M.

COM ADVANCED ACCOUNTANCY

PART- II SEM- IV

INDIRECT TAX

INTRODUCTION OF GOODS AND SERVICES

TAX
OBJECTIVES
TRUE OR FALSE (1 MARK EACH)
1. Goods and Services Tax is in nature a value-added tax. T
2. GST is a destination based tax. T
3. IGST = CGST + SGST. T
4. India has adopted Dual GST Mode. T
5. CGST is applicable to imports. F
6. Custom duty is subsumed in GST. F
7. The Prime Minister is the Chairperson of the GST Council. F
8. A supplier is liable to be registered in the State from where he makes the highest taxable supply. F
9. A casual taxable person making taxable supply in India has to compulsorily take registration. T
10. Aggregate turnover excludes Inward supplies taxed under RCM. T
11. An inter- state supply or import will be subject to the levy of IGST. T
12. Export of goods will be zero rated supply. T
13. The person liable to pay tax may be the supplier of the recipient. T
14. Supply of alcoholic liquor is exempt supply. F
15. Exemption should be on the recommendation from GST Council. T
16. Supply of goods in the course of import into the territory of India is intra- state supply. F
17. Import/ Export is treated as inter- state supply. T
18. The place of supply of training services will be where services are actually performed if the
recipient is unregistered. T
19. Any supplies made to SEZ unit/ developer or vice versa are inter- state supplies. T
20. The provisions relating to nature and place of supply are found in the IGST Act. T

CONCEPT BASED QUESTIONS (2 MARKS EACH)

1. Compensation Cess
2. SGST
3. ITGST
4. GSTN
5. GST Council
6. Non- Taxable Supply
7. Casual Taxable Person
8. Non- Resident Taxable Person
9. Electronic Commerce Operator
10. E- way Bill System
11. State any 2 benefits of GST
12. State any 2 exemption under GST
PRATICAL QUESTION (5 OR 10 MARKS)
Q. Determine place of supply, nature of supply and GST applicable.
Name of Supplier Location of Name of Location of Site of Assembly/
Supplier Recipient Recipient Installation
Ms. Shayamsundar Karnataka Mrs. Bhavika Gondhiya, Delhi
Mr. Pramod Karnataka Ms. Krutika Maharashtra Rajasthan
Mr. Rohiidas Tamilnadu Mrs. Brinda Bhuj, Gujarat Mumbai
Mr. Mahendra Kerala Mrs. Bharati Tamilnadu Karnataka
Kumar Mumbai Mrs. Mamta Mandavi, Gujarat Navi Mumbai
Mr. Hiren Navi Mumbai

Q. From the following information determine the place of supply of goods as per Section 10(1) (b) of
IGST Act, 2017, where the goods are delivered by the supplier to a recipient on the direction of a third
person during the course of movements of goods. Also determine the nature of supply- whether inter sate
or intra state supply.
Supplier and his Location of the buyer Recipient and his Place of delivery of the
location (third person) location goods
Mr. Atul, Indore Mr. Alok, Indore Mr. Ramesh, Surat Surat
Mr. Atul, Indore Mr. Ramesh, Surat Mr. Alok, Indore Indore
Mr. Atul, Indore Mr. Manthan, Mumbai Mr. Ramesh, Surat Surat
Mr. Atul, Indore Mr. Ramesh, Surat Mr. Subhash, Surat Surat

Q. M/s Flow Pro sold a machine to BP Ltd. it provided the following particulars in this regard.
PARTICULARS AMOUNT
(RS.)
1. Price of the machine (excluding taxes and incidental charges) 30,000
2. Machine was subject to third party inspection. The inspection charges have
been directly paid by BP Ltd. to the inspection agency 5,000
3. Freight charges for delivery of the machine (M/s Flow Pro has agreed to
deliver the goods at BP Ltd.’s premises) 2,000
4. Subsidy received from State Gvt. On sale of machine under skill
development programmme. (the subsidy is directly linked to the price) 5,000
5. Discount of 2% is offered to BP Ltd. on the price and recorded in the
invoice
Note- Items given in (2) to (5) have not been considered in the price given in (1). Determine the value of
supply.

Q. Goodluck Ltd. Of Nashik, Maharashtra has effected intra-state supplies of taxable goods amounting RS.
38,00,000 till 31st December, 2018. On 1st January, 2019 it has effected inter- state supply of taxable goods
amounting RS. 20,000. Goodluck Ltd. Is of the opinion that it is not required to get registered under GST
Law since its aggregate turnover is not likely to exceed RS. 40,00,000 during financial year 2018-19. You
are required to advise the company relating to registration requirements.

Q. M/s. Moon Pvt. Ltd. Incorporated in Chennai on 01-04-2019 has the following details for the year
2019-20.
PARTICULARS VALUE (RS. IN LAKHS)
1. Inter- State exempted supply of goods 4.00
2. Intra- state supplies of services 5.00
3. Non- taxable supplies 2.00
 4. Exempted supplies of services 0.60
5. 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. 1.
Above, inter- state taxable supply is of goods for RS. 4 lakhs.

Q. Calculate aggregate turnover of Mrs. Bhagyashree based on the following details given by her-
PARTICULARS RS.
1. Taxable Supplies including GST @ 12% 4,48,000
2. Exempt Supplies 78,000
3. Export of goods 2,37,000
4. Export of Services 3,94,000
5. Inward supplies on which tax is payable under reverse charge 49,000
6. Cess 12,000
7. Inter- state supplies excluding GST @ 18% 5,90,000

Q. Sajan started business in April 2018. From which month he will be liable for registration as per the
provisions of the GST Act. Give reasons.
MONTH/ YEAR PURCHASES SALES
2018 TAXABLE TAX FREE TAXABLE TAX FREE
April to June 3,50,000 1,35,000 7,50,000 19,00,000
July 2,500 24,000 7,00,000 7,60,000
August 3,500 52,000 1,00,000 6,50,000
September 3,000 25,000 4,00,000 2,80,000
October 4,500 72,000 2,50,000 7,50,000
November 6,000 2,25,000 4,500 3,26,000
December 9,000 75,000 7,000 84,000

Q. Vasai Post office provided the following services to persons other than Government during the month
editing 31-03-2020; all charges are exclusive of GST. Compute value of taxable supply.
Services Rendered ₹
1. Basic mail service 2,00,000
2. Transfer of money through money orders 6,00,000
3. Operation of saving accounts 1,75,000
4. Rural postal life insurance services 2,00,000
5. Distribution of mutual funds, bonds and passport applications 5,00,000
6. Issuance of postal orders 3,00,000
7. Collection of telephone and electricity bills 1,00,000
8. Pension payment services 50,000
9. Speed post service 5,00,000
10. Express parcel post service 2,00,000

Q. 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 31-03-2019, 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%.

Q. Calculate the value of Taxable Supply:

1. Supply of farm labour ₹ 1,00,000
2. Transport of postal mail or mail bag by a vessel ₹ 60,000
3. Warehousing of potato chips ₹ 1,05,000
4. Renting of hotel rooms with food (tariff ₹ 2,000 per day) ₹ 2,10,000
5. Asset Management Services ₹ 30,000
6. Royalty for providing use of technical knowhow ₹ 2,50,000
7. Development and Design of Information Technology Software ₹8,00,000