11B. GST 3rd EDITION - QUESTION BANK SET A PDF

THANKS TO MY FAMILY &
STUDENTS FOR CONTINUOUS

SUPPORT & LOVE.
CA SURAJ AGRAWAL
Updated on – 20.04.2019 (3rd Edition)

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: suraj.agrawal@hotmail.com
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
SURAJ AGRAWAL TAX CLASS
LAXMINAGAR / 01147542530 / 9953006445
CONGRATULATIONS
CMA INTER RESULT AT SATC IN DEC 2018 EXAM ALONE
List A : Students cleared Both Group of CMA Inter & Now in CMA FINAL
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
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
List B : Students cleared 1st or 2nd Group & 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
32 KULDEEP RAWAT `04152004253 NOW IN CMA FINAL
33 MADHURI KUMARI `04171014151 NOW IN CMA FINAL
LAXMINAGAR / 01147542530 / 9953006445
CONGRATULATIONS
List B : Students cleared 1st or 2nd Group & 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
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 FINAL
67 VISHAL KESARWANI `04171014398 NOW IN CMA FINAL
68 YOGESH `04172018166 NOW IN CMA FINAL
LAXMINAGAR / 01147542530 / 9953006445
CONGRATULATIONS
List C : Students cleared First OR Second Group of CMA Inter

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
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

CONGRATULATIONS
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
CONGRATULATIONS
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

CONGRATULATIONS
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

CONGRATULATIONS
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
CONGRATULATIONS
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: suraj.agrawal@hotmail.com; 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
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.
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.
| SURAJ AGRAWAL TAX CLASS | LAXMI NAGAR | NEW DELHI | 011-47542530 | +91 99530 06445 |
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.
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.
Solution:
Computation of value of taxable supply and tax liability
Amount
Particulars (`
`)
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:
Amount
Particulars (`
` 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:-
` 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 ` 0.5
5,000 (CGST and SGST each) on account of membership of a club (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
CGST
Particulars Value (`
`) (`
`) 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.
Motor vehicle purchased for employees to be used for personal as well as
1 business purposes 1,50,000
2 Motor vehicle purchased for transportation of goods within the factory 2,00,000
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
3 manufacturer in the course of employment. 2,000
Rent-a-cab facility availed for employees to fulfill a statutory obligation in
this regard. The Government has notified such service under section
4 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.
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
Value of
Particulars 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 :
GST
Particulars paid (`
`)
(i) Trucks used for the transport of raw material 1,20,000
Foods and beverages for consumption of employees lot was received during the
(ii) month 40,000
Inputs are to be received in five lots, out of which third lot was received during the
(iii) month 80,000
(iv) Membership of a club availed for employees working in the factory 1,50,000
Capital goods (out of five items, invoice for one item was missing and GST paid on
(v) 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?
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

Commencement of the business of supplying
1 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.
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%.
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.
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 32,400
[Being an inter-State supply, IGST is payable on the same [1,80,000 × 18%]
in terms of section 5 of the IGST Act, 2017]
Less: ITC of CGST @ 9% paid on intra-State receipt of goods and services 9,000
[Cross utilisation of CGST towards IGST] [1,00,000 × 9%]
Less: ITC of SGST @ 9% paid on intra-State receipt of goods and services 9,000
[Cross utilisation of SGST towards IGST] [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.
Solution:
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?
Solution:
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.
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)
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.

Solution:
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

Solution:
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.
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.
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
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.
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.
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?
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
(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.
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. Amount
No. Particulars (`
`)
1 Running a boarding school 2,40,000
2 Fees from prospective employer for campus interview 1,70,000
Education services for obtaining the qualification recognised by law of foreign
3 country 3,10,000
Renting of furnished flats for temporary stay to different persons (Rent per day
4 is less than ` 1,000 per person) 1,20,000
Conducting Modular Employable Skill Course, approved by National Council
5 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 Nil
[Services provided by an educational institution to its students, faculty and staff
are exempt.]
2 Fees from prospective employer for campus interview 1,70,000
[Not exempt.]
3 Education services for obtaining the qualification recognised by law of foreign 3,10,000
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.]
4 Renting of furnished flats for temporary stay of different persons Nil
5 Conducting Modular Employable Skill Course [An institution providing Modular Nil
Employable Skill Course qualifies as educational institution. Services provided
by an educational institution to its students, faculty and staff are exempt.]
6 Conducting private tuitions [Not exempt.] 3,00,000
GST payable @ 18% 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:
Amount (`)
(excluding
Particulars 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.
Solution:
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
Solution:
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.
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%
Solution:
Computation of net GST liability of M/s Maheshwari Corporation Pvt. Ltd.
Particulars Value of CGST SGST IGST

Supply
Services provided by way of labour contracts for 1,30,000 11,700 11,700 -
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.]
Intra State sale of taxable goods 2,50,000 22,500 22,500
[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]
Goods purchased from unregistered dealer on 20th Nil Nil Nil
Dec, 2018
[All intra-State and inter-State procurements made by a
registered person from unregistered person have been
exempted from reverse charge liability.]
Less: ITC of GST paid on GTA services received (21,600)
[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]
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.
Solution:
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?
Solution:
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?
Solution:
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?
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.
Solution:
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.
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).

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. 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.
Particulars Amount (``)
(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.
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] 2,00,000 18,000 18,000
Goods purchased from unregistered dealer on Nil Nil Nil

20th Feb, 2019 [Note-2]
Receipt for services rendered by way of labour

contracts for repairing a single residential unit 50,000 4,500 4,500
otherwise than as a part of residential complex
[Note-3]
Professional fees paid to Ms. Udadhi located in 50,000 9,000

a non-taxable territory [Note-4]
Total GST liability for the month of Feb, 22,500 22,500 9,000
2019
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.

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?
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?
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?
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
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
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.
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.
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),
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?
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
th
registration on 27th September, 2018 and is granted registration on 5 October,2018?
Solution:
A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT [` 10 lakh in Special
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
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.
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?
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.
Solution:
Aggregate turnover includes the aggregate value of all:
(i) taxable supplies,
(ii) exempt supplies,
(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.
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:
Value in IGST
Particulars (`
`) CGST in (``) SGST in (``) 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 Revenue to
Centre ` 900 Tamil Nadu ` 900
Statement showing net tax liability of Mr. C and revenue to the Government
Value
Particulars 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
Value in CGST in SGST in IGST in
Particulars (`) (`) (`) (`) Remarks
Mr. H to Mr. S 30,000 2,700 2,700 Nil
st
Less: ITC (2,700) (450) (3,150) IGST credit 1 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.
Solution:
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.
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?
Solution:
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.
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.
Solution:
1. 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
Transportation of books on a consignment transported in
B a single goods carriage 1,30,000
Transportation of chairs for a single consignee in the goods
C 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.
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.
Solution:
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?
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.
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?
Solution:
(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?

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,
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.
CGST
Particulars (`) 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%.
Solution:
Receipts from Value in ` Remarks

Exempt as receipt is less than or equal to `
Classical dance Nil 1,50,000
Performing in television serial 2,80,000
Brand ambassador 12,00,000
Coaching in recreational activities in Nil
relation to arts
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.
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.
Solution:
Person
Service Nature of responsible to
provider Service recipient service Taxability pay GST
Business Entity
(whose turnover Recipient of service,
(i) & (ii) exceeds ` 20 Which is the business
Senior Lakhs in previous Representation Taxable supply entity, who is litigant,
Advocate year) Services of service 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. Value of intra-State supplies made to registered persons 10,00,000
2. Value of intra- State supplies made to unregistered persons 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
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
`)
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 25,000
chips
Fees charged for yoga camp conducted by a charitable trust registered 50,000
under section 12AA of the Income-tax Act, 1961
Amount charged by business correspondent for the services provided to 1,00,000
the rural branch of a bank with respect to Savings Bank Accounts
Amount charged by cord blood bank for preservation of stem cells 5,00,000
Amount charged for service provided by commentator to a recognized 6,00,000
sports body
Amount charged for service provided by way of right to admission to circus 12,000
where consideration for the same is ` 750 per person.
Solution:
Computation of value of taxable supply

Particulars (`
`)
Amount charged for loading, unloading, packing and warehousing of potato chips 25,000
[Note-1]
Fees charged for yoga camp conducted by a charitable trust registered under section Nil
12AA of the Income-tax Act, 1961 [Note-2]
Amount charged by business correspondent for the services provided to the rural Nil
branch of a bank with respect to Savings Bank Accounts [Note-3]
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 12,000
consideration for the same is ` 750 per person. [Note-6]
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.
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.
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.
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
st
with interest. M/s Salty & Spicy Limited paid the tax and interest on 31 July, 20XX. Calculate
Interest liability (Ignore Penalty).
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.
th
Due date of payment is 20 May, 20XX.
st st
Period for which interest is due = 21 May, 20XX to 31 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?
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
Particulars `)
Amount (`
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.
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,
(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.
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?
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 Occasionally undertakes transactions involving

supply of goods or services or both in a State or supply of goods or services or both, but has no
Union territory where he has no fixed place of fixed place of business or residence in India.
business.
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 Separate application form for registration by
taxable persons. nonresident taxable person.
Has to undertake transactions in the course or Business test is absent in the definition.
furtherance of business
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?
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.
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?
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?
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.
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.
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 85,500
invoice.
(iii) Secondary packing (in iron sheets) charges for safe transportation of 30,000
the machine on the request of buyer.
(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 80,000
encourage manufacture of the machine.
(vii) Pre-delivery inspection charges paid to an independent agency in 22,000
terms of the agreement for supply. The amount was paid by M/s.
Dhanuka Ltd.
(viii) Interest amount paid by M/s. Dhanuka Ltd. for delay in payment for the 12,000
machine.
Inward Supplies
(i) IGST paid on food items for consumption by employees working in the 8,000
factory.
(ii) SGST and CGST (` 15,000 each) paid on Electrical transformer used in 30,000
the manufacturing process.
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 supply1
[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 15th April, 2018. The invoice for the consignment was issued the next day,
th th
15 April, 2018. Neelu Traders collects the consignment from the godown of Chiku Traders on 25
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 26th April, 2018 and amount is credited in their
th
bank account on 27 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.
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 16th April,
1
2018*.
th
*Note: In the question, the date of issue of invoice to be read as 16 April, 2018. It can also be answered by
taking date of invoice as given in question, i.e. 15 April, 2018. In that case, the time of supply will be 15th
th
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
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 25th 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 20th 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.
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 1st April, 2018. The invoice for
st
supply of machinery also was issued on 1 April, 2018. The purchase price of the machinery was
` 25 lakh exclusive of CGST and SGST @ 12% (6% + 6%). On 1st December, 2018 exemption
available on the product "Shine & Shine" was withdrawn by the Central Government and CGST and
th
SGST @18% (9% + 9%) was imposed thereon. The turnover of Happy Ltd. on 30 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?
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:-
th
(i) Date of collection of GST was 18 February, 2018.
th
(ii) No other transaction after this up to 20 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.
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 17th 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.
th
Quanto Ltd. provides the following information of inputs and capital goods held in stock on 24
September, 2018. It is not engaged in making inter-State outward taxable supplies.
Particulars Amount (`)
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 7,500 7,500
goods held in stock
Inputs contained in finished goods held in stock which were Nil
procured on 19.09.2017 [Procured prior to one year, hence
ITC cannot be availed]
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.
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 & Logistics2.
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 2,000
outward supply
Capital goods purchased which are exclusively used for exempted 1,800
outward supply
Capital goods purchased which are used for both taxable and 4,200
exempted outward supply
Solution:
Computation of eligible ITC and ITC to be reversed

Particulars ` ITC (`)
Capital goods exclusively used for taxable outward supply [Since exclusively 2,000
used for taxable supply, full ITC is available under rule 43(1)(b) of the CGST
Rules, 2017] - [A]
Capital goods exclusively used for exempted outward supply [Since exclusively Nil
used for non-business purposes, ITC is not available under rule 43(1)(a) of the
CGST Rules, 2017]
Capital goods used for both taxable and exempted outward supply -Common 4,200
credit [B]
[Commonly used for taxable and exempt supplies - Rule 43(1 )(c) of the CGST
Rules, 2017]
Common credit for the tax period (month here) 70
= 4,200 / 60 [Rule 43(1)(e) of the CGST Rules, 2017]
Common credit attributable to exempt supplies in a month [C] (rounded off) 25.45
= (40,000/1,10,000) x `70 [Rule 43(1)(g) of the CGST Rules, 2017
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.
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
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
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

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THANKS TO MY FAMILY &

STUDENTS FOR CONTINUOUS

Updated on – 20.04.2019 (3rd Edition)

18 ANAND VALLABH OLI `04161004350 NOW IN CMA FINAL

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

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

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 CLASSES

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

SURAJ AGRAWAL TAX CLASSES

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

SURAJ AGRAWAL TAX CLASSES

…….& Many More

SURAJ AGRAWAL TAX CLASSES

Email: suraj.agrawal@hotmail.com; Mobile: 9953006445 (Only SMS/Whatsapp)

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

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

“One more step towards success”

GST QUESTION – SET A

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

b. Wellness Hospital, a clinical establishment located in Tirupati, is specialised in diabetic treatment.

Thus, offline mode is also permitted under GST.

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

Particulars Eligible ITC (`)

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

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

[ICAI CA INTER RTP NOV 2018]

S.No. Particulars Date

[ICAI CA INTER RTP NOV 2018]

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

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

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

[ICAI CA INTER RTP NOV 2018]

includes import of services for a consideration