGST, 9% CGST and SGST each unless
otherwise specified.
On the basis of the facts given above, choose the most appropriate answer to
Q.1 to Q.5 below -
1. Which of the following statements is correct under GST law in relation to
the hotel accommodation service received by the Company?

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(a) The hotel shall charge CGST and SGST in the invoice issued to the
Company.
(b) The Hotel shall charge IGST in the invoice issued to the Company
(c) The Hotel shall issue a bill of supply to the Company.
(d) The Hotel shall charge CGST and SGST to the extent the charges
are related to participants of Rajasthan and IGST to the extent
charges are related to the participants of Gujarat and Madhya
Pradesh, on the invoice issued to the Company.
2. What shall be the place of supply in relation to the gift items purchased
by XYZ Private Limited?
(a) Rajasthan i.e. the location where the goods were received
(b) Delhi i.e. the principal place of business of the Company
(c) Punjab i.e. the location from where the goods were dispatched
(d) Permanent location of participants receiving the gifts
3. Which of the following statements is true in relation to the gift items
and the insurance policy purchased by the Company?
(a) The company is not eligible to avail the input tax credit in relation
to both, gift items and the insurance policy.
(b) The company is eligible to avail the input tax credit related to gifts
valuing less than ` 50,000.
(c) The company is eligible to avail the input tax credit only on
insurance policy as the same is provided to employees i.e. related
person of the Company.
(d) There is no restriction in availment of input tax credit related to
gifts and insurance policy.
4. Which of the following statements is correct in relation to the issuance
of e-way bill for transportation of goods between factory and warehouse
in non-motorized cart?
(a) E-way bill is required to be issued by the company for each
instance of transportation of goods irrespective of the
consignment value of goods.

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(b) E-way bill is not required to be issued in the given case

irrespective of the consignment value of the goods.
(c) E-way bill is required to be issued for goods of the consignment
value above ` 50,000
(d) E-way bill is required to be issued for goods of the consignment
value above ` 1,00,000
5. Which of the following statements is most appropriate in relation to the
new warehouse taken on rent by the Company?
(a) Separate GST registration is not required mandatorily.
(b) Separate GST registration is required mandatorily.
(c) GST registration is required as a casual taxable person for the term
of rent agreement.
(d) Separate GST registration is required once the rent is more than
` 20 lakh per annum.

v 6. Craftmodel Limited, a registered dealer in Patna (Bihar), is engaged in

various types of supplies. It is not engaged in renting of cars business.
The company provided the following details for the month of January,
2024.
Sl. Particulars Amount in
No. `
(i) Outward supply of goods made during the As given in
month to various non-related persons: particulars
Particulars Market Transaction column
value Value
(`) (`)
a. in the State of 3,00,000 4,00,000
Bihar (Intra-State)
b. to other States 7,50,000 6,00,000
(Inter-State)
(ii) The company pledged its 5% equity shares to the
merchant banker for the purpose of proposed
initial public offer.

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(iii) Stock transfer of goods worth ` 58,000 without

consideration to its branch at Gaya (Bihar).
Branch has been declared as an additional place
of business in the registration certificate.
(iv) Intra-State inward supply of various services for use 12,00,000
in the course or furtherance of business (30
invoices). Out of 30 invoices, details of 10 invoices
amounting to ` 2,50,000 were not furnished by the
suppliers in their GSTR-1s and resultantly, were not
reflected in Craftmodel Limited’s GSTR-2B.
(v) Outward supply of services of milling of paddy 2,00,000
into rice (Intra-State)
(vi) Outward supply of services of giving trucks on 1,50,000
hire to a Governmental authority (Intra-State)
(vii) Amount paid to IIM Ahmedabad, Gujarat for 5,00,000
providing 15 days’ management training to 10
managers from 10th January. The IIM provided
Participation Certificates at the end of the
training program.
(viii) Purchased air tickets for its employees from
Patna to Guwahati, Assam airport in economy
class. Total fare was ` 1,00,000, out of which
basic fare was ` 80,000.

Additional Information:
(a) All the amounts given above are exclusive of taxes, wherever
applicable.

(b) During the course of arranging and filing documents, the

Accountant of Craftmodel Limited observed that an invoice for
` 30,000 (excluding tax) dated 2nd December, 2023 was omitted to
be recorded in the books of accounts and no payment was made
against the same till the end of January, 2024. This invoice was
issued by Mr. Rahuketu of Patna, from whom Craftmodel Limited
had taken cars on rental basis. Invoice included cost of fuel also.

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(c) Regarding pledging of shares, the face value of shares is

` 5,00,000. The market value of shares is ` 8,00,000.
(d) Rate of GST applicable on various supplies are as follows:

Nature of supply CGST SGST IGST

Car rental service 2.5% 2.5% 5%
Transportation of passengers by air 2.5% 2.5% 5%
All other inward and outward supplies 9% 9% 18%

(e) No opening balance of input tax credit exists in the beginning of

the relevant tax period.
(f) Subject to the information given above, conditions necessary for
claiming ITC were complied with.
You are required to calculate the amount of net GST liability payable in
cash by Craftmodel Limited for the month of January, 2024.
7. Briefly examine the taxable value of supply in the following independent
cases:
(i) Jivan Limited, registered under GST, provided services amounting
to ` 10,00,000 to a Governmental Authority by way of sanitation
conservancy.
(ii) Raju Transporters, a registered Goods Transport Agency (GTA)
provided service of transportation of goods to Kukreja & Kukreja
Co.-a unregistered partnership firm. Kukreja & Kukreja Co. paid
` 8,000 to Raju Transporters as consideration.
(iii) Amardeep Hospital provided services in Neo natal Intensive Care
for 2 days for which ` 15,000 are charged per day from Mr. Chopra
for his new born son, Viraat.
8. Ranmo Limited, a registered entity under GST has demerged its
operations with effect from 31 st October, 2023. The registration of
Ranmo Limited has been cancelled suo-motu by the Proper Officer. The
order of cancellation of registration was passed on 4th November, 2023
and was served on 7th November, 2023.

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 SECTION B – GOODS AND SERVICES TAX (50 MARKS)
QUESTIONS
(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Wherever necessary, suitable assumptions may be made by the candidates,
and disclosed by way of notes.
(iii) All questions should be answered on the basis of position of the GST law as
amended by provisions of the CGST Act, 2017 and the IGST Act, 2017 as
amended by the Finance Act, 2023, including significant notifications and
circulars issued, up to 29th February, 2024.
Division A - Multiple Choice Questions (MCQs)
Write the most appropriate answer to each of the following multiple-choice
questions by choosing one of the four options given. All questions are
compulsory.
Total Marks: 15 Marks
M/s. Maahi & Co., a LLP registered dealer under GST, is engaged in various types
of business activities.
It provided GTA services to Government Department, registered under GST for
providing various services. Maahi & Co. did not exercise the option to pay GST.
The firm provided services of Direct Selling Agency (DSA Services) to a Banking
Company located in Mumbai.
The firm provided free gift to each of its employees valuing ` 50,000 once in a
financial year.
M/s Maahi & Co let out its warehouse to Mr. Shankar, who in turn let out to an
agriculturist for warehousing of agricultural produce. The firm also undertakes
catering service to “Vishwas” Anganwadi. The said Anganwadi has received
fundings from Government.
The firm purchased following goods during the month of July:-
(a) Capital goods amounting to ` 45,000 purchased on which depreciation has
been taken on full value including GST paid thereon.
(b) Raw materials purchased amounting to ` 55,000 for which invoice is missing
but delivery challan is available.
Further, for the month of July, the GST liability of the firm was ` 20,000 IGST;
` 10,000 CGST; ` 10,000 SGST. The following credits were available in the said
month-
IGST: ` 8,000
CGST: ` 12,000
SGST: ` 5,000

8
All the amounts given above are exclusive of taxes, wherever applicable. All the
supply referred above is intra-State unless specified otherwise. Conditions for
availing ITC are fulfilled subject to the information given above.
Based on the information provided above, choose the most appropriate answer for
the following questions-
1. Choose the correct statement(s).
(i) For GTA services, Government is liable to pay GST under reverse
charge
(ii) For DSA services, Banking Company is liable to pay GST under reverse
charge
(iii) For GTA services, Maahi & Co is liable to pay GST under forward charge
(iv) For DSA services, Maahi & Co is liable to pay GST under forward charge
(a) i & ii
(b) iii & iv
(c) i & iv
(d) ii & iii
2. Which of the following options is correct in respect of GTA services provided
to Government Department?
(a) GTA service is taxable @ 12% without restriction of availing input tax
credit.
(b) GTA service is taxable @ 12%, but input tax credit cannot be availed for
the same.
(c) GTA service is taxable @ 5% without restriction of availing input tax
credit.
(d) GTA service is taxable @ 5%, but input tax credit cannot be availed for
the same.
3. Gift of ` 50,000 in value provided by Maahi & Co to each of its employee will
be:
(a) Supply of goods
(b) Supply of services
(c) Exempt supply
(d) Not a supply
4. Which of the following statements is correct:-
(i) Letting out of warehouse to Shankar is exempt
(ii) Catering service to “Vishesh” Anganwadi is exempt
(iii) Letting out of warehouse to Shankar is not exempt
(iv) Catering service to “Vishesh” Anganwadi is not exempt

9
 (a) i & ii
(b) iii & iv
(c) i & iv
(d) ii & iii
5. M/s Maahi & Co is eligible to claim input tax credit of
(a) ` 45,000
(b) ` 55,000
(c) ` 1,00,000
(d) Nil
6. Compute the GST liability of the firm for the month of July to be paid in cash,
if rule 86B of the CGST Rules, 2017 is not applicable?
(a) IGST: ` 10,000; CGST: Nil, SGST: ` 5000
(b) IGST: ` 12,000; CGST: Nil; SGST: ` 5000
(c) IGST: Nil; CGST: ` 10,000, SGST: ` 5000
(d) IGST: 5,000; CGST: Nil, SGST: 10,000 (6 x 2 Marks = 12 Marks)
7. Kids Bazaar Pvt. Ltd., registered in Maharashtra sells kids clothing via an E-
commerce operator Champ.com. Mr. Dhruv placed an order of 10 sets of
Ethnic wear in different colours each costing ` 5,000 (GST @18% not
included) on 20th January 2023. However, he returned 2 sets back after 2 days
in accordance with the exchange policy of Champ.com. Determine the value
of supply on which Champ.com should collect TCS from Kids Bazaar Pvt. Ltd.
(a) ` 40,000
(b) ` 59,000
(c) ` 50,000
(d) ` 47,200 (2 Marks)
8. Miss Gyati, a jeweller registered under GST in Mumbai, wants to sell her
jewellery in a Trade Expo held in Delhi. Which of the following statements is
false in his case?
(a) She needs to get registration in Delhi as casual taxable person.
(b) She needs to pay advance tax on estimated tax liability.
(c) She needs to mandatorily have a place of business in Delhi.
(d) She needs to file GSTR-1/ IFF and GSTR-3B for Delhi GSTIN for the
month or quarter, as the case may be, when she gets registered in Delhi.
(1 Mark)

10
 Division B - Descriptive Questions
Question No. 1 is compulsory.
Attempt any two questions out of remaining three questions.
Total Marks:35 Marks
1. (a) Vishwanath Ltd., a registered supplier in Karnataka has provided the
following details for supply of one machine·:
Particulars Amount in
(`)
(1) List price of machine supplied [exclusive of items 80,000
given below from (2) to (4)]
(2) Tax levied by Local Authority on sale of such 6,000
machine
(3) Discount of 2% on the list price of machine was
provided (recorded in the invoice of machine)
(4) Packing expenses for safe transportation charged 4,000
separately in the invoice
Vishwanath Ltd. received ` 5,000 as price linked subsidy from a NGO on
sale of each such machine, The Price of ` 80,000 of the machine is after
considering such subsidy.
During the month of February, Vishwanath Ltd. supplied three machines
to Intra-State customers and one machine to Inter-State customer.
Vishwanath Ltd. purchased inputs (intra-State) for ` 1,20,000 exclusive
of GST for supplying the above four machines during the month.
The Balance of ITC at the beginning of February was:
CGST SGST IGST
` 18,000 ` 4,000 ` 26,000
Note:
(i) Rate of CGST, SGST and IGST to be 9%,9% and 18% respectively
for both inward and outward supplies.
(ii) All the amounts given above are exclusive of GST.
(iii) All the conditions necessary for availing the ITC have been fulfilled.
Compute the minimum net GST payable in cash by Vishwanath Ltd. for
the month of February. (10 Marks)
(b) Veda Ltd. procured the following goods in the month of January, 2024.
Inward Supplies GST (`)
(1) Goods used in constructing an additional floor of 96,200
office building. The cost of construction of
additional floor has been capitalized.

11
 (2) Trucks used for transportation of inputs in the 11,000
factory
(3) Inputs used in trial runs 8,350
(4) Confectionery items for consumption of employees 4,325
working in the factory
(5) Cement used for making foundation and structural 9,550
support to plant and machinery
Note: Depreciation has not been claimed on tax component in case of
trucks.
Compute the amount of ITC available with Veda Ltd. for the month of
January, 2024 by giving necessary explanations. Assume that all the
other conditions necessary for availing ITC have been fulfilled. (5 Marks)
2. (a) Determine the place of supply in the following independent cases:-
(i) Harpreet (New Delhi) boards the New Delhi-Kota train at New
Delhi. He sells the goods taken on board by him (at New Delhi), in
the train, at Jaipur during the journey.
(ii) LP Refineries (Mumbai, Maharashtra) gives a contract to Bhansali
Ltd. (Ranchi, Jharkhand) to supply a machine which is required to
be assembled in a power plant in its refinery located in Kutch,
Gujarat. (5 Marks)
(b) Green Agro Services, a registered person provides the following
information relating to its activities during the month of February, 2024:
Gross Receipts from (`)
Services relating to rearing of goats 3,75,000
Services by way of artificial insemination of horses 5,00,000
Processing of sugarcane into jaggery 7,00,000
Milling of paddy into rice 8,00,000
Services by way of warehousing of agricultural produce 2,25,000
All the above receipts are exclusive of GST.
Compute the value of taxable supplies under GST laws for the month of
February, 2024. (5 Marks)
3. (a) Sheen Ltd. a registered supplier wishes to transport cargo by road
between two cities situated at a distance of 372 kilometres. Calculate the
validity period of e-way bill under rule 138(10) of the CGST Rules, 2017
for transport of the said cargo, if it is over dimensional cargo or
otherwise. (5 Marks)
(b) Apex Cinemas, a registered person engaged in making supply of
services by way of admission to exhibition of cinematograph films in
multiplex screens was issuing consolidated tax invoice for supplies at
the close of each day in terms of section 31(3)(b) of the CGST Act, 2017
read with fourth proviso to rule 46 of the CGST Rules, 2017.

12
REVISION TEST PAPER
TAXATION

Ranmo Limited wishes to apply for revocation of cancellation of

registration on 4th February, 2024. The tax consultant of Ranmo Limited
advised that application for revocation of cancellation or registration is
time barred and hence not valid in law.
You are required to examine the technical veracity of the advice given by
Tax Consultant of Ranmo Limited.
9. Mr. X, a registered person under GST has aggregate turnover in the
preceding financial year amounting to ` 8 crore. He is desirous to know
whether e-invoicing is applicable for supplies made by registered person
to Government Departments or establishments/Government
agencies/local authorities/PSUs which are registered solely for the
purpose of deduction of tax at source as per provisions of section 51 of
the CGST Act, 2017. You are required to advise Mr. X.
10. Briefly explain the manner of dealing with difference in ITC available in
auto-generated statement containing the details of ITC and that availed
in return prescribed in terms of rule 88D of the CGST Rules, 2017.

SUGGESTED ANSWERS/HINTS

MCQ No. Most Appropriate Answer

1. (a)
2. (b)
3. (a)
4. (b)
5. (a)

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6. Computation of net GST payable in cash by Craftmodel Ltd. for the

month of January,2024

Particulars CGST (`) SGST (`) IGST (`)

Outward intra-State supply of 36,000 36,000
goods made in the State of [4,00,000 [4,00,000
Bihar. × 9%] × 9%]
[Value of supply is the
transaction value of the goods.]
Outward supply of goods made 1,08,000
to other States. [6,00,000
[Value of supply is the × 18%]
transaction value of the goods.]
Pledging of 5% equity shares to Nil
the merchant banker [Supply
includes supply of goods and
services. Shares being securities
are neither goods nor services.
Thus, transfer of shares which is
neither goods nor services is not
a supply.]
Intra-State stock transfer to - -
Gaya Branch with no separate
registration.
[Stock transfer between 2 units
of a legal entity under single
registration is not a deemed
supply under GST and hence, the
same is not liable to tax under
GST since branch with same
GSTIN is not a distinct person.]
Services of milling of paddy 18,000 18,000
into rice. (2,00,000 (2,00,000
[Milling of paddy into rice x 9%) x 9%)
cannot be considered as an

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intermediate production
process in relation to
cultivation of plants for food,
fibre or other similar products
or agricultural produce. Thus,
it is not eligible for exemption.]
Services of giving trucks on 13,500 13,500
hire to a Governmental (1,50,000 (1,50,000
authority [Services by way of x 9%) x 9%)
giving motor vehicles on hire
to a Governmental authority
are taxable.]
Total output tax
Less: Input Tax Credit [Refer
Working Note below] IGST
credit should first be utilized
67,500

000 67,500 1,08,000

(90,000)

towards payment of IGST.

ITC of CGST should be utilized (67,500) (18,000)
for payment of CGST and IGST in (CGST) (CGST)
that order. ITC of CGST cannot
be utilized for payment of SGST
ITC of SGST should be utilized (67,500) -
for payment of SGST and IGST in (SGST)
that order. However, ITC of
SGST should be utilized for
payment of IGST, only after ITC
of CGST has been utilized fully.
ITC of SGST cannot be utilized
for payment of CGST.
Minimum Net GST payable in Nil Nil Nil
cash

0
ITC balance to be carried - 18,000 -
forward next month

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Working Note:
Computation of ITC available

Particulars CGST (`) SGST (`) IGST (`)

Intra-State inward supply of 85,500 85,500 -
services used in the course of (9,50,000 (9,50,000
business. x 9%) x 9%)
[ITC cannot be availed by a
registered person in respect of
invoices, the details of which
have not been furnished by the
supplier in GSTR-1.]
Training course organized by - - 90,000
IIM, Gujarat. (5,00,000
[Not exempt. Short duration x 18%)
programmes offered by IIMs for
which participation certificate is
awarded are not ‘qualification
recognized by law’. ITC is
available in respect of supply of
services which are used in the
course or furtherance of his
business. Further, the place of
supply of services in relation to
training and performance
appraisal to a registered person,
shall be the location of such
person. Thus, place of supply is
Patna (Bihar). Further, where the
location of the supplier and the
place of supply are in two
different States, it shall be
treated as inter-State supply of
services.
Air tickets from Patna to
Guwahati.

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TAXATION

[Transport of passengers by air

terminating in an airport located
in Assam is exempt from GST as
said transportation is in
economy class.]
Cars taken on rental basis from -- -- --
Mr. Rahuketu.
[Tax on renting of motor car
services wherein cost of fuel is
included in consideration
provided by a non-body
corporate to a body corporate
and CGST/SGST is charged @
2.5% each, is payable under
reverse charge.
Time of supply of such services is
1st February being earlier of date of
payment, or date immediately
following 60 days since issue of
invoice by the supplier. Since the
time of supply of renting of motor
car services in the given case does
not fall in January, 2024, tax liability
on the same does not arise in said
month.
Further, ITC on renting of motor car
services received is blocked since
the recipient - Craftmodel Ltd. is
not in the same line of business]

000
Total ITC available 85,500 85,500 90,000
7. (i) Services provided to a Governmental Authority by way of inter alia
sanitation conservancy is exempt under GST. Thus, services provided
by Jivan Limited, registered under GST amounting to ` 10,00,000 to a
Governmental Authority by way of sanitation conservancy is exempt
under GST.

31 SEPTEMBER 2024 EXAMINATION

 SECTION B – GOODS AND SERVICES TAX (50 MARKS)
Division A - Multiple Choice Questions

Question Answer
No.
1 (c) i & iv
2 (d) GTA service is taxable @ 5%, but input tax credit cannot be
availed for the same.
3 (d) Not a supply
4 (d) ii & iii
5 (d) Nil
6 (a) IGST: ` 10,000; CGST: Nil, SGST: ` 5000
7 (a) ` 40,000
8 (c) She needs to mandatorily have a place of business in Delhi.

Division B - Descriptive Questions

1. (a) Computation of value of taxable supply
Particulars Amount
(`)
List price of the machine 80,000
Add: Tax levied by Local Authority on the sale of machine 6,000
[Tax other than GST, if charged separately, are includible in
the value in terms of section 15 of the CGST Act, 2017.]
Add: Packing expenses for safe transportation 4,000
[Includible in the value as per section 15 of the CGST Act,
2017.]
Add: Price-linked subsidy received from a NGO on sale of 5,000
each machine
[Subsidy received from a non-Government body and which
is directly linked to the price, the same is included in the
value in terms of section 15 of the CGST Act, 2017.]
Total 95,000
Less: Discount @ 2% on ` 80,000 1,600
[Since discount is known at the time of supply and
recorded in invoice, it is deductible from the value in terms
of section 15 of the CGST Act, 2017.]
Value of taxable supply 93,400
 Computation of minimum net GST payable in cash by
Vishwanath Ltd.
Particulars CGST (`) SGST (`) IGST (`)
Sale of machine 25,218 25,218 16,812
[Intra-State sales = ` 93,400 × 3
machines = ` 2,80,200 [2,80,200 [2,80,200 [93,400
Inter-State sales = ` 93,400 × 1 × 9%] × 9%] × 18%]
machine = ` 93,400]
Total output tax 25,218 25,218 16,812
Less: Set off of IGST against IGST (9,188) (16,812)
and SGST
[IGST credit first be utilized
towards payment of IGST,
remaining amount can be utilized
towards CGST and SGST in any
order and in any proportion]
Less: Set off of CGST against (25,218) (14,800)
CGST and SGST against SGST
[CGST credit cannot be utilized
towards payment of SGST and vice
versa.]
Minimum net GST payable in cash Nil 1,230
Working Note:
Computation of total ITC available
Particulars CGST (`) SGST (`) IGST (`)
Opening balance of ITC 18,000 4,000 26,000
Add: Inputs purchased 10,800 10,800
during the month [` 1,20,000 ×9%] [` 1,20,000 ×9%]
Total ITC available 28,800 14,800 26,000
(b) Computation of amount of ITC available for the month of
January, 2024
S. Particulars GST (`)
No.
(1) Goods used in construction of additional floor of office Nil
building
[ITC on goods received by a taxable person for
construction of an immovable property on his own
account is blocked even if the same is used in the
course or furtherance of business.]
(2) Trucks used for transportation of inputs in the factory 11,000
 SUGGESTED ANSWER TAXATION

Calculate the amount of net minimum GST payable in cash by Evershine Pvt.
Ltd. for the month of September, 2023. (10 Marks)
(b) Mr. Ravindra, a registered person in Bhopal, Madhya Pradesh has provided
the following information regarding outward transactions made during the
month of January, 2024:
(1) He was appointed by recognized sports body as a chief selector of
hockey team and received ` 5,00,000 as remuneration.
(2) Services of pure labour contract was provided for construction of
independent residential unit for ` 1,80,000.
(3) He rented out his warehouse for warehousing of sugarcane and
received rental income of ` 75,000.
(4) Provided services to Municipal Corporation of Bhopal for slum
improvement and upgradation for ` 6,50,000.
(5) He has charged consideration of ` 1,25,000 against western music
dance performance in an event.
You are required to compute the taxable value of supply on which GST is to
be paid by Mr. Ravindra for the month of January, 2024. All the amount
stated above are exclusive of GST, wherever applicable.
Suitable Notes should form part of answer. (5 Marks)
Answer
(a) Computation of minimum net GST payable in cash by Evershine Pvt.
Ltd. for the month of September 2023

Particulars Value of CGST @ SGST @ IGST @

supply (`) 9% (`) 9% (`) 18% (`)
Output tax payable
Intra-State Place of 18,50,000 1,66,500 1,66,500 Nil
supply of goods supply is
to Vaidehilocation
Enterprises where
[Since arranging movement
freight is the of goods
liability of terminates

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SUGGESTED ANSWER INTERMEDIATE EXAMINATION: MAY 2024

supplier, it is a
composite
supply and thus,
freight charges
are added to the
value of
principal
supply.]
Inter-State 35,60,000 Nil Nil 6,40,800
supply to Calc.
Exim
[Municipal tax is
includible in
value since it is a
tax levied under
a law other than
GST law and is
charged
separately.]
Intra-State supply to 5,70,000 51,300 51,300 Nil
Sunshine Ltd.
[Place of supply is location of
recipient. Discount given at
the time of supply is
deductible from the value
since duly recorded in the
invoice.]
Inter-State supply to Raghu 2,00,000 Nil Nil 36,000
Enterprise
[Place of supply in case of bill
to ship model is principal
place of business of a third
person at whose instructions
the goods are delivered by
supplier to recipient. Thus, it

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 SUGGESTED ANSWER TAXATION

is considered as Inter State

supply.]
Total output tax 2,17,800 2,17,800 6,76,800
Less: ITC available [Refer Nil Nil (4,17,000)
note below]
[IGST credit to be utilized
first towards payment of
IGST.]
CGST credit utilized for (2,17,800) Nil (12,200)
payment of CGST and IGST in
that order
SGST credit utilized for Nil (2,17,800) (42,200)
payment of SGST and IGST in
that order
Minimum net GST payable Nil Nil 2,05,400
in cash

Working Note:
Computation of ITC available

Particulars Value CGST SGST IGST

(`) (`) (`) (`)
Opening balance 20,000 50,000 75,000
Inter-State 19,00,000 Nil Nil 3,42,000
purchase of raw Place of [19,00,000
material supply is × 18%]
[ITC is not location
available on where
goods worth movement
` 1,00,000 since of goods
not received terminates.
during the
month.]
Purchase of 2,00,000 Nil Nil Nil
machinery

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: MAY 2024

[ITC is not
available since
depreciation has
been claimed on
the GST
component.]
Intra-State 15,00,000 2,10,000 2,10,000 Nil
purchase of [15,00,000 [15,00,000
truck1 × 14%] × 14%]
[ITC on motor
vehicles used for
transportation
of goods is
available.]
Purchase of car 10,00,000 Nil Nil Nil
[ITC on motor
vehicles for
transportation
of persons with
seating capacity
up to 13 persons
(including
driver), is
blocked, except
when used for
specified
purposes.]
Purchase of 5,00,000 Nil Nil Nil
goods for
construction of
an additional
floor2

1
It is logically assumed that depreciation is not claimed on trucks.
2
It is logically assumed that amount spent on purchase of goods is capitalized in the books.

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 SUGGESTED ANSWER TAXATION

[ITC on goods
used in
construction of
immovable
property (other
than plant or
machinery) on
one’s own
account is
blocked if
capitalized in the
books.]
Total 2,30,000 2,60,000 4,17,000
Note – In above answer, where location of supplier and place of supply are
in two different States, it is an inter-State supply and where location of
supplier and place of supply are in same State, it is an intra-State supply.

(b) Computation of taxable value of supply on which GST is to be paid by

Mr. Ravindra

Particulars Amount
(`)
Remuneration received as a chief selector of hockey team. 5,00,000
[Taxable since services provided to a recognised sports body
by an individual only as a player, referee, umpire, coach or
team manager are exempt.]
Service of pure labour contract for construction of NIL
independent residential unit
[Services of pure labour contracts of construction of original
works pertaining to a single residential unit otherwise than
as a part of a residential complex are exempt.]
Rental income from warehousing of sugarcane NIL
[Warehousing of sugarcane being an agricultural produce is
exempt.]

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