GST Practice Session 03

Topics covered : Exemption under GST / Registration

Illustration 01
Services provided by an entity registered under section 12AB of the Income-tax Act, 1961
are exempt from GST if such services are provided by way of charitable activities.
Elaborate the term ‘charitable activities’
[MTP Nov 23 & MTP Sep 24]

Illustration 02
Mr. Shyam Das was admitted to Suraksha Hospital in Mumbai for 2 days in relation to
diagnosis of removal of stones from his kidney. For the said services, Surkasha hospital
charged following from Mr. Das:
1. Room rent 7,000 per day for 2 days.
2. Operation theatre charges 5,000
3. Doctors Consultation Charges 8,000
4. Other services 4,000
In each of the above scenario explain whether Suraksha Hospital should levy GST or not
in line with the relevant provisions of the GST laws.
[PYQ May 23]

Illustration 03
State with reasons, whether GST is payable in the following independent cases:-
(i) Food supplied by the canteen run by a hospital to the in-patients as advised by the
doctors.
(ii) An RWA in a housing society, registered under GST, collects the maintenance
charges of Rs. 6,500 per month per member.
[MTP May 23]

Illustration 04
Determine whether GST is payable in each of the following independent transactions:
(i) Dhruv Developers sold a plot of land in Greater Noida after levelling, laying down of
drainage lines, water lines and electricity lines.
(ii) Deccan Shipping Pvt. Ltd., registered under GST in Andaman and Nicobar islands,
provided the passenger transportation services to the local residents in the ferries
owned by it from Neil Island to Havelock Island.
[RTP May 23]

Illustration 05
Determine the GST payable @ 18% with respect to each of the following independent
services provided by the registered persons:
Particulars Gross amount
charged
Fees charged for ‘Swasthya Yoga Camp’ conducted by Chandra 98,000
Prakash
Charitable Trust, registered under section 12AB of the Income-tax
 Act, 1961

Amount charged by business correspondent from Wealthy 1,00,000

Banking Company for the services provided to the rural branch
of a bank with respect to Savings Bank Accounts
Amount charged by cord blood bank for preservation of stem 5,00,000
cells
Amount charged for service provided by selectors to a 5,20,000
recognized sports body
[MTP Nov 22]

Illustration 06
State with reasons, whether GST is payable in the following independent cases:
1. Services provided to recognized sports body as selector of national team.
2. Services provided by way of transportation of passengers in metered cab, through
an electronic commerce operator.
[MTP Nov 22]

Illustration 07
Miss. P, a registered supplier of Rajasthan, has received the following amounts in
respect of the activities undertaken by her during the month of April:
S. Particulars Amount
No.
1 Amount received for warehousing of sugarcane 50,000
2 Commission received as business facilitator for the services 20,000
provided to the urban branch of a nationalized bank with
respect to savings bank accounts
3 Amount received for services by way of labour contracts for 10,000
repairing a single residential unit otherwise than as a part of
residential complex
All the transactions stated above are inter-State transactions and all amounts are
exclusive of GST.
You are required to compute total GST payable by Miss. P for the month of April
assuming the rate of GST to be 18%.
[MTP May 23]

Illustration 08
Nath Services Limited, registered under GST, is engaged in providing various services to
Government. The company provides the following information in respect of services
provided during the month of April:

S. No. Description of Services provided

1. Supply of manpower for cleanliness of roads not involving any supply of
goods.
 2. Service provided by Fair Price Shops owned by Nath Services Limited by
way of sale of sugar under Public Distribution System against
consideration in the form of commission.
3. Service of maintenance of street lights in a Municipal area involving
replacement of defunct lights and other spares along with maintenance.
Generally replacement of defunct lights and other spares constitutes 35%
of the supply of service.
4. Service of brochure distribution provided under a training programme for
which 70% of the total expenditure is borne by the Government.
Comment on the taxability or otherwise of the above transactions under
GST law. Also state the correct legal provisions for the same
[MTP May 24 & RTP May 22]

Illustration 09
Briefly examine the taxable value of supply in the following independent cases:
(i) Jivan Limited, registered under GST, provided services amounting to ₹ 10,00,000
to a Governmental Authority by way of sanitation conservancy.
(ii) Raju Transporters, a registered Goods Transport Agency (GTA) provided service
of transportation of goods to Kukreja & Kukreja Co.-a unregistered partnership
firm. Kukreja & Kukreja Co. paid ₹ 8,000 to Raju Transporters as consideration.
(iii) Amardeep Hospital provided services in Neo natal Intensive Care for 2 days for
which ₹ 15,000 are charged per day from Mr. Chopra for his new born son,
Viraat
[RTP Sep 2024]

Illustration 10
AB Ltd., a registered company of Chennai, Tamil Nadu has provided following services
for the month of October, 2021

Particulars Amount
(₹)
Services of transportation of students, faculty and staff from home to 2,50,000
college and back to Commerce College, (a private college) providing
degree courses in BBA, MBA, B.Com., M.Com.
Online monthly magazine containing question bank and latest updates 1,00,000
in law to students of PQR Law College offering degree courses in LLB
and LLM
Housekeeping services to T Coaching Institute 50,000
Security services to N Higher Secondary School 3,25,000
Services of providing breakfast, lunch and dinner to students of ABC 5,80,000
Medical College offering degree courses recognized by law in medical
field
All the above amounts are exclusive of GST.
Compute the taxable supplies of AB Ltd. for the month of October 2021 with necessary
explanations.
[PYQ Nov 2021 & MTP Sep 24]
Illustration 11
Examine whether the supplier of goods is liable to get registered in the following
independent cases:
1. Om Sai Builders of Rohini, Delhi is exclusively engaged in intra-
State taxable supply of building bricks. It’s aggregate turnover in the current
financial year is Rs. 23 lakh.
2. Hukum Chand of Himachal Pradesh is exclusively engaged in intra State taxable
supply of footwear. His turnover in the current financial year (FY) from Himachal
Pradesh showroom is Rs. 32 lakh. He has another showroom in Nagaland with a
turnover of Rs. 11 lakh in the current FY.
[MTP May 24 & RTP Nov 22]

Illustration 12
Examine whether the supplier of goods is liable to get registered in the following
independent cases:-
a) Raghav of Assam is exclusively engaged in intra-State taxable supply of readymade
garments. His turnover in the current financial year (FY) from Assam showroom is
Rs. 33 lakh. He has another showroom in Tripura with a turnover of Rs. 11 lakh in the
current FY.
b) Prince of Panjim, Goa is exclusively engaged in intra-State taxable supply of shoes.
His aggregate turnover in the current financial year is Rs. 22 lakh.
c) Heera of Himachal Pradesh is exclusively engaged in intra-State supply of pan
masala. His aggregate turnover in the current financial year is Rs. 24 lakh.
[MTP Nov 23 & MTP Nov 22]

Illustration 13
Madhav Oils, Delhi has supplied machine oil and high-speed diesel in the month of April
as per the details given in table below. Madhav Oils is not yet registered.
S. No. Particulars Amount *
1. Supply of machine oil in Delhi 15,00,000
2. Supply of high-speed diesel in Delhi 10,00,000
3. Supply of machine oil made in Punjab by Madhav Oils from its 10,00,000
branch located in Punjab
*excluding GST
Determine whether Madhav Oils is liable for registration.
[MTP Nov 22]

Illustration 14
Determine the effective date of registration in following cases:
(a) The aggregate turnover of Dhampur Footwear Industries of Delhi has exceeded the
applicable threshold limit of Rs. 40 lakh on 1st September. It submits the application
for registration on 20th September. Registration certificate is granted to it on 25th
September.
(b) Mehta Teleservices is an architect in Lucknow. Its aggregate turnover exceeds Rs.
20 lakh on 25th October. It submits the application for registration on 27th
November. Registration certificate is granted to it on 5th December
[MTP May 23]

Illustration 15
Briefly enumerate the contraventions which make a registered person liable to
cancellation of registration, as prescribed under rule 21 of the CGST Rules, 2017.
[RTP May 23]

Illustration 16
Mr. Raj of Rajasthan intends to start business of supply of building material to various
construction sites in Rajasthan. He has taken voluntary registration under GST in the
month of April. However, he has not commenced the business till December due to
lack of working capital. The proper officer suo-motu cancelled the registration of Mr.
Raj. You are required to examine whether the action taken by proper officer is valid in
law?
Mr. Raj has applied for revocation of cancellation of registration after 40 days from the
date of service of the order of cancellation of registration. Department contends that
application for revocation of cancellation of registration can only be made within 30
days from the date of service of the order of cancellation of registration. You are
required to comment upon the validity of contentions raised by Department.
[MTP May 24 & RTP May 22]

Illustration 17
B Enterprises started its business activities in the month of January, in the State of
Karnataka. It provides the following information:
Sr.No. Particulars Amount

1. Value of intra-State outward taxable supply of goods 7,00,000

2. Value of inter-State outward taxable supply of services 6,00,000
3. Value of intra-State outward supply on which tax is 1,00,000
payable under reverse charge mechanism.
4. Value of intra-State outward supply of exempted good 5,00,000
from its other place of business in the State of Manipur
(under same PAN)
From the information given above, you are required to calculate the aggregate
turnover of B Enterprises with necessary explanations and also, specify with reason
whether it is liable to get registered under CGST Act or not.
[MTP May 23]

Illustration 18
Ranmo Limited, a registered entity under GST has demerged its operations with effect
from 31st October, 2023. The registration of Ranmo Limited has been cancelled suo-
motu by the Proper Officer. The order of cancellation of registration was passed on 4th
November, 2023 and was served on 7th November, 2023
Ranmo Limited wishes to apply for revocation of cancellation of registration on 4th
February, 2024. The tax consultant of Ranmo Limited advised that application for
revocation of cancellation or registration is time barred and hence not valid in law.
You are required to examine the technical veracity of the advice given by Tax
Consultant of Ranmo Limited.
[RTP Sep 2024]

Illustration 19
Examine whether the liability to register compulsorily under section 24 of the CGST Act,
2017 arises in each of the independent cases mentioned below:
(1) Heera, a supplier in Haryana, is exclusively engaged in supply of potatoes produced
out of cultivation of his own land, within Haryana and also outside Haryana.
(2) Aanya of Telangana is exclusively engaged in intra-State supply of toys. Its
aggregate turnover in the current financial year is ₹ 22 lakh.
[RTP Nov 2021]

Illustration 20
Mr. Q, a casual taxable person of Gujarat state is a trader of taxable notified handicraft
goods. It makes supplies to the states of Maharashtra, Rajasthan and Andhra Pradesh.
Turnover for October, 2021 is ₹ 18 Lakh.
1) Explain the provisions of registration for casual taxable person under GST. Examine
whether Mr. Q is liable for registration or not?
2) What will be the answer if Mr. Q makes trading in taxable notified products instead
of taxable notified handicraft goods which involves 75% making on machine and 25%
by hand?
[PYQ Nov 2021]

MCQ Questions :-

1) KK & Co obtained GST registration on 1 January. However, it failed to furnish GST

returns for the next 6 months. Consequently, the proper officer cancelled its
registration on 28 July. The order was served on 31 July. KK & Co wishes to revoke
the cancellation. Determine the date (without any extension) up to which KK & Co
can file application for revocation
a) 26 October
b) 29 October
c) 29 September
d) Cannot file

2) Kashi & Co of Tamil Nadu is engaged in intra State taxable supply of goods. It
commenced business on 1April and its aggregate turnover exceeded ₹ 40 lakh on 1
September. It applied for registration on 10 September and was granted registration
on 20 September. Registration is effective from which date?
a) September
b) 1 October
c) 20 September
d) 10 September
1) Mr. Y applied for GST registration on 1 May and was granted registration on 10 May.
He, however, did not furnish details of bank account while applying for registration.
The details of outward supplies in GSTR-1 have been furnished on 5 June. What is the
date latest by when Mr. Y needs to furnish his bank account details?
a) 9 June
b) 10 May
c) 5 June (before furnishing GSTR-1)
d) 1 May

2) Pursuant to a survey, the proper officer has found that Mr. C and Mr. D had failed to
apply for registration. Hence, he has suo motu registered both of them on a
temporary basis and registration has been granted on 1 August vide order of the
same date. While Mr. C has accepted the order, Mr. D has decided to appeal. The
appeal of Mr. D has been rejected and the order in appeal has been issued on 15
September. Which of the following statements is correct?
a) Mr. C should submit the application for registration within 90 days from 1 August
and GSTIN will be effective from 1 August
b) Mr. D should submit the application for registration within 90 days from 1 August
and GSTIN will be effective from 1 August
c) Mr. D should apply for registration within 30 days from 15 September and GSTIN
will be effective from 15 September
d) Mr. C should apply for registration within 30 days from 1 August and GSTIN will be
effective from 1 August

3) Z Pvt. Ltd. is engaged in supply of electronic items. It has Head Office and Branch 1 in
Karnataka and Branch 2 in Goa. It has obtained single registration each in Karnataka
and Goa. It has supplied goods from Head Office to Branch 1 and from Head Office to
Branch 2 without consideration. Is tax payable on these supplies?
a) Yes, on both the supplies
b) No, on none of the supplies
c) Yes, only on supply from Head Office to Branch 1
d) Yes, only on supply from Head Office to Branch 2

4) Mandeep of Telangana started his business during June and made the following
supplies during the month: Supplies of taxable goods in Telangana of R 15 lakh;
supplies of exempt goods in Telangana of ₹ 2 lakh; supplies of taxable goods to
Maharashtra of ₹ 2 lakh. Determine if he is required to obtain registration?
a) No, as he is making exempt supplies
b) Yes, as ATO exceeds ₹ 10 lakh
c) No, as ATO does not exceed ₹ 20 lakh
d) Yes, as he is making inter State supplies

5) JJ Traders supplies interior decoration items in the State of Tamil Nadu and is
registered there. It plans to participate in a month-long interior expo to be held in
Bangalore and expects to make supplies of ₹ 1 lakh in the expo. Is JJ Traders
required to get registered in Karnataka?
a) No, as it is already registered in Tamil Nadu
 b) No, as turnover of 1 lakh is below registration limit
c) No, as it will not make inter State supplies from Karnataka
d) Yes, as it is a casual taxable person

6) Q. Pvt. Ltd. has its head office in Patna and a branch office in Varanasi. Further, it
holds 99% shares in V Pvt. Ltd. It has furnished the following particulars: Sales from
head office ₹ 25,00,000; sales from the branch office on own account of ₹ 10,00,000
and as agent of Z Ltd. ₹ 6,00,000; sales of V Pvt. Ltd. ₹ 30,00,000. Compute the
aggregate turnover.
a) 35,00,000
b) 71,00,000
c) 25,00,000
d) 41,00,000

7) Sukhbir is a service provider based out of Delhi. He has furnished the following
particulars: supply of services to customers in Kolkata (taxable at Nil rate) K
10,00,000; purchase of furniture and fixtures for office from a dealer in Chandigarh
(taxable) ₹ 3,00,000; purchase of goods (taxable under RCM) K 2,50,000; supply of
services to customers in Delhi (exempt) ₹ 7,90,000. Compute the aggregate
turnover
a) 20,90,000
b) 17,90,000
c) 20,40,000
d) 17,00,000

8) Salman is engaged in trading business. He has furnished the following particulars:

Trading in machine oil (purchase ₹ 15,00,000; sale ₹ 20,00,000); trading in high speed
diesel (purchase ₹ 25,00,000; sale ₹ 35,00,000); export of goods to Europe ₹
15,00,000. Compute the aggregate turnover.
a) 70,00,000
b) 20,00,000
c) 55,00,000
d) 35,00,000

9) Mr. H is a Senior Advocate practicing in the Supreme Court. He has provided the
following particulars: Legal advice pertaining to a personal matter of Mr. PL, a
retired army officer (fees charged ₹ 3 lakh); legal advice provided to Mr. RP, an
advocate (fees charged ₹ 50,000; turnover of Mr. RP for preceding FY is ₹ 10 lakh);
legal advice provided to BCD & Co, a partnership firm of advocates (fees charged K 1
lakh; turnover of the firm for preceding FY is ₹ 35 lakh); representation service
before the Supreme Court on behalf of the Central Government (fees charged K 5
lakh). Compute the value of taxable services provided by Mr. Harpreet if the GST
registration threshold is ₹ 20 lakh.
a) Nil
b) 1,00,000
c) 1,50,000
d) 4,50,000
10) PKN LLP is engaged in retail business with turnover running into crores since the
last several years. It has asked Mr. H, an Advocate, to represent its case under the
contract law in the Bombay High Court. Mr. H has, in turn, taken advise in relating to
this case, from KK & Co., a partnership firm of advocates. The firm has charged R
50,000 from Mr. H who has, in turn, charged ₹ 1,00,000 from PKN LLP. Determine
the amount of GST on these transactions assuming rate of 18%. Assume the
threshold limit of turnover for registration as ₹ 20 lakh
a) Nil
b) 18,000 payable by Mr. H under forward charge
c) 18,000 payable by PKN LLP under reverse charge
d) 9,000 payable by Mr. H under reverse charge

11) Virat has provided services as Kabaddi Team Coach to the Sports Authority of India
for participation in the Kabaddi championship organized by MKG Ltd., a multi brand
sports goods company, against which he has received remuneration of ₹ 1 lakh. He
has also played the role of selector for the National Games organised by the Indian
Olympic Association for which he has received remuneration of ₹ 2 lakh. What is the
taxable value of services provided by Virat ₹________.
a) Nil
b) 1 lakh
c) 2 lakh
d) 3 lakh

12) Lisa is registered under GST having turnover of ₹ 30 lakh in the preceding FY and ₹
35 lakh in the current FY. He has provided the following particulars: He operates a
souvenir shop within the complex of St. Peters Church, Bangalore (registered u/s
10(23C)(v) of the Income Tax Act), for which he pays rent of ₹ 10,000 per month. He
owns a building that he has let out to a charitable trust, registered u/s 12AA of the
Income Tax Act, for running its office on a monthly rent of ₹ 20,000. He has set up
his office in a premises let out by the State Government on a rent of ₹ 10,000 per
month. He owns the Dens Inn where he charges ₹ 800 per day per room for
boarding and lodging (total tariff charged ₹ 8,00,000). Determine the value of
supplies for the year on which Lisa is required to pay tax either under forward or
reverse charge.
a) Nil
b) 1,20,000
c) 3,60,000
d) 11,60,000

13) Dhanlakshmi Bank has provided the following particulars of its receipts: Interest on
consumer loans 50 lakh); loan processing charges 5 lakh); commission on extending
bank guarantee 20 lakh); interest on credit card dues 15 lakh); charges for non-
maintenance of minimum account balances 10 lakh); penal interest on overdue loan
repayments 15 lakh); repayment of principal amount of loans 200 lakh). Compute
the value of taxable supplies.
a) Nil
 b) 55 lakh
c) 50 lakh
d) 65 lakh

14) Mohit owns a goods tempo which he has given on rent of ₹ 20,000 to KK Pvt. Ltd., a
goods transport agency. KK Pvt. Ltd. has, in turn, used the tempo to provide service
of transport of furniture to the Road Transport Office of the State Government
which has taken GST registration only for deducting GST and not for making any
taxable supply. KK Pvt. Ltd. has charged ₹ 40,000 for this purpose. Compute the
amount of GST chargeable on these supplies by Mohit and KK Pvt. Ltd. Assume GST
rate of 12%.
a) Nil
b) Nil by Mohit; 4,800 by KK Pvt. Ltd.
c) 2,400 by Mohit; Nil by KK Pvt. Ltd.
d) 2,400 by Mohit; 4,800 by KK Pvt. Ltd.

15) Ricky resides in Bagdogra. He hired an auto rickshaw (₹ 200) to go to the Bagdogra
airport from where he boarded a flight to Mumbai in economy class (₹ 4,000). He
took a metered cab (₹ 300) from the Mumbai airport to go to the Metro Station
from where he boarded the metro (₹ 100). He got off the metro and took the air
conditioned local bus (₹ 150) to go to the railway station. He took the train to Goa
and travelled in non-airconditioned second class (₹ 500). He boarded a cruise ,liner
from Goa to Mumbai (₹ 3,000). Finally, he took a radio taxi (₹ 300) from the Mumbai
Port to the Airport and took a flight back to Bagdogra in business class (₹ 3,000).
Compute the value of taxable supplies made to Ricky.
a) Nil
b) 10,450
c) 6,450
d) 6,950

16) BCD & Co, a partnership firm, has availed the following services from the
Government: Book post service of Post Office (₹ 60,000); collection of electricity
bills by Post Office (commission charged 5,000); transport of goods to customers by
Railways (freight ₹ 20,000); warehouse hired from the local authority on a monthly
rent of ₹ 5,000; security services availed from local police (₹ 15,000). Determine the
value of taxable supplies made to the firm. Turnover of the firm for the preceding
FY is ₹ 10 lakh. Registration threshold of turnover is R 20 lakh.
a) Nil
b) 30,000
c) 35,000
d) 25,000

17) Shri Nanak Trust is registered u/s 10(23C)(v) of the Income Tax Act, 1961. It owns and
manages a Gurdwara in the city of Chandigarh. It has furnished the following
particulars: Donations received from devotees for performing a religious ceremony
(₹ 1,20,000); rights granted to BKC & Sons to collect parking fee in the parking area
of the Gurdwara (₹ 2,00,000); advertisement charges collected from manufacturers
 of spiritual products for displaying their banners in the premises 6,00,000); modern
kitchen equipment donated by Mr. G for preparing food for devotees in the
community kitchen with a request to keep his identity anonymous (value ₹
3,00,000); pilgrimage organized for the devotees to the Hemkund Sahib (2,50,000).
Compute the value of taxable supplies.
a) Nil
b) 13,50,000
c) 11,00,000
d) 10,50,000

18) Radhe Shyam Trust, registered u/s 12AA of the Income Tax Act, has provided the
following health related services during the month of July: care and counselling of
terminally ill patients (₹ 50,000); public awareness programs on preventive health
(₹ 30,000); yoga camp on how to remain fit and healthy through meditation (₹
1,20,000); ambulance services for accident victims (R 10,000); treatment of patients
in ayurvedic care centre by registered ayurveda practitioners (₹ 2,00,000);
donations received from ayurveda product companies against which the trust has
displayed the name of the companies along with their products at various events
organized by the trust (₹ 1,00,000). Determine the value of taxable supplies.
a) Nil
b) 1,00,000
c) 2,20,000
d) 2,50,000