CONCEPT GRILLS

CONCEPT GRILLS ON GST

CONCEPT GRILLS ON SUPPLY: ................................................................................................................................................. 3
CONCEPT GRILLS ON CHARGE UNDER CGST:.............................................................................................................. 6
CONCEPT GRILLS ON CHARGE UNDER IGST:.............................................................................................................. 11
CONCEPT GRILLS ON EXEMPTIONS UNDER GST:................................................................................................... 13
CONCEPT GRILLS ON TIME OF SUPPLY: ........................................................................................................................22
CONCEPT GRILLS ON PLACE OF SUPPLY: ..................................................................................................................... 24
CONCEPT GRILLS ON VALUE OF SUPPLY: .................................................................................................................... 29
CONCEPT GRILLS ON INPUT TAX CREDIT: ................................................................................................................... 31
CONCEPT GRILLS ON COMPOSITION SCHEME: ....................................................................................................... 36
CONCEPT GRILLS ON TAX INVOICE: ................................................................................................................................ 39
CONCEPT GRILLS ON REGISTRATION: ............................................................................................................................ 40
CONCEPT GRILLS ON PAYMENT PROCESS: .................................................................................................................. 44
CONCEPT GRILLS ON RETURNS: ...........................................................................................................................................46
CONCEPT GRILLS ON ACCOUNTS & E-WAY BILL: ...................................................................................................48
QUESTIONS BASED ON AMENDMENTS FOR MAY 25 EXAMS .........................................................................49

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CONCEPT GRILLS ON SUPPLY:

1 A business owner gifts laptops used in his
business to his friend without any
consideration. Input tax credit (ITC) was
availed on these laptops when purchased.
Would this transaction be considered as
a supply under GST
2 A company located in India receives
consulting services from its parent
company based in the UK. No
consideration is paid for these services.
Will this transaction be treated as supply
under GST?
3 ABC Ltd. has a factory in Mumbai and a
warehouse in Delhi. Both are registered
separately under GST. The factory
transfers goods worth ₹1,00,000 to the
warehouse without charging any amount.
Will this transfer be considered a supply,
and is it liable for GST?
4 XYZ Ltd. receives a cash subsidy from the
State Government for promoting green
energy initiatives. Can this subsidy be
treated as consideration for the supply of
goods or services under GST?
5 A car dealer exchanges a new car for a
piece of land owned by a real estate
developer, with no monetary
consideration involved. How will this
transaction be treated under GST?
6 A software company temporarily transfers
the right to use its proprietary software to
another company for a period of 1 year
for a fee. Is this transaction considered as
a supply of goods or services under GST?
7 A commercial complex owner provides
renting of space and maintenance
services, including electricity supply, to a
tenant. The rent is ₹1,00,000 per month,
and the maintenance charge is ₹20,000,
including ₹10,000 for electricity. The
electricity charges are billed separately.

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Determine the GST treatment for this

composite supply.
8 A multiplex offers a package deal where a
movie ticket and a meal combo are sold
together for ₹500. The movie ticket price
is ₹400, and the meal combo is priced at
₹150 if sold separately. Determine the
GST rate applicable to the entire package
deal, considering the recent clarification
on composite supply.
9 A holding company transfers 20% of its
shares in a subsidiary to another
unrelated entity. Discuss whether this
transfer of shares is subject to GST and
the reasons behind your conclusion.
10 XYZ Ltd., a holding company, provides
management consultancy services to its
subsidiary ABC Pvt Ltd., where it holds
60% of the shares. Determine whether this
transaction is taxable under GST and
discuss any related implications.
11 A retailer sells a gift hamper consisting of
chocolates, a soft drink, and a mobile
phone at a single price of ₹5,000. Under
GST, how will this transaction be classified,
and what is the rate of tax applicable?
12 A business provides a packaged service
that includes both a laptop and its
mandatory installation. How should this
transaction be classified under GST, and
what tax rate will apply?
13 A business located in India exports goods
to its subsidiary in Singapore. However,
the goods never enter the Indian territory
and are directly delivered to Singapore
from another country. Is this transaction
considered a supply under GST, and how
will it be taxed?
14 An employer gives gifts worth ₹30,000 to
each employee during the festive season.
Will this be treated as a supply under GST,
and if yes, what is the taxable value?
15 A company sells a machine with an
accompanying 2-year warranty service as
part of the sale contract. Is this

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transaction treated as a composite or

mixed supply under GST, and how is the
tax applied?
16 A company enters into an agreement to
lease a commercial building for a period
of 5 years. Is the leasing of the immovable
property considered a supply under GST,
and if so, how is GST applied?
17 A company purchases goods worth
₹6,00,000 and avails ITC. Later, it decides
to supply the goods to a related party at
a nominal value of ₹1,000. Will the
transaction be considered as supply, and
how will GST be applied?
18 A textile manufacturer sends raw
materials worth ₹5,00,000 to a job
worker for processing. The job worker
does not return the processed goods
within 1 year. How will this situation be
treated under GST, and what are the tax
implications for the manufacturer?
19 ABC Ltd. and XYZ Ltd. form a joint
venture to develop a real estate project.
ABC Ltd. supplies construction materials
worth ₹10,00,000 to the joint venture
without charging any consideration. Will
this transaction be considered a supply
under GST, and what would be the tax
treatment?
20 A retail store offers a promotion where
customers get a free mobile cover worth
₹500 on the purchase of a mobile phone
worth ₹20,000. How should this
transaction be classified under GST, and
what is the tax treatment for the mobile
cover?

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CONCEPT GRILLS ON CHARGE UNDER CGST:

Discuss whether the following services are taxable or exempted and also specify the person
liable to pay GST:
S.N Taxable/
Activity Who is liable to pay GST?
o. Exempted
1 ABC Pvt. Ltd. appointed Mr. Zaker as
their independent director and paid
him the sitting fees of `1,00,000
2 Micro Apparels (registered dealer) in
Chennai, Tamil Nadu, avails fashion
designing services of `50,00,000
from Prabhu Designs in Singapore.
3 Express Parcel Post Services
provided by Department of Post to a
business entity.(ATO > threshold limit)
4 ABC Ltd. avail service of Rudra goods
transport agency for transportation
of goods from factory located in
Mumbai to its Nasik depot and paid
freight `1,00,000 and applicable GST
is 5%
5 Bharat Jewellers (sole
proprietorship) paid `50,00,000 for
sponsorship of Miss India beauty
pageant for sponsorship service.
6 Mr Veer is an agent of Life Insurance
company in rural area and acting as
business facilitator. The insurance
company pays commission `
8,00,000
7 ABC Enterprises, dealers in Cars
appointed Mr. A, as a recovery agent
to recover the amount payable by the
defaulters of EMI.
8 X owns a commercial plot of land of
2,000 sq mts. He is giving such land
on lease for 30 years for a
consideration of `2.5 crores to India
Builders, who will construct a
commercial complex for sale to
business entities, where the entire
consideration is received after
completion certificate

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9 Y owns a plot of land of 1,000 sq mts

in a posh residential area in
Bengaluru. He is giving such land on
lease for 30 years for a consideration
of `3 crores to Mantri Developers,
who construct residential apartments
for sale to buyers (All flats sold before
obtaining completion certificate)
10 Mr. Ramesh owns a commercial
property, and it is given to M/s
Pacific P. Ltd. On rent In which Mr.
Ramesh is one of the directors.
Consideration involved is `2,00,000
per month
11 Mr. Madan appointed as arbitrator
for handling an environment issue
faced by Save forest, a government
agency whose aggregate turnover
during previous year exceeds
threshold limit.
12 Bala tour operators, a partnership
firm provided cars on rent to
Brainery P. Ltd. For transportation of
its employees and the rate
mentioned in the invoice is 5%
13 Tips Music P. Ltd. Transferred the
copyright related to music to a
company for using the said music in
their advertisement.
14 Rudra Ltd. Has taken a residential
property for providing
accommodation to its newly joined
employees from Mr. Ashok and paid
a consideration of `2,00,000 per
month
15 X Ltd. Has taken security agency
services from Task Force Security
Ltd. For which a payment of `95,000
is made.
16 Mr. Atul is an agent of Life Insurance
Co. The insurance company pays
commission (excluding tax) ₹6 Lakh
to him.
17 Temporary transfer of copyright
pertaining to music composed by Mr.

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A.R Rahman (Registered person) to

Arise Pvt. Ltd. (a registered
production company).
18 Services provided by Mr. Shyam (a
recovery agent to HDFC bank)
against commission of ₹40,000.
19 Temporary transfer of copyright on
5/10/2020 pertaining to a book
authored by Mr. Tharun Raj
(Registered Person) to Taxmann
publications Pvt. Ltd. (a registered
publisher). Mr. Tharun Raj wanted to
avail ITC w.r.to inward supplies made
by him.
20 Services provided by Mr. Mohan a
business facilitator to Bank of Baroda
for its rural branch for a commission
of ₹15,000
21 M/s. Surya Travels (Registered
person) has given on hire an electric
car to MRF Ltd. (registered person
for 20 days). M/s. Surya Travels
raises invoice on MRF Ltd. to pay
GST @ 12%.
22 M/s. Vijay Travels (Registered
person) has given on hire a tempo
traveller to Swamy Associates (a
registered attorney firm). M/s Vijay
travels raises invoice on Swamy
Associates for 5%.
23 Zoom Cars Private Limited (a
registered person) has given a car on
hire to XYZ Ltd. (a registered
person). Zoom cars private limited
has opted to pay GST @ 5%.
24 Innovate Pvt. Ltd. paid ₹50,00,000 as
sponsorship money to an event
organised by Indian Hockey
Federation
25 M/s. ABC security agency (A
registered partnership firm) has
provided security services to M/s.
FUTURE Ltd. M/s. FUTURE Ltd. is not
registered under GST as their

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aggregate turnover has not exceeded

the threshold limit.
26 XYZ Ltd. availed services of Vimal
Goods transport agency (Applicable
GST is 12%) for transportation of
goods by road from factory located
in New Delhi to its Jaipur depot and
paid freight of ₹1,00,000
27 Mr. Batra is an arbitrator and he
provided services to M/s. Save
Nature (Government Agency) whose
turnover during previous year is
₹400 lakhs
28 Department of Police, T.N provided
security services to M/s. Taj Group of
Hotels, whose turnover during
previous year exceeds the threshold
limit and the charges is ₹20,000
29 Mr. Santosh received 40 lakhs as a
consideration for transfer of
development rights related to a
promoter
30 M/s. ABC road lines a GTA provided
services to a partnership firm for
transportation of Organic manure.
They opted to pay GST under FCM.
31 GRT Premium Kitchen is located in
GRT Regency a 5-star hotel in
Chennai offering rooms in the ranges
of `5,000 to `12,500 per day and
such kitchen supplied food through
Zomato to their premium customers.
32 UrbanClap, an e-commerce
operator, facilitated housekeeping
services in Delhi with a total taxable
value of ₹2,50,000 in August 2024.
The housekeeping service provider is
registered under GST. Calculate the
GST.
33 Swiggy, an e-commerce operator,
facilitated restaurant services in
Mumbai with a total taxable value of
₹10,00,000 in the month of July
2024. The restaurant providing the

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services is not registered under GST.

Calculate the GST liability.
34 B Ltd. Is a promoter of real estate
Residential project in Mumbai. One of
its projects is situated near Nariman
Point (It is a Residential complex
having 27 floors). During Dec 2021, B
Ltd. Procures the following from
unregistered suppliers.
(i) Cement - 5 lakhs out of
total value of 15 lakhs
(ii) Other inputs - `60 lakhs
out of total value of `100
lakhs
(iii) Input services - `40
lakhs out of total value of
`80 lakhs
Compute GST payable under RCM
u/s 9(4) by B Ltd.
35 What will be your answer in the above
case, if B Ltd. Is a promoter of real
estate commercial project in Mumbai
and such complex is a commercial
complex and other information
remains same.
36 Mr. A, a director of XYZ Pvt Ltd,
provides personal services of renting
his immovable property to the
company on 1st November 2023. The
monthly rent is ₹50,000. Is the
company required to pay tax under
the reverse charge mechanism?
37 A partnership firm operates a fleet of
omnibuses and offers passenger
transportation services through the
Ola platform. Determine who is
responsible for paying the GST and
What will be your answer if the
supplier is a company?

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CONCEPT GRILLS ON CHARGE UNDER IGST:

1 A software company in India provides
services to a client in Russia. The
payment for these services is received in
a Special Rupee Vostro account as
permitted by the RBI. Discuss whether
this remittance qualifies as a
consideration for the supply of services
to be treated as an export of services
under GST.

2 ABC Exports intends to export goods

worth ₹50,00,000 to Germany. The
company opts to export under Bond
instead of paying IGST. Is it mandatory
for ABC Exports to execute a bond?

3 A Ltd., a registered person in India,

receives an order from B Ltd. in the
USA. Instead of shipping the goods from
India, A Ltd. purchases the goods from
C Ltd. in Singapore and directly ships
them to B Ltd. in the USA. Explain the
GST liability for A Ltd. on this
transaction.

4 A registered supplier in Delhi makes an

inter-state supply of goods to a buyer in
Chandigarh. The IGST paid on the
transaction is ₹40,000. How will the
IGST be apportioned between the
Central Government and the Union
Territory?

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5 ABC Ltd. was subject to a penalty of

₹10,000 for late payment of IGST on an
inter-state supply. How will this penalty
amount be apportioned between the
Central Government and the State
Government?

6 ABC Consulting exports services worth

₹6,00,000 to a foreign client but fails to
receive the payment in foreign currency.
Can the company claim a refund of the
ITC, and are there any conditions for
such a claim under GST? What will be
your answer if they export goods?

7 A company located in Odisha supplies

heavy machinery to an offshore
platform located in the territorial waters
near the coast of West Bengal. How will
the place of supply be determined under
GST, and what taxes will apply?

8 ABC Ltd., a marine logistics company in

Mumbai, provides maintenance services
to a ship operating in 180 nautical miles
from base line. The ship is owned by an
Indian company. How should this supply
be classified under GST?

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CONCEPT GRILLS ON EXEMPTIONS UNDER GST:

IMPORT OF SERVICES:
Whether it
Whether it is
constitutes supply Who is liable to
S.No. Activity taxable supply or
under Sec. 7(1)(b) or pay GST?
exempted supply?
7(1)(c)?
1 A Ltd. (Unregistered)
imported consultancy
services from M/s. Hilltop
Management consultants
(Australia) for a
consideration of $10,000
2 Mr. A (Unregistered)
imported marketing services
from facebook Inc. (USA)
against $100 for personal
purpose
3 M/s Do well charitable trust
(Registered) imported
Microsoft Inc. (USA) one
drive services for storing its
documents for a
consideration of $400
4 A Ltd. (Unregistered)
imported technical services
from its holding company in
UK w/o consideration
5 PQR & Co, a partnership
firm (Unregistered)
imported cloud computing
services from Microsoft Inc.
(USA) against a
consideration of $4,000
6 Jatin, a proprietor, has
received the architect
services for his house in
Punjab from an architect
located in New York at an
agreed consideration of $
5,000.

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7 ABC Associates received

technical support services
from its head office located
in Malaysia. The head office
has rendered such services
free of cost to its branch
office.
8 Raman is an Electronic
Commerce Operator in
Chennai (GST registered).
His son 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.
9 Raman is an Electronic
Commerce Operator in
Chennai (GST registered).
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
business matter.
10 Central Govt. received legal
advice for a litigation w.r.to
security concerns for
Indians in U.K & paid 1,000
pound as a legal fees to Mr.
Antony of U.K. (London).

ADVOCATE SERVICES:
S.no Supplier Recipient Taxable (or) Exempted
1 Individual Individual advocate (Senior),
advocate (Other whose ATO during PY ≤
than Senior) Threshold limit for registration
2 Individual Individual advocate (Senior),
advocate (Other whose ATO during PY >
than Senior) Threshold limit for registration
3 Firm of A Ltd (ATO during PY = ` 18
Advocates Lakhs, ATO during CY = `22
lakhs)

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Note: Applicable Threshold

limit is `20 lakhs
4 Firm of A Ltd (ATO during PY = ` 16
Advocates Lakhs, Obtained voluntary
registration)
Note: Applicable Threshold
limit is `20 lakhs
5 Individual M/s. RMN & Co. partnership
advocate (Other firm engaged in exempted
than Senior) supplies, Whose ATO is `80
lakhs during PY. They are not
registered during PY and CY.
6 Senior Advocate Individual

7 Senior Advocate Government Agency, whose

ATO during PY > Threshold
limit for registration
8 Arbitrator A Ltd., whose ATO during PY ≤
Threshold limit for registration

9 Senior Advocate Firm of advocates, who in turn

provided services to XYZ Ltd.
(ATO during PY > Threshold
limit)
10 Senior Advocate Individual advocate, who in
turn provided services to an
Individual

TRANSPORTATION SERVICES:
S.No. Activity Taxable/ Exempted
1. Passenger transportation – metro travel
2. Passenger transportation – Air travel
3. Passenger transportation – Radio taxi travel
4. Passenger transportation – Rail travel in sleeper class
5. Courier agency services
6. Transport of pilgrims by cable car to the holy shrine situated at
the mountain top
7. Transportation of tourists in a ropeway to uphill in Ooty
8 Passenger transportation – Rail travel by general class

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9 Passenger transportation – Rail travel by 1st class air

conditioned coach
10 Passenger transportation – Rail travel by 2 tier air conditioned
coach
11 Passenger transportation – Rail travel by 3 tier air conditioned
coach
12 Passenger transportation – By national waterways
13. Passenger transportation – By stage carriage (A/C)
14 Passenger transportation – By non-air-conditioned contract
carriage for tourism
15 Transport of chemical fertilizers by rail
16 Transport of defence and military equipments by rail
17 Transportation of postal mails and postal bags by rail
18 Transportation of household effects by rail
19 Transport of petroleum products by rail
20 Transport of relief materials to flood affected areas by rail
21 Transport of newspapers and magazines registered with
registrar of newspapers by rail
22 Transportation of milk by rail
23 Transportation of rice by rail
24 Transportation of alcoholic beverages by rail
25 Transportation of passenger from Chennai to Gujrat port in a
vessel, other than for tourism purpose.

EDUCATION SERVICES :
S.No. Activity Taxable (or) Exempted
1 Tuition fees collected by School

2 Exam fees collected by School

3 Annual function and trip charges collected by School

4 Placement services provided by College to corporates

5 Renting of auditorium by a school for a conference

6 Renting of Hall by a school for a marriage function

against a consideration of `8,000 per day

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7 Franchisee fees collected by a school from XYZ Ltd.

8 Fee collected by a play school ‘Tiny Tots’

9 Fee collected by a higher secondary school ‘Vidya

Bhawan’

10 Fee collected by ‘Focus Education’ a coaching centre

providing NEET Entrance exam coaching

11 Services provided by IIM – Ahmedabad (Executive

management programme for 6 months)

12 Services provided by ‘Ananth Academy’ for

examinations of CPA, USA

13 Running a Boarding School

14 Conducting private tuitions

15 Home tuition at students house

16 Conducting modular employable skill course

(approved by National council of vocational training)

17 Renting of premises by a College for running a

canteen providing food to students

18 Training programme offered by a School to its

teachers to improve their knowledge

19 Housekeeping services provided by Clean Well

Manpower agency to Himaja School for the annual
day function conducted in YMCA grounds
20 Transportation services provided by ABS travels to a
college by way of transporting the students and staff
of such college

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Discuss whether the following activities are taxable and exempted along with brief justification:
Taxable/
S.No. Activity Justification
Exempted
1 The Karnataka Cricket
association, Bangalore requests
the Commissioner of Police,
Bangalore to provide security in
and around the cricket stadium
for the purpose of conducting the
cricket match. The commissioner
of police arranges required
security for a consideration of
`6,000 per day. (Turnover of
cricket association during
previous year exceeds threshold
limit)
2 Services provided by Senior
advocate to Firm of advocates,
who in turn provided services to
XYZ Ltd. (ATO during PY >
Threshold limit)
3 Z Ltd. A tour operator provides
tour operator service to a foreign
tourist (5 days and 10 hours in
Goa; 4 days and 13 hours in
Maldives) where the total
consideration for the tour is
`10,00,000
4 A consulting firm in India
provides services worth
₹25,00,000 to the Reserve Bank
of India related to foreign
exchange reserves management.
What will be your answer if the
consulting firm is outside India
5 A foreign diplomatic mission in
India receives services worth
₹40,00,000 from local suppliers.
6 A charitable trust rents out a
religious place meant for general
public, for a wedding ceremony
with a total rental charge of
₹15,000/day.
7 A technology business incubator
provides consulting services to

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start-ups with total fees of

₹30,00,000 p.a.
8 A regional airline earns
₹50,00,000 from passenger
transport services under the
regional connectivity scheme.
Such amount is received in the 4th
year of its operations.
9 A common bio-medical waste
treatment facility charges
₹12,00,000 for the treatment of
waste from various clinical
establishments.
10 Tirumala Tirupathi Devasthanam
(TTD) owns residential complexes
in Tirumala. These are given on
rent to pilgrims, who visit
Tirumala for Darshan. Daily rent
of these units is as follows –
Category - A: `800 per day,
Category – B: `1,500 per day,
Category – C: `3,500 per day.
11 Transport of passenger by air (in
economy class) service provided
by Indigo Airlines from Sikkim to
Mumbai (Value of taxable Service
is `15,000)
12 What will be your answer in
above case if it is not economy
class but business class
13 Pune Municipal corporation
charges `40,000 as registration
fees for opening a shop in the
market near railway station
14 Delhi Edition of Hindustan times
is transported by rail for a freight
of `12,000 from New Delhi to
Kolkata
15 IIM Ahmedabad charges
`3,50,000 per company for
participating in campus
recruitment to select students for
providing job.

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16 Kerala industrial development

corporation gives an industrial
plot of land to X Ltd. On lease for
a period of 85 years (one time
lease rent being `30 lakhs). This
plot will be utilized by X Ltd. For
development of infrastructure for
finance business.
17 General insurance provided by
Max Bupa company under
Pradhan Mantri Suraksha Bhima
yojana
18 Mr. Sekhar provides catering
services to Osmania university,
Hyderabad for `15,00,000
19 Service by way of access to
Mathura Lucknow highway on
payment of toll charges of `2,500
20 Skill Up P. Ltd. Provides skill
development training services to
economically weak students
where the cost per student is
`90,000 but they collect only
`9,000 from student and balance
paid by SG of T.N.

21 ABC Ltd received a service from

the Central Government relating
to the transportation of goods by
rail on 5th October 2023. The
service was provided as part of
an inter-state supply. Discuss
whether this service is exempt
and who is liable to pay GST?

22 A municipal corporation provides

horticulture services for
maintaining public parks in
residential colonies and charges
₹1,00,000 to the Central Public
Works Department (CPWD).
Discuss whether this service is
exempt from GST?

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23 A shopping mall provides

electricity to its tenants as part of
a composite supply that includes
renting space. The electricity
charges are billed separately.
Discuss whether this supply
attracts GST and under what
conditions it might be exempt.

24 A private contractor provides

services related to solid waste
management to a governmental
authority under a contract valued
at ₹3,00,000. Discuss whether
this service is exempt from GST

25 A contractor supplies services

related to public health and
sanitation to a municipal
corporation for ₹5,00,000 on 1st
November 2023. Is this service
exempt from GST

26 A District Mineral Foundation

Trust (DMFT) established by a
State Government undertakes
the construction of a community
health center in a mining-
affected area. The total contract
value is ₹30,00,000. Discuss
whether this service is exempt
from GST

27 Indian railways of South-Central

Zone provided services to Easter
Zone and earned `4,00,000 for
the month of December.

28 Tamil Nadu Board of Secondary

Education collected `8,50,000
from Chetan Vidyalaya for
providing affiliation services.

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CONCEPT GRILLS ON TIME OF SUPPLY:

S.
Transaction Time of supply
No.
1 ABC Ltd. received an advance payment of
₹1,00,000 from XYZ Pvt. Ltd. on March 1,
2024, for the supply of goods. The goods
were dispatched on March 10, 2024, and
the invoice was issued on March 12, 2024.
2 PQR Ltd. provided consultancy services to
MNO Ltd. on April 1, 2024. The invoice was
issued on May 10, 2024. Payment was
received on May 20, 2024.
3 DEF Ltd. entered into a contract with GHI
Ltd. on January 1, 2024, for the supply of
IT services over 12 months. Milestone
payments are due every three months.
The first milestone was completed on
March 31, 2024, and the invoice was
issued on April 5, 2024.
4 ABC Ltd. imported goods from a foreign
supplier on August 1, 2024 (Invoice is
issued on the same date). The bill of entry
was filed on August 5, 2024, and the goods
were cleared from customs on August 10,
2024, and entry duly made in the books
on the same date. The payment was made
on August 15, 2024.
5 ABC Ltd. provided consulting services to
XYZ Ltd. The contract value was
₹5,00,000. An advance of ₹1,00,000 was
received on October 1, 2024, and the final
payment of ₹4,00,000 was received on
November 15, 2024. The services were
completed, and the invoice was issued on
November 10, 2024.
6 DEF Ltd. supplies goods continuously to
GHI Ltd. under a contract that requires
payment every month. The goods for the
month of January 2024 were supplied by
January 31, 2024, but the invoice and
account statement were issued on
February 5, 2024. The payment was
received on February 10, 2024. Such

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 CONCEPT GRILLS

payment is not based on account

statement

7 GHI Ltd. sent goods to JKL Ltd. on a

supply-on-approval basis on June 1, 2024.
JKL Ltd. accepted the goods on June 30,
2024. The invoice was issued on July 1,
2024, and payment was received on July
15, 2024.
8 MNO Ltd. entered into a contract to
provide consulting services to UVW Ltd.
for a period of one year starting January
1, 2024. An advance payment of
₹2,00,000 was made on January 1, 2024.
However, the contract was terminated
early on June 30, 2024. A final invoice was
issued on July 5, 2024, for the services
rendered, and payment was received on
July 15, 2024.
9 ABC Ltd., located in India, receives
consultancy services from its associated
enterprise in the USA. The services are
recorded in ABC Ltd.’s books on 1st
March, and payment is made on 15th
March. What is the time of supply?
10 A retailer issues a voucher on 10th
January, which is redeemable for specific
services at any of its branches. The
voucher is redeemed on 20th February.
When will the time of supply arise?
11 A hotel issues a general voucher on 5th
May, which is redeemable for various
services. The voucher is redeemed on
15th June. When will the time of supply
arise?
12 A service is provided on 10th September,
and no invoice is issued. The recipient
records the receipt of services in their
books on 15th September, and payment is
made on 25th September. What will be the
time of supply?

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 CONCEPT GRILLS

CONCEPT GRILLS ON PLACE OF SUPPLY:

S.No. Transaction Place of supply
1 ABC Ltd. in Maharashtra sells goods to XYZ
Ltd. Registered in Karnataka. The goods are
dispatched from ABC Ltd.’s warehouse in
Maharashtra and are delivered to XYZ
Ltd.’s office in Karnataka.
2 PQR Ltd. in Gujarat places an order with
DEF Ltd. in Rajasthan to supply goods to
MNO Ltd. in Maharashtra. The goods are
shipped directly from Rajasthan to
Maharashtra.
3 ABC Ltd. in Kerala supplies food products to
a cruise liner, which is located in the port of
Chennai, Tamil Nadu, at the time of supply.
The goods are to be consumed on board
the vessel while it is traveling from Chennai
to the Andaman Islands.
4 PQR Ltd. in Uttar Pradesh sells machinery
to STU Ltd. in Madhya Pradesh. STU Ltd.
requests that the machinery be installed
and commissioned at their factory in
Madhya Pradesh.
5 ABC Ltd. in Delhi provides architectural
services for a new commercial complex in
Mumbai, Maharashtra, owned by XYZ Ltd.
headquartered in Gujarat.
6 A customer from Karnataka visits a
restaurant in Goa operated by DEF Ltd. and
consumes a meal. The customer pays the
bill using a credit card issued in Karnataka.
7 PQR Ltd. based in Tamil Nadu organizes a
training workshop for employees of GHI
Ltd., located in Rajasthan. The training is
conducted physically in Chennai, Tamil
Nadu. What will be your answer if GHI Ltd.
Is registered or unregistered?
8 LMN Ltd. in Punjab arranges for the
transportation of goods from Haryana to
Madhya Pradesh for their client, ABC Ltd.,
headquartered in Gujarat. (B2C
transaction)
9 XYZ Ltd. in Maharashtra subscribes to a
mobile connection from a telecom service

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 CONCEPT GRILLS

provider located in Karnataka. The

connection is used primarily in
Maharashtra.
10 MNO Ltd. in Tamil Nadu provides
advertisement services to the Government
of Kerala for promoting tourism in Kerala.
The advertisements are broadcast
nationwide.
11 A logistics company based in India provides
transportation services to a client located in
the US for transportation of goods from
India to US. What is the place of supply in
this case?
12 An advertising company in Delhi hires
space on billboards located in Mumbai from
a vendor for ₹2,00,000 and further sells
advertising space to a client for ₹3,00,000.
Determine the place of supply and the
applicable GST on both transactions.
13 An unregistered customer from Karnataka
buys goods over the counter in
Maharashtra and transports them to
Karnataka. The invoice issued mentions only
the customer’s name and state. Determine
the place of supply and the applicable GST
type
14 M/s Navatha a transporter registered under
GST, located in Vijayawada. M/s C Ltd. of
Chennai, not registered under GST,
received services from M/s. Navatha for
transport of goods from its warehouse in
Vijaywada to Singapore. M/s Navatha
delivered goods at Singapore. Would your
answer change if it is transportation of
Mail/Courier?
15 Mr. Remo located in Mumbai, is a best
choreographer. He has been appointed by
M/s. DANCE IT NOW, unregistered person
in Mumbai, as a judge to appraise the
performance of the participants. He visited
Bengaluru to appraise the performance of
dance show competition of various
participants.
16 Swamy Ltd. of Chennai acquired the
business of SA Ltd. at Johannesburg, South

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 CONCEPT GRILLS

Africa. Swamy Ltd. entered into a contract

with M/s. Krish and Krish Architects,
Chennai to do the interiors of the building
of new business at South Africa
17 A vessel Bhishma, owned by sea king
logistics incorporated in Singapore sailing
from USA to Australia via, India carries
various types of capital goods namely 'A,C
and D' for PKT Manufacturers, Germany CG
- A is destined to Mumbai port and on
account of submission of bill of
transhipment product A transhipped to
Chennai port as ultimate destination in
India.
18 Super Bus Ltd. based in Pune, provides
services of transportation of passengers to
tour companies. One tour company based
in Mumbai, engaged the services of Super
Bus Ltd. to transport passengers from
Karnataka to Goa for a holiday package.
Tour company is a registered supplier of
tour services. All passengers will board the
bus from various places in Karnataka.
19 The Govt. has hired 200 hoardings in
Lakshadweep and 175 hoardings in Chennai
for providing advertisement of Gas Subsidy
and contract contains the consideration for
these hoardings separately. Hoarding
services supplied by M/s X Ltd. located in
Hyderabad for a contract price of ₹
10,00,000 (Excl. GST @ 18%).
20 Zed Ltd. is engaged in fertilizer
manufacturing in Karnataka. It has GST
registration in Karnataka (Zed Ltd. does not
have registration in any other State/ Union
Territory). Tapas is head of finance
department of the company. On January 10,
2021, Tapas goes to Mumbai to attend a 3-
day conference on international finance
organised by Harvard Business School at
Nariman Point. For this purpose, he incurs
the following expenditure – a) Bengaluru-
Mumbai air ticket (paid to Air Shakti,
Karnataka): ` 26,000 + GST.

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 CONCEPT GRILLS

b) 3-day conference participation fee (paid

to Harvard Business School, taken
registration in Mumbai as a Casual taxable
person): ` 1,50,000 + GST.
c) Hotel expenditure (paid to Senerio
Hotels, Mumbai): ` 60,000 + GST.
d) Mumbai-Bengaluru air ticket (paid to
Pawan Airways, Mumbai): ` 32,000 + GST.
These expenses are paid by cheque in Zed
Ltd. Recipient of supply is Zed Ltd. (GSTIN
of Zed Ltd. is given on tax invoices).
21 Mr. X, registered in Bengaluru has availed
POST PAID Land-line services from BSNL,
registered in Bengaluru. The telephone is
installed in residential premises in Jaipur
and the billing address of office of Mr. X is
in Bengaluru.
22 Mr. X of Mumbai arranged for destination
wedding of his son at Pushkar (Rajasthan).
He booked a resort at Pushkar for
accommodation of his guests and also
performing the marriage ceremony.
Decoration was also provided by the resort
23 XYZ Ltd. of Delhi has entered into a
contract with ASL Training Ltd. of Mumbai
for training and performance appraisal of
its employees. The services were performed
at Dehradun Training Centre of ASL
Training Ltd. Determine the Place of supply
of services in case XYZ Ltd. is registered in
Delhi. What would your answer be in case
XYZ Ltd. Is an unregistered recipient?
24 Mr. A of Pune, booked on online for the
Tiger Safari at the Ranthambor National
Park and hired a jeep to be taken around
for the safari. Determine the place of supply
for the services. Here, there are two kinds
of supply of services-first admission to the
park and second hiring of the jeep.
25 Mr. X has availed post-paid mobile services
from BSNL registered in Bengaluru. Mr. X
is registered under GST Law in Bengaluru
but the billing address of residential
premises of Mr. X in Jaipur

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 CONCEPT GRILLS

26 Mr. X residing in Delhi traveling with Indian

Airlines is provided with the movie-
ondemand services as on-board
entertainment during the Kolkata-Delhi leg
of a Bangkok-Kolkata-Delhi flight.
Determine the place of supply of service
provided to Mr. X.
27 A person from Mumbai goes to KulluManali
and avails some services from ICICI Bank
in Manali. What will be the place of supply?
28 Mr. X has purchased pre-paid mobile
vouchers of BSNL registered in Bengaluru
through internet banking. Mr. X is
registered under GST in Bengaluru but in
BSNL’s records, address of Mr. X is his
residence in Jaipur.
29 Jas Fashions Ltd. an Indian fashion
designing company registered in Delhi
hosts a fashion show at Toronto, Canada.
The firm receives the services of ABC Ltd.
of Mumbai for organizing the event.
Determine the place of supply of services
provided by ABC Ltd.
30 Mr. A of Raipur (unregistered person) hires
the services of M/s XYZ an event
management company registered in Jaipur,
for organising the marriage ceremony of
his daughter at marriage garden in Jaipur.
Determine place of supply of services
provided by XYZ Ltd. What would be your
answer in case marriage takes place in
Dubai?
31 Government of India launched a project
“make in India” and appointed ABC
Advertising agency of Haryana for
advertisement of the project all over the
country. ABC agency advertises the project
in all states of India. Determine the place of
supply of advertisement services.

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 CONCEPT GRILLS

CONCEPT GRILLS ON VALUE OF SUPPLY:

1 ABC Architects entered into a contract
with BTC Group of Hotels to design the
architecture of one of its hotels at an
agreed consideration of ` 20 lakh. Out
of the total consideration, it asked BTC
Group of Hotels to pay ` 12,50,000 to
its material supplier Khanna
Manufacturers. What is the value of
supply?

2 Mr. Ram provided repair and

maintenance services of equipments
belonging to A ltd., which are used in
manufacture of oxygen. The repair and
maintenance work was carried out at
factory of A ltd. using electricity
belonging to A ltd. the charges for
services are fixed at `1,00,000. While
value of electricity used is estimated at
`10,000. What is the value of supply?

3 A supplier provides IT consulting

services for INR 10,00,000. The terms
include an additional INR 1,00,000 for
software licensing and INR 50,000 for
travel expenses, both included in the
invoice. The supplier offers a 10%
discount on the IT consulting services.
The supplier also incurs INR 75,000 for
a special training session, which is paid
by the recipient directly. Determine the
value of supply.

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 CONCEPT GRILLS

4 M/s. Korelal Printon (P) Ltd., a

registered person under GST in the
State of Jammu & Kashmir, has been
engaged in the business of offset
printing and has been providing services
to various book publishers. A publisher
situated in the State of Himachal
Pradesh, a registered person under GST
sent content of the books to be printed
by M/s. Korelal Printon (P) Ltd., in PDF
format. The publisher also sent paper
worth ` 4.00 Lakh to the printer, free of
cost for the purposes of printing its
books on 10 Nov 2018. M/s. Korelal
Printon (P) Ltd., raised an invoice of `
1.50 Lakh against printing of books and
returned the printed books through
Challan to the publisher on
20Feb2019.The Proper Officer,
intercepted the vehicle and claimed that
M/s. Korelal Printon (P) Ltd., should have
sent the invoice of ` 5.50 Lakh, i.e.
including the value of free of cost paper
supplied by the publisher. What is the
value of supply?

5 Z Ltd. is manufacturing lunch boxes and

they have entered into contract with Y
Ltd. to make the lids for the lunch boxes.
As per the contract, Z Ltd. has to send
the design and mould based on which Y
Ltd. shall manufacture lids. Whether
value of moulds and dies included in the
value of lids?

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 CONCEPT GRILLS

CONCEPT GRILLS ON INPUT TAX CREDIT:

Blocked ITC:
Whether
S. No Inward Supply ITC Justification
available?
1 Mr. X (Chartered Accountant) No
purchased car for use in his
business
2 Cool Cab P. Ltd. purchased 4 cars Yes
for use in the business of
transportation of passengers
3 MRF Ltd. purchased a bus (40- Yes
seater excl. driver) for transportation
of its employees
4 Tagore School purchased a school No
bus (12 seater excl. driver) for
transportation of students
5 Pizza Hut purchased 10 two wheelers No
for food delivery
6 Ford Ltd. received the services of Yes
authorized service station with
respect to the trucks owned by it.
7 Car Purchased by a manufacturing No
company for official use of its
employees

8 Car purchased by a dealer for sale to Yes

customers

9 Cars purchased by a company Yes

engaged in renting out cars for
transportation of passengers

10 Cars purchased by a car driving Yes

school

11 Trucks purchased by a company for Yes

transportation of its finished goods

12 Aircraft purchased by RIL for No

transportation of its director

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 CONCEPT GRILLS

13 Rent-a-cab service received by a

company in BPO operations for
transportation of its employees where
it is mandated by Government order

14 Mr. Rohit is engaged in providing

Beauty Treatment Services. On a
particular day, with a view to cater to
the demand of large number of
customers, he availed the Beauty
Treatment Services from Mr. Wazir.
Accordingly, Mr. Wazir raised an invoice
on Mr. Rohit for stipulated consideration
along with applicable GST.
15 ABC Ltd, is engaged in supply of
transport of passengers by air
services. With a view to provide its
passengers the facility of food and
beverages, it avails outdoor catering
services from Hotel Taj, New Delhi.
Resultantly, Hotel Taj raises a tax invoice
on ABC Ltd. for supply of outdoor
catering services for stipulated
consideration along with applicable
GST.

16 Outdoor catering services received by

a factory, where it is mandatory
under Factories Act to provide food
facility to workers

Comprehensive:
1 A company availed ITC of `12,000 on
goods purchased on credit (Goods
purchased on 12/10/23 and invoice also
on the same date). However, the
company failed to make payment to the
supplier within 180 days from the date
of invoice. When the ITC needs to be
reversed and what is the interest
payable if such availed ITC is utilised in
the month of Dec 2023.

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 CONCEPT GRILLS

2 A manufacturing company claims ITC of

`60,000 for inputs used to produce both
taxable and exempt goods. At the end of
the month, it is determined that
exempted turnover is `20 lakhs and
taxable turnover is `30 lakhs. Calculate
the amount of ITC that needs to be
availed and reversed.

3 A business made an advance payment

of `50,000 plus 18% GST for goods. The
supplier will deliver the goods in the next
month. Can the business claim ITC on
the advance payment? If so, how much?

4 A company purchased a car for its CEO,

costing `10,00,000 plus 28% GST. The
car is used exclusively for office
purposes. Is the company eligible to
claim ITC on the car purchase? If so,
how much?

5 A manufacturer purchased machinery

for `5,00,000 plus 18% GST. The
machinery will be used exclusively for
manufacturing taxable goods. Calculate
the ITC available for the machinery, if
the depreciation is computed on
`5,90,000 for the purpose of income
tax.

6 A company paid `2,00,000 plus 18%

GST for club membership fees for its
independent directors. It is mandatory
for the company to take membership for
its directors. Is the company eligible to
claim ITC on the GST paid for the
membership fees?

7 A business claimed ITC on the purchase

of office supplies amounting to `20,000
plus 18% GST. Later, 10% of the supplies
were found to be used for personal
purposes. Calculate the amount of ITC
that needs to be reversed.

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 CONCEPT GRILLS

8 A sole proprietorship is being converted

into a private limited company. The
proprietorship has an unutilized ITC of
`1,00,000 in its electronic credit ledger.
Can the ITC be transferred to the
private limited company? What is the
form required for such transfer and who
should certify the same?

9 A company sells a machine for

`1,50,000 plus 18% GST on 18/04/2024.
The machine was purchased on
23/07/2021 for `5,00,000 plus 18%
GST. The company had claimed ITC on
the original purchase. How much ITC
must be reversed/GST payable upon the
sale of the machine?

10 A pharmaceutical company claims ITC

on the purchase of medicines worth
`10,00,000 plus 12% GST. Later, some
medicines worth `2,00,000 expire and
are disposed of. Calculate the ITC to be
reversed for the expired medicines.

11 For the month of July 2024, ITC

reflected in GSTR-2B is `3,00,000 and
blocked ITC is `50,000 (Reflected in
GSTR-2B), ITC w.r.to non business
purpose is `25,000 (Not reflected in
GSTR-2B), GST paid under RCM is
`10,000 (Reflected in GSTR – 2B) & ITC
reversed in earlier months eligible to be
re-availed in July 2024 is `30,000 (Not
reflected in GSTR-2B). Compute the ITC
availed in GSTR-3B?

12 A taxpayer has an output tax liability of

`50,000 CGST, `50,000 SGST, and
`1,00,000 IGST. The taxpayer has ITC
of `40,000 CGST, `40,000 SGST, and
`10,000 IGST. How should the ITC be
utilized, and how much should be paid in
cash?

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 CONCEPT GRILLS

13 A taxpayer claimed excess ITC of

`2,50,000 in their GSTR-3B filing for the
month of April. Out of such `2,50,000 he
utilised `1,00,000 in the GSTR-3B of
June. The excess ITC was reversed in
the return filed for the month of July
GSTR-3B. Calculate the interest payable
for the excess ITC availed and reversed.

14 A taxpayer has a turnover of `75 lakh

for September 2024 and a GST liability
of `6,00,000. The taxpayer has ITC of
`7,00,000 for the month of September.
The taxpayer's cumulative tax payment
through cash ledger from April to
August 2024 was `40,000 out of the
total liability of `48,00,000. Is the
taxpayer exempt from Rule 86B? Also
compute net GST payable through cash
ledger for Sept 2024.

15 A taxpayer with a turnover of `55 lakh

has filed a refund claim for ITC on
account of exports in the previous
month. The GST liability for the current
month is `4,40,000 with an ITC of
`4,50,000. Does Rule 86B apply?

17 ABC Ltd. purchased machinery worth

₹10,00,000 (excluding GST) in January
2024 and claimed ITC of ₹1,80,000. In
April 2024, the company opted to switch
to the composition scheme. What is the
treatment of ITC claimed on the
machinery, and how should it be
reversed if applicable?

© THARUN RAJ 35 CA INTERMEDIATE NEW SYLLABUS

 CONCEPT GRILLS

CONCEPT GRILLS ON COMPOSITION SCHEME:

1 Turnover of a person during previous
year
T. N = `60 lakhs
K.A = ` 30 lakhs, and
Kerala = `40 lakhs
During the current year can that person
opt for composition scheme u/s 10(1)?

2 Turnover of a person during previous

year
T. N = `60 lakhs
K.A = ` 30 lakhs, and
Kerala = `40 lakhs
What is the limit upto which services can
be provided during current year, if they
have opted for composition scheme u/s
10(1)?

3 Turnover of a person during the previous

year Kerala = `60 lakhs Nagaland = `20
lakhs During the current year can that
person opt for composition scheme u/s
10(1)?

4 Aggregate turnover of a person in Tamil

Nadu, during the previous year is `120
lakhs and during the current year such
person opted for composition scheme
and their turnover is as follows: Taxable
goods = `40 lakhs Exempted goods = `20
lakhs Taxable services = `8 lakhs Interest
income = `8 lakhs What is the limit upto
which services can be provided during
current year?

5 In the above case (4), whether services

provided during the current year are
within the limit?

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 CONCEPT GRILLS

6 In the above case (4), What is the GST

payable under composition scheme u/s
10(1) during current year, if such person
is a manufacturer?

7 In the above case (4), What is the GST

payable under composition scheme u/s
10(1) during current year, if such person
is a trader?

8 A person commenced business in Kerala

and their pre registration turnover is `40
lakhs and post registration turnover is
`120 lakhs. Can such person opt for
composition scheme u/s 10(1)?

9 A person registered in Tamil Nadu

engaged in making following supplies
during previous year: Supply of goods =
`85 lakhs Interest income = `15 lakhs
Supply of services = `60 lakhs Can such
person opt for composition scheme u/s
10(1), during the current year? If yes,
what is the limit upto which services can
be provided during CY?

10 During the current year, a person

commenced business in Kerala as a
trader. Aggregate turnover for the year is
`180 lakhs and applicable threshold limit
for registration to such person is `40
lakhs and applicable rate of GST is 12%.
Compute GST payable if composition
scheme u/s 10(1) is opted?

11 What will be your answer in above case

(10), if their aggregate turnover for the
year is `130 lakhs and other information
remains same

12 A person being trader opted for

composition scheme u/s 10(1) during the
current year and the transactions are as
follows for the second quarter: Advances
received in the 1st quarter = `20 lakhs

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 CONCEPT GRILLS

(Supplies are made in 2nd quarter)

Advances received in the 2nd quarter =
`30 lakhs (Supplies are made in 3rd
quarter) Bill of supply for supplies in the
2nd quarter = ` 60 lakhs. Amount
received towards these bills of supply of
second quarter = `40 lakhs. Compute GST
payable under Composition scheme u/s
10(1)?

13 A person engaged in sale of beauty

products in their shop in Chennai (Tamil
Nadu) and is engaged in beauty parlor
services in Coimbatore (Tamil Nadu). This
person has obtained separate registration
in in these 2 places and ATO during
previous year is `45 lakhs. They want to
opt for composition scheme u/s 10(1) in
Chennai and u/s 10(2A) in Coimbatore?

14 Mrs. F, a taxpayer under the Composition

Scheme, had a composition tax liability of
`50,000 for the quarter ending Dec 2023.
She failed to pay the tax on time and
made the payment on 31st January 2024.
Calculate the interest on the late payment
if the interest rate is 18% per annum.

15 Mr. I, a manufacturer under the CS u/s

10(1) having ATO of `80,00,000 during
CY, receives legal services worth
`5,00,000 from an advocate. Calculate
the total GST liability of Mr. I, if the
applicable GST rate is 18% on legal
services.

© THARUN RAJ 38 CA INTERMEDIATE NEW SYLLABUS

 CONCEPT GRILLS

CONCEPT GRILLS ON TAX INVOICE:

Discuss whether E-Invoice or Dynamic QR Code is applicable based on the information given
S.No. Situation E-Invoice Dynamic QR Code
1 A Government Department is
registered under GST. It's
aggregate turnover in the
preceding financial year is ` 22
crore. They are making outward
supplies to registered as well as
unregistered persons.

2 Dream World Pvt. Ltd is registered

under GST in the state of Haryana.
During the preceding financial
year its annual aggregate turnover
was ` 12 Crore. In the month of
April 2023, it supplies goods worth
` 12 lakh to Nightmare Ltd (a
registered person in SEZ)

3 Bali Limited is registered under

GST in M.H and is situated in SEZ
having an aggregate turnover of
`600 Crores during previous year.
They made supplies to Adarsh P.
Ltd. An unregistered person

4 Harnam & Co., dealing in interior

decoration products made
supplies to various persons located
outside India. The aggregate
turnover of Harnam & Co. in the
preceding financial year is `650
crore

© THARUN RAJ 39 CA INTERMEDIATE NEW SYLLABUS

 CONCEPT GRILLS

CONCEPT GRILLS ON REGISTRATION:

1 XYZ Pvt. Ltd. is planning to transfer its
business to another entity through a
demerger. The company is registered
under GST in Karnataka. Will the new
entity be required to obtain a fresh
GST registration, or can it continue
with the existing registration?

2 A company, registered in Rajasthan,

plans to organize a one-time event in
Goa for sale of the goods traded by
them. The expected turnover from this
event is ₹15 lakh (Excl. GST @ 18%)
and estimated ITC is ₹15,000. What is
the type of registration and what is the
advance tax payable?

3 Mr. Arjun is a sole proprietor who runs

a small retail shop in Karnataka. His
turnover for the last financial year was
₹35 lakh. He also supplies a small
quantity of goods to Tamil Nadu worth
₹3 lakh. He is unsure whether he needs
to register under GST.

4 A partnership firm, XYZ Associates, is

engaged in providing legal consultancy
services in Maharashtra. Their annual
turnover is ₹18 lakh. They receive
services from an advocate on which
GST is payable under the Reverse
Charge Mechanism (RCM). Whether
XYZ Associates is liable to get
registered?

5 Mr. Vinod, an individual entrepreneur,

is applying for GST registration for his
new business venture. He opts for
Aadhaar authentication during the
registration process What is the time
limit within which it should be
completed? What will happen if it is not
completed?

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 CONCEPT GRILLS

6 Mr. A runs a small bakery in Delhi and

has an annual turnover of ₹18 lakhs.
He is considering expanding his
business to include online sales
through an e-commerce platform.
Explain whether Mr. A would need to
register for GST and under what
circumstances his registration would
become compulsory.

7 XYZ Ltd. operates from multiple states,

with its headquarters in Maharashtra
and branches in Gujarat and Tamil
Nadu. The taxable turnover in
Maharashtra is ₹35 lakhs, in Gujarat
₹12 lakhs, and in Tamil Nadu ₹25 lakhs.
Determine the GST registration
requirements for XYZ Ltd.

8 A manufacturing firm in Madhya

Pradesh had its GST registration
cancelled by the authorities on 1st
June 2024 due to non-compliance. The
firm corrected the compliance issues
and applied for revocation on 20th
Dec 2024. Evaluate whether the
application is on time?

9 The registration of Naman Associates

was cancelled by the proper officer by
an order dated 1st June for its failure
to furnish returns. The registration was
cancelled with effect from 1st January
itself. It applied for revocation of
cancellation of registration and the
order for revocation of cancellation of
Naman Associates is passed on 31st
July. They are required to file returns
for which period and what is the due
date of filing such returns?

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 CONCEPT GRILLS

10 What will be your answer in the above

case, if the registration was cancelled
with effect from 1st June itself.

11 The proper officer cancelled the

registration of Naman Associates on
11th October. The tax dues of Naman
Associates for July-September quarter
(determined by the proper officer on
16th December) are ` 50,000. Are
they required to pay such tax? Can it
be recovered by officer?

12 Varun Enterprises, a sole

proprietorship firm, is engaged in
supply of electrical goods in Delhi. The
firm is registered under GST. Varun is
the proprietor of the firm. He wishes to
expand his business and his friend –
Arun - approaches him to provide
additional capital for his business if he
is made a partner in Varun’s business.
Varun agrees and changes the
constitution of his business and form a
partnership firm – Varun Arun & Co.
Whether they need to get new
registration (or) make application for
amendment in registration?

13 Sweta InfoTech Services is the

provider of internet services in Pune.
Its aggregate turnover exceeds ` 20
lakh on 25th September. It submits the
application for registration on
27thOctober. Registration certificate is
granted on 5thNovember. What is the
effective date of registration?

14 Suvarna Industries is engaged in

manufacturing activities in Uttar
Pradesh. It has two manufacturing
units in UP - one in SEZ and another
outside SEZ. Can they obtain single
registration?

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 CONCEPT GRILLS

15 Ariza Pvt. Ltd., located in Madhya

Pradesh, is a supplier of taxable and
notified handicraft goods. It supplies
these goods in the neighbouring States
of Uttar Pradesh and Orissa. Its
aggregate turnover in the month of
April is ` 15 lakh. Are they required to
get registered?

16 XYZ Pvt Ltd applied for GST

registration on 1st August 2023 and
received the registration certificate on
10th August 2023. They have filed their
first GSTR-1 on 13th September 2023.
What is the time limit within which they
need to submit bank details and what
is the consequence if the bank details
is not submitted within the time limit?

17 An unregistered small business makes

intra-state sales of ₹15,00,000 through
an e-commerce operator in the FY
2024-25. Are they compulsorily
required to get registered and what
are the compliances to be followed by
the ECO in such case?

18 A person opting for composition

scheme make supply of goods through
ECO and whether the supplier can do
so? What are the compliances to be
followed by the ECO in such case?

19 XYZ Pvt Ltd failed to update its bank

account details within the 30-day
period after GST registration. The
registration was automatically
suspended by the system. What steps
should XYZ Pvt Ltd take to revoke the
suspension, and what are the
consequences if they fail to do so
within the stipulated time?

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 CONCEPT GRILLS

CONCEPT GRILLS ON PAYMENT PROCESS:

Discuss whether TDS is applicable based on the information given below:
S. No Situation TDS
1 Supply of stationery to Fisheries
Department, Kolkata Where the
contract value (Incl. of 18% GST) is
`2,60,000 and payment made is
`15,000 (Excl. GST)
2 Interior decoration of Andhra
Bhawan located in Delhi. Service
contract is entered into with the
Government of Andhra Pradesh
(registered only in Andhra Pradesh).
Where the contract value (Incl. of 18%
GST) is `12,39,000 and payment
made is `10,00,000 (Excl. GST)
3 Supply of printed books and printed
post cards to a West Delhi Post Office
[Out of total contract value of `
9,72,000, contract value for supply of
books (exempt from GST) is `
7,00,000 and for supply of printed
post cards (taxable under GST at
18%) is ` 2,72,000].
4 Maintenance of street lights in
Municipal area of East Delhi* [The
maintenance contract entered into
with the Municipal Corporation of
Delhi also involves replacement of
defunct lights and other spares.
However, the value of supply of goods
is not more than 25% of the value of
composite supply.] *an activity in
relation to any function entrusted to a
Municipality under article 243W of the
Constitution. Total contract value, all
inclusive is `3,50,000.

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 CONCEPT GRILLS

Discuss whether TCS is applicable based on the information given below:

S. No Situation TCS
1 Top Fashions, a designer cloth
dealer and registered in the State of
West Bengal, effected supply
through 'QUICK DEAL', an
electronic commerce operator. Net
value of taxable intra-State supplies
effected for the month of October
2019 was ` 1,50,000

2 DEF Ltd., an e-commerce operator,

collects ₹6,00,000 in November
2025, which includes ₹4,00,000 for
taxable goods at 12% GST and
₹2,00,000 for exempt goods.

3 ABC Ltd., an e-commerce operator,

collected ₹6,00,000 for sales made
in December 2024. After a customer
return and refund of ₹1,00,000, the
net sales amount becomes
₹5,00,000. The GST rate on these
sales is 18%.

4 PQR Ltd., an e-commerce operator,

receives advance payments of
₹2,00,000 in March 2025 for sales
expected to be completed in the
next month. The total value of the
sale, including GST at 18%, is
₹3,00,000.

5 A product is listed on Amazon but is

also available through Snapdeal’s
delivery service, which the customer
opts for. Payment is made through
Amazon, but Snapdeal handles the
logistics. Which e-commerce
operator should handle the TCS, and
how?

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 CONCEPT GRILLS

CONCEPT GRILLS ON RETURNS:

1 RST Ltd. had its GST registration compulsorily
cancelled by the tax authorities w.e.f. 1st April 2024,
due to fraudulent activities. The cancellation order
was issued on 10th May 2024. What is the time
limit for filing final return and what is the form?
2 JKL Ltd., a non-resident taxable person,
completed its business activities in India and
applied for cancellation of its GST registration.
The cancellation was effective on 1st March 2024.
Is JKL Ltd. required to file a final return under
Section 45 of the CGST Act?
3 PQR Ltd. is preparing its annual return for the
financial year 2023-24. They have an annual
turnover of `6 crores. The finance team is
unclear about the late fee for delay in filing
annual return by 30 days. What is the late fee?
4 A government department in Maharashtra, which
is a registered taxpayer under GST, is confused
about whether it is required to file an annual
return for the financial year 2023-24. The
department's accounts are audited by the
Comptroller and Auditor-General of India.
5 ABC Enterprises started its business operations
on 1st January 2024 and became liable for GST
registration on 15th January 2024. However, the
registration was granted only on 10th February
2024. During this period, ABC Enterprises made
several taxable outward supplies. When first
return needs to be filed and what are the details
to be mentioned in first return?
6 Mr. XYZ is a registered taxpayer who missed the
deadline for filing GSTR-1 (Other than nil return)
for the month of June. He filed the return on 15th
July instead of the due date, which was 10th July.
Calculate the late fee applicable?
7 A taxpayer opted for the QRMP scheme and
furnished the details of invoices for the first two
months of the quarter using IFF. The total value
of supplies was ₹60 lakh. The taxpayer made an
additional supply of ₹30 lakh in the last month of
the quarter. How will the taxpayer report these
supplies in GSTR-1, and what is the time limit for
reporting the remaining invoices?

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 CONCEPT GRILLS

8 A supplier discovers an error in the details of an

invoice that was included in the GSTR-1 filed for
August 2023. The error was noticed on 1st
December 2023. What is the last date by which
the error can be rectified in GSTR-1?
9 A registered taxpayer received legal services
from an advocate on 15th June 2024, valued at
₹100,000. The taxpayer is liable to pay GST
under the reverse charge mechanism (RCM) at
18%. The taxpayer filed GSTR-3B on 20th July
2024 but forgot to include the RCM liability.
Calculate the interest if the taxpayer rectified this
mistake by filing an amended GSTR-3B on 25th
July 2024.
10 A taxpayer filed GSTR-3B for the month of May
2024, claiming an ITC of ₹50,000. However, the
corresponding GSTR-2A reflected ITC of only
₹40,000. The discrepancy was due to one
supplier not filing their GSTR-1 on time. What
steps should the taxpayer take to correct this, and
what are the implications if the discrepancy is not
resolved?
11 A government department failed to file GSTR-7
for October 2023 by the due date (10th
November 2023). They eventually filed the return
on 25th November 2023. Calculate the late fee
applicable
12 A taxpayer missed the due date for filing GSTR-
3B for September 2023, which was 20th October
2023. The taxpayer eventually filed on 10th
November 2023. Calculate the late fee applicable,
if their ATO during previous year is `2 crores.
13 A registered taxpayer, ABC Ltd., failed to file its
GSTR-3B return for the month of June 2024 by
the due date. Discuss whether ABC Ltd. can still
furnish the details of its outward supplies in Form
GSTR-1/IFF for July 2024
14 XYZ Pvt Ltd. consistently reports discrepancies
between the ITC claimed in GSTR-3B and the
details furnished in GSTR-2A/2B. The tax
authorities have noticed significant mismatches.
Can XYZ Pvt Ltd. be debarred from filing GSTR-
1/IFF

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 CONCEPT GRILLS

CONCEPT GRILLS ON ACCOUNTS & E-WAY BILL:

Discuss whether E-Way bill is required based on the information given below:
S. No. Situation Applicability of E Way Bill
1 ABC Ltd. supplies goods worth ₹2,50,000
under a government contract to various
government departments within the same
state. The goods are delivered directly to
government offices.
2 DEF Ltd., a company with branches in
multiple locations, transfers goods worth
₹3,00,000 from its Branch – A in Delhi to
Branch-B in Delhi. The transfer is made
between branches of the same legal entity.
3 ABC Ltd., located in Maharashtra,
dispatches goods worth ₹50,000 (Incl.
GST) to XYZ Ltd. in Karnataka.
4 PQR Ltd. transfers goods worth ₹45,000
(Excl. GST @ 18%) from its warehouse in
Delhi to a branch office in Uttar Pradesh.
The transfer is between two branches of
the same company.
5 XYZ Ltd. T.N Sends goods on job work to
their job worker in M.P where the value of
goods is `50,000 (Incl. GST)

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 QUESTIONS BASED ON AMENDMENTS

QUESTIONS BASED ON AMENDMENTS FOR

MAY 25 EXAMS
Question No 1:
ABC Pvt. Ltd., an Indian entity, secured a loan of ₹1,00,00,000 from its overseas affiliate, XYZ
Inc., based in the United States. The loan was provided at an interest rate of 6% per annum for
a tenure of 3 years, with interest being the only consideration charged.
i Whether the interest on loan paid to XYZ Inc. is treated as supply and chargeable to GST?
ii What will be your answer, if in addition to the interest, XYZ Inc. also charged a processing fee
of ₹1,50,000 for facilitating the loan.
(i) Import of services by way of loans or advances against consideration in the form of interest or
discount is not treated as supply as per CBIC circular. Accordingly, ABC Pvt Ltd securing loan
from XYZ incorporation against interest of 6% p.a., is not a supply and consequently it is not
chargeable to GST.
(ii) However, if the Indian affiliate pays consideration other than interest or discount i.e., processing
fees or documentation charges then it will be supply under section 7(1)(b) chargeable to GST
Under RCM. In the Present case ABC Pvt Ltd shall pay GST on Rs. 1,50,000 paid to XYZ Inc. as
processing fee.
Question No 2:
Tata AIG has insured a motor vehicle owned by Mr. Tharun for a sum insured of ₹10,00,000.
The insurance policy includes a clause that allows Tata AIG to deduct the salvage value from
the final claim amount in the event of a total loss.
On 15th June 2024, Mr. Tharun's vehicle was involved in an accident and was declared a total
loss by Tata AIG. Insured value of the vehicle is `10,00,000, assessed value of the damage is
`9,00,000 and salvage value of the vehicle is `1,50,000. Tata AIG decides to deduct the salvage
value from the claim amount as per the terms of the insurance contract. Mr. Tharun retains
ownership of the salvage, and Tata AIG pays the balance claim amount to Mr. Tharun after
deducting the salvage value.
(i) Calculate the claim amount paid by Tata AIG to Mr. Tharun, after deducting the salvage
value.
(ii) Determine whether Tata AIG is liable to pay GST on the salvage value
(iii) What will be your answer if, Tata AIG decides to settle the full claim amount of ₹9,00,000
without deducting the salvage value. The salvage becomes the property of Tata AIG, which
later sells it to a salvage buyer Mr. Kumar for ₹1,50,000.
(i) Claim Amount = Assessed Value – Salvage Value
= `9,00,000 - `1,50,000
= `7,50,000.
(Not treated as supply in the hands of Mr. Tharun, as the same is not in the course of
furtherance of business)
(ii) TATA AIG is not required to pay GST on salvage value as salvage belongs to the insured and
accordingly, deduction is made from the claim amount.
(iii) Claim Amount = 9,00,000 (Not treated as supply in the hands of Mr. Tharun, as the same is not
in the course or furtherance of business). As salvage becomes property of TATA AIG sale of such
salvage to Mr. Kumar, constitute supply u/s 7(1)(a) in the hands of TATA AIG and they are liable
to pay GST on `1,50,000.

Question No 3:
Unilever PLC, a foreign holding company, offers an Employee Stock Option Plan (ESOP) to the
employees of its Indian subsidiary, Hindustan Unilever Limited (HUL), as part of their
compensation package. Under this plan, Unilever PLC issues 10,000 stock options to the employees
of HUL, allowing them to purchase shares at a predetermined price of ₹200 per option. At the
time of the grant, the market price per share is ₹300, and the options have a vesting period of 3
years. After the stock options vest and are exercised by the employees, Unilever PLC charges HUL

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 QUESTIONS BASED ON AMENDMENTS

₹20,00,000 as the cost of the shares issued, which HUL reimburses on a cost-to-cost basis.
Additionally, Unilever PLC charges HUL an administrative fee of ₹2,00,000 for managing the ESOP
on its behalf. Assume the applicable GST rate on services is 18%.
(i) determine whether the ₹20,00,000 reimbursed by HUL to Unilever PLC for the cost of the
shares is liable for GST?
(ii) Calculate the GST liability on the additional ₹2,00,000 charged by Unilever PLC as an
administrative fee, and determine who is liable to pay this GST?
(iii) compute the total amount HUL needs to pay to Unilever PLC?
(iv) Can the GST on additional `2,00,000 be availed as ITC?
(i) As per CBIC circular, if payment made by subsidiary company to holding company towards
Employee Stock Option Plan on cost-to-cost basis it is not a supply. Therefore `20,00,000 paid
by Hindustan Unilever Limited to Unilever PLC is not a supply.
(ii) Additional Charges payable towards ESOP, apart from its cost is treated as supply U/s 7(1)(b) and
`2,00,000 paid by Hindustan Unilever Limited to Unilever PLC towards administrative fee, is
chargeable to GST Under RCM.
(iii) Total amount payable = `20,00,000 + `2,00,000 = `22,00,000 to Unilever PLC and GST payable
to Government is `2,00,000*18% = `36,000.
(iv) GST Paid under RCM Can be availed as ITC, if conditions for availment of ITC is fulfilled.

Question No 4:
Mr. Rahul, an individual registered under GST, owns multiple residential and commercial properties
across different cities in India. In October 2024, he rents out the properties under different
situations to various individuals and entities. Compute the value of taxable supply in the hands of
Mr. Rahul based on the following details of the rentals for October 2024:
Amount per
Particulars
month (`)
Renting of luxury residential flat in Mumbai to Mr. Kapoor, a proprietor of a 40,000
proprietorship concern for personal use as his residence
Renting of student hostel in Pune to 20 students for a period of 6 months from 12,000 per
October 2024 student
Offers paying guest accommodation in Delhi for 10 working professionals for a 15,000 per
period of 4 months from October 2024 person
Renting of guest house accommodation in Bengaluru to a corporate company for 19,000
its employees and the accommodation is used for consecutive 90 days
Renting of hostel in Chennai for 40 students pursuing CA final for attending Exam 10,000 per
Oriented Batch on IDT of Mr. Tharun Raj for a consecutive period of 60 days student
Renting of commercial property in Bengaluru to XYZ Ltd., a registered company 1,50,000
for office space
Offers paying guest accommodation in Kochi for 10 students who pursue a short- 25,000 per
term skill course for a consecutive period of 90 days student
Particulars Taxable Value Reason Taxable Value
Renting of luxury residential flat Exempted Such renting is on his own -
in Mumbai to Mr. Kapoor, a account and not that of the
proprietor of a proprietorship proprietorship concern.
concern for personal use as his
residence
Renting of student hostel in Exempted Supply of accommodation -
Pune to 20 students for a services having value less
period of 6 months from than or equal `20,000 per
October 2024 person per month and
accommodation service is
supplied for a minimum
continuous period of ninety
days.
Offers paying guest Exempted Same as above -
accommodation in Delhi for 10

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 QUESTIONS BASED ON AMENDMENTS

working professionals for a (Exemption available for

period of 4 months from both students hostel or PG
October 2024 accommodation)
Renting of guest house Exempted Same as above -
accommodation in Bengaluru (Exemption available if
to a corporate company for its accommodation is provided
employees and the to any person)
accommodation is used for
consecutive 90 days
Renting of hostel in Chennai for Taxable In this case continuous `4,00,000
40 students pursuing CA final period of 90 days is not
for attending Exam Oriented fulfilled and consequently
Batch on IDT of Mr. Tharun Raj exemption not available.
for a consecutive period of 60 (40 students X `10,000 per
days student)
Renting of commercial property Taxable Renting of commercial `1,50,000
in Bengaluru to XYZ Ltd., a property not covered under
registered company for office exemptions
space
Offers paying guest Taxable Even though `2,50,000
accommodation in Kochi for 10 accommodation is for more
students who pursue a short- than 90 days but the
term skill course for a consideration charged
consecutive period of 90 days exceeds `20,000 and
consequently taxable
(10 students X `25,000 per
student)
Total `8,00,000

Question No 5:
ICICI Lombard General Insurance provides coverage for the Coconut Palm Insurance Scheme (a
government-sponsored scheme). This scheme is exempt from GST under Sl. Nos. 35 and 36 of
Notification No. 12/2017-CT(R), dated 28.06.2017.
In October 2024, to manage its risk, ICICI Lombard enters into the following reinsurance
arrangements:
Situation - 1:
ICICI Lombard cedes a portion of the risk associated with the Coconut Palm Insurance Scheme
to General Insurance Corporation of India (GIC Re), another Indian reinsurer. The reinsurance
premium for this transaction amounts to ₹4 crore.
Situation - 2:
GIC Re, in turn, cedes part of the reinsured risk to Munich Re, a Cross Border Re-insurer (CBR)
based in Germany. This transaction, classified as retrocession, involves a premium of ₹2 crore.
What is the taxability in the above situations?
Situation -1: Yes, it is exempted. If General Insurance service is exempted under Notification 12/2017,
also re-insurance for this general insurance is also exempted.

Situation – 2: Yes, it is exempted. The term re-insurance mentioned in the exemption notification,
includes retrocession services as per circular No.228/22/2024.

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 QUESTIONS BASED ON AMENDMENTS

Question No 6:
Air Europa Ltd. India, the Indian establishment of AirEuropa Ltd., a foreign airline company
incorporated in Spain, provides various services as part of its operations in India. The airline
company imports certain administrative and operational services from its head office in Madrid
(Spain) without any consideration. These services include IT support, financial management, legal
advisory services, and staff training. Compute the value of taxable supply on which Air Europa
Ltd. is liable to pay GST under FCM/RCM:
Passenger transport services 2,00,00,000
Cargo transport services 1,50,00,000
IT support services imported from Head office in Madrid without consideration N.A
(Open Market Value u/r 28 is `25,00,000)
Legal advisory services imported from Head office in Madrid for consideration 20,00,000
Marketing services imported from Google Inc. for consideration 15,00,000
Catering services received from a person in India 10,00,000
What will be your answer in the above case, If government of spain is not giving any exemptions
to india airline company operating in spain ?
Compute the value of taxable supply & GST payable if rate of GST is 18%.
Outwards Supplies:
If Govt of Spain Gives If Govt of Spain is not
Reciprocal exemptions giving reciprocal
Particulars to foreign establishment exemptions to foreign
of Indian airline establishment of Indian
company airline company.
I. Outwards Supplies
Passenger Transportation (2,00,00,000 X 18%) = (2,00,00,000 X 18%) =
36,00,000 36,00,000
Cargo Transportation (1,50,00,000 X 18%) = (1,50,00,000 X 18%) =
27,00,000 27,00,000
Gross GST Payable under FCM 63,00,000 63,00,000
II. Inwards supplies under RCM
IT Supports services from head office in Exempted, as the same (25,00,000 X 18%) =
Spain (Import of other than OIDAR by is imported from head 4,50,000
other than NTR) – Exempted only if Govt. office without
of Spain gives reciprocal exemption to consideration
foreign establishment of Indian airline
company.
Legal Advisory services from head office (20,00,000 X 18%) = (20,00,000 X 18%) =
in Spain (Import of other than OIDAR by 3,60,000 (Exemption 3,60,000
other than NTR) not available as the
same is import for
consideration)
Import of digital Marketing services 15,00,000 X 18% = 15,00,000 X 18% =
(OIDAR Services by other than NTOR) 2,70,000 2,70,000
GST Payable Under RCM 6,30,000 10,80,000
III. ITC Available
RCM GST Paid on Inward Supplies (II) 6,30,000 10,80,000
Catering Services-ITC Not available as the - -
same is blocked ITC U/s 17(5)
6,30,000 6,30,000
IV. Computation of Net GST Payable
Gross GST Payable Under FCM 63,00,000 63,00,000
-ITC Utilized (6,30,000) (10,80,000)
+RCM Liability 6,30,000 10,80,000
63,00,000 63,00,000

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 QUESTIONS BASED ON AMENDMENTS

Question No 7:
Larsen & Toubro (L&T) has entered into a Hybrid Annuity Model (HAM) contract with the
National Highways Authority of India (NHAI) for the construction, operation, and maintenance
of a highway. The contract specifies that L&T will receive payments in 20 equal instalments
over 10 years. Each instalment is ₹10,00,000, which includes ₹1,00,000 as an interest
component. The deemed date of completion of milestone event is on 30th June 2024. The due
date for the first instalment is 1st July 2024. However, L&T issued the invoice for the first
instalment on 5th July 2024, and the payment was received on 15th July 2024. The applicable
rate of GST for such contracts is 18%
(i) What is the due date of invoice as per Sec. 31(5)?
(ii) What is the time of supply as per Sec. 13(2) and what is the due date of payment of GST?
(iii) Calculate the GST liability for the first instalment?
(iv) What will be the time of supply, if the invoice is issued on 1st July 2024 and what is the
due date of payment of GST?
(i) As the service takes more than 3 months to complete and involves periodic payments
obligations its treated as continuous supply of service sec 31(5) of CGST Act.
As per section 31(5), if due date of instalment is ascertainable from contract, invoice shall be
issued on or before the due date of instalments.
In the present case due of invoice for first instalment is 1st July 2024.

(ii) Time of Supply for first instalment as per sec 13(2) of CGST Act, is Date of Completion or date
of payment which is earlier, as invoice not issued within due date:
(a) Date of Completion = Due date of Installment i.e., 1st July 2024
(b) Date of payment = 15th July 2024, whichever is earlier is 1st July 2024.
Due date of payment of GST for such instalment is 20th August 2024 i.e., due date of
GSTR-3B for July 2024.

(iii) Value of Supply As per sec 15(2)(d) of CGST Act, 2017 Interest or late fee or penalty for delay
in receipt of consideration is includible in value. Therefore, GST is payable on entire instalment
value of `10,00,000.
GST Liability =10,00,000 X 18% = `1,80,000.

(iv) Time of Supply for first instalment as per sec 13(2) of CGST Act, is Date of Invoice or date of
payment which is earlier, as invoice is issued within due date:
Date of Invoice = 1st July 2024 (or)
Date of payment = 15th July 2024, whichever is earlier is 1st July 2024.
Due date of payment of GST for such instalment is 20th August 2024 i.e., due date of
GSTR-3B for July 2024.

Question No 8:
Reliance Jio has successfully bid for the allocation of spectrum by the Department of
Telecommunications (DoT) under the Government of India's spectrum allocation model. The total
bid amount for the spectrum allocation is ₹1,000 crore. Reliance Jio is given two payment options:
Option 1: Make a full upfront payment of ₹1,000 crore on or before 30th June 2024.
Option 2: Pay in 10 equal annual installments. The first instalment is due on 1st July 2024, with
each instalment comprising both principal and interest. The instalment amounts, considering an
annual interest rate of 10%, are as follows:
• Installment 1 (due 1st July 2024): ₹160 crore
• Installment 2 (due 1st July 2025): ₹144 crore
• Installment 3 (due 1st July 2026): ₹128 crore
• Installment 4 (due 1st July 2027): ₹112 crore
• Installment 5 (due 1st July 2028): ₹96 crore
• Installment 6 (due 1st July 2029): ₹80 crore
• Installment 7 (due 1st July 2030): ₹64 crore
• Installment 8 (due 1st July 2031): ₹48 crore

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• Installment 9 (due 1st July 2032): ₹32 crore

• Installment 10 (due 1st July 2033): ₹16 crore
The Frequency Assignment Letter from DoT specifies these payment options and also states that
GST at the rate of 18% is applicable on the spectrum allocation. Assume that the invoice is issued
by DoT on 15th June 2024.
You are required to determine the following:
(i) Determine when the GST liability arises if Reliance Jio opts for the full upfront payment, and
calculate the GST amount payable. Assume that the payment is made on 28th June 2024.
(ii) What will be your answer in (i) above if the payment is made on 5th July 2024 and such delay
is condoned by DOT.
(iii) Determine the GST liability timing and amount if Reliance Jio chooses to pay in installments,
and specifically calculate the GST payable for the second installment if the payment is made
on 30th June 2025.
(iv) What will be your answer in (iii) above if the payment is made on 4th July 2025 and such delay
is condoned by DOT.
Time Of Supply in case of allocation of spectrum or by govt to business entity is determined as per
CBIC circular and provision of Sec 13(3) is not applicable.
(i) In case of full upfront amount option, TOS is date on which such amount is due to be paid
(30/6/24) or the date on which such amount is actual paid (28/06/2024) whichever is earlier
i.e., 28/06/2024.
(ii) If the amount is actual paid on 5th July under full upfront payment options (TOS) is (30/6/24)
or (5/7/2024) whichever is earlier i.e., 30/6/2024.
(iii) In case of instalment payment option, TOS shall be Date on which such instalment is due
(1/7/2025) or Date on which such installment is actual paid (30/6/2025) whichever is earlier
i.e., 30/6/2025.
GST Payable= `144 Crores X 18%= `25.92 Crores and due date of payment of GST 20th July
2025.
(iv) If payment is actual made 4th July 2025, TOS shall be Date on which such instalment is due
(1/7/2025) or Date on which such instalment is actual paid (04/07/2025) whichever is earlier
i.e., 1st July 2025 and due date of payment of GST is 20th Aug 2025.

Question No 9:
Reliance Digital Ltd., an e-commerce company registered in Mumbai, Maharashtra, sells electronic
goods across India through its online platform. On 10th October 2024, a customer, Mr. Ravi (an
unregistered individual), placed an order for a television priced at ₹1,20,000. Mr. Ravi's billing
address is in Pune, Maharashtra, but he requests delivery of the television to his vacation home
located in Goa.
Additional Information:
• The GST rate applicable on the television is 18%.
• Reliance Digital Ltd. has received several similar orders where the billing and delivery
addresses are different.
• For the order placed by Mr. Ravi, the company issued an invoice on 12 th October 2024, and
the television was dispatched on 13th October 2024.
You are required to:
1. Determine the place of supply for the television in this scenario based on the provisions of
clause (ca) of section 10(1) of the IGST Act, 2017.
2. Compute the GST payable on this transaction and specify whether CGST/SGST or IGST will
be applicable.
3. Explain the impact on the GST liability of Reliance Digital Ltd. if the billing address and
delivery address were the same (both in Maharashtra).
4. Calculate the total invoice value (including GST) that Mr. Ravi would need to pay if the place
of supply is determined to be in Goa.
(i) As per CBIC Circular Place of Supply is delivery address i.e., Goa as billing address and
delivery address does not match.
(ii) As Location of supplier is Maharashtra & Place of Supply is Goa, it is an interstate supply and
IGST Payable is ` 1,20,000 X 18% = 21,600.

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(iii) If Billing address & Delivery address match, Place of supply as per CBIC Circular is Pune,
Maharashtra and nature of supply is intra state and it is chargeable to CGST and SGST of
`10,800 each.
(iv) Invoice Value is Rs. 1,41,600 and Time of Supply is 12th Oct 2024 being actual date of invoice
as due date of invoice is 13th Oct 2024.

Question No 10:
PQR Ltd., a manufacturer, entered a contract with DEF Ltd., a distributor, on 1st April 2024. The
supply was made on 10th May 2024, with a value of ₹25,00,000, and the applicable GST rate was
12%. Payment terms required full payment within 30 days of the invoice date. A post-supply
discount of 7% was agreed upon, conditional on DEF Ltd. successfully selling 80% of the goods
within the quarter (April-June 2024).
By 30th June 2024, DEF Ltd. sold 85% of the goods, making it eligible for the 7% post-supply
discount. Consequently, on 15th July 2024, PQR Ltd. issued a credit note for such discount to DEF
Ltd. for the post-supply discount. DEF Ltd. had availed ITC on the full invoice value as they
complied with the conditions of availment of ITC. To comply with the provisions of Section 15(3)(b)
of the CGST Act, 2017, DEF Ltd. is required to reverse the ITC proportionate to the post-supply
discount.
(i) How much ITC needs to be reversed by DEF Ltd. based on the credit note issued by supplier?
(ii) What is the consequence to PQR Ltd. based on such credit note?
(iii) How PQR Ltd. can prove that recipient has reversed the ITC?
(iv) What will be your answer in (iii) above if the ITC to be reversed is `5,50,000?
(i) As Credit note is issued by PQR Ltd. to DEF Ltd. under section 34 of CGST Act, ITC to be Reversed
by DEF Ltd is `25,00,000 X 7% X 12% = `21,000.
(ii) GST Liability of PQR Ltd gets reduced to the extent of `21,000 as an when Credit note is issued
and reported in GSTR-1 of PQR Ltd.
(iii) As Per CBIC Circular, as ITC reversal in a financial year does not exceed `5,00,000 PQR Ltd
shall obtain a declaration from DEF Ltd that they have reversed the ITC along with supporting
documents i.e., GSTR-3B/DRC-03 of DEF Ltd.
(iv) As per CBIC Circular if ITC to be reversed by DEF Ltd exceeds `.5,00,000, DEF ltd shall obtain
Certificate from CA/CMA certifying ITC reversal along with UDIN and Supporting documents.
This Procedure shall also be applicable to past periods.

Question No 11:
HDFC Bank, an acquiring bank registered under GST, participates in the Incentive Scheme for
the Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions, a scheme run by the
Ministry of Electronics and Information Technology (MeitY). Under this scheme, HDFC Bank
receives an incentive of ₹10,00,000 for promoting RuPay Debit Card and low-value UPI
transactions.
As per NPCI guidelines, HDFC Bank is required to share a portion of this incentive with its
ecosystem partners involved in facilitating digital payments. HDFC Bank distributes the incentive
to stakeholders like Paytm Payments Bank and Pine Labs, which helped facilitate UPI
infrastructure and merchant onboarding, respectively.
In addition to the compliant sharing, HDFC Bank also shares ₹2,00,000 with XYZ Marketing Ltd.,
a marketing consultancy that is not part of the NPCI-specified ecosystem for the incentive scheme,
and this distribution is not in line with the NPCI guidelines.
Details of Sharing:
• HDFC Bank retains ₹4,00,000 from the incentive.
• HDFC Bank transfers ₹3,00,000 to Paytm Payments Bank for facilitating UPI infrastructure.
• HDFC Bank distributes ₹3,00,000 to Pine Labs for merchant onboarding services.
• HDFC Bank shares ₹2,00,000 with XYZ Marketing Ltd., which is not part of the NPCI
ecosystem.
Answer the following questions based on the facts given above
(i) Is the incentive of ₹10,00,000 received by HDFC Bank from MeitY subject to GST?
(ii) Is the sharing of the incentive by HDFC Bank with Paytm Payments Bank and Pine Labs
taxable under GST?

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(iii) Is the further sharing of ₹2,00,000 with XYZ Marketing Ltd., which is not compliant with NPCI
guidelines, taxable under GST?
(iv) What is the total taxable value and GST payable, if any, on the incentive-sharing transactions?
(i) Incentive of ` 10,00,000 received by HDFC bank from Meity is treated as subsidy and not
included in the value of supply as per sec 15(2)(e).
(ii) As Per CBIC Circular, further sharing of incentive by acquiring bank with paytm and pine labs
its also treated as subsidy, not charged to GST as they are notified by NPCI (National Payments
corporation of India) to receive incentive.
(iii) Incentive received by XYZ marketing Ltd is not part of NPCI Guidelines and therefore it is not
treated as subsidy and will be chargeable to GST.
(iv) XYZ Marketing Ltd Shall Pay GST on `2,00,000.

Question No 12:
Infosys Ltd., a registered company in India, is engaged in IT consulting and software services.
Infosys Consulting Inc., its related foreign entity based in the USA, provides software development
support and consulting services to Infosys Ltd. in India. Both entities are related persons under
the GST provisions.
In October 2024, Infosys Consulting Inc. provides software consulting services worth ₹20,00,000
to Infosys Ltd. Since this transaction is an import of services, Infosys Ltd. is required to pay GST
under the Reverse Charge Mechanism (RCM). Additionally, Infosys Ltd. is eligible for full Input
Tax Credit (ITC) on this transaction.
Moreover, Infosys Consulting Inc. also provides strategic advisory services to Infosys Ltd. without
issuing an invoice. The domestic entity (Infosys Ltd.) estimates the market value of these services
to be ₹5,00,000, but no official invoice is generated for these services.
Answer the following based on above mentioned facts
(i) Whether Infosys Ltd. is required to issue any invoice to Infosys consulting Inc.?
(ii) Who is required to pay GST in the present case and what is the value on which GST is
payable?
(iii) If Infosys Ltd. declares ₹20,00,000 as the value of the software consulting services from
Infosys Consulting Inc. in the self-invoice, compute the GST payable by Infosys Ltd. on both
the services.
(i) As per Sec 31(3)(f) of CGST Act 2017 Infosys Ltd Shall issue invoice to Infosys consulting
Inc. within 30 days from the date of receipt of services.
(ii) As Per Sec 9(3) Read with Notification No. 13/2017, GST Payable by Infosys Ltd Under
Reverse Charge Mechanism, as the same is import of services.
(iii) Applying above circular, value of supply shall be invoice value, as recipient is eligible for
full ITC. If Value declared in invoice is `20 Lakhs, then GST payable under RCM is
`20,00,000 X 18% = `3,60,000.

Question No 13:
TechPro Solutions Pvt. Ltd., a registered person under GST, had its registration cancelled by
the proper officer on June 1, 2024, under Section 29 of the CGST Act, due to non-compliance
with filing returns. The company had received input services for which it was eligible for ITC
during the financial year 2023-24, but the ITC had not been availed before the date of
cancellation. On August 25, 2024, TechPro Solutions applied for the revocation of the
cancellation of its registration under Section 30 of the CGST Act. The registration was revoked
by the proper officer on September 5, 2024, allowing TechPro to continue its business
operations. However, during the period of cancellation, TechPro Solutions received several
invoices and debit notes for supplies made between June 1, 2024 and August 25, 2024.
The company is now considering the possibility of claiming the ITC on:
1. Invoices pertaining to supplies made during the period June 1, 2024 to August 25, 2024
(the period of cancellation).

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2. Debit notes issued during the financial year 2023-24, but not availed before the date of
cancellation of the registration.
Analyse whether company can avail ITC and what is the time limit within which such ITC can
be availed
Time Limit for availment of ITC with respect to invoices for the period 1st June 2024 & 25th Aug
2024, i.e., Period of cancellation of registration.
Invoices pertains to FY:2024-2025
(a) 30/11/2025 or
(b) Date of Filling annual return, whichever is earlier i.e., 30/11/2025 (Assumed that it is filed
on 31/12/2025)
Time Limit for availment of ITC w.r.t debit note for FY:2023-24.
Regular Time Limit: (a) 30/11/2024 or (b) 31/12/2024 whichever is earlier i.e., 30/11/2024.
As the time limit for availing of ITC not expired as on the date of cancellation of registration
(1/06/2024) revised time limit in terms of sec 16(6) is
(a) Regular Time limit =30/11/24 (or)
(b) 30 days from revocation order = (5/9/24 + 30 days =5/10/24) Whichever is later i.e.,
(30/11/2024).
Note: If the revocation order is passed on 15/12/2024, then they time limit is
(a) 30/11/2024
(b) 14/01/2025, whichever is later i.e. 14/01/2025.

Question No 14:
ABC Motors, an authorized dealer for motor vehicles, purchases 5 demo vehicles from XYZ Auto
Ltd., a manufacturer, on October 1, 2024. These demo vehicles are used for test drives and to
showcase features to potential buyers. Each vehicle has a value of ₹10,00,000 (excluding taxes),
and ABC Motors receives a tax invoice for the purchase, which includes the following:
• IGST on demo vehicles (18%) = ₹1,80,000 per vehicle
• Total purchase cost per vehicle = ₹10,00,000 + ₹1,80,000 = ₹11,80,000 per vehicle.
ABC Motors plans to capitalize these vehicles in its books of accounts at `10,00,000 per vehicle
and intends to use them for test drives for a period of 2 years before selling them as used vehicles
at a written-down value.
After two years of usage, ABC Motors sells one of the demo vehicles for ₹5,00,000, and IGST on
the sale is applicable at 18%.
(i) Determine whether ABC Motors can claim input tax credit (ITC) on the purchase of these
demo vehicles. If Yes, compute the ITC availed.
(ii) What will be your answer, if the motor vehicles are capitalised in its books at `11,80,000 per
vehicle
(iii) calculate the GST payable at the time of sale of demo vehicles.
(i) As per CBIC Circular, a dealer of motor vehicle can avail ITC on demo vehicles purchased as
the same is used for further supply. Therefore, in the present case, ITC = `10,00,000 X 5 X 18%
= `9,00,000/-
(ii) As Per Sec 16(3) of CGST Act 2017, if motor vehicle is capitalized including the GST Component,
ITC not available. However, Depreciation can be claimed Under section 32 of Income Tax Act
1961.
(iii) GST Payable U/s 18(6) as follows:
a) ITC available – 5% of every quarter or part their off from the date of purchase or till the date
of disposal
= `1,80,000 - 5%*8 = `1,80,000 - `72,000 = `1,08,000. (Or)
b) GST On Sale Value = `5,00,000 X 18% = `90,000.
Whichever is higher i.e., `1,08,000. (Buyer of such demo car if eligible, can avail ITC).

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Question No 15:
Samsung Electronics sells a smartphone to a customer with a 1-year manufacturer's warranty.
During the warranty period, the customer experiences a defect and visits an authorized distributor,
who replaces the defective smartphone with a new one from their own stock. Samsung later
replenishes the distributor’s stock without charging any additional amount. Additionally, at the
time of purchase, the customer buys an extended 2-year warranty from a third-party service
provider, Warranty Plus, which begins after the manufacturer’s 1-year warranty expires.
You are required to:
(i) Determine the GST liability for Samsung on the replacement of the defective smartphone
under the manufacturer’s warranty.
(ii) Explain the GST implications for Samsung when it replenishes the distributor's stock with a
new smartphone.
(iii) Discuss the GST treatment for the extended warranty provided by Warranty Plus, considering
it was purchased at the time of the original sale but from a different supplier.
(iv) Analyze how the GST liability would change if the extended warranty was purchased from
Samsung directly, at the time of the original purchase.
(i) As per CBIC Circular, when a dealer replaces a part or whole goods, GST not payable even though
it is without consideration as GST is already paid for defective parts or goods. Also, dealer not
required to reverse any ITC.
(ii) As Per CBIC Circular, when Manufacturer replenishes defective goods i.e., smartphone to the
dealer, GST not payable by manufacturer also such manufacture not required to reverse any ITC.
(iii) If extended warranty charges is paid to different supplier at the time of purchase of product or
a later time, it is treated a separate supply and chargeable to GST at applicable to extended
warranty services.
(iv) If extended warranty is purchased from the same supplier at the same time of purchase of goods
it is a part of composite supply & GST payable at the rate applicable to such goods being principal
supply.

Question No 16:
ABC Insurance Ltd. provides general insurance services for motor vehicles. A customer, Mr.
Sharma, has a policy with ABC Insurance. His car was damaged, and he chose a non-network
garage for repairs, incurring a total repair cost of ₹1,00,000. The insurance policy approved a
claim of ₹80,000, which ABC Insurance later reimbursed to Mr. Sharma.
Scenario 1: The garage issued two separate invoices—one for ₹80,000 to ABC Insurance and
another for ₹20,000 to Mr. Sharma.
Scenario 2: The garage issued a single invoice for ₹1,00,000 to ABC Insurance, but ABC Insurance
only reimbursed ₹80,000 to Mr. Sharma.
Scenario 3: The garage issued an invoice for ₹1,00,000 directly to Mr. Sharma, who later got
reimbursed ₹80,000 from ABC Insurance.
You are required to:
1. Determine the extent of ITC available to ABC Insurance Ltd. in Scenario 1, and explain the
conditions under which ITC can be claimed.
2. Determine the extent of ITC available to ABC Insurance Ltd. in Scenario 2, considering the
single invoice issued by the garage.
3. Discuss whether ITC is available to ABC Insurance Ltd. in Scenario 3, where the invoice is in
the name of Mr. Sharma.
4. Explain how the provisions of Section 16(2) of the CGST Act apply to these scenarios and the
implications for claiming ITC.
(i) ABC insurance Ltd received an invoice for ` 80,000/- towards the claim amount and `20,000
paid by Mr. Sharma. ITC available to ABC Insurance Ltd on `80,000/-.
(ii) As Per CBIC circular, ABC insurance Ltd can avail ITC on ` 80,000/- i.e., to the extent of re-
imbursement, even though invoice is for ` 1,00,000/-
(iii) As Per Sec 17(5), repairs & maintenance in relation to motor vehicle is not eligible for ITC, if
motor vehicle purchase is not eligible for ITC.
As car purchased by Mr. Sharma is blocked ITC and not covered under exceptions, they cannot
avail ITC with respect to invoice issued by garage.

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(iv) Even if payment is not made by ABC insurance Ltd to garage, they can avail ITC and the
proviso to Section 16(2) i.e., payment to supplier within 180 days condition is not applicable in
this case.

Question No 17:
XYZ Telecom Ltd. is engaged in providing telecommunication services and is expanding its
network by laying new Optical Fiber Cables (OFCs) across various regions. The OFCs are housed
within PVC ducts, and service/connectivity manholes are installed as nodes in the network to
facilitate maintenance and connectivity. The company has incurred significant expenses on
purchasing these ducts and manholes.
You are required to:
1. Determine whether XYZ Telecom Ltd. can claim Input Tax Credit (ITC) on the purchase of
ducts and manholes used in its OFC network, according to the provisions of the CGST Act.
2. Explain the rationale behind the eligibility of ITC on these items, referring to the relevant
sections of the CGST Act and the clarification provided in the circular.
3. Discuss whether there are any specific restrictions under Section 17(5) of the CGST Act that
would prevent XYZ Telecom Ltd. from claiming ITC on these purchases.
4. Analyze the impact on XYZ Telecom Ltd.'s GST liability if these components were instead
classified as excluded items under the definition of "plant and machinery."
(i) As Ducts and manholes involves huge cost these are capitalized in the books of XYZ Telecom
Ltd. and falls under capital goods. Also the same falls under plant & machinery other than
Telecommunication tower, Pipelines laid outside factory, it is not covered under sec 17(5) and
eligible for ITC.
(ii) As the same is not covered under blocked ITC, due to exceptions and it is used in the course of
furtherance of business of telecom, they can avail ITC.
(iii) No restrictions Under Sections 17(5). However, if such parts are used for telecommunications
towers, ITC not available.
(iv) If the same is not covered under the definition of plant and machinery, ITC not available.

Question No 18:
Tata Steel Ltd., a registered supplier in Jharkhand, sells metal scrap (falling under Chapter 72 of
the Customs Tariff Act) worth ₹25,00,000 to Mahindra & Mahindra Ltd., another registered person
in Maharashtra, on June 15, 2024. The transaction involves scrap of iron and steel.
Additionally, Bharat Heavy Electricals Limited (BHEL), a Public Sector Undertaking (PSU),
purchases ₹15,00,000 worth of metal scrap from Tata Steel Ltd. on June 20, 2024. BHEL is also
a registered person under GST.
For both transactions, the applicable GST rate is 18%.
(i) Determine the TDS liability for Mahindra & Mahindra Ltd. and BHEL on their respective
purchases from Tata Steel Ltd.
(ii) Calculate the total amount payable by both Mahindra & Mahindra Ltd. and BHEL to Tata Steel
Ltd., including GST and after TDS deduction.
(iii) If Mahindra & Mahindra Ltd. fails to deduct TDS on its purchase, what will be the implications
under the CGST Act?

(i) As Per Sec 51, of CGST Act 2017, Supply of Metal scrap by a registered person to another
registered person is notified for TDS deduction. Accordingly, in the present case Mahindra &
Mahindra Ltd is required to deduct TDS with respect to payment made to tata steel ltd i.e., (`25
Lakhs X 2% = `50,000) towards IGST as location of supplier is Jharkhand and place of Supply
Under section 10(1)(a) is Maharashtra. Also, as per Sec 51, supply of metal scrap by a registered
person to PSU’s is also notified U/s 51. However, the relaxation w.r.to Non-applicability of TDS
for supply between notified recipients is not applicable in case of sale of metal scrap by a
registered person to another registered person. Therefore, TDS to be deducted by BHEL is
(`15,00,000 X 2% = `30,000) towards IGST assuming it is an interstate transaction.
(ii)
Payment By Mahindra & Mahindra Ltd BHEL
Value of Supply 25,00,000 15,00,000
IGST@ 18% 4,50,000 2,70,000

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 QUESTIONS BASED ON AMENDMENTS

TDS@2% (50,000) (30,000)

Amount Payable towards Tata 29,00,000 17,40,000
Steel Ltd
(iii) Failure to Deduct TDS attracts interest @18% under section 50, from the due date till the actual
date of payment. Also, penalty payable u/s 122(1) which is 100% of TDS not Paid. For delay in
filing TDS return, late fee payable @ ` 25/day subject to maximum ` 1,000 (each Act of CGST &
SGST)

Question No 19:
Due Date of filling GSTR-3B is 20th of Next Month.
Month GROSS LIABILITY ITC AVAILED BAL. IN ECL AS ON 20TH OF NEXT
MONTH
July 24 ` 8,00,000 ` 3,00,000 ` 5,00,000 (on 20/8/24)
Aug 24 ` 4,00,000 ` 1,00,000 ` 7,00,000 (on 20/9/24)
`8,00,000 (on 30/9/24)
Sep 24 ` 6,00,000 ` 4,00,000 ` 10,00,000 (on 20/10/24)
GSTR 3B for all above months is filed on 28/12/24. Compute applicable interest payable.
As Per Section 50 Read with proviso (2) Rule 88B, if a person has deposited GST due on or before
the due date of filling return in Electronic Cash Ledger (ECL), then interest is not applicable on such
amount deposited.

July 24: Interest not applicable in terms of Proviso (2) Rule 88B as `5,00,000 is deposited by
20/08/2024.

August 24: Interest not applicable on `.2,00,000 deposited by 20/9/2024. However, interest is
applicable on `1,00,000 deposited after the due date. Interest computed from the due date till the
date of Payments that is date of filling GSTR-3B.
Interest Payable = `1,00,000 X 18% X 99/365 = `4882.

September 2024: Interest not applicable as `2,00,000 is deposited by 20/10/2024.

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