SUPPORT & LOVE. CA SURAJ AGRAWAL...PROFILE – CA SURAJ AGRAWAL CA Suraj Agrawal is a Commerce Graduate [B.Com (H)] from Kolkata University and has qualified CA in November 2005 in

Updated on – 20.04.2019 (3rd

Edition)

THANKS TO MY FAMILY &

STUDENTS FOR CONTINUOUS

SUPPORT & LOVE.

CA SURAJ AGRAWAL

PROFILE – CA SURAJ AGRAWAL

CA Suraj Agrawal is a Commerce Graduate [B.Com (H)] from Kolkata University and has

qualified CA in November 2005 in First Attempt from Kolkata. He has also secured All India 27th

Rank in CA-Foundation – 1st level (First Attempt – 70% marks).

Besides CA, he has completed Certification Course of International Taxation of the ICAI in

2009. He has also qualified CPA (Certified Public Accountant) examination from AICPA

(USA) in 2009 with more than 90 Marks in each of four papers in First Attempt [Presently, he is

inspired to complete CIMA, London as well as LLM in International Taxation (UK) by Year

2024]

He started his career by joining Direct Tax Department of Reliance Industries Limited,

Mumbai and worked for near 2 years in core tax team. He has also worked in Taxation Division

of Chaturvedi & Shah (Chartered Accountants), Delhi followed by Tax Division of Ernst &

Young, Gurgaon, India (A Leading Big 4 Firm having International Presence). During the

working tenure of more than 4 years, he is exposed to in-depth theoretical and practical

knowledge of Direct Taxation & has a consultancy exposure in various industries including

Energy - Oil & Gas, Airlines, Retail, Infrastructure and Shipping Industries.

With the above academic and practical knowledge, he is in teaching profession from more than

10 years to serve professional students (taught 14,000 CA/CMAs Students till date). His in-

depth coverage of legal provisions in Tax with practical approach is very well recognized

among the students. He is also an associate member of ICAI and is also providing services as

Tax Consultant to various organisations.

He was also a member in WTO, FEMA & International Tax Study Group of the NIRC of the

ICAI for the year 2011-12 and was member of International Taxation & FEMA Research

Study Group of NIRC of the ICAI for the year 2010-11. He is regularly contributing tax articles

and various opinions on subjects of Direct Taxation including International Taxation in various

leading magazines [Taxmann] and professional forums.

CA Suraj Agrawal “CA Rank Holder, Qualified CPA (USA), B.Com(H)”

Email: [email protected] Contact: +91 99530 06445 / 011 4754 2530 Subjects: CA Inter / CMA Inter / CMA Final - DT & IDT FB: http://www.facebook.com/suraj.agrawal.564

https://www.youtube.com/channel/UCv-ybxFp_X9EWiei7YhZQmw

https://www.facebook.com/Surajagrawaltaxationclasses.satc

1 DEEPANJALI `04181035932 NOW IN CMA FINAL

2 ABHISHEK PANDEY `04162003486 NOW IN CMA FINAL

3 AMRITA VIDWAN `04161001976 NOW IN CMA FINAL

4 ISHIKA KHANDELWAL `04181033400 NOW IN CMA FINAL

5 JAYED SAIFI `04171011777 NOW IN CMA FINAL

6 KAJAL NEGI `04161002549 NOW IN CMA FINAL

7 KAVITA RAWAT `04171006492 NOW IN CMA FINAL

8 MIHIR KUMAR `04172020200 NOW IN CMA FINAL

9 MOHIT ARYA `04172018239 NOW IN CMA FINAL

10 NEHA RANA `04181031694 NOW IN CMA FINAL

11 NEHA SHARMA `04162003239 NOW IN CMA FINAL

CONGRATULATIONSCMA INTER RESULT AT SATC IN DEC 2018 EXAM ALONE

List A : Students cleared Both Group of CMA Inter & Now in CMA FINAL

SURAJ AGRAWAL TAX CLASSLAXMINAGAR / 01147542530 / 9953006445

12 OMPRAKASH KUMAR `04151004795 NOW IN CMA FINAL

13 PRIYA RAHI `04162003080 NOW IN CMA FINAL

14 PUNEET TIWARI `04162005106 NOW IN CMA FINAL

15 RAHUL `04151000891 NOW IN CMA FINAL

16 SAMARJEET SINGH `04181027869 NOW IN CMA FINAL

17 VIVEK PRASAD `04171009533 NOW IN CMA FINAL

18 ANAND VALLABH OLI `04161004350 NOW IN CMA FINAL

19 ANKIT SINGH `04131000362 NOW IN CMA FINAL

20 ANURADHA MISHRA `03162004159 NOW IN CMA FINAL

21 RAHUL NEGI `04142001226 NOW IN CMA FINAL

22 AYUSH DHONDIYAL `04172018516 NOW IN CMA FINAL

23 BHARTI `04171014248 NOW IN CMA FINAL

24 BUNTI/VINAY `04171007024 NOW IN CMA FINAL

25 DEEPAK KR KAMAT `04142006457 NOW IN CMA FINAL

26 FAHREEN NAAZ `04171015009 NOW IN CMA FINAL

27 GUNDEEP SINGH GILL `04161006711 NOW IN CMA FINAL

28 KAMINI `04161000149 NOW IN CMA FINAL

29 KARAN PANESHAR `04171013462 NOW IN CMA FINAL

30 KAVITA `04151000769 NOW IN CMA FINAL

31 KIRAN `04152006169 NOW IN CMA FINAL

List B : Students cleared 1st or 2nd Group & Now in CMA FINAL

31 KIRAN `04152006169 NOW IN CMA FINAL

32 KULDEEP RAWAT `04152004253 NOW IN CMA FINAL

33 MADHURI KUMARI `04171014151 NOW IN CMA FINAL

34 MAYANK BATRA `04171010401 NOW IN CMA FINAL

35 MOHD. SHAHBAZ `04161000406 NOW IN CMA FINAL

36 MOHINI AGRAWAL `04152005687 NOW IN CMA FINAL

37 MOHIT UPADHYAY `04171011775 NOW IN CMA FINAL

38 NEELABH SRIVASTAVA `04151002871 NOW IN CMA FINAL

39 NEHA KASHYAP `04161002757 NOW IN CMA FINAL

40 NEHA SURATIYA `04142001231 NOW IN CMA FINAL

41 NIKHIL KUMAR `04142001898 NOW IN CMA FINAL

42 OMKAR SINGH `04151007144 NOW IN CMA FINAL

43 OMKAR SINGH `04112018993 NOW IN CMA FINAL

44 OWAIS `04142011578 NOW IN CMA FINAL

45 PANKAJ `04162002704 NOW IN CMA FINAL

46 PANKAJ RAWAT `04162002704 NOW IN CMA FINAL



List B : Students cleared 1st or 2nd Group & Now in CMA FINAL

46 PANKAJ RAWAT `04162002704 NOW IN CMA FINAL

47 PRINCE GOYAL `04152006085 NOW IN CMA FINAL

48 PRIYA AGRAWAL `04152002867 NOW IN CMA FINAL

49 PUNIT KUMAR `14092007508 NOW IN CMA FINAL

50 PURUSHOTAM KUMAR `03152004176 NOW IN CMA FINAL

51 RAHUL NEGI `04142001226 NOW IN CMA FINAL

52 SAURABH JAIN `04151006110 NOW IN CMA FINAL

53 SAURAV KUMAR `04161001645 NOW IN CMA FINAL

54 SHALENDER SEMWAL `04142005213 NOW IN CMA FINAL

55 SHIVAM GUPTA `01142006142 NOW IN CMA FINAL

56 SHIVAM SINGH `04171006774 NOW IN CMA FINAL

57 SHIVANGI BISHT `04171008407 NOW IN CMA FINAL

58 SIMRAN SINHA `04171006940 NOW IN CMA FINAL

59 SONALI `04151008330 NOW IN CMA FINAL

60 SWADHA CHITRANSH `04162000395 NOW IN CMA FINAL

61 UMESH `04161001647 NOW IN CMA FINAL

62 VARUN MOR `01172016485 NOW IN CMA FINAL

63 VIDYA P - NOW IN CMA FINAL

64 VIKALP KUMAR `04161000373 NOW IN CMA FINAL

65 VIPIN `04151006112 NOW IN CMA FINAL

66 VISHAL CHAUHAN `04172021373 NOW IN CMA FINAL66 VISHAL CHAUHAN `04172021373 NOW IN CMA FINAL

67 VISHAL KESARWANI `04171014398 NOW IN CMA FINAL

68 YOGESH `04172018166 NOW IN CMA FINAL

69 ABHISHEK PARASHAR `04171008310 NOW IN GROUP - 1

70 AMAN GUPTA `04171011461 NOW IN GROUP - 1

71 AVINASH KUMAR `04132003466 NOW IN GROUP - 1

72 NANCY JAIN `04171012943 NOW IN GROUP - 1

73 NISHTHA JAIN `04181030186 NOW IN GROUP - 1

74 RAM SHARMA `04151007483 NOW IN GROUP - 1

75 ANKIT SHARMA `04152003376 NOW IN GROUP - 2

76 DHARMESH SHARMA `04152004215 NOW IN GROUP - 2

77 GAGAN CHAUHAN `04112021154 NOW IN GROUP - 2

List C : Students cleared First OR Second Group of CMA Inter



77 GAGAN CHAUHAN `04112021154 NOW IN GROUP - 2

78 HIMANSHU SINGH BASNAL `04181023904 NOW IN GROUP - 2

79 MD. ZAYAUL HAQUE `03151008179 NOW IN GROUP - 2

80 MOHAMMAD ZOHAIB `04181033459 NOW IN GROUP - 2

81 RAHUL MAITHANI `04151000047 NOW IN GROUP - 2

82 RIDHI SINGH `01452001869 NOW IN GROUP - 2

83 SHIVAM CHAUHAN `04181033342 NOW IN GROUP - 2

84 SURAJ BISHT `04181025181 NOW IN GROUP - 2

85 VAISHALI CHAUHAN `04171009980 NOW IN GROUP - 2

86 VARSHA `04141006563 NOW IN GROUP - 2

THANK YOU TO ALL OF YOU

SURAJ AGRAWAL TAX CLASSSURAJ AGRAWAL TAX CLASS

CONGRATULATIONSCONGRATULATIONSCONGRATULATIONSCONGRATULATIONS

CMA FINAL DT & IDT RESULT FROM SATC

1. CMA DIVYA KHANDELWAL 74 Marks in Tax June 2017

2. RUCHI GOEL 72 Marks in DT June 2018

3. CMA PARVEEN DUTT SHARMA AIR-3 (67 Marks in Tax) Dec 2017

4. CMA MOHIT GARG AIR-7 June 2017

5. CMA ARUN SHEKHAR AIR-22 Dec 2017

6. CMA SACHIN ARORA AIR-22 June 2017

7. CMA ANURAG PANT AIR-25 (61 Marks in DT) Dec 2017

8. CMA SONU KUMAR AIR-38 Dec 2017

9. CMA BHARAT BHUSAN AIR-45 June 2015

10. SANJAY 66 Marks in DT June 2018

11. CMA Avish Bajaj 65 Marks in Tax June 2016

12. CMA Sandeep Kumar 65 Marks in Tax Dec 2015

13. JAVED AKHTAR 65 Marks in Tax & 58 Marks in IDT Dec 2017/June 2018

14. CMA Bharati Bhatia 65 Marks in Tax Dec 2015

15. SIMRAN SARKAR 65 Marks in Tax Dec 2015

16. CMA Lavi KAMBOJ 65 Marks in Tax Dec 2015

17. CMA HIMANSHU JAIN 65 Marks in DT & 54 in IDT June 2018

18. CMA MD. ADIL 65 Marks in DT & 61 in IDT June 2018

19. CMA NITU 64 Marks in DT Dec 2017

20. CMA AQIB NAZAR 63 Marks in DT June 2017

21. CMA LALIT JEENA 62 Marks in DT Dec 2017

22. HIMANSHU SHARMA 60 Marks in DT June 2017

23. CMA RICHA AGARAWAL 60 Marks in Tax Dec 2017

24. CMA ANIL SHARMA 60 Marks in Tax Dec 2017

25. CMA RITU BHATT 60 Marks in DT June 2018

26. CMA ANITA SHARMA 59 Marks in DT Dec 2017

27. CMA SANKET GUPTA 59 Marks in DT Dec 2017

28. AMARDEEP 57 Marks in DT June 2018

29. CMA ANKITA NAGPUR 56 Marks in DT Dec 2017

30. SUMEET KUMAR 56 Marks in Tax June 2016

31. TARIQUE ARSHAD 56 Marks in DT June 2018

32. CMA KAPIL DHINGRA 55 Marks in DT Dec 2017

33. CMA KETAN JAIN 55 Marks in DT & 64 Marks in IDT June 2017/Dec 2017

34. CMA KAPIL DHINGRA 55 Marks in DT Dec 2017

35. CMA SHALINI KAMBOJ 55 Marks in Tax Dec 2015

36. CMA NISHTHA AGARWAL 48 Marks in DT & 55 Marks in IDT June 2018

37. CMA MD. SAIF 46 Marks in DT & 63 Marks in IDT June 2017/Dec 2017

38. MEHAK MALHOTRA 61 Marks in IDT June 2018

…….& Many More


CMA INTER IDT/GST RESULT FROM SATC

June 2018 EXAM - 1st

GST BATCH

1. PREETI RAWAT (VIDEO) 79 Marks in IDT/GST June 2018

2. ASHISH SHIYANI (F2F) 76 Marks in IDT/GST June 2018

3. CHANDA (F2F) 75 Marks in IDT/GST June 2018

4. RAJNESH GUPTA (Video) 74 Marks in IDT/GST June 2018

5. GAURANG RAJPAL (F2F) 73 Marks in IDT/GST June 2018

6. ATUL JAYANT (Video) 71 Marks in IDT/GST June 2018

7. AMIT SHARMA (F2F) 70 Marks in IDT/GST June 2018

8. ROHAN HEERA (Video) 70 Marks in IDT/GST June 2018

9. ABHINAV PANNU (Video) 69 Marks in IDT/GST June 2018

10. SOUVAGYA GERU (Video) 69 Marks in IDT/GST June 2018

11. PRADEEP SINGH KANDARI (Video) 69 Marks in IDT/GST June 2018

12. MAHIMA THREJA (Video) 68 Marks in IDT/GST June 2018

13. VAIBHAV SRIVASTAVA (Books) 68 Marks in IDT/GST June 2018

14. HITESHEE SHARMA (Video) 68 Marks in IDT/GST June 2018

15. ANKUSH GUPTA (F2F) 67 Marks in IDT/GST June 2018

16. SNEHA (Video) 66 Marks in IDT/GST June 2018

17. MOHIT UPADHYAY 65 Marks in IDT/GST June 2018

18. SANJOLI JAIN (F2F) 65 Marks in IDT/GST June 2018

19. SHIVAM SINGH (F2F) 64 Marks in IDT/GST June 2018

20. KARTIK BHATT (Video) 64 Marks in IDT/GST June 2018

21. HIMANI AGGARWAL (F2F) 64 Marks in IDT/GST June 2018

22. ANURAG 63 Marks in IDT/GST June 2018

23. ANKIT SINGH 63 Marks in IDT/GST June 2018

24. SALONI MITTAL (F2F) 63 Marks in IDT/GST June 2018

25. SHOBHIT KUMAR YADAV (Video) 62 Marks in IDT/GST June 2018

26. DINESH SINGH 62 Marks in IDT/GST June 2018

27. ROHIT SATI (Video) 62 Marks in IDT/GST June 2018

28. KRATIKA KIRAR (F2F) 61 Marks in IDT/GST June 2018

29. NANDINI ANAND (Video) 61 Marks in IDT/GST June 2018

30. MAYANK GARG (F2F) 61 Marks in IDT/GST June 2018

31. FARHEEN NAAZ (Video) 61 Marks in IDT/GST June 2018

32. VINAY SHARMA 60 Marks in IDT/GST June 2018

33. PARVEJ ALAM 60 Marks in IDT/GST June 2018

…….& Many More

SURAJ AGRAWAL TAX CLASSES


CMA INTER IDT/GST RESULT FROM SATC

DEC 2017 EXAM RESULT

1. ARUN KUMAR 76 Marks in IDT DEC 2017

2. HEENA KAPOOR 73 Marks in IDT DEC 2017

3. VISHAL SINGH 73 Marks in IDT DEC 2017

4. RINKU 72 Marks in IDT DEC 2017

5. PARDEEP KUMAR 70 Marks in IDT DEC 2017

6. VAISHALI CHAUHAN 70 Marks in IDT DEC 2017

7. POONAM KHEKMA 68 Marks in IDT DEC 2017

8. OM PRAKASH 67 Marks in IDT DEC 2017

9. GANU RAJ DHODY 66 Marks in IDT DEC 2017

10. KANCHAN 66 Marks in IDT DEC 2017

11. GURPREET 65 Marks in IDT DEC 2017

12. HIMANSHU SAJWAN 63 Marks in IDT DEC 2017

13. OM PRAKASH JHA (AIR 17) 62 Marks in IDT DEC 2017

14. SUMIT SAINI (AIR 35) 60 Marks in IDT DEC 2017

15. PRAPTI BANSAL 59 Marks in IDT DEC 2017

16. MD. SHADAB ARYUM 56 Marks in IDT DEC 2017

17. JYOTI ADHIKARI 56 Marks in IDT DEC 2017

18. DURGA PRASAD 55 Marks in IDT DEC 2017

19. ANURAG CHAUDHARY 55 Marks in IDT DEC 2017

20. SIMRAN KAUR 53 Marks in IDT DEC 2017

21. PARVESH KUMAR 52 Marks in IDT DEC 2017

22. ASHIT SINGH NEGI 52 Marks in IDT DEC 2017

23. MANOJ KUMAR 51 Marks in IDT DEC 2017

…….& Many More



CMA INTER DIRECT TAX RESULT - SATC

1. FIROZ KHAN (69 Marks in DT) A.I.R. - 11 DEC 2013

2. OM PRAKASH JHA (63 Marks in DT/62 in IDT) A.I.R. - 17 DEC 2017

3. NEERAJ (53 Marks in DT) A.I.R. - 23 JUN 2014

4. PRADEEP Kr. PANDIT (55 Marks in DT) A.I.R. - 24 JUN 2014

5. MOHIT GARG (63 Marks in DT) A.I.R. - 26 JUN 2015

6. VIVEK SHARMA A.I.R. - 27 DEC 2015

7. SONU SINGH (63 Marks in DT) A.I.R. - 31 JUN 2015

8. SUMIT SAINI (62 Marks in DT/60 marks in IDT)A.I.R. - 35 DEC 2017

9. CHETAN AGGARWAL A.I.R. – 35 DEC 2015

10. ANEE KUMAR DUIVEDI A.I.R. - 42 DEC 2017

11. ARUN SHEKHER (65 Marks in DT) A.I.R. - 47 DEC 2015

12. TUSHAR SETHI (58 Marks in DT) A.I.R. - 48 DEC 2017

13. ARUN VISHWAKARMA 76 Marks in DT DEC 2012

14. GAURANG RAJPAL (73 marks in IDT) 74 Marks in DT JUN 2017

15. ROHAN KUMAR VAISHY 73 Marks in DT JUN 2015

16. ANKIT KUMAR 72 Marks in DT DEC 2013

17. DEVANGANA 70 Marks in DT DEC 2013

18. RAHUL NEGI 67 Marks in DT DEC 2017

19. HIMANSHU MEHTA 66 Marks in DT DEC 2012

20. MD. SAIF 65 Marks in DT DEC 2015

21. RICHA AGARWAL 65 Marks in DT DEC 2014

22. NIKHIL GOYAL 65 Marks in DT JUNE 2013

23. NITESH SAINI 65 Marks in DT DEC 2013

24. GAURAV 65 Marks in DT DEC 2012

25. HOTI LAL 65 Marks in DT DEC 2013

26. LALIT KUMAR 65 Marks in DT JUNE 2016

27. ANAMIKA SINGH 65 Marks in DT JUNE 2016

28. VIKASH KR. JHA 65 Marks in DT JUNE 2016

29. MAYANK GARG (61 marks in IDT) 65 Marks in DT DEC 2017

30. SHEKHAR KUMAR 65 Marks in DT JUNE 2016

31. ANKIT PATWAL 65 Marks in DT JUNE 2016

32. GURPREET SINGH (65 marks in IDT) 65 Marks in DT JUNE 2018

33. AYUSH DHOUNDIYAL 65 Marks in DT JUNE 2018

34. SHIVAM 65 Marks in DT JUNE 2017

35. SIMPI GARG 64 Marks in DT JUNE 2018

36. KULDEEP SINGH RAWAT 64 Marks in DT DEC 2017

37. SAUGAT (58 marks in IDT) 64 Marks in DT JUNE 2014

38. JAVED (59 marks in IDT) 64 Marks in DT DEC 2013

39. AMAN SINGH 64 Marks in DT JUNE 2014

40. SANYA 64 Marks in DT JUNE 2014

41. UMA SHANKER 64 Marks in DT JUNE 2013

42. RAJNEESH KUMAR 64 Marks in DT DEC 2017

43. DEEPAK KUMAR MANDAL 64 Marks in DT DEC 2015

44. MOHD THABRIS 63 Marks in DT JUNE 2016

45. SHARANDEEP KAUR 63 Marks in DT DEC 2017

46. SUSHMA (43 marks in IDT) 63 Marks in DT DEC 2017

47. SANDEEP JAISWAL 62 Marks in DT JUNE 2016

48. SANJOLI JAIN (65 marks in IDT) 62 Marks in DT DEC 2017

49. NASEEM (70 marks in IDT) 62 Marks in DT DEC 2012

50. DEVESH RAJPAL 62 Marks in DT JUNE 2016

51. PRADEEP SINGH KANDARI 62 Marks in DT DEC 2017

52. HIMANSHU JOSHI 62 Marks in DT JUNE 2012

53. VASHU DEVAN 62 Marks in DT JUNE 2017

54. POONAM KHEMKA (68 marks in IDT) 62 Marks in DT DEC 2017

55. VIVEK KUMAR KARN 62 Marks in DT JUNE 2015

56. JOGINDER SINGH 62 Marks in DT DEC 2015

57. SHUBHAM GUPTA 62 Marks in DT DEC 2015

58. PRAPTI BANSAL (59 marks in IDT) 61 Marks in DT JUNE 2018

59. SHEENA 61 Marks in DT JUNE 2018

60. MANU KUMAR 61 Marks in DT DEC 2012

61. MAHIMA THERAJA (68 marks in IDT) 61 Marks in DT DEC 2017

62. SURAJ NAITHANI (Now CMA) 61 Marks in DT DEC 2015

63. DEEPAK THAKUR 61 Marks in DT

64. LALIT 61 Marks in DT JUNE 2014

65. SACHIN GUPTA 61 Marks in DT DEC 2013

66. RAHUL YADAV 61 Marks in DT DEC 2017

67. VAIBHAV SRIVASTAVA 61 Marks in DT JUNE 2017

68. SHUBHAM RAI 60 Marks in DT DEC 2017

69. SARU 60 Marks in DT DEC 2015

70. SONU 60 Marks in DT DEC 2015

71. SANJAY 60 Marks in DT DEC 2015

72. VIVEK SHARMA 60 Marks in DT DEC 2015

73. ASHISH KANDPAL 60 Marks in DT JUNE 2012

74. SACHIN MITTAL 60 Marks in DT DEC 2012

75. VIBHOR KHANNA 60 Marks in DT JUNE 2013

76. SANJEEV 60 Marks in DT DEC 2017

77. GOVIND 60 Marks in DT JUNE 2015

78. DEEPAK SAINI 60 Marks in DT JUNE 2016

79. SANDEEP PAL 59 Marks in DT JUNE 2016

80. KUNAL GAUTAM 59 Marks in DT JUNE 2014

81. KALYANI 59 Marks in DT JUNE 2014

82. MOHIT BAGHEL 59 Marks in DT DEC 2013

83. MD. SHADAB ANJUM 59 Marks in DT JUNE 2016

84. AMIT GUPTA 59 Marks in DT JUNE 2018

85. VARUNDRA KUMAR JHA 59 Marks in DT DEC 2012

86. SAORABH 59 Marks in DT DEC 2015

87. PRIYA AGRAWAL 58 Marks in DT DEC 2017

88. ANUP SINGH SOMVANSHI (48 marks in IDT) 58 Marks in DT DEC 2017

89. RAHUL SINGH 58 Marks in DT JUNE 2016

90. VED PRAKASH 58 Marks in DT JUNE 2017

91. NEERAJ RAWAT 58 Marks in DT DEC 2017

92. OMKAR SINGH 57 Marks in DT JUNE 2018

93. ANIKET GARG 57 Marks in DT JUNE 2017

94. FARHEEN NAAZ (61 marks in IDT) 57 Marks in DT DEC 2017

95. ANURADHA MISHRA 57 Marks in DT JUNE 2018

96. ASHISH 57 Marks in DT DEC 2013

97. UTTAM SINGH 57 Marks in DT DEC 2013

98. NEERAJ KUMAR 57 Marks in DT JUNE 2016

99. DHRUV KUMAR SHARMA 57 Marks in DT DEC 2015

100. SURABHI 57 Marks in DT JUNE 2016

101. KARAN PANESHAR 56 Marks in DT JUNE 2018

102. PIYUSH MEHTA 56 Marks in DT JUNE 2016

103. MADHU 56 Marks in DT JUNE 2016

104. ANKIT PARASHAR 56 Marks in DT JUNE 2018

105. VISHAL AGRAWAL 56 Marks in DT JUNE 2018

106. SANJEEV KUMAR 56 Marks in DT DEC 2015

107. DEBJANI DUTTA 56 Marks in DT JUNE 2016

108. SAHIL AGGARWAL 55 Marks in DT JUNE 2016

109. NEHA GUPTA 55 Marks in DT JUNE 2014

110. KHUSHBU MISHRA 55 Marks in DT JUNE 2015

111. PRADEEP KUMAR 55 Marks in DT

112. ISHAN KUMAR JAIN 55 Marks in DT JUNE 2017

113. NIMMI AGRAWAL 54 Marks in DT JUNE 2013

114. SHIVANGI SINGH 54 Marks in DT JUNE 2013

115. ROHIT CHAUHAN 54 Marks in DT DEC 2013

116. PRAVEEN KUMAR TIWARI 54 Marks in DT DEC 2015

117. ROHIT SHARMA 54 Marks in DT DEC 2015

118. ANAND MOHAN MISHRA 54 Marks in DT JUNE 2016

119. DEEPAK KUMAR (47 marks in IDT) 53 Marks in DT DEC 2017

120. HIMANSHU GARG 53 Marks in DT JUNE 2015

121. RINKU KUMAR BIND 53 Marks in DT JUNE 2016

122. FAKHRUZZAMAN 53 Marks in DT JUNE 2016

123. ANKIT RAWAT 53 Marks in DT DEC 2013

124. KUNJIT JAIN 53 Marks in DT DEC 2015

125. RAVI GUPTA 53 Marks in DT DEC 2015

126. VIVEK KUMAR 53 Marks in DT DEC 2012

127. ANAND KUMAR 53 Marks in DT DEC 2013

128. TAUSIF ANSARI 53 Marks in DT JUNE 2018

129. AARAV KAPOOR 53 Marks in DT JUNE 2016

130. ABHISHEK 53 Marks in DT JUNE 2016

131. ASHISH KUMAR 52 Marks in DT DEC 2013

132. ADITYA 52 Marks in DT DEC 2013

133. SANDEEP MAHOR 52 Marks in DT JUNE 2013

134. ANKUSH GUPTA 52 Marks in DT DEC 2017

135. VIJAY 52 Marks in DT DEC 2015

136. RAHUL GARG 52 Marks in DT DEC 2015

137. ANANT 52 Marks in DT DEC 2015

138. PRIYA JOSHI 52 Marks in DT DEC 2015

139. TARIQ 52 Marks in DT DEC 2015

140. RAJAT JAGWANI 52 Marks in DT DEC 2015

141. VARUN MOR 52 Marks in DT JUNE 2018

142. SANDEEP SAINI 52 Marks in DT JUNE 2013

143. PRADEEP KUMAR 52 Marks in DT JUNE 2017

144. PUSHKAR SINGH 51 Marks in DT DEC 2015

145. DHARMENDRA SINGH 51 Marks in DT DEC 2015

146. AMIT JOGHI 51 Marks in DT JUNE 2013

147. MUKESH KUMAR 51 Marks in DT JUNE 2014

148. DEEPAK KUMAR RAWAT 51 Marks in DT JUNE 2018

149. AVINASH RAJBHAR 51 Marks in DT JUNE 2016

150. DINESH SHEORAN 51 Marks in DT JUNE 2015

151. ARNITA NEGI 51 Marks in DT JUNE 2017

152. ABBAS 50 Marks in DT

153. VINAY SHARMA 50 Marks in DT JUNE 2018

154. DURGA PRASAD (55 marks in IDT) 50 Marks in DT DEC 2017

155. DURGA PRASAD 50 Marks in DT DEC 2015

156. YASH WALIA 50 Marks in DT DEC 2017

157. SAURABH JAIN 50 Marks in DT JUNE 2018

158. MUKESH MISHRA 50 Marks in DT JUNE 2016

159. AMIT KUMAR JHA 50 Marks in DT JUNE 2016

160. MUKESH CHAND 50 Marks in DT DEC 2015

161. PAWAN 50 Marks in DT DEC 2015

162. SHRAVAN KUMAR 50 Marks in DT JUNE 2015

163. AMIT KUMAR JHA 50 Marks in DT JUNE 2016

164. MEENAKSHI 50 Marks in DT DEC 2013

165. PRIYA SINGHAL 49 Marks in DT JUNE 2013

166. VIVEK GUPTA 49 Marks in DT JUNE 2018

167. PRIYA KANOJIA 49 Marks in DT DEC 2017

168. VIJAY KUMAR MISHRA 49 Marks in DT JUNE 2015

169. DIVYA KAUSHAL 49 Marks in DT JUNE 2013

170. CHANDA (75 marks in IDT) 48 Marks in DT DEC 2017

171. NITIKA JAIN (40 marks in IDT) 48 Marks in DT DEC 2017

172. ANKIT SINGH (IDT-63 Marks) 48 Marks in DT JUNE 2018

173. DEEPAK JOSHI 48 Marks in DT JUNE 2016

174. ANJALI 48 Marks in DT DEC 2013

175. MEENAKSHI 48 Marks in DT DEC 2015

176. LALIT MATHPAL 48 Marks in DT DEC 2013

177. SHUBHAM AGGRAWAL (44 marks in IDT) 47 Marks in DT DEC 2017

178. ANURAG SHARMA 47 Marks in DT JUNE 2016

179. PRANAV JAYAN 47 Marks in DT JUNE 2015

180. KAUSHIKI 47 Marks in DT DEC 2012

181. ABHISHEK TYAGI 47 marks in DT DEC 2013

182. SHUBHAM GUPTA 46 Marks in DT JUNE 2015

183. AYUSH GUPTA 46 Marks in DT JUNE 2014

184. MD. SHANU 46 Marks in DT JUNE 2014

185. SAURABH AGGARWAL 46 Marks in DT JUNE 2015

186. HITESH BHARDWAJ 46 Marks in DT JUNE 2016

187. NEERAJ RAWAT (48 marks in IDT) 45 Marks in DT DEC 2017

188. INDU 45 Marks in DT JUNE 2016

189. HIMANSHU GARG (60 marks in IDT) 45 Marks in DT DEC 2014

190. GOPAL CHAUDHARY 45 Marks in DT DEC 2012

191. SANDEEP SINGH 45 Marks in DT DEC 2012

192. DEEPAK BHARTI 45 Marks in DT DEC 2013

193. SHIV SHANKER 45 Marks in DT DEC 2013

194. NAND KISHORE 45 Marks in DT DEC 2013

195. CHANKEY PRASAD 45 Marks in DT JUNE 2013

196. NIKITA DUSEJA 43 Marks in DT JUNE 2016

197. MEENA YADAV 43 Marks in DT JUNE 2016

198. KANCHAN 43 Marks in DT DEC 2017

199. BHARTI 42 Marks in DT JUNE 2018

200. GANU RAJ DHODY (66 marks in IDT) 41 Marks in DT DEC 2017


LAXMINAGAR, DELHI


CA INTER/IPC RESULT FROM SATC

1. KAMNA GUPTA 84 Marks NOV 2014

2. RHYTHM JAIN (AIR 33) 83 Marks NOV 2014

3. MEGHA KUMARI SINGHAL (AIR 13) 77 Marks MAY 2018

4. VINEET KUMAR (AIR 36) 56 Marks MAY 2018

5. ROHIT SINGH 80 Marks MAY 2013

6. JAGJEET SINGH 80 Marks MAY 2012

7. DEEPAK CHAUHAN 79 Marks NOV 2014

8. DEEPANSHU CHAUHAN 79 Marks NOV 2014

9. MOHIT SHUKLA 79 Marks MAY 2014

10. UJJAWAL NAYYAR 77 Marks NOV 2016

11. VANSHIKA KHANNA 76 Marks NOV 2016

12. PRACHI SONI 75 Marks NOV 2014

13. PRADEEP KUMAR 75 Marks MAY 2014

14. NISHA AGRAWAL 74 Marks NOV 2014

15. SHAHWAT PANDEY 74 Marks NOV 2012

16. NANDITA GUPTA 74 Marks NOV 2012

17. PRATIK SUMAN 74 Marks MAY 2012

18. SHUBHAM GUPTA 73 Marks MAY 2017

19. BHANU 73 Marks NOV 2016

20. VISHAL AGGARWAL 73 Marks MAY 2014

21. OM PRAKASH 73 Marks MAY 2013

22. NIKITA 73 Marks NOV 2011

23. SANJAY RAWAT 72 Marks NOV 2014

24. RAJAT RASTOGI 72 Marks MAY 2014

25. JATIN KUMAR 72 Marks MAY 2014

26. SUNNY CHAUDHARY 72 Marks NOV 2011

27. RAMESH RIZAL 72 Marks MAY 2011

28. NITESH KUMAR 71 Marks MAY 2017

29. VAIBHAV 71 Marks MAY 2016

30. PRIYANKA SEERA 71 Marks MAY 2014

31. SHISHIR KUMAR 71 Marks MAY 2012

32. BIKASH KR. BHAGAT 71 Marks MAY 2012

33. MRINAL SINHA 70 Marks NOV 2014

34. MD. ALAM REHMANI 70 Marks NOV 2014

35. BIPIN KR. JHA 70 Marks NOV 2014

36. SHIVANI 70 Marks NOV 2014

37. RAHUL KOHLI 70 Marks MAY 2014

38. SUMIT GUPTA 70 Marks NOV 2013

39. KRITYANSHU 70 Marks MAY 2013

40. HARPREET SINGH 69 Marks NOV 2017

41. SANTOSH KUMAR THAKUR 69 Marks NOV 2017

42. DEVENDRA DIXIT 69 Marks MAY 2016

43. NEHA GUPTA 69 Marks NOV 2014

44. YASH CHAUDHARY 69 Marks NOV 2014

45. TANSHA 69 Marks NOV 2014

46. AYUSH YADAV 69 Marks NOV 2014

47. GARIMA AGGRAWAL 69 Marks MAY 2014

48. RUHANI RAHEJA 69 Marks MAY 2013

49. PRADEEP YADAV 69 Marks NOV 2012

50. NEELMANI 69 Marks NOV 2011

51. NIVESH BHATNAKAR 68 Marks NOV 2016

52. RAJ KAUSHIK 68 Marks NOV 2014

53. SAMEERUDIN 68 Marks MAY 2014

54. ANKIT SINGH 68 Marks MAY 2014

55. PRAKASH SHARMA 68 Marks MAY 2014

56. SUDHIR KUMAR GUPTA 68 Marks NOV 2011

57. PRAVESH POKHREL 68 Marks MAY 2011

58. PRIYANKA 67 Marks NOV 2017

59. SHOBHIT DIWAKER 67 Marks MAY 2017

60. SATYENDRA KUMAR 67 Marks NOV 2016

61. DEEPAK DHIWAN 67 Marks NOV 2016

62. KAMLESHWAR MAURYA 67 Marks NOV 2014

63. MD DANIYAL 67 Marks NOV 2014

64. MANISH JOSHI 67 Marks MAY 2013

65. UJJWALA 67 Marks MAY 2013

66. NAVEEN 67 Marks MAY 2012

67. KIRTI RAWAT 67 Marks MAY 2012

68. AKASHDEEP 66 Marks NOV 2017

69. LOKESH 66 Marks NOV 2016

70. LOKESH 66 Marks NOV 2016

71. DEVRAT CHAUDHARY 66 Marks MAY 2016

72. SHIVANDU SHARMA 66 Marks MAY 2016

73. JAI VARDHAN GOEL 66 Marks NOV 2014

74. SARTHAK GUPTA 66 Marks NOV 2014

75. SHAILESH GARG 66 Marks NOV 2014

76. KARAN YADAV 66 Marks MAY 2014

77. AMAN SAGAR 66 Marks NOV 2013

78. SUJIT KUMAR SHAH 65 Marks MAY 2018

79. BHUPENDRA UPADHYAYA 65 Marks NOV 2016

80. SWATI JAIN 65 Marks NOV 2016

81. SONALI SHARMA 65 Marks NOV 2014

82. KANIKA 65 Marks NOV 2013

83. NEHA JAIN 65 Marks MAY 2013

84. GAURAV 65 Marks NOV 2012

85. JEET RAM 65 Marks NOV 2011

86. RAJNISH PANDEY 64 Marks MAY 2018

87. RISHABH GOEL 64 Marks NOV 2017

88. SHUBHAM JAIN 64 Marks MAY 2017

89. PRIYANKA UPADHYAY 64 Marks NOV 2016

90. GANESH KARKI 64 Marks NOV 2016

91. JAI GUPTA 64 Marks MAY 2016

92. CHETAN SHARMA 64 Marks NOV 2014

93. MUKESH SHARMA 64 Marks NOV 2014

94. SHIVAM AGRAWAL 64 Marks NOV 2014

95. BALRAM JHA 64 Marks NOV 2013

96. HUDA MARIYAM 64 Marks NOV 2013

97. UTTAM RAJPUT 64 Marks NOV 2013

98. AMIT KUMAR KESHARWANI 64 Marks MAY 2013

99. SAJID RIZWI 64 Marks MAY 2013

100. NAVEEN MANSINGH 64 Marks NOV 2012

101. RAKESH NANDA 64 Marks NOV 2011

102. MUSKAN MOURYA 63 Marks MAY 2018

103. MAYANK BANSAL 63 Marks MAY 2017

104. GAGAN MUNJAL 63 Marks NOV 2016

105. PRATEEK RASTOGI 63 Marks NOV 2014

106. ISHA BAKSHI 63 Marks NOV 2014

107. SHEETAL 63 Marks MAY 2014

108. LOKESH DAS 63 Marks MAY 2012

109. AMIT SINGH CHAUHAN 63 Marks NOV 2011

110. SHUBHAM GUPTA 62 Marks MAY 2018

111. ARIF KHAN 62 Marks NOV 2017

112. PARDEEP 62 Marks MAY 2017

113. TARUN GOYAL 62 Marks MAY 2017

114. SWATI 62 Marks MAY 2017

115. PRADYUMNA SRIVASTAVA 62 Marks MAY 2016

116. ANSHUL 62 Marks NOV 2014

117. ARYAN TANWAR 62 Marks NOV 2014

118. BISHAL PRASAI 62 Marks NOV 2014

119. POOJA SHARMA 62 Marks NOV 2014

120. DEEPALI 62 Marks NOV 2014

121. SURUCHI PANDEY 62 Marks NOV 2013

122. ANMOL JAIN 62 Marks MAY 2013

123. MANISH GOEL 62 Marks MAY 2013

124. NAMAN JAIN 62 Marks MAY 2013

125. DOLLY TOMAR 62 Marks NOV 2012

126. NEERAJ SHARMA 62 Marks NOV 2011

127. SANJAY KUMAR PRASAD 62 Marks NOV 2011

128. VED PRAKASH 62 Marks NOV 2011

129. PRINCE TYAGI 61 Marks MAY 2018

130. DEERAJ AGRAWAL 61 Marks NOV 2017

131. AAKRITI BANSAL 61 Marks MAY 2017

132. MANISH KUMAR GUPTA 61 Marks MAY 2017

133. VARUN KUMAR SHARMA 61 Marks MAY 2017

134. LAVISH MITTAL 61 Marks NOV 2016

135. JAHAGIR AHMAD 61 Marks MAY 2016

136. JATIN GUPTA 61 Marks MAY 2016

137. HARIOM 61 Marks NOV 2014

138. VISHAL RAHUJA 61 Marks NOV 2014

139. LAKHWINDER 61 Marks NOV 2014

140. ANSHUL 61 Marks NOV 2014

141. ASTHA GUPTA 61 Marks MAY 2014

142. DEEPAK 61 Marks MAY 2014

143. ADITYA CHAUDHARY 61 Marks MAY 2014

144. POONAM KUMARI 61 Marks MAY 2014

145. AMAR KUMAR SINGH 61 Marks NOV 2013

146. GANESH CHAUDHARY 61 Marks NOV 2013

147. PREETY GOYAL 61 Marks NOV 2013

148. VICKY SAMANIYA 61 Marks MAY 2013

149. AMIT KUMAR DUBEY 61 Marks NOV 2012

150. VISHAL KUMAR 61 Marks MAY 2012

151. CHANDAN PATHAK 60 Marks MAY 2017

152. PANKAJ 60 Marks MAY 2017

153. TUSHAR GOEL 60 Marks MAY 2017

154. MOHD ASHIQU 60 Marks NOV 2016

155. APOORV AGRAWAL 60 Marks MAY 2016

156. BHANWIKA KANWAR 60 Marks NOV 2014

157. SANDIP KAFLA 60 Marks NOV 2014

158. RIYA ARORA 60 Marks MAY 2014

159. MANISH 60 Marks MAY 2014

160. DEEPAK 60 Marks MAY 2014

161. RAHUL SHARMA 60 Marks NOV 2013

162. ABHIMANYU DAS 60 Marks NOV 2013

163. SATENDRA KR. SHUKLA 60 Marks NOV 2013

164. DEEPANSHU 60 Marks MAY 2013

165. ANKIT KUMAR 60 Marks MAY 2013

166. ANAMIKA 60 Marks MAY 2013

167. RAMESH KUMAR 60 Marks NOV 2012

168. RISHABH GOEL 59 Marks MAY 2017

169. SHRUTI JAIN 59 Marks NOV 2016

170. KANIKA JAIN 59 Marks NOV 2014

171. SOMPAL 59 Marks MAY 2013

172. VIKASH KR. PANDIT 59 Marks NOV 2012

173. RAHUL RAI 58 Marks NOV 2017

174. SHIVAM SHUKLA 58 Marks MAY 2017

175. VIKASH KUMAR 57 Marks MAY 2018

176. MUNNA KUMAR KAPOOR 57 Marks MAY 2018

177. PRABIN GUPTA 57 Marks MAY 2018

178. SAMEER 57 Marks NOV 2017

179. KAMLESH MEHRA 57 Marks MAY 2017

180. AZAD ALI 57 Marks NOV 2016

181. OM PRAKASH JHA 57 Marks NOV 2016

182. ANJAN BHARTIA 56 Marks MAY 2018

183. RADHIKA MODI 56 Marks MAY 2018

184. DEEPANSHU GUPTA 56 Marks MAY 2018

185. ADITI 56 Marks NOV 2017

186. BHAWNA TIWARI 56 Marks NOV 2017

187. DEEPIKA AGRAWAL 56 Marks NOV 2017

188. SHANKAR KUMAR 56 Marks NOV 2017

189. AUPIN 55 Marks NOV 2017

190. PRAVEEN 55 Marks NOV 2017

191. VISHAL SHARMA 56 Marks MAY 2017

192. MADHAV 56 Marks NOV 2016

193. SHEETAL GUPTA 56 Marks NOV 2016

194. SHIVANGI MISHRA 55 Marks NOV 2016

195. HEMANT GARG 55 Marks NOV 2016

196. PRIYANSHU RANA 55 Marks NOV 2016

197. JAI PRAKASH KUMAR 56 Marks MAY 2016

198. SANDEEP SINGH 56 Marks MAY 2016

199. MANISHA 55 Marks MAY 2016

200. SUNNY KUMAR 55 Marks MAY 2016

…….& Many More


LAXMINAGAR-01147542530

PREFACE

Taxation is a dynamic subject, which is not only a vast subject but also difficult to

comprehend in view of frequent amendments. Yet it is the scoring subject of your

syllabus. In addition, practice in the field of Taxation is also highly remunerative.

My association with the students has helped me to bring this Question Bank in its

present form – simplified, comprehensive and easy to understand.

3rd edition of GST Question Bank – SET A incorporates the following:

� ICAI RTP CA Inter May 2018, Nov 2018 & May 2019 Exam

� Past ICAI Mock Test Paper - May 2019 Exam

� Past ICAI Mock Test Paper - May 2018 Exam

� Past ICAI GST Sample Question- May 2018 Exam

� ICAI - Suggested Answer

� CA Final Nov 2017, May 2018 & Nov 2018 Exam

� CA Inter May 2018 & Nov 2018 Exam

� ICAI RTP CA Final Nov 2018 & May 2019

� ICMAI RTP June

Hope this Question Bank serves the purpose of the students. I shall be thankful to the

readers for their suggestions, criticism and feedback if any.

Question Bank is updated as on 20 April 2019 for CA/CMA students appearing in MAY

2019/JUN 2019 Exam. All the Past questions are updated as per current law

applicable for exam.

Question Bank is covering questions based on GST Volume 1 & 2 chapters only

Email: [email protected]; Mobile: 9953006445 (Only SMS/Whatsapp)

Office: 011-47542530

THIS QUESTION BANK IS NOT FOR SALE (ONLY FOR INTERNAL CIRCULATION)

ACKNOWLEDGEMENT

This Question Bank is a result of sincere efforts of our family members, colleagues,

associates, well-wishers and students, whose contribution cannot go unacknowledged.

Master Reyaan, my wife CA Monika Agrawal and my mother deserve special mention

for the time (on which they had the first right) they allowed me for this book.

I dedicate this book to my beloved late grandparents & Papa.

CA Suraj Agrawal [Updated Edition: 20th April 2019]

“One more step towards success”

GST – By CA Suraj Agrawal SATC QB.1

| SURAJ AGRAWAL TAX CLASS | LAXMI NAGAR | NEW DELHI | 011-47542530 | +91 99530 06445 |

GST QUESTION – SET A

Updated on 20 April 2019 for CA/CMA students appearing in MAY 2019/JUN 2019 Exam. All Past questions are updated as per current law applicable for exam.

This Question Bank is covering questions based on GST Volume 1 & 2 chapters only

1. M/s. Ramchandra Associates has received some taxable services from Mohan Dalal (P) Ltd. on

12.01.20XX by making a cash payment of ` ` ` ` 5,00,000 on same day. The payment was entered in the books of account of M/s. Ramchandra Associates on 16.01.20XX and in the books of account of Mohan Dalal (P) Ltd. on 20.01.20XX. The invoice was issued by Mohan Dalal (P) Ltd. on 18.01.20XX. Determine the time of supply in the given case.

(a) 12.01.20XX (b) 16.01.20XX (c) 18.01.20XX (d) 20.01.20XX

[ICAI CA INTER RTP MAY 2019] 2. M.H. Husain, a famous painter, Delhi, sends his latest art work to Indian Classic gallery, Delhi, for

exhibition. However, no consideration has flown from Indian Classic gallery to M. H. Husain when the art work is sent to the gallery for exhibition. M. H. Husain is in dilemma whether GST is payable on said transfer of art work. What would be your advice on the same?

(a) GST is payable as the same amounts to taxable supply of goods. (b) GST is payable as the same amounts to taxable supply of services. (c) GST is not payable as the same is an exempt supply. (d) GST is not payable as the same does not amount to supply at all.

ICAI CA INTER RTP MAY 2019]

3. Kidzee Ltd., a wholesaler of toys registered in Chandigarh, is renowned in the local market for the

varieties of toys and their reasonable prices. Kidzee Ltd. makes supply of 100 pieces of baby’s learning laptops and chat learning phones to Nancy General Store on 25th September, 20XX by

issuing a tax invoice amounting to ` ` ` ` 1,00,000.

However, the said toys were returned by Nancy General Store on 30th September, 20XX. Which

document Kidzee Ltd. is required to issue in such a case?

(a) Debit Note (b) Refund voucher (c) Credit note (d) Payment voucher

ICAI CA INTER RTP MAY 2019]

4. Which of the following services is exempt from GST?

a. Bollywood dance performance by a film actor in a film and consideration charged is ` 1,45,000.

b. Carnatic music performance by a classical singer to promote a brand of readymade garments and consideration charged is ` 1,30,000.

c. Carnatic music performance by a classical singer in a music concert and consideration charged is `

1,55,000.

d. Kathak dance performance by a classical dancer in a cultural programme and consideration charged is ` ` ` ` 1,45,000.

[ICAI CA INTER RTP MAY 2019]

5. Examine whether supply of food and drink in the following independent cases is exempt from GST :-

a. “Smart Kids” is a Play School located in Delhi. Smart Kids has outsourced the catering services for supply of food and drink in the canteen of Play School to BTV Caterers, Delhi for a consideration of ` ` ` ` 8,00,000 per annum.




Solution: Services provided to an educational institution providing services by way of pre-school education and education up to higher secondary school or equivalent, by way of catering is exempt from GST vide Notification No. 12/2017 CT (R) dated 28.06.2017 as amended. Thus, in the given case, services provided by BTV Caterers to Smart Kids are exempt from GST .

b. Wellness Hospital, a clinical establishment located in Tirupati, is specialised in diabetic treatment. The hospital has its own canteen – Tasty Foods. The canteen serves the food and drink to the in-patients as advised by the doctors/nutritionists of the hospital. Apart from this, other patients (who are not admitted) or attendants or visitors of the in-patients also take food and drink from the canteen.


Solution: Services by way of health care services provided by a clinical establishment, an authorised medical practitioner or para-medics are exempt from GST vide Notification No. 12/2017 CT (R) dated 28.06.2017 as amended. In this regard, CBIC has clarified that food supplied by the hospital canteen to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare services and is not separately taxable. Thus, it is exempt from GST. However, other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. In view of the same, GST is exempt on the food supplied by Tasty Foods to the in-patients as advised by doctors/nutritionists while other supplies of food by it to patients (not admitted) or attendants/visitors of the in-patients is taxable.

6. [Payment of Tax] Sahil is a supplier of taxable goods in Karnataka. He got registered under GST in the

month of September, 20XX and wishes to pay his IGST liability for the month. Since he’s making the GST payment for the first time, he is of the view that he needs to mandatorily have the online banking facility to make payment of GST ; offline payment is not permitted under GST . You are required to apprise Sahil regarding the various modes of deposit in the electronic cash ledger. Further, advise him with regard to following issues:

(a) Are manual challans allowed under GST? (b) What is the validity period of the challan? (c) Is cross utilization among Major and Minor heads of the electronic cash ledger permitted?


Solution: Section 49(1) of CGST Act, 2017 read with rule 87 of CGST Rules, 2017 provides that the deposit in electronic cash ledger can be made through any of the following modes, namely:-

(i) Internet Banking through authorised banks; (ii) Credit card or Debit card through the authorised bank; (iii) National Electronic Fund T ransfer or Real Time Gross Settlement from any bank; or (iv) Over the Counter payment through authorised banks.

Thus, offline mode is also permitted under GST.

(a) Manual or physical Challans are not allowed under the GST regime. It is mandatory to generate Challans

online on the GST Portal. (b) E-challan is valid for a period of 15 days. (c) Amount entered under any Minor head (Tax, Interest, Penalty, etc.) and Major Head (CGST , IGST ,

SGST /UT GST ) of the Electronic Cash Ledger can be utilized only for that liability. Cross-utilization

among Major and Minor heads is not possible.



7. [Return] M/s Cavenon Enterprises, a registered supplier of designer wedding dresses under regular

scheme, has aggregate annual turnover of ` ` ` ` 30 lakh in the preceding financial year. It is of the view that in the current financial year, it is permitted to file its monthly statement of outward supplies – GSTR 1 - on a quarterly basis while its accountant advises it to file the same on a monthly basis. You are required to advise M/s Cavenon Enterprises on the same.

During a given tax period in the current financial year, owing to an off-season, M/s Cavenon Enterprises has not made any taxable supply. Therefore, M/s Cavenon Enterprises opines that no return under GST is required to be filed for the said period. You are required to examine the technical veracity of the opinion of M/s Cavenon Enterprises.

[ICAI CA INTER RTP MAY 2019] Solution:

Section 37 of the CGST Act, 2017 stipulates that GSTR-1 for a particular month is required to be filed on or before the 10th day of the immediately succeeding month, i.e. on a monthly basis. However, presently, as a measure of easing the compliance requirement for small tax payers, GSTR-1 has been allowed to be filed quarterly by small tax payers with aggregate annual turnover up to ` 1.5 crore in the preceding financial year or the current financial year. Tax payers with annual aggregate turnover above ` 1.5 crore will however continue to file GST R- 1 on a monthly basis. In view of the same, M/s Cavenon Enterprises can file its GSTR-1 on quarterly basis as its aggregate turnover does not excced ` 1.5 crore in the preceding financial year. Further, GSTR-1 needs to be filed even if there is no business activity in a tax period. Thus, in the present case, even if no supply has been made by M/s Cavenon Enterprises, a NIL return is required to be filed for the relevant tax period.

8. [Value of Supply] Kamal Book Depot, a wholesaler of stationery items, registered in Mumbai, has received order for supply of stationery items worth ` ` ` ` 2,00,000/- on 12th November, 20XX from another local registered dealer, Mr. Mehta, Mumbai. Kamal Book Depot charged the following additional expenses from Mr. Mehta:-

Particulars Amount (`̀̀̀)

(i) Packing charges 5,000

(ii) Freight & Cartage 2,000

(iii) Transit insurance 1,500

(iv) Extra designing charges 6,000

(v) Taxes by Municipal Authority 500

The goods were delivered to Mr. Mehta on 14th November, 20XX. Since Mr. Mehta was satisfied with the quality of the goods, he made the payment of goods the same day and simultaneously placed another order on Kamal Book Depot of stationery items amounting to ` ` ` ` 10,00,000 to be delivered in the month of December, 20XX**. On receipt of second order, Kamal Book Depot allowed a discount of ` ` ` ` 20,000 on the first order placed by Mr. Mehta. Compute the GST liability of Kamal Book Depot for the month of November, 20XX assuming the rates of GST on the goods supplied as under: CGST 9% SGST 9% Would your answer be different if expenses (i) to (v) given in above table are already included in the price of ` ` ` ` 2,00,000? Note:-

(i) All the amounts given above are exclusive of GST. (ii) Kamal Book Depot and Mr. Mehta are not related persons and price is the sole consideration of

the supply.

**Payment and invoice for the second order will also be made in the month of December, 20XX only. [ICAI CA INTER RTP MAY 2019]



Solution: Computation of value of taxable supply and tax liability

Particulars

Amount

(`̀̀̀)

Price of the goods [Note-1] 2,00,000

(i) Packing charges [Note-2] 5,000

(ii) Freight & Cartage [Note-3] 2,000

(iii) Transit Insurance [Note-3] 1,500

(iv) Extra Designing charges [Note-4] 6,000

(v) Taxes by Municipal Authority [Note-5] 500

Value of taxable supply 2,15,000

CGST @ 9% 19,350

SGST @ 9% 19,350

Notes:-

1. As per section 15(1) of the CGST Act, 2017, the value of a supply is the transaction value i.e. the price

actually paid or payable for the said supply. 2. All incidental expenses including packing charged by the supplier to the recipient are includible in the

value of supply in terms of section 15(2) of the CGST Act, 2017. 3. The given supply is a composite supply involving supply of goods (stationery items) and services (transit

insurance and freight) where the principal supply is the supply of goods.

As per section 8(a) of the CGST Act, 2017, a composite supply is treated as a supply of the principal

supply involved therein and charged to tax accordingly. 4. Any amount charged for anything done by the supplier in respect of the supply of goods or services or

both at the time of, or before delivery of goods or supply of services; is includible in the value of supply vide section 15(2) of the CGST Act, 2017. Thus, extra designing charges are to be included in the value of supply.

5. The taxes by Municipal Authorities are includible in the value of supply in terms of section 15(2) of the

CGST Act, 2017. 6. In the given case, Mr. Mehta is allowed a discount of ` 20,000 on the goods supplied to him in the

month of November, 20XX. Since the said goods have already been delivered by Kamal Book Depot, this discount will be a post-supply discount.

Further, value of supply shall not include any discount which is given after the supply has been effected, if—

(i) such discount is established in terms of an agreement entered into at or before the time of such supply

and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has

been reversed by the recipient of the supply [Section 15(3) of the CGST Act, 2017].

However, in the given case, post-supply discount given to Mr. Mehta will not be allowed as a deduction from the value of supply since the discount policy was not known before the time of such supply although the discount can be specifically linked to relevant invoice (invoice pertaining to stationery items supplied to Mr. Mehta in November, 20XX). In case the expenses (i) to (v) given in above table are already included in the price of ` ` ` ` 2,00,000: Since these expenses are includible in the value of supply by virtue of the reasons mentioned in explanatory notes above, no further addition will be required. Resultantly, the value of taxable supply will be ` 2,00,000 and CGST and SGST will be ` 18,000 and ` 18,000 respectively.



9. Mr. Ekaant, a supplier registered in Delhi, is engaged in the business of sale and purchase of plastic raincoats (SATC 9953006445). He furnishes the following information pertaining to inward/outward supply made by him for the month of July, 20XX:

Particulars

Amount

(` ` ` ` in lakh)

Value of inter-State outward supply to registered persons 30

Value of intra-State outward supply to registered persons 50

Value of intra-State outward supply to unregistered persons 15

Value of intra-State inward supply from registered persons 10

Value of inter-State inward supply from registered persons 5

Value of intra-State inward supply from unregistered persons 2

Following additional information is also provided by Mr. Ekaant:-

Particulars Amount (` ` ` ` in lakh)

IGST credit on capital goods purchased in the month of July 1.5

CGST / SGST credit on other inward supplies [including credit of ` ` ` ` 5,000 (CGST and SGST each) on account of membership of a club

0.5 (CGST and SGST each)

Availed consultancy services from Mr. Sujit, lawyer located in Delhi [Intra-State services] 1

The amount of ITC brought forward in the month of July, 20XX is as under:-

CGST : ` ` ` ` 2 lakh

SGST : ` ` ` ` 2 lakh

IGST : ` ` ` ` 5 lakh

Calculate the net GST liability (CGST and SGST or IGST , as the case may be) to be paid in cash for the month of July, 20XX by assuming the rates of GST as under:

CGST 9%

SGST 9%

IGST 18% Note:

(i) All the amounts given above are exclusive of taxes. (ii) All the conditions necessary for availing the IT C have been fulfilled.


Solution: Computation of net GST liability of Mr. Ekaant

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

Total tax liability

Value of intra-State legal consultancy services i.e. inward supplies liable to reverse charge mechanism (to be paid in cash) (A) [Note-1] 1,00,000 9,000 9,000 -

Value of inter-State outward supplies (B1) 30,00,000 - - 5,40,000

Value of intra-State outward supplies to registered as well as unregistered persons (B2) (`

50,00,000+ ` 15,00,000) 65,00,000 5,85,000 5,85,000 -

Total (B) = (B1) +(B2) 5,85,000 5,85,000 5,40,000

Input tax Credit

Brought forward IT C 2,00,000 2,00,000 5,00,000

Value of intra-State inward supplies from registered person [Note-2] 10,00,000 90,000 90,000

Value of inter-State inward supplies from registered person [Note-2] 5,00,000 - - 90,000



Value of intra-State inward supplies from unregistered person [Note-3] 2,00,000 - - -

IGST credit of capital goods [Note-2] 1,50,000

Credit on other inward supplies purchased in the month of July less credit on membership of a club [Note-2 & 4] 45,000 45,000 -

Credit of legal consultancy services [Note-2] 9,000 9,000 -

Total (C) 3,44,000 3,44,000 7,40,000

Net liability (B)-(C) 2,41,000 2,41,000 (2,00,000)

Less: Set off from IGST credit [Note-5] 2,00,000 - -

Liability after set off (D) 41,000 2,41,000 Nil

Net GST liability to be paid in cash (A) + (D) 50,000 2,50,000 Nil

Notes:-

1. Services supplied by an individual advocate to any business entity located in the taxable territory by way

of legal services, directly or indirectly are taxable under reverse charge mechanism. Thus, tax is payable

by the recipient (Mr. Ekaant) on said services to the Government.

Further, as per section 49(4) of the CGST Act, 2017, amount available in the electronic credit ledger [ITC

amount] may be used for making payment towards output tax. However, tax payable under reverse

charge is not an output tax in terms of section 2(82) of the CGST Act, 2017. Therefore, tax payable under

reverse charge cannot be set off against the input tax credit and thus, will have to be paid in cash.

2. Every registered person is entitled to take credit of input tax charged on any inward supply of goods

and/or services which are used or intended to be used in the course or furtherance of his business in

terms of section 16 of CGST Act, 2017.

Further “input tax” in relation to a registered person includes the tax payable under reverse charge

mechanism in terms of section 2(62) of the CGST Act, 2017.

3. Intra-State supplies (011-47542530 for notes in PDF) received by a registered person from any

unregistered supplier, are exempt from the whole of the central tax leviable thereon under section 9(4) till

30.09.2019 [Notification No.8/2017 CT (R) dated 28.06.2017]. Since no tax has been paid, so no credit is

available.

4. Input tax credit is not allowed in respect of membership of a club in terms of section 17(5) of CGST Act,

2017. 5. Input tax credit of IGST has been used to pay IGST and CGST in that order.

10. [Input Tax Credit] Le Marc Ltd. of Nashik, Maharashtra, a registered supplier, is engaged in manufacturing taxable goods. It provides the following details of items purchased and services availed by it from Gujarat, for the month of March, 20XX:

S. Particulars IGST ( `̀̀̀)

No.

1 Motor vehicle purchased for employees to be used for personal as well as business purposes 1,50,000

2 Motor vehicle purchased for transportation of goods within the factory 2,00,000

3

Food items for consumption of employees. These items were supplied free of cost to the employees in lieu of services rendered by them to the manufacturer in the course of employment. 2,000

4

Rent-a-cab facility availed for employees to fulfill a statutory obligation in this regard. The Government has notified such service under section 17(5)(b)(iii)(A) of the CGST Act, 2017. 36,000

Calculate the amount of eligible input tax credit for the month of March, 20XX. [ICAI CA INTER RTP MAY 2019]



Solution: Computation of eligible input tax credit

Particulars Eligible ITC (`)

Motor vehicle purchased for employees to be used for personal as well as business purposes [Note-1] -

Motor vehicle purchased for transportation of goods within the factory [Note-1] 2,00,000

Food items for consumption of employees [Note-2] -

Rent-a-cab facility given to employees [Note-3] 36,000

Total eligible input tax credit 2,36,000

Notes:-

As per section 17(5) of the CGST Act, 2017: 1. ITC on motor vehicles and other conveyances is blocked except when they are used—

(i) for making the following taxable supplies, namely :—

(A) further supply of such vehicles or conveyances; or (B) transportation of passengers; or

(C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods.

Thus, in the given case, ITC on motor vehicle purchased for transportation of goods within the factory will only be allowed

2. ITC in respect of food and beverages is blocked unless the same is used for making outward taxable

supply of the same category or as an element of the taxable composite or mixed supply. Thus, in the given case, ITC of taxes paid on food for employees is not allowed.

3. ITC on supply of rent-a cab services is not blocked where the Government notifies the services which are obligatory for an employer to provide such service to its employees. Thus, ITC is available on said service. (whatsapp 9953006445 for PDF Notes)

11. M/s. Shri Durga Corporation Pvt. Ltd. is a supplier of goods and services at Kolkata. It has furnished

the following information for the month of February, 20XX:

Particulars Amount

(i) Intra-State sale of taxable goods including ` ` ` ` 1,00,000 received as 4,00,000

advance in January, 20XX, the invoice for the entire sale value is issued on 15th February, 20XX (ii) Goods purchased from unregistered dealer on 20th February, 20XX 1,00,000 (Inter-State purchases are worth ` ` ` ` 30,000 and balance purchases are intra-State) (iii) Services provided by way of labour contracts for repairing a single 1,00,000 residential unit otherwise than as a part of residential complex (It is an intra-State transaction) (iv) Goods transport services received from a GTA. GTA is paying tax 2,00,000 @12% (It is an inter-State transaction)

Compute net GST liability (CGST, SGST or IGST, as the case may be) of M/s Shri Durga Corporation Pvt. Ltd. For the month of February, 20XX.

Assume the rates of GST, unless otherwise specified, as under:

CGST 9% SGST 9%

lGST 18% Note:-

The turnover of M/s. Shri Durga Corporation Pvt. Ltd. was ` ` ` ` 2.5 crore in the previous financial year. All the amounts given above are exclusive of taxes. [ICAI CA INTER RTP NOV 2018]



Solution: Computation of GST liability of M/s. Shri Durga Corporation Pvt. Ltd. for the month of February, 20XX

Particulars Value of Supply CGST SGST IGST

Intra -State sale of taxable goods [Note-1] 4,00,000 36,000 36,000

Goods purchased from unregistered dealer on 20th February, 20XX [Note-2] Nil Nil Nil

Services rendered by way of labour contracts 1,00,000 9,000 9,000

for repairing a single residential unit otherwise than as a part of residential complex [Note-3]

Goods transport services received from GTA [Note-4] 2,00,000 Nil

Total GST liability for the month of February, 20XX

45,000 45,000 Nil

Less: Input tax credit available [Note-5](` ` ` ` 2,00,000 x12%)

24,000 Net GST liability for the month of February, 20XX

21,000 45,000 Nil

Notes: 1. Section 12 of CGST Act, 2017 read with Notification No. 66/2017 CT dated 15.11.2017 provides that

the time of supply for all suppliers of goods (excluding composition suppliers) is the time of issue of

invoice, without any turnover limit. [Time of Supply Chapter]

Thus, liability to pay tax on the advance received in January, 20XX will also arise in the month of

February, when the invoice for the supply is issued. [Any advance against Goods is not taxable in

the month of receipt]

2. All intra-State and inter-State procurements made by a registered person from unregistered person have

been exempted from reverse charge liability, without any upper limit for daily procurements upto

30.09.2019.

3. Services by way of pure labour contracts of construction, erection, commissioning, or installation

of original works pertaining to a single residential unit otherwise than as a part of a residential complex

are exempt vide Notification No. 12/2017 CT(R) dated 28.06.2017. Labour contracts for repairing are

thus, taxable. [Exemption Chapter]

4. As per Notification No. 13/2017 CT(R) dated 28.06.2017, GST is payable by the recipient on reverse

charge basis on the receipt of services of transportation of goods by road from a goods transport agency

(GTA) provided such GTA has not paid GST @ 12%.

Since in the given case, services have been received from a GTA who has paid GST @ 12%,

reverse charge provisions will not be applicable. [Charge of Supply Chapter]

5. Input tax credit is available for the services received from GTA. The input tax credit of IGST can be used

against IGST, CGST and SGST in the respective order vide section 49(5) of CGST Act, 2017.

12. [ITC Chapter] Cloud Seven Private Limited, a registered supplier, is engaged in the manufacture of

taxable goods. The company provides the following information pertaining to GST paid on the purchases made/input services availed by it during the month of February, 20XX :

Particulars

GST

paid (`̀̀̀)

(i) Trucks used for the transport of raw material 1,20,000

(ii) Foods and beverages for consumption of employees lot was received during the month 40,000

(iii) Inputs are to be received in five lots, out of which third lot was received during the month 80,000

(iv) Membership of a club availed for employees working in the factory 1,50,000

(v)

Capital goods (out of five items, invoice for one item was missing and GST paid on

that item was ` ` ` ` 50,000) 4,00,000

(vi) Raw material (to be received in March, 20XX) 1,50,000



Determine the amount of input tax credit available with Cloud Seven Private Limited for the month of February, 20XX by giving necessary explanations for treatment of various items. All the conditions necessary for availing the input tax credit have been fulfilled.

[ICAI CA INTER RTP NOV 2018] Solution: Computation of input tax credit (ITC) available with Cloud Seven Private Limited for the month of

February, 20XX

Particulars `̀̀̀

Trucks used for the transport of raw material [Note-1] 1,20,000

Foods and beverages for consumption of employees working in the factory [Note-2] Nil

Inputs are to be received in five lots, out of which third lot was received during the month [Note-3] Nil

Membership of a club availed for employees working in the factory [Note-4] Nil

Capital goods (out of five items, invoice for one item was missing and GST paid on that item was ` 50,000) [Note-5] 3,50,000

Raw material to be received in March, 20XX [Note-6] Nil

Total ITC 4,70,000

Notes:-

1. ITC on motor vehicles is disallowed in terms of Section 17(5) [Blocked Credit] of the CGST Act, 2017,

except when they are used inter alia, for transportation of goods.

2. ITC on food or beverages is specifically disallowed unless the same is used for making outward taxable

supply of the same category or as an element of the taxable composite or mixed supply- [Section 17(5)].

3. When inputs are received in instalments, ITC can be availed only on receipt of last instalment- [Section

16(2)].

4. Membership of a club is specifically disallowed under section 17(5) of the CGST Act, 2017.

5. ITC cannot be taken on missing invoice. The registered person should have the invoice in its possession

to claim ITC [Section 16(2) of CGST Act, 2017] .

6. Input tax credit is available only upon the receipt of goods in terms of section 16(2) of CGST Act, 2017.

13. [Composition Scheme] - M/s. Handsome and Likemi Company, a partnership firm at Mumbai (contact

SATC for PDF Notes) is running a mobile phone showroom. Along with mobile phone showroom, it is also engaged in providing health and fitness services.

Turnover of the mobile phone showroom was ` ` ` ` 78 lakh and receipts of the health and fitness service

was ` ` ` ` 26 lakh in the preceding financial year.

(i) With reference to the provisions of the CGST Act, 2017, examine whether the firm can opt for the

composition scheme,

(ii) Will your answer change, if the turnover of the mobile phone showroom was ` ` ` ` 74 lakh and

receipts of the health and fitness service was ` ` ` ` 18 lakh in the preceding financial year?

(iii) If M/s. Handsome and Likemi Company obtain separate registration for their mobile phone

showroom & for health fitness centre, can it opt for composition scheme only for mobile phone

showroom?

[ICAI CA INTER RTP NOV 2018]



Solution:

A registered person, whose aggregate turnover in the preceding financial year did not exceed ` 1 crore [` 75

lakh in case of special category States except Jammu and Kashmir and Uttarakhand], may opt for

composition scheme vide section 10 of CGST Act, 2017.

However, he shall not be eligible to opt for composition scheme if, inter alia, he is engaged in the supply of services other than restaurant services.

(i) In the given case, since M/s Handsome and Likemi Company is engaged in supply of health and fitness

service, it is not eligible to opt for composition scheme irrespective of its turnover in the preceding

financial year.

(ii) The answer will remain the same i.e., M/s. Handsome &Likemi Company will not be eligible to opt for

composition scheme even with the change in t he turnovers.

(iii) Where more than one registered persons are having the same Permanent Account Number, the

registered person shall not be eligible to opt for composition scheme unless all such registered

persons opt to pay tax under composition scheme.

Therefore, M/s. Handsome and Likemi Company will not be able to opt for composition scheme only for

mobile phone showroom as all the registrations under the same PAN have to opt for composition

scheme and since the supply of health and fitness service is ineligible for composition scheme,

supply of mobile phones too becomes ineligible for composition scheme.

14. [Registration & Tax Invoice Chapter] Luv & Kush Pvt. Ltd. of Srinagar, Jammu & Kashmir engaged in

the supply of gifts items provides you the following details:-

S.No. Particulars Date

1 Commencement of the business of supplying goods 01.08.20XX

2 Turnover exceeds ` ` ` ` 10,00,000 on 15.08.20XX

3 Turnover exceeds ` ` ` ` 20,00,000 on 05.09.20XX

4 Application for registration made on 28.09.20XX

5 Registration certificate granted on 06.10.20XX

The company seeks your advice as to how it should raise revised tax invoices for supplies made. Is there any specific provision for issuance of revised tax invoices to unregistered customers? Explain.

[ICAI CA INTER RTP NOV 2018] Solution:

A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT [` 10 lakh in special

category states except Jammu & Kashmir] is liable to apply for registration within 30 days from the date of

becoming liable to registration (i.e., the date of crossing the threshold limit of ` 20 lakh/ ` 10 lakh) vide section

22 of CGST Act, 2017.

Where the application is submitted within said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration. Every registered person who has been granted registration with effect from a date earlier than the date of issuance of registration certificate to him, may issue revised tax invoices in respect of taxable supplies effected during this period within 1 month from the date of issuance of registration certificate [Section 31].

In the given case, Luv & Kush Pvt. Ltd is located in Jammu & Kashmir, a special category state. Though the turnover limit for special category states is ` 10 lakh, Jammu & Kashmir has opted for turnover limit of ` 20 lakh for the purpose of registration. Thus, since Luv & Kush Pvt. Ltd. has made the application for registration within 30 days of becoming liable for registration, the effective date of registration becomes the date on which the company becomes liable to registration i.e. 05.09.20XX.

Thus, Luv & Kush Pvt. Ltd. may issue revised tax invoices against the invoices already issued during the period between effective date of registration (05.09.20XX) and the date of issuance of registration certificate (06.10.20XX), within 1 month from 06.10.20XX.



Further, Luv & Kush Pvt. Ltd may issue a consolidated revised tax invoice in respect of all taxable supplies made to unregistered dealers during such period. However, in case of inter-State supplies made to unregistered dealers, a consolidated revised tax invoice cannot be issued if the value of a supply

exceeds ` ` ` ` 2,50,000. 15. [Value of Supply] - Red Pepper Ltd., Delhi, a registered supplier, is manufacturing taxable goods. It

provides the following details of taxable inter-State supply made by it for the month of March, 20XX.

Particulars Amount in

List price of goods supplied inter-state (exclusive of taxes) 15,00,000

Subsidy received from Central Government for supply of taxable goods to Government School. 2,10,000

Subsidy received from a NGO for supply of taxable goods to an old age home 50,000

Tax levied by Municipal Authority 20,000

Packing charges 15,000

Late fee paid by the recipient of supply for delayed payment of invoice 6,000

The list price of the goods takes into account the two subsidies received. However, the other charges/taxes/fee are charged to the customers over and above the list price. Calculate the value of taxable supply made by M/s Red Pepper Ltd. for the month of March, 20XX. Rate of IGST is 18%.

[ICAI CA INTER RTP NOV 2018] Solution: Computation of value of taxable supply made by Red Pepper Ltd. for the month of March, 20XX

Particulars `̀̀̀

List price of the goods 15,00,000

Add: Subsidy amounting to ` 2,10,000 received from Central Government [Since subsidy is received from Government, the same is not includible in the value in terms of section 15 of the CGST Act, 2017] NIL

Subsidy received from NGO [Since subsidy is received from a non-Government body, the same is includible in the value in terms of section 15 of the CGST Act, 2017] 50,000

Tax levied by the Municipal Authority [Includible in the value as per section 15 of the CGST Act, 2017] 20,000

Packing charges [Being incidental expenses, the same are includible in the value as per section 15 of the CGST Act, 2017] 15,000

Late fees paid by recipient of supply for delayed payment [Includible in the value as per section 15 of the CGST Act, 2017]

(assumed to be inclusive of taxes) [` ` ` ` 6,000 x 100/118] rounded off (Note: As an alternative, Students may also assume amount exclusive of taxes) 5,085


16. (i) Explain the meaning of the term “date of receipt of payment” as per section 13 of the CGST Act, 2017.

(ii) [SUPPLY] List any four activities which shall be neither treated as supply of goods nor a supply of

services under the GST law.


Solution: (i) “Date of receipt of payment” in terms of section 13 of CGST Act, 2017 refers to the

(a) date on which the payment is recorded in the books of account of the entity (supplier of service) that

receives the payment, or

(b) the date on which the payment is credited to the entity’s bank account,

whichever is earlier.



(ii) Section 7(2)(a) of CGST Act, 2017 read with Schedule III specifies the activities or transactions

which shall be treated neither as a supply of goods nor a supply of services:

1. Services by an employee to the employer in the course of or in relation to his employment.

2. Services by any court or Tribunal established under any law for the time being in force.

3.

(a) Functions performed by the Members of Parliament, Members of State Legislature, Members of

Panchayats, Members of Municipalities and Members of other local authorities;

(b) Duties performed by any person who holds any post in pursuance of the provisions of the

Constitution in that capacity; or

(c) Duties performed by any person as a Chairperson or a Member or a Director in a body

established by the Central Government or a State Government or local authority and who is not

deemed as an employee before the commencement of this clause.

4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.

5. Sale of land and, subject to paragraph 5(b) of Schedule II, sale of building.

6. Actionable claims, other than lottery, betting and gambling.

[Note:- Any four points may be mentioned.]

17. [EXEMPTION] - Examine whether GST is payable in the following independent supply of services:

(i) Indiana Engineering College, a recognised educational institution, has conducted an entrance test examination for various courses run by it and charged entrance fees from the applicants.

(ii) Ramfal Lalaji, an agriculturist, has stored sugarcane in a warehouse. He has taken fumigation services in the said warehouse from Gupta Pest Control Co. for which he paid the consideration

of ` ` ` ` 6,000. [ICAI CA INTER RTP NOV 2018]

Solution: (i) Services provided by an educational institution by way of conduct of entrance examination against

consideration in the form of entrance fee are exempt from GST vide Notification No. 12/2017 CT (R)

dated 28.06.2017 as amended.

Since in the given case, services provided by Indiana Engineering College, an educational institution are by way of conduct of entrance examination against entrance fee, the same is exempt and thus, GST is not payable in this case.

(ii) Services by way of fumigation in a warehouse of agricultural produce are exempt from GST vide

Notification No. 12/2017 CT (R) dated 28.06.2017 as amended. In the present case, since Gupta Pest

Control Co. provides services by way of fumigation in the warehouse of sugarcane [being an agricultural

produce], said services are exempt and GST is not payable on the same.

18. (i) [REVERSE CHARGE] With reference to the provisions of GST law, briefly answer the following

questions:-

(a) Income is received by Maharashtra Government from renting of immovable property to Ganpati

Morya Pvt. Ltd., registered in Maharashtra (Turnover of the company was ` ` ` ` 18 lakh in the

preceding financial year). Is GST payable in the present case? If yes, who is liable to pay the

same?

(b) Mr. Vivek Goyal, director of A2Z Pvt. Ltd. Company has received sitting fee amounting to ` ` ` ` 1 lakh

from A2Z Pvt. Ltd for attending the Board meetings. (whatsapp for PDF at 9953006445)

(ii) Explain the meaning of the term “input tax” under section 2(62) of CGST Act, 2017.




Solution:

(i)

(a) Notification No. 12/2017 CT (R) dated 28.06.2017 has inter alia exempted the services provided by the State

Government to a business entity with an aggregate turnover of up to ` 20 lakh (` 10 lakh in case of a Special

Category States) in the preceding FY. However, the same shall not apply to services by way of renting of

immovable property.

In the given case, services by way of renting of immovable property is provided by Maharashtra Government to Ganpati Morya Pvt. Ltd, registered in Maharashtra. Therefore, the above exemption will not apply in

this case even though the turnover of the company was less than ` ` ` ` 20 lakh in the preceding financial year. Thus, GST is payable in the given case. Notification No. 13/2017 CT (R) dated 28.06.2017 as amended inter alia provides that reverse charge is applicable in case of services supplied by the State Government by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017. Thus, GST is payable by Ganpati Morya Pvt. Ltd., being a registered person in the present case.

(b) Notification No. 13/2017 CT (R) dated 28.06.2017 inter alia provides that GST on supply of services by

director of a company to the said company located in the taxable territory is payable on reverse charge basis.

Therefore, in the given case, person liable to pay GST is the recipient of services, i.e., A2Z Pvt. Ltd. Company.

(ii) As per section 2(62) of CGST Act, 2017, “input tax” in relation to a registered person, means the

central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services

or both made to him and includes —

(a) the integrated goods and services tax charged on import of goods;

(b) the tax payable under the provisions of sub -sections (3) and (4) of section 9;

(c) the tax payable under the provisions of sub -section (3) and (4) of section 5 of the IGST Act;

(d) the tax payable under the provisions of sub -section (3) and sub-section (4) of section 9 of the respective

SGST Act; or

(e) the tax payable under the provisions of sub -section (3) and sub-section (4) of section 7 of the UTGST

Act, but does not include the tax paid under the composition levy.

19.

(i) [Registration] Discuss the circumstances where registration is liable to be cancelled.

(ii) Explain the order in which liability of taxable person has to be discharged under GST laws.


Solution: (i) Section 29(1) of the CGST Act, 2017 provides that the proper officer may, either on his own motion or on

an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the

registration, in such manner and within such period as may be prescribed, having regard to the circumstances

where:

(a) the business has been discontinued, transferred fully for any reason including death of the proprietor,

amalgamated with other legal entity, demerged or otherwise disposed of; or

(b) there is any change in the constitution of the business; or

(c) the taxable person, other than the person registered under sub -section (3) of section 25, is no longer

liable to be registered under section 22 or section 24



Further, section 29(2) of the CGST Act, 2017 provides that the proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,––

(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be

prescribed; or

(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or

(c) any registered person, other than a person specified in clause (b), has not furnished returns for a

continuous period of six months; or

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced

business within six months from the date of registration;or

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts

Further, the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

(ii) [Payment of Tax Chapter] - Section 49(8) of CGST Act, 2017 prescribes the chronological order in

which the liability of a taxable person has to be discharged:

(a) self -assessed tax and other dues for the previous tax periods have to be discharged first.

(b) self -assessed tax and other dues for the current tax period have to be discharged next.

(c) Once these two steps are exhausted, thereafter any other amount payable including demand determined

under section 73 or section 74 is to be discharged. In other words, the liability if any, arising out of

demand notice and adjudication proceedings comes last.

This sequence has to be mandatorily followed.

The expression “other dues” referred above mean interest, penalty, fee or any other amount payable under the Act or the rules made thereunder.

20. [IMPORTANT] - Examine whether the activity of import of service in the following independent cases

would amount to supply under section 7 of the CGST Act, 2017?

(i) Miss Shriniti Kaushik received vaastu consultancy services for her residence located at Bandra, Mumbai from Mr. Racheal of Sydney (Australia). The amount paid for the said service is 5,000 Australian dollar.

(ii) Miss Shriniti Kaushik received vaastu consultancy services for her residence located at Bandra, Mumbai from her brother, Mr. Varun residing in Sydney (Australia). Further, Miss Shriniti did not pay any consideration for the said service.

(iii) Miss Shriniti Kaushik received vaastu consultancy services for her business premises located at Bandra, Mumbai from her brother, Mr. Varun residing in Sydney (Australia). Further, Miss Shriniti did not pay any consideration for the said service.


Solution: (i) Supply, under section 7 of the CGST Act, 2017, inter alia,

� includes import of services for a consideration

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

Thus, although the import of service for consideration by Miss. Shriniti Kaushik is not in course or furtherance of business, as the vaastu consultancy service has been availed in respect of residence, it would amount to supply. [Taxability - Evenif it is treated as Supply, it is an exempted Supply as Per Notification No. 12/2017 CT (R) dated 28.06.2017 as amended as import of service is used for personal purpose.]



(ii) Section 7 of the CGST Act, 2017 read with Schedule I provides that import of services by a taxable

person from a related person located outside India, without consideration is treated as supply if it is

provided in the course or furtherance of business.

In the given case, import of service without consideration by Miss Shriniti from her brother – Mr. Varun [brother, being member of the same family, is a related person] will not be treated as supply as it is not in course or furtherance of business.

(iii) Section 7 of the CGST Act, 2017 read with Schedule I provides that import of services by a taxable

person from a related person located outside India, without consideration is treated as supply if it is

provided in the course or furtherance of business.

Thus, import of service without consideration by Miss Shriniti from her brother – Mr. Varun (brother, being member of the same family, is a related person) will be treated as supply as she receives vaastu consultancy service for her business premises, i.e. in course or furtherance of business.

21. [VALUE] - Raman Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to Sahil

Traders and Jaggi Motors Ltd. located in Ahmedabad (Gujarat) and Pune (Maharashtra) respectively. Raman Ltd. has furnished the following details for the current month:

S. Particulars Sahil Jaggi No. Traders Motors

( `̀̀̀) Ltd. ( `̀̀̀) (i) Price of the goods (excluding GST) 20,000 15,000 (ii) Packing charges 600 (iii) Commission 400 (iv) Weightment charges 1,000 (v) Discount for prompt payment (recorded in the invoice) 500 Items given in points (ii) to (v) have not been considered while arriving at price of the goods given in point (i) above. Compute the GST liability [CGST & SGST or IGST, as the case may be] of Raman Ltd. for the given month. Assume the rates of taxes to be as under:

Particulars Rate of tax Central tax (CGST) 9% State Tax (SGST) 9% Integrated tax (IGST) 18%

Make suitable assumptions, wherever necessary. Note: The supply made to Sahil Traders is an inter-State supply.


Solution:

Computation of GST liability

S. Particulars Sahil Traders Jaggi Motors

No. (`̀̀̀) Ltd. (`̀̀̀)

i. Price of goods 20,000 15,000 ii. Add: Packing charges (Note-1) 600

iii. Add: Commission (Note-1) 400 iv. Add: Weighment charges (Note-1) - 1,000 v. Less: Discount for prompt payment (Note-2) - 500

Value of taxable supply 21,000 15,500 IGST payable @ 18% (Note-3) 3,780 CGST payable @ 9% (Note-4) 1,395 SGST payable @ 9% (Note-4) 1,395



Notes:

1. Incidental expenses, including commission and packing, charged by supplier to recipient of supply is

includible in the value of supply. Weighment charges are also incidental expenses, hence includible in the

value of supply [Section 15 of the CGST Act, 2017].

2. Since discount is known at the time of supply, it is deductible from the value in terms of section 15 of the

CGST Act, 2017.

3. Since supply made to Sahil Traders is an inter-State supply, IGST is payable in terms of section 5 of the

IGST Act, 2017.

4. Since supply made to Jaggi Motors Ltd. is an intra-State supply, CGST & SGST is payable on the same.

22. [INTRODUCTION/PAYMENT OF TAX] - Tirupati Traders, a registered supplier of goods, pays GST

[CGST & SGST or IGST, as the case may be] under regular scheme. It has furnished the following particulars for a tax period:-

Particulars `̀̀̀ Value of intra-State supply of goods 12,000 Value of intra-State purchase of goods 10,000

Note: (i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.

(ii) Both inward and outward supplies are exclusive of taxes, wherever applicable.

(iii) All the conditions necessary for availing the input tax credit have been fulfilled.

Compute the net GST payable by Tirupati Traders during the given tax period assuming that there is no opening balance of input tax credit (ITC). Make suitable assumptions wherever required.


Solution:

Computation of net GST payable

Particulars CGST ( `̀̀̀) SGST (`̀̀̀)

GST payable on intra-State supply of goods 1,080 1,080

[Being an intra-State supply, CGST and (` 12,000 × 9%) (` 12,000 × 9%)

SGST is payable on the same] uttuttt

Less: Input tax credit (ITC) on intra-State 900 900

purchase of goods (` 10,000 × 9%) (` 10,000 × 9%)

[CGST and SGST paid on the intra-State

purchases of goods]

Net GST payable 180 180

23. [INTRODUCTION/PAYMENT OF TAX] - Govind, a registered supplier, is engaged in providing services

in the neighbouring States from his registered office located in Mumbai. He has furnished the following details in respect of the inward and outward supplies made during a tax period:-

Particulars (`̀̀̀) Inter-State supply of services 1,80,000 Receipt of goods and services within the State 1,00,000

Assume the rates of taxes to be as under:-

Particulars Rate CGST 9% SGST 9% IGST 18%



Note: (i) Both inward and outward supplies are exclusive of taxes, wherever applicable.

(ii) All the conditions necessary for availing the input tax credit have been fulfilled.

Compute the net GST payable by Govind during the given tax period. Make suitable assumptions if required.


Solution: Computation of net GST payable by Govind

Particulars `

IGST @ 18% payable on inter-State supply of services [Being an inter-State supply, IGST is payable on the same in terms of section 5 of the IGST Act, 2017] Less: ITC of CGST @ 9% paid on intra-State receipt of goods and services [Cross utilisation of CGST towards IGST] Less: ITC of SGST @ 9% paid on intra-State receipt of goods and services [Cross utilisation of SGST towards IGST]

32,400 [1,80,000 × 18%]

9,000 [1,00,000 × 9%]

9,000

[1,00,000 × 9%]

Net GST payable in cash 14,400

Note:

1. CGST shall first be utilised towards payment of CGST and the amount remaining, if any, be utilised

towards the payment of IGST [Section 49 of the CGST Act, 2017].

2. SGST shall first be utilised towards payment of SGST and the amount remaining, if any, may be utilised

towards the payment of IGST [Section 49 of the CGST Act, 2017].

24. [INTRODUCTION/PAYMENT OF TAX] - Shipra Traders is a registered supplier of goods in Assam. It

purchased goods valued at ` ` ` ` 10,000 from Kartik Suppliers located within the same State. Kartik Suppliers charged CGST & SGST separately in its invoice. Subsequently, Shipra Traders sold goods

valuing ` ` ` ` 9,500 to Rabina Manufacturers located in Assam. 20% of the inputs purchased are still lying in stock and there was no opening stock of goods. Rate of CGST and SGST on supply and purchase of goods is 9% each. Calculate the net GST payable by Shipra Traders and input tax credit (ITC) to be carried forward, if any.


Solution:

Computation of net GST payable by Shipra Traders

Particulars CGST @ 9% SGST @ 9%

( `̀̀̀) ( `̀̀̀)

GST payable on intra-State supply of goods 855 855

[Being an intra-State supply, CGST and CGST is payable on the same] [9,500 × 9%] [9,500 × 9%]

Less: ITC on intra-State purchase of goods 900 900

[ITC of CGST and SGST paid on intra-State [10,000 × 9%] [10,000 × 9%]

purchase is available in full, even if some inputs

are lying in stock]

Net GST payable Nil Nil

Input tax credit carried forward in Electronic

Credit Ledger 45 45



25. [Section 18(6)] - Granites Textiles Ltd. purchased a needle detecting machine on 8th July, 2018 from

Makhija Engineering Works Ltd. for ` ` ` ` 10,00,000 (excluding GST) paying GST @ 18% on the same. It availed the ITC of the GST paid on the machine and started using it for manufacture of goods. The machine was sold on 22nd October, 2019 for ` ` ` ` 7,50,000 (excluding GST), as second hand machine to LT. Pvt. Ltd. The GST rate on supply of machine is 18%.

State the action which Granites Textiles Ltd. is required to take, if any, in accordance with the statutory GST provisions on the sale of the second-hand machine.


Section 18 of the CGST Act, 2017 read with the CGST Rules, 2017 provides that if capital goods or plant and

machinery on which input tax credit has been taken are supplied outward by the registered person, he

must pay an amount that is the higher of the following:

(a) input tax credit taken on such goods reduced by 5% per quarter of a year or part thereof from the

date of issue of invoice for such goods (i.e., input tax credit pertaining to remaining useful life of the

capital goods), or

(b) tax on transaction value.

Accordingly, the amount payable on supply of needle detecting machine shall be computed as follows:

Particulars ` `

Input tax credit taken on the machine (` 10,00,000 × 18%) 1,80,000

Less: Input tax credit to be reversed @ 5% per quarter for the period of use of machine

(i) For the year 2018-19 = (` 1,80,000 × 5%) × 3 quarters 27,000

(ii) For the year 2019-20 = (` 1,80,000 × 5%) × 3 quarters 27,000 54,000 Amount required to be paid (A) 1,26,000

Duty leviable on transaction value (` 7,50,000 × 18%) (B) 1,35,000

Amount payable towards disposal of machine is higher of (A) and (B) 1,35,000 26. [REVERSE CHARGE & TIME OF SUPPLY] - Royal Sweet Co., Delhi, a registered supplier, has

furnished the details of the following few transactions which took place in November, 20XX:

S. Date Particulars Date of Amount

No. invoice ( `̀̀̀)

(i) 11.11.20XX Payment made to an advocate in 07.07.20XX 1,25,000

Delhi

(ii) 20.11.20XX Paid sitting fee to Director from 15.10.20XX 75,000

Haryana for meeting held in Delhi on

15.10.20XX

[Inter-State supply]

Assume the rates of taxes to be as under:- Particulars Rate CGST 9% SGST 9% IGST 18%

You are required to compute GST [CGST & SGST/IGST, as the case may be] payable for the month of November, 20XX along with time of supply of the aforementioned activities.




Solution:

Computation of GST payable for the month of November, 20XX

S. Particulars Time of CGST SGST IGST Interest

No. supply of (`̀̀̀) (`̀̀̀) (`̀̀̀) ( `̀̀̀)

services

(i) Services from an 06.09.20XX 11,250 11,250 - 244

advocate in Delhi [Note-1 & 3] [Note-4]

(ii) Director’s Sitting 20.11.20XX - - 13,500

fee [Note-2 & 3]

Notes:-

1. Services supplied by an individual advocate to any business entity located in the taxable territory is a

notified service on which tax is payable on reverse charge basis by the recipient of services.

2. Services supplied by a director of a company to the said company is a notified service on which tax is

payable on reverse charge basis by the recipient of services.

3. As per section 13 of the CGST Act, 2017, the time of supply of services in case of reverse charge

is earliest of the following:-

(a) Date of payment as entered in the books of account of the recipient or the date on which the payment

is debited to his bank account, whichever is earlier, or

(b) Date immediately following 60 days since the date of issue of invoice.

Provisions of time of supply as provided under section 13 of the CGST Act are also applicable for inter-State supply vide section 20 of the IGST Act.

In view of the aforesaid provisions, the time of supply and due date for payment of tax in the given cases would be determined as under:

(i) Time of supply of the services is the date immediately following 60 days since the date of

issue of invoice, i.e. 06.09.20XX. The due date for payment of tax is 20.10.20XX with return of

September, 20XX.

(ii) Time of supply of service is 20.11.20XX (Date of payment) and due date for payment of tax is

20.12.20XX with return of November, 20XX.

4. The due date for payment of tax in case (i) is 20.10.20XX with return of September, 20XX. However, the

payment of tax is actually made on 11.11.20XX. Thus, payment of tax is delayed by 22 days.

In case of delayed payment of tax, interest @ 18% per annum is payable for the period for which the tax remains unpaid starting from the day succeeding the day on which such tax was due to be paid [Section 50 of the CGST Act, 2017 read with Notification No. 13/2017 CT dated 28.06.2017]. In view of the same, in the given case, interest payable would be as follows:

Amount of interest payable = ` ` ` ` 22,500 × 18% × 22/365 = ` ` ` ` 244 (rounded off)

27. [SUPPLY] - Sahab Sales, an air-conditioner dealer in Janakpuri, Delhi, needs 4 air-conditioners for his newly constructed house in Safdarjung Enclave. Therefore, he transfers 4 air-conditioners [on which ITC has already been availed by it] from its stock, for the said purpose. Examine whether the said activity amounts to supply under section 7 of the CGST Act, 2017.

Further, a Janakpuri resident, Aakash, approached Sahab Sales. He sold an air-conditioner to Sahab

Sales for ` ` ` ` 5,000. Aakash had bought the said air-conditioner six months before, for his residence. Does sale of the air conditioner by Aakash to Sahab Sales amount to supply under section 7 of the CGST Act, 2017?




Solution: Section 7 of the CGST Act, 2017 stipulates that in order to qualify as supply:

(a) Supply should be of goods and/or services.

(b) Supply should be made for a consideration.

(c) Supply should be made in the course or furtherance of business.

Further, Schedule I of the CGST Act, 2017 illustrates the activities to be treated as supply even if made without consideration. One such activity is permanent transfer or disposal of business assets where input tax credit has been availed on such assets, i.e. said activity is to be treated as supply even if made without consideration.

In view of said provisions, permanent transfer of air conditioners by Sahab Sales from its stock for personal use at its residence, though without consideration, would amount to supply. However, sale of air-conditioner by Aakash to Sahab Sales will not qualify as supply under section 7 of the CGST Act, 2017 as although it is made for a consideration, but it’s not in the course or furtherance of business.

28. [REGISTRATION] - Pure Oils, Delhi has started the supply of machine oils and high speed diesel in the

month of April, 20XX. The following details have been furnished by it for the said month:-

Sl. No. Particulars `̀̀̀*

(i) Supply of machine oils in Delhi 2,00,000 (ii) Supply of high speed diesel in Delhi 4,00,000 (iii) Supply made through Fortis Lubricants - an agent of Pure Oils in 3,75,000 Delhi (iv) Supply made by Pure Oils from its branch located in Punjab 1,80,000

*excluding GST Determine whether Pure Oils is liable for registration. Will your answer change, if Pure Oils

supplies machine oils amounting to ` ` ` ` 2,50,000 from its branch located in Himachal Pradesh in addition to the above-mentioned supplies?


As per section 22 of the CGST Act, 2017, a supplier is liable to be registered in the State/Union territory from

where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year

exceeds ` ` ` ` 20 lakh.

However, if such taxable supplies are made from any of the specified special category States (10 States), namely, States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, he shall be liable to be registered if his aggregate turnover in a

financial year exceeds ` ` ` ` 10 lakh. (Excluding J&K) As per section 2(6) of the CGST Act, 2017, aggregate turnover includes the aggregate value of: (i) all taxable supplies,

(ii) all exempt supplies,

(iii) exports of goods and/or services and

(iv) all inter-State supplies of persons having the same PAN.

The above is computed on all India basis. Further, the aggregate turnover excludes central tax, State tax, Union territory tax, integrated tax and cess. Moreover, the value of inward supplies on which tax is payable under reverse charge is not taken into account for calculation of ‘aggregate turnover’. Further, the explanation to section 22 provides that the expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. Section 9 of the CGST Act, 2017 provides that CGST is not leviable on five petroleum products i.e. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. As per section 2(47) of the CGST Act, 2017, exempt supply includes non-taxable supply. Thus, supply of high speed diesel in Delhi, being a non-taxable supply, is an exempt supply and is, therefore, includible while computing the aggregate turnover.



In the backdrop of the above-mentioned discussion, the aggregate turnover for the month of April, 20XX is computed as under:

S. Particulars Amount

No. (in `̀̀̀)

(i) Supply of machine oils in Delhi 2,00,000 (ii) Add: Supply of high speed diesel in Delhi 4,00,000 (iii) Add: Supply made through Fortis Lubricants - an agent of Pure - Oils in Delhi (iv) Add: Supply made by Pure Oils from its branch located in Punjab 1,80,000 Aggregate Turnover 7,80,000

Since the aggregate turnover does not exceed ` 20 lakh, Pure Oils is not liable to be registered. If Pure Oils made supply of machine oils amounting to ` 2,50,000 from its branch in Himachal Pradesh in

addition to the above supply, then threshold limit of registration will be reduced to ` 10 lakh as Himachal Pradesh is one of the specified Special Category States. Aggregate Turnover in that case would be ` 7,80,000 + ` 2,50,000 = ` 10,30,000. So, if Pure Oils supplies machine oils amounting to ` ` ` ` 2,50,000 from its branch in Himachal Pradesh, then it is liable to be registered. SATC NOTE: Turnover of agent is not required to be added in aggregate turnover of Principle for determining “Aggregate Turnover”

29. [TAX INVOICE]- Royal Fashions, a registered supplier of designer outfits in Delhi, decides to exhibit its products in a Fashion Show being organised at Hotel Park Royal, Delhi on 4th January, 20XX. For the occasion, it gets the makeover of its models done by Aura Beauty Services Ltd., Ashok Vihar, for

which a consideration is ` ` ` ` 5,00,000 (excluding GST) has been charged. Aura Beauty Services Ltd.

issued a duly signed tax invoice on 10th February, 20XX showing the lumpsum amount of ` ` ` ` 5,90,000 inclusive of CGST and SGST @ 9% each. Royal Fashions made the payment the very next day. Answer the following questions: (i) Examine whether the tax invoice has been issued within the time limit prescribed under law?

(ii) Tax consultant of Royal Fashions objected to the invoice raised suggesting that the amount of tax

charged in respect of the taxable supply should be shown separately in the invoice raised by Aura

Beauty Services Ltd. However, Aura Beauty Services Ltd. contended that there is no mandatory

requirement of showing tax component separately in the invoice. You are required to examine the

validity of the objection raised by tax consultant of Royal Fashions?


Solution: (i) As per section 31 of the CGST Act, 2017 read with the CGST Rules, 2017, in case of taxable supply of

services, invoices should be issued before or after the provision of service, but within a period of 30 days

[45 days in case of insurer/ banking company or financial institutions including NBFCs] from the date of

supply of service.

In view of said provisions, in the present case, the tax invoice should have been issued in the prescribed time limit of 30 days from the date of supply of service i.e. upto 03.02.20XX. However, the invoice has been issued on 10.02.20XX.

In such a case, the time of supply as per section 13 of the CGST Act, 2017 would be 04.01.20XX i.e. earliest of the following:

(a) Date of provision of service (04.01.20XX)

(b) Date of receipt of payment (11.02.20XX)

(ii) Section 31 of the CGST Act, 2017 read with the CGST Rules, 2017, inter alia, provides that tax invoice

shall contain the following particulars-

(a) Total value of supply of goods or services or both;

(b) Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(c) Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax,

Union territory tax or cess);



The objection raised by the tax consultant of Royal Fashions suggesting that the amount of tax charged in respect of the taxable supply should be shown separately in the invoice raised by Aura Beauty Services Ltd., is valid in law. In the present case, the tax amount has not been shown separately in the invoice.

30. Mr. Thiraj, a registered supplier of service in Bangalore (Karnataka State) has provided the following

information for the month of October 2018:

Particulars Amount in `̀̀̀

(i) Intra-state taxable supply of service 5,20,000 (ii) Legal fee paid to a Lawyer located within the state 20,000 (iii) Rent paid to the State Govt. for his office building 30,000 (iv) Received for services towards conduct of exams in Loveall University, Pune

(recognized by law), being an inter-state transaction 16,000 Compute the net GST liability (CGST, SGST or IGST) of Mr. Thiraj for the month of October 2018. Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively. All the amounts given above are exclusive of taxes.

[ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 6 Marks] Solution:

Computation of net GST liability by Mr. Thiraj for the month of October 2018:

Particulars Value of CGST SGST IGST

supply @ 9% @ 9% @ 18%

Output supply

(i) Intra-State taxable supply of services 5,20,000 46,800 46,800

(iv) Services towards conduct of exams in Loveall University, Pune [Note-1] 16,000 Exempt

Inward supply (Reverse Charge)

(ii) Legal fee paid to lawyer located within State [Note-2] 20,000 1,800 1,800

(iii) Rent paid to State Government for Office Building [Note-3] 30,000 2,700 2,700

Total tax liability 51,300 51,300

Less: Cash paid towards tax payable under reverse charge [A] [Note-4] -4,500 -4,500

Output tax payable against which ITC can be set off 46,800 46,800

Less: ITC of tax paid on legal fees and rent -4,500 -4,500

Output tax payable after set off of ITC [B] 42,300 42,300

Net GST liability [A] + [B] 46,800 46,800

1. Since Loveall University provides education recognized by law 1, it is an educational institution and

services provided to an educational institution, by way of conduct of examination by such institution are exempt from GST.

2. In case of legal services provided by an advocate to any business entity GST is payable under reverse charge by the recipient of service.

3. In case of services supplied by, inter alia, State Government by way of renting of immovable property to a person registered under the CGST Act, GST is payable under reverse charge by the recipient of service

4. The amount available in the electronic credit ledger may be used for making payment towards output tax. However, tax payable under reverse charge is not an output tax. Therefore, tax payable under reverse charge cannot be set off against the input tax credit and thus, will have to be paid in cash.



31. CANWIN Ltd., a registered supplier, is engaged in the manufacture of Tanks. The company provides the following information pertaining to GST paid on the purchases made/input services availed by it during the month of January 2019:

Particulars GST Paid (`̀̀̀)

(i) Purchase of Machinery where debit note is issued 1,15,000 (ii) Input purchased was directly delivered to Mr. Joe, a job 80,000 worker and a registered supplier (iii) Computers purchased (Depreciation was claimed on the 50,000 said GST portion under the Income-Tax Act, 1961) (iv) Works Contract services availed for construction of Staff 4,25,000 quarters within the company premises

Determine the amount of ITC available to M/s. CANWIN Ltd. for the month of January 2019 by giving brief explanations for treatment of various items. Subject to the information given above, all the conditions necessary for availing the ITC have been fulfilled.

[ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 4 Marks]

Solution:

Computation of input tax credit (ITC) available with CANWIN Ltd. for the month of January 2019

Particulars GST ( `̀̀̀)

Purchase of machinery where debit note is issued [Note-1] 1,15,000 Inputs directly delivered to a job worker supported by a valid document 80,000 Computers [Note-2] Nil Works contract services availed for construction of staff quarters within the company premises [Note-3] Nil

Total ITC 1,95,000

Notes:- � Input tax credit on goods purchased on the basis of debit note which is a valid document is allowed.

� Where depreciation has been claimed on the tax component of the cost of capital goods and plant and

machinery under the provisions of the Income -tax Act, 1961, the input tax credit on the said tax component is not allowed.

� Input tax credit on works contract services supplied for construction of an immovable property is specifically disallowed except where it is an input service for further supply of works contract service.

32. Ms. Achintya, a registered supplier in Kochi (Kerala State) has provided the following details in

respect of her supplies made Intra-State for the month of Jan 2019:

Particulars Amount in `̀̀̀

(i) List price of goods supplied intra-state (exclusive of items 3,30,000 given below from ii to v) (ii) Swachh Bharat cess levied on sale of the goods 12,500 (iii) Packing expenses charged separately in the invoice 10,800 (iv) Discount of 1% on list price of goods was provided (recorded in the invoice of goods) (v) Subsidy received from State Govt. for encouraging women 5,000 entrepreneurs

Compute the value of taxable supply and the gross GST liability of Ms. Achintya for the month of Jan 2019 assuming rate of CGST to be 9% and SGST to be 9%. All the amounts given above are exclusive of GST




Solution: Computation of value of taxable supply and gross GST liability of

Ms. Achintya for the month of Jan 2019

Particulars `

List price of the goods 3,30,000 Add: Swachh Bharat Cess (SBC) levied on sale of goods [Note-1] 12,500 Add: Packing expenses [Note-2] 10,800 Less: Subsidy received from State Government [Note-3] (5,000)

Less: Discount @ 1% on list price [Note-4] (3,300)

Value of taxable supply 3,45,000 CGST @ 9% 31,050 SGST @ 9% 31,050

Gross GST liability 62,100

Notes:- As per section 15 of CGST Act, 2017,

1. Any taxes, duties and cesses levied under any law other than CGST , SGST is includible in the value.

2. Packing expenses being incidental expenses, are includible in the value.

3. Since subsidy is received from State Government, the same is not includible in the value. It has been assumed that such subsidies are directly linked to the price of the goods. Further, since the same has not been adjusted in the list price, the same is to be excluded from the list price.

4. Since discount is known at the time of supply, it is deductible from the value.

Note: In the above answer, the term “exclusive” mentioned in the question has been taken to be as “not adjusted in the list price”, i.e. the list price given in the question is before adjusting the amount of discount and subsidy. However, it is also possible to take a view that the list price “excludes” amount of discount and subsidy. Therefore, the same need not be deducted again from the list price to arrive at the taxable value.

33. Explain the meaning of supply as per provisions of Section 7(1) of CGST Act, 2017.


As per section 7(1) of CGST Act, 2017, the term supply includes – a) all forms of supply of goods or services or both such as sale, transfer, barter, b) exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person,

in the course or furtherance of business; c) import of services for a consideration whether or not in the course or furtherance of business; d) the activities specified in Schedule I, made or agreed to be made without a consideration; and e) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.

34. From the following information, compute the Net GST payable for the month of Jan 2019:-

Output GST Amount in `̀̀̀ Opening ITC as Per credit ledger

CGST 2,000 Nil SGST 15,000 1,000 IGST 24,000 37,000


Computation of net GST payable for the month of Jan 2019

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

Output tax payable 2,000 15,000 24,000 Less: Opening IT C as per credit ledger (Nil) -CGST (1,000)-SGST (24,000)-IGST

(2,000)-IGST (11,000)-IGST Net GST payable Nil 3,000 Nil

Note: Input tax credit of IGST has been used to pay IGST , CGST and SGST in that order.



35. Decide with reason whether the following independent services are exempt under CGST Act, 2017 :

(i) M/s Fast Trans, a goods transport agency, transported relief materials meant for victims of Kerala floods being a natural disaster, by road from Delhi to Ernakulam, for a Limited Co.

(ii) Keyan Enterprises, an event organizer, provided services to Breathing Wall Ltd. By way of organizing business exhibition at Pragati Maidan in New Delhi as part of Make in India initiative.

[ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 3 Marks] Solution: Services provided by a goods transport agency, by way of transport in a goods carriage of, inter alia, relief materials meant for victims of inter alia natural or man-made disasters are exempt from GST. Therefore, services provided by M/s Fast Trans will be exempt from GST. Services provided by an organiser to any person in respect of a business exhibition held outside India is exempt from GST. Since in the given case, the exhibition is organized in India, the services of organization of event by Keyan Enterprises will not be exempt from GST.

36. Decide which person is liable to pay GST in the following independent cases, where the recipient is

located in the taxable territory. Ignore the Aggregate Turnover and Exemption available.

� Mr. Raghu provided sponsorship services to WE-WIN Cricket Academy, an LLP.

� 'Safe Trans', a Goods Transport Agency, transported goods of Kapil & Co., a partnership firm which is not registered under GST.


Solution:

� In case of services provided by any person by way of sponsorship to any body corporate or partnership firm / LLP, GST is liable to be paid under reverse charge by such body corporate or partnership firm / LLP located in the taxable territory. Therefore, in the given case, WE-WIN Cricket Academy is liable to pay GST under reverse charge.

� In case of services provided by Goods Transport Agency (GT A) in respect of transportation of goods by

road to, inter alia, any partnership firm whether registered or not under any law; GST is liable to be paid by such partnership firm. Therefore, in the given case, Kapil & Co. is liable to pay GST under reverse charge.

37. Determine with brief reasons, whether the following statements are True or False:

(i) Registration under the CGST Act, 2017 can be cancelled by the proper officer, if the voluntarily registered person has not commenced the business within three months from the date of registration.

(ii) Electronic cash ledger balance of ` ` ` ` 5,000 under the major head of IGST can be utilized for

discharging the liability of major head of CGST. [ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 3 Marks]

Solution:

(i) The said statement is False. Registration under the CGST Act, 2017 can be cancelled by the proper officer, if the voluntarily registered person has not commenced the business within six months from the date of registration.

(ii) The said statement is False. Amount available under one major head cannot be utilised for discharging the liability under any other major head.



38. Mr. Lakhan provides Continuous Supply of Services (CSS) to M/s. TNB Limited. He furnishes the following further information: (i) Date of commencement of providing CSS - 01-10-2018 (ii) Date of completion of providing CSS - 31-01-2019 (iii) Date of receipt of payment by Mr. Lakhan - 30-03-2019

Determine the time of issue of invoice as per provisions of CGST Act, 2017, in the following circumstances:

(iii) If no due date for payment is agreed upon by both under the contract of CSS. (iv) If payment is linked to the completion of service. (v) If M/s. TNB Limited has to make payment on 25-03-2019 as per the contract between them

[ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 5 Marks] Solution: (i) Where the due date of payment is not ascertainable from the contract, the invoice shall be issued before

or at the time when the supplier of service receives the payment.

Thus, in the given case, the invoice should be issued on or before 30.03.2019 (date of receipt of payment by Mr. Lakhan).

(ii) If payment is linked to the completion of an event, the invoice should be issued on or before the date of

completion of that event.

Since in the given case payment is linked to the completion of service, invoice should be issued on or before 31.01.2019 (date of completion of service).

(iii) Where the due date of payment is ascertainable from the contract, the invoice should be issued on or

before the due date of payment.

If M/s. TNB Limited has to make payment on 25.03.2019 as per the contract between them, the invoice should be issued on or before 25.03.2019.

39. A tax payer can file GSTR-1 under CGST Act, 2017, only after the end of the current tax period. State

exceptions to this. [ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 2 Marks]

Solution:

A taxpayer can file GST R-1 under CGST Act, 2017, only after the end of the current tax period. However, following are the exceptions to this rule: (i) Casual taxpayers, after the closure of their business (ii) Cancellation of GST IN of a normal taxpayer.

40. State the persons who are not liable for registration as per provisions of Section 23 of Central Goods and Service Tax Act, 2017.

[ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 5 Marks] Solution: As per provisions of Section 23 of CGST Act, 2017, the persons who are not liable for registration are as under–

a) Person engaged exclusively in supplying goods/services/both that are wholly exempt from tax.

b) Person engaged exclusively in supplying goods/services/both that are not liable to tax.

c) Agriculturist to the extent of supply of produce out of cultivation of land.

d) Persons only engaged in making supplies of taxable goods or services or both liable to reverse charge.

e) Persons making inter-State supplies of taxable services up to an aggregate turnover of ` 20 lakh (` 10 lakh in case of special category States except Jammu and Kashmir).

f) Casual Taxable Persons making taxable supplies of specified handicraft goods up to an aggregate turnover of ` 20 lakh (` 10 lakh in case of special category States except Jammu and Kashmir) subject to

specified conditions.



g) Persons making inter-State supplies of specified handicraft goods up to an aggregate turnover of ` 20

lakh (` 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.

h) Job workers making inter-State supply of services to a registered person up to an aggregate turnover of `

20 lakh (` 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.

i) Persons making supplies of services through an electronic commerce operator (other than supplies specified under section 9(5) of the CGST Act) up to an aggregate turnover of ` 20 lakh (` 10 lakh in case of special category States except Jammu and Kashmir).

41. Mr. Allan, a non-resident person, wishes to provide taxable supply of goods. He has no fixed place of

business or residence in India. He seeks your advise on the following aspects, relating to CGST Act, 2017:

(i) When shall he apply for registration? (ii) Is PAN mandatory for his registration? (iii) What is the period of validity of RC granted to him? (iv) Will he be able to extend the validity of his registration? If yes, what will be the period of

extension? [ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 5 Marks]

Solution: (i) Mr. Allan, being a non-resident person, should apply for registration, irrespective of the threshold limit, at

least 5 days prior to the commencement of business (ii) No, PAN is not mandatory for his registration.

He has to submit a self-attested copy of his valid passport along with the application signed by his authorized signatory who is an Indian Resident having valid PAN.

However, in case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available.

(iii) Registration Certificate granted to Mr. Allan will be valid for:

a) Period specified in the registration application, or b) 90 days from the effective date of registration

whichever is earlier.

(iv) Yes, Mr. Allan can get the validity of his registration extended. Registration can be extended further by a period not exceeding 90 days.

42. List any four Central levies, which are subsumed in GST. [ICAI EXAM CA INTER (NEW SYL) - NOV 2018 – 2 Marks]

Solution: a) The Central levies which are subsumed in GST are as under:-

b) Central Excise Duty & Additional Excise Duties

c) Service tax

d) Excise duty under Medicinal & T oilet Preparation Act

e) CVD

f) Special CVD

g) Central Sales T ax

h) Central surcharges and cesses in so far as they relate to supply of goods & services

Note: Any of the four points may be mentioned



43. Ms. Jimmy wants to adjust input tax credit for payment of interest, penalty and payment of tax under reverse charge. Explain whether she can do so.


Solution: The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger which may be used for making any payment towards output tax. “Output tax” inter alia excludes tax payable on reverse charge basis. Thus, Ms. Jimmy cannot adjust input tax credit for payment of interest, penalty as also for payment of tax under reverse charge.

44. Worldwide Pvt. Ltd. (a registered taxable person) having the gross receipt of ` ` ` ` 50 lakh in the previous financial year provides the following information relating to their services for the month of July, 2018.

Sr. No. Particulars

Amount

( `̀̀̀)

1 Running a boarding school 2,40,000

2 Fees from prospective employer for campus interview 1,70,000

3 Education services for obtaining the qualification recognised by law of foreign country 3,10,000

4

Renting of furnished flats for temporary stay to different persons (Rent per day

is less than ` ` ` ` 1,000 per person) 1,20,000

5 Conducting Modular Employable Skill Course, approved by National Council of Vocational Training 1,40,000

6 Conducting private tuitions amount 3,00,000

Compute the value of taxable supply and the amount of GST payable. The above receipts don't include the GST amount. Rate of GST is 18%.

[ICAI EXAM CA INTER (OLD SYL) - NOV 2018 – 6 Marks] Solution:

(a)

S.No. Particulars `̀̀̀

1 Running a boarding school [Services provided by an educational institution to its students, faculty and staff are exempt.]

Nil

2 Fees from prospective employer for campus interview [Not exempt.]

1,70,000

3 Education services for obtaining the qualification recognised by law of foreign country [An institution providing education services for obtaining qualification recognized by a foreign country does not qualify as educational institution. Thus, said services are not exempt.]

3,10,000

4 Renting of furnished flats for temporary stay of different persons

Nil

5 Conducting Modular Employable Skill Course [An institution providing Modular Employable Skill Course qualifies as educational institution. Services provided by an educational institution to its students, faculty and staff are exempt.]

Nil

6 Conducting private tuitions [Not exempt.] Value of taxable supply GST payable @ 18%

3,00,000 7,80,000 1,40,400



45. M/s J & Co. Chartered Accountants, a partnership firm, having its registered and head office in Mumbai and registered under the GST Act in the State of Maharashtra only. It does not have any

branches in other State. The gross receipts of the firm in the Financial Year 2017-18 was ` ` ` ` 60 lakh. Firm has submitted following information for the month of August, 2018:

Particulars Amount ( `̀̀̀) (excluding GST)

Professional services provided and bills raised during the month for providing services of ITR filing and income tax consultancy 1,00,000

Internal Audit of X Pvt. Ltd. at their office in Mumbai (registered in the State of Maharashtra) 50,000

Statutory audit services provided to M/s Tirupati Trading Pvt. Ltd. at Ahmedabad (registered in the State of Gujarat) 70,000

Firm has also furnished following information in respect of input services availed from registered dealers for providing output services during the month August, 2018:

Particulars

Amount ( `̀̀̀) (excluding

GST) CGST SGST IGST

Services availed from courier agency 5,000 450 450 Nil

Railway travelling expenses from Mumbai to Ahmedabad and Return Ticket for conducting of audit of M/s Tirupati Trading Pvt. Ltd. for 3 Tier AC 12,000 Nil Nil 600

Service availed from another professional firm at Mumbai amount is paid without TDS u/s 194J of Income Tax Act 20,000 Nil Nil 3,600

Notes: (i) Rate of CGST, SGST and IGST to be 9%, 9% & 18% respectively, on outward supplies. (ii) All the conditions necessary for availing the ITC have been fulfilled. (iii) Opening balance of available input tax credit is Nil for CGST, SGST and IGST.

Compute the net gst payable by M/s J & Co. for the month August, 2018 after adjusting the GST credit. Brief reasoning should form part of your answer.


Computation of net GST payable by M/s J & Co. for the month of August, 2018

S. Particulars CGST SGST IGST

No. ( `̀̀̀) (`̀̀̀) ( `̀̀̀)

(i) Professional services and services of IT R 9,000 9,000 - filing and IT Consultancy [` 1,00,000]

(ii) Internal audit services [` 50,000] 4,500 4,500 -

(iii) Statutory audit services [` 70,000] - - 12,600

Total GST 13,500 13,500 12,600

Less: ITC (Refer working note) 450 450 4,200

Net GST payable 13,050 13,050 8,400

Working note: Computation of ITC available for set-off

S. Particulars CGST SGST IGST

No. (`̀̀̀) ( `̀̀̀) (`̀̀̀)

(1) ITC on courier services [` 5,000] 450 450 - (2) ITC on railway travelling expenses for conducting -- -- 600 of audit of M/s T irupati Pvt. Ltd. [` 12,000] (3) ITC on services availed from another professional 3,600

firm at Mumbai [` 20,000]

Total ITC 450 450 4,200

Note: Read amount of GST ` 3,600 given against services availed from another professional firm at Mumbai

as given against IGST . However, it is also possible to assume the said amount of ` 3,600 as entirely the

amount of CGST (as given in question) or as ` 1,800 - CGST and SGST each.



46. JP Charitable Institution, an entity registered under Section 12AA of Income Tax Act, 1961 and registered in GST, has furnished you the following details with respect to the activities undertaken by it during the month of January, 2019. You are required to compute its taxable value of GST from the information given below, assuming that the rate of GST is 18%. Brief reasoning should be part of your answer.

Particulars Amount ( `̀̀̀)

Excluding GST

Membership fees received from members 10,00,000 Amount received for advancement of educational programs relating 4,00,000 to abandoned or orphaned or homeless children Amount received for renting of commercial property owned by Trust 5,00,000 Amount received for counselling of terminally ill person 3,50,000 Fees charged for Yoga Camp conducted by Trust 2,00,000 Amount received relating to preservation of forest & wildlife 6,00,000


Computation of value of taxable supply of J P Charitable Institution for the month of January, 2019

Particulars `̀̀̀

(i) Membership fees received from members 10,00,000 (ii) Amount received for advancement of educational programs relating Nil to abandoned/orphaned/homeless children (iii) Amount received for renting of commercial property owned by Trust 5,00,000 (iv) Amount received for counselling of terminally ill person Nil (v) Fee charged for Yoga Camp conducted by Trust Nil (vi) Amount received relating to preservation of Forest & Wildlife Nil

Taxable Value 15,00,000

� Charitable activities provided by an entity registered under section 12AA of the Income-tax Act, 1961 are exempt. Since JP Charitable Institution is registered under section 12AA of the Income-tax Act, 1961 and activities mentioned at points (ii), (iv), (v) and (vi) are included in charitable activities, the same are exempt.

� It has been logically assumed that the commercial property owned by the Charitable Trust is not within the precincts of a religious place meant for general public.

47. Mr. XYZ & Co., a firm of Chartered Accountants, issued invoice for services rendered to Mr. A on 7th

September, 2018. Determine the time of supply in the following independent cases:

(1) The provision of service was completed on 1st August, 2018. (2) The provision of service was completed on 14th August, 2018. (3) Mr. A made the payment on 3rd August, 2018 where provision of service was remaining to be

completed. (4) Mr. A made the payment on 15th September, 2018 where provision of service was remaining to be

completed. [ICAI EXAM CA INTER (OLD SYL) - NOV 2018 – 5 Marks]

Solution:

Time of supply will be: (A) if the invoice is issued within 30 days of supply of service,

date of invoice OR date of receipt of payment, whichever is earlier

(B) if the invoice is not issued within 30 days of supply of service,

date of provision of service OR date of receipt of payment, whichever is earlier



In accordance with aforesaid provisions, time of supply is:

1. 01.08.2018 since the invoice is not issued within 30 days of supply of service.

2. 07.09.2018 since the invoice is issued within 30 days of supply of service.

3. 03.08.2018 viz. earlier of 07.09.2018 or 03.08.2018

4. 07.09.2018 viz. earlier of 07.09.2018 or 15.09.2018 48. M/s Maheshwari Corporation Pvt. Ltd. is a supplier of goods and services at Bangalore, registered in

the State of Karnataka, having turnover of ` ` ` ` 200 lakhs in the last financial year. It has furnished the following information for the month of Dec, 2018.

Sr. No. Particulars Amount ( `̀̀̀) Excluding GST

1 Services provide by way of labour contract for repairing a 1,30,000 single residential unit otherwise than as a part of residential complex (It is an intra-State transaction.)

2 Intra-State sale of taxable goods including ` ` ` ` 50,000 2,50,000 received as advance in Oct, 2018. The invoice for the entire sale value is issued on 15th Dec, 2018 3 Goods transport services received from GTA, GTA is 1,80,000 paying tax @ 12 % (It is an inter-State transaction.) 4 Goods purchased from unregistered dealer on 20th Dec, 80,000

2018 (Inter-State purchases are worth ` ` ` ` 45,000 and balance purchases were intra-State).

Compute net GST liability (CGST, SGST, IGST as the case may be) of M/s Maheshwari Corporation Pvt. Ltd. for the month of Dec, 2018 assuming the rates of GST, unless otherwise specified, as under: CGST – 9%, SGST – 9%, IGST – 18%

[ICAI EXAM CA INTER (OLD SYL) - NOV 2018 – 5 Marks]

Solution: Computation of net GST liability of M/s Maheshwari Corporation Pvt. Ltd.

Particulars Value of Supply

CGST SGST IGST

Services provided by way of labour contracts for repairing a single residential unit otherwise than as a part of residentialc omplex [Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex are exempt. Labour contracts for repairing are thus, taxable.]

1,30,000 11,700 11,700 -

Intra State sale of taxable goods [Time of supply of goods is the time of issue of invoice. So, advance received in Oct, 2018 will also be taxed in dec, 2018]

2,50,000 22,500 22,500

Goods purchased from unregistered dealer on 20th Dec, 2018 [All intra-State and inter-State procurements made by a registered person from unregistered person have been exempted from reverse charge liability.]

Nil Nil Nil

Less: ITC of GST paid on GTA services received [Since GTA is paying tax @ 12%, tax is payable under

forward charge. Further, ITC of IGST (` 1,80,000× 12% = 21,600) paid on the same is available]

(21,600)

Net GST liability 12,600 34,200 Nil

As per order of utilization of ITC, ITC of IGST has been used to pay CGST as there is no IGST liability.



49. Harshgeet Pvt. Ltd., a registered supplier, is engaged in the manufacture of taxable goods. The company provides the following information pertaining to GST paid on the purchases made/input services availed by it during the month of July, 2018:

Sr. Particulars GST paid

No (1) Raw Material (to be received in September, 2018) 2,50,000 (2) Membership of a club availed for employees working in the factory 1,45,000 (3) Inputs to be received in 5 lots, out of which 3rd lot was received 80,000 during the month (4) Trucks used for transport of raw material 40,000 (5) Capital goods (out of 3 items, invoice for 2 items is missing and 1,50,000

GST paid on that item is ` ` ` ` 80,000)

Determine the amount of tax credit available with Harshgeet Pvt. Ltd. for the month of July, 2018 by giving the necessary explanation for treatment of various items. All the conditions necessary for availing the ITC have been fulfilled.


Computation of ITC available with Harshgeet Pvt. Ltd. for the month of July, 2018

Particulars `̀̀̀

Raw Material Nil [ITC not available as raw material is not received in July, 2018] Membership of a club availed for employees working in the factory Nil [Blocked credit in terms of section 17(5) of the CGST Act, 2017] Inputs to be received in 5 lots, out of which 3rd lot was received during the month Nil [In case of goods received in lots, ITC can be taken only upon receipt of the last lot] Trucks used for transport of raw material 40,000 [ITC of GST paid on motor vehicles is allowed only when used, inter alia, for transportation of goods in terms of section 17(5) of the CGST Act, 2017]

Capital goods 70,000 [ITC of GST paid on items for which invoice is missing is not available. So,

ITC of ` 80,000 is not available]

Total ITC available 1,10,000

50. i. There is a dairy farm selling milk and milk products in Delhi. The turnover of his dairy farm is as

below Milk (Exempted) : ` ` ` ` 19,90,000

Butter (Taxable) : ` ` ` ` 50,000

What is the registration liability under GST for the above mentioned person assuming he has same PAN?

ii. Amit, a taxable person, is operating in Tamilnadu, Punjab and West Bengal, with the same PAN. Can he operate with a single registration in West Bengal?


Solution:

(i) Every supplier becomes liable to registration if his aggregate turnover in a financial year exceeds ` 20

lakh in a State/UT [` 10 lakh in case of Special Category States other than Jammu and Kashmir].

Further, aggregate turnover, inter alia, means the aggregate value of all taxable supplies as well as exempt supplies. = ` 19,90,000 + ` 50,000

= ` 20,40,000

Since aggregate turnover of the dairy farm in Delhi exceeds ` 20 lakh, it is liable to get registered.



(ii) No, Amit Cannot operate with a single registration in West Bengal if he is making taxable supplies from Tamilnadu and Punjab also. Every person who is liable to take a registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.

However, if he is not making taxable supplies from Tamilnadu and Punjab, he can operate with a single registration in West Bengal.

51. Mr. X is running a consulting firm and also a readymade garment showroom in Kolkata registered in

same PAN. Turnover of the showroom is ` ` ` ` 70 lakh and receipt of consultancy firm is ` ` ` ` 15 lakh in the preceding financial year. You are required to answer the following:

(1) Is Mr. X eligible for composition scheme? (2) Is it possible for Mr. X to opt for composition scheme only for showroom?


A registered person, whose aggregate turnover in the preceding financial year did not exceed ` 1 crore in a

State/UT [` 75 lakh in case of Special Category States except Jammu and Kashmir and Uttarakhand], may opt for composition scheme.

However, he shall not be eligible to opt for composition scheme if, inter alia, he is engaged in the supply of services other than restaurant services. 1. In the given case, since Mr. X is engaged in the supply of consultancy service, he is not eligible to opt for

composition scheme irrespective of its turnover in the preceding financial year. 2. No, it is not possible for Mr. X to opt for composition scheme only for showroom as all the registrations

under the same PAN have to opt for composition scheme and since the supply of consultancy service is ineligible for composition scheme, supply of readymade garments too becomes ineligible for composition scheme.

52. Differentiate between direct and indirect taxes (Give any two points)


Solution: 1. In case of direct taxes, the person paying the tax to the Government direc tly bears the incidence of the

tax whereas in case of indirect taxes, the person paying the tax to the Government collects the same from the ultimate consumer, i.e. incidence of tax is shifted to the other person.

2. Direct taxes are progressive in nature - high rate of taxes for people having higher ability to pay. However, indirect taxes are regressive in nature - All the consumers equally bear the burden, irrespective of their ability to pay.

53. Can a person get himself voluntarily registered though he may not be liable to pay GST?


Yes. a person, though not liable to be registered under sections 22 or 24 of CGST Act, 2017 may get himself registered voluntarily. Once a person obtains voluntary registration, he has to pay tax even though his aggregate turnover does not exceed ` 20 Lakhs / ` 10 Lakhs.

54. What kinds of invoice details of outward supplies are required to be furnished in GSTR-1 for outward

supplies? [ICAI EXAM CA INTER (OLD SYL) - NOV 2018 – 5 Marks]

Solution:

The invoice details of outward supplies required to be furnished in GSTR-1 are - name of Buyer, GSTN of buyer, invoice no., date, value, taxable value, rate of tax, amount of tax, HSN code in respect of supply of goods, accounting code in respect of supply of services and place of supply.

Further, following invoice details of outward supplies are required to be furnished invoice-wise in GSTR-1 – (i) intra-State supplies made to the registered persons (ii) inter-State supplies made to the registered persons; (iii) inter-State supplies made to unregistered persons with invoice value exceeding ` 2,50,000



Note: The question may be answered either on the basis of invoice details of outward supplies required to be furnished in GSTR-1 or on the basis of invoice details of outward supplies required to be furnished invoice-wise in GSTR-1.

55. Discuss the provisions relating to issuance of credit notes and debit notes under CGST Act and rules there under.


Credit note is required to be issued:-

(i) if taxable value charged in the tax invoice is found to exceed the taxable value in respect of supply of goods and/or services, or

(ii) if tax charged in the tax invoice is found to exceed the tax payable in respect of supply of goods and/or

services, or

(iii) if goods supplied are returned by the recipient, or (iv) if goods and/or services supplied are found to be deficient.

Debit note is required to be issued

(i) if taxable value charged in the tax invoice is found to be less than the taxable value in respect of supply of

goods and/or services or (ii) if tax charged in the tax invoice is found to be less than the tax payable in respect of supply of goods

and/or services

56. State whether the following supplies would be treated as supply of goods or supply of services as per Schedule II of CGST Act:

i. Renting of immovable property

ii. Transfer of right in goods without transfer of title in goods. iii. Works contract services iv. Temporary transfer of permitting use or enjoyment of any intellectual property right v. Sale of personal car to dealer.


Solution: (i) Renting of immovable property would be treated as supply of services in terms of Schedule-II of CGST

Act, 2017. (ii) As per Schedule-II of CGST Act, 2017, transfer of right in goods without transfer of title in goods would be

treated as supply of services. (iii) As per Schedule-II of CGST Act, 2017, works contract services would be treated as supply of services. (iv) As per Schedule-II of CGST Act, 2017, temporary transfer of permitting use or enjoyment of any

intellectual property right would be treated as supply of services. (v) As per Schedule-II of CGST Act, 2017, sale of personal car to dealer would be treated as supply of goods

as any transfer of the title in goods is a supply of goods. However, it is also possible to take view that sale of personal car to dealer is not a supply per se as supply is not made by the individual in the course or furtherance of business.

Note: The question may be answered on the basis of either of the two views.



57. Insight Ltd. is operating in West Bengal. The tax liability for the month of August, 2018 is as follows :

Sl. No. Tax liability West Bengal (`̀̀̀)

1 Output CGST payable 24,000

2 Output SGST payable 9,000

3 Output IGST payable 3,000

4 Input CGST 7,000

5 Input SGST 14,000

6 Input IGST 12,000

Calculate tax payable and carry forward for the month of August, 2018. [ICAI EXAM CA INTER (OLD SYL) - NOV 2018 – 3 Marks]

Solution:

Computation of net tax payable and carry forward for the month of August, 2018

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

Output tax payable 24,000 9,000 3,000

Less: Input tax credit [Refer note below] (7,000)-CGST (14,000)-SGST (3,000)-IGST

(9,000)-IGST

Net GST payable 8,000 -5000

Nil Nil

Note: IT C of IGST has been used to pay IGST and CGST in that order. Further, IT C of SGST cannot be utilised towards payment of CGST .

58. M/s Software Limited reduced the amount of ` ` ` ` 2,00,000 from the output tax liability in contravention of

provisions of section 42(10) of the CGST Act, 2017 in the month of December 2018, which is ineligible credit. A show cause notice was issued by the Tax Department to pay tax along with interest. M/s Software Limited paid the tax and interest on 31st March, 2019. Calculate interest liability (Ignore penalty).


A taxable person who makes an undue or excess claim of input tax credit shall pay interest @ 24% p.a. on such undue or excess claim. The period of interest will be from the date following the due date of payment to the actual date of payment of tax.

Due date of payment is 20th January, 2019. Period for which interest is due = 21st January, 2019 to 31st March, 2019 =70 days

Thus, interest liability = ` 2,00,000 x 24% x 70/365 =` 9,205 (approx.)

59. The aggregate turnover of Vikas Enterprise of Mumbai (Maharashtra) has exceeded ` ` ` ` 20 lakh on 25th January, 2019. It submits the application for registration on 15th February, 2019. Registration certificate is granted on 20th February, 2019. Determine the effective date of registration under CGST Act, 2017.


Solution:

A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT [Rs10 lakh in Special

Category States except Jammu and Kashmir] is liable to apply for registration within 30 days from the date of becoming liable to registration.

Where the application is submitted within said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration. Since Vikas Enterprise applied for registration within 30 days of becoming liable to registration, the effective date of registration is 25th January, 2019.



60. Mr. Nimit, a supplier of goods, pays GST under regular scheme. He is not eligible for any threshold exemption. He has made the following outward taxable supplies in the month of August, 2018 :-

`̀̀̀ Intra state supplies of goods 6,00,000 Inter state supplies of goods 2,00,000

He has also furnished following information in respect of purchases made by him from registered dealers during August, 2018:-

`̀̀̀ Intra state purchase of goods 4,00,000 Inter state purchase of goods 50,000

Balance of ITC available at the beginning of the August 2018:-

`̀̀̀ CGST 15,000 SGST 35,000 IGST 20,000

Note:

(i) Rate of CGST, SGST and IGST to be 9 %, 9% and 18% respectively, on both inward and outward

supplies.

(ii) Both inward and outward supplies given above are exclusive of taxes, wherever applicable.

(iii) All the conditions necessary for availing the ITC have been fulfilled.

Compute the net GST payable by Mr. Nimit for the month of August, 2018

[ICAI EXAM CA INTER - MAY 2018 – 6 Marks]

Solution: Computation of net GST payable by Mr. Nimit for the month of August, 2018

S.No. Particulars (`̀̀̀) GST (`̀̀̀)

(i) Intra-State supply of goods

CGST@9%on ` 6,00,000 54,000

SGST@9% on ` 6,00,000 54,000 1,08,000 (ii) Inter-State supply of goods IGST@18%onRs2,00,000 36,000

Computation of Total ITC

Particulars CGST @ 9% SGST @ 9% IGST @18%

Opening ITC 15,000 35,000 20,000 Add: ITC on Intra-State purchases of 36,000 36,000 Goods valuing ` 4,00,000

Add: ITC on Inter-State purchases of 9,000

Goods valuing ` 50,000

Total ITC 51,000 71,000 29,000

Computation of Net GST Payable

Particulars CGST @ 9% SGST @ 9% IGST @ 18%

GST payable 54,000 54,000 36,000 Less: ITC (51,000)CGST (54,000)SGST (29,000)IGST (7,000)-SGST Net GST payable 3,000 Nil Nil

Note: ITC of SGST has been used to pay SGST and IGST in that order.



61. [VALUE] - Shri Krishna Pvt. Ltd., a registered dealer, furnishes the following information relating to goods sold by it to Shri Balram Pvt. Ltd. in the course of Intra State.


(i) Price of the goods 1,00,000

(ii) Municipal Tax 2,000

(iii) Inspection charges 15,000

(iv) Subsidies received from Shri Ram Trust 50,000

(As the products is going to be used by blind association) (v) Late fees for delayed payment.

(Though Shri Balram Pvt. Ltd. made late payment but these 1,000 charges are waived by Shri Krishna Pvt. Ltd.)

(vi) Shri Balram Pvt. Ltd. paid to Radhe Pvt. Ltd. (on behalf of Shri 2,000

Krishna Pvt. Ltd.) weightment charges.

According to GST Law, determine the value of taxable supply made by Shri Krishna Pvt. Ltd. Items given in Point (ii) to (vi) are not considered while arriving at the price of the goods given in point no. (i).


Solution: Computation of value of taxable supply made by Shri Krishna Pvt. Ltd.

Particulars ` ` ` `

Price of the goods 1,00,000 Municipal tax 2,000 [Includible in the value as per section 15 of the CGST Act, 2017] Inspection charges 15,000 [Being incidental expenses, the same are includible in the value as per section 15 of the CGST Act, 2017] Subsidy received from Shri Ram Trust 50,000 [Since subsidy is received from a non-Government body, the same is includible in the value in terms of section 15 of the CGST Act, 2017] Late fees for delayed payment [Not includible since waived off] Nil Weighment charges paid to Radhe Pvt. Ltd. by Shri Balram Pvt. Ltd. on 2,000 behalf of Shri Krishna Pvt. Ltd. [Liability of the supplier being discharged by the recipient, is includible

in the value in terms of section 15 of the CGST Act, 2017]


62. M/s. Pradyumn Corporation Pvt. Ltd., a registered dealer of Mumbai furnishes you following

information for the month of February, 2019.

Particulars Amount

(i) Intra state sale of Taxable goods (out of above ` ` ` ` 50,000 was received as advance

in January, 2019) 2,00,000 (ii) Goods purchased from unregistered dealer (purchase on 20th Feb, 2019)

(10,000 in case of Inter State & Balance Intra-State) 50,000 (iii) Received for services by way of labour contracts for repairing a single residential

unit otherwise than as a part of residential complex (It is Intra-State transaction) 50,000 (iv) Professional fees paid to Ms. Udadhi located in a non-taxable territory

(It amounts to Inter State transaction) 50,000

Compute GST liability (CGST, SGST or IGST, as the case may be) of M/s Pradyumn Corporation Pvt. Ltd. for the month of Feb, 2019.

Assume the rates of GST as under:

CGST 9% SGST 9% lGST 18%

Note: Turnover of M/s. Pradyumn Corporation Pvt. Ltd. was ` ` ` ` 2 crore in the previous financial year. [ICAI EXAM CA INTER - MAY 2018 – 5 Marks]



Solution: Computation of GST liability of M/s. Pradyumn Corporation Pvt. Ltd. for the month of Feb, 2019

Particulars Value of Supply CGST SGST IGST

Intra State sale of taxable goods [Note-1]

Goods purchased from unregistered dealer on 20th Feb, 2019 [Note-2] Receipt for services rendered by way of labour contracts for repairing a single residential unit otherwise than as a part of residential complex [Note-3] Professional fees paid to Ms. Udadhi located in a non-taxable territory [Note-4]

2,00,000

Nil

50,000

50,000

18,000

Nil

4,500

18,000

Nil

4,500

9,000

Total GST liability for the month of Feb, 2019

22,500 22,500 9,000

Notes:

1. Section 12 of CGST Act, 2017 read with Notification No. 66/2017 CT dated 15.11.2017 provides that

the time of supply for all suppliers of goods (excluding composition suppliers) is the time of issue of

invoice, without any turnover limit. [Time of Supply Chapter]

Thus, liability to pay tax on the advance received in January, 2019 will also arise in the month of

February, when the invoice for the supply is issued. [Any advance against Goods is now not

taxable in the month of receipt]

2. All intra-State and inter-State procurements made by a registered person from unregistered person have

been exempted from reverse charge liability, without any upper limit for daily procurements upto

30.09.2019.

3. Services by way of pure labour contracts of construction, erection, commissioning, or installation of

original works pertaining to a single residential unit otherwise than as a part of a residential complex are

exempt. Labour contracts for repairing are thus, taxable.

4. In case of service supplied by a person located in a non -taxable territory to a person other than non-

taxable online recipient, GST is payable under reverse charge by such recipient.

63. List the activities to be treated as supply under CGST Act, 2017 even if made without consideration.

[ICAI EXAM CA INTER - MAY 2018 – 5 Marks] Solution: Activities to be treated as supply even if made without consideration in terms of section 7 of CGST

Act, 2017 read with Schedule I:-

1. Permanent transfer or disposal of business assets where input tax credit has been availed on such

assets.

2. Supply of goods or services or both between related persons or between distinct persons as specified in

section 25 of the CGST Act, 2017, when made in the course or furtherance of business.

However, gifts not exceeding ` 50,000 in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

3. Supply of goods —

(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the

principal; or

(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the

principal.

4. Import of services by a taxable person from a related person or from any of his other establishments

outside India, in the course or furtherance of business.



64. On 4th September, 2018, V.R. Mehman a famous music composer, received ` ` ` ` 3 crore of On 4th

September, 2018, V.R. Mehman a famous music composer, received ` ` ` ` 3 crore of consideration from Zilmil Music Co. Ltd. for sale of copyright of his original music album. He finished his work & made available the CD to the music company on 20th July, 2018 & raised the invoice on 24th July, 2018. What will be the time of supply as per CGST Act, 2017?

Note: Above service is taxable under reverse charge basis.

ICAI EXAM CA INTER - MAY 2018 – 3 Marks] Solution: As per section 13 of CGST Act, 2017, the time of supply of service on which GST is payable on reverse

charge basis is earlier of the following:

� Date of payment (04.09.2018), or

� Date immediately following 60 days since issue of invoice by the supplier (23.09.2018)

Thus, time of supply of services is 04.09.2018

65. State, with reason, person liable to pay GST in each of following independent cases. Assume recipient is located in taxable territory.

(i) Rental income received by Tamil Nadu State Government from renting an immovable property to

Mannappa Pvt. Ltd. (Turnover of the company was ` ` ` ` 22 lakhs in the preceding F. Y.) registered

under CGST Act 2017.

(ii) Legal Fees received by Mr. Sushrut, a senior advocate, from M/s. Tatva Trading Company having

turnover of ` ` ` ` 50 lakhs in preceding F. Y.


Solution: (i) Notification No. 12/2017 CT (R) dated 28.06.2017 has inter alia exempted the services provided by the

State Government to a business entity with an aggregate turnover of up to ` 20 lakh (` 10 lakh in case of

a Special Category States) in the preceding FY. However, the same shall not apply to services by way

of renting of immovable property.

In the given case, services by way of renting of immovable property is provided by Tamil Nadu Government to Mannappa Pvt. Ltd.. Thus, GST is payable in the given case. Notification No. 13/2017 CT (R) dated 28.06.2017 as amended inter alia provides that reverse charge is applicable in case of services supplied by the State Government by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017. Thus, GST is payable by Mannappa Pvt. Ltd., being a registered person in the present case.

(ii) GST on legal services supplied by a senior advocate [Mr. Sushrut] to any business entity [M/s. Tatva

Trading Company] located in the taxable territory is payable on reverse charge basis.

Therefore, in the given case, person liable to pay GST is the recipient of services, i.e., M/s. Tatva Trading Company.

66. Bharat Associates Pvt. Ltd. purchased machinery worth ` ` ` ` 9,00,000 (excluding GST) on 20-07-2018 on

which it paid GST @ 18% and availed the ITC. On 05-03-2019, it sold the machinery for ` ` ` ` 7,00,000 (excluding GST) to Hindustan Associates Pvt. Ltd. The GST rate on sale is 18%. What will be the course of action for Bharat Associates Pvt. Ltd. to follow under CGST Act, 2017?




Solution: If capital goods or plant and machinery on which input tax credit (ITC) has been taken are supplied

outward by a registered person, he must pay an amount that is higher of the following:

(a) ITC taken on such goods reduced by 5% per quarter of a year or part thereof from the date of issue of

invoice for such goods or


Accordingly, the amount payable on supply of machinery by Bharat Associates Pvt. Ltd. shall be computed as follows:

Particulars ` ` ` `

ITC taken on the machinery (` 9,00,000 × 18%) 1,62,000

Less: ITC pertaining to the period of usage of the capital goods 24,300

= (` 1,62,000 × 5%) × 3 quarters

Amount of reduced ITC based on percentage points (A) 1,37,700

Duty leviable on transaction value (` 7,00,000 × 18%) (B) 1,26,000

Amount payable towards disposal of machinery is higher of (A) and (B) 1,37,700

Note (whatsapp for PDF at 9953006445): In the above solution, amount of ITC to be paid (amount of reduced ITC based on percentage points) has been computed on the basis of provisions of rule 40(2) of the CGST Rules, 2017 [ITC reduced by 5% for every quarter or part thereof from the date of the issue of invoice].

67. Under what circumstances does the need of issuance of debit note and credit note arise under section 34 of CGST Act, 2017?

[ICAI EXAM CA INTER - MAY 2018 – 5 Marks] Solution: Debit note is required to be issued

(i) if taxable value charged in the tax invoice is found to be less than the taxable value in respect of supply of

goods and/or services or

(ii) if tax charged in the tax invoice is found to be less than the tax payable in respect of supply of goods

and/or services

Credit note is required to be issued:- (i) If taxable value charged in the tax invoice is found to exceed the taxable value in respect of supply of

goods and/or services, or

(ii) If tax charged in the tax invoice is found to exceed the tax payable in respect of supply of goods and/or

services, or

(iii) if goods supplied are returned by the recipient, or

(iv) if goods and/or services supplied are found to be deficient.

68. What is CIN?

[ICAI EXAM CA INTER - MAY 2018] Solution:

CIN is Challan Identification Number. It is generated by the banks indicating that the payment has been

realized and credited to the appropriate government account against a generated challan.



69. When is interest payable? [ICAI EXAM CA INTER - MAY 2018]

Solution: Interest is payable in the following cases in terms of section 50 of CGST Act, 2017:-

� Delay / failure to pay tax, in full or in part within the prescribed period

� undue or excess claim of input tax credit

� undue or excess reduction in output tax liability.

70. How does the new payment system benefit the taxpayer & the Commercial Tax Department?

[ICAI EXAM CA INTER - MAY 2018] Solution:

The new payment system benefits the taxpayer and the commercial tax department in the

following ways:

Benefits to Taxpayer: -

� No more queues and waiting for making payments as payments can be made online 24 X 7.

� Electronically generated challan from GSTN common portal in all modes of payment and no use of

manually prepared challan. Paperless transactions.

� Instant online receipts for payments made online.

� Tax consultants can make payments on behalf of the clients.

� Single challan form to be created online, replacing the three or four copy Challan.

� Greater transparency.

� Online payments made after 8 pm will be credited to the taxpayer’s account on the same day.

Benefits to the Commercial Tax Department:-

� Revenue will come earlier into the Government Treasury as compared to the old system.

� Logical tax collection data in electronic format.

� Speedy accounting and reporting.

� Electronic reconciliation of all receipts.

� Warehousing of digital challan.

Note: Any two points each may be mentioned for Taxpayer and Commercial Tax Department.

71. Determine the effective date of registration under CGST Act, 2017 in respect of the following cases with explanation:

(i) The aggregate turnover of Varun Industries of Mumbai has exceeded ` ` ` ` 20 lakhs on 1st

August,

2018. It submits the application for registration on 20th August, 2018. Registration certificate

granted on 25th

August, 2018.

(ii) Sweta InfoTech Services are the provider of internet services in Pune. The aggregate turnover of

them exceeds ` ` ` ` 20 lakhs on 25th September, 2018. It submits the application for registration on

27th October, 2018. Registration certificate is granted on 5th

November, 2018.


Solution:

A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT [` 10 lakh in Special

Category States except Jammu and Kashmir] is liable to apply for registration within 30 days from the date of

becoming liable to registration (i.e ., the date of crossing the threshold limit of ` 20 lakh/` 10 lakh) vide section

22 of CGST Act, 2017.

Where the application is submitted within said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration.

In the given cases, the applicable turnover limit for registration will be ` ` ` ` 20 lakh as Maharashtra (Mumbai and Pune) is not a Special Category State.

(i) Since Varun Industries applied for registration within 30 days of becoming liable to registration, the

effective date of registration is 1st August, 2018.

(ii) Since Sweta InfoTech Services applied for registration after the expiry of 30 days from the date of

becoming liable to registration, the effective date of registration is 5th November, 2018.



72. Chidanand Products Pvt. Ltd. started its business of supply of goods on 1st August, 2018. It's

turnover exceeds ` ` ` ` 20,00,000 on 5th September, 2018. It applied for registration on 28th September, 2018 & granted registration certificate on 6th October, 2018. Guide the company regarding invoices to be issued between 5th September, 2018 to 6th October, 2018 to registered dealers. Further it had also made supplies to unregistered dealers in that period. How it can raise invoices?


Solution:

A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT is liable to apply for

registration within 30 days from the date of becoming liable to registration (i.e, the date of crossing the

threshold limit of ` 20 lakh) vide section 22 of CGST Act, 2017.

Where the application is submitted within the said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration.

Every registered person who has been granted registration with effect from a date earlier than the date of issuance of registration certificate to him, may issue revised tax invoices in respect of taxable supplies effected during this period within 1 month from the date of issuance of registration certificate.

In view of the aforesaid provisions, Chidanand Products Pvt. Ltd may issue revised tax invoices against the invoices already issued during the period between effective date of registration (5th September, 2018) and the date of issuance of registration certificate (6th October, 2018), within 1 month from 6th October, 2018.

Further, Chidanand Products Pvt. Ltd may issue a consolidated revised tax invoice in respect of all taxable supplies made to unregistered dealers during such period. However, in case of inter-State supplies made to

unregistered dealers, a consolidated revised tax invoice cannot be issued if the value of a supply exceeds ` 2,50,000. SATC – SURAJ AGRAWAL TAX CLASS

73. State with reason whether following statement is true or false:

"When the change in constitution of business results in change in PAN, the business entity can apply for amendment of registration in prescribed manner within 15 days."


Solution: The said statement is FALSE.

When a change in constitution of a business results in change of PAN of the registered person, the said person shall apply for fresh registration. The reason for the same is that GSTIN is PAN based. Any change in PAN would warrant a new registration.

74. M/s. Ginny and John Company is a partnership firm of interior decorators and also running a

readymade garment showroom. Turnover of the showroom was ` ` ` ` 80 lakh and receipts of the interior

decorators service was ` ` ` ` 22 Lakh in the preceding financial year.

With reference to the provisions of the CGST Act, 2017, examine whether the firm can opt for the composition scheme?

Will your answer change, if the turnover of the showroom was ` ` ` ` 70 lakh and receipts of the interior

decorators service was ` ` ` ` 22 Lakh in the preceding financial year?

Also discuss whether it is possible for M/s. Ginny and John Company to opt for composition scheme only for showroom?


Solution:

A registered person, whose aggregate turnover in the preceding financial year did not exceed ` 1 crore [` 75

lakh in case of special category States except Jammu and Kashmir and Uttarakhand], may opt for

composition scheme vide section 10 of CGST Act, 2017.

However, he shall not be eligible to opt for composition scheme if, inter alia, he is engaged in the supply of services other than restaurant services.



In the given case, since M/s Ginny and John Company is engaged in supply of interior decorator’s service, it is not eligible to opt for composition scheme irrespective of its turnover in the preceding financial year.

Therefore, the answer will remain the same i.e., the company will not be eligible to opt for composition scheme even with the change in the turnovers as given in the second case.

Further, where more than one registered persons are having the same Permanent Account Number, the registered person shall not be eligible to opt for composition scheme unless all such registered persons opt to pay tax under composition scheme.

Therefore, the answer will not change in the third case also as all the registrations under the same PAN are required to opt for composition scheme and since the supply of interior decorator service is ineligible for composition scheme, supply of readymade garments too becomes ineligible for composition scheme.

75. Mrs. Pragati received legal advice for her personal problems & paid ` ` ` ` 1,000 pound as a legal fees to

Miss Unnati of U.K. (London). Explain whether the above activity of import of service would amount to supply u/s 7 of the CGST Act, 2017?

If in above case both of them are real sisters & no consideration is paid then will it change your answer?

Further in the above case if both of them are real sisters & Mrs. Pragati receives legal advice for her business & she doesn't pay any consideration then what will be your answer?


Solution: Supply, under section 7 of the CGST Act, 2017, inter alia,

� includes import of services for a consideration

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

Thus, although the import of service for consideration by Mrs. Pragati is not in course or furtherance of business, it would amount to supply.

Further, import of services by a taxable person from a related person located outside India, without consideration is treated as supply if it is provided in the course or furtherance of business.

In the given case, import of service without consideration by Mrs. Pragati from her real sister - Miss Unnati [real sister, being member of the same family, is a related person] will not be treated as supply as it is not in course or furtherance of business.

However, import of service without consideration by Mrs. Pragati from her sister - Miss Unnati (related person) will be treated as supply if she receives legal advice for her business, i.e. in course or furtherance of business.

76. Explain the provision relating to filing of Annual Return under Section 44 of CGST Act, 2017 and Rules

there under. [ICAI EXAM CA INTER - MAY 2018 – 6 Marks]

Solution:

Every registered person, other than

� an Input Service Distributor,

� a person deducting/collecting tax at source,

� a casual taxable person and

� a non-resident taxable person,

shall furnish an annual return for every financial year electronically in prescribed form on or before 31st December following the end of such financial year.



Every registered person who is required to get his accounts audited under section 35(5) of the CGST Act, 2017 shall furnish the annual return electronically along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and other prescribed particulars.

77. [PAYMENT OF TAX] - Mr. Ajay, a registered supplier of goods, pays GST under regular scheme and

provides the following information for the month of August 2018:

Particulars (`̀̀̀)

(i) Inter-state taxable supply of goods 10,00,000 (ii) Intra state taxable supply of goods 2,00,000 (iii) Intra state purchase of taxable goods 5,00,000

He has the following input tax credit at the beginning of August 2018:

Nature ITC Amount in (`̀̀̀) CGST 20,000 SGST 30,000 lGST 25,000

Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively. Both inward and outward supplies are exclusive of taxes wherever applicable. All the conditions necessary for availing the ITC have been fulfilled. Compute the net GST payable by Mr. Ajay for the month of August 2018.


Solution: Computation of net GST payable by Mr. Ajay for the month of August, 2018

Working of GST payable on Outward supplies

S.No. Particulars (`̀̀̀) GST (`̀̀̀)

(i) Intra-State taxable supply of goods

CGST @ 9% on ` 2,00,000 18,000

SGST @ 9% on ` 2,00,000 18,000 36,000

(ii) Inter-State taxable supply of goods

IGST @ 18% on ` 10,00,000 1,80,000

Computation of total ITC

Particulars CGST @ 9% SGST @ 9% IGST @

(`̀̀̀) (`̀̀̀) 18%(`̀̀̀)

Opening ITC 20,000 30,000 25,000

Add: ITC on Intra-State purchases of 45,000 45,000

taxable goods valuing ` 5,00,000

Total ITC 65,000 75,000 25,000

Computation of GST payable from cash ledger

Particulars CGST @ 9% (`̀̀̀) SGST @ 9% (`̀̀̀) IGST @ 18% (`̀̀̀)

GST payable 18,000 18,000 1,80,000

Less: ITC (18,000)-CGST (18,000)-SGST (25,000)-IGST

(47,000)-CGST

(57,000)-SGST

Net GST payable Nil Nil 51,000

Note: ITC of IGST, CGST & SGST have been used to pay IGST in that order.



78. [ITC] Fun Pharma Private Limited, a registered supplier is engaged in the manufacture of taxable goods. The company provides the following information of GST paid on the purchases made/input services availed by it during the month of September 2018:

Particulars GST paid ( `̀̀̀) (i) Purchase of cabs used for the transportation of its employees 3,30,000

(ii) Inputs consisting of three lots,out of which first lot was received during the month 1,25,000

(iii) Capital Goods (out of three items, invoice for one item was missing and GST

paid on that item was ` ` ` ` 25,000) 2,50,000 (iv) Outdoor catering service availed on Women's day 72,000

Determine the amount of input tax credit available with M/s Fun Pharma Private Limited for the month of September, 2018 by giving necessary explanations for treatment of various items. All the conditions necessary for availing the input tax credit have been fulfilled


Solution: Computation of input tax credit (ITC) available with Fun Pharma Private Limited for the month of September, 2018

Particulars `̀̀̀ Purchase of cabs used for the transportation of its employees [Note-1] Nil Inputs consisting of three lots, out of which first lot was received during themonth [Note-2] Nil Capital goods [Note-3] 2,25,000 Outdoor catering service availed on Women’s day [Note-4] Nil

Total ITC 2,25,000

Notes:-

1. Section 17 of CGST Act, 2017 provides that ITC on motor vehicles can be availed, inter alia, when

they are used for making the taxable supply of transportation of passengers i.e., if the taxable person is in the business of transport of passengers. In the given case, since the supplier is a manufacturer, it cannot avail credit on cabs used for transportation of its employees.

2. When inputs are received in instalments, ITC can be availed only on receipt of last instalment in terms of section 16 of CGST Act, 2017.

3. ITC cannot be taken on missing invoice. The registered person should have the invoice in its possession to claim ITC vide section 16 of CGST Act, 2017.

4. ITC on outdoor catering is specifically disallowed unless the same is used for making outward taxable supply of the same category or as an element of the taxable composite or mixed supply in terms of section 17 of CGST Act, 2017.

79. [VALUE] - Candy Blue Ltd., Mumbai, a registered supplier, is manufacturing Chocolates and Biscuits.

It provides the following details of taxable inter -state supply made by it for the month of October, 2018.

Particulars Amount in(`̀̀̀)

(i) List price of goods supplied inter-state 12,40,000 Items already adjusted in the price given in (i) above: (1) Subsidy from Central Government for supply of biscuits to Government School. 1,20,000 (2) Subsidy from Trade Association for supply of quality biscuits. 30,000 Items not adjusted in the price given in (i) above: (3) Tax levied by Municipal Authority 24,000 (4) Packing Charges 12,000 (5) Late fee paid by the recipient of supply for delayed payment of invoice 5,000

Calculate the value of taxable supply made by M/s Candy Blue Ltd. for the month of October, 2018.




Solution: Computation of value of taxable supply made by Candy Blue Ltd. for the month of October, 2018

Particulars `̀̀̀

List Price of the goods 12,40,000

Add: Subsidy amounting to ` ` ` ` 1,20,000 received from Central Government NIL

[Since subsidy is received from Government, the same is not includible in the value in terms of section 15 of the CGST Act, 2017.] Subsidy received from Trade Association [Since subsidy is 30,000 received from a non-Government body, the same is includible in the value in terms of section 15 of the CGST Act, 2017.] Tax levied by the Municipal Authority [Includible in the value as 24,000

per section 15 of the CGST Act, 2017] Packing charges [Being incidental expenses, the same are 12,000 includible in the value as per section 15 of the CGST Act, 2017] Late fees paid by recipient of supply for delayed payment

[Includible in the value as per section 15 of the CGST Act, 2017] 5,000


Note: In the above solution, list price of the goods and late fee for delayed payment of invoice have been assumed to be exclusive of taxes. UPDATED NOTES BY CA SURAJ AGRAWAL

80. Explain the meaning of the term "recipient of supply of goods and/or services" under the CGST Act,

2017. [ICAI EXAM CA INTER - MAY 2018 – 5 Marks]

Solution: Recipient of supply of goods or services or both, means —

(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to

pay that consideration;

(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and

(c) where no consideration is payable for the supply of a service, the person to whom the service is rendered,

and (i) any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply, and (ii) shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied.

81. [TIME OF SUPPLY] - M/s Mansh & Vansh Trading Company, a registered supplier, is liable to pay GST

under forward charge. Determine the time of supply from the following information furnished by it:

(i) Goods were supplied on 03-1-2019 (ii) Invoice was issued on 05-1-2019 (iii) Payment received on 09-1-2019


Solution:

Section 12 of CGST Act, 2017 read with Notification No. 66/2017 CT dated 15.11.2017 provides that the time of supply for all suppliers of goods (excluding composition suppliers) is the time of issue of invoice/Last date on which the invoice is required to be issued, without any turnover limit.

Further, a registered person is required to issue a tax invoice before or at the time of removal of goods for supply to the recipient.



Thus, in the given case, the invoice for supply of goods should have been issued on or before the removal of goods i.e., on 03-1-2019.

However, since the invoice has not been issued within the prescribed time, the time of supply will be the last date on which the invoice is required to be issued (03-1-2019) or date of receipt of payment (09-1-2019), whichever is earlier.

Thus, the time of supply of the goods will be 03-1-2019.

82. [EXEMPTION] - Examine whether GST is exempted on the following independent supply of services:

(i) Teja & Co, a tour operator, provides services to a foreign tourist for tour conducted in Jammu &

Kashmir and receives a sum of ` ` ` ` 3,00,000. (ii) Ms. Poorva acts as a Team Manager for Indian Sports League (ISL), a recognised sports body, for

a Tennis tournament organised by Multi brand retail company and received a remuneration of ` ` ` ` 2,00,000.


Solution:

(i) Services provided by a tour operator to a foreign tourist are exempt from GST provided such services are in relation to a tour conducted wholly outside India. Thus, since in the given case, services provided by Teja& Co. are in relation to a tour conducted within India, the same are not exempt from GST.

(ii) Services provided by a team manager to a recognised sports body for participation in a sporting event are exempt from GST provided said sporting event is organised by a recognized sports body. Thus, since in the given case, the sporting event is not organised by a recognised sports body, the services provided by Ms. Poorva are not exempt from GST.

83. [Composition Scheme] - M/s Sai Trading Company, an eligible registered dealer in goods making

intra-state supplies within the state of Andhra Pradesh, has reported an aggregate turnover of ` ` ` ` 78 Lakhs in the preceding financial year.

(i) Determine whether Sai Trading Company will be eligible for composition levy, as on 31-1-2019. (ii) Will your answer be different, if in the above scenario, M/s Sai Trading Company is making intra

state supply within the state of Jammu and Kashmir? [ICAI EXAM CA INTER - MAY 2018 – 3 Marks]

Solution: (i) Section 10 of CGST Act, 2017 provides that a registered person, whose aggregate turnover in the

preceding financial year did not exceed ` 1 crore may opt for composition scheme. The turnover limit is ` 75 lakh in case of Special Category States. However, for Jammu and Kashmir and Uttarakhand, the

turnover limit is ` 1 crore only.

In the given case, the applicable turnover limit for composition scheme will be ` 1 crore as Andhra Pradesh is not a Special Category State.

Further, since the aggregate turnover of the registered person in the given case does not exceed ` 1 crore and it satisfies other conditions of composition scheme namely, not making inter-State supplies of goods, it is eligible for composition levy.

(ii) Since the turnover limit for determining the eligibility for composition scheme in the State of Jammu and

Kashmir is also ` 1 crore, Sai Trading Company will be eligible for composition levy with other condition of

not making inter-State supplies of goods being fulfilled.



84. [Registration] - Determine the effective date of registration in the following instances:

(i) The aggregate turnover of Madhu Ltd., engaged in taxable supply of services in the state of

Punjab, exceeded ` ` ` ` 20 lakh on 25th August, 2018. It applies for registration on 19th September, 2018 and is granted registration certificate on 29th September, 2018.

(ii) What will be your answer, if in the above scenario, Madhu Ltd. submits the application for registration on 27th September, 2018 and is granted registration on 5

th October,2018?


Solution:

A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT [` 10 lakh in Special Category States except Jammu and Kashmir] is liable to apply for registration within 30 days from the date of becoming liable to registration (i.e., the date of crossing the threshold limit of ` 20 lakh/` 10 lakh).

Where the application is submitted within the said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration.

In the given case, the applicable turnover limit for registration will be ` ` ` ` 20 lakh as Punjab is not a Special Category State.

(i) Since Madhu Ltd. applied for registration within 30 days of becoming liable to registration, the effective

date of registration is 25th August, 2018. (ii) In this case, since Madhu Ltd. applies for registration after the expiry of 30 days from the date of

becoming liable to registration, the effective date of registration is 5th October, 2018. 85. [Tax Invoice] - Determine with reason whether the following statements are true or false:

(i) A registered person shall issue separate Invoices for taxable and exempted goods when supplying both taxable as well as exempted goods to an unregistered person.

(ii) A Non-banking financial company can issue a consolidated tax invoice at the end of every month

for the supply made during that month. [ICAI EXAM CA INTER - MAY 2018 – 3 Marks]

Solution: (i) The given statement is false.

Where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice -cum-bill of supply” may be issued for all such supplies.

(ii) The said statement is true.

By virtue of an amendment, a non-banking financial company has been allowed to issue a consolidated tax invoice or any other document in lieu thereof for the supply of services made during a month at the end of the month.

86. [Introduction] - List any six state levies, which are subsumed in GST.


Solution: The State levies which are subsumed in GST are as under: -

� State surcharges and cesses in so far as they relate to supply of goods & services

� Entertainment Tax (except those levied by local bodies)

� Tax on lottery, betting and gambling

� Entry Tax (All Forms) & Purchase Tax

� VAT/ Sales tax

� Luxury Tax

� Taxes on advertisements

Note: Any of the six points may be mentioned.



87. [Payment of Tax] - When shall the interest be payable by a registered person and what is the maximum rate of interest chargeable for the same?

[ICAI EXAM CA INTER - MAY 2018 – 5 Marks] Solution: Interest is payable in the following cases:-

� failure to pay tax, in full or in part within the prescribed period,

� undue or excess claim of input tax credit,

� undue or excess reduction in output tax liability.

The maximum rate of interest chargeable for the same is as under -

(a) 18% p.a. in case of failure to pay full/part tax within the prescribed period

(b) 24% p.a. in case of undue or excess claim of input tax credit or undue or excess reduction in output tax

liability. 88. [Registration] - List the inclusions and exclusions for computing the "Aggregate Turnover" under

CGST Act, 2017. [ICAI EXAM CA INTER - MAY 2018 – 5 Marks]

Solution: Aggregate turnover includes the aggregate value of all:

(i) taxable supplies, (ii) exempt supplies, (iii) exports of goods and/or services and (iv) inter-State supplies of persons having the same PAN , to be computed on all India basis

Aggregate turnover excludes: - (i) value of inward supplies on which tax is payable by a person on reverse charge basis, (ii) central tax, State tax, Union territory tax, integrated tax and (iii) cess

89. [RETURN] - Who is required to furnish Final Return under CGST Act, 2017 and what is the time limit for the same? Discuss.


Solution:

Every registered person who is required to furnish a return u/s 39(1) of the CGST Act, 2017 and whose registration has been surrendered or cancelled shall file a Final Return electronically in the prescribed form through the common portal.

Final Return has to be filed within 3 months of the:

(i) date of cancellation

or (ii) date of order of cancellation whichever is later.

90. M/s. ABC Ltd. provides the following relating to information technology software. Compute the value

of taxable service and GST liability (Rate of CGST 9% and SGST 9%)?

1. Development and Design of information technology software: ` ` ` ` 15 lakhs; 2. Sale of pre-packaged software, which is put on media: ` ` ` ` 52 lakhs.

[ICMAI RTP JUNE 2018] Solution:

(1) and (2) both are treated as supply of Service.

Value of Taxable supply of service is ` 67 Lakhs [i.e. ` 15 Lakhs + ` 52 Lakhs]

CGST is ` 6.03 lakhs [i.e. ` 67 Lakhs x 9%].

SGST is ` 6.03 lakhs [i.e. ` 67 Lakhs x 9%].



91.

(a) Mr. A registered person under GST located in Tamil Nadu, sold goods worth ` ` ` ` 10,000 after manufacture to Mr. C of Chennai (Intra State). Subsequently, Mr. C sold these goods to Mr. H of Hyderabad for ` ` ` ` 17,500 (Inter state). Mr. H being a trader finally sold these goods to customer Mr.

S of Secunderabad for ` ` ` ` 30,000 (Intra state). Applicable rates of CGST= 9%, SGST=9% and IGST=18%. Find the net tax liability of each supplier of goods and revenue to the government.

(b) Exchange is a form of supply of goods or services or both, made or agreed to be made for a consideration by a person in the course or furtherance of business. — Explain it with help of an example.

[ICMAI RTP JUNE 2018] Solution: (a) Since, Mr. A supplied goods to Mr. C in Tamil Nadu itself, it is an intra-state sale and both CGST @ 9%

and SGST @ 9% will apply.

Mr. C of Chennai supplied goods to Mr. H of Hyderabad. Since, it is an interstate sale, IGST@18% will apply.

Mr. H of Hyderabad (Telangana) supplied goods to Mr. S of Secunderabad (Telangana). Once again it is an intrastate sale and both CGST @ 9% and SGST @ 9% will apply.

Statement showing Net tax liability of Mr. A and revenue to Government:

Particulars

Value in

( `̀̀̀) CGST in (`̀̀̀) SGST in (`̀̀̀)

IGST

in ( `̀̀̀)

Mr. A to Mr. C 10,000 900 900 Nil

Less: ITC Nil Nil Nil Nil

Net liability of Mr. A 900 900 Nil

Revenue to Centre ` 900

Revenue to Tamil Nadu ` 900

Statement showing net tax liability of Mr. C and revenue to the Government

Particulars

Value in (`) CGST in (`) SGST in (`) IGST in (`) Remarks

Mr. C to Mr. H 17,500 Nil Nil 3,150

Less: ITC -900 -900 -1,800 1st CGST, 2nd SGST

Net liability of Mr. C Nil Nil 1,350

Since, Mr. C a dealer has used SGST of Tamil Nadu to the extent of ` ` ` ` 900/- in payment of IGST, Tamil

Nadu State (i.e. exporting State) has to transfer ` ` ` ` 900/- to the credit of the Centre.

Tamil Nadu (exporting state) revenue = Nil (i.e. ` ` ` ` 900 - ` ` ` ` 900)

Total revenue to the Centre = ` ` ` ` 3,150 (i.e. ` 1,350 + ` 900 received from Tamil Nadu + ` 900 CGST already collected from Mr. A in 1st Intra-State

supply)

Statement showing net tax liability of Mr. H and revenue to the Government

Particulars

Value in

(`)

CGST in

(`)

SGST in

(`)

IGST in

(`) Remarks

Mr. H to Mr. S 30,000 2,700 2,700 Nil

Less: ITC (2,700) (450) (3,150) IGST credit 1st adjust

against IGST, next CGST and next SGST

Net liability of Mr. H Nil 2,250 Nil

Since, Mr. H a dealer has used IGST of ` ` ` ` 450/- to pay the SGST of Telangana State, the Centre has to

transfer ` ` ` ` 450/- to the Telangana State (i.e. importing State).



Net revenue to the Telangana State = ` ` ` ` 2,700 (i.e. ` ` ` ` 2,250 + ` ` ` ` 450)

Net Revenue to the Centre = ` ` ` ` 2,700 (i.e. ` ` ` ` 3,125 – ` ` ` ` 450)

Total revenue to the Government = ` 5,400 (i.e. ` 30,000 x 18%)

(b) When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing nor both things being money only, the transaction is called an exchange.

Exchange offers on products such as televisions, mobile phones and refrigerators are leviable under GST.

Example: Mr. X is a dealer of new cars. He sells new cars for ` 8,25,000 agrees to reduce ` 1,25,000 on

surrendering of old car. Mr. Y who intends to buy new car worth ` 8,25,000 agreed to exchange his old car

with new car.

Under GST law, it will be treated as Mr. Y has made supply of old car to dealer Mr. X and Mr. X has made supply of new car to Mr. Y.

If Mr. Y is registered person, he will be liable to pay GST on ` ` ` ` 1,25,000. Mr. X will be liable to pay GST

on ` ` ` ` 8,25,000 whether Mr. Y is a registered person or not. 92. [SUPPLY] - M/s M Ltd. being a garment manufacturer appoints Mr. Ram as an agent, who stores

garments manufactured by M Ltd. and sends to dealers whenever M Ltd. asks Mr. Ram to do so. Is it a supply? Justify.


Yes. Transfer of garments from M Ltd. to Mr. Ram is taxable supply under GST. GST will be levied.

Note: Supply of goods by the principal to an agent or by the agent to principal will be considered as a supply even if without consideration as per exceptions covered in Schedule I. The said transactions are leviable under GST.

93. [COMPOSITON SCHEME] -

(a) Who are persons not entitled to avail Composition Scheme in GST?

(b) Hot Breads Pvt. Ltd is the supplier of bakery products registered in the current financial year

(2018-19) w.e.f. 1st Jan 2019. In the month of Jan 2019 total taxable supplies ` ` ` ` 88 lakhs. Answer the following: (i) Is the company eligible for Composition Scheme? (ii) If so company wants to pay tax @1% being a trader. However, the Deputy Commissioner of

Central Tax contended that the assessee is liable to pay tax @5% under the Food and Restaurant Services category? Advise.

[ICMAI RTP JUNE 2018]

Solution: (a) The Section 10(2) of the CGST Act, 2017 specifies the benefit of composition scheme shall not be

granted if a taxable person is: 1. engaged in the supply of services (other than restaurant and outdoor catering service); 2. engaged in making any supply of goods which are not leviable to tax under this Act; 3. engaged in making any inter-State outward supplies of goods;

4. engaged in making any supply of goods through an electronic commerce operator who is required to

collect tax at source under section 52; and

5. a manufacturer of such goods as may be notified by the Government on the recommendations of the Council.

(b)

(i) Hot Breads Pvt. Ltd. is eligible for composition levy in the current year.



(ii) The supply of food and restaurant services category is the only service included under the composition scheme. For a business to be categorised as food and restaurant services, there needs to be an element of service involved.

In the given case, supply of bakery products, there is only a supply of goods i.e. food items

but there is no element of supply of service.

Hence supply of bakery products is eligible to pay GST @1%, under the Traders category and not

Food and Restaurant Services category. Therefore, department‘s contention is not correct.

94. [Composition Scheme] - Mr. H registered in Hyderabad, who is selling goods from Telangana to Tamil

Nadu. Turnover of Mr. H is ` ` ` ` 73 lakhs in the preceding financial year. Whether Mr. H is eligible for Composition? Whether your answer will change if Mr. H is making purchase from Tamil Nadu and selling goods in Telangana?


Mr. H is not eligible for composition as he is making interstate outward supply.

If Mr. H is making purchase from Tamil Nadu then he is eligible for composition scheme as there is

restriction on outward interstate supply not on inward interstate supply.

95. [EXEMPTION] -

(a) M/s X Ltd. paid penalty under section 49 of the CGST Act, 2017 ` ` ` ` 20,00,000 to the Government Department in the month of Oct 2018. Is it taxable supply under the GST law? Give reason.

(b) X Ltd. covered under the Factories Act, 1948. Inspector of Factories certified the factory is safe for

the workers to carry their work and charged Government fee of ` ` ` ` 10,000.

X Ltd. owned one more factory at another place, which is not covered under Factories Act, 1948.

However, X Ltd. obtained safety certificate for the factory from the Inspector of Factories by

paying ` ` ` ` 15,000 voluntarily.

Is it taxable supply? Attract GST? If so who is liable to pay GST.

Applicable rate of GST 18%.


Solution:

(a) It is not a supply of service. The fine or penalty chargeable by Government or local authority imposed for violation of statute, bye-laws, rules or regulations are not leviable to GST. Such fines or penalty are not recovered for tolerating non-performance of a contract.

(b) X Ltd. being recipient of service from the Inspector of Factories is not liable to pay GST. Since,

certification relating safety of workers required under the Factories Act, 1948 covered under Exemption

Notification. Another factory which is not covered under Factories Act, 1948 for which fee paid by X Ltd.

voluntarily is liable to pay GST under reverse charge mechanism.

CGST 9% on ` ` ` ` 15,000 = ` ` ` ` 1,350 , SGST 9% on ` ` ` ` 15,000 = ` ` ` ` 1,350.



96. [EXEMPTION] - A Ltd., becomes the successful bidder. The spectrum is assigned to A Ltd., for a total

consideration of ` ` ` ` 1000 crores in the month of June 2015.

Government permitted to pay as one time charge payable, in full upfront or in instalments as the

case may be.

A Ltd., chooses to make in installments over a period of 5 years. Installment due fallen on or after

1st July 2017 is leviable to GST?

Whether your answer is different if periodic payment required to be made by the assignee. [ICMAI RTP JUNE 2018]

Solution:

The exemption under Notification No. 12/2017- Central Tax (Rate) Dt 28-06-2017 shall apply only to

one time charge, payable in full upfront or in installments, for assignment of right to use any natural

resource. Hence, A Ltd., is not liable to pay GST.

The exemption shall not applicable to any periodic payment required to be made by the assignee.

GST is payable on periodic payments due after 1.7.2017 in respect of spectrum assigned before 1.4.2016. GST is liable to pay by A Ltd. Reverse charge mechanism will be applicable.

97. [EXEMPTION] - Find the taxability for the following independent cases:

1) Packing of pulses in retail packs for ` ` ` ` 42,000.

2) Packing of tomato ketchup for ` ` ` ` 54,000

3) Commission on sale of rice for ` ` ` ` 10,125.

4) Storage of rice flour in the warehouse for ` ` ` ` 12,000. [ICMAI RTP JUNE 2018]

Solution:

1. taxable supply of services 2. taxable supply of services 3. taxable supply of services 4. taxable supply of services.

98. [EXEMPTION] -

(a) Discuss whether GST is leviable in respect of transportation services provided by Raja Ram Goods Transport Agency in each of the following independent cases: Customer Nature of service provided Amount

charged

(`̀̀̀)

A Transportation of milk 22,00,000

B Transportation of books on a consignment transported in a single goods carriage 1,30,000

C Transportation of chairs for a single consignee in the goods carriage 600

Note: Raja Ram Goods Transport Agency registered person under GST Law and opted to pay CGST 6% and SGST @6%.

(b) Clean and Green Pvt. Ltd. provided the bio-medical waste treatment facility to a veterinary clinic. Is it a taxable supply of service? If so, will GST be levied?




Solution: (a) Statement showing GST liability of Raja Ram Goods Transport Agency: Nature of Service Taxable supply Remarks

(`)

Transportation of milk Nil Exempted supply.

Transportation of books on a consignment transported in a single goods carriage. 1,30,000 Taxable supply

Transportation of chairs for a single consignee in the goods

carriage. Nil Freight ` 600 is

exempted from GST

Total taxable supply 1,30,000

CGST 6% on ` 1,30,000 7,800

SGST 6% on ` 1,30,000 7,800

(b) It is taxable supply of service.

Scope of the exemption under entry 75 of notification no. 12/2017- Central Tax (Rate) is restricted to services provided by operators of the common Bio-medical Waste Treatment Facility to a clinical establishment and not to veterinary clinic.

99. State the time of supply for goods sent for approval. [ICMAI RTP JUNE 2018]

Solution:

Time of supply for goods sent for approval =

• Time when it becomes known that supply is taken place.

OR

• Six month from the date of removal.

Whichever is earlier. 100. Shopper‘s Stop store a large retailer who sells various types of products like readymade garment,

jewellery, cosmetics, fabrics, shoes etc., issued the voucher on 10-07-2018 to their prospective customer for enabling them to buy any product from their shop. Customer purchased readymade garments on 20th Aug 2018.Find the time of supply of goods?


Solution:

Time of supply of goods = 20-08-2018 Note: time of supply will be the date of encashment of voucher (i.e. Redemption of voucher). Since, the voucher is not identifiable with any specific product.

101. [VALUE OF SUPPLY] -

(a) Admission to True Theater is ` ` ` ` 90 per ticket for a Tamil Movie as well as for a Hindi Movie plus

entertainment tax ` ` ` ` 10% on Tamil Movie and 20% on other languages. In the month of November, True Theater sold 2000 tickets of Tamil Movie and 1500 tickets of Hindi Movie. Find the value of taxable supply of service. Applicable rate of GST is 18% (for Tamil movie tickets) & 28% (for Hindi movie tickets). Find the GST liability if any.

(b) The Government provides subsidy, for the benefit of farmers but it is given to the manufacturer of fertilizers. Will such subsidy form part of value of supply? Give reason.




Solution:

(a) Statement showing value of taxable supply of service and GST liability: Value of taxable services:

Tamil Movie ` 1,98,000 (` 99 x 2000 tickets)

Hindi Movie ` 1,62,000 (` 108 x 1500 tickets)

Particulars 9% CGST 9% SGST 14%CGST 14% SGST

GST liability (`) 17,820 17,820 22,680 22,680

Working note:

Particulars Tamil Movie (`̀̀̀) Hindi Movie (`̀̀̀)

Rate per ticket 90 90

Add: Entertainment tax 9 18

Value of taxable supply 99 108

Applicable GST rate 18% 28%

(b) The buyer of goods does not provide subsidy, but the Government as per the scheme provides it. Therefore, this will not form part of value of supply as it is specifically specified that such subsidy provided by the Government will not form part of the value of supply.

102. [VALUE OF SUPPLY] -

M/s Nambiar & Co., an Audit firm based in Cochin undertake an audit assignment of his client based

in Chennai. The Contract mentioned about the audit fees of ` ` ` ` 5,00,000 and arrangement of taxi by

the Client which may be worth ` ` ` ` 15,000. Find the transaction value on which M/s Nambiar and Co., is liable to pay GST.


Transaction value in the hands of M/s Nambiar & Co., is ` 5,15,000. Note: Not only audit fees but also the expenditure incurred in connection with the taxi ` ` ` ` 15,000 constitute the sole consideration.

103.

(a) What do you meant by zero rated supply? (b) [EXEMPTION] - Mr. X being a contractor undertaken construction work of an individual residential

unit otherwise than as part of a residential complex. You are required to Solution:

1. Whether Mr. X is liable to pay GST where he undertaken pure labour contract?

2. Whether Mr. X is liable to pay GST where he undertaken both labour and material contract? 3. Mr. X gives contract to a sub-contractor. Can sub-contractor also get exemption if it is pure

labour contract? [ICMAI RTP JUNE 2018]

Solution:

(a) Zero rated supply means any of the following supplies of goods or services or both, namely:— 1. export of goods or services or both; or

2. supply of goods or services or both to a Special Economic Zone (SEZ), developer of SEZ unit (As

referred under Section 16(1) of the IGST Act, 2017).

(b) As per Notification No. 12/2017 Central tax (rate) - Services by way of pure labour contracts of

construction, erection, commissioning, or installation of original works pertaining to a single

residential unit otherwise than as a part of a residential complex are exempt from GST.

1. Since, Mr. X under taken services by way of pure labour contracts of construction of single residential unit is exempt from GST.

2. If in case Mr. X providing service with both labor and material i.e. termed as works contract under GST & liable for GST

3. Yes. Services provided by a sub-contractor to a contractor are also exempt as he is providing labor for the construction of residential house.



104. [REGISTRATION] - (a) Mr. X a dealer dealing with Intra State supply of goods and services has place of business in India

furnished the following information in the financial year 2018-19: 1. Sale of taxable goods by Head Office located in Chennai for ` ` ` ` 1,00,000 2. Supply of taxable services by Branch office at Bengaluru for ` ` ` ` 50,000 3. Supply of goods exempted from GST ` ` ` ` 10,000 4. Supply of exempted services for ` ` ` ` 2,00,000 5. Sale of goods acting as agent on behalf of principal for ` ` ` ` 15,00,000.

Determine whether he is liable for registration?

(b) State the categories of persons who shall be required to be registered under GST. [ICMAI RTP JUNE 2018]

Solution:

Statement showing aggregate turnover in a Financial Year

Particulars Value in `̀̀̀

Sale of taxable goods by Head Office located in Chennai 1,00,000

Supply of taxable services by Branch office at Bengaluru 50,000

Supply of goods exempted from GST 10,000

Supply of exempted services 2,00,000

Sale of goods acting as agent on behalf of principal 15,00,000

Aggregate turnover 18,60,000

Since, aggregate turnover does not exceed ` ` ` ` 20 lakhs, Mr. X is not required to register under GST.

(b) The categories of persons who shall be required to be registered under GST:

(i) Person making any inter-state taxable supply; (ii) Causal taxable persons making taxable supply; (iii) Person who are required to pay tax under reverse charge; (iv) Person who are required to pay tax under sec. 9(5) of CGST Act (i.e. Electronic Commerce Operator); (v) Non-resident taxable person making taxable supply; (vi) Persons who are required to deduct tax under Sec 51, whether or not separately registered under this

Act; (vii) Persons who make taxable supply of goods or services or both on behalf of other taxable person

whether as an agent or otherwise; (viii) Input Service Distributor, whether or not separately registered under CGST; (ix) Persons who supply of goods or services or both, other than supplies specified under Sec 9(5),

through such electronic commerce operator who is required to collect tax at source under Sec 52; (x) Every electronic commerce operator; (xi) Every person supplying online information and database access or retrieval services from place

outside India to a person in India, other than a registered person; and (xii) Such other person or class of persons as may be notified by the Govt. on the recommendation of the

Council.

105. [TAX INVOICE] - (a) State the contents of a Tax Invoice.

(b) What is Revised Invoice as per Section 31(3)(a) of the CGST Act, 2017?


(a) There is no format prescribed for an invoice, however, Invoice rules makes it mandatory for an invoice to

have the following fields (only applicable field are to be filled): 1. Name, address and GSTIN of the supplier 2. A consecutive serial number, in one or multiple series, containing alphabets or numerals or special

characters like hyphen or dash and slash symbolised as ―–‖ and ―/‖ respectively, and any combination thereof, unique for a financial year

3. Date of its issue 4. Name, address and GSTIN or UIN, if registered, of the recipient.



5. Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more

6. HSN code of goods or Accounting Code of Services 7. Description of goods or services 8. Quantity in case of goods and unit or Unique Quantity Code there of 9. Total value of supply of goods or services or both 10. Taxable value of supply of goods or services or both, taking into account the discount or abatement,

if any 11. Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess) 12. Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax,

union territory tax or cess) 13. Place of supply along with the name of State, in case of a supply in the course of inter-State trade or

commerce 14. Address of delivery where the same is different from the place of supply 15. Whether the tax is payable on reverse charge basis 16. Signature or digital signature of the supplier or his authorized representative.

(b) A registered person may, within one month from the date of issuance of certificate of registration and in

such manner as prescribed in the Invoice Rules, issue a revised invoice against the invoice already

issued during the period beginning with the effective date of registration till the date of issuance of

certificate of registration to him.

This provision is necessary, as a person who becomes liable for registration has to apply for registration

within 30 days of becoming liable for registration. When such an application is made within the time

period and registration is granted, the effective date of registration is the date on which the person

became liable for registration. Thus there would be a time lag between the date of grant of certificate of

registration and the effective date of registration.

For supplies made by such person during this intervening period, the law enables the issuance of a revised invoice, so that Input Tax Credit can be availed by the recipient on such supplies.

106. (a) [PAYMENT OF TAX] - Y Ltd is operating in two states Andhra Pradesh and Tamil Nadu. The tax

liability for the month of August 2018 is as follows—

S. No. Tax Liability Andhra Pradesh (`̀̀̀) Tamil Nadu ( `̀̀̀)

1. Output CGST Payable 25,000 10,000

2. Output SGST Payable 10,000 5,000

3. Output IGST payable 3,000 2,500

4. Input CGST 8,000 13,000

5. Input SGST 15,000 1,500

6. Input IGST 12,000 16,000

Calculate the tax payable for the month of August 2018.

(b) What is First Return and Revision of Returns in GST? [ICMAI RTP JUNE 2018]



Solution: (a) Net Tax payable for the month of August is as follows - (Amount in `̀̀̀)

Particulars Andhra Pradesh Tamil Nadu

CGST SGST IGST CGST SGST IGST

Output tax 25,000 10,000 3,000 10,000 5,000 2,500

Input credit available for 8,000 15,000 12,000 13,000 1,500 16,000

setoff

Input credit adjusted 8,000 10,000 3,000 10,000 1,500 2,500

Tax payable after setting 17,000 - - - 3,500 -

of ITC

Input Tax available for - 5,000 9,000 3,000 - 13,500

further set-off

Inter Adjustment of ITC 9,000 - (9,000) - 3,500 (3,500)

(Note-1)

Net Tax payable in cash 8,000 - - - - -

Input credit carry - 5,000 - 3,000 - 10,000

forwarded to next month

Notes:

1. IGST Input tax credit can be adjusted against Output tax of liability of IGST, CGST, SGST, UTGST (set off can be done in same Order)

2. SGST Input tax credit cannot be adjusted against output CGST & Vice-Versa.

3. CGST & SGST Input tax credit of one State cannot be adjusted against Output CGST & SGST of other state (same principle is applicable to IGST credit also).

(b) First Return:

As per section 40 of the CGST Act, 2017 every registered person who has made outward supplies in the period between the dates on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return furnished by him after grant of registration.

Revision of Returns:

The mechanism of filing revised returns for any correction of errors/omissions has been done away with. The

rectification of errors/omissions is allowed in the subsequent returns.

However, no rectification is allowed after furnishing the return for the month of September following the end of the financial year to which, such details pertain, or furnishing of the relevant annual return, whichever is earlier.

107. Mr. M of Madurai supplied goods/services for ` ` ` ` 24,000 to Mr. S of Salem. Mr. M purchased goods/services for ` ` ` ` 23,600 (inclusive of CGST 9% and SGST 9%) from Mr. C of Chennai. Find the following:

(1) Total price charged by Mr. M for supply of goods/services and (2) Who is liable to pay GST? (3) Net liability of GST.




Solution:

Particulars Value in (`)

Value charged for supply of goods/services 24,000

Add: CGST 9% 2,160

Add: SGST 9% 2,160

(1) Total price charged by Mr. M from Mr. S for local supply of

goods/services. 28,320

(2) Mr. M is liable to pay GST.

Particulars

CGST

(`) SGST (`)

Output tax 2,160 2,160

Less: Input Tax Credit (ITC) (1,800) (1,800)

(3) Net tax liability of Mr. M 360 360 108. [COMPOSITION SCHEME] -

M/s X Pvt. Ltd., is a manufacturer having two units namely Unit – A in Andhra Pradesh and another Unit – B in Tamil Nadu. Total turnover of two units in last Financial Year was ` ` ` ` 95 lakhs (` ` ` ` 10 lakhs

of Unit – A + ` ` ` ` 85 lakhs of Unit – B).

Total turnover of two units in the second quarter of this financial year was ` ` ` ` 15 lakhs (` ` ` ` 5 lakhs of

Unit – A + ` ` ` ` 10 lakhs of Unit – B). Applicable rate of CGST is 9% and SGST is 9%. Find the Net liability of X Pvt. Ltd. Note: M/s X Pvt. Ltd., is not availing input tax credit.


Solution: Since, the company is not availing the benefit of input tax credit the said company can pay GST under composition levy under sec. 10(1) of the CGST Act, 2017.

Applicable rate of CGST is 0.5% and SGST is 0.5%.

Unit Location Turnover in Turnover in 2nd Total tax (@1%)

the previous Quarter of the

financial year financial year 0.5% CGST 0.5% SGST

Andhra ` 10 lakhs ` 5 lakhs ` 2,500 ̀ 2,500

Pradesh

Tamil Nadu ` 85 lakhs ` 10 lakhs ` 5,000 ̀ 5,000 109. [EXEMPTION] -

Mr. Navab, a performing artist, provides the following information relating to August, 2018. Receipts from: `̀̀̀

Performing classical dance 98,000

Performing in television serial 2,80,000

Services as brand ambassador 12,00,000

Coaching in recreational activities relating to arts 2,10,000

Activities in sculpture making 3,10,000

Performing western dance 90,000

Determine the value of taxable supply of services and GST payable by Mr. Navab for

August, 2018. GST @ 18%. [ICMAI RTP JUNE 2018]



Solution:

Receipts from Value in `̀̀̀ Remarks

Classical dance Nil Exempt as receipt is less than or equal to ` 1,50,000

Performing in television serial 2,80,000

Brand ambassador 12,00,000

Coaching in recreational activities in relation to arts

Nil

sculpture making 3,10,000

Western dance 90,000

Value of taxable supply of service 18,80,000

GST 18% 3,38,400

110. [EXEMPTION] -

(a) Indian Institute of Management, Ahmedabad provided the following services in the month of July 2018: 1. Post Graduate Diploma in Management services provided to those candidates who selected

through Common Admission Test (CAT) for ` ` ` ` 25 lakhs.

2. Services provided by way of Executive Development Programme ` ` ` ` 55 lakhs. Find the GST liability if rate of GST is 18%.

(b) Tirumal Tirupati Devasthanams, Tirupati registered under section 12AA of the Income Tax Act, 1961 was running guest houses for pilgrims. Renting of precincts of a religious place meant for

general public, by charging more than ` ` ` ` 1,000 per day. Department Claims that the assessee was liable to pay GST. But the assessee contented that since, they were running guest houses without any profit motive hence they were not liable to pay GST.

Decide the case whether the contention of the assessee is right or Department claim is justifiable.

[ICMAI RTP JUNE 2018] Solution: (a) 1. Post Graduate Diploma in Management where admission to such programme is through Common

Admission Test (CAT) is exempted supply of service and exempted from GST 2. Executive Development Programme is taxable supply. GST is ` 9.9 lakhs (` 55 lakhs x 18%).

(b) Renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 is exempt from GST. However, w.e.f 1-7-2017, this exemption shall not be applicable to

(a) Renting of rooms where charges are ` 1000/- or more per day, (b) Renting of premises, community halls, kalyanmandapam or open area, etc where charges are `

10,000/- or more per day, and (c) Renting of shops or other spaces for business or commerce where charges are ` 10,000/-or more

per month.

Thus, the law gives a limited exemption to renting of only religious precincts or a religious place meant for general public by the entity registered under Section 12AA of the Income Tax Act or Sec 10(23C)(v) or Sec 10(23BBA) of the Income Tax Act, 1961. In the given case, it is not exempt from GST. Therefore, department claim is justifiable.

111. [REVERSE CHARGE] With reference to the provisions of GST law (w.e.f. 1-7-2017), briefly explain as

to who is the person responsible to pay GST in the following: 1. Legal services are provided by Senior Advocates to business entities. 2. Representation services are provided by Senior Advocates to any business entity. 3. Were Contracts for representation service provided by the Senior Advocates to any business

entity has been entered into through another advocate or firm of advocates. [ICMAI RTP JUNE 2018]



Solution:

Service

provider Service recipient

Nature of

service Taxability

Person

responsible to pay GST

(i) & (ii) Senior

Advocate

Business Entity

(whose turnover exceeds ` 20

Lakhs in previous year)

Representation

Services

Taxable supply of service

Recipient of service, Which is the business entity, who is litigant,

applicant or petitioner.

(iii) Recipient of service that is the business entity, who is the litigant, applicant or petitioner, is liable to pay GST. Note: Previous year turnover more than ` ` ` ` 20 lakhs (in case of special category States is ` ` ` ` 10 lakhs).

112. [VALUE]-

Bharat Gas sells cooking gas cylinders. Subsidy directly transferred to the account of the

customer. Selling price per cylinder is ` ` ` ` 800. Customers received subsidy of ` ` ` ` 200 directly from

Government to his bank account. Net outflow of the buyer is ` ` ` ` 600. Find the value of supply of goods (per cylinder) in the hands of Bharat Gas.


Solution: Since, the amount of subsidy is directly credited to the account holder and not received by the Bharat

Gas making the supply, therefore, such subsidy will not be considered as part of transaction value as it is

not received by the Bharat Gas in making the supply.

Hence, transaction value is ` 800 per cylinder.

113. (a) What is revocation of cancellation of registration under GST?

(b) M/s X Ltd. being a registered person supplying taxable goods in the following manner:

Particulars `̀̀̀

Intra-State supply of goods 18,00,000

Inter-State supply of goods 13,00,000

Intra-State purchases 13,00,000

Inter-State purchases 1,50,000

ITC at the beginning of the relevant tax period:

CGST 1,30,000

SGST 1,30,000

IGST 1,70,000

�� Rate of CGST, SGST and IGST to be 9%, 9% and 18% respectively. �� Inward and outward supplies are exclusive of taxes. �� All the conditions necessary for availing the input tax credit have been fulfilled.

Compute the net GST payable by M/s X Ltd during the tax period. Make suitable assumptions.


Solution:

(a) Revocation of cancellation of registration under GST:

As per section 30(1) of the CGST Act, 2017, subject to such conditions as may be prescribed, any

registered person, whose registration is cancelled by the proper officer on his own motion, may apply to

such officer for revocation of cancellation of the registration in the prescribed manner within 30 days from

the date of service of the cancellation order.

As per section 30(2) of the CGST Act, 2017, the proper officer may, in such manner and within such

period as may be prescribed, by order, either revoke cancellation of the registration or reject the

application. The application for revocation of cancellation of registration shall not be rejected unless the

applicant has been given an opportunity of being heard.



(b) Statement showing input tax credit (i.e. Electronic Credit Ledger):

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

Opening balance 1,30,000 1,30,000 1,70,000

Add: ITC for the tax period 1,17,000 1,17,000 27,000

Total credit 2,47,000 2,47,000 1,97,000

Statement showing Net GST payable by M/s X Ltd. for the tax period:

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

Output tax 1,62,000 1,62,000 2,34,000

Less: ITC allowed -

2,47,000 -

2,47,000 -

1,97,000

Sub-total -85,000 -85,000 37,000

Less: CGST credit adjusted against IGST 37,000 Nil -37,000

Net GST liability Nil Nil Nil

Excess ITC c/f 48,000 85,000 Nil

114. What is Bill of Supply? Write down the contents of Bill of Supply.


Solution: A bill of supply is similar to a GST invoice except that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer. A bill of supply is issued in cases where tax cannot be charged:

� Registered person is selling exempted goods/services, � Registered person has opted for composition scheme

Contents of Bill of supply:

�� A bill of supply shall be issued by the supplier containing the following details:

�� Name, address and GSTIN of the supplier

�� A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolised, and any combination there of, unique for a financial year

�� Date of its issue

�� Name, address and GSTIN or UIN, if registered, of the recipient

�� HSN Code of goods or Accounting Code for Services

�� Description of goods or services or both

�� Value of supply of goods or services or both taking into account discount or abatement, if any

�� Signature or digital signature of the supplier or his authorized representative.



115. Rama Ltd. has provided following information for the month of September: (i) Intra-State outward supply ` ` ` ` 8,00,000/- (ii) Inter-State exempt outward supply ` ` ` ` 5,00,000/- (iii) Turnover of exported goods ` ` ` ` 10,00,000/- (iv) Payment made for availing GTA services ` ` ` ` 80,000/-

Calculate the aggregate turnover of Rama Ltd.

(a) ` 8,00,000/-

(b) ` 23,80,000/-

(c) ` ` ` ` 23,00,000/-

(d) ` 18,00,000/-

[ICAI CA INTER Mock Test Paper – May 2019 – 1 Marks]

116. Which of the following services received without consideration amount to supply?

(1) Import of services by a person in India from his son well-settled in USA

(2) Import of services by a person in India from his brother well-settled in Germany

(3) Import of services by a person in India from his brother (wholly dependent on such person in India) in France

(4) Import of services by a person in India from his daughter (wholly dependent on such person in India) in Russia

(a) 1), 3) and 4)

(b) 2), 3) and 4)

(c) 2) and 3)

(d) 1) and 2)


117. Services by way of admission to ................ are exempt from GST.

(a) Museum

(b) National park

(c) Tiger reserve

(d) All of the above


118. A supplier takes deduction of depreciation on the GST component of the cost of capital goods as per Income- tax Act, 1961. The supplier can-

(a) avail only 50% of the said tax component as ITC

(b) not avail ITC on the said tax component

(c) avail 100% ITC of the said tax component

(d) avail only 25% of the said tax component as ITC


119. Which of the following persons is not eligible for composition scheme even though their aggregate

turnover does not exceed ` ` ` ` 1 crore in preceding FY, in Uttar Pradesh?

(a) A person supplying restaurant services

(b) A person supplying restaurant services and earning bank interest

(c) A person supplying restaurant services and warehousing of rice

(d) A person supplying restaurant services and warehousing of processed tea.


120. The time of supply of service in case of reverse charge mechanism is

(a) Date on which payment is made to the supplier

(b) Date immediately following 60 days from the date of issue of invoice

(c) Date of invoice

(d) Earlier of (a) and (b)




121. Which of the following services does not fall under reverse charge provisions as contained under section 9(3) of the CGST Act?

(a) Services supplied by arbitral tribunal to business entity

(b) Sponsorship provided to any partnership firm

(c) Sponsorship provided to any body corporate

(d) None of the above


122. Transport of .............. by rai l are exempt from GST:

(a) Milk

(b) Salt

(c) Defence equipments



123. Alcoholic liquor for human consumption is subjected to

(a) State excise duty

(b) Central Sales Tax/Value Added Tax

(c) Both (a) and (b)

(d) GST


124. Taxes subsumed in GST are

(a) Service tax

(b) Luxury tax

(c) VAT

(d) All of the Above


125. IMPORTANT - M/s. Comfortable (P) Ltd. is registered under GST in Chennai, Tamil Nadu. It is engaged in the manufacture of iron and steel products. It has carried out following transactions in the financial year 20XX-XY:-

(a) Purchased 1,000 Metric Ton (MT) iron @ 1,000 per MT (excluding GST) from M/s. Hard Ltd. of Chennai. M/s. Hard Ltd. has fulfilled the order as follows:

Date Quantity (MT) Taxable Value

28-Feb-20XY 200 2,00,000/- 10-Mar-20XY 250 2,50,000/- 25-Mar-20XY 250 2,50,000/- 28-Mar-20XY 200 2,00,000/-

Balance order requirement has been fulfilled by Hard Ltd. on 5-Apr-20XY. However, Hard Ltd. has raised the invoice for full order at the time of dispatch of first lot, i.e. on 28-Feb-20XY. M/s. Comfortable (P) Ltd. has made the full payment on 28-Feb-20XY for the order.

(b) Company has received IT engineering service from M/s. Dynamic Infotech (P) Ltd. of Chennai

for ` ` ` ` 11,00,000/- (excluding GST ) on 28-Oct-20XX. Invoice for service rendered was issued on

5-Nov- 20XX. M/s Comfortable (P) Ltd. made part-payment of ` ` ` ` 4,13,000/- on 31-Dec-20XX. Being unhappy with service provided by M/s Dynamic Infotech (P) Ltd., it did not make the balance payment. Deficiency in service rendered was made good by M/s Dynamic Infotech (P)

Ltd. by 15-Feb-20XY. M/s. Comfortable (P) Ltd. made payment of ` ` ` ` 2,95,000/- on 15-Feb-20XY towards full and final settlement of the dues and did not pay the balance amount.



(c) Company has made the following intra State supplies (excluding GST) for the financial year 20XX- XY:-

S.No. Particulars Amount (` ` ` ` )

1. 2.

Value of intra-State supplies made to registered persons Value of intra- State supplies made to unregistered persons

10,00,000 2,00,000

(i) Compute the GST liability (CGST, SGST or IGST, as the case may be) of M/s. Comfortable (P) Ltd. for the financial year 20XX-XY:-

(ii) Compute the amount of input tax credit to be reversed in the FY 20XX-XY and/or in the next FY 20XY-YZ, if any.

Assume the rates of GST as under:

CGST 9%

SGST 9%

lGST 18%

Note

(i) All the conditions necessary for availing input tax credit have been fulfilled.

(ii) Ignore interest, if any

[ICAI CA INTER Mock Test Paper – May 2019 – 8 Marks] Solution: Computation of net GST payable for the financial year 20XX-XY

Particulars Value (` ` ` ` ) CGST (` ` ` ` ) SGST (` ` ` ` )

Tax liability Intra-State supplies made to registered persons 10,00,000 90,000 90,000 Intra State supplies made to unregistered persons 2,00,000 18,000 18,000

Total (A) 1,08,000 1,08,000 Input Tax credit Supply of iron in lots by M/s Hard Limited [Note-1] 10,00,000 - - Supply of IT engineering service [Note-2] 11,00,000 99,000 99,000

Total (B) 99,000 99,000 Net GST payable (A)-(B) 9,000 9,000

Notes:-

1. Section 16 of CGST Act, 2017 provides that where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take credit upon receipt of the last lot or installment. Although 900 tonnes of iron are received in financial year 20XX-XY, the last lot of iron has been received after FY 20XX-XY only, i.e. on 5, April 20XY, thus no input tax credit is available in FY 20XX-XY.

In view of above provisions, full input tax credit in respect of transaction (a) will be claimed in financial year 20XY-20YZ i.e. on receipt of last installment.

2. Section 16 of CGST Act, 2017 inter alia provides that every registered person is entitled to take credit of input tax charged on supply of services to him which are used in the course of business on receipt of the said services.

Thus, in view of the above mentioned provisions full input tax credit of ` 1,98,000/- can be claimed in financial year 20XX-XY.

Section 16 of CGST Act, 2017 provides that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of 180 days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in the prescribed manner.

However, the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.

Since the full amount of value alongwith tax payable thereon has not been paid by M/s Comfortable (P) Ltd. to M/s Dynamic Infotech (P) Ltd within a period of 180 days from the date of issue of invoice, the proportionate amount of input tax credit availed needs to be reversed. However, the reversal will be done in the financial year 20XY-YZ during when the time period of 180 days expire.



Input tax credit to be reversed in financial year 20XY-YZ

Particulars Amount (` ` ` ` )

Total value of procurement of IT engineering service 11,00,000

Add: Total GST on the above value @ 18%[CGST + SGST] 1,98,000

Value including GST 12,98,000

Amount paid for the said service including GST [` 4,13,000 + ` 2,95,000] 7,08,000

Amount [value alongwith tax payable thereon] not paid for the said service 5,90,000

ITC to be reversed [` ` ` ` 5,90,000 x 18/118] 90,000

126. Determine taxable value of supply under GST law with respect to each of the following independent services provided by the registered persons (Notes are compiled by SATC):

Particulars Gross amount charged (` ` ` ` )

Amount charged for loading, unloading, packing and warehousing of potato chips

25,000

Fees charged for yoga camp conducted by a charitable trust registered under section 12AA of the Income-tax Act, 1961

50,000

Amount charged by business correspondent for the services provided to the rural branch of a bank with respect to Savings Bank Accounts

1,00,000

Amount charged by cord blood bank for preservation of stem cells 5,00,000

Amount charged for service provided by commentator to a recognized sports body

6,00,000

Amount charged for service provided by way of right to admission to circus where consideration for the same is ` ` ` ` 750 per person.

12,000

[ICAI CA INTER Mock Test Paper – May 2019 – 6 Marks] Solution: Computation of value of taxable supply

Particulars (` ` ` ` )

Amount charged for loading, unloading, packing and warehousing of potato chips [Note-1]

25,000

Fees charged for yoga camp conducted by a charitable trust registered under section 12AA of the Income-tax Act, 1961 [Note-2]

Nil

Amount charged by business correspondent for the services provided to the rural branch of a bank with respect to Savings Bank Accounts [Note-3]

Nil

Amount charged by cord blood bank for preservation of stem cells [Note-4] Nil

Service provided by commentator to a recognized sports body [Note-5] 6,00,000

Amount charged for service provided by way of right to admission to circus where consideration for the same is ` 750 per person. [Note-6]

12,000

Notes:

1. Services by way of loading, unloading, packing, storage or warehousing of agricultural produce are exempt from GST. Further, potato chips are manufactured through processes which alter the essential characteristic of agricultural produce, thus is not covered under definition of agricultural produce.

2. Services by an entity registered under section 12AA of the Income-tax Act, 1961 by way of charitable activities are exempt from GST. The activities relating to advancement of yoga are included in the definition of charitable activities. So, such activities are exempt from GST.

3. Services by business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch have been exempted from GST.

4. Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation are exempt from GST.

5. Services provided to a recognized sports body only by an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body are exempt from GST. Thus, services provided by commentators are liable to GST.

6. Services provided by way of right to admission to circus where consideration for the same is upto `

500 per person are exempt from GST. Since in the present case, the consideration is more than ` 500 per person, so the same is liable to GST.



127. Decide which person is liable to pay GST in the following independent cases, where the recipient is located in the taxable territory. Ignore the Aggregate Turnover and Exemption available.

(i) Miss Shinu Ambani provided sponsorship services to Indian Love Cricket Academy, a Limited Liability Partnership.

(ii) "Fast move", a Goods Transport Agency, transported goods of Amba & Co., a partnership firm which is not registered under GST.

[ICAI CA INTER Mock Test Paper – May 2019 – 4 Marks] Solution: In case of services provided by any person by way of sponsorship to any body corporate or partnership firm / limited liability partnership (LLP), GST is liable to be paid under reverse charge by such body corporate or partnership firm / LLP located in the taxable territory. Therefore, in the given case, Indian Love Cricket Academy is liable to pay GST under reverse charge. In case of services provided by Goods Transport Agency (GTA) in respect of transportation of goods by road to, inter alia, any partnership firm whether registered or not under any law; GST is liable to be paid by such partnership firm. Therefore, in the given case, Amba & Co. is liable to pay GST under reverse charge.

128. Mr. Mayank provides Continuous Supply of Services (CSS) to M/s. Omega Limited. He furnishes the following further information:

(i) Date of commencement of Providing CSS 01-10-20XX

(ii) Date of completion of Providing CSS 31-01-20XY

(iii) Date of receipt of payment by Mr. Mayank 30-03-20XY

Determine the time of issue of invoice as per provisions of CGST Act, 2017, in the following circumstances:

(i) If no due date for payment is agreed upon by both under the contract of CSS.

(ii) If payment is linked to the completion of service.

(iii) If M/s. Omega Limited has to make payment on 25-03-20XY as per the contract between them.

[ICAI CA INTER Mock Test Paper – May 2019 – 3 Marks] Solution:

i. Where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment. Thus, in the given case, the invoice should be issued on or before 30.03.20XY (date of receipt of payment by Mr. Mayank).

ii. If payment is linked to the completion of an event, the invoice should be issued on or before the date of completion of that event. Since in the given case payment is linked to the completion of service, invoice should be issued on or before 31.01.20XY (date of completion of service).

iii. Where the due date of payment is ascertainable from the contract, the invoice should be issued on or before the due date of payment. If M/s. Omega Limited has to make payment on 25.03.20XY as per the contract between them, the invoice should be issued on or before 25.03.20XY.

129. Draupad Fabrics has opted for composition levy scheme in the current financial year. It has approached you for advice whether it is mandatory for it to issue a tax invoice. You are required to advice him regarding same.

[ICAI CA INTER Mock Test Paper – May 2019 – 3 Marks] Solution:

A registered person paying tax under the provisions of section 10 [composition levy] shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed. Therefore, in the given case, Draupad Fabrics cannot issue tax invoice. Instead, it shall issue a Bill of Supply.



130. M/s Salty & Spicy Limited reduced the amount of ` ` ` ` 1,50,000 from the output tax liability in contravention of provisions of section 42(10) of the CGST Act, 2017 for the month of April 20XX, which is ineligible credit. A show cause notice was issued by the Tax Department to pay tax along with interest. M/s Salty & Spicy Limited paid the tax and interest on 31

st July, 20XX. Calculate

Interest liability (Ignore Penalty). [ICAI CA INTER Mock Test Paper – May 2019 – 4 Marks]

Solution: A taxable person who makes an undue or excess claim of input tax credit shall pay interest @ 24% p.a. on such undue or excess claim in terms of section 50 of CGST Act, 2017. The period of interest will be from the date following the due date of payment to the actual date of payment of tax.

Due date of payment is 20th May, 20XX.

Period for which interest is due = 21st May, 20XX to 31

st July, 20XX =72 days

Thus, interest liability = ` 1,50,000 x 24% x 72/365

=` 7,101 (approx.)

131. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?


Solution: Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II(1)(b) of the CGST Act. In some cases, possession may be transferred immediately but title may be transferred at a future date like in case of sale on approval basis or hire purchase arrangement. Such transactions will also be termed as supply of goods.

132. If a return has been filed, how can it be revised if some changes are required to be made? [ICAI CA INTER Mock Test Paper – May 2019 – 5 Marks]

Solution:

In GST since the returns are built from details of individual transactions, there is no requirement for having a revised return. Any need to revise a return may arise due to the need to change a set of invoices or debit/ credit notes. Instead of revising the return already submitted, the system allows changing the details of those transactions (invoices or debit/credit notes) that are required to be amended. They can be amended in any of the future GSTR- 1 in the tables specifically provided for the purposes of amending previously declared details. As per section 39(9), omission or incorrect particulars discovered in the returns filed u/s 39 can be rectified in the return to be filed for the month/quarter during which such omission or incorrect particulars are noticed. Any tax payable as a result of such error or omission will be required to be paid along with interest. The rectification of errors/omissions is carried out by entering appropriate particulars in "Amendment Tables" contained in GSTR-1.

133. Ayushman Medical Centre, a clinical establishment, offers the following services:

S.No. Particulars `̀̀̀* excluding GST

(i) Reiki healing treatments. Such therapy is not a recognized system of 10,00,000 medicine in terms of section 2(h) of Clinical Establishments Act, 2010. (ii) Plastic surgeries. 20,00,000 [One such surgery was conducted to repair cleft lip of a new born baby.

Consideration of ` ` ` ` 1,00,000 was charged for the same.] (iii) Air ambulance services to transport critically ill patients from distant 1,00,000 locations to Ayushman Medical Centre. (iv) Alternative medical treatments by way of Ayurveda. Such therapy is 2,50,000 a recognized system of medicine in terms of section 2(h) of Clinical Establishments Act, 2010



Ayushman Medical Centre also operates a cord blood bank which provides services in relation to preservation of stem cells. You are required to compute the value of supply and GST liability [CGST & SGST or IGST] of Ayushman Medical Centre, if any, in the light of relevant GST provisions. Note – All the services provided by Ayushman Medical Centre are intra -State supplies. Assume the rates of CGST, SGST and IGST to be 9%, 9% and 18% respectively.

[ICAI Mock Test Paper – May 2018 – 6 Marks]

Solution: Health care services provided by, inter alia, a clinical establishment in India are exempt from GST vide Notification No. 12/2017 CT (R) dated 28.06.2017 . The definition of ‘health care services’ stipulates that such services must be provided in any recognized system of medicines.

As per section 2(h) of Clinical Establishments Act, 2010, recognised system of medicine means allopathy, yoga, naturopathy, ayurveda, homeopathy, siddha and unani system of medicines or any other system of medicines as may be recognised by the Central Government. Accordingly, value of supply and GST liability of Ayushman Medical Centre will be computed as follows:

S. No. Particulars `̀̀̀

(i) Reiki healing treatments 10,00,000 [Not a recognized system of medicines]

(ii) Plastic surgeries [` ` ` ` 20,00,000 - ` ` ` ` 1,00,000] 19,00,000 [‘Health care services’ specifically excludes, inter alia, cosmetic or plastic surgery except when undertaken to restore/reconstruct anatomy/functions of body affected due to congenital defects, developmental abnormalities, injury or trauma] (iii) Air ambulance services to transport critically ill patients from distant Nil locations to the Medical Centre [‘Health care services’ specifically includes services by way of transportation of the patient to and from a clinical establishment ] (iv) Alternative medical treatments by way of Ayurveda Nil

[Being a recognized system of medicines]

Value of supply 29,00,000

CGST @ 9% 2,61,000 SGST @ 9% 2,61,000 Note: Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation are exempt from GST. Therefore, services provided in relation to preservation of stem cells by the cord blood bank operated by Ayushman Medical Centre will be exempt from GST.

134. Ramoplast Soap Factory, a registered supplier, is engaged in manufacturing beauty soaps – ‘Forever Glow’ in Mumbai. It has provided the following information pertaining to purchases made/services availed in the month of January, 20XX:

Particulars GST paid (`̀̀̀)

Soap making machine 50,000

Motor vehicles for transportation of inputs 70,000

Membership of ‘Fit and Fine’ health and fitness centre for its employees 25,000

Inputs purchased, but stolen from the factory 40,000

You are required to compute the input tax credit (ITC) available with Ramoplast Soap Factory for the

month of January, 20XX assuming that all the other conditions for availing ITC, wherever applicable, have been fulfilled.

[ICAI Mock Test Paper – May 2018 - 4 marks]



Solution: Computation of ITC available with Ramoplast Soap Factory


Soap making machine

[ITC in respect of goods used in course/furtherance of business is available in terms of section 16 of the CGST Act] 50,000

Motor vehicles for transportation of inputs

[ITC in respect of motor vehicles and conveyances is blocked, except when used, inter alia, for transportation of goods, in terms of section 17(5) of the CGST Act] 70,000

Membership of ‘Fit and Fine’ health and fitness centre for its employees [ITC in respect of membership of a club, health and fitness centre is blocked in terms of section 17(5) of the CGST Act] Nil

Inputs stolen from the factory [ITC in respect of goods stolen is blocked in terms of section 17(5) of the CGST Act] Nil

Total ITC available 1,20,000

135. Quantum Plast Private Limited, Delhi supplies plastic granulation machine to Capscom Ltd., Delhi. It

furnishes the following details in respect of such supply:

Particulars `̀̀̀ List price of the machine (exclusive of taxes and discounts) 1,00,000 Corrugated Boxes used for packing the machine (not included in price above) 1,000 Subsidy received from Delhi Government on sale of such machine (considered in price above) 5,000 Discount @ 2% is offered on list price of the machine (recorded in the invoice for the machine)

Determine the value of taxable supply made by Quantum Plast Private Limited. [ICAI Mock Test Paper – May 2018 – 5 Marks]

Solution:

Computation of Value of Taxable Supply

Particulars `̀̀̀

List price of the goods (exclusive of taxes and discounts) 1,00,000

Add: Corrugated Boxes used for packing the machine [Includible in the value as per section 15(2)(c)] 1,000

Add: Subsidy received from Delhi Government on sale of such machine [Subsidy received from State Government is not included the value in terms of section 15(2)(e)]

Total 1,01,000

Less: Discount @ 2% on ` 1,00,000 2,000

[Since discount is known at the time of supply, it is deductible from the value in terms of section 15(3)(a)]

Value of taxable supply 99,000

136. Discuss the term ‘composite supply’ and its taxability under GST law.


Solution: Composite supply means a supply made by a taxable person to a recipient and: � comprises two or more taxable supplies of goods or services or both, or any combination thereof. � are naturally bundled and supplied in conjunction with each other, in the ordinary course of business � one of which is a principal supply [Section 2(30) of the CGST Act].

Taxability: A composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply [Section 8 of the CGST Act, 2017].



137. Kesar Maharaj, a registered supplier, gave a classical dance performance in an auditorium. The

consideration charged for the said performance is ` ` ` ` 1,48,500. Is Kesar Maharaj liable to pay GST on the consideration received for the said performance if such performance is not for promotion of any product/services? If yes, determine his GST liability (CGST and SGST or IGST, as the case may be). Will your answer be different if:

(i) Kesar Maharaj is a brand ambassador of a food product and aforesaid performance is for the

promotion of such food product? (ii) the dance performance given by Kesar Maharaj is not a classical dance performance, but a

contemporary Bollywood style dance performance? (iii) consideration charged by Kesar Maharaj for the classical dance performance is ` ` ` ` 1,60,000?

Notes: 1. Services provided by Kesar Maharaj are intra-State supplies. 2. Wherever applicable, GST has been charged separately. 3. Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.


Solution: Notification No. 12/2017 CT (R) dated 28.06.2017 exempts services by an artist by way of a performance in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, if the consideration charged for such performance is not more than ` 1,50,000. However, exemption will not apply to service provided by such artist as a brand ambassador. In view of the aforesaid provisions, services provided by Kesar Maharaj are exempt from GST as consideration for the classical dance performance has not exceeded ` 1,50,000. Therefore, his GST liability is nil.

(i) If Kesar Maharaj is a brand ambassador of a food product and aforesaid performance is for the

promotion of such food product, he will be liable to pay GST as aforesaid exemption is not applicable to service provided by an artist as a brand ambassador. His CGST and SGST liability would, therefore, be ` 13,365 (` 1,48,500 × 9%) and ` 13,365 (` 1,48,500 × 9%) respectively.

(ii) If Kesar Maharaj gives a contemporary Bollywood style dance performance, such performance will not

be eligible for aforesaid exemption. The reason for the same is that although the consideration charged does not exceed ` 1,50,000, said performance is not in folk or classical art forms of dance. Hence, GST would be payable on the same. His CGST and SGST liability would, therefore, be ` 13,365 (` 1,48,500 × 9%) and ` 13,365 (` 1,48,500 × 9%) respectively.

(iii) If the consideration charged for the classical dance performance by Kesar Maharaj is `

1,60,000, he will be liable to pay GST on the same as although the performance is by way of classical art form of dance, consideration charged for such performance has exceeded ` ` ` ` 1,50,000. His CGST and SGST liability would, therefore, be ` 14,400 (` 1,60,000 × 9%) and ` 14,400 (` 1,60,000 × 9%) respectively. (Notes are compiled by SATC)

138. Mehra Sons, a registered supplier, is a wholesale supplier of ready-made garments located in

Bandra, Mumbai. On 5th September, 20XX, Subhadra, owner of Aura Boutique located in Dadar, Mumbai, approached Mehra Sons for supply of a consignment of customised dresses for ladies and kids. Mehra Sons gets the consignment ready by 2nd December, 20XX and informs Subhadra about the same. The invoice for the consignment was issued the next day, 3rd December, 20XX. Due to some reasons, Subhadra could not collect the consignment immediately. So, she collects the consignment from the premises of Mehra Sons on 18th December, 20XX and hands over the cheque for payment on the same date. The said payment is entered in the accounts on 20th December, 20XX and amount is credited in the bank account on 21st December, 20XX. You are required to determine the time of supply of the readymade garments supplied by Mehra Sons to Subhadra elaborating the relevant provisions under the GST law.

[ICAI Mock Test Paper – May 2018 - 4 Marks]



Solution: [Solution is modified as per amended provision]

Section 12 of CGST Act, 2017 read with Notification No. 66/2017 CT dated 15.11.2017 provides that the time of supply for all suppliers of goods (excluding composition suppliers) is the time of issue of invoice, without any turnover limit. Hence, the time of supply will be 3rd December, 20XX. Note: Date of payment is now not relevant in case of supply of goods.

139. Explain the term ‘aggregate turnover’.


Solution: Aggregate turnover includes the aggregate value of:

(i) all taxable supplies, (ii) all exempt supplies, (iii) exports of goods and/or services and (iv) all inter-State supplies of persons having the same PAN.

The above is computed on all India basis. Further, the aggregate turnover excludes central tax, State tax, Union territory tax, integrated tax and cess. Moreover, the value of inward supplies on which tax is payable under reverse charge is not taken into account for calculation of ‘aggregate turnover’ [Section 2(6) of CGST Act].

140. Discuss the time-limit for issuance of invoice in case of taxable supply of goods.


Solution: In case of taxable supply of goods, invoice shall be issued before or at the time of— (a) removal of goods for supply to the recipient, where the supply involves movement of goods; or (b) delivery of goods or making available thereof to the recipient, in any other case.

In case of continuous supply of goods, where successive statements of accounts/ successive payments are involved, the invoice shall be issued before/at the time each such statement is issued or each such payment is received [Section 31 of the CGST Act].

141. What is an electronic cash ledger? Enumerate the modes of making deposit in the electronic cash

[ICAI Mock Test Paper – May 2018– 3 Marks]

Solution: Electronic cash ledger is maintained in prescribed form for each person, liable to pay tax, interest, penalty, late fee or any other amount, on the common portal for crediting the amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount. The deposit can be made through any of the following modes, namely: -

(i) Internet Banking through authorised banks; (ii) Credit card or Debit card through the authorised bank; (iii) NEFT or RTGS from any bank; or

(iv) Over the Counter payment through authorised banks for deposits up to ` 10,000/- per challan per tax

period, by cash, cheque or demand draft [Section 49 of the CGST Act read with rule 87 of the CGST Rules]

142. Tirupati Box Manufacturing Co. started manufacturing corrugated boxes in Andhra Pradesh on

25.01.20XX. On 06.05.20XX, its aggregate turnover exceeded ` ` ` ` 10 lakh and on 01.11.20XX, its aggregate turnover exceeded ` ` ` ` 20 lakh. It applied for registration on 28.11.20XX and is granted registration certificate on 05.12.20XX. Determine the effective date of registration elaborating therelevant provisions.

[ICAI Mock Test Paper – May 2018– 4 Marks]



Solution: As per section 22 of the CGST Act, a supplier is liable to be registered in the State/ Union territory from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds ` 20 lakh [` 10 lakh in case of special category States except Jammu and Kashmir], within 30 days from the date on which it becomes so liable to registration. Where an applicant submits application for registration within 30 days from the date he becomes liable to registration, effective date of registration is the date on which he becomes liable to registration otherwise it is the date of grant of registration. In the given case, threshold limit of registration for Tirupati Box Manufacturing Co. is ` 20 lakh as it is engaged in making taxable supplies from Andhra Pradesh. The aggregate turnover of Tirupati Box Manufacturing Co. exceeded ` 20 lakh on 01.11.20XX. Thus, it is liable to get registered by 01.12.20XX [30 days] in the State of Andhra Pradesh. Since Tirupati Box Manufacturing Co. applied for registration on 28.11.20XX i.e. before the expiry of 30 days from the date on which it becomes so liable to registration, the effective date of registration in its case is 01.11.20XX. (Notes are compiled by Suraj Sir)

143. Examiner whether the following statements are true or false giving brief reasons:

(1) It is mandatory to issue a tax invoice in case a registered person has opted for composition levy scheme.

(2) A composition tax payer, who has not rendered any taxable supply during a quarter, is not required to file any return.


Solution: (1) The given statement is false. A registered person paying tax under the provisions of section 10

[composition levy] is required to issue, instead of a tax invoice, a bill of supply containing the specified particulars in the prescribed manner [Section 31(3)(c) read with rule 49 of the CGST Rules].

(2) The given statement is false. Composition tax payer is required to furnish return under section 39 for every quarter even if no supplies have been effected during such period. In other words, filing of Nil return is also mandatory.

144. Discuss any two significant benefits of GST.

[ICAI MOCK TEST PAPER – MAY 2018 - 2 Marks]

Solution:

GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry, Government and the consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive.

The significant benefits of GST are discussed hereunder: Creation of unified national market: GST aims to make India a common market with common tax rates and procedures and remove the economic barriers thus paving the way for an integrated economy at the national level. Mitigation of ill effects of cascading: By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the businesses. Elimination of multiple taxes and double taxation: GST has subsumed majority of existing indirect tax levies both at Central and State level into one tax i.e., GST which is leviable uniformly on goods and services. This will make doing business easier and will also tackle the highly-disputed issues relating to double taxation of a transaction as both goods and services. Boost to ‘Make in India' initiative: GST will give a major boost to the ‘Make in India' initiative of the Government of India by making goods and services produced in India competitive in the national as well as international market. Buoyancy to the Government Revenue: GST is expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayer compliance.



145. “State Government has exclusive power to notify a transaction to be supply of goods or services.” Discuss the correctness of the statement.

[GST Sample Questions from ICAI]

Solution: The said statement is not correct. State Government can notify a transaction to be supply of goods or services but only on the recommendations of the GST Council. Further, Central Government or State Government, both on the recommendations of the GST Council, can notify an activity to be the supply of goods and not supply of services or supply of services and not supply of goods or neither a supply of goods nor a supply of services

146. M/s X & Sons, tax consultant of Zenson Ltd., have advised them that reverse charge mechanism is

applicable only to services. Examine the validity of the advice given by M/s X & Sons. [GST Sample Questions from ICAI]

Solution: The advice given by M/s X & Sons is not valid in law. The reverse charge mechanism applies to supplies of both goods and services, as notified by the Government on the recommendations of the GST Council vide section 9(3)/5(3) of CGST/IGST Act, 2017. Notification No. 4/2017-Central Tax (Rate) and 13/2017- Central Tax (Rate) both dated 28/06/2017 have been issued. Similar notifications have been issued under IGST Act also. Reverse charge also applies to supplies received by a registered person from unregistered persons under section 9(4)/5(4) of CGST/IGST Act, 2017. However, the provision of reverse charge liability on supplies received from unregistered persons, as provided in sections 9(4) and 5(4) of the CGST Act and the IGST Act respectively, have been kept in abeyance till 30.09.2019

147. Pepper & Salt Ltd., registered in Madhya Pradesh has the turnover amounting to ` 80 lakh in the financial year 2017-18. It wants to avail the benefit of composition scheme in the year 2018-19. You are required to advise Pepper and Salt Ltd. regarding the availability of composition scheme in the year 2018-19. Will your answer change, if Pepper & Salt Ltd. is registered in Arunachal Pradesh?


Solution: Pepper & Salt Ltd. can avail the benefit of the composition scheme in the year 2018-19 as the threshold for composition scheme is ` 1 Crore* of aggregate turnover in the preceding financial year under section 10(1) of CGST Act, 2017. The benefit of composition scheme can be availed up to the turnover of ` 1 Crore* in current financial year. However, it has to be ensured that Pepper & Salt Ltd. fulfills the following conditions as given under section 10(2) of CGST Act, 2017:-

(i) Pepper & Salt Ltd. is not engaged in the supply of services other than supplies of food articles

(restaurant service).

(ii) It is not engaged in making any supply of goods which are not taxable under the CGST Act/SGST Act/

UTGST Act.

(iii) Pepper & Salt Ltd. do not make any inter-State outward supplies of goods.

(iv) It does not supply goods through an electronic commerce operator.

(v) It does not manufacture ice cream, pan masala and tobacco etc.

*` 75 lakhs for 9 special category states viz 1. Arunachal Pradesh, 2. Assam, 3. Manipur, 4. Meghalaya, 5. Mizoram, 6. Nagaland, 7. Sikkim, 8. Tripura, and 9. Himachal Pradesh. If Pepper & Salt Ltd. is registered in Arunachal Pradesh, it can not avail the benefit of composition

in the year 2018-19 as its turnover in the preceding financial year (`̀̀̀80 lakhs) exceeds the threshold

limit (`̀̀̀75 lakhs).



148. Mr. X availing composition scheme during a financial year crosses the turnover of `1 crore during

the course of the year i.e. say he crosses the turnover of ` 1 Crore in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?


Solution:

No. The option availed shall lapse from the day on which his aggregate turnover during the financial year exceeds ` 1 Crore vide section 10(3) of CGST Act, 2017.

149. LMN & Co, an unregistered supplier under GST wants to claim input tax credit and collect tax. Can

it do so? [GST Sample Questions from ICAI]

Solution:

No, LMN & Co. cannot claim input tax credit and collect tax. A person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him. However, if LMN & Co. nevertheless wants to claim input tax credit and collect tax, it can apply for voluntary registration under section 25(3) of CGST Act, 2017.

150. What is the difference between casual and non- resident taxable persons?


Solution: Casual and Non-resident taxable persons are separately defined in the CGST Act in Sections 2(20) and 2(77) respectively. Some of the differences are outlined below:

Casual Taxable Person Non-Resident Taxable Person

Occasionally undertakes transactions involving supply of goods or services or both in a State or Union territory where he has no fixed place of business.

Occasionally undertakes transactions involving supply of goods or services or both, but has no fixed place of business or residence in India.

Has a PAN Number Do not have a PAN Number; A non- resident person, if having PAN number may take registration as a casual taxable person

Same application form for registration as for normal taxable persons.

Separate application form for registration by nonresident taxable person.

Has to undertake transactions in the course or furtherance of business

Business test is absent in the definition.

Can claim input tax credit of all inward supplies Can get input tax credit only in respect of import of goods and /or services

151. State the necessary elements for a supply to be chargeable to GST.


Solution: The following elements are required to be satisfied for a supply to be chargeable to GST, i.e.-

a) the activity involves supply of goods or services or both; b) the supply is for a consideration unless otherwise specifically provided for; c) the supply is made in the course or furtherance of business; d) the supply is a taxable supply; and e) the supply is made by a taxable person



152. [SUPPLY] - Modest Ltd., registered in Delhi dealing in supply of electronic items transferred some of its stock to its another unit located in Haryana (inter-state transfer). Whether such self-supplies are taxable under GST?


Solution:

Yes, transfer of stock made by Modest Ltd. are taxable under GST. The definition of supply given under section 7 of CGST Act, 2017 is an inclusive one. It does not specify that supply is to be made by one person to the another. So, self-supplies are to be treated as supply in terms of section 7 of CGST Act. Further, section 25(5) provides that where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons. Clause (2) of Schedule I of CGST Act, 2017 inter alia provides that supply of goods between distinct persons as specified in section 25 made in the course or furtherance of business is to treated as supply even if made without consideration. (Notes are compiled by SATC) Inter-state self-supplies such as stock transfers, branch transfers or consignment sales shall be taxable under IGST even though such transactions may not involve payment of consideration. Every supplier is liable to register under the GST law in the State or Union territory from where he makes a taxable supply of goods or services or both in terms of Section 22 of the CGST Act. However, intra-state self supplies are not taxable subject to not opting for registration as business vertical

153. [TIME OF SUPPLY] - Mr. P supplied goods for the value of ` ` ` ` 10,000 to its customer Miss Prem on 01.01.20XX on the condition that payment for the same will be made within a week. However, Miss Prem made payment for the said goods on 02.02.20XX and thus paid interest amounting to ` ` ` ` 500. What is the time of supply with regard to addition in the value by way of interest in lieu of delayed payment of consideration?

[GST Sample Questions from ICAI] Solution: As per section 12(6) of CGST Act, 2017, the time of supply with regard to an addition in value on account of interest, late fee or penalty or delayed payment of consideration shall be the date on which the supplier received such additional consideration. Thus, time of supply in respect of interest would be the date on which the supplier has received such additional consideration, i.e. 02.02.2018. Further, Mr. P is required to make payment on or before 20th of March, 20XX

154. There are separate valuation provisions for CGST, SGST and IGST and for Goods and Services.

Examine the correctness of the statement. [GST Sample Questions from ICAI]

Solution: No, the said statement is not correct. Section 15 of CGST Act determines the value of supply of goods or services or both. Further, section 15 is applicable for determining value of taxable supply under IGST as well vide section 20 of IGST Act. Section 20 of IGST Act inter alia provides that the provisions of CGST Act relating to time and value of supply shall mutatis mutandis apply in relation to integrated tax as they apply in relation to central tax. Thus, section 15 is common for all three taxes and also common for goods and services

155. Whether post-supply discounts or incentives are allowed as admissible deduction under section 15

of the CGST Act? If yes, what are the necessary conditions to be complied with for availing such deduction?


Solution: Yes, post-supply discounts or incentives are allowed as admissible deduction under section 15 of the CGST Act. Where the post-supply discount is established as per the agreement which is known at or before the time of supply and where such discount specifically linked to the relevant invoice and the recipient has reversed input tax credit attributable to such discount, the discount is allowed as admissible deduction under Section 15(3)(b) of the CGST Act.



156. The time of liability to pay GST is independent of the time of supply of goods/ services. Discuss the correctness of the statement?

[GST Sample Questions from ICAI] Solution: The said statement is not correct. Liability to pay arises at the time of supply of goods as explained in Section 12 and at the time of supply of services as explained in Section13 of CGST Act. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections

157. LP Ltd., obtains registration for paying taxes under section 9 of CGST Act. He asked his tax

manager to pay taxes on quarterly basis. However, LP Ltd.’s tax manager advised the Co. to pay taxes on monthly basis. You are required to examine the validity of the advice given by tax manager?

[GST Sample Questions from ICAI] Solution: The advice given by tax manager is valid in law. Payment of taxes by the normal tax payer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the tax payer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. However, payment can also be debited from the Credit Ledger. Payment of taxes for the month of March shall be paid by the 20th of April. Composition tax payers will need to pay tax on quarterly basis.

158. VERY IMP - With reference to the provisions relating to the electronic way bill (E-way bill) as prescribed under the GST laws, answer the following questions:

(i) Sindhi Toys Manufacturers, registered in Punjab, sold electronic toys to a retail seller in

Gujarat, at a value of ` ` ` ` 48,000 (excluding GST leviable @ 18%). Now, it wants to send the consignment of such toys to the retail seller in Gujarat.

You are required to advise Sindhi Toys Manufacturers on the following issues:

(a) Whether e-way bill is mandatorily required to be generated in respect of such movement of goods?

(b) If yes, who is required to generate the e-way bill?

(c) What will be the consequences for non-issuance of e-way bill?

(ii) Power Electricals Ltd., a registered supplier of air-conditioners, is required to send from Mumbai (Maharashtra), a consignment of parts of air-conditioner to be replaced under warranty at various client locations in Gujarat. The value of consignment declared in delivery challan

accompanying the goods is ` ` ` ` 70,000. Power Electricals Ltd. claims that since movement of goods to Gujarat is caused due to reasons other than supply, e-way bill is not mandatorily required to be generated in this case.

You are required to examine the technical veracity of the claim made by Power Electricals Ltd.

(iii) Beauty Cosmetics Ltd. has multiple wholesale outlets of cosmetic products in Mumbai,

Maharashtra. It receives an order for cosmetics worth ` ` ` ` 1,20,000 (inclusive of GST leviable @ 18%) from Prasannaa, owner of a retail cosmetic store in Delhi. While checking the stock, it is

found that order worth ` ` ` ` 55,000 can be fulfilled from the company's Dadar (Mumbai) store and

remaining goods worth ` ` ` ` 65,000 can be sent from its Malad (Mumbai) store. Both the stores are instructed to issue separate invoices for the goods sent to Prasannaa. The goods are transported to Prasanna in Delhi, in a single conveyance owned by Radhey Transporters.

You are required to advise Beauty Cosmetics Ltd. with regard to issuance of e-way bill(s).

[CA FINAL – RTP MAY 2019]

Solution: (i) Rule 138(1) of the CGST Rules, 2017 provides that e-way Bill is mandatorily required to be generated

if the goods are moved, inter alia, in relation to supply and the consignment value exceeds ` 50,000. Further, explanation 2 to rule 138(1) stipulates that the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes CGST, SGST/UTGST, IGST and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.



Accordingly, in the given case, the consignment value will be as follows:

= ` 48,000 x 118%

= ` 56,640.

Since the movement of goods is in relation to supply of goods and the consignment value

exceeds ` ` ` ` 50,000, e-way bill is mandatorily required to be issued in the given case.

(b) An e-way bill contains two parts namely, Part A to be furnished by the registered person who is causing movement of goods of consignment value exceeding ` 50,000/- and part B (transport details) is to be furnished by the person who is transporting the goods.

Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill on the common portal after furnishing information in Part B [Rule 138(2)].

Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B [Rule 138(2A)].

Where the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A [Rule 138(3)].

Where the consignor or the consignee has not generated the e-way bill and the aggregate of the consignment value of goods carried in the conveyance is more than ` 50,000/, the transporter, except in case of transportation of goods by railways, air and vessel, shall, in respect of inter-State supply, generate the e-way bill on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill on the common portal prior to the movement of goods [Rule 138(7)].

(c) It is mandatory to generate e-way bill in all cases where the value of consignment of goods being

transported is more than ` 50,000/- and it is not otherwise exempted in terms of rule 138(14) of CGST Rules, 2017.

If e-way bills, wherever required, are not issued in accordance with the provisions contained in rule 138, the same will be considered as contravention of rules. As per section 122(1)(xiv) of CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of

` ` ` ` 10,000/- or tax sought to be evaded (wherever applicable) whichever is greater.

Moreover, as per section 129(1) of CGST Act, 2017, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the Rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.

(ii) The goods to be moved to another State for replacement under warranty is not a ‘supply'. However, rule 138(1) of the CGST Act, 2017, inter alia, stipulates that every registered person who causes

movement of goods of consignment value exceeding ` 50,000:

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall, generate an electronic way bill (E-way Bill) before commencement of such movement.

CBIC vide Q 9. of FAQs on E-way Bill has also clarified that even if the movement of goods is caused due to reasons others than supply [including replacement of goods under warranty], e-way bill is required to be issued.

Thus, in the given case, since the consignment value exceeds ` 50,000, e-way bill is required to be mandatorily generated. Therefore, the claim of Power Electricals Ltd. that e-way bill is not mandatorily required to be generated as the movement of goods is caused due to reasons other than supply, is not correct.



(iii) Beauty Cosmetics Ltd. would be required to prepare two separate e-way bills since each invoice value

exceeds ` 50,000 and each invoice is considered as one consignment for the purpose of generating e-way bills.

The FAQs on E-way Bill issued by CBIC clarify that if multiple invoices are issued by the supplier to one recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple e-way bills have to be generated. In other words, for each invoice, one e-way bill has to be generated, irrespective of the fact whether same or different consignors or consignees are involved. Multiple invoices cannot be clubbed to generate one e-way bill. However, after generating all these e-way bills, one consolidated e-way bill can be prepared for transportation purpose, if goods are going in one vehicle.

159. VERY IMP: Shubhlaxmi Foods is engaged in supplying restaurant service in Maharashtra. In the

preceding financial year, it has a turnover of ` ` ` ` 90 lakh from the restaurant service and ` ` ` ` 10 lakh

from the supply of farm labour in said State. Further, it has also earned a bank interest of ` ` ` ` 10 lakh from the fixed deposits. Shubhlaxmi Foods wishes to opt for composition scheme in the current year. You are required to advise Shubhlaxmi Foods on the same. Would your answer be different if Shubhlaxmi Foods is engaged in milling of paddy into rice on job

work basis instead of supply of farm labour and the turnover from the said activity is ` ` ` ` 9 lakh? [CA FINAL – RTP NOV 2018]

Solution:

As per section 10(1) of the CGST Act, 2017, a registered person, whose aggregate turnover in the preceding financial year did not exceed ` 1 crore, may opt to pay, in lieu of the tax payable by him, an amount calculated at the specified rates if, inter alia, he is not engaged in the supply of services other than restaurant services. However, the restriction on service provider not to be engaged in any service other than restaurant service for being eligible for composition levy has been relaxed vide Order No. 01/2017 CT dated 13.10.2017. The said order clarifies that:

(i) if a person supplies goods and/or services referred to in clause (b) of paragraph 6 of Schedule II of

the said Act (restaurant service) and also supplies any exempt services including services by

way of extending deposits, loans or advances in so far as the consideration is represented by

way of interest or discount, the said person shall not be ineligible for the composition scheme

under section 10 of the CGST Act, 2017 subject to the fulfilment of all other conditions specified

therein.

(ii) in computing his aggregate turnover in order to determine his eligibility for composition scheme,

value of supply of any exempt services including services by way of extending deposits, loans or

advances in so far as the consideration is represented by way of interest or discount, shall not be

taken into account.

In the given case, the two other services provided by Shubhlaxmi Foods apart from the restaurant service, viz. the services of supply of farm labour and services by way of extending deposits where the consideration is represented by way of interest, are exempt from GST vide Notification No. 12/2017 CT (R) dated 28.06.2017. Thus, in view of the aforementioned order, since other services supplied by Shubhlaxmi Foods apart from restaurant service are exempt services, Shubhlaxmi Foods is not ineligible for the composition scheme. Further, in computing his aggregate turnover in order to determine the eligibility of Shubhlaxmi Foods for composition scheme, value of supply of exempt services - supply of farm labour and bank interest shall not

be taken into account. Thus, the aggregate turnover of Shubhlaxmi Foods is ` 90 lakh (turnover from restaurant services). From the aforesaid discussion, it can be inferred that Shubhlaxmi Foods is eligible for composition scheme.



However, if Shubhlaxmi Foods is engaged in milling of paddy into rice instead of supply of farm labour, it will not be eligible for composition levy since as per Order No. 01/2017 CT, a person supplying restaurant services is eligible for composition levy only when other services provided by it are exempt services and milling of paddy into rice on job work basis is not an exempt service as clarified by Circular No. 19/19/2017 GST dated 20.11.2017.

160. Jai, a registered supplier, runs a general store in Ludhiana, Punjab. Some of the goods sold by him

are exempt whereas some are taxable. You are required to advise him on the following issues: (i) Whether Jai is required to issue a tax invoices in all cases, even if he is selling the goods to the

end consumers?

(ii) Jai sells some exempted as well as taxable goods valuing ` ` ` ` 5,000 to a school student. Is he

mandatorily required to issue two separate GST documents?

(iii) Jai wishes to know whether it’s necessary to show tax amount separately in the tax invoices

issued to the customers. You are required to advise him.

[CA FINAL – RTP NOV 2018]

Solution:

(i) As per section 31(1) of the CGST Act, 2017, every registered person supplying taxable goods is

required to issue a tax invoice. Section 31(3)(c) of the CGST Act, 2017 stipulates that every registered

person supplying exempted goods is required to issue a bill of supply instead of tax invoice.

Further, as per section 31(3)(b) of the CGST Act, 2017 read with rule 46 of theCGST Rules, 2017, a registered person may not issue a tax invoice if:

(i) value of the goods supplied <` 200,

(ii) the recipient is unregistered; and

(iii) the recipient does not require such invoice.

Instead such registered person shall issue a Consolidated Tax Invoice for such supplies at the close of each day in respect of all such supplies.

(ii) As per rule 46A of the CGST Rules, 2017, where a registered person is supplying taxable as well as

exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply”

may be issued for all such supplies. Thus, there is no need to issue a tax invoice and a bill of supply

separately to the school student in respect of supply of the taxable and exempted goods respectively.

(iii) As per Section 33 of the CGST Act, 2017, where any supply is made for a consideration, every person

who is liable to pay tax for such supply shall prominently indicate in all documents relating to

assessment, tax invoice and other like documents, the amount of tax which shall form part of the price

at which such supply is made. Hence, Jai has to show the tax amount separately in the tax invoices

issued to customers. Contact through whatsapp for PDF notes at 9953006445

161. Prem is running a consulting firm and also a fancy store, registered under the same PAN number.

Turnover of the fancy store is ` ` ` ` 65,00,000 and receipt of consultancy firm is `̀̀̀ 10,00,000 in the preceding financial year.

You are required to provide answers with supporting explanatory note for each answer to the following questions:

(i) Is Prem eligible for composition scheme under CGST Act?

(ii) Whether it is possible for Prem to opt for composition scheme only for fancy store?

(iii) If Prem is running a restaurant with turnover of ` ` ` ` 65,00,000 instead of consultancy firm as well

as a fancy store, would he be eligible for composition scheme?

[CA FINAL EXAM QUESTION – MAY 2018 – 3 MARKS]



Solution:

(i) No, Prem is not eligible for composition scheme as he is providing services as a consulting firm.

Section 10(2)(a) of the CGST Act, 2017 provides that a registered person cannot opt for composition

scheme if he is engaged in the supply of services other than restaurant services.

(ii) No, it is not possible for Prem to opt for composition scheme only for fancy store . All the registrations

under the same PAN have to opt for composition scheme in terms of proviso to section 10(2) of the

CGST Act, 2017. Since the supply of consultancy service is ineligible for composition scheme, supply

of goods in fancy store too becomes ineligible for composition scheme.

(iii) No, Prem is not eligible for composition scheme if he is running a restaurant with turnover of `

65,00,000 instead of consultancy firm as well as fancy store . Section 10(1) of the CGST Act, 2017

read with Notification No. 46/2017 CT dated 13.10.2017 provides that an eligible registered person

whose aggregate turnover in the preceding financial year did not exceed ` 1 crore may opt to pay tax

under composition levy.

Therefore, even though Prem provides restaurant service, which is an eligible service for composition

levy, since his aggregate turnover [` 65 lakh for fancy store + ` 65 lakh for restaurant service] in the preceding financial year exceeds ` 1 crore, Prem is not eligible for composition levy.

162. Pari & Sons is an unregistered dealer. On 10th August, 2018 aggregate turnover of Pari & Sons

exceeded ` ` ` ` 20,00,000. The firm applied for registration on 27th August, 2018 and was granted the registration certificate on 1st September, 2018.

Under CGST Rules, 2017, you are required to advise Pari & Sons as to what is the effective date of registration in its case. It has also sought your advice regarding period for issuance of revised tax invoices.


Solution: Section 22(1) of the CGST Act, 2017 provides that every supplier is liable to be registered under this Act in

the State or Union territory, other than special category States, from where he makes a taxable supply of

goods or services or both, if his aggregate turnover in a financial year exceeds ` 20 lakh.

Section 25(1) of the CGST Act, 2017 provides that a supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT is liable to apply for registration within 30 days from the date of becoming

liable to registration (i.e., the date of crossing the threshold limit of ` 20 lakh). Where the application is submitted within the said period, the effective date of registration is the date on which the person becomes liable to registration vide rule 10(2) of the CGST Rules, 2017; otherwise it is the date of grant of registration in terms of rule 10(3) of the CGST Rules, 2017. In the given case, since Pari & Sons have applied for registration on 27.08.2018 which is within 30 days from the date of becoming liable to registration (10.08.2018), its effective date of registration is 10.08.2018.

Further, every registered person who has been granted registration with effect from a date earlier than the date of issuance of registration certificate to him, may issue revised tax invoices in respect of taxable supplies effected during this period within 1 month from the date of issuance of registration certificate [Section 31(3)(a) of the CGST Act, 2017 read with rule 53(2) of CGST Rules, 2017]. In view of the same, Pari & Sons may issue revised tax invoices against the invoices already issued

during the period between effective date of registration (10.08.2018) and the date of issuance of registration certificate (01.09 2017), on or before 01.10.2018.

163. Mr. Anand Kumar, a regular taxpayer, filed his return of outward supply (GSTR-1) for the month of August, 2018 before the due date. Later on, in February, 2019 he discovered error in the GSTR-1 return of August 2018 already filed and wants to revise it. You are required to advise him as to the future course of action to be taken by him according to statutory provisions.




Solution:

The mechanism of filing revised return for any correction of errors/omission is not available under GST. The

rectification of errors/omission is allowed in the subsequent returns.

Therefore, Mr. Anand Kumar who discovered an error in GSTR-1 for August, 2018, cannot revise it. However, he should rectify said error in the GSTR -1 filed for February, 2019 and should pay the tax and interest, if any, in case there is short payment, in the return to be furnished for February, 2019. The error can be rectified by furnishing appropriate particulars in the “Amendment Tables” contained in GSTR -1. However, as per section 37(3) of the CGST Act, 2017, no rectification of details furnished in GSTR-1 shall be allowed after: (i) filing of monthly return/ GSTR-3 for the month of September following the end of the financial year to

which such details pertain or

(ii) filing of the relevant annual return whichever is earlier.

164. Vayu Ltd. provides you the following particulars relating to goods supplied by it to Agni Ltd.:

Particulars `̀̀̀

List price of the goods (exclusive of Taxes and discounts). 76,000 Special packing at the request of customer to be charged to the customer. 5,000 Duty levied by local authority on the sale of such goods. 4,000 CGST and SGST charged in invoice. 14,400

Subsidy received from a NGO (The price of ` ` ` ` 76,000 given above is after 5,000 considering the subsidy) Vayu Ltd. offers 3% discount of the list price of the goods which is recorded in the invoice for the goods.Determine the value of taxable supplies made by Vayu Ltd.


Solution: Computation of value of taxable supplies by Vayu Ltd.

Particulars `̀̀̀

List price of the goods 76,000 Add: Special packing [Note 1] 5,000 Duty levied by local authority on sale of goods [Note 2] 4,000 CGST and SGST charged [Note 2] - Subsidy received from a NGO [Note 3] 5,000 Less: Discount offered 2,280

= 3% of List price = ` 76,000 × 3% [Note-4] Value of taxable supplies 87,720

Notes: 1. Being incidental expenses charged by the supplier to the recipient of supply, packingcharges are

includible in the value as per section 15(2)(c) of the CGST Act, 2017.

2. Taxes, duties, etc. levied under any law for the time being in force other than CGST, SGST/UTGST, IGST are includible in the value as per section 15(2)(a) of CGST Act, 2017. Duty levied by local authority on sale of goods has been assumed to be recovered from Agni Ltd. and not included in the list price of the goods.

3. Subsidy directly linked to the price received from a non -Government body is includible in the value in terms of section 15(2)(e) of CGST Act, 2017.

4. Since discount is known at the time of supply, it is deductible from the value in terms of section 15(3)(a) of CGST Act, 2017



165. Mr. NY, a supplier of goods pays GST under regular scheme. Mr. NY is not eligible for any threshold exemption. He has made the following outward taxable supplies during September 2018:

Particulars Rate of Tax Amount (`̀̀̀) CGST SGST IGST

Intra State Supply of goods Product A 6% 6% - 8,00,000 Product B 9% 9% - 2,00,000 Inter State Supply of goods Product A - - 12% 3,00,000 Product B - - 18% 1,50,000

He has also furnished the following information in respect of supplies received by him during September 2018:

Particulars Rate of Tax Amount ( `̀̀̀) CGST SGST IGST Intra State Supply of goods

Product A 6% 6% - 2,00,000 Product B 9% 9% - 1,00,000 Inter State Supply of goods Product A - - 12% 1,50,000 Product B - - 18% 80,000

Mr. NY has following ITCs with him at the beginning of September 2017:

Particulars `̀̀̀

CGST 40,000 SGST 28,000 IGST 44,600

Note: (i) Both inward and outward supplies are exclusive of taxes, wherever applicable. (ii) All the conditions necessary for availing the ITC have been fulfilled.

Compute net GST payable by Mr. NY for the month of September 2018. Make suitable assumptions wherever required.

[CA FINAL EXAM QUESTION – MAY 2018 – 5 MARKS] Solution:

Computation of GST payable by Mr. NY for the month of September, 2018

S.No. Particulars CGST (`) SGST (`) IGST (`)

(i) Intra-State supply of goods Product A 48,000 48,000 Product B 18,000 18,000 (ii) Inter-State supply of goods Product A 36,000 Product B 27,000

Total 66,000 66,000 63,000



Computation of total ITC available

S.No. Particulars CGST (`̀̀̀) SGST (`̀̀̀) IGST (`̀̀̀)

(i) Opening balance 40,000 28,000 44,600 (ii) Intra-State supply of goods Product A 12,000 12,000 Product B 9,000 9,000 (iii) Inter-State supply of goods Product A 18,000 Product B 14,400

Total 61,000 49,000 77,000

Computation of net GST payable (from cash ledger)

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

GST payable 66,000 66,000 63,000 Less: ITC (61,000)-CGST (49,000)-SGST (63,000)-IGST (5,000)-IGST (9,000)-IGST Net GST payable Nil 8,000 Nil

Note: ITC of IGST has been used to pay IGST, CGST and SGST in that order.

166. SarvaSugam Charitable Trust, a trust registered under section 12AA of the Income Tax Act, 1961

provides the following information relating to supply of its services for the month of August 2018:

`̀̀̀ Renting of residential dwelling for use as a residence 18,00,000

Renting of rooms for pilgrims (Charges per day ` ` ` ` 1,200) 8,00,000

Renting of rooms for devotees (Charges per day ` ` ` ` 750) 6,00,000

Renting of kalyanamandapam (Charges per day ` ` ` ` 15,000) 12,00,000

Renting of halls and open space (Charges per day ` ` ` ` 7,500) 10,75,000

Renting of shops for business (Charges per month ` ` ` ` 9,500) 4,75,000

Renting of shops for business (Charges per month ` ` ` ` 12,000) 7,50,000 Compute the total taxable value of supply for the month of August 2018 assuming that the above amounts are exclusive of GST.

[CA FINAL EXAM QUESTION – MAY 2018 – 5 MARKS] Solution:

Notification No. 12/2017 CT (R) dated 28.06.2017 /Notification No. 9/2017 IT (R) dated 28.06.2017[exemption notification] provides exemption to renting of precincts of a religious place meant for general public, owned/managed by, inter alia, an entity registered as a charitable trust under section 12AA of the Income -tax Act are exempt. However, exemption is not available if:

(i) charges for rented rooms are ` 1,000 per day or more; (ii) charges for rented community halls, Kalyanmandapam, open area are ` 10,000 per day or more;

(iii) charges for rented shops are ` 10,000 per month or more. In view of the aforesaid provisions, value of supply of Sarva Sugam Charitable Trust for August, 2018 has been computed as under:

Computation of value of supply of SarvaSugam Charitable Trust for August, 2018


Renting of residential dwelling for use as residence Nil [Exempt vide exemption notification] Renting of rooms for pilgrims 8,00,000

[Since charges per day are not below ` 1,000] Renting of rooms for devotees Nil [Since charges per day are below ` 1,000] Renting of KalyanaMandapam 12,00,000



[Since charges per day are not below ` 10,000]

Renting of halls and open spaces Nil [Since charges per day are below ` 10,000]

Renting of shops for business Nil [Since charges per month are below ` 10,000]

Renting of shops for business 7,50,000

[Since charges per month are not below ` 10,000]


Note: The question does not specify whether the rooms/KalyanMandapam/Halls/Open space/shops owned by a trust registered under section 12AA of the Income -tax Act, 1961 are located within the precincts of the religious place meant for general public or not. In the above answer, it has been assumed that the immovable properties are situated inside the precincts of the religious place meant for general public.

However, the question can also be answered by assuming the various immovable properties to be situated outside the precincts of the religious place meant for general public .

167. Discuss the provisions relating to issue of an invoice/document in the following circumstances:

(i) Advance payment is received against a supply, but subsequently no supplies are made.

(ii) Goods are sent on approval for sale or return and are removed before the supply takes place.

(iii) Malcolm provides continuous supply of services to his client, where the due date of payment

for such services is not ascertainable. No advance has been received in this behalf.


Solution: (i) As per section 31(3)(e) of CGST Act, 2017, where advance payment is received against a supply for

which receipt voucher has been issued, but subsequently no supplies are made and no tax invoice is issued in pursuance thereof, a refund voucher has to be issued to the person who had made the advance payment.

(ii) As per section 31(7) of CGST Act, 2017, where the goods are sent on approval for sale or return and

are removed before the supply takes place, the invoice shall be issued before or at the time of supply or 6 months from the date of removal, whichever is earlier.

(iii) As per section 31(5)(b) of CGST Act, 2017, in case of continuous supply of services, where the due

date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment.

168. [SUPPLY] - How the tax liability on composite and mixed supplies is determined under GST law? Answer in single sentence each.

[CA FINAL EXAM QUESTION - IDT NOV 2017 – 2 Marks] Solution: A composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply vide section 8(a) of CGST Act, 2017.

A mixed supply comprising of two or more supplies shall be treated as supply of that particular supply that attracts highest rate of tax in terms of section 8(b) of CGST Act, 2017. Contact through whatsapp for PDF notes at 9953006445

169. Define 'intra State supply' and 'inter-State supply' under GST law. Is it correct to say that inter-State supply attracts both CGST and SGST?

[CA FINAL EXAM QUESTION - IDT NOV 2017- 3 Marks]

Solution: Where the location of the supplier and the place of supply of goods or services are in the same State/Union territory, it is treated as intra-State supply of goods or services respectively.



Where the location of the supplier and the place of supply of goods or services are in (i) two different States or (ii) two different Union Territories or (iii) a State and a Union territory, it is treated as inter-State supply of goods or services respectively.

No, it is not correct to say that inter-State supply attracts both CGST and SGST as inter-State supply attracts IGST. However, IGST is the sum total of CGST and SGST/UTGST.

170. [ITC] - Bring out the salient features of cross utilization of Input Tax Credit (ITC) under the GST

Law? [CA FINAL EXAM QUESTION - IDT NOV 2017 – 3 Marks]

Solution: (i) CGST credit cannot be utilized for payment of SGST/UTGST. (ii) SGST/UTGST credit cannot be utilized for payment of CGST. (iii) Credit of IGST can be utilized for the payment of CGST/SGST/UTGST and vice versa.

171. M/s Jonty India Ltd. a manufacturer of heavy machines registered at Jaipur (Rajasthan) supplied

one machine to M/s. Dhanuka Ltd. of Udaipur (Rajasthan) on 05-02-2019 under an invoice of the same date. Using the information given below, compute the value of the machine and the GST payable (CGST & SGST or IGST as the case may be) in cash for the month of February, 2019 by M/s Jonty India Ltd. with appropriate working notes.

Assume Rate of CGST, SGST and IGST on the machine to be 9%, 9% and 18% respectively.

Sl. No. Particulars Amount in `

(i) The Basic price of the machine (exclusive of taxes and discount). 28,50,000 (ii) Trade discount is allowed at 3% on the basic price and is shown in the

invoice. 85,500

(iii) Secondary packing (in iron sheets) charges for safe transportation of the machine on the request of buyer.

30,000

(iv) Design and engineering charges of the machine 90,000 (v) Tax levied by Municipal Authority on the sale of the machine. 25,000 (vi) Subsidy received by the supplier from the State Government to

encourage manufacture of the machine. 80,000

(vii) Pre-delivery inspection charges paid to an independent agency in terms of the agreement for supply. The amount was paid by M/s. Dhanuka Ltd.

22,000

(viii) Interest amount paid by M/s. Dhanuka Ltd. for delay in payment for the machine.

12,000

Inward Supplies (i) IGST paid on food items for consumption by employees working in the

factory. 8,000

(ii) SGST and CGST (` ` ` ` 15,000 each) paid on Electrical transformer used in the manufacturing process.

30,000

Note:

(i) M/s Jonty India Ltd. has no input tax credit balance at the beginning of February, 2019. All the other conditions necessary for availing the eligible input tax credit have been fulfilled.

(ii) There are no other transactions of supplies during the month of February, 2019.

(iii) M/s Jonty India Ltd. and M/s. Dhanuka Ltd. are not related persons.

[CA FINAL EXAM QUESTION – NOV 2018 (New) – 10 MARKS]



Solution:

(a) Computation of value of machine sold by M/s. Jonty India Ltd.

Particulars `

Basic price of machine 28,50,000

Add: Secondary packing [Note 1(i)] 30,000

Design and engineering charges [Note 1(ii)] 90,000

Tax leved by Municipal Authority [Note 1(iii)] 25,000

Pre-delivery inspection charges paid by M/s. Dhanuka Ltd. [Note 1(iv)] 22,000

Interest for delay in payment [` 12,000 x 100/118] [Note 1(v)] - (rounded off) 10,169

Less: 3% Trade discount on basic price of machinery = ` 28,50,000 * 3% [Note 2] (85,500)

Taxable value of supply 29,41,669

Computation of net GST payable (in cash) by M/s. Jonty India Ltd. for the month of February, 2019

Particulars CGST @ 9% (`)

SGST @ 9% (`)

T ax on value of ` 29,41,669 (rounded off) 2,64,750 2,64,750

Less: Input tax credit [ITC] of tax paid on electrical 15,000 15,000

transformer used in the manufacturing process [Note 3]

Net GST payable 2,49,750 2,49,750

Notes:

(1) As per section 15(2) of the CGST Act, 2017-

(i) All incidental expenses, including packing, charged by the supplier to the recipient of a supply are includible in the value of supply.

(ii) Any amount charged for anything done by the supplier in respect of the supply of goods at the time of, or before delivery of goods is includible in the value of supply.

(iii) Any taxes levied under any law for the time being in force other than CGST/SGST/UTGST/IGST, if charged separately by the supplier are includible in the value of supply.

(iv) Any amount that the supplier is liable to pay in relation to such supply, but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods and/or services is includible in the value of supply.

(v) Interest for the delayed payment of any consideration for any supply is includible in the value of supply. Further, it is assumed that such interest is inclusive of tax and that the same has been received by M/s. Jonty India Ltd. in the month of February itself. Therefore, the time of supply of such interest will be in February, 2019 and the same will be considered while paying the tax liability of that month.

(vi) Subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments are includible in the value of supply. Since in the given case, subsidy is received from State Government, the same has not been included in the value of supply presuming it to be directly linked to the price.*

(2) Trade discount has been shown in the invoice and hence, the same is excluded from the value of supply in terms of section 15(3) of the CGST Act, 2017.

(3) ITC on food or beverages is specifically disallowed unless the same is used for making outward taxable supply of the same category or as an element of the taxable composite or mixed supply

1

[Section 17(5)]. Further, since transformers are used in the course or furtherance of business, ITC thereon is available in terms of section 16(1).

Note- In the above answer, it has been assumed that the basic price of the machine has been arrived at after adjusting the subsidy and that the basic price is the price charged from the customer.

Consequently, subsidy received from State Government has not been reduced from the basic price of the machine while arriving at the taxable value of supply.

However, it is also possible to assume that the subsidy has yet not been adjusted in the basic price and that the price which will be charged from the customer is ` 27,70,000 (` 28,50,000 - ` 80,000)

i.e., after excluding subsidy. In that case, the value of supply will be ` 28,61,669.



172. Chiku Traders is a registered supplier of plastic goods. On 10th

April, 2018, Chiku Traders received an order from Neelu Traders for supply of a consignment of plastic goods. Chiku Traders gets the consignment ready by 15

th April, 2018. The invoice for the consignment was issued the next day,

15th

April, 2018. Neelu Traders collects the consignment from the godown of Chiku Traders on 25th

April, 2018 and hands over the cheque towards payment on the same date. The said payment is entered in the books of accounts of Chiku Traders on 26

th April, 2018 and amount is credited in their

bank account on 27th

April, 2018.

Determine the time of supply of the plastic goods supplied by Chiku Traders to Neelu Traders as per the provisions of CGST Act, 2017.

[CA FINAL EXAM QUESTION – NOV 2018 (New) – 5 MARKS] Solution: A registered person (excluding composition supplier) has to pay GST on the outward supply of goods at the time of supply as specified in section 12(2)(a) of the CGST Act, 2017, i.e. date of issue of invoice or the last date on which invoice ought to have been issued in terms of section 31(1).

As per section 31, the invoice in case of supply of goods needs to be issued either before or at the time of removal/delivery of goods.

In this case, the invoice is issued before the removal of the goods and is thus, within the time limit prescribed under section 31(1). Therefore, time of supply is the date of issue of invoice, which is 16

th April,

2018*. 1

*Note: In the question, the date of issue of invoice to be read as 16th April, 2018. It can also be answered by

taking date of invoice as given in question, i.e. 15th

April, 2018. In that case, the time of supply will be 15th

April, 2018.

173. M/s Heeralal and Sons registered in Karnataka has opted to avail the benefit of composition

scheme. It has furnished the following details for the tax period ended on 30-06-2018.

S. No. Items `

(i) Taxable turnover of goods within the state 15,00,000 (ii) Exempted turnover of goods within the state 17,00,000 Total Turnover 32,00,000

Using the above information, calculate total GST (No need for bifurcation between CGST and SGST) to be paid by the firm for the tax period ended on 30-06-2018 in following independent situations:

(i) M/s Heeralal and Sons is a Manufacturer (ii) M/s Heeralal and Sons is a Trader

[CA FINAL EXAM QUESTION – NOV 2018 (New) – 3 MARKS] Solution: Computation of amount payable under composition scheme

(i) If M/s Heeralal and Sons is a manufacturer:

T ax is to be paid @ 1% (CGST+SGST) of the turnover in the State as under:

1% of ` 32,00,000 [` 15,00,000 + 17,00,000]

= ` 32,000

(ii) If M/s Heeralal and Sons is a trader:

T ax is to be paid @ 1% (CGST+SGST) of the turnover of taxable supplies of goods in the State as under:

1% of ` 15,00,000 = ` 15,000

174. On 25

th August, 2018, M/s Agarwal & Agarwal Ltd., a registered supplier of textile products located

in Bengaluru (Karnataka) purchased one machine for ` 12,39,000 including IGST, from one supplier of Maharashtra who issued invoice on the same date. M/s Agarwal & Agarwal Ltd. put the machinery to use on the same day and availed input tax credit for the eligible amount.

M/s Agarwal & Agarwal Ltd. sold this machine after using the machine in the process of

manufacture of taxable goods for ` ` ` ` 7,50,000 excluding IGST, to Mr. Suresh Kumar of Andhra Pradesh on 20

th August 2019.

During purchase as well as sale of the machinery, the IGST rate applicable was 18%.

Is M/s Agarwal & Agarwal Ltd., required to pay GST? If yes, calculate the amount of tax payable under GST Laws at the time of sale of the machine. Also briefly state the relevant statutory provisions.

Note: Assume that there was no change in legal position after August, 2019.

[CA FINAL EXAM QUESTION – NOV 2018 (New) – 5 MARKS]



Solution:

As per section 18 of the CGST Act, 2017, if capital goods/ plant and machinery on which input tax credit (ITC) has been taken are supplied outward by a registered person, he must pay an amount that is higher of the following:

(a) ITC taken on such goods reduced by 5% per quarter of a year or part thereof from the date of issue of invoice for such goods or


Accordingly, the amount payable on supply of machinery by M/s Agarwal & Agarwal Ltd. shall be computed as follows:

Particulars `

ITC taken on the machinery (` 12,39,000 x 18/118) 1,89,000

Less: Input tax credit to be reversed @ 5% per quarter for the period of use of machine (i) For the year 2018-19 = (` 1,89,000 x 5%) x 3 quarters 28,350

(ii) For the year 2019-20 = (` 1,89,000 x 5%) x 2 quarters 18,900

Amount required to be paid (A) ** 1,41,750

Duty leviable on transaction value (` 7,50,000 x 18%) (B) 1,35,000

Amount payable towards disposal of machine is higher of (A) and (B) 1,41,750 Thus, M/s Agarwal & Agarwal Ltd. is required to pay GST amounting to ` 1,41,750 at the time of sale of machinery.

** In the above solution, amount payable towards disposal of machine has been computed on the basis of provisions of section 18(6) of the CGST Act, 2017 read with rule 40(2) of the CGST Rules, 2017 [wherein ITC to be reversed for the period of use of capital goods/machine has been computed @ 5% for every quarter or part thereof from the date of the issue of invoice].

175. Happy Ltd. located at Alwar (Rajasthan), exclusively manufactures and sells the product "Shine & Shine", which is exempt from GST. Happy Ltd. sells "Shine & Shine" only within Rajasthan. The

turnover of Happy Ltd. in the previous year was `̀̀̀ 60 lakhs. Happy Ltd. purchased additional machinery (Capital Goods) for manufacturing "Shine & Shine" on 1

st April, 2018. The invoice for

supply of machinery also was issued on 1st

April, 2018. The purchase price of the machinery was `̀̀̀ 25 lakh exclusive of CGST and SGST @ 12% (6% + 6%). On 1

st December, 2018 exemption

available on the product "Shine & Shine" was withdrawn by the Central Government and CGST and SGST @18% (9% + 9%) was imposed thereon. The turnover of Happy Ltd. on 30

th September, 2018

was `̀̀̀ 45 lakh.

Examine the issue and provide the answers (with supporting explanatory note for each answer) to the following:

(i) Does Happy Ltd. have to register under CGST Act, 2017?

(ii) Can Happy Ltd. take Credit of tax paid on the machinery purchased? If yes, what is the amount of Input Tax Credit (ITC) that can be availed?

[CA FINAL EXAM QUESTION – NOV 2018 (New) – 5 MARKS] Solution: i. As per section 22 of the CGST Act, 2017, a supplier is liable to be registered under GST in the State/

UT from where he makes the taxable supply if his aggregate turnover in a financial year(FY) exceeds `

20 lakh in such State/UT (` 10 lakh in a Special Category State other than Jammu and Kashmir). The

term ‘aggregate turnover' includes exempt turnover also. However, a person exclusively engaged in making exempt supplies is not liable to registration in terms of section 23(1) of CGST Act, 2017. In view of combined reading of above provisions, although the ‘aggregate turnover' of Happy Ltd. exceeds the applicable threshold limit of ` 20 lakh on 30.09.2018 [` 45 lakh], it was not required to be registered till 30.11.2018 as it supplied only exempted goods till that day. Therefore, Happy Ltd. needs to register within 30 days from 01.12.2018 (the date on which its supplies

became taxable) as its turnover had already exceeded the threshold limit of ` 20 lakh on 01.12.2018.



ii. As per section 17 of the CGST Act, the input tax credit (ITC) on capital goods used or intended to be used exclusively for effecting exempt supplies is disallowed. However, where an exempt supply by a registered person becomes a taxable supply, such person gets entitled to take proportionate ITC on such capital goods in terms of section 18(1)(d) of CGST Act, 2017. Thus, a non-registered person cannot take ITC on capital goods under this provision. Further, a person who has applied for registration within thirty days from the date on which he becomes liable to registration and has been granted such registration is also not entitled to take ITC on capital goods held with him on the day immediately preceding the date from which he becomes liable to pay tax in terms of section 18(1)(a) of CGST Act, 2017. In the given case, Happy Ltd. is not registered at the time when its exempt supply becomes taxable. Thus, the company cannot take proportionate ITC on capital goods as mentioned above. Further, the company will also not be entitled for credit on capital goods held with it when it applies for registration in the prescribed manner.

176. Miss Nitya has following balances in her Electronic Cash Ledger as on 28/02/2018 as per GST

portal.

Major Heads Minor Heads Amount ( `̀̀̀)

CGST Tax 40,000

Interest 1,000

Penalty 800

SGST Tax 80,000

Interest 400

Penalty 1,200

Fee 2,000

IGST Tax 45,000

Interest 200

Penalty Nil

Her tax liability for the month of February, 2018 for CGST and SGST was `̀̀̀ 75,000 each. She failed to pay the tax and contacted you as legal advisor on 12/04/2018 to advise her as to how much amount of tax or interest she is required to pay, if any, by utilizing the available balance to the maximum extent possible as per GST Laws. She wants to pay the tax on 20-04-2018.

Other Information:-

(i) Date of collection of GST was 18th

February, 2018.

(ii) No other transaction after this up to 20th

April 2018.

(iii) Ignore penalty for this transaction.

(iv) No other balance is available.

You are required to advise her with reference to legal provisions with brief notes on the legal provisions applicable.

[CA FINAL EXAM QUESTION – NOV 2018 (New) – 4 MARKS] Solution: Due date for payment of tax collected on 18.02.2018 is 20.03.2018. Interest @ 18% p.a. is payable for the period for which the tax remains unpaid in terms of section 50 of CGST Act, 2017. In the given case, since Miss Nitya wants to pay the tax on 20.04.2018, interest payable on the amount of CGST and SGST each is as follows:

` 75,000 x 18% x 31/365 = `1,147 (rounded off)

Amount entered under any Minor head (Tax, Interest, Penalty, etc.) and Major Head (CGST, IGST, SGST/UT GST) of the Electronic Cash Ledger can be utilized only for that liability. Cross-utilization among Major and Minor heads are not possible. Contact through whatsapp for PDF notes at 9953006445



Thus, Miss Nitya is liable to pay the following amount of tax and interest as under:

CGST SGST

Tax Interest Tax Interest

Tax Liability 75,000 1,147 75,000 1,147

Balances in Electronic cash ledger 40,000 1,000 80,000 400

Amount payable in cash 35,000 147 Nil 747

177. Quanto Ltd. is not required to register under CGST Act, 2017, but it wishes to obtain voluntary registration, so it applied for voluntary registration on 17

th September, 2018 and registration

certificate has been granted to it on 25th September, 2018. The CGST and SGST liability for the

month of September, 2018 is `̀̀̀ 24,000 each.

Quanto Ltd. provides the following information of inputs and capital goods held in stock on 24th

September, 2018. It is not engaged in making inter-State outward taxable supplies.


Input procured on 02-09-2018 lying in stock -CGST@6% 4,500 -SGST@6% 4,500 Input received- on 21-07-2018 contained in semi-finished goods held in stock: -CGST@6% 7,500 -SGST@6% 7,500 Value of inputs contained in finished goods held in stock '2,00,000 were procured on 19-09-2017 - IGST @ 18% 36,000 Inputs valued at '50,000 procured on 13-09-2018 lying in stock: - IGST @ 18% 9,000 Capital goods procured on 12-09-2018 -CGST@6% 12,000 -SGST@6% 12,000

You are required to compute the amount of tax to be paid in cash by Quanto Ltd. for the month of September, 2018.

You are also required to mention reasons for treatment of all above items.

[CA FINAL EXAM QUESTION – NOV 2018 (Old) – 10 MARKS] Solution: Computation of net GST liability (to be paid in cash) by Quanto Ltd. for the month of September, 2018

Particulars CGST ( `̀̀̀) SGST (`̀̀̀)

Output tax liability for the month 24,000 24,000

Less: Input tax credit (ITC) [Refer note-2 below] 12,000 12,000

9,000 (IGST)

Net GST payable (in cash) 3,000 12,000

Notes:

1. Credit of IGST shall be utilized towards payment of IGST, CGST and SGST in that order. Since Quanto Ltd. does not make any inter-State supply, credit of IGST has been utilized towards payment of CGST [Section 49(5) of the CGST Act, 2017].

2. As per section 18(1 )(b) of the CGST Act, 2017-

A person who takes voluntary registration is entitled to take credit of input tax in respect of:

• inputs held in stock and

• inputs contained in semi-finished/ finished goods held in stock on the day immediately preceding the date of grant of registration.

However, he cannot take ITC in respect of capital goods held on the day immediately preceding the date of grant of registration.

ITC on inputs needs to be availed within 1 year from the date of issue of the invoice by the supplier [Section 18(2) of the CGST Act, 2017].

In this case, since Quanto Ltd. has been granted voluntary registration on 25.09.2018, it will be entitled to ITC on inputs held in stock and inputs contained in semi-finished/ finished goods held in stock, on 24.09.2018. In view of the said provisions, eligible ITC for Quanto Ltd. is computed as follows:



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

Inputs held in stock since 02.09.2018 4,500 4,500

Inputs received on 21.07.2018 contained in semi-finished goods held in stock

7,500 7,500

Inputs contained in finished goods held in stock which were procured on 19.09.2017 [Procured prior to one year, hence ITC cannot be availed]

Nil

Inputs held in stock since 13.09.2018 9,000

Capital goods procured on 12.09.2018 Nil Nil

Total ITC 12,000 12,000 9,000

It has been assumed that invoice for the said goods is also dated 19.09.2017.

178. Sharma Carriers is a Good Transport Agency engaged in transportation of goods by road. As per

the general business practice, Sharma carriers also provides intermediary and ancillary services like loading /unloading, packing/unpacking, transhipment and temporary warehousing in relation to transportation of goods by road.

With reference to the provisions of GST law, analyse whether such services are to be treated as part of the GTA services, being a composite supply or as mixed supply.

[CA FINAL EXAM QUESTION – NOV 2018 (Old) – 5 MARKS]

Solution: Composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply [Section 2(30) of the CGST Act, 2017]. Mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply [Section 2(74) of the CGST Act, 2017].

The various intermediary and ancillary services provided by GTA are not provided as independent services but as ancillary to the principal service, namely, transportation of goods by road. The invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In view of this, if any intermediary and ancillary service is provided in relation to transportation of goods by road, and charges, if any, for such services are included in the invoice issued by Sharma Carriers, such service would form part of the GTA service, and thus will be composite supply, and not a mixed supply even though a single price is charged for the supply.

Further, if such incidental services are provided as separate services and are billed separately, whether in the same invoice or separate invoices, they will be treated as separate supply and not composite supply and there being no single price, the supply will also not be treated as mixed supply - in terms of Q. 6 of the CBIC FAQs on Transport & Logistics

2.

179. With the help of information given below in respect of a manufacturer for the month of September,

2018, calculate eligible input tax credit for the month and also calculate the amount of ITC to be reversed in September, 2018 and October, 2018. There is no carry forward credit or reversal requirement. Only the current month's information is to be considered for calculation purposes.

S. No. Particulars Amount in `̀̀̀

1. Outward supply of taxable goods 70,000 2. Outward supply of exempted goods 40,000

Total Turnover 1,10,000

3. Inward supplies GST paid (`̀̀̀)

Capital goods purchased which are exclusively used for taxable outward supply

2,000

Capital goods purchased which are exclusively used for exempted outward supply

1,800

Capital goods purchased which are used for both taxable and exempted outward supply

4,200




Solution:

Computation of eligible ITC and ITC to be reversed

Particulars ` ITC (`̀̀̀)

Capital goods exclusively used for taxable outward supply [Since exclusively used for taxable supply, full ITC is available under rule 43(1)(b) of the CGST Rules, 2017] - [A]

2,000

Capital goods exclusively used for exempted outward supply [Since exclusively used for non-business purposes, ITC is not available under rule 43(1)(a) of the CGST Rules, 2017]

Nil

Capital goods used for both taxable and exempted outward supply -Common credit [B] [Commonly used for taxable and exempt supplies - Rule 43(1 )(c) of the CGST Rules, 2017]

4,200

Common credit for the tax period (month here) = 4,200 / 60 [Rule 43(1)(e) of the CGST Rules, 2017]

70

Common credit attributable to exempt supplies in a month [C] (rounded off)

= (40,000/1,10,000) x `70 [Rule 43(1)(g) of the CGST Rules, 2017

25.45

Eligible credit out of common credit for September, 2018 [B] - [C] (rounded off) 4,174.55

Total eligible credit for September, 2018 6,174.55

Amount of ITC to be reversed in September, 2018 [B] 25.45

Amount of ITC to be reversed in October, 2018 [B] 25.45

180. A registered supplier of taxable goods supplied goods valued at `̀̀̀ 2,24,000 (inclusive of CGST ` ` ` ` 12,000 and SGST ` ` ` ` 12,000) to Mohan Ltd. under the forward charge on 15-08-2018 for which tax invoice was also issued on the same date. The inputs were received by Mohan Ltd. on 15-08-2018.

Mohan Ltd. availed credit of ` ` ` ` 24,000 on 18-08-2018. But Mohan Ltd. did not make any payment towards such supply along with tax thereon to the supplier. Is Mohan Ltd. eligible to avail input tax credit on such supply? What are the consequences of such non-payment by Mohan Ltd.?

Discuss input tax credit provisions if Mohan Ltd. makes the payment of `̀̀̀ 2,24,000 to the supplier on 18-03-2019.


Solution:

As per section 16 of the CGST Act, 2017, Mohan Ltd. is eligible to avail input tax credit (ITC) of the tax paid on inputs received by it on the basis of the invoice issued by the supplier provided other conditions for availing ITC are fulfilled.

Payment of value of the goods along with the tax to the supplier is not a pre-requisite at the time of availing credit, but Mohan Ltd. has to pay the said amount within 180 days from the date of issue of invoice.

If Mohan Ltd. did not make any payment towards such supply along with tax thereon to the supplier, it has to report the fact of non-payment in the ITC return (GSTR-2) for the month immediately following the period of 180 days from the date of the issue of the invoice. When such report is made, ITC of ` 24,000 will be added to his output tax liability. Mohan Ltd will be required discharge this liability with interest @ 18% p.a. from the date of availing credit till the date when the amount added to the output tax liability [Second proviso to section 16(2) of the CGST Act, 2017 read with rule 37 of the CGST Rules, 2017].

If Mohan Ltd. makes the payment of ` 2,24,000 (Value + tax) to the supplier on 18.03.2019 i.e., after the

expiry of 180 days from date of issue of invoice, Mohan Ltd. will have to report the default in the monthly report, add the amount of ITC to his output tax liability and when the payment is made to the supplier, take the credit of ` 24,000. The output tax liability added will have to paid with interest @18% for the period from the date of availment of credit till the date of addition of the amount to the output tax liability.



181. A makes intra-State supply of goods valued at `̀̀̀ 50,000 to B within State of Karnatake. B makes inter-State supply to X Ltd. (located in Telangana) after adding 10% as its margin. Thereafter, X Ltd. sells it to Y in Telangana (Intra-State sale) after adding 10% as his margin.

Assume that the rate of GST chargeable is 18% (CGST 9% plus SGST 9%) and IGST chargeable is 18%. Calculate tax payable at each stage of the transactions detailed above. Wherever input tax credit is available and can be utilized, calculate the net tax payable in cash. At each stage of the transaction, indicate which Government will receive the tax paid and to what extent.

[CA FINAL EXAM QUESTION – NOV 2018 (Old) – 9 MARKS] Solution:

I. Intra-State supply of goods by A to B

`̀̀̀

Value charged for supply of goods 50,000

Add: CGST @ 9% 4,500

Add: SGST @ 9% 4,500

Total price charged by A from B 59,000

A is the first stage supplier of goods and hence, does not have credit of CGST, SGST or IGST. Thus, the entire CGST (` 4,500) & SGST (` 4,500) charged will be paid in cash by A to the Central Government and Karnataka Government respectively.

II. Inter-State supply of goods by B to X Ltd. - Margin @ 10%

`̀̀̀

Value charged for supply of goods (` 50,000 x 110%) 55,000

Add: IGST @ 18% 9,900

Total price charged by B from X Ltd. 64,900 *

It has been logically presumed that 10% margin is on the value of goods (exclusive of taxes).

Computation of IGST payable by B to Central Government in cash

`̀̀̀

IGST payable 9,900

Less: Credit of CGST 4,500

Less: Credit of SGST 4,500

IGST payable to Central Government in cash 900

Credit of CGST and SGST can be used to pay IGST [Section 49(5) of the CGST Act, 2017]. Karnataka Government will transfer SGST credit of ` 4,500 utilised in the payment of IGST to the Central Government.

III. Intra-State supply of goods by X Ltd. to Y

`̀̀̀

Value charged for supply of goods (` 55,000 x 110%) 60,500

Add: CGST @ 9% 5,445

Add: SGST @ 9% 5,445

Total price charged by X Ltd. from Y 71,390

Computation of CGST and SGST payable by X Ltd in cash

`̀̀̀

CGST payable 5,445

Less: Credit of IGST 5,445

CGST payable to Central Government in cash Nil

SGST payable 5,445

Less: Credit of IGST [` 9,900 - ` 5,445] 4,455

SGST payable to Telangana Government in cash 990

Credit of IGST can be used to pay IGST, CGST and SGST in that order [Section 49(5) of the CGST Act,

2017]. Central Government will transfer IGST of ` 4,455 utilised in the payment of SGST to Telangana Government

182. MN Ltd. has two registered business verticals in the State of Haryana. Its aggregate turnover during

the previous financial year for both the business verticals was ` ` ` ` 62 lakh. It wishes to opt for composition levy for one of the verticals in the current year and wants to continue with registration and pay taxes at the merit rate for the second vertical. Can MNLtd. do so? Explain with reason.




Solution:

As per proviso to section 10(2) of the CGST Act, 2017, where more than one registered persons are having the same PAN issued under the Income-tax Act, 1961, the registered person shall not be eligible to opt for the composition scheme unless all such registered persons opt to pay tax under composition scheme.

In the given case, since MN Ltd. has two business verticals (they are not separate entities under Income-tax Act, 1961), they would be registered under the same PAN. Therefore, MN Ltd. cannot opt for composition levy for only one of the business verticals and pay tax under regular scheme for other business vertical.

183. M/s. Ranveer Industries, registered in Himachal Pradesh, is engaged in making inter-State supplies of readymade garments. The aggregate turnover of M/s. Ranveer Industries in the financial year

2017-18 is `̀̀̀ 70 lakh. It opted for composition levy in the year 2018-19 and paid tax for the quarter ending September, 2018 under composition levy.

The proper officer has levied penalty for wrongly availing the scheme on M/s. Ranveer Industries in addition to the tax payable by it.

Examine the validity of the action taken by proper officer.


Solution:

As per section 10 of the CGST Act, 2017, a registered person, whose aggregate turnover in the preceding financial year did not exceed ` 1 crore in a State/UT [` 75 lakh in case of Special Category States except Jammu and Kashmir and Uttarakhand], may opt for composition scheme.

However, he shall not be eligible to opt for composition scheme if, inter alia, he is engaged in making any inter-State outward supplies of goods.

In the given case, since M/s Ranveer Industries is engaged in making inter-State supplies of readymade garments, it is not eligible to opt for composition scheme in FY 2018-19 irrespective of its turnover in the preceding FY.

Further, if the proper officer has reasons to believe that a taxable person has paid tax under composition scheme despite not being eligible, such person shall, in addition to any tax payable, be liable to a penalty.

Thus, the action taken by the proper officer of levying the penalty for wrongly availing the composition scheme is valid in law.

184. Rahul Agri Millers Ltd., located in Haryana, is engaged in customs milling of paddy into rice. It does not pay GST on the same as it is of the view that the process of milling of paddy into rice is exempt under GST since is an intermediate production process in relation to cultivation of plants. However, Department demands tax on said activity contending that it is not eligible for said exemption. You are required to determine the veracity of the Department's contention.

[ICAI CA FINAL Mock Test Paper – May 2019 – 4 Marks]

Solution: Yes, the contention of the Department is correct. As per Notification NO. 12/2017 CT (R) dated 28.06.2017, carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce is exempt under GST. Milling of paddy is not an intermediate production process in relation to cultivation of plants. It is a process carried out after the process of cultivation is over and paddy has been harvested. Further, processing of paddy into rice is not usually carried out by cultivators, but by rice millers. Milling of paddy into rice also changes its essential characteristics. Therefore, milling of paddy into rice cannot be considered as an intermediate production process in relation to cultivation of plants for food, fibre or other similar products or agricultural produce. In view of the above, it is clarified by CBIC that milling of paddy into rice is not eligible for exemption under said notification. Thus, GST is payable on the said activity.



MCQ - GST

1. Mr. X, a registered supplier of Meghalaya wants to opt for composition levy. The turnover limit for composition levy is-

a. ` 50 lakh

b. ` 75 lakh

c. ` 1 crore

d. none of the above

2. The persons making inter-State supplies from Madhya Pradesh is compulsorily required to get registered under GST, _____

(a) if his all India based aggregate turnover exceeds ` 20 lakh in a financial year

(b) if his all India based aggregate turnover exceeds ` 10 lakh in a financial year

(c) irrespective of the amount of aggregate turnover in a financial year

(d) in case of making inter-State supply of taxable goods, irrespective of the amount of aggregate turnover in a financial year

3. Which of the following services are exempt under GST?

(a) testing of agricultural produce

(b) supply of farm labour

(c) warehousing of agricultural produce

(d) all of the above

4. Mr. Suraj Agrawal has booked a room on rent in Sunshine Hotel for the purpose of lodging on 10.08.20XX. GST is not payable by Mr. Suraj Agrawal in case value of supply for the same is ____

(a) ` 800

(b) ` 6000

(c) ` 11000

(d) ` 1500

5. Input tax credit is not available in respect of _______.

(a) services on which tax has been paid under composition levy

(b) free samples

(c) goods used for personal consumption


6. Mr. X, a registered person, deals in supply of taxable goods. He need not issue tax invoice for the goods supplied on 16.04.20XX as the value of the goods is ___.

(a) ` 1,200

(b) ` 600

(c) ` 150

(d) ` 200

7. Transportation of goods by____are exempt from GST. (i) road (ii) inland waterways (iii) goods transportation agency (iv) courier agency

(a) (i) & (ii)

(b) (iii) & (iv)

(c) (i) and (iv)

(d) (i) [except (iii) & (iv)] & (ii)



8. Transportation of ____by rail from Chennai to Gujarat are exempt from GST. (i) pulses (ii) military equipments (iii) electric equipments (iv) biscuits

(a) (i) & (ii)

(b) (i) & (iii)

(c) (ii) & (iv)


9. Services by way of warehousing of _____is exempt from GST. (i) processed tea (ii) jaggery (iii) processed coffee (iv) rice

(a) (i) & (ii)

(b) (iii)

(c) (iv)


10. GST is payable by recipient of services in the following cases:- (i) Services provided by way of sponsorship to ABC Ltd. (ii) Services supplied by a director of Galaxy Ltd. to CA Suraj Agrawal. (iii) Services by Department of Posts by way of speed post to MNO Ltd. (iv) Services supplied by a recovering agent to SNSP Bank

(a) (i) & (iii)

(b) (i) & (iv)

(c) (ii) & (iii)

(d) (ii) & (iv)

11. Which of the following statement is true for Mr. X, a casual taxable person?

(a) Mr. X is not required to take registration under GST.

(b) Mr. X is required to get registration under GST, if the aggregate turnover in a financial year exceeds ` 20 lakh.

(c) Mr. X can opt for voluntary registration under GST.

(d) Mr. X has to compulsorily get registered under GST irrespective of the threshold limit.

12. The registration certificate granted to Non resident taxable person is valid for _____days from the effective date of registration or period specified in registration application, whichever is ealier.

(a) 30

(b) 60

(c) 90

(d) 120

13. Which of the following activity shall be treated neither as a supply of goods nor a supply of services?

i. Permanent transfer of business assets where input tax credit has been availed on such assets

ii. temporary transfer of intellectual property right

iii. transportation of deceased

iv. services by an employee to the employer in the course of employment

(a) (i) & (iii)

(b) (ii) & (iv)

(c) (i) & (ii)

(d) (iii) & (iv)



14. Balance in electronic credit ledger can be utilized against which liability?

(a) Output tax payable

(b) Interest

(c) Penalty


15. What is the due date for payment of tax for a normal taxpayer?

(a) Last day of the month to which payment relates

(b) Within 10 days of the subsequent month

(c) Within 20 days of the subsequent month

(d) Within 15 days of the subsequent month

16. How the aggregate turnover is calculated for computing threshold limit of registration?

i. Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis.

ii. Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, export of goods/services and interstate supplies of a person computed for each state separately.

iii. Aggregate value of all taxable intrastate supplies, export of goods/services and exempt supplies of a person having same PAN computed for each state separately.

iv. Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis and excluding taxes if any charged under CGST Act, SGST Act and IGST Act.

(a) (i)

(b) (ii)

(c) (iii)

(d) (iv)

17. Within how many days a person should apply for registration?

(a) Within 60 days from the date he becomes liable for registration.

(b) Within 30 days from the date he becomes liable for registration.

(c) No Time Limit

(d) Within 90 days from the date he becomes liable for registration.

18. A person having ____business verticals in a State ____obtain a separate registration for each business vertical.

(a) Single, shall

(b) Multiple, shall

(c) Multiple, may

(d) Single, May

19. What is the validity of the registration certificate?

(a) One year

(b) No validity

(c) Valid till it is cancelled.

(d) Five years.



20. Within how many days an application for revocation of cancellation of registration can be made (Suraj Agrawal Tax Class – 9953006445)?

a. Within 7 days from the date of service of the cancellation order.

b. Within 15 days from the date of issue of the cancellation order.

c. Within 45 days from the date of issue of the cancellation order.

d. Within 30 days from the date of service of the cancellation order.

21. Can a registered person opting for composition scheme collect GST on his outward supplies?

(a) Yes, in all cases

(b) Yes, only on such goods as may be notified by the Central Government

(c) Yes, only on such services as may be notified by the Central Government

(d) No

22. In case of Goods Transport Agency (GTA) services, tax is to be paid under forward charge if:

(a) GST is payable @ 12%

(b) GST is payable @ 5% and a factory registered under the Factories Act, 1948 is the recipient of GTA service.

(c) GST is payable @ 5% and an unregistered individual end customer is the recipient of GTA service.


23. Which of the following services are not exempt from GST?

(a) Yoga camp conducted by a charitable trust registered under section 12AA of the Income-tax Act, 1961.

(b) Services provided by business correspondent to the rural branch of a bank with respect to Savings Bank Accounts

(c) Services provided by cord blood bank for preservation of stem cells.

(d) Service provided by commentator to a recognized sports body

24. The term ‘goods’, as defined under section 2(52) of the CGST Act, 2017, does not include-

(a) Grass

(b) Money and securities

(c) Actionable claims

(d) Growing crops

25. Rama Ltd. has provided following information for the month of September:

i. Intra-State outward supply ` 8,00,000/-

ii. Inter-State exempt outward supply ` 5,00,000/-

iii. Turnover of exported goods ` 10,00,000/-

iv. Payment made for availing GTA services ` 80,000/-

Calculate the aggregate turnover of Rama Ltd.

(a) ` 8,00,000/-

(b) ` 23,80,000/-

(c) ` 23,00,000/-

(d) ` 18,00,000/-



26. ‘P’ Ltd. has its registered office, under the Companies Act, 2013, in the State of Maharashtra from where it ordinarily carries on its business of taxable goods. It also has a warehouse in the State of Telangana for storing said goods. What will be the place of business of ‘P’ Ltd. under the GST law?

(a) Telangana

(b) Maharashtra



27. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax

(b) Non-taxable supply

(c) Supply of goods or services or both which are wholly exempt from tax under section 11 of the CGST Act or under section 6 of IGST Act


28. Which of the following are services exempt from GST?

(a) Services by an artist by way of a performance in folk or classical art, forms of painting/sculpture making etc. with consideration therefor not exceeding ` 1.5 lakh.

(b) Services by an artist by way of a performance in modern art forms of music/ dance/ theatre with consideration therefor not exceeding ` 1.5 lakh.

(c) Services by an artist by way of a performance in folk or classical art forms of music/ dance/theatre with consideration therefor exceeding ` 1.5 lakh.

(d) Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh.

29. Services by way of admission to ______________ are exempt from GST.

(a) Museum

(b) National park

(c) Tiger reserve


30. Discount given after the supply is deducted from the value of taxable supply, if –

(a) such discount is given as per the agreement entered into at/or before the supply

(b) such discount is linked to the relevant invoices

(c) proportionate input tax credit is reversed by the recipient of supply


31. In which of the following situations, taxpayer needs to reverse the credit already taken?

(a) If payment is not made to the supplier within 45 days from the date of invoice

(b) If payment is not made to the supplier within 90 days from the date of invoice

(c) If payment is not made to the supplier within 180 days from the date of invoice




32. Which of the following statements are correct?

i. Revocation of cancellation of registration under CGST/SGST Act shall be deemed to be a revocation of cancellation of registration under SGST/CGST Act.

ii. Cancellation of registration under CGST/SGST Act shall be deemed to be a cancellation of registration under SGST/CGST Act.

iii. Revocation of cancellation of registration (suraj agrawal sir) under CGST/SGST Act shall not be deemed to be a revocation of cancellation of registration under SGST/CGST Act.

iv. Cancellation of registration under CGST/SGST Act shall not be deemed to be a cancellation of registration under SGST/CGST Act.

(a) (i) and (ii)

(b) (i) and (iv)

(c) (ii) and (iii)

(d) (iii) and (iv)

33. If the goods are received in lots/installment, ------------------------------

(a) 50% ITC can be taken on receipt of 1st installment and balance 50% on receipt of last installment.

(b) ITC can be availed upon receipt of last installment.

(c) 100% ITC can be taken on receipt of 1st installment.

(d) Proportionate ITC can be availed on receipt of each lot/installment.

34. For banking companies using inputs and input services partly for taxable supplies and partly for exempt supplies, which of the statement is true?

(a) ITC shall be compulsorily restricted to credit attributable to taxable supplies including zero rated supplies

(b) 50% of eligible ITC on inputs, capital goods, and input service shall be mandatorily taken in a month and the rest shall lapse.

(c) Banking company can choose to exercise either option (a) or option (b)


35. A supplier takes deduction of depreciation on the GST component of the cost of capital goods as per Income- tax Act, 1961. The supplier can-

(a) avail only 50% of the said tax component as ITC

(b) not avail ITC on the said tax component

(c) avail 100% ITC of the said tax component

(d) avail only 25% of the said tax component as ITC

36. Warehousing of _____________ is exempt from GST.

1) Rice

2) Minor forest produce

3) Jaggery

4) Whole gram

(a) 1), 2) and 4)

(b) 1) and 3)

(c) 2), 3) and 4)

(d) 3)



37. Which of the following services received without consideration amount to supply?

1. Import of services by a person in India from his son well-settled in USA

2. Import of services by a person in India from his brother well-settled in Germany

3. Import of services by a person in India from his brother (wholly dependent on such person in India) in France

4. Import of services by a person in India from his daughter (wholly dependent on such person in India) in Russia

(a) 1), 3) and 4)

(b) 2), 3) and 4)

(c) 2) and 3)

(d) 1) and 2)

38. Which of the following persons is not eligible for composition scheme even though their aggregate turnover does not exceed ` ` ` ` 1 crore in preceding FY, in Uttar Pradesh?

(a) A person supplying restaurant services

(b) A person supplying restaurant services and earning bank interest

(c) A person supplying restaurant services and warehousing of rice

(d) A person supplying restaurant services and warehousing of processed tea

39. The time of supply of service in case of reverse charge mechanism is

(a) Date on which payment is made to the supplier

(b) Date immediately following 60 days from the date of issue of invoice

(c) Date of invoice

(d) Earlier of (a) and (b)

40. Which of the following services does not fall under reverse charge provisions as contained under section 9(3) of the CGST Act?

(a) Services supplied by arbitral tribunal to business entity

(b) Sponsorship provided to any partnership firm

(c) Sponsorship provided to any body corporate


41. Transport of ______________ by rail are exempt from GST:

(a) Milk

(b) Salt

(c) Defence equipments


42. ITC of motor vehicles used for _________________ is allowed.

(a) Transportation of goods

(b) Transportation of passengers

(c) Imparting training on driving




43. Which of the following persons is required to obtain compulsory registration?

(a) Persons exclusively engaged in making supplies tax on which is to be paid by the recipient on reverse charge basis under section 9(3) of the CGST Act, 2017.

(b) Persons making inter-State supplies of taxable services up to ` 20,00,000

(c) Persons making supplies of services through an ECO (other than supplies specified under section 9(5) of the CGST Act) with aggregate turnover up to ` 20,00,000

(d) None of the above.

44. A non-resident taxable person is required to apply for registration:

(a) within 30 days from the date on which he becomes liable to registration

(b) within 60 days from the date on which he becomes liable to registration

(c) at least 5 days prior to the commencement of business


45. Registration certificate granted to casual taxable person or non-resident taxable person will be valid for:

(a) Period specified in the registration application

(b) 90 days from the effective date of registration

(c) Earlier of (a) or (b)

(d) Later of (a) or (b)

46. In case of taxable supply of services by a non- banking financial company (NBFC), invoice shall be issued within a period of __________ from the date of supply of service.

(a) 30 days

(b) 45 days

(c) 60 days

(d) 90 days

47. Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued:

(a) before/at the time of supply.

(b) 6 months from the date of removal.

(c) Earlier of (a) or (b).

(d) Later of (a) or (b).

48. Invoice shall be prepared in (i) ___________ in case of taxable supply of goods and in (ii)_____________ in case of taxable supply of services.

(a) (i) Triplicate, (ii) Duplicate

(b) (i) Duplicate, (ii) Triplicate

(c) (i) Duplicate, (ii) Duplicate


49. Which of the following shall be discharged first, while discharging liability of a taxable person?

(a) All dues related to previous tax period

(b) All dues related to current tax period

(c) Demand raised under section 73 and 74

(d) No such condition is mandatory.



50. The due date of filing Final Return is ______.

(a) 20th of the next month

(b) 18th of the month succeeding the quarter

(c) Within 3 months of the date of cancellation or date of order of cancellation, whichever is later

(d) 31st December of next financial year

51. Which of the following statements is true under GST?

(a) Grand-parents are never considered as related persons to their grandson/granddaughter

(b) Grand-parents are always considered as related persons to their grandson/granddaughter

(c) Grand-parents are considered as related persons to their grandson/granddaughter only if they are wholly dependent on their grandson/granddaughter


52. Alcoholic liquor for human consumption is subjected to

(a) State excise duty

(b) Central Sales Tax/Value Added Tax


(d) GST

53. Input Tax Credit of IGST can be utilised in the following sequence:

(a) SGST/UTGST, CGST, IGST (SATC)

(b) IGST, CGST, SGST/UTGST

(c) IGST, SGST/UTGST, CGST

(d) CGST, SGST/UTGST, IGST

54. Mr. A has a tax invoice [dated 20-1-2018] of services received by him. Its input tax credit is lost if ITC is not availed on or before–

(a) 20-1-2019.

(b) 31-12-2018.

(c) 20-1-2020.

(d) date of filing return of September, 2018 or date of filing of annual return for 2017-18, whichever is earlier.

55. Input tax credit shall not be available in respect of:

(a) Goods used for personal consumption

(b) Membership of a club

(c) Travel benefits extended to employees on vacation such as leave or home travel concession

(d) All of the Above

56. Which of the following is not considered as ‘goods’ under the CGST Act, 2017?

(a) Sale of a ten-paisa coin having sale value of ` 100/-

(b) Sale of shares of unlisted company

(c) Sale of lottery tickets




57. Mr Reyaan, a jeweller registered under GST in Mumbai, wants to sell his jewellery in a Trade Expo held in Delhi. Which of the following statements is false in his case?

(a) He needs to get registration in Delhi as casual taxable person.

(b) He needs to pay advance tax on estimated tax liability.

(c) He needs to mandatorily have a place of business in Delhi.

(d) He needs to file GSTR-1 and GSTR-3B for Delhi GSTIN for the month when he is registered in Delhi.

58. Which of the following is not a composite supply?

(a) Supply of charger and mobile phone

(b) Supply of battery and inverter

(c) Supply of cement under works contract services


59. Which of the following is treated as exempt supply under the CGST Act, 2017?

(a) Sale of liquor

(b) Supply of health care services

(c) Supply of electricity


60. Which of the following is a recognised system of medicine for the purpose of exemption for health care services?

(a) Allopathy

(b) Unani

(c) Siddha


61. Which of the following services is exempt under health care services provided by clinical establishments?

(a) Chemist shop in the hospital selling medicines to public at large

(b) Food supplied from an outsourced canteen to in-patients as per diet prescribed by the hospital dietitian

(c) Advertisement services provided by the hospital to a pharmaceutical company for their asthma pump by displaying it prominently in the hospital building


62. In case of supply of goods for ` ` ` ` 5,00,000, following information is provided-

i. Advance received on 1-Apr-20XX

ii. Invoice issued on 15-Apr-20XX

iii. Goods removed on 25-Apr-20XX

What is the time of supply of goods?

(a) 1-Apr-20XX

(b) 15-Apr-20XX

(c) 25-Apr-20XX

(d) 30-Apr-20XX



63. Mr. Sham is receiving legal services from a lawyer Mr. Gyan. The information regarding date of payment, invoice etc. is as follows-

i. Invoice issued by Mr. Gyan on 15-Apr-20XX

ii. Payment received by Mr. Gyan on 5-May-20XX

iii. Date of payment entered in books of accounts of Sham: 1-May-20XX

What is time of supply of goods?

(a) 1-May-20XX

(b) 5-May-20XX

(c) 14-Jun-20XX

(d) 15-Apr-20XX

64. Which of the following is not eligible for opting composition scheme under GST?

(a) M/s ABC, a firm selling garments having annual turnover of ` 78 lakh.

(b) A startup company operating restaurant in Delhi having a annual turnover of ` 98 lakh.

(c) A courier service company operating solely in Mumbai having annual turnover of ` 90 lakh.

(d) A trader selling grocery items having an annual turnover of ` 95 lakh.

65. Which of the following is not a supply of services?

(a) Renting of Commercial Office Complex

(b) Payment of Non-Compete Fee by an ex-employee to his previous employer

(c) Repairing of Mobile Phone of Vansh Manager at SATC

(d) Permanent transfer of business assets on which ITC is availed

ANSWER KEY

1 B 11 D 21 D 31 C 41 D 51 C 61 B

2 D 12 C 22 A 32 A 42 D 52 C 62 B

3 D 13 D 23 D 33 B 43 D 53 B 63 A

4 A 14 A 24 B 34 C 44 C 54 D 64 C

5 D 15 C 25 C 35 B 45 C 55 D 65 D

6 C 16 D 26 C 36 A 46 B 56 B

7 D 17 B 27 D 37 A 47 C 57 C

8 A 18 C 28 D 38 D 48 A 58 B

9 C 19 C 29 D 39 D 49 A 59 D

10 B 20 D 30 D 40 D 50 C 60 D

THANK YOU

Documents

SUPPORT & LOVE. CA SURAJ AGRAWAL...PROFILE – CA SURAJ AGRAWAL CA Suraj Agrawal is a Commerce Graduate [B.Com (H)] from Kolkata University and has qualified CA in November 2005 in