Introduction to GST

Q1. Discuss whether any 'consideration' is involved in following cases:

(i) Gifts received from friends at the time of farewell party.
(ii) Grant given to a researcher to carry out any research of his choice. However, the researcher will have to
provide IPR rights of the outcome of such research activity.
(iii) Donations given to a charitable trust with the condition that in every program organized by such trust,
the name of the donor will be displayed on the stage.
Services are provided by X to Y. However, payment for the services is made by Z, a debtor of Y, on the
instructions of Y.

Q.2. Determine whether the following terms fall under the ambit of ‘Consideration’
1. Reliance JIO offers free mobile handset on payment of security deposit worth Rs. 1,500 which is fully
refundable.
2. Isha a customer purchases a gold necklace weighing 275 gms from PN Gadgil Jewel Showroom and in
exchange sells her old gold articles weighing 200 gms and pays differential amount in cash.
3. RC Cricket Association Chennai, gifts a motor bike to Rahul as inducement to join their cricket club
4. XYZ Ltd. is manufacturing fertilizers used for agriculture purpose. State government has given 30%
subsidy on sale of such fertilizer.
5. ABC and Co. a trading concern, has supplied the product X to Mr. Y at subsidise rate Rs. 30,000 (Open
market value of such goods is % 45,000). The supplier of ABC and Co. has given the subsidy to it to
compensate for the price difference.

Scope of Supply
Q1. Are the following import of services taxable services or not?
1. Import of service from unrelated person for personal consumption with consideration
2. Import of service from unrelated person for business with consideration
3. Import of service from unrelated person for personal consumption without consideration
4. Import of service from unrelated person for business without consideration
5. Import of service from relative with consideration in the course or furtherance of business
6. Import of service from relative without consideration in the course or furtherance of business
7. Import of service from relative for personal consumption with consideration
Import of service from relative for personal consumption without consideration.

Q2. Mrs. Pragati received legal advice for her personal problems & paid 1,000 pound as legal fees
to Miss Unnati of U.K. (London).
(i) Explain whether the above activity of import of service would amount to supply u/s 7 of the CGST Act,
2017?
(ii) If in above case both of them are real sisters & no consideration is paid then will it change your answer?
(iii) 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?

Q3. A builder has entered into agreement to sell a flat (carpet area 1900 sq ft) to a customer. The Price of
flat (including apportioned value of cost of land) is 43,25,000. The builder received part payment of 20, 00,
000 before construction was completed and balance amount was received after obtaining completion
certificate from the Corporation. Find the GST liability (CGST 6% and SGST 6%)?

Q4. M/s X Ltd. paid penalty under section 49 of the CGST Act, 2017, Rs. 2,00,000 to the Department in the
month of October 2018 . Is it taxable under the GST law?

Q5. There are 4 members in the JV including the operating member and each one contributes Rs. 100 as
part of their share. A total amount of 400 is collected. The operating member purchases machinery for Rs.
400 for the JV to be used in oil production.
In the above situation it will not be subject to GST for the reason that the operating member is not carrying
out an activity for another for consideration. The money paid for purchase of machinery is merely in the
nature of capital contribution and is therefore a transaction in money.

Q6. GST is not payable in case of Managing Director or whole-time director or executive director, if the
director is in full time employment of the company. Commission paid by company to its directors (even if
linked with performance or with financial results of the company) is nothing but remuneration paid by
employer to employee.
GST is payable on services provided by non-executive, nominee and independent directors to the company.
GST will be payable on sitting fees paid to directors for attending meetings of Board of Committees of Board,
travelling expenses and incidental expenses for attending meetings of Board and their committees ,
commission or other remuneration paid, if any. GST on services by directors is payable on reverse charge
basis by the company.

Q7. From the following information determine the nature of supply and tax liability.
XYZ Ltd. is manufacturer of cosmetic products supplied a package consisting of hair oil (GST Rate
-18%), Sun screen cream (GST Rate - 28%), Shampoo (GST rate - 28%) and hair comb (GST Rate -12%).
The Price per package is 500 (exclusive of taxes). 10,000 packages were supplied by the company to its
dealers. Determine the nature of supply and its tax liability.

Q8. A professional training institute gets its training material printed from a printing press. The content of
the material is provided by the training institute who owns the usage rights of the same while the physical
inputs including paper used for printing belong to the printer. Ascertain whether supply of training material
by the printing press constitutes supply of goods or supply of services.

Levy & Collection of GST

Q1. Pioneer Academy is providing private coaching for IAS and is registered under GST. During
November, 2017, it organises a seminar on 'Demonetisation : Impact on Indian Economy' in its
campus in Delhi. Discuss the taxability of following receipts in hands of Pioneer Academy.
1. Sponsorship charges of 20,00,000 from A, sole proprietor of a business (for grant of sponsorship rights
of programme).
2. Advertisement charges of Rs. 30,000 from B Ltd. (small advertisement banner outside the hall). ·
3. Donations of 50,000 from C, a salaried employee (he does not want his name to appear anywhere in
the seminar).
Above figures are exclusive of GST (GST will be charged in addition to the amount given above). Applicable
GST rate is 18%. Presume all supplies as intra-state supplies

Q.2. Mr. A registered person under GST located in Tamil Nadu, sold goods worth Rs. 10,000 after
manufacture to Mr. C at Chennai. Subsequently Mr. C sold these goods to Mr. H of Hyderabad for 17,500.
Mr. H being a trader finally sold these goods to customer Mr. S of Secunderabad for 30,000.
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.

Q2 : Mr. M of Madurai supplied goods/services for Z 24,000 to Mr. S of Salem. Mr. M purchased
goods/services for Z 23,600 (inclusive of CGST 95 and SGST 9%) from Mr. C of Chennai. Find the
following:
1. Total price charged by Mr. M for supply of goods/services
2. Who is liable to pay GST ?
3. Net liability of GST.

Q3 : With reference to the provision 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.

Q4: Mr. Velmuragan of Panruti (Tamil Nadu), a farmer, sold raw cashew nuts produced in his farm land to M/s
Rajesh International of Chennai, a company registered under GST. Applicable rate of GST is 5%. Value of
goods is 1,00,000. M/s Rajesh International has input credit of IGST ! 4,000. You are required to answer the
following:
(a) Who is liable to pay GST ?
(b) Net liability of GST ?

Composition Levy
1. Virat Ltd. a manufacturing concern located in Nagpur has opted for
composition scheme for the F.Y. 2018-19. Determine tax payable by Virat Ltd.
Details of supplies including inward supplies taxable under reverse charge basis is
as follows :
Particulars Rs.
Intra State Supplies of Goods chargeable @ 12% GST 23,00,000
Intra State Supplies of Goods chargeable @ 18% GST 10,00,000
Intra State Supplies made which are which are chargeable to GST at Nil rate 18,00,000
Intra state supplies which are wholly exempt under section 11 of CGST Act, 16,40,000
2017
Value of inward supplies on which tax payable under RCM (GST Rate 5 %) 20,00,000

2. ABC Ltd. is manufacturing ice cream and its turnover in the financial year
2016-17 was Rs. 70,00,000.
a. Can ABC Ltd. opt for composition scheme during the financial year 2017-18?
b. What will be your answer is ABC Ltd. is a trader of ice cream?

3. ABC is having its head office located in New Delhi. It has two branches located
in Noida, (UP) and Gurugram (Haryana).
c. Can he opt for composition scheme?
d. Can he opt for composition scheme in case of Delhi and Noida and the normal scheme for
Gurugram?

4. Vastram Ltd. Is having two factories. One factory is located in Maharashtra is

manufacturing readymade garments and another factory located in Gujarat is
engaged in manufacture of auto components. The turnover details of Financial Year
2018-19 are as under:
Particulars Amount(Rs.)
Intra-State supply of readymade garments in Maharashtra 38,00,000
Intra-State supply of auto- components in Gujarat 20,00,000
Total Value of taxable supplies 58,00,000
Determine whether Vastram Ltd. is eligible to opt for Composition Scheme, when the company
wants to opt for composition scheme for factory in Maharashtra and tax at normal rates in Gujarat.

Time of Supply
1. Determine the time of supply in the following different scenarios, where
supply involves movement of goods :
Date of Date of Date when Goods made Date of Receipt
Removal Invoice available to Recipient of Payment
01-10-2018 02-10-2018 03-10-2018 15-11-2018
03-10-2018 01-10-2018 04-10-2018 25-11-2018
04-11-2018 04-11-2018 06-11-2018 1-10-2018

2. Determine the time of supply in the following different scenarios, where the
recipient is liable to pay tax under reverse charge mechanism:
Date of Date of Date of Date of Debit of Payment in
Invoice Receipt Payment Bank A/c
01-10-2018 05-10-2018
of Goods 10-10-2018
in Books 12-10-2018
01-10-2018 15-10-2018 10-10-2018 12-10-2018
01-10-2018 15-10-2018 12-10-2018 10-10-2018
01-10-2018 15-10-2018 18-11-2018 20-11-2018

3. Determine the Time of Supply in the following cases :

1. M/s. ABC Ltd. provided taxable services for Rs.10 lakh on 15-6-2018 and issued invoice thereof on 12-
6-2018. The payment is received on 1-8-2018 (book entry and bank realisation is on same date).
2. M/s. A Ltd. provided taxable services for 12 lakh on 15-6-2018 and issued invoice thereof on 15-6-
2018. The payment is received on 21-9-2018 (book entry and bank realisation is on same date).
3. Mr. A provided taxable services for Rs.14 lakh on 15-7-2018 and issued invoice thereof on 20-7-2018.
The payment is received on 21-9-2018 (book entry and bank realisation is on same date).
4. M/s. MNL AOP provided taxable services on 1-5-2018. An invoice towards value of 2 lakh was issued
on 1-5-2018. The payment is received by cheque and entered in books on 10-4-2018. It is realised in
bank by 13-4-2018.
4. Rate of GST on Supply of service made on or after January 1, 2018 increased
from say 18% to 20% then write the tax to be applied on supplies will be as under :
A. After : Event occurred on or after January 1, 2018
B. Before : Event occurred before January 1, 2018
Supply Invoice Payment
GST Rate Shortcut
Provided issued received
Before After After
Before Before After
Before After Before
After Before After
After Before Before
After After Before

5. ABC, a registered person supplies goods to XYZ on 12.10.2018 on approval or

return basis. XYZ gives his approval to the goods on 22.12.2018.
(a) What is the time prescribed for issue of tax invoice?
(b) What will be the answer if the approval is given by XYZ on 22.5.2019 instead of 22.12.2018?

6. X, a computer consultant, provides consultancy to Y Ltd. on November 20,

2017. GST rate on this service has been changed with effect from November 15,
2017 (before change GST was 18 percent, new GST rate is 12 percent). What is (i)
the time of supply and (ii) applicable GST rate in different situations given below ?
Different Situations Date of issue of invoice Date of payment
Situation 1 November 14, 2017 November 12, 2017
Situation 2 November 14, 2017 November 16, 2017
Situation 3 November 16, 2017 November 14, 2017
Situation 4 November 14, 2017 January 1, 2018
Situation 5 January 14, 2018 November 14, 2017
Situation 6 July 1, 2017 February 1, 2018
Situation 7 February 1, 2018 July 1, 2017

Nature & Place of Supply

1. From the following details find out
(i) whether the supply is intra-State or inter-Sate supply; and
(ii) (ii) the nature of taxes applicable.
Location of Supplier Place of Supply
Kerala Bihar
Puducherry Puducherry
Daman and Diu Daman and Diu
Chandigarh Punjab
Chandigarh Daman and Diu
Goa Goa
Karnataka (SEZ) Karnataka (non-SEZ)

2. Name the place of Supply:

Location of
Location
Goods Goods Location of
Cas of Place of Supply
e Before Supplied to Recipient
Supplier
Supply

1. Thailand Thailand Assam Assam

2. China China Kashmir Haryana
3. Sri Lanka Sri Lanka Kerala Kerala
4. Karnataka Iran Dubai Karnataka

3. The Times Group being an event organizer located at New Delhi organized Miss India 2017
beauty pageant in India in the following Cities for M/s Femina Miss India a registered person
located it Mumbai :
City No. of Days Fee in
New Delhi 12 12 crores
Chennai 18 18 crores
Mumbai 20 20 crores
Total 50 50 crores
(i) Find the place of supply of service if there is a separate contract for each event.
(ii) Find the place of supply of service if contract specifies lump sum amount of Rs. 48 crores.

4. Explain giving reasons whether following services are OIDAR services

Whether Whether it is
II Provision Automated
I. of service and OIDAR
Nature of service
N mediated impossible to service
o. by ensure in
information absence
1 PDF document manually technology of
emailed by provider e.g. MV Yesthe No
information
over
Academy sent soft copy (PDF)
of document
work bookautomatically
solutions. internet or an technology
2 PDF
emailed by provider's system electronic
Yes Yes
e.g. Airtel receipt for post-paid network
3 connections.
Software automatically
downloaded from site e.g. Yes Yes

Stockanti-virus software.
photographs available for
automatic download e.g. Yes Yes
4
Desktop themes, screen savers
Online course consisting of pre-
recorded videos and
5 Yes Yes
downloadable PDFs are
automatically available on
screen course
Online on pressing buy button
consisting of pre-
recorded videos and
6 Yes No
downloadable PDFs plus
support from a live tutor
available for commissioned
Individually those students
7 who miss live classes.
content sent in digital form e.g. Yes No
photographs, reports, medical
results.

5. Mr. A located at Kolkata provides training at Kolkata to employees of Mis Infosys Ltd., which is
registered at Mumbai. Find the place of supply of service and GST liability in the following two cases. Case
1 : Infosys is registered person under GST
Case 2 : Infosys is not registered person under GST

6. Mr. Ram working in Infosys Company having office in Bengaluru is registered under GST. Mr. Ram
purchased a ticket from Hyderabad for transportation by Air from Hyderabad to Chennai. Mr. Ram
discloses the name of the organization and its registration number and the place where the organization is
registered. Supplier of service is located at Hyderabad. Find the following (a) Place of supply of service and
GST liability? (b) Whether your answer is different if Mr. Ram is not disclosed the name of the organization
and its registration number?
Mr. M of Mumbai supplied goods/services for Rs. 24,00,000 to Mr. S of Solapur. Mr. M purchased
goods/services for Rs. 20,00,000 (and in addition paid CGST 9% and SGST 9%) from Mr. C of Pune. Find
the following:
(a) Total price charged by Mr. M for supply of goods/services.
(b) Who is liable to pay GST - Mr. M or Mr. S ?
(c) Net liability of GST.

Value of Supply
1. Shankar Texmaco P ltd. (STPL), having its registered office at Salem, Tamil Nadu, is a manufacturer of
dyeing machinery. It manufactures and installs the machinery at the places opted by the buyers. For each
machine manufactured and installed by it, STPL gets a subsidy of 3 lakhs, from the agent of the foreign
manufacturer.
Poorni Dyers ltd. (PDL), having their registered office at Coimbatore, Tamil Nadu have ordered a machinery
from STPL, to be erected at their place of manufacture at Palghat, Kerala.
The base price of the machine is 25 lakhs. For each machinery, there is a separate handling charge of
50,000.
PDL have opted to take an additional warranty for 20,000 for an extended service period of 1 year, in
addition to the free warranty provided by STPL. The installation costs·of 80,000 charged by STPL, will be met
by PDL. STPL offers a cash discount of 2%, where the payment is made within a month. If the payment is not
so made, it not only recovers the discount earlier offered, but also charges interest at 18% for the period of
delay. .
A machinery was supplied on 21st November, 2017, the tax invoice also being issued the same day.
Ascertain the transaction value of the machine sold to PDL and the GST payable [SGST and CGST or IGST] by
STPL. You are further informed that PDL made the actual payment only on 10th January, 2018.
You are informed that the GST rates applicable for the product as under :
SGST 6%
CGST 6%
IGST 12%

2. Flix advertising, an advertising firm, gives an interest-free credit period of 30 days for payment by
the customer. One of its customers paid for the supply 40 days after the supply of service. Flex advertising
waived the interest payable for delay of ten days. The department wants to add interest for ten days as per
contract. Should national interest be added to the taxable value?
[Ans.: Once waived, the interest is not payable and is therefore, not to be added to transaction value: S.
15(1).]

3. ABC , a trader has agreed to supply certain imported goods for 15,00 ,000 + Basic Customs Duty
(BCD) of 1,50,000 to XYZ.
[Ans.: In this case, BCD shall also be included in the transaction value, if it is charged separately in the
invoice raised by the supplier of goods. Hence, GST shall be charged on (' 16,50,000 at the applicable rate
of such supplies vide S. 15(2)(a).J

4. ABC & Sons has agreed to supply a TV to XYZ at his residence. ABC & Sons raises the invoice for
80,000 for the said supply. XYZ paid 80,000 to tfte supplier at his shop. Further, XYZ paid 2,000 to concerned
Tempo Agency who delivered the TV at his residence, though it was payable by ABC & Sons as the term of
supply was free delivery at his residence.
[Ans.: In this case, (Rs. 2,000 paid to Tempo Agency shall be included in the value of taxable supply.
Consequently, value of taxable supply shall be (Rs. 82,000 [80,000 + (Rs. 2,000] for the purpose of levy of
relevant GST vide S. 15(2)(6).]

5. Tasty Foods Pvt. Ltd. gets an order for supply of processed food from Resto Ltd. Wants the
consignment tested for gluten for specified chemical residues Foods Pvt. Ltd. Does the testing and charges a
testing fee of 15,000 from the Resto- Ltd. Tasty Foods Pvt. Ltd. Argues that such testing fee should not from
part of the consideration for 'the as it is a separate activity. Is its wgument correct in the light of section 15?

6. Compute the value of taxable supplies if the contracted value of supply is 20,00 ,000 which includes
following.
 Particulars
Cost of primary packing 45 ,000
Cost of protective packing on customers request 25,000
Loading charges .
Design and drawing charges 30,000
1,00,00
Inspection charges 0
6,000 .
Testing charges 4500
Pre-installation consultancy charges 50,000
Trade discount 30,000
Additional information :
i. 70,000 Subsidy received from Central government for setting up factory.
ii. 60,000 Subsidy received from third party for supply of socially useful machine to recipient

Input Tax Credit

1. M/s X Ltd. being a registered person supplying taxable goods in the follov.ring manner :
Particulars
Intra-State supply of goods 18,00,000
Inter-State supply of goods 13,00,000

2. Govinda has the ITC balance brought forward from December 2017 CGST 12,200 , SGST
13,100 and GST 11,200 . He furnishes the following trade details for the month of January 2018.
Nature of Supply I Tax Rate Value of Supply
28% 18 12% 5%
Outward Intra-State ... ... ... ... ... 2,60 2,28,
% 3,60 4 ,20
Supply ,000 000 ,000 ,000
Outward Inter-State ... ... ... ... ... 1,20, 75 1,63, 1,85,
Supply 000 ,000 000 000
Inward Intra-State Supply ... ... ... ... 1,12, 1,50, 3,20, 3,15,
... 000 000 000 000
Inward Inter-State Supply ... ... ... ... 1',90, 1,60 1,65, 1,40,
...
You are required to prepare a statement showing 000 tax payable
,000 I 000
ITC carry 000
forward for the month of
January.

3. XYZ Ltd., is engaged in manufacture of taxable goods. Compute the ITC available with XYZ Ltd. for the
month of October, 2018 from the following particulars :
N Inward GST ((') Remarks
o Supplies
1 Inputs 'A' 1,00,000 .One invoice on which GST payable was 10,000,
. is missing
2 Inputs 'B' 50,000 Inputs are to be received in two installments . First
installment has been received in October, 2018.
3 Capital goods 1,20,000 XYZ Ltd. has capitalized the capital goods at full
invoice value inclusive of GST as it will avail
depreciation on the full invoice value.
4 Input services 2,25 ,000 One invoice dated 20-01-2018 on which GST payable
was 50,000 has been received in October, 2018.
Note :
(i) All the conditions necessary for availing the ITC have been fulfilled.
(ii) ABC Co. Ltd. is not eligible for any threshold exemption.
(iii) The annual return for the financial year 2017-18 was filed on 15-9-2018.

4. Bharat Ltd. is not required to register under CGST Act, 2017 but it wishes to obtain
voluntary registration so, it applied for voluntary registration on 18th 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 21,000 each.
Bharat Ltd. provides the following information of inputs held in stock on 24th September, 2018 . It is
not engaged in making Inter-state outward taxable supplies.
Particulars mount
Input procured on 02-09-2018 lying in stock : (t)
CGST @ 6% ... ... ... ... ... 4,50
SGST @ 6% ... ... ... ... ... 4,500
Input received on 21-02-2018 contained in semi-finished goods held in 0
stock
CGST: @ 6% ... ... ... ... ... 7,50
SGST @ 6% ... ... ... ... ... 0
7,50
Value of inputs contained in finished goods held in stock 2,00,000 0
were procured on 19-09-2017 :
IGST @ 18% 36,00
Inputs valued 50,000 procured on 13-09-2018 lying in stock : 0
IGST @ 18% 9,00
Capital Goods procured on 12-09-2018 : 0
CGST @ ·6% 12,00
SGST @ 6% 0
12,00
0
You are required to Compute the amount of tax to be paid in cash by Bharat Ltd. for the month of
September, 2018.

5. (a)Date of Invoice for supply of goods

(b) Due date of furnishing return for the month of September 2018
(c) Annual Return for the year 2017-18 furnished on
(i) Determine the time limit for availing input tax credit.
(ii) What will be the answer if the annual return is furnished on 15.10.2018 ?

6. (a) Date of Invoice for supply -of goods 24.11.2017

(b) Due date of furnishing return for the month of September 2018 26.11.2018
(c) Annual Return for the year 2017-18 furnished on 30.12.2018
(i) Determine the time limit for availing input tax credit.
(ii) What will be the answer if the annual return is furnished on 21.11.2018

Registration Under GST Law

1. M/s Moon Pvt. Ltd. incorporated in Chennai on 1-7-2017 has the following details for the year 2017-
18 :
Particulars Value (r in
i. Inter-State exempted supply of goods lacs)
4.00
ii. lntra-§tate supplies of services 5.00
iii. Non-taxable supplies 2.00
iv. Exempted supplies of services 0.60
v. Value of export of goods 7.00

Is M/s Moon Pvt. Ltd. required to register under GST Law? Whether your answer is different if no. (i) above,
inter-State taxable supply is of goods for Rs.4 lacs.

2. Mr. X is 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 2017-18 :
1. Sale of taxable goods by Head Office located in Chennai for Rs. 1,00,000
2. Supply of taxable services by Branch office at Bengaluru for Rs. 50,000
3. Supply of goods exempted from GST Rs. 10,000
4. Export of goods and services for Rs. 2,00,000
5. Sale of goods acting as (C & F) agent on behalf of principal for Rs. 15,00,000.

3. Discuss whether GST registration is required in the case given below (these are cases of inter- state
taxable supplies of goods and supplies of services) .
1. X is supplier of handicraft goods (aggregate turnover not more than 20 lakh I 10 lakh, having
PAN).
 2. Z is any other supplier (aggregate turnover not more than 20 lakh I '{ 1O lakh).
3. A is any other supplier (aggregate turnover more than '{ 20 lakh I 10 lakh}.
Sr. Inter-State Supply of Goods Inter-State Supply of Services
No.
1. Registration not
2. required Registration Registration not required
3. required Registration Registration required 1
required
4. M is located in Delhi and Harayana. He provides the following information
Particulars
Value of Supply of Goods in Delhi 7,00,000
Value of Exempt Supply 6,00,000
Value of Supply of Renting of Immovable 9,00,000
Property Services in Delhi
Does M require any registration?

Computation of Tax liability

Illustration 4:
X Ltd has following tax liabilities under the provisions of Act :
Particulars mount (()
Tax liability of CGST, SGST/UGST, IGST for supplies made during August 2017 1,00 ,000
Interest & Penalty on delayed payment and filing of returns belonging to August 20,000
2017

Tax liability of CGST, SGST/UGST, IGST for supplies made during September 2017 1,20 ,000
Interest & Penalty on delayed payment and filing of returns belonging
to September 2017 20 ,000
Demand raised as per section 73 or section 74 under CGST Act, 2017
belonging to July 2017 8,00,000
Demand raised as per the old provisions of Indirect Taxes 1,00,000
X Ltd has 5,00,000 in Electronic cash ledger. Suggest how X Ltd should discharge the tax liability

Illustration 3:
Vasai Post office provided the following services to persons other than Government during the month
editing 31-03-2018; all charges are exclusive of GST. Compute value of taxable supply
Service Rendered Amou
1 Basic mail service 2,00,0
nt
2. Transfer of money through money orders 6,00,0
00
.
3 Operation of saving accounts 00
1,75,0
.
4 Rural postal life insurance services 00
2,00,0
.
5 Distribution of mutual funds, bonds and passport 00
5,00,0
.
6 applications
Issuance pf postal orders 00
3,00,0
.
7 Collection of telephone and electricity bills 00
1,00,0
. 00
llustration 4 : [Renting - Entry 12]
M/s RSM Properties registered under GST as taxable person engaged in the business of renting
various immovable properties owned by it. During the month ending 31-03-2018 , it collected a rent
of '{ 5,00,000. The said sum includes rent from :
(1) Vacant land used for agriculture : '{ 50,000;
(2) Land used for Amar Circus '{ 75,000 ;
(3) Houses let to individual for residential purposes : '{ 70,000;
(4) Building let to M/s. KS Hotel : '{ 65,000;
(5) Vacant land, given on lease to M/s. XYZ Ltd. for construction of building at a later stage to be
used for furtherance of business or commerce : '{ 40 ,000;
(6) Premises let to a temple trust : '{ 40,000 ;
(7) Premises let to a coaching centre : '{ 60,000;
 (8)Building let to a theatre : '{ 1,00,000 .
Compute the amount of GST payable by the firm, assuming that the rent is exclusive of GST, if any,
applicable in each case . Rate of GST - 18%.

Illustration 6: Transport of Passengers by Air : Entry No. 15 Notification No. 12/2017

Compute value of taxable supply of services of Air Speed Airlines located in Chennai for transportation of
passengers by air from the following data relating to sums received exclusive of GST :
(1) Passengers embarking at Arunachal Pradesh : 5 lakhs;
(2) Amount for journey terminated at Assam : 4 lakhs;
(3) Amount charged from passenger for flights starting from USA to Chennai : 250 lakhs;
(4) Amount charged from passengers flying from Chennai to Sydney (Business class) : 540 lakhs
(including passenger taxes levied by government and shown separately on ticket : 100 lakhs). All
passengers booked ticket from Delhi Office of Air Speed Airlines.
(5) Passengers embarking from Chennai to Coimbatore (Economic class) : 4 lakhs. Passengers booked
tickets from Chennai office of Air Speed Airlines .

Illustration 7 : [Transport of Passenger by Land I Water - Entry 15 & 17]

M/s. ABC Ltd. Is engaged in providing service of transportation of passengers by following modes in the
month of November, 2018 :
Particulars
1. Service of transportation of passengers by vessels in National 4,00,0
2. Service of transportation of passengers by Air conditioned Stage 25
Waterways 00
carriage
3. Service of transportation of passengers by non-air-conditioned Stage ,00,0006,00,0
carriage
4. Service of transportation of passengers by contract carriage for tourism 2000
5. Service of transportation of passengers for Mumbai to Chennai port ,00,000
in a vessel and such service is not for tourism purpose 8,50,0
6. Service of transportation of passengers in Metered Cab 00
5,00,0
7. Service of transportation of passengers in Radio Taxis 10,00,
00
8. Service of transportation of passengers in non-Air conditioned contract 0006,00,0
carriages
9. Service of transportation of passengers in Air conditioned contract 15,00,000
carriagesthe value -of taxable supply if all charges are exclusive of GST.
Compute 00

Illustration 8: [Transport of Passengers by Railways: Entry No. 17 NN 12/2017]

Indian railways has provided following services:
(1) Transport of passengers by general class : 15,00,000;
(2) Transport of passengers by sleeper class : 10,00,000;
(3) Transport of passengers by 1st Class air conditioned coach : 5,00 ,00 ,000;
(4) Transport of passengers by 2 tier air conditioned coach: 20,00,00 ,000;
(5) Transport of passengers by 3-tier air conditioned coach: 30,00,00 ,000; Compute value of
taxable supplies and GST liability. Applicable GST rate is 5%.

Illustration 9 : [Transport of Specified Goods by Rail : Entry No. 2o ·NN 12/2017]

Compute taxable value for transport of goods by rail within India (all sums exclusive of all taxes) :
(1) Transport of postal mails and postal ·bags : 55 lakhs;
(2) Transportation of household effects : 50 lakhs;
(3) Transport of petroleum products : 25 lakhs;
(4) Transport of relief materials to flood affected areas : 25 lakhs;
(5) Transport of newspapers and magazies registered with registrar of newspapers : 15 lakhs
(6) Transport of milk : 15 lakhs;
(7) Transport of alcoholic beverages : 7 lakhs;
(8) Transport of defence and military equipments : 40 lakhs;
(9) Transport of chemical fertilizers : 90 lakhs;
(10) Transport of other taxable goods : 200 lakh (including 20 lakhs demurrages).

Illustration 12 : [Bank : Entry No. 27 and 34 Notification No. 12/2017]

Robinson Bank Ltd. furnishes the following information relating to services provided and the gross
amount received during the month of December 2017. Compute the value of taxable supply of
 services and GST payable :
Particulars
Amount of commission received for debt collection service 10,00,
Discount earned on bills discounted 4,50,
000
Dealing in sale and purchase of forward contract 000
5,70,
Charges received on credit card and debit card facilities extended 000
3,80,
Penal interest recovered from the customers for the delay 000
in repayment of loan 2,60
Commission received for service rendered to Government ,000
for tax collection 6,00
Interest earned on reverse repo transaction 25,000
Service to merchants using Bank's POS machines ,00,00
10,00,
(in 30% cases, amount of transaction was upto 2,000) 0000
(Show the workings with explanation wherever required). (Rate of GST is 18%.)

Illustration 18: [Education ·Entry No. 66 of Exemption Notification No. 12/2017]

ABC Ltd. is engaged in providing various service to educational institutional and furnishes you with the
following information for the month of April 2018 . You are required to determine the value of taxable
supply and GST payable thereon if all charges are exclusive of GST. The rate of GST is 18%.
(1) Renting of immovable property to higher secondary school: 12,00,000
(2) Renting of immovable property to commercial coaching centre: 2,00,000
(3) Transportation service provided to students of higher secondary school: 5,00,000
(4) Outdoor catering service provided to educational institutions running approved vocational courses :
5,00,000
(5) Security services provided to pre.nursery school: 1,25,000
(6) House-keeping and cleaning service in college providing recognized graduation degree :
5,12,500
(7) Conduct of examinc\tion of ICSI: 10,00,000
(8) Placement service provided to ICAI: 12,00,000
(9) Development of course contain of ICMA: Institute- 2,00,000
(10) Training of staff of higher Secondary School: 1,50,000

lllustratfon 25 : [Admission - Entry 81)

Compute the taxable ,value of supply of service of ABC Ltd. for the month of June 2018 from the
following information .
Particulars
(1) Entry fees received for cultural programme organised
in open theatre to 1,250 persons 5,00
(2) Receipts on account of stand-alone ride in a mall 2,00
(3) Receipts of video parlours exhibiting movies ,000
,000
2,00
(4) Auxiliary services provided in capacity of an event manager ,000
for organising an event 15,00,0
(5) Receipts from running Rocky Circus. Entry fees 800 per person 00
8,00
(6) Receipts on account of admission to award function where ,000
the consideration for admission is 500 per person 5,00,0
(7) Receipts on account of admission to musical performance 00
where the consideratjon for admission is 1,000 per person 10,00,0
(8) Receipts on account of admission to recognised sporting event 00
where the consideration for admission is 1,000 per person 10,00,
(9) Receipts on account of admission to non-recognised sporting 000
event where the consideration for admission is 1,000 per person 10,00,
(10) Receipts of amusement park 000
15,00,
000
Illustration 26: (Hiring Services)
From the following information pertaining to month ending 30-9-2017, compute the value of taxable
supply and GST payable thereon @ 18% if all charges are exclusive of GST :
· 1. Renting of bus to state transport und.ertaking : 15 lakh
2. Renting of goods vehicle to a goods transport agency : 25 lakh
3. Renting of dumpers : 15 lakh
4. Hiring of audio visual equipments for an event : 15 lakhs
5. Hiring of panda! or shamiana for organising functions/events : 20 lakh
 6. Hiring of a machinery with transfer of right to use : 60 lakh [The rate of tax on sale of such
machinery (with transfer of title) is 18%].
7. Hiring of agro machinery for use in agriculture : 15 lakh

Illustration 32: (Composition)

Mis 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.
1. Determine whether Sai Trading Company will be eligible for composition levy, as on 31-10-2017 . 2 . Will
your answer be different, if in the above scenario, Mis Sai Trading Company is making intra- state supply
within the state of Jammu and Kashmir ?

Illustration 33 : (Date of Registration : Rule 10)

Determine the effective date of registration in the following instances :
1. The aggregate turnover of Madhu Ltd., engaged in taxable supply of seNices in the state of Punjab,
exceeded 20 lakh on 25th August, 2017 . It applies for registration on 19th September, 2017 and is
granted registration certificate on 29th September, 2017.
2. What will be your answer, if in the above scenario, Madhu Ltd. submits the application for
registration on 27th September, 2017 and is granted registration on 5th October, 2017 ?

Illustration 61 : (Value o,f Supply)

Raman Ltd., 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 :
Particulars Sahi Jag
I gi

1. Price of the goods (excluding GST) Trad

20 Mo
2 . Packing charges ,000
ers 6 tor
3. Commission f 0
4 s
4. Weighment charges 0
0
5. Discount for prompt payment (recorded in the invoice) 0 Ltd
Items given in points (1) to (5) have not been considered while arriving at price . f of the goods given
in point (1) above.
15,0
Compute the GST liability [CGST and SGST and IGST, as the case may be] of Raman Ltd. for the given
00
month. Assume the rates of taxes to be as under :
Particulars Rate of
Central Tax Tax
9% 1,0
(CGST) State Tax 9% 00
(SGST) 18% 5
Note : The supply made to Sahil Traders is an inter-state supply.
Integrated Tax 0
(IGST) 0
Illustration 64 : (Value of Supply)
Candy Blue Ltd., Mumbai, a registered supplier, is manufacturing chocolates and biscuits. It provides
the following details of taxable inter-state supply made by it for the month of October, 2017 .
Particulars
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 1,20,0
2School
. Subsidy from Trade Association for supply of quality biscuits ... ... ... ... ... 0030
Items not adjusted in the price given in (i) above : ,000
3. Tax levied by Municipal Authority ... ... ... ... ... 24,0
4. Packing Charges ... ... ... ... ... 00
12,0
5. Late fee paid by the recipient of supply for delayed payment of invoice 00
5,0
...Calculate
... ... the value of taxable supply made by M/s Candy Blue Ltd. for the month of 00October, 2017.

Illustration 71 : (Registration)
With the help of the following information in the case of M/s Jayant Enterprises, Jaipur (Rajasthan)
for the year 2017-18, determine the aggregate turnover for the purpose of registration under
 the CGST Act , 2017 .
Particulars
1. Sale of diesel on which Sale Tax (VAT) is levied
by Rajasthan Government 1,00,
2. Supply of goods, after completion of job work, from the place of
Jayant Enterprises directly by principal ... ... ... ... ... 000
3,00,0
3. Export supply to England (UK) ... ... ... ... ... 00
5,00
4 . Supply of its own additional place of business in Rajasthan ... ... ... ... ... ,000
5,00
5 . Outward supply on which GST is to be paid by recipient under reverse ,000
1,00
charge
All the above amounts are excluding GST. ,000
You are required to provide reasons for treatment of various items given above.

Illustration 72 : (Registration)
Rishabh Enterprises - a sole proprietorship firm - started an air-conditioned restaurant in Virar,
Maharashtra in the month of February wherein the customers are served cooked food as well
as cold drinks/non-alcoholic beverages. In March, the firm opened a liquor shop in Raipur,
Uttarakhand for trading of alcoholic liquor for human consumption .
Determine whether Rishabh Enterprises is liable to be registered under GST law with the help of
the following information :
Particulars February March
r· r·
Serving of cooked food and cold drinks/non-alcoholic
beverages in ·restaurant in Maharashtra ... ... ...
5,50 ,000 6,50,000
... ... Sale of alcoholic liquor from human consumption in
Uttarakhand .. ... ... Interest received from banks on the - 5,00,000
fixed deposits ... ... ... 1,00,000
... ... Export of packed food items from restaurant in 1,00,000
1,50,000
Maharashtra . ... ... ... ... 2,00,000
* excluding GST
You are required to provide reasons for treatment of various items given above . . .

SERVICES EXEMPT FROM IGST [NOTIFICATION NO. 9/2017]

Apart from above, list of services exempt from IGST by Notification No. 9/2017-Integrated Tax (Rate)
Dated 28th June 2017 also include following three services.
Sr. No. Exempted Services
1 Services received from a provider of service located in a non - taxable
territory by
the Central Government, State Government, Union territory, a local authority,
a governmental authority or an individual in relation to any purpose other than
commerce, industry or any other business or profession;
(b) an entity registered under section 12AA of the Income-tax Act, 1961 (43 of
1961) for the purposes of providing charitable activities; o r
(c) a person located in a non-taxable territory: Provided that the exemption shall
not apply to —
(i) online information and database access or retrieval services received by persons
specified in entry (a) or entry (b); or
(ii) services by way of transportation of goods by a vessel from a place outside
India up to the customs station of clearance in India received by persons
specified in the entry.
2 Services received by the Reserve Bank of India, from outside India in
relation to management of foreign exchange reserves.
3 Services provided by a tour operator to a foreign tourist in relation to a tour
conducted wholly outside India.

3.3 OTHER NOTIFIED EXEMPT SERVICES: Further Notifications for exemption of services.

S.No. Description of Services

1 Intra-State supplies received by a registered person from any unregistered
supplier exempt from CGST
Intra-State supplies of goods or services or both received by a registered person from any
unregistered supplier, are exempt from the whole of the central tax leviable thereon
under section 9(4).
Provided that the said exemption shall not be applicable where the aggregate value
of such supplies of goods or services or both received by a registered person from any
or all the suppliers, who is or are not registered, exceeds Z 5,000 in a day
[Notification No. 8/ 2017 CT (R) dated 28-6-2017]. [Applicability of proviso deferred
till 30-6-2018]
2 Intra-State supplies received by a TDS deductor from any unregistered
supplier exempt from CGST
Intra-State supplies of goods or services or both received by a deductor under section
51, from any unregistered supplier, is exempt from the whole of the central tax leviable
thereon under section 9(4), subject to the condition that the deductor is not liable to be
registered otherwise than under section 24(vi) [Notification No. 9/2017 CT (R) dated
28.06.2017].
3 Services imported by unit/developer in SEZ exempt from IGST
All services imported by a unit/developer in the Special Economic Zone (SEZ) for
authorised operations are exempt from the whole of the integrated tax leviable thereon
under section 3(7) of the Customs Tariff Act, 1975 read with section 5 of the IGST Act,
2017 [Notification No. 18/2017 IT (R) dated 05.07.2017].