5 6307432105815048770

THANKS TO MY FAMILY &
STUDENTS FOR CONTINUOUS

SUPPORT & LOVE.
CA SURAJ AGRAWAL
Updated on – 15.03.2021 (7th Edition)

CA INTERMEDIATE EXAM STUDENTS (MAY 2021 EXAM)
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.
7th edition of GST Question Bank incorporates the followings in various sets:
 CA Inter RTP Questions (FROM May 2018 to May 2021)
 Past Exam questions with answer as suggested by ICAI (FROM MAY 2018
to NOV 2019)
 Past ICAI Mock Test Paper
 Past ICAI GST Sample Question
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.
All the questions are updated as per current law applicable for exam.
This question Bank is based on GST Volume issued to CA INTER Students
Email: [email protected]; Mobile: 85272 30445
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 7th Edition for May 2021 Exam
Dated 15.03.2021 – 1st Print
“One more step towards success”

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 has 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 since 2010 to
serve professional students (taught 15,000 CA/CMAs Students till date). His in-depth
coverage of legal provisions in Tax with practical approach is very well recognized
among the students. He is also an associate member of ICAI and is also providing services as
Tax Consultant to various organisations.
He was also a member in WTO, FEMA & International Tax Study Group of the NIRC of the
ICAI for the year 2011-12 and was member of International Taxation & FEMA Research
Study Group of NIRC of the ICAI for the year 2010-11. He is regularly contributing tax articles
and various opinions on subjects of Direct Taxation including International Taxation in various
leading magazines [Taxmann] and professional forums.
CA Suraj Agrawal
“CA Rank Holder, Qualified CPA (USA), B.Com(H)”
Email: [email protected]
Contact: +91 85272 30445 / 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
CONGRATULATIONS
CA INTERMEDIATE/IPCC RESULT AT SATC
Students Successfully Completed Group 1 or Both Group (RESULT FROM MAY 2018)
S.NO NAME ROLL NUMBER MARKS IN TAX
1 KUNAL AGGARWAL (NOV 2019 EXAM) 623158 81
MEGHA KUMARI SINGHAL
2 (All India Rank - 13th) 341001 77
3 VAIBHAV SAINI 817284 70
4 OSIM AKHTAR 328098 70
5 JAI PRAKASH GUPTA 523034 70
6 RAGHAV MANGLA 651375 69
7 PUNEET 325987 67
8 ATUL VISHVAKARMA 522810 67
9 SUJIT KUMAR SHAH 508842 65
10 SURYANSH RASTOGI 804115 65
11 SAMIKSHA PANDEY 637869 65
12 RAJNISH PANDEY 345099 64
13 FATIMA 635666 64
14 SUNIL KUMAR 635526 64
15 VARUN MUNJAL 729537 64
16 MUSKAN MOURYA 336951 63
17 MUDASSIR 815904 63
18 NAVENDU SHARMA 815548 63
19 RITIKA 63
20 SHUBHAM GUPTA 343489 62
21 AKASH KUMAR 815849 62
22 DEVENDER 635594 62
23 ABHISHEK PANT 328056 62
24 KISHAN 520305 62
25 PRATEEK GUPTA 399180 62
26 MEENAKSHI JAIN 624144 62
27 RAJAN KUMAR PANDEY 624360 62
28 PRINCE TYAGI 344697 61
29 POOLKIT 815940 61
30 NIRAJ KR SINGH 636316 61
31 RAHUL SINGH 635669 61
32 KHUSHBOO BANSAL 620832 61
33 SALMAN AHMED 326069 60
34 NURUL HUDA 626749 59
35 PARAS KHURANA 813333 58
36 SANJAY KHADKA 520344 58
37 ROHIT KUMAR 621051 58
38 NIDHI UTREJA 352431 57
39 PRABIN GUPTA 344472 57
40 VIKASH KUMAR 336504 57
41 MUNNA KUMAR KAPOOR 343467 57
42 AJAY KUMAR 639946 57
43 FAISAL SAHID 639261 57
44 SONALI 623685 57
45 ANJAN KUMAR BHARTIA 344271 56
46 RADHIKA MODI 510990 56
VINEET KUMAR
47 (All India Rank 36) 337925 56
48 DEEPANSHU GUPTA 346496 56
49 RAJAT GOYAL 814758 55
50 SUPRIYA CHAUHAN 330769 55
51 SEJAL 624571 55
52 PRAMOD KUMAR 431053 54
53 DIKSHA AGRAWAL 635923 54
54 FAIZ 328101 54
55 ASHUTOSH DIXIT 344503 53
56 ABHISHEK AWASTHI 339998 53
57 LALIT MOHAN JOSHI 816589 53
58 AMBIKA GARG 816052 53
59 AGAMLEEN KAUR 509284 52
60 SIDDHARTH JOSHI 344311 52
61 NIRAJAN KUMAR SHAH 346548 52
62 VIVEK KUMAR 346220 51
63 LAV KUMAR PATHAK 345956 51
64 VANSHIKA JAIN 623880 50
65 KUNAL GARG 343966 49
66 PRAKHAR GARG 346213 49
67 RIYA BHALLA 424268 49
68 KAMLESH MEHRA 636192 49
69 ADITYA KR JHA 643454 49
70 KRITI AWASTHI 341017 48
71 DEEPAK TIWARI 346638 48
72 RAJNISH DUBEY 330946 47
73 AMIT 522505 47
74 AMAN BANSAL 501643 46
75 RAVI KUMAR 525661 46
76 NISHITA JALAN 623633 46
77 KAMAL PRAJAPATI 360459 44
78 MANISH JAIN 624395 44
79 JAI KUMAR 816631 43
80 ATUL YADAV 674136 43
THANKS TO ALL OF YOU
SURAJ AGRAWAL TAX CLASSES

8527230445, 01147542530
“Thanks to all of you for making us proud”
Congratulations to all of you
CMA FINAL DT & IDT RESULT – DEC 2019 EXAM
SATC – 01147542530 / 8527230445
(NO FACE TO FACE CLASS IN CMA FINAL)
S. No. Name IDT Marks DT Marks Status Remarks
1 Varun Khattar (BOTH) 66 40 now CMA A.I.R. - 30
2 Deepesh Hoiyani 80 - now CMA IDT Highest in 4 Paper
IDT 2nd Highest in 4
3 Satish Jangra 72 - now CMA Paper
4 Pranshu Singhal 72 - now CMA IDT Highest in 4 Paper
5 Poonam Khemka 68 - now CMA IDT Highest in 4 Paper
6 Garima 68 - now CMA IDT Highest in 4 Paper
7 Tushar Khattar (BOTH) 63 43 now CMA IDT Highest in all 8 Paper
8 Rahul Kumar Ojha 62 - Now in Group 3 -
9 Amita Negi 60 - Now in Group 3 IDT Highest in 4 Paper
10 Rohit Saini (BOTH) 60 58 now CMA IDT Highest in all 8 Paper
11 Pooja Negi - 59 now CMA DT Highest in 4 Paper
12 Brijesh Kumar 54 - Now in Group 3 -
13 Rinku Kumar Bind - 54 Now in Group 4 DT Highest in 4 Paper
14 Apoorv Jaiswal - 54 now CMA -
15 Vikas Kumar Jha 53 - now CMA -
16 Shivcharan Singh S. 53 - Now in Group 3 -
17 Prateek Kumar Masih 49 - Now in Group 3 -
18 Shivam Garg (BOTH) 49 52 now CMA -
19 Sachin Sharma (BOTH) 48 - now CMA -
20 Ashmeet 47 - Now in Group 3 -
NOTICE: ALL ABOVE STUDENTS ARE REGISTERED STUDENTS OF SATC IN REGULAR

CMA FINAL DT/IDT/BOTH PENDRIVE/VIDEO CLASS & NOT ONLY A YOUTUBE OR
TELEGRAM CHANNEL SUBSCRIBER OR MERELY REFERRED OUR BOOKS.
CONGRATULATIONS
CMA FINAL INDIRECT TAX/GST RESULT FROM SATC
S. NO. NAME OF STUDENTS REGISTRATION NUMBER MARKS IN IDT EXAM
1 PARAS JAIN (AIR 42) `04141009584 84 Jun-19
2 DEEPESH HOIYANI `01171005959 80 Dec-19
3 AMARDEEP `04151002203 79 Dec-18
4 SHREY GUPTA `04151004191 77 Dec-18
5 VASUDEVAN KALASHASTHY `04161004499 75 Jun-19
6 ASHISH SINGH `04142005774 74 Dec-18
7 SATISH JANGRA `04142010658 72 Dec-19
8 PRANSHU SINGHAL `01171007386 72 Dec-19
9 PANKAJ TRIVEDI 14092006037 68 Jun-19
10 POONAM KHEMKA `04161003969 68 Dec-19
11 GARIMA `14101014557 68 Dec-19
12 VARUN KHATTAR (AIR 30) `04141003976 66 Dec-19
13 RAVI GUPTA `04132003787 65 Dec-18
14 SHUBHAM GUPTA `04151001994 64 Dec-18
15 KETAN JAIN `04112022182 64 Dec-17
16 JAVED AKHTAR `04122012930 63 Dec-18
17 KAPIL SHARMA `04152003027 63 Jun-19
18 MD. SAIF `04142003895 63 Dec-17
19 TUSHAR KHATTAR `04131000398 63 Dec-19
20 RAHUL KUMAR OJHA `03122001946 62 Dec-19
21 MOHD. ADIL `04142010375 61 Jun-18
22 MANISHA BHATIA `04162001141 61 Jun-19
23 RAHUL YADAV `04151003566 60 Jun-19
24 SYED SHABAD ALAM `03151001485 60 Jun-19
25 AMITA NEGI `04142011566 60 Dec-19
S. NO. NAME OF STUDENTS REGISTRATION NUMBER MARKS IN IDT EXAM
26 ROHIT SAINI `04171006308 60 Dec-19
27 SHIVEK MADAAN `04152000047 59 Jun-19
28 ANKITA NAGPURKAR `04151008311 58 Jun-18
29 NIKHIL `04152006069 58 Jun-19
30 VISHAL CHAUHAN `04122005659 57 Dec-18
31 NAVEEN GOSWAMI `0414100550 56 Jun-19
32 ANURAG PANT `04132012214 56 Dec-17
33 NISHTHA AGRAWAL `04121009440 55 Jun-18
34 HIMANSHU TYAGI `04132000652 55 Jun-18
35 APOORV JAISWAL `04142003143 55 Jun-19
36 SHILPA AGGARWAL `04151003054 54 Jun-18
37 HIMANSHU JAIN `04142010175 54 Jun-18
38 BRIJESH KUMAR `04132003196 54 19-Dec
39 ANUP `04121013398 53 Dec-18
40 MD. SHAHNAWAZ HUSSAIN `04132009413 53 Dec-17
41 VIKAS KUMAR JHA `04152004183 53 Dec-19
42 SHIVCHARAN SINGH S. `12112040190 53 Dec-19
43 AMIT KR KASHYAP `04142005646 52 Dec-18
44 SUMIT `04131008313 49 Jun-19
45 PRATEEK KUMAR MASIH `04141010163 49 Dec-19
46 SHIVAM GARG `04162002400 49 Dec-19
47 SACHIN SHARMA `04141002900 48 Dec-19
48 ASHMEET - 47 Dec-19
49 AMIT YADAV `04121000259 44 Jun-19

LAXMINAGAR I 8527230445 , 01147542530
SURAJ AGRAWAL TAX CLASS
CONGRATULATIONS
CMA FINAL DT RESULT AT SATC
DT Marks IDT Marks
S. No. Name Status
at SATC at SATC
1 PARVEEN DUTT SHARMA (AIR 3) 67 - NOW CMA
2 MOHIT GARG (AIR 7) 51 - NOW CMA
3 ARUN SHEKHAR (AIR 22) 57 - NOW CMA
4 SACHIN ARORA (AIR 22) 42 - NOW CMA
5 ANURAG PANT (AIR 25) 61 56 NOW CMA
6 VARUN KHATTAR (AIR 30) 40 66 NOW CMA
7 SONU KUMAR (AIR 38) 51 - NOW CMA
8 PARAS JAIN (AIR 42) 40 84 NOW CMA
9 BHARAT BHUSAN (AIR 45) 54 - NOW CMA
10 RAHUL YADAV - 60 NOW CMA
11 DIVYA KHANDELWAL 74 - NOW CMA
12 RUCHI GOEL 72 - NOW CMA
13 SANJAY 66 - NOW CMA
14 JAVED AKHTAR 65 63 NOW CMA
15 HIMANSHU JAIN 65 54 NOW CMA
16 AVISH BAJAJ 65 - NOW CMA
17 BHARTI BHATIA 65 - NOW CMA
18 LAVI KUMBUJ 65 - NOW CMA
19 MOHD. ADIL 65 61 NOW CMA
20 SANDEEP KUMAR 65 - NOW CMA
21 SANDEEP MOHOR 65 - NOW CMA
22 SIMAN SARKAR 65 - NOW CMA
23 SUDHANSHU MITTAL 65 - NOW CMA
24 NITU 64 - NOW CMA
25 AQIB NAZAR 63 - NOW CMA
26 HIMANSHU SHARMA 62 - NOW CMA
27 LALIT SINGH JEENA 62 - NOW CMA
28 RAHUL GARG 61 - NOW CMA
29 SURAJ NATHANI 61 - NOW CMA
30 ANIL SHARMA 60 - NOW CMA
31 RICHA AGARAWAL 60 - NOW CMA
32 RITU BHATT 60 - NOW CMA
33 Pooja Negi 59 49 NOW CMA
34 ANITA SHARMA 59 - NOW CMA
35 DIVYA SAINI 59 - NOW CMA
36 SANKET GUPTA 59 - NOW CMA
37 Rohit Saini 58 60 NOW CMA
38 SHREY GUPTA 57 77 NOW CMA
39 ANJALI RANA 57 - NOW CMA
CONGRATULATIONS
40 AMARDEEP 57 79 NOW CMA
41 ANKITA NAGPURKAR 56 58 NOW CMA
42 MEGHA SHARMA 56 - NOW CMA
43 SHUBHAM GUPTA 56 - NOW CMA
44 SHWETA KUMARI 56 - NOW CMA
45 SUMEET KUMAR 56 - NOW CMA
46 KETAN JAIN 55 64 NOW CMA
47 EKTA BATRA 55 - NOW IN GROUP 4
48 GAURAV JINDAL 55 - NOW CMA
49 KAPIL DHINGRA 55 - NOW CMA
50 PRABHAKAR JOSHI 55 - NOW CMA
51 SHALINI KAMBOJ 55 - NOW CMA
52 SHEKAR KUMAR 55 - NOW CMA
53 SURBHI PATHANIA 55 - NOW CMA
54 Rinku Kumar Bind 54 - NOW IN GROUP 4
55 Apoorv Jaiswal 54 55 NOW CMA
56 GAYATRI VAISHYA 54 - NOW CMA
57 INDU SHARMA 54 - NOW CMA
58 PRANSHU SINGHAL 53 72 NOW CMA
59 AJAY KAUSHIK 53 - NOW CMA
60 MOHD. SHAHNAWAZ HUSSAIN 53 - NOW CMA
61 Shivam Garg 52 49 NOW CMA
62 ABHISHEK GUPTA 52 - NOW CMA
63 ABHISHEK KUMAR SINGH 52 - NOW CMA
64 ABHISHEK VERMA 51 - NOW CMA
65 UJJWAL JAIN 51 - NOW CMA
66 VARUN GERA 51 - NOW CMA
67 SYED SHABAD ALAM 50 60 NOW CMA
68 ANSHIKA TYAGI 50 - NOW CMA
69 JYOTI GUPTA 50 - NOW CMA
70 KAPIL 50 - NOW CMA
71 KHUSHBOO MISHRA 50 - NOW CMA
72 ROHAN KR SHARMA 50 - NOW CMA
73 SUBHASH BAJAJ 50 - NOW CMA
74 VISHAL CHAUHAN 49 57 NOW CMA
75 GARIMA 49 68 NOW CMA
76 AFROZ ALAM 49 - NOW CMA
77 MUKUL BANSAL 49 - NOW CMA
78 RAHUL KUMAR 49 - NOW IN GR-4
79 SHUBHAM GUPTA 48 64 NOW CMA
80 NISHTHA AGRAWAL 48 55 NOW CMA
CONGRATULATIONS
81 ABHISHEK YADAV 48 - NOW CMA
82 SADAN KUMAR 48 - NOW CMA
83 SHIVAM KESHARI 48 - NOW CMA
84 VIKAS KUMAR JHA 47 53 NOW CMA
85 POONAM KHEMKA 47 68 NOW CMA
86 SHIVAM KAUSHAL 47 - NOW CMA
87 MOHD. SAIF 46 63 NOW CMA
88 MANISHA BHATIA 46 61 NOW CMA
89 SAVITA 46 - NOW CMA
90 VASUDEVAN 45 75 NOW CMA
91 AMIT KUMAR KASHYAP 45 52 NOW CMA
92 AKANSHA TYAGI 45 - NOW CMA
93 ARCHANA SHAH 45 - NOW CMA
94 BABITA 45 - NOW CMA
95 LALIT SHARMA 45 - NOW CMA
96 SONAM VERMA 45 - NOW CMA
97 SUNIL 45 - NOW CMA
98 NIKHIL 44 58 NOW CMA
99 ANUBHAV 44 - NOW CMA
100 KUNJIT JAIN 44 - NOW CMA
101 VINOD ARORA 44 - NOW CMA
102 TUSHAR KHATTAR 43 63 NOW CMA
103 KAPIL SHARMA 43 63 NOW CMA
104 ANANT 43 - NOW CMA
105 CHINU ARORA 43 - NOW CMA
106 DEEPAK KR CHAUBEY 43 - NOW CMA
107 PUSKAR SINGH 43 - NOW CMA
108 V VARSHA 42 - NOW CMA
109 SANJEEV 41 - NOW CMA
110 HIMANSHU TYAGI 41 55 NOW CMA
111 SURAJ KANOJIA 41 - NOW CMA
112 AVINASH RAJBHAR 41 - NOW CMA
113 ROHAN KUMAR VAISHY 41 - NOW CMA
114 PANKAJ KR TRIVEDI 40 68 NOW CMA
115 SHILPA AGGARWAL 40 54 NOW CMA
116 SALONI GOEL 40 - NOW CMA
117 SHILPA SINGHAL 40 - NOW CMA
118 VIKAS AHLAWAT 40 - NOW CMA
YOUTUBE CHANNEL NAME - "CA SURAJ AGRAWAL - SATC"

CONGRATULATIONS
CMA INTER DT RESULT AT SATC
JUNE 2018 to DEC 2019 EXAM (LAST 4 EXAMs)
40+ Students have scored exemptions in DT Subjects (60+ marks)
S.NO NAME REG. NO DT MATKS
1 MOHAMMAD ZOHAIB `04181033459 77
2 VAISHALI CHAUHAN `04171009980 72
3 SONALI `04151008330 67
4 SIMRAN SINHA `04171006940 67
5 RIDHI SINGH `01452001869 67
6 DEEPAK KR PANDEY `04131001662 67
7 DEEPAK KUMAR PANDEY `04131001662 67
8 GURPREET SINGH `01142000864 65
9 AYUSH DHOUNDIYAL `04172018516 65
10 MOHD. SHAHBAZ `04161000406 65
11 VIDYA P - 65
12 VIKALP KUMAR `04161000373 65
13 MOHAMMAD MOMIN `04142002305 65
14 EKTA SINGH `04171006108 65
15 RISHABH GOYAL `04182641048 65
16 VARSHA `04141006563 65
17 NISHITHA JAIN `04181030186 65
18 ADARSH KUMAR UPADHYAY `04152003297 65
19 ROHIT KUMAR `04191050156 65
20 SIMPI GARG `04151004924 64
21 RAHUL `04151000891 64
22 SHIVAM SINGH `04171006774 64
23 BHARTI `04171014248 64
24 NEELABH SRIVASTAVA `04151002871 64
25 MD. ZAYAUL HAQUE `03151008179 64
26 MD. ZEYAUL HAQUE `03151008179 64
27 SUNNY `04191055669 64
28 MIHIR KUMAR `04172020200 63
29 DEEPANJALI `04181035932 62
30 NEHA RANA `0418131694 62
31 PUNEET TIWARI `04162005106 62
32 GAGAN CHAUHAN `04112021154 62
33 SURAJ BISHT `04181025181 62
34 RAM SHARMA `04151007483 62
35 SHEENA `03152003100 61
36 PRAPTI BANSAL `04151004685 61
37 MOHIT ARYA `04172018239 61
38 PUNIT KUMAR `14092007508 61
39 SHASHIKANT - 61
40 DEEPAK KATHAYAT `04152002482 61
41 KAVITA RAWAT `04171006492 60
42 PURUSHOTAM KUMAR `03152004176 60
43 MOHIT BATRA `04182040268 60
44 AMIT GUPTA `04152005292 59
45 KIRAN `041562006169 59
46 VISHAL KESARWANI `04171014398 59
47 ANKIT SHARMA `04152003376 59
48 HIMANSHU SINGH BASNAL `04181023904 59
49 NANCY JAIN `04171012943 59
50 SAMARJEET SINGH `04181027869 58
51 SHALENDER SEMWAL `04142005213 58
52 ABHISHEK PARASHAR `04171008310 58
53 ANURAG `04171013969 58
54 OMKAR SINGH `04112018993 57
55 ANURADHA MISHRA `03162004159 57
56 NEHA SHARMA `04162003239 57
57 PANKAJ `04162002704 57
58 DEEPAK KR KAMAT `04142006457 57
59 RAHUL NEGI `04142001226 57
60 AMANDEEP `04191056094 57
61 RAVINDRA KUMAR SHAKYA `04191048134 57
62 VISHAL AGRAWAL `04171010078 56
63 KARAN PANESHAR `04171013462 56
64 OMKAR SINGH `04151007144 56
65 RAHUL MAITHANI `04151000047 56
66 RAHUL MAITHANI `04151000047 56
67 NISHI RAWAT `04191050973 56
68 AVINASH KUMAR `04132003466 55
69 GARGI LATWAL `04171012717 55
70 LAVKUSH MAURYA `04191052370 55
71 KANCHAN JHA `04191057402 55
73 KARAN PANESHAR `04171013462 54
74 MANISH KR. MISHRA `04182039272 54
75 TAUSIF ANSARI `04152003211 53
76 KAVITA `04151000769 53
77 NEHA KASHYAP `04161002757 53
78 SAMPANN SALUJA `04181025328 53
79 SHIVAM BHADALA `04152005828 53
80 SUNAINA `04171008399 53
81 VARUN MOR `01172016485 52
82 VARUN MOR `01172016485 52
83 SHIVAM CHAUHAN `04181033342 52
84 DEEPANSHU SAINI `04182041338 52
85 ANANT TYAGI `04181023907 52
86 DEEPAK KUMAR RAWAT `04142006457 51
87 PRIYA RAHI `04162003080 51
88 BUNTI/VINAY `04171007024 51
89 AKASH BHARDWAJ `04181030641 51
90 SAURABH JAIN `04151006110 50
91 ANKIT PARASHAR `04152000664 50
92 AKSHAY VERMA `04152000529 51
93 VINAY SHARMA `04162000208 50
94 ISHIKA KHANDELWAL `04181033400 50
95 DHARMESH SHARMA `04152004215 50
96 MADHURI KUMARI `04162000460 50
97 RAMAN KUMAR `04182040490 50
98 SHUBHAM CHAUHAN `04182045127 50
99 KISHAN KASHYAP `04181023519 50
100 VIVEK GUPTA `04151005101 49
101 AMRITA VIDWAN `04161001976 49
102 VINAY PATHNEJA `04191052148 49
103 ANKIT SINGH `04131000362 48
104 GUNDEEP SINGH GILL `04161006711 48
105 VARSHA `04141006563 48
106 VIPUL KR. TIWARI `04162003793 48
107 LOKESH KUMAR `04161001512 48
108 KAJAL NEGI `04161002549 47
109 PANKAJ RAWAT `04162002704 45
110 PRIYA AGRAWAL `04152002867 45
111 ARVIND KR. MAURYA `04181023520 45
112 RAJIV KUMAR `04151008445 44
113 BHARTI `04171014248 42
114 MAYANK BATRA `04171010401 42
115 KRISHNA HARI `04152006557 41
116 SHIVANI RAWAT `04161000302 40
117 SHUBHAM `04182037106 40
118 SAMARTH SOOD `04172019235 40
119 KOMAL PAL `04151007518 40

CONGRATULATIONS
CMA INTER IDT RESULT AT SATC
JUNE 2018 to DEC 2019 EXAM (LAST 4 EXAMs)
85+ Students have scored exemptions in GST/IDT Subjects (60+ marks)
S.NO NAME REG. NO IDT MATKS
1 PREETI RAWAT `04171007477 79
2 ASHISH SHIYANI `04151005102 76
3 CHANDA `04161002144 75
4 RAJNESH GUPTA `04151004925 74
5 NEHA VASHISHT (AIR 43) `04191056393 74
6 GAURANG RAJPAL `04152005198 73
7 MAYANK BATRA `04171010401 73
8 ATUL JAYANT `04132002741 71
9 MD.SHAHBAZ IDDRISI `04161000406 71
10 AMIT SHARMA `04161001090 70
11 ROHAN HEERA `04152006198 70
12 PRADEEP SINGH KANDARI `04171006214 69
13 ABHINAV PANNU `04152006249 69
14 SOUVAGYA GERU `04162003079 69
15 DEEPANJALI `04181035932 69
16 GAURAV SINGH `04161002697 69
17 VARUN GIRI `04151000294 69
18 RAHUL `04142005518 69
19 YASHODA RAWAT `04181025326 69
20 MAHIMA THREJA `04171007005 68
21 HITESHEE SHARMA `04162000658 68
22 VIABHAV SRIVASTAVA `04152003904 68
23 RAHUL KR. SONI `04171006939 68
24 KARAN KHANDELWAL `04171008770 68
25 PRIYA AGRAWAL `04152002867 67
26 ANKUSH GUPTA `04162003134 67
27 SHUBHAM `04131000312 67
28 MINAKSHI SINGH `04181031103 67
29 SNEHA `04152003288 66
30 NEELABH SRIVASTAVA `04151002871 66
31 RAJESH SHAH `04171015785 66
32 SUMMI `04121013160 66
33 YATIN BISHT `04181023861 66
34 MOHIT UPADHYAY `04171011775 65
35 NANCY JAIN `04171012943 65
36 SANJOLI JAIN `04151004777 65
37 MOHIT UPADHYAY - 65
38 DHARMESH SHARMA `04152004215 65
39 MD. ZEYAUL HAQUE `03151008179 65
40 NANCY JAIN `04171012943 65
41 NIKHIL SOLANKI `04152004440 65
42 VAISHALI CHAUHAN `04171009980 65
43 RAHUL RANJAN SINGH `04162004494 65
44 RAHUL NEGI `04142001226 64
45 AVINASH KUMAR `04132003466 64
46 KARTIK BHATT `04162003301 64
47 HIMANI AGGARWAL `04171009548 64
48 SHIVAM SINGH `04171006774 64
49 SWADHA CHITRANSH `04162000395 64
50 KARAN PANESHAR `04171013462 64
51 ANAMIKA DIXIT `04171006352 64
52 AMRITA VIDWAN `04161001976 63
53 ANKIT SINGH `04131000362 63
54 PANKAJ RAWAT `04162002704 63
55 AMAN GUPTA `04171011461 63
56 ANURAG `04171013969 63
57 SALONI MITTAL `04171007814 63
58 ANKIT SINGH `04131000362 63
59 PANKAJ `04162002704 63
60 ABHISHEK PARASHAR `04171008310 63
61 DEEPIKA KIROULA - 63
62 NEHA SHARMA `04162003239 62
63 KULDEEP RAWAT `04152004253 62
64 ROHIT SATI `04141004707 62
65 SHOBHIT KR. YADAV `04162002512 62
66 DINESH SINGH `04152004116 62
67 SAURABH JAIN `04151006110 62
68 IRSHAD `04161002726 62
69 RAVINDRA KUMAR SHAKYA `04191048134 62
70 MOHD. IRASHAD `04161002726 62
71 VAISHALI `04181036455 62
72 FAHREEN NAAZ `04171015009 61
73 OMKAR SINGH `04112018993 61
74 NANDINI ANAND `04171015462 61
75 FARHEEN NAAZ `04171015009 61
76 KRATIKA KIRAR `01142009362 61
77 RAM SHARMA `04151007483 61
78 DIVYANSH VERMA `04172017078 61
79 NEHA SINGH `04151007353 61
80 KOMAL PAL `04151007518 61
81 VINAY SHARMA `04162000208 60
82 PARVEJ ALAM `04162000312 60
83 VIVEK UPADHYAY `04171006249 60
84 BHARTI `04171014248 60
85 ANAND VALLABH OLI `04161004350 60
86 DEEPAK KUMAR PANDEY `04131001662 60
87 LOKESH KUMAR `04161001512 60
88 NEHA SURATIYA `04142001231 59
89 VIKALP KUMAR `04161000373 59
90 PRINCE GOYAL `04152006085 59
91 TAUSIF ANSARI `04152003211 59
92 SHWETA RANI `04181035559 59
94 NISHA KUMARI `04142001150 58
95 KISHAN KASHYAP `04181023519 58
96 KAMINI `04161000149 57
97 ROHIT `04181024640 57
98 APOORV GHILDIYAL `04151004798 56
99 KRISHNA HARI `04152006557 56
100 MOHAMMAD MOMIN `04142002305 56
101 DEEPAK KR KAMAT `04142006457 55
102 SIMRAN SINHA `04171006940 54
103 VIVEK PRASAD `04171009533 54
104 MOHINI AGRAWAL `04152005687 53
105 SONALI `04151008330 53
106 SAMPANN SALUJA `04181025328 53
107 REETU `04181028730 53
108 MOHIT ARYA `04172018239 52
109 BUNTI/VINAY `04171007024 52
110 VIKRANT JHA `04162002126 52
111 KAVITA RAWAT `04171006492 52
112 VIPUL KR. TIWARI `04162003793 52
113 PUNEET TIWARI `04162005106 51
114 SAURAV KUMAR `04161001645 51
115 KAVITA `04151000769 51
116 VISHAL KESARWANI `04171014398 51
117 GARGI LATWAL `04171012717 51
118 VARUN MOR `01172016485 50
119 SHALENDER SEMWAL `04142005213 49
120 ROHIT `04181024640 49
121 PRIYA RAHI `04162003080 48
122 NEHA KASHYAP `04161002757 48
123 YOGESH `04172018166 48
124 UJWAL CHAND RAMOLA `04171007621 48
125 JAYED SAIFI `04171011777 47
126 GUNDEEP SINGH GILL `04161006711 46
127 RAHUL `04151000891 45
128 RAMAN KUMAR `04182040490 44
129 ANKIT KUMAR RAJPUT `04182039949 43
130 NISHTHA JAIN `04181030186 42
131 SHIVANGI BISHT `04171008407 41
132 ARVIND KR. MAURYA `04181023520 40
THANKS ALL FOR SUCH WONDERFUL PERFORMANCE

WHATSAPP/CALL - 8527230445
ADMISSION/INQUIRY - 8527230445
CA/CMA - NOV/DEC 2019 EXAM RESULT (ONE EXAM RESULT)
EXEMPTION HI EXEMPTION (FROM REGISTERED STUDENTS BATCH)
S.NO NAME REGISTRATION NO MARKS SUBJECT COURSE
1 KUNAL AGGARWAL 623158 81 TAX CA INTER
2 DEEPESH HOIYANI `01171005959 80 IDT CMA FINAL
3 YATIN BISHT `04181023861 76 OM & SM CMA INTER
4 NEHA VASHISHT (AIR 43) `04191056393 74 IDT CMA INTER
5 SATISH JANGRA `04142010658 72 IDT CMA FINAL
6 PRANSHU SINGAL `01171007386 72 IDT CMA FINAL
7 JAI PRAKASH GUPTA 523034 70 TAX CA INTER
8 RAHUL `04142005518 69 IDT CMA INTER
9 YASHODA RAWAT `04181025326 69 IDT CMA INTER
10 KISHAN KASHYAP `04181023519 69 OM & SM CMA INTER
11 RAMAN KUMAR `04182040490 68 OM & SM CMA INTER
12 REETU `04181028730 68 OM & SM CMA INTER
13 POONAM KHEMKA `04161003969 68 IDT CMA FINAL
14 GARIMA `14101014557 68 IDT CMA FINAL
15 MINAKSHI SINGH `04181031103 67 IDT CMA INTER
16 ATUL VISHVAKARMA 522810 67 TAX CA INTER
17 YATIN BISHT `04181023861 66 IDT CMA INTER
18 VARUN KHATTAR (AIR 30) `04141003976 66 IDT CMA FINAL
19 ADARSH KUMAR UPADHYAY `04152003297 65 DT CMA INTER
20 NISHITHA JAIN `04181030186 65 DT CMA INTER

21 ROHIT KUMAR `04191050156 65 DT CMA INTER
22 RAHUL RANJAN SINGH `04162004494 65 IDT CMA INTER
23 MINAKSHI SINGH `04181031103 65 OM & SM CMA INTER
24 NEHA VASHISHT `04191056393 65 OM & SM CMA INTER
25 ANAMIKA DIXIT `04171006352 65 OM & SM CMA INTER
26 SUNNY `04191055669 64 DT CMA INTER
27 ANAMIKA DIXIT `04171006352 64 IDT CMA INTER
28 TUSHAR KHATTAR `04131000398 63 IDT CMA FINAL
29 RITIKA 63 TAX CA INTER
30 RAVINDRA KUMAR SHAKYA `04191048134 62 IDT CMA INTER
31 VAISHALI `04181036455 62 IDT CMA INTER
32 MOHD. IRSHAD `04161002726 62 IDT CMA INTER
33 RAHUL KUMAR OJHA `03122001946 62 IDT CMA FINAL
34 RAJAN KUMAR PANDEY 624360 62 TAX CA INTER
35 MEENAKSHI JAIN 624144 62 TAX CA INTER
36 KISHAN SHARMA 626257 62 TAX CA INTER
37 DEEPAK KATHAYAT `04152002482 61 DT CMA INTER
38 KOMAL PAL `04151007518 61 IDT CMA INTER
39 LOKESH KUMAR `04161001512 61 OM & SM CMA INTER
40 KHUSHBOO BANSAL 620832 61 TAX CA INTER
41 MOHIT BATRA `04182040268 60 DT CMA INTER
42 LOKESH KUMAR `04161001512 60 IDT CMA INTER
43 AMITA NEGI `04142011566 60 IDT CMA FINAL
44 ROHIT SAINI `04171006308 60 IDT CMA FINAL

Inside
S. No. Particulars Page No. Total Questions
A GST - PRACTICE TEST PAPER - SET ‘A’ A.01 – A.08 18 Questions
B GST - PRACTICE TEST PAPER - SET ‘B’ B.01 – B.08 18 Questions
C GST - PRACTICE TEST PAPER - SET ‘C’ C.01 – C.08 10 Questions
D GST – PRACTICE TEST PAPER – SET ‘D’ D.01 – D.10 10 Questions
E GST - PRACTICE TEST PAPER - SET ‘E’ E.01 – E.08 9 Questions
F GST - PRACTICE TEST PAPER - SET ‘F’ F.01 – F.10 19 Questions
G GST - PRACTICE TEST PAPER - SET ‘G’ G.01 – G.12 19 Questions
H GST - PRACTICE TEST PAPER - SET ‘H’ H.01 – H.14 27 Questions
I GST - PRACTICE TEST PAPER – SET ‘I’ I.01 – I.12 26 Questions
J GST - PRACTICE TEST PAPER - SET ‘J’ J.01 – J.06 18 Questions
K GST - PRACTICE TEST PAPER - SET ‘K’ K.01 – K.06 15 Questions
L GST - PRACTICE TEST PAPER - SET ‘L’ L.01 – L.06 11 Questions
M GST - PRACTICE TEST PAPER - SET ‘M’ M.01 – M.04 12 Questions
N GST - PRACTICE TEST PAPER - SET ‘N’ N.01 – N.12 9 Questions
O GST - PRACTICE TEST PAPER - SET ‘O’ O.01 – O.20 29 Questions
P GST - PRACTICE TEST PAPER - SET ‘P’ P.01 – P.06 13 Questions
Q GST - PRACTICE TEST PAPER - SET ‘Q’ Q.01 – Q.04 3 Questions
R GST MCQ - SET ‘A’ 12 Pages 65 MCQs
TOTAL – 220 Subjective Questions + 100 MCQs

GST By CA Suraj Agrawal SATC A.1
GST - PRACTICE TEST PAPER - SET A
From 7th Edition GST Book
For Admission / Inquiry - Whatsapp at 8527230445 (11am to 6pm)
1. Mr. Mandeep, a registered dealer, is doing building material business in the State of Assam. He
availed architect services for his business from his friend in London free of cost. He also availed
designing services from his brother in London for ` 5 Lakhs for his personal purposes.
He availed services which are liable to tax under reverse charge for which date of invoice was
01.09.20XX, payment date as per his books of account and as per his bank account was 15.11.20XX
and 18.11.20XX respectively.
His turnover for the current financial year is as follows:

Taxable supply of goods – ` 55 Lakhs Exempt supply of goods – ` 16 Lakhs
Inward supply liable to tax under reverse charge – ` 8 Lakh
He intends to start providing services also from the next financial year and also to avail composition
scheme. He also wishes to make supplies to the Government.
Based on the information given above, choose the most appropriate answer for the following
questions:-
A. In respect of services imported by Mr. Mandeep, which of the following is a correct statement?
(i) Architect services for his business from his friend in London free of cost is considered as a
supply
(ii) Designing services from his brother in London for ` 5 Lakh for his personal purposes is
considered as a supply.
(iii) Architect services for his business from his friend in London free of cost is not considered
as a supply
(iv) Designing services from his brother in London for ` 5 Lakh for his personal purposes is not
considered as a supply.
(a) i & ii
(b) i & iv
(c) ii & iii
(d) iii & iv
B. The time of supply of services, received by him and taxable under reverse charge, is
(a) 01.09.20XX
(b) 01.11.20XX
(c) 15.11.20XX
(d) 18.11.20XX
C. Aggregate turnover of Mr. Mandeep for the given financial year will be,
(a) ` 63 Lakhs
(b) ` 79 Lakhs
(c) ` 71 Lakhs
(d) ` 47 Lakhs
D. Mr. Mandeep will be eligible for composition scheme in the next financial year, but he can
supply services only upto:
(a) ` 5.00 Lakhs
(b) ` 6.3 Lakhs
(c) ` 7.90 Lakhs
(d) ` 7.10 Lakhs
SURAJ AGRAWAL TAX CLASS | NEW DELHI | +91 85272 30445

2. In case he supplies services to State Government by way of any activity in relation to any function
entrusted to a Municipality under Article 243W of the Constitution, in the next financial year, which
of the following will be exempt?
(i) Pure Services
(ii) Composite supply of goods and services in which value of supply of goods constitutes not more
than 25% of value of said composite supply
(iii) Composite supply of goods and services in which value of supply of service constitutes not
more than 25% of value of said composite supply
(a) i & iii
(b) ii & iii
(c) i, ii & iii
(d) i & ii
3. ABC Ltd. is a registered pharmaceutical company. The company invented one drug for instant cure
of cancer. They supplied free samples of this medicine to various doctors. What will be the tax
treatment of these free samples under GST?
(a) ABC Ltd. is liable to pay tax on supply of free samples and eligible to claim input tax credit.
(b) ABC Ltd. is not liable to pay tax on supply of free samples but eligible to claim input tax credit.
(c) ABC Ltd. is neither liable to pay tax on supply of free samples nor eligible to claim input tax
credit.
(d) ABC Ltd. is liable to pay tax on supply of free samples but not eligible to claim input tax credit.
4. Kala Niketan School is an educational institution providing pre-school education and education up
to higher secondary school. Which of the following services are exempt if provided to Kala Niketan
School?
(i) Transportation of students, faculty and staff
(ii) Catering services
(iii) Cleaning services performed in such educational institution
(a) (i)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii)
5. Calculate the amount of eligible input tax credit-
S. No. Particulars GST paid (`)

1. A Mini bus having seating capacity of 15 persons (including driver) used for 15,00,000
running on hire
2. Car having seating capacity of 8 people used for business purposes 1,00,00,000
3. Car having seating capacity of 4 persons used for imparting training on 50,00,000
driving such car
4. Special purpose vehicle having seating capacity of 2 persons used for 60,00,000
transportation of goods
(a) ` 2,25,00,000/-
(b) ` 2,10,00,000/-
(c) ` 1,25,00,000/-
(d) `75,00,000/-
6. Mr. Avishkar is a painter registered under GST in Delhi. He sends his artwork for exhibition in
Mumbai. At what point of time, supply is considered to have been made under GST?
(a) When painting is completed.
(b) When painting is sent for exhibition in Mumbai.
(c) When painting is displayed at the exhibition in Mumbai.
(d) When painting is purchased by one of the visitors in the exhibition.

7. Which of the following is not covered under Schedule III of CGST Act, 2017?
(a) Director’s monthly salary under employment agreement
(b) Sitting fees to independent directors for attending AGMs
(c) Payment to employee for providing broking services to the employer for purchase of commercial
property. Such services do not form part of the employment contract entered into by the employer with
the employee.
(d) Both (b) and (c)
8. Which of the following service is not exempt under GST?

(a) Loading and unloading of paddy
(b) Loading and unloading of sugarcane
(c) Loading and unloading of tea bags
(d) Loading and unloading of potato
9. [REVERSE CHARGE] Mr. Vicky Frankyn, an unregistered famous author, received ` 3 crore of
consideration from Shiv Bhawan Publications (SBP) located in Indore for supply of services by way
of temporary transfer of a copyright covered under section 13(1)(a) of the Copyright Act, 1957
relating to original literary works of his new book. He finished his work & made available the book to
the publisher, but has yet not raised the invoice.
Mr. Vicky Frankyn is of the view that SBP is liable to pay tax under reverse charge on services
provided by him. SBP does not concur with his view and is not ready to deposit the tax under any
circumstances.
Examine whether the view of Mr. Vicky Frankyn is correct. Further, if the view of Mr. Vicky Frankyn is
correct, what is the recourse available with Mr. Vicky Frankyn to comply with the requirements of
GST law as SBP has completely refused to deposit the tax.
Solution:
Yes, the view of Mr. Vicky Frankyn is correct. GST is payable under reverse charge in case of supply of
services by an author by way of transfer/permitting the use or enjoyment of a copyright covered under
section 13(1)(a) of the Copyright Act, 1957 relating to original literary work to a publisher located in the
taxable territory in terms of reverse charge Notification No. 13/2017 CT(R) dated 28.06.2017. Therefore, in
the given case, person liable to pay tax is the publisher – SBP.
However, since SBP has completely refused to deposit the tax on the given transaction, Mr. Vicky Frankyn
has an option to pay tax under forward charge on the same. For the purpose, he needs to fulfill the
following conditions:
(i) since he is unregistered, he has to first take registration under the CGST Act, 2017
(ii) he needs to file a declaration, in the prescribed form, that he exercises the option to pay CGST on the
said service under forward charge in accordance with section 9(1) of the CGST Act and to comply with
all the provisions as they apply to a person liable for paying the tax in relation to the supply of any
goods and/or services and that he shall not withdraw the said option within a period of 1 year from the
date of exercising such option;
(iii) he has to make a declaration on the invoice, which he would issue to SBP, in prescribed form.
10. [CHARGE OF GST] - Chanchal started providing beauty and grooming services and inaugurated
“Care & Care Beauty Centre” in Janak Puri, Delhi on 01st April, 2020. She opted to pay composition
tax under section 10(2A) in the said financial year.
The aggregate turnover of Care & Care Beauty Centre for the quarter ending 30th June, 2020 was
` 20 lakh. Further, for the half year ending 30th September, 2020, the turnover reached ` 50 lakh.
Care & Care Beauty Centre recorded a rapid growth and the turnover reached ` 70 lakh by the end of
October, 2020.
Determine the total tax liability of Care & Care Beauty Centre by the end of October, 2020.

Solution:
Section 10(2A) provides an option to a registered person to pay maximum CGST @ 3% [Effective rate 6%
(CGST+ SGST/ UTGST)] on first supplies of goods and/or services upto an aggregate turnover of ` 50 lakh
made on/after 1st April in any financial year, subject to specified conditions.
It is clarified in the notification that first supplies of goods or services or both shall, for the purposes of
determining eligibility of a person to pay tax under this notification, include the supplies from 1st April of a
FY to the date from which he becomes liable for registration under the said Act, but for the purpose of
determination of tax payable under this notification, shall not include the supplies from the first day of April
of a financial year to the date from which he becomes liable for registration under the Act.
Thus, Care & Care Beauty Centre is eligible to pay tax under this notification upto the turnover of
` 50 lakh. The total tax payable by it is as under:-
Period Tax Rate Turnover Tax liability

(`) (`)
I Quarter Since turnover did not exceed ` 20 lakh, it was not 20 Lakh Nil
required to obtain registration. Hence, no tax was
required to be paid
II Quarter Effective rate is 6% (CGST+ SGST/ UTGST)] 30 Lakh 1,80,000
Under Section 10(2A). [(50-20)
lakh]
For the month of Normal rate of GST of 18% is to be applied 20 lakh 3,60,000
October, 20XX [(70-50)
Lakh]
Total tax payable 5,40,000
11. IMP: Care & Care Beauty Centre wishes to opt for composition scheme under Section 10(1) from the
next financial year. You are required to advise it whether it can do so?
Note: Rate of GST applicable on such services is 18%.
Solution:
No, Care & Care Beauty Centre cannot opt for composition scheme u/s 10(1) from the next financial year.
Fundamentally, the composition scheme can be availed in respect of goods and only one service namely,
restaurant service.
As regards services other than restaurant services are concerned, only marginal supply of the such
services for a specified value along with the supply of goods and/or restaurant service, as the case may be,
is permitted under section 10(1) of CGST Act, 2017.
Therefore, a person engaged exclusively in supply of services other than restaurant services is not
eligible to opt for composition scheme u/s 10(1).
However, w.e.f. 01/01/2020; he may opt for composition scheme under sub-section (2A) of section 10
if aggregate turnover doesn’t exceeds ` 50 Lakhs in preceding FY as he is not eligible for composition
levy under Sub-section (1) & (2) of Section 10 & exclusively engaged in providing services.
12. [SUPPLY] - The temple of ancestral deity of Mr. Aman goel and his family is located at Beri, Haryana.
The temple is run by a charitable organisation registered under section 12AA of the Income Tax Act,
1961. The family has got unshakeable faith in their ancestral deity. Mr. Aman is a big entrepreneur
having flourishing business of tiles in Gurugram. Upon the birth of their first child, he donated ` 10
lakh to the said temple for construction of a sitting hall in the temple. On the main door of the sitting
hall, a name plate was placed stating “Donated by Mr. Aman Goel upon birth of his first child”.
You are required to examine the leviability of GST on the donation received from Mr. Aman Goel?
Solution:
GST Circular has clarified that when the name of the donor is displayed in the religious institution premises,
by placing a name plate or similar such acknowledgement, which can be said to be an expression of
gratitude and public recognition of donor’s act of philanthropy and is not aimed at giving publicity to the
donor in such manner that it would be an advertising or promotion of his business, then it can be said that
there is no supply of service for a consideration (in the form of donation). There is no obligation (quid pro

quo) on part of recipient of the donation or gift to do anything (supply a service). Therefore, there is no GST
liability on such consideration.
In the given case, there is no reference or mention of any business activity of the donor which otherwise
would have got advertised. Thus, since the gift or donation is made to a charitable organization, the
payment has the character of gift or donation and the purpose is philanthropic (i.e., it leads to no
commercial gain) and not advertisement, hence GST is not leviable.
13. [EXEMPTION] Holiday Guest House, situated at Shimla, provides boarding & lodging services to
tourists at economical cost. The charges of a single deluxe room per day are ` 999. Mr. X has
booked one deluxe room for two days during Christmas holidays. You are required to determine
whether GST is payable by Holiday Guest House on the above booking. If yes, determine the
amount of GST so payable.
Will your answer change, if the charges of a single deluxe room per day charged by Holiday Guest
House are ` 1,000?
Solution:
Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging
purposes, having value of supply of a unit of accommodation below or equal to ` 1,000 per day or equivalent
have been exempted from GST vide an exemption notification.
Thus, in view of the above-mentioned provisions, GST is not payable by Holiday Guest House on the
booking done by Mr. X as the charges for a unit of accommodation per day is less than `1,000.
The answer will remain the same even if the charges of a single deluxe room per day is ` 1,000 as the
exemption is also available in the case where value of supply of a unit of accommodation per day is ` 1,000/
i.e., such services are taxable only where value of supply of a unit of accommodation per day exceeds `
1,000/-. Thus, no GST is payable by Holiday Guest House on the booking done by Mr. X even if the charges
of a single deluxe room per day is ` 1,000.
14. [EXEMPTION] M/s Damodar Ltd. provides services by way of storage of seasonal fruits and
vegetables in Bhatinda, Punjab. The monthly rental for a godown is ` 15,000. Examine whether GST
is payable by M/s Damodar Ltd.
Solution:
Services by way of storage/ warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra,
sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco,
betel leaves, tendu leaves, coffee and tea have been exempted from GST under an exemption notification
under GST.
Thus, no GST is payable on the services provided by M/s Damodar Ltd. by way of storage of seasonal fruits
and vegetables in Bhatinda, Punjab.
15. [REGISTRATION] M/s Siya Ram is a trader of decorative items in Hauz Khas, Delhi. His aggregate
turnover exceeded ` 20 lakh in the month of October, 20XX. He applied for registration on GST
portal, but missed to submit the details of his bank account. His tax consultant advised him that
prior submission of bank details is mandatory to obtain registration. Examine whether the advice of
Mr. Siya Ram’s tax consultant is correct.
Solution:
The advice of Mr. Siya Ram’s consultant that prior submission of bank details is mandatory to obtain
registration is no more valid in law.
Rule 10A has been inserted in the CGST Rules, 2017 which allows the registered person to furnish
information with respect to details of bank account, or any other information, as may be required on the
common portal in order to comply with any other provision, soon after obtaining certificate of registration
and a GSTIN, but not later than 45 days from the date of grant of registration or the date on which the return
required under section 39 is due to be furnished, whichever is earlier.
This relaxation is however not available for those who have been granted registration as TDS deductor/ TCS
collector under rule 12 or who have obtained suo-motu registration under rule 16.

16. IMPORTANT [RETURN] - Mr. Gauri Shiva, a registered person in Punjab, supplies goods taxable @
12% [CGST @ 6%, SGST @ 6% & IGST @ 12%] in the States of Punjab and Haryana. He has
furnished the following details in relation to independent supplies made by him in the quarter
ending June, 20XX:-
Supply Recipient Nature Value (`)

of supply
1 Mr. A, a registered person Inter-State 2,20,000
2 Mr. B, a registered person Inter-State 2,55,000
3 Mr. C, an unregistered person Intra -State 1,80,000
4 Mr. D, an unregistered person Intra-State 2,60,000
5 Mr. M, an unregistered person Inter-State 3,00,000
6 Mr. N, an unregistered person Inter-State 50,000
7 Mr. O, an unregistered person Inter-State 2,50,000
8 Mr. P, an unregistered person Inter-State 2,80,000
9 Mr. Q, a registered person Intra-State 1,50,000
10 Mr. R, a registered person Intra-State 4,10,000
The aggregate annual turnover of Mr. Gauri Shiva in the preceding financial year was ` 1.20
crore. With reference to rule 59 of the CGST Rules, 2017, discuss the manner in which the details of
above supplies are required to be furnished in GSTR-1.
Solution:
Rule 59 of the CGST Rules, 2017, inter alia, stipulates that the details of outward supplies of goods
and/or services furnished in form GSTR-1 shall include the–
(a) invoice wise details of all –
(i) inter-State and intra-State supplies made to the registered persons; and
(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to the
unregistered persons;
(b) consolidated details of all –
(i) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State wise inter-State supplies with invoice value upto two and a half lakh rupees made to
unregistered persons for each rate of tax;
Thus, in view of the above-mentioned provisions, Mr. Gauri Shiva should furnish the details of outward
supplies of goods made by him during the quarter ending June 20XX in the following manner:-
Supply Recipient Nature Value (`) Manner of

of supply furnishing details
1 Mr. A, a registered person Inter-State 2,20,000 Invoice-wise details
2 Mr. B, a registered person Inter-State 2,55,000 Invoice-wise details
3 Mr. C, an unregistered person Intra-State 1,80,000 Consolidated details of
4 Mr. D, an unregistered person Intra-State 2,60,000 supplies 3 and 4
5 Mr. M, an unregistered person Inter-State 3,00,000 Invoice-wise details
6 Mr. N, an unregistered person Inter-State 50,000 Consolidated details of
7 Mr. O, an unregistered person Inter-State 2,50,000 supplies 6 and 7
8 Mr. P, an unregistered person Inter-State 2,80,000 Invoice-wise details
9 Mr. Q, a registered person Intra-State 1,50,000 Invoice-wise details
10 Mr. R, a registered person Intra-State 4,10,000 Invoice-wise details

17. [E-WAY BILL] - Discuss the correctness of the following statements:-
(i) Once generated, an e-way bill cannot be cancelled.
(ii) E-way bill generated in one State is valid in another State.
Solution:
(i) The said statement is partially correct. Where an e-way bill has been generated, but goods are
either not transported at all or are not transported as per the details furnished in the e-way bill, the e-
way bill may be cancelled electronically on the common portal within 24 hours of generation of the e-
way bill.
However, an e-way bill cannot be cancelled if it has been verified in transit in accordance with the
provisions of rule 138B of the CGST Rules, 2017.
(ii) The said statement is correct. The e-way bill generated under Goods and Services Tax Rules of any
State or Union territory shall be valid in every State and Union territory.
18. [PAYMENT OF TAX] - Mr. Ram Narayan, a registered supplier under GST, wants to first discharge
his self- assessed tax liability for the current period before settling the dues for the previous tax
period. Examine briefly whether he can do so?
Solution:
As per Section 49(8) of the CGST Act, 2017, the liability of a taxable person has to be discharged in a
chronological order as under:-
(a) self -assessed tax and other dues for the previous tax periods have to be discharged first;
(b) the self -assessed tax and other dues for the current period have to be discharged next;
(c) Once these two steps are exhausted, thereafter any other amount payable inclu ding demand
determined under section 73 or section 74 of the CGST Act, 2017 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.
Thus, in view of the above-mentioned provisions, Mr. Ram Narayan cannot discharge his self-assessed tax
liability for the current period before settling the dues for the previous tax period.

Class Notes

GST By CA Suraj Agrawal SATC B.1
GST - PRACTICE TEST PAPER - SET B
1. Miss. Raksha is engaged in providing private coaching services in Noida, Uttar Pradesh and is not
registered under GST till 25-Sep-2020. Her aggregate turnover is ` 19,00,000/- on 30-Sep-2020. She got
GST registration on 30-Sep-2020. Which of the following options are available to her?
(a) She can pay tax @ 18%, charge it from customer and avail full input tax credit on procurements made.
(b) She can pay tax @ 6% under composition scheme under Section 10(2A) for service providers but she
cannot charge GST from customer and also cannot avail input tax credit.
(c) She is not liable for registration since her aggregate turnover is less than ` 40,00,000/-
(d) Either (a) or (b)
2. Mr. Arun, a registered supplier, is engaged in selling sweets. The sweets are sold in boxes and the
cost of each sweet box is ` 500/-. In order to increase his turnover, he purchased certain juice cans @
` 20/- each and added juice can with every sweet box as a gift. A sweet box along with free juice can is
sold at ` 500/- each.
Which of the statements is correct?
(a) He is liable to pay tax on ` 520/- and eligible to claim input tax credit on purchase of juice cans
(b) He is liable to pay tax on ` 500/- and not eligibletoclaiminputtaxcrediton purchase of juice cans
(c) He is liable to pay tax on ` 500/- and also eligible to claim input tax credit on purchase of juice
cans
(d) Either (a) or (b)
3. Which is not considered as supply under GST Law?

(a) Stock transferred from one establishment in Delhi to another establishment in Gurgaon, Haryana
registered under same PAN.
(b) CA Ram supplies accounting services to CA Radha in lieu of taxation services received from CA
Radha.
(c) A Health club supplies lunch to its members at its annual meeting against a nominal charge.
(d) Mr. A sells a flat to Mr. B
(i) Date of completion certificate - 31/01/20XX
(ii) Date of agreement with buyer - 01/02/20XX
(iii) Consideration received - 05/02/20XX
4. With reference to the provisions relating to transaction value under Section 15 of the CGST Act, 2017,
which of the following is not correct?
(a) Central excise duty will not be included in transaction value for supply of tobacco.
(b) Municipal taxes paid by tenant will be included in transaction value for supply of renting service.
(c) Entertainment tax included in movie ticket will form part of transaction value.
(d) Customer makes payment of freight which is payable by the supplier, directly to the service provider.
However, supplier does not include this amount in the invoice. Such amount will be included in transaction
value of the supplier.

5. Which of the following services are notified under section 9(3) of CGST Act, 2017or section 5(3) of
IGST Act, 2017 the tax on which shall be paid on reverse charge basis by the recipient of such supply:
(i) Supply of security services provided by a person other than a body corporate to a composition
taxpayer
(ii) Services supplied by an insurance agent to insurance company located in taxable territory
(iii) Supply of services by way of renting of hotel accommodation through e-commerce operator.
(iv) Supply of notified categories of goods or services or both by a supplier, who is not registered, to
specified class of registered persons.
Choose from the following options:

(a) (i)& (ii)
(b) Only (ii)
(c) (i), (ii), (iii)
(d) (i) & (iv)
6. M/s. Comfortable (P) Ltd. is registered under GST in the State of Odisha. It is engaged in the business
of manufacturing of iron and steel products. It has received IT engineering services from M/s. High-Fi
Infotech (P) Ltd. for ` 11,00,000/- (excluding GST@ 18%) on 28-Oct-20XX. Invoice for service rendered
was issued on 5-Nov-XX. M/s Comfortable (P) Ltd. made part-payment of ` 4,20,000/- on 30-Nov-XX.
Being unhappy with service provided by M/s High-fi Infotech (P) Ltd., it did not make the balance
payment. Deficiency in service rendered was made good by M/s High-Fi Infotech (P) Ltd. by 15-Feb-
XY. M/s. Comfortable (P) Ltd. made payment of ` 3,00,000/- on 15-Feb-XY and balance payment was
made on 6-June-20XY, i.e. after 180 days of issue of invoice.
Input tax credit available in respect of IT engineering services received from M/s. High-Fi Infotech (P)
Ltd. in financial year 20XX-XY:
(a) ` 1,98,000/-
(b) Nil
(c) ` 64,068/-
(d) ` 1,09,831/-
7. Mr. Dev Anand is engaged in providing services of facilitating sale and purchase of securities to
various clients. He is also engaged in trading of securities. His turnover details are as follows:
Trading of securities ` 40,00,000/-, Brokerage on account of facilitating transactions in securities

` 30,00,000/- You are required to ascertain aggregate turnover of Mr. Dev Anand under GST:
(a) ` 30,00,000/-
(b) ` 40,00,000/-
(c) ` 70,00,000/-
(d) ` NIL.
8. Mr. Pappu Singh, commenced his business in Feb-20XX. He has established following units:
1. Unit A (in SEZ) and Unit B (non-SEZ) in the State of Maharashtra
2. Unit C in Delhi
3. Unit D and E in the State of Goa
Mr. Pappu Singh has approached you to help him in determining the States and number of
registrations he is required to take under GST (presuming the fact that he is making taxable supply
from each State and his aggregate turnover exceeds the threshold limit):
(a) Maharashtra-2: Delhi-1, Goa–Optional 1 or 2
(b) Maharashtra-Optional 1 or 2: Delhi-1, Goa-Optional 1 or 2
(c) Maharashtra-1: Delhi-1, Goa-1
(d) Maharashtra-2: Delhi-1, Goa-2

9. 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
(d) None of the above
10. 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)
11. IMPORTANT (6 Marks): REGISTRATION CHAPTER Examine whether the supplier is liable to get
registered in the following independent cases:-
(i) Raghav of Assam is exclusively engaged in intra-State taxable supply of readymade garments. His
turnover in the current financial year (FY) from Assam showroom is
(ii) ` 28 lakh. He has another showroom in Tripura with a turnover of ` 11 lakh in the current FY.
(iii) Pulkit of Panjim, Goa is exclusively engaged in intra-State taxable supply of shoes. His aggregate
turnover in the current financial year is ` 22 lakh.
(iv) Harshit of Himachal Pradesh is exclusively engaged in intra-State supply of pan masala. His
aggregate turnover in the current financial year is ` 24 lakh.
(v) Ankit of Assam is exclusively engaged in intra-State supply of taxable services. His aggregate
turnover in the current financial year is ` 25 lakh.
(vi) Sanchit of Assam is engaged in intra-State supply of both taxable goods and services. His
aggregate turnover in the current financial year is ` 30 lakh.
Solution:
As per Section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a
supplier is liable to be registered in the State/Union territory from where he makes a taxable supply of goods
and/or services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for
a person making exclusive intra - State taxable supplies of goods is as under:-
(a) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and
Uttarakhand.
(c) ` 40 lakh for rest of India. However, the higher threshold limit of ` 40 lakh is not available to persons
engaged in making supplies of ice cream and other edible ice, whether or not containing cocoa,
Pan masala and Tobacco and manufactured tobacco substitutes.
The threshold limit for a person making exclusive taxable supply of services or supply of both goods
and services is as under:-
(b) ` 20 lakh for the rest of India.
In the light of the afore-mentioned provisions, the answer to the independent cases is as under:-
(i) Raghav is eligible for higher threshold limit of turnover for registration, i.e. ` 40 lakh as he is exclusively
engaged in intra-State supply of goods. However, since Raghav is engaged in supplying readymade
garments from a Special Category State i.e. Tripura, the threshold limit gets reduced to ` 10 lakh. Thus,
Raghav is liable to get registered under GST as his turnover exceeds ` 10 lakh. Further, he is required to
obtain registration in both Assam and Tripura as he is making taxable supplies from both the States.

(ii) The applicable threshold limit for registration for Pulkit in the given case is ` 40 lakh as he is exclusively
engaged in intra-State taxable supply of goods. Thus, he is not liable to get registered under GST as his
turnover is less than the threshold limit.
(iii) Harshit being exclusively engaged in supply of pan masala is not eligible for higher threshold limit of ` 40
lakh. The applicable threshold limit for registration in this case is ` 20 lakh. Thus, Harshit is liable to get
registered under GST.
(iv) Though Ankit is dealing in Assam, he is not entitled for higher threshold limit for registration as the same
is applicable only in case of exclusive supply of goods while he is exclusively engaged in providing
services. Thus, the applicable threshold limit for registration in this case is ` 20 lakh and hence, Ankit is
liable to get registered under GST.
(v) Since Sanchit is engaged in supply of both taxable goods and services, the applicable threshold limit for
registration in his case is ` 20 lakh. Thus, Sanchit is liable to get registered under GST as his turnover is
more than the threshold limit.
12. Mr. Ajay has a registered repair centre where electronic goods are repaired/serviced. His repair centre
is located in State of Rajasthan and he is not engaged in making any inter-State supply of services.
His aggregate turnover in the preceding financial year (FY 18-19) is ` 45 lakh.
With reference to the provisions of the CGST Act, 2017, examine whether Mr. Ajay can opt for the
composition scheme in the current financial year from 01.04.2019 (FY 19-20)?
Is he eligible to avail benefit of concessional payment of tax under Notification No. 2/2019 CT (R)
dated 07.03.2019? Considering the option of payment of tax available to Mr. Ajay, compute the amount
of tax payable by him assuming that his aggregate turnover in the current financial year is ` 35 lakh.
Will your answer be different if Mr. Ajay procures few items required for providing repair services
from neighbouring State of Madhya Pradesh?
Solution:
Section 10 of the CGST Act, 2017 provides that a registered person, whose aggregate turnover in the
preceding financial year did not exceed ` 1.5 crore (` 75 lakh in Special Category States except Assam,
Himachal Pradesh and Jammu and Kashmir), may opt to pay, in lieu of the tax payable by him, an amount
calculated at the specified rates. However, if, inter alia, such registered person is engaged in the supply
of services other than restaurant services, he shall not be eligible to opt for composition levy.
In the given case, since Mr. Ajay is a supplier of repair services, he is not eligible for composition scheme
even though his aggregate turnover in the preceding FY does not exceed ` 1.5 crore. Therefore, he has to
discharge his tax liability under regular provisions at the applicable rates.
However, with effect from 01.04.2019, Notification No. 2/2019 CT (R) dated 07.03.2019 has provided an
option to a registered person whose aggregate turnover in the preceding financial year is upto ` 50 lakh and
who is not eligible to pay tax under composition scheme, to pay tax @ 3% [Effective rate 6% (CGST+
SGST/UTGST)] on first supplies of goods and/or services upto an aggregate turnover of ` 50 lakh made
on/after 1st April in any FY, subject to specified conditions.
Thus, in view of the above-mentioned provisions, Mr. Ajay is eligible to avail the benefit of concessional
payment of tax under Notification No. 2/2019CT (R) dated 07.03.2019 as his aggregate turnover in the
preceding FY does not exceed ` 50 lakh and he is not eligible to opt for the composition scheme.
Thus, the amount of tax payable by him under Notification No. 2/2019 CT (R) dated 07.03.2019 is ` 2,10,000
[6% of ` 35 lakh].
A registered person cannot opt for Notification No. 2/2019 CT(R) dated 07.03.2019, if inter alia, he is engaged
in making any inter-State outward supplies. However, there is no restriction on inter-State procurement
of goods. Hence, answer will remain the same even if Mr. Ajay procures few items from neighbouring
State of Madhya Pradesh.

13. IMPORTANT (4 Marks): ITC CHAPTER Advice regarding availability of input tax credit (ITC) under the
CGST Act, 2017 in the following independent cases:-
(i) AMT Co. Ltd. purchased a mini bus having seating capacity of 16 persons for transportation of its
employees from their residence to office and back.
(ii) Bangur Ceramics Ltd., a manufacturing company purchased two trucks for transportation of its
finished goods from the factory to dealers located in various locations within the country.
(iii) “Hans premium” dealing in luxury cars in Chankyapuri, Delhi purchased five Skoda VRS cars for
sale to customers.
(iv) Sun & Moon Packers Pvt. Ltd. availed outdoor catering service to run a canteen in its factory. The
Factories Act, 1948 requires the company to set up a canteen in its factory.
Solution:
(i) Section 17(5) of the CGST Act, 2017, inter alia, blocks input tax credit in respect of motor vehicles for
transportation of persons having approved seating capacity of not more than 13 persons (including the
driver), except when they are used for certain specified purposes.
Since in the given case, the mini bus has a seating capacity of 16 persons, the ITC thereon will not be
blocked.
(ii) Section 17(5) of the CGST Act, 2017, inter alia, blocks input tax credit in respect of motor vehicles for
transportation of persons with certain exceptions. Thus, ITC on motor vehicles for transportation of goods
is allowed unconditionally.
Therefore, ITC on trucks purchased by Bangur Ceramics Ltd for transportation of its finished goods from
the factory to dealers located in various locations within the country is allowed.
(iii) Section 17(5) of the CGST Act, 2017, inter alia, blocks input tax credit in respect of motor vehicles for
transportation of persons having approved seating capacity of not more than 13 persons (including the
driver), except when they are used for making further supply of such motor vehicles.
Being a dealer of cars, “Hans Premium” has purchased the cars for further supply. Therefore, ITC on such
cars is allowed even though seating capacity is less than 13.
(iv) Section 17(5) of the CGST Act, 2017 inter alia, blocks input tax credit in respect of outdoor catering
services. However, ITC is available on such services, when the same are provided by an employer to its
employees under a statutory obligation.
Thus, in view of the above- mentioned provisions, Sun & Moon packers Pvt. Ltd. can avail ITC in respect
of outdoor catering services availed by it as the same is being provided under a statutory obligation.
14. VALUE OF SUPPLY M/s. Flow Pro sold a machine to BP Ltd. It provides the following particulars in
this regard:-
S. Particulars `
No.
(i) Price of the machine (excluding taxes and incidental charges) 30,000
(ii) Machine was subject to third party inspection. The inspection charges 5,000
have been directly paid by BP Ltd. to the inspection agency.
(ii) Freight charges for delivery of the machine (M/s Flow Pro has agreed 2,000
to deliver the goods at BP Ltd’s premises)
(iv) Subsidy received from State Government on sale of machine under skill 5,000
Development Programme. [The subsidy is directly linked to the
price].
(v) Discount given on price of the machine (recorded in the invoice) 2%
Note: Items given in S. No. (ii) to (v) have not been considered in the price at S. No. (i).
Determine the value of taxable supply made by M/s Flow Pro to BP Ltd.

Solution:
Computation of value of taxable supply
Particulars `
Price of the machine (Price ` 30,000 - ` 5,000 subsidy) [Note-1] 25,000
Third party inspection charges [Note-2] 5,000
Freight charges for delivery of the machine value [Note-3] 2,000
Total 32,000
Less: Discount @ 2% on ` 30,000 being price charged to BP Ltd. [Note-4] 600
Value of taxable supply 31,400
Notes:-
1. Since subsidy is received from State Government, the same is deductible to arrive at taxable value under
section 15 of the CGST Act, 2017.
2. Any amount that the supplier is liable to pay in relation to such supply but has been incurred by the
recipient, is includible in the value of supply under section 15 of the CGST Act, 2017.
3. Since arranging freight is the liability of supplier, it is a case of composite supply and thus, freight charges
are added in the value of principal supply.
4. Discount given before or at the time of supply if duly recorded in the invoice is deductible from the value of
supply under section 15 of the CGST Act, 2017.
15. EXEMPTION CHAPTER State with reasons, whether GST is payable in the following independent
cases:-
(i) Services provided to recognized sports body as curator of national team.
(ii) Services provided by way of transportation of passenger in Metered Cab.
(iii) Services by way of public conveniences such as provision of facilities of washrooms.
(iv) Services provided by a player to a franchisee which is not a recognized sports body.
Solution:
(i) Services provided to a recognized sports body 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 vide Notification No. 12/2017CT(R) dated 28.06.2017. Thus, GST is payable in case of services
provided to a recognized sports body as curator of national team.
(ii) Service of transportation of passengers, with or without accompanied belongings, inter alia, by metered
cabs are specifically exempt from GST vide Notification No. 12/2017 CT(R) dated 28.06.2017. Thus, GST
is not payable in this case.
(iii) Services by way of public conveniences such as provision of facilities of bathroom, washrooms,
lavatories, urinal or toilets are not liable to GST as it is specifically exempt as per Notification No. 12/2017
CT(R) dated 28.06.2017. Thus, GST is not payable in this case.
(iv) Services provided by a player to a franchisee which is not a recognized sports body is taxable as it is not
exempt under Notification No.12/2017 CT (R) dated 28.06.2017. Thus, GST is payable in this case.
16. TIME OF SUPPLY Mahak Sons is a registered supplier of electronic items and pays GST under regular
scheme. On 15th July 20XX, Mahak Sons received an order from Sunder Trader for supply of a
consignment of electronic items. Mahak Sons gets the consignment ready by 20th July 20XX. The
invoice for the consignment was issued the next day, 21st July 20XX. Sunder Trader could not collect
the consignment immediately. Sunder Trader collects the consignment from the premises of Mahak
Sons on 30th July 20XX and hands over the cheque towards payment on the same date. The said
payment is entered in the books of accounts of Mahak Sons on 31st July, 20XX and amount is
credited in their bank account on 1st August 20XX.
You are required to determine the time of supply of the electronic items for the purpose of payment of
tax.

Solution:
As per section 12(2) of the CGST Act, 2017, the time of supply in respect of goods shall be the earlier
of the following two dates:-
(d) Date of issue of invoice/last date on which the invoice is required to be issued as per section 31 of the
CGST Act, 2017
(e) Date of receipt of payment
Further, as per Notification No. 66/2017 CT dated 15.11.2017, 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)
i.e., date of issue of invoice or the last date on which invoice ought to have been issued in terms of section 31.
As per section 31(1), the invoice needs to be issued either before or at the time of removal (where supply
involves movements of goods) of goods/delivery of goods/ making goods available to the recipient.
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 for the purpose of payment of tax is the date of issue of invoice,
which is 21st July, 20XX.
17. IMPORTANT [TAX INVOICE] - ABC Ltd., a registered supplier has made following taxable supplies to
its customer Mr. P in the quarter ending 30th June, 20XX.
Date Bill Particulars Invoice value

No. (including GST) [`]
th
5 April, 20XX 102 Notebooks [10 in numbers] 1,200
th
10 May, 20XX 197 Chart Paper [4 in number] 600
th
20 May, 20XX 230 Crayon colors [2 packets] 500
nd
2 June, 20XX 254 Poster colors [5 packets] 900
nd
22 June, 20XX 304 Pencil box [4 sets] 700
Goods in respect of bill no. 102, 230 and 254 have been returned by Mr. P. You are required to advise
ABC Ltd. whether it can issue consolidated credit note against all the three invoices?
Solution:
Where one or more tax invoices have been issued for supply of any goods and/or services and
(a) the taxable value/tax charged in that tax invoice is found to exceed the taxable value/tax payable in
respect of such supply, or
(b) where the goods supplied are returned by the recipient, or
(c) where goods and/or services supplied are found to be deficient,
the registered person, who has supplied such goods and/or services, may issue to the recipient one or more
credit notes for supplies made in a financial year containing prescribed particulars.
Thus, one (consolidated) or more credit notes can be issued in respect of multiple invoices issued in a
financial year without linking the same to individual invoices.
Hence, in view of the above-mentioned provisions, M/s ABC Ltd. can issue a consolidated credit note for the
goods returned in respect of all the three invoices.
18. [PAYMENT OF TAX] - Mr. X, a supplier of goods, pays GST under regular scheme. The amount of input
tax credit (ITC) available and output tax liability under different tax heads is as under:-
Head Output tax liability ITC
IGST 2,000 4,000
CGST 800 2,000
SGST/ UTGST 2,500 500
Compute the minimum GST payable in cash by Mr. X. Make suitable assumptions as required.

Solution:
Mr. X can use the ITC to pay his output tax liability. The order of utilisation of ITC is as under:-
(i) IGST credit should first be utilized towards payment of IGST.
(ii) Remaining IGST credit, if any, can be utilized towards payment of CGST and SGST/UTGST in any order
and in any proportion.
(iii) Entire ITC of IGST should be fully utilized before utilizing the ITC of CGST or SGST/UTGST.
(iv) ITC of CGST should be utilized for payment of CGST and IGST in that order.
(v) ITC of SGST /UTGST should be utilized for payment of SGST/UTGST and IGST in that order. However,
ITC of SGST/UTGST should be utilized forpayment of IGST, only after ITC of CGST has been utilized
fully.
(vi) CGST credit cannot be utilized for payment of SGST/UTGST and SGST/UTGST credit cannot be utilized
for payment of CGST.
Computation of minimum GST payable in cash
Particulars CGST (`) SGST (`) IGST (`)

GST payable 800 2,500 2,000
Less: ITC - (2,000)-IGST (2,000)-IGST
(800)-CGST (500) – SGST
Net GST payable in cash Nil Nil Nil
Since sufficient balance of ITC of CGST is available for paying CGST liability and cross utilization of
ITC of CGST and SGST is not allowed, it is beneficial to use ITC of IGST to pay SGST (after paying
IGST liability) to minimize cash outflow.

GST By CA Suraj Agrawal SATC C.1
GST - PRACTICE TEST PAPER - SET C
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
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.
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
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. [EXEMPTION] - Examine whether supply of food and drink in the following independent cases is
exempt from GST :-
a. “Smart Kids” is a Play School located in Delhi. Smart Kids has outsourced the catering services
for supply of food and drink in the canteen of Play School to BTV Caterers, Delhi for a
consideration of ` 8,00,000 per annum.
Solution:
Services provided to an educational institution providing services by way of pre-school education and
education up to higher secondary school or equivalent, by way of catering is exempt from GST vide
Notification No. 12/2017 CT (R) dated 28.06.2017 as amended. Thus, in the given case, services
provided by BTV Caterers to Smart Kids are exempt from GST.

b. Wellness Hospital, a clinical establishment located in Tirupati, is specialised in diabetic treatment.
The hospital has its own canteen – Tasty Foods. The canteen serves the food and drink to the in-
patients as advised by the doctors/nutritionists of the hospital. Apart from this, other patients
(who are not admitted) or attendants or visitors of the in-patients also take food and drink from
the canteen.
Solution:
Services by way of health care services provided by a clinical establishment, an authorised medical
practitioner or para-medics are exempt from GST vide Notification No. 12/2017 CT (R) dated 28.06.2017
as amended.
In this regard, CBIC has clarified that food supplied by the hospital canteen to the in-patients as advised
by the doctor/nutritionists is a part of composite supply of healthcare services and is not separately
taxable. Thus, it is exempt from GST. However, other supplies of food by a hospital to patients (not
admitted) or their attendants or visitors are taxable.
In view of the same, GST is exempt on the food supplied by Tasty Foods to the in-patients as advised by
doctors/nutritionists while other supplies of food by it to patients (not admitted) or
attendants/visitors of the in-patients is taxable.
6. [Payment of Tax] Sahil is a supplier of taxable goods in Karnataka. He got registered under GST in the
month of September, 20XX and wishes to pay his IGST liability for the month. Since he’s making the
GST payment for the first time, he is of the view that he needs to mandatorily have the online banking
facility to make payment of GST ; offline payment is not permitted under GST .
You are required to apprise Sahil regarding the various modes of deposit in the electronic cash
ledger. Further, advise him with regard to following issues:
(a) Are manual challans allowed under GST?
(b) What is the validity period of the challan?
(c) Is cross utilization among Major and Minor heads of the electronic cash ledger permitted?
Solution:
Section 49(1) of CGST Act, 2017 read with rule 87 of CGST Rules, 2017 provides that the deposit in
electronic cash ledger can be made through any of the following modes, namely:-
(i) Internet Banking through authorised banks;
(ii) Credit card or Debit card through the authorised bank;
(iii) National Electronic Fund Transfer 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
/UTGST ) 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 GSTR- 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. [PAYMENT OF TAX] - Mr. Ekaant, a supplier registered in Delhi, is engaged in the business of sale and
purchase of plastic raincoats (SATC 8527230445). 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
Following additional information is also provided by Mr. Ekaant:-

Particulars Amount (` in lakh)
IGST credit on capital goods purchased in the month of July 1.5
CGST / SGST credit on other inward supplies [including credit of ` 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 ITC 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
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. Input tax credit is not allowed in respect of membership of a club in terms of section 17(5) of CGST Act,
2017.
4. Input tax credit of IGST has been used to pay IGST and CGST in that order. Alternatively, balance
IGST can also be used to pay SGST instead of CGST.
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

4 this regard. 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 for transportation of persons with seating capacity ≤ 13 persons (including the
driver) is blocked, EXCEPT WHEN USED FOR
 making further taxable supply of such motor vehicles;
 making taxable supply of transportation of passengers;
 making taxable supply of imparting training on driving such motor vehicles
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 provided by an employer to its
employees under a statutory obligation or 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 8527230445 for PDF Notes)

Class Notes

GST By CA Suraj Agrawal SATC D.1
GST - PRACTICE TEST PAPER - SET D
1. [Important] 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.
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 for repairing a
single residential unit otherwise than as a part of residential
complex [Note-3] 1,00,000 9,000 9,000
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 is taxable under reverse charge if it is notified. It is assumed that no such notification is
issued for this goods.
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 then CGST and SGST in any order vide section 49(5) of CGST Act, 2017 read with
Rules 88A.
2. [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.
]
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 used inter alia, for transportation of goods is not blocked in terms of Section
17(5) [Blocked Credit] of the CGST Act, 2017.
2. ITC on food or beverages is specifically disallowed unless the same is provide under a statutory
obligation or 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 (except the same is provided under statutory obligation) 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.
3. [Composition Scheme] - M/s. Handsome and Likemi Company, a partnership firm at Mumbai (contact
SATC 8527230445 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 ` 120 lakh and receipts of the health and fitness service
was ` 8 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 under Section 10(1),
(ii) 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:
As per section 10(1) of the CGST Act, 2017, the following registered persons, whose aggregate turnover in
the preceding financial year did not exceed ` 1.5 crore [` 75 lakh in Special Category States except
Assam, Himachal Pradesh and Jammu and Kashmir], may opt to pay tax under composition levy.
(a) Manufacturer,
(b) Persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II (restaurant
services), and
(c) Any other supplier eligible for composition levy.
Thus, essentially, the composition scheme can be availed in respect of goods and only one service namely,
restaurant service.
However, the scheme permits supply of other marginal services for a specified value along with the
supply of goods and restaurant service, as the case may be. Such marginal services can be supplied
for a value up to 10% of the turnover in the preceding year or ` 5 lakh, whichever is higher.
In view of the above-mentioned provisions, the answer to the given is as under:-
(i) Aggregate turnover in preceding financial year is 1.28 crores which does not exceeds 1.5 crores. M/s
Handsome and Likemi Company is eligible for composition scheme under Section 10(1) in current
financial year provided Value of health and fitness service does not exceeds 10% of the turnover in
the preceding year or ` 5 lakh, whichever is higher.
(ii) 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.
4. IMPORTANT - [Registration & Tax Invoice Chapter] Luv & Kush Pvt. Ltd. of Telangana 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:
As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a
and/or services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for
a person making exclusive intra - State taxable supplies of goods is as under:-
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and
Uttarakhand.
(c) ` 40 lakh for rest of India. However, the higher threshold limit of ` 40 lakh is not available to persons
engaged in making supplies of ice cream and other edible ice, whether or not containing cocoa,
Pan masala and Tobacco and manufactured tobacco substitutes.
In the given case, Luv & Kush Pvt. Ltd is located in Telangana. Though Supplier of goods are exempt
from registration upto aggregate turnover of ` 40,00,000 but this exemption is not applicable for Supplier of
goods located in Telangana. Here Limit of ` 20,00,000 is applicable.
A supplier whose aggregate turnover in a financial year exceeds ` 20 lakh in Telangana State 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 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].
Here, 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.

5. [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
6.
(i) Explain the meaning of the term “date of receipt of payment” as per section 13 of the CGST Act, 2017.
(ii) VERY IMP [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.
7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory
without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to
the goods, after the goods have been dispatched from the port of origin located outside India
but before clearance for home consumption.
[Note:- Any four points may be mentioned.]
7. [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.
8.
(i) [REVERSE CHARGE] With reference to the provisions of GST law, briefly answer the following
questions:-
(a) VERY IMP 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 8527230445)
(ii) Explain the meaning of the term “input tax” under section 2(62) of CGST Act, 2017.

Solution:
(i)
(a) VERY IMP 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.
9.
(i) IMPORTANT [Registration] Discuss the circumstances where registration is liable to be cancelled.
(ii) [Payment of Tax Chapter] Explain the order in which liability of taxable person has to be
discharged under GST laws.
Solution:
(i) IMPORTANT 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) 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.
10. [SUPPLY CHAPTER] 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 by Individual 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.

Class Notes

GST By CA Suraj Agrawal SATC E.1
GST - PRACTICE TEST PAPER - SET E
1. [VALUE OF SUPPLY] - 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.

2. [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
3. [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.
2. SGST shall first be utilised towards payment of SGST and the amount remaining, if any, may be utilised
towards the payment of IGST.
3. However, ITC of SGST/UTGST should be utilized for payment of IGST, only after ITC of CGST has
been utilized fully
[Section 49 of the CGST Act, 2017]
4. [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
5. IMP: [Section 18(6) / ITC Chapter] - Granites Textiles Ltd. purchased a needle detecting machine on
8th July, 2019 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, 2020 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 (8th July 2019 to 22 Oct 2020)
[`1,80,000 × 5%) × 6 quarters] 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
6. [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. 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)
7. [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.

8. IMPORTANT - [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 Tripura in addition to the
above-mentioned supplies?
Solution:
As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a
and/or services, if his aggregate turnover in a financial year exceeds the threshold limit.
The threshold limit for a person making exclusive intra - State taxable supplies of goods is as under:-
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana
and Uttarakhand.
(c) ` 40 lakh for rest of India.
However, the higher threshold limit of ` 40 lakh is not available to persons engaged in making supplies of ice
cream and other edible ice, whether or not containing cocoa, Pan masala and Tobacco and manufactured
tobacco substitutes.
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 ` 40 lakh (Pure Oils is located in Delhi), 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 Tripura in addition to the
above supply, then threshold limit of registration will be reduced to ` 10 lakh as Tripura 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 Tripura, 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”
9. [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.

Class Notes

GST By CA Suraj Agrawal SATC F.1
GST - PRACTICE TEST PAPER - SET F
1. IMPORTANT: M/s. Grey, a registered taxable person under regular scheme provides following
information in respect of supplies made by it during the month of Jan, 2021:
(All amount
in rupees)
(i) Inter-state supply of goods 1,00,000
(ii) Intra-state supply of 500 packets of detergent @ ` 400 each alongwith a plastic
bucket worth ` 100 each with each packet, being a mixed supply. (Rate of GST on
detergent is 18% and on plastic bucket is 28%)
(iii) Supply of online educational journals to M/s. Pinnacle, a private coaching centre 50,000
providing tuitions to students of Class X-XII, being intra-state supply.
M/s. Grey has also received the following inward supplies:
(iv) Inter-state supply of goods (out of which invoice for goods worth ` 20,000 is 70,000
missing and no other tax paying document is available)
(v) Repairing of bus with seating capacity of 20 passengers used to transport its
employees from their residence, being intra-state supply. 50,000
Details of opening balances of ITC as on 1-1-2021 are as follows:
CGST 5,000
SGST 5,000
IGST 40,000
Following additional information is provided:

(a) Rate of GST in respect of all inward and outward supplies except item (ii) above is 18%. i.e.
CGST and SGST @ 9% and IGST @ 18%.
(b) All figures mentioned above are exclusive of taxes.
(c) All the conditions for availing the ITC have been fulfilled except specifically given and M/s. Grey
is not eligible for any threshold exemption.
Compute the minimum net GST payable in cash by M/s. Grey for the month of Jan, 2021.
Answer:
Computation of minimum net GST payable in cash by M/s. Grey
for the month of Jan, 2021
Particulars Value (`) CGST (`) SGST (`) IGST (`)

Total tax liability
Inter-State supply of goods 1,00,000 18,000
Intra-State supply of 500 packets of detergents along 2,00,000 28,000 28,000
with a plastic bucket [Note-1] (500 x 400) (2,00,000 x (2,00,000 x
14%) 14%)
Supply of online educational journal to private 50,000 4,500 4,500

coaching centre [Note-2] (50,000 x (50,000 x
9%) 9%)
Total tax liability (A) 32,500 32,500 18,000

Input tax credit (ITC)
Brought forward ITC 5,000 5,000 40,000
Inter-State purchase of goods [Note-3] 50,000 9,000
Repairing of bus with seating capacity of 20 50,000 4,500 4,500
passengers [Note-4]
Total ITC (B) 9,500 9,500 49,000
Minimum net GST payable in cash
Total tax liability 32,500 32,500 18,000
Less: Set off of IGST liability from IGST credit (18,000)
Set off IGST credit against CGST and SGST liability (23,000) (8,000)
in any order and in any proportion
Set off of CGST and SGST credit against CGST and (9,500) (9,500)
SGST liability respectively
CGST SGST
Minimum net GST payable in cash Nil 15,000 Nil
Notes:-
1. Supply of detergent and bucket together with a single price of ` 400 is a mixed supply. Being a mixed
supply comprising of two supplies, it shall be treated as supply of that particular supply that attracts
highest rate of tax (28%).
2. Supply of online educational journal is exempt only when the same is provided to an educational
institution which provides a qualification recognised by law. Since, the private coaching centre does
not provide any recognised qualification, the supply of online educational journals to the same will be
taxable.
3. ITC can be taken only on the basis of a valid tax paying document. Thus, ITC will not be available on
goods for which the invoice is missing.
4. ITC on motor vehicles for transportation of persons with seating capacity > 13 persons (including the
driver) used for any purpose is allowed. Further, ITC is allowed on repair and maintenance services
relating to motor vehicles, ITC on which is allowed.
Note: Under the amended position of law, the IGST credit, after being set off against IGST liability, can be
utilised against CGST and SGST liability in any order and in any proportion. Thus, there cannot be one
answer for the minimum net CGST and SGST payable in cash [i.e. GST liability] as the amount of CGST
and SGST liabilities are the same as also the amount of ITC for CGST and SGST is also the same.
2. Mr. Zafar of Assam, provides the following information for the preceding financial year 2019-20. You
are required to find out the aggregate turnover for the purpose of eligibility of composition levy
scheme under Section 10(1) and determine whether he is eligible for composition levy scheme or
not, for the F.Y. 2020-21.
Particulars Amount
(` in lakh)
Value of taxable outward supplies (out of above, ` 10 lakh was in course of inter- 50.00
state transactions).
Value of exempt supplies (which include ` 30 lakh received as interest on loans & 70.00
advances).
Value of inward supplies on which he is liable to pay tax under reverse charge 5.00
Value of exports 5.00
All the amounts are exclusive of GST.

Answer:
Computation of aggregate turnover of Mr. Zafar for FY 2019-20 for the purpose of eligibility of
composition levy scheme under Section 10(1)
Particulars Amount
in lakh (`)
Value of taxable outward supplies 50
[Value of all taxable supplies including inter-State supplies are includible in aggregate
turnover]
Value of exempt supplies 40
[Value of exempt supplies is includible in aggregate turnover. However, value of supply
of exempt services by way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount, though exempt, is not
includible in aggregate turnover for determining eligibility for composition
scheme]
Value of inward supplies on which Mr. Zafar is liable to pay tax under reverse charge Nil
[Excludible from aggregate turnover]
Value of exports 5
[Includible in aggregate turnover]
Aggregate turnover for determining eligibility for composition scheme 95
A registered person of Assam is eligible to opt for composition levy if his aggregate turnover does not
exceed ` 1.5 crore in the preceding financial year provided he is not engaged in inter-State outward
supplies of goods.
Therefore, in the given case, assuming that he is not engaged in making any inter-State outward supply of
goods in FY 2020-21, Mr. Zafar is eligible to opt for composition levy for FY 2020-21 since his aggregate
turnover does not exceed ` 1.5 crore in FY 2019-20.
3. Know & Grow Publishers, a registered dealer in India, paid an advance of ` 50,000 to Mr. Ganatra, an
author (an unregistered person), for the copyright covered under Section 13(1)(a) of the Copyright
Act, 1957, of his original literary work on 5-9-2020. It made the balance payment of ` 1,50,000 on 12-
12-2020.
You are required to determine the time of supply, if Mr. Ganatra raised the invoice on:
a. 6-10-2020, or
b. 17-12-2020
Answer:
GST on supply of services by an author by way of transfer or permitting the use or enjoyment of a
copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to original literary works to a
publisher is payable under reverse charge by such publisher, i.e. Know & Grow Publishers.
The time of supply of service, on which GST is payable under reverse charge, is earlier of the
following:
(a) Date of payment as entered in the books of account of the recipient or date on which payment is
debited from the bank account, whichever is earlier
or
(b) 61st day from the date of issue of invoice by the supplier
(i) If the invoice is issued on 06.10.2020, time of supply is as under:

 For the payment of ` 50,000: 05.09.2020 [earlier of date of payment and 61st day from date of
issue of invoice]
 For the payment of ` 1,50,000: 06.12.2020 [earlier of date of payment and 61st day from date
of issue of invoice]
(ii) If the invoice is issued on 17.12.2020, time of supply is as under:

 For the payment of ` 50,000: 05.09.2020 [earlier of date of payment and 61st day from date of
issue of invoice]
 For the payment of ` 1,50,000: 12.12.2020 [earlier of date of payment and 61st day from date
of issue of invoice]

4. Explain the registration requirements under GST law in the following independent cases:
(i) Mr. Ahmad of Jammu engaged in the business of supplying tobacco based Pan Masala with
an aggregate turnover of ` 24 lacs.
(ii) Mr. Lepcha of Mizoram is engaged in the supply of papers with an aggregate turnover of ` 13
lacs.
Will your answer be different if Mr. Lepcha is located in Meghalaya?
Answer:
(i) A person is eligible for enhanced threshold limit of ` 40 lakh in the State of Jammu and Kashmir if he is
engaged exclusively in intra-State supply of goods.
However, the enhanced threshold limit is not applicable if the person is engaged, inter alia, in the
supply of pan masala and all goods of chapter 24 i.e. Tobacco and manufactured tobacco
substitutes. In that case, the normal threshold limit of ` 20 lakh will be applicable.
In view of said provisions, in the given case, Mr. Ahmad is liable to register since his aggregate
turnover (` 24 lakh) exceeds the applicable threshold limit for registration of ` 20 lakh.
(ii) The enhanced threshold limit of ` 40 lakh as applicable to a person engaged exclusively in intra-
State supply of goods, is not applicable to Mizoram [a specified Special Category State]. Instead,
a lower threshold limit of ` 10 lakh for registration is applicable for Mizoram.
Thus, in the given case, Mr. Lepcha of Mizoram is liable to register since his aggregate turnover (`
13 lakh) exceeds the applicable threshold limit for registration of ` 10 lakh.
The enhanced threshold limit of ` 40 lakh is also specifically not applicable in the State of
Meghalaya. Instead, the normal threshold limit of ` 20 lakh for registration is applicable to it.
Therefore, if Mr. Lepcha is located in Meghalaya, he is not liable to register since his aggregate
turnover (` 13 lakh) does not exceed the applicable threshold limit for registration of ` 20 lakh.
5. Mr. Shah, a consignor is required to move goods from Ahmedabad (Gujarat) to Nadiad (Gujarat). He
appoints Mehta Transporter for movement of goods. Mehta Transporter moves the goods from
Ahmedabad (Gujarat) to Kheda (Gujarat). For completing the movement of goods from Kheda
(Gujarat) to Nadiad (Gujarat), Mehta Transporter now hands over the goods to Parikh Transporter.
Explain the procedure regarding e-way bill to be followed by consignor and transporter as per
provisions of GST law and rules made thereunder.
Answer:
In the given scenario, only one e-way bill is required to be issued.
Part A can be filled by either Mr. Shah or recipient of goods or Mehta Transporter on the appropriate
authorisation.
Where the goods are transferred from one conveyance to another, the consignor or the recipient, who has
provided information in Part A, or the transporter shall, before such transfer and further movement of
goods, update the details of conveyance in the e-way bill on the common portal in Part B.
Thus, on reaching Kheda, Mr. Shah or the recipient of the goods, who has filled Part A of the e-way bill, or
Mehta Transporter can, before the transfer and further movement of goods, update the details of
conveyance in Part B of the e-way bill.
Further, the consignor or the recipient, who has furnished the information in Part A, or the transporter, may
assign the e-way bill number to another registered or enrolled transporter for updating the information in
Part B for further movement of the consignment.
Thus, on reaching Kheda, Mr. Shah or the recipient of the goods, or Mehta Transporter can assign the said
e-way bill to Parikh Transporter who will thereafter update the details of conveyance in Part B.
However, upon updation of the details of the conveyance by Parikh transporter in Part B, Mr. Shah or
recipient, as the case may be, who has furnished the information in Part A shall not be allowed to assign
the e-way bill number to another transporter.

6. [CHARGE OF GST] - Explain in brief the conditions to be fulfilled by a registered person under GST
law for availing the option to pay concessional tax @ 3% (effective rate 6%) under GST as per the
provisions of Section 10(2A), with effect from 1st April, 2020.
Answer:
The registered person desirous of availing the option to pay concessional tax @ 3% (effective
rate 6%) should -
(i) not be engaged in making any supply which is not leviable to tax.
(ii) not be engaged in making any inter-State outward supply of goods.
(iii) neither be a casual taxable person nor a non-resident taxable person.
(iv) not be engaged in making any supply through an electronic commerce operator who is required to
collect tax at source.
(v) not be engaged in making supplies of notified goods.
(vi) neither collect any tax from the recipient nor be entitled to any input tax credit.
(vii) issue a bill of supply instead of tax invoice.
(viii) not have the aggregate turnover in the preceding financial year exceeding ` 50 lakh
(ix) not be eligible for composition scheme under Section 10(1).
7. RETURN - Discuss the provisions of Section 39(9) of the CGST Act, 2017, relating to rectification of
errors/omissions in GST returns already filed and also state its exceptions. State the time limit for
making such rectification.
Answer:
Omission or incorrect particulars discovered in the returns filed under section 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.
Exception
Section 39(9) of the CGST Act does not permit rectification of error/omission discovered on account of
scrutiny, audit, inspection or enforcement activities by tax authorities.
The time limit for making such rectification is earlier of the following dates:
(i) Due date for filing return for September month of next financial year or
(ii) Actual date of filing annual return
8. RETURN - Explain the consequences, if the taxable person under GST law files the GST return
under Section 39(1) of the CGST Act, 2017, but does not make payment of self- assessment tax.
Answer:
If the taxable person under GST law files the GST return under section 39(1) of the CGST Act, 2017, but
does not pay the self-assessment tax, the return is not considered as a valid return.
Since the input tax credit can be availed only on the basis of a valid return, the taxable person, in the
given case, will not be able to claim any input tax credit.
He shall pay interest, penalty, fees or any other amount payable under the CGST Act for filing return
without payment of tax.
9. PAYMENT OF TAX - State the items which are to be debited· to electronic liability register of the
taxable person under the CGST Act, 2017 and rules thereunder.
Answer:
The items to be debited to electronic liability register of the taxable person are as under:-
(a) all amounts payable towards tax, interest, late fee and any other amount as per return filed;
(b) all amounts payable towards tax, interest, penalty and any other amount determined in a proceeding
by an Assessing authority or as ascertained by the taxable person;
(c) the amount of tax and interest as a result of mismatch.
(d) any interest amount that may accrue from time to time.
Note: Any three points may be mentioned out of the above mentioned four points.

10. IMPORTANT: Alfa Institute of Management (AIM), a private college, is registered under GST in the
State of Punjab. AIM provides the following particulars for the month of April, 2021:
SI. Particulars Amount (`)

No.
i. Tuition fee received from students pursuing management courses recognised by 18,00,000
Punjab University, established by an Act of State Legislature
ii. Tuition fee received from students pursuing under- graduate courses 8,50,000
recognised by Stan University, London under Dual Degree programmes
iii. Fee received from students of competitive exam training academy run by a 5,40,000
Department of AIM
iv. Mess fees received from students (Mess is run by AIM on its own) 3,20,000
v. Amount paid to Local Municipal Corporation for premises taken on rent for 50,000
conducting coaching classes for competitive exams
vi. Legal services availed from Top Care & Co., a Partnership firm of advocates, for 20,000
the competitive exam training academy (Intra-state transaction)
Note:
Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively for both outward and inward
supplies.
All the amounts given above are exclusive of taxes, wherever applicable.
All the conditions necessary for availing the ITC have been fulfilled, wherever applicable. No opening
balance of ITC under any head of tax.
From the information given above, you are required to calculate the Value of taxable supply and net
GST liability (CGST, SGST or IGST as the case may be) to be paid in cash, if any, by AIM for the
month of April, 2021.
Answer:
Computation of value of taxable supply and net GST liability to be paid in cash by AIM for
April, 2021
Particulars Amount
(`)
Tuition fee received from students pursuing recognized management courses [Note-1] Nil
Tuition fee received from students pursuing under-graduate courses recognized by Foreign 8,50,000
University [Note-2]
Fee received from students of Competitive Exam Training Academy [ Note-3] 5,40,000
Mess fees received from students [Note-4] Nil
Total value of taxable supply 13,90,000
GST liability under forward charge @ 9% [Note-5] 1,25,100 1,25,100
Services on which tax is payable under reverse charge:
Rent paid to Local Municipal Corporation [Note-6] 4,500 4,500
Legal services received from Top Care & Co., a partnership firm of 1,800 1,800
advocates1 [Note-7]
GST liability under reverse charge payable in cash [A] [Note-8] 6,300 6,300
Output tax payable against which ITC can be set off 1,25,100 1,25,100
Less: ITC of renting immovable property and legal services 6,300 6,300
Output tax payable after set off of ITC [B] 1,18,800 1,18,800
Net GST liability payable in cash [A] + [B] 1,25,100 1,25,100

Notes:-
1. Services provided by an educational institution to its students are exempt. Further, educational
institution means inter alia an institution providing services by way of education as a part of a
curriculum for obtaining a qualification recognised by an Indian law.
Therefore, tuition fee received by Punjab University, being an educational institution, is exempt, since it
provides qualification recognised by Indian law.
2. Tuition fee received by Stan University is taxable since Stan University is not an educational institution
as qualification provided by it is not recognised by Indian law.
3. Fee received from students of competitive exam training academy is taxable as Department of AIM is
not an educational institution since competitive exam training does not lead to grant of a recognized
qualification.
4. Catering services provided by educational institutions to its students are exempt. It has been assumed
that the mess fees has been charged from the students pursuing the qualification recognised by law.
5. Since all the services provided are intra-State, CGST and SGST @ 9% is charged
6. GST is payable under reverse charge in case of renting of immovable property services supplied by a
local authority to a registered person.
7. GST is payable under reverse charge in case of legal services supplied by a firm of advocates to a
business entity
8. 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.
11. ITC CHAPTER - Dina Ltd., a registered supplier from Maharashtra, is engaged in the manufacturing
of Passenger auto. The company provides the following details of purchases made/services availed
by it during the month of March, 2021:
SI. Particulars GST Paid

No. (`)
i. Purchase of iron which is used as a raw material 2,50,000
[Goods were received in two instalments, first one in March, 2021 and the second
instalment was received in April, 2021]
ii. Purchase of accessories which were delivered directly to the dealers of the 90,000
company. Only invoice was received by Dina Ltd.
iii. Purchase of Bus (seating capacity 15) for the transportation of employees from 1,97,000
their residence to company and back
iv. Input tax on general insurance taken on a car used by Executives of the company 5,200
for official purposes
v. Payment made to M/s Tasty Caterers for providing daily breakfast & lunch to the 54,700
employees of the company, as a voluntary staff welfare measure
You are required to determine the eligible Input tax credit available to M/s Dina Ltd. for the month of
March, 2021, by giving brief explanations for treatment of various items. Subject to the information
given above, all the other conditions necessary for availing input tax credit have been fulfilled.
Answer:
Computation of input tax credit (ITC) available with Dina Ltd. for the month of March 2021
Particulars ITC (`)

Purchase of iron used as a raw material [Note-1] Nil
Purchase of accessories delivered directly to the dealers of the company2 [Note-2] 90,000
Bus for the transportation of employees [Note-3] 1,97,000
General insurance taken on car used by executives of the company for official purpose [Note- Nil
4]
Payment made to caterer for providing breakfast and lunch to the employees of company Nil
[Note-5]

Notes:-
1. When inputs are received in instalments, ITC can be availed only on the receipt of last instalment.
Hence, since last instalment is received in April 2021, ITC cannot be availed in March 2021.
2. Goods delivered to another person on the direction of the registered person by way of transfer of
documents of title or otherwise, either before or during the movement, are deemed to have been
received by such registered person. Thus, ITC is available to the registered person, on whose
order/direction the goods are delivered to a third person.
3. ITC on motor vehicles for transportation of persons with seating capacity > 13 persons (including the
driver) used for any purpose is allowed.
4. ITC on motor vehicles for transportation of persons with seating capacity ≤ 13 persons (including the
driver) is blocked except when the same are used for (i) making further taxable supply of such motor
vehicles (ii) making taxable supply of transportation of passengers (iii) making taxable supply of
imparting training on driving such motor vehicles. Further, ITC is not allowed on services of general
insurance relating to such ineligible motor vehicles.
Since, the car is not used for any of the eligible purposes, ITC thereon is blocked and thus, ITC on
general insurance taken on such car is also blocked.
5. ITC on outdoor catering is blocked except (i) in the case of sub-contracting, i.e. when such service is
used by the taxpayer who is in the same line of business (ii) when such service is provided by the
employer to its employees under a statutory obligation.
Since the company is not an outdoor caterer and it is providing such services to its employees as a
voluntary staff welfare measure, ITC on such outdoor catering services is blocked.
12. CHARGE OF GST - M/s Pranav Associates, a Partnership firm, provided recovery agent service to
Newtron Credits Ltd., a NBFC and a registered supplier, on 15th January, 2021. Invoice for the same
was issued on 7th February, 2020 and the payment was made on 18th April, 2021 by Newtron Credits
Ltd. Bank account of company was debited on 20 th April, 2021. Determine the following:
(i) Person liable to pay GST
(ii) Time of supply of service.
Answer:
(i) Tax on services supplied by a recovery agent to, inter alia, a non- banking financial company is payable
under reverse charge by such non-banking financial company.
Therefore, in the given case, person liable to pay GST is the NBFC - Newton Credits Ltd.
(ii) The time of supply of service on which GST is payable on reverse charge basis is earlier of the
following:-
(a) Date of payment as entered in the books of account of the recipient (18th April, 2021) or the date on
which the payment is debited in his bank account (20th April, 2021), whichever is earlier;
(b) Date immediately following 60 days since issue of invoice by the supplier,
i.e. 9th April, 2021.
Thus, time of supply of service is 9th April, 2021.
13. TAX INVOICE - Kartik & Co., a registered supplier under GST, provides the following information
regarding various tax invoices issued by it during the month of March, 2021:
(i) Value of supply charged in an invoice was ` 2,50,000 against the actual taxable value of `
2,30,000.
(ii) Tax charged in an invoice was ` 32,000 against the actual tax liability of ` 68,000 due to wrong
HSN code being chosen while issuing invoice.
(iii) Value charged in an invoice was ` 3,20,000 as against the actual value of ` 4,20,000 due to
wrong quantity considered while billing.
Kartik & Co. asks you to answer the following:

(1) Who shall issue a Debit/Credit Note under CGST Act, 2017?
(2) Whether Debit Note or Credit Note has to be issued in each of the above circumstances and, if
so, quantify the amount for which it is to be issued.
(3) What is the maximum time-limit available for declaring the credit note in the GST Return?

Answer:
(1) The debit/credit note shall be issued by the registered person who has supplied the goods and/or services,
i.e. Kartik & Co.
(2) Yes debit/credit note need to be issued in each of the circumstances as under:
(i) A credit note is required to be issued as the taxable value in invoice exceeds the actual taxable
value. The credit note should be issued for the excess value of supply charged in the invoice, i.e. `
20,000.
(ii) A debit note is required to be issued as the tax charged in the invoice is less than the actual tax
payable. The debit note should be issued for the amount of tax which is charged less, i.e. ` 36,000.
(iii) A debit note is required to be issued as the value of supply charged in the invoice is less than the
actual value. The debit note should be issued for the amount of value which is charged less, i.e. `
1,00,000.
(3) The details of the credit note cannot be declared later than the return for the month of September
following the end of the financial year in which such supply was made or the date of furnishing of the
relevant annual return, whichever is earlier.
14. REGISTRATION - Examine, with reason, whether registration is required under CGST Act, 2017 in
the following independent cases:
(i) Aadhav Computers of Gujarat is providing Computer Maintenance Service. Aggregate turnover
of Aadhav Computers is ` 15 Lakh which comprises both inter- state and intra-state supply.
(ii) Soft Wings of West Bengal, exclusively trading in garments, supplies its taxable goods to
various States in India. Aggregate turnover of Wild Wings is ` 35 Lakh.
Answer
(i) Registration is compulsory for suppliers engaged in inter-State supply. However, threshold exemption of `
20 lakh [` 10 lakh in case of Specified Special Category States] is available in case of inter-State supply of
taxable services.
Therefore, Aadhav Computers (aggregate turnover ` 15 lakh) is not required to obtain registration as it
is engaged in inter-State supply of taxable services and thus, is eligible for threshold exemption of ` 20
lakh applicable for Gujarat.
(ii) The threshold limit for registration in the State of West Bengal for the persons engaged exclusively in
supply of goods, is ` 40 lakh. However, registration is compulsory if the supplier is engaged inter-State
supply of goods. The threshold exemption of ` 20 lakh/ ` 10 lakh is not available in case of inter-State
supply of taxable goods.
Thus, Soft Wings is required to obtain registration.
Note: In the above question, “Wild” Wings be read as “Soft” Wings.
15. COMPOSITION SCHEME - M/s United Electronics, a registered dealer, is supplying all types of
electronic appliances in the State of Karnataka. Their aggregate turnover in the financial year 2019-
20 by way of supply of appliances was ` 120 Lakh.
The firm also expects to provide repair and maintenance service of such appliances from the financial
year 2020-21.
With reference to the latest amendments made in the CGST Act, 2017, examine:
(i) Whether the firm can opt for the composition scheme for the financial year 2020-21, as the
turnover may include supply of both goods and services?
(ii) If yes, up to what amount, the supply of service can be provided?
Answer
(i) The registered persons, whose aggregate turnover in the preceding financial year did not exceed ` 1.5
crore, may opt to pay tax under composition levy. The scheme can be availed by an intra-State supplier of
goods and supplier of restaurant service.
However, the composition scheme permits supply of marginal services (other than restaurant services)
for a specified value along with the supply of goods and restaurant service, as the case may be.
Thus, M/s United Electronics can opt for composition scheme for the financial year 2020-21 as its
aggregate turnover is less than ` 1.5 crore in the preceding financial year and it is not engaged in inter-
State outward supplies.
(ii) The registered person opting for composition scheme can also supply services (other than restaurant
services) for a value up to 10% of the turnover in the preceding year or ` 5 lakh, whichever is higher, in
the current financial year.
Thus, M/s United Electronics can supply repair and maintenance services up to a value of ` 12 lakh
[10% of ` 120 lakh or ` 5 lakh, whichever is higher] in the current financial year 2020-21.
16. Mr. Alok, a registered supplier of taxable goods, filed GSTR 3B for the month of January, 2021 on
15th April, 2021. The prescribed due date to file the said GSTR 3B was 20th February, 2021. The
amount of net GST payable on supplies made by him for the said month worked out to be ` 36,500
which was paid on the same date of filing the return. Briefly explain the related provisions and
compute the amount of interest payable under the CGST Act, 2017 by Mr. Alok.
Answer:
Interest is payable in case of delayed payment of tax @ 18% per annum from the date following the due
date of payment to the actual date of payment of tax .
Thus, the amount of interest payable by Mr. Alok is as under:- Period of delay = 21st February, 2021 to 15th
April, 2021
= 55 days
Hence, amount of interest = ` 36,500 x 18% x 55/365

= ` 990
17. Discuss about the exemption available to the services provided by an Old Age Home under the
CGST Act, 2017.
Answer
The services provided by an old age home to its residents are exempt if the following conditions are
fulfilled:
(i) the old age home is run by Central Government, State Government or an entity registered under
section 12AA of the Income-tax Act, 1961.
(ii) The consideration charged is upto ` 25,000 per month per member.
(iii) The consideration charged is inclusive of charges for boarding, lodging and maintenance.
(iv) The residents of the old age home are aged 60 years or more.
18. Documents based on which ITC is taken should contain at least certain details. What are they?
Answer
The documents based on which ITC is taken should contain at least the following details:
(i) Amount of tax charged
(ii) Description of goods or services
(iii) Total value of supply of goods and/or services
(iv) GSTIN of the supplier and recipient
(v) Place of supply in case of inter-State supply
Note: Any four points may be mentioned out of the above mentioned five points.
19. Discuss about the late fee levied for delay in filing :
(i) Final Return
(ii) Annual Return
Answer
(i) The late fee levied for delay in filing final return is:
(a) ` 100 for every day during which such failure continues or
(b) ` 5,000
whichever is lower.
(ii) The late fee levied for delay in filing annual return is:
(a) ` 100 for every day during which such failure continues, or
(b) 0.25% of the turnover of the registered person in the State/Union Territory
whichever is lower.

GST By CA Suraj Agrawal SATC G.1
GST - PRACTICE TEST PAPER - SET G
1. Mr. Himanshu, a registered supplier of chemicals, pays GST under regular scheme. He is not eligible
for any threshold exemption. He has made the following outward taxable supplies for the month of
January 20XX:
Intra-State supply of goods ` 25,00,000
Inter-State supply of goods ` 5,00,000
He has also made the following inward supply :
Intra-State purchase of goods from registered dealer ` 14,00,000
Inter-State purchase of goods from registered dealer ` 4,00,000
Balance of ITC at the beginning of January 2020:
CGST ` 95,000
SGST ` 60,000
IGST ` 50,000
Additional Information :
 He purchased a car (Intra-State supply) used for business purpose at a price of ` 6,72,000/-
(including CGST of ` 36,000 & SGST of ` 36,000) on January 15, 20XX. He capitalized the full value
including GST in the books on the same date to claim depreciation.
 Out of Inter-State purchase from registered dealer, goods worth ` 1,00,000 were received on
February 3, 20XX due to road traffic jams.
Note:
(i) Rate of CGST, SGST and IGST to be 9%, 9% and 18% respectively.
(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 except mentioned above.
(iv) Compute the net CGST, SGST and IGST payable in cash by Mr. Himanshu for the month of
January 20XX.
Answer
Computation of net GST payable in cash of Mr. Himanshu for January 20XX
Particulars Value (`) CGST (`) SGST IGST
(`) (`)
Total tax liability
Intra-State outward supplies of goods 25,00,000 2,25,000 2,25,000
Inter-State outward supplies of goods 5,00,000 90,000
Total tax liability (A) 2,25,000 2,25,000 90,000
Input Tax Credit (ITC)
Brought forward ITC 95,000 60,000 50,000
Intra-State purchase of goods from registered dealer 14,00,000 1,26,000 1,26,000
[Note-1]
Inter-State purchase of goods from registered dealer 3,00,000 - - 54,000
[Note-1 and Note 4]
Purchase of car used for business purpose [Note-2] - - - -
Total ITC (B) 2,21,000 1,86,000 1,04,000
Net GST liability = (A)-(B) 4,000 39,000 (14,000)
Less: Set off from IGST credit [Note-4] 4,000 10,000
Net GST payable in cash Nil 29,000 Nil

Notes:
1. Every registered person is entitled to take credit of input tax charged on any inward supply of goods
used/intended to be used in the course/furtherance of his business.
2. Input tax paid on capital goods cannot be availed as ITC if depreciation has been claimed on such tax
component. Moreover, ITC on motor vehicle (car) is blocked under section 17(5) of CGST Act, 2017.
3. A registered person is entitled to avail input tax in respect of any supply of goods to him only if he has
actually received the said goods. Since goods worth ` 1,00,000 have not been received by Mr. Himanshu
in the month of September 20XX, credit in respect of same cannot be claimed in the said month.
4. Input tax credit of IGST has been used to pay IGST and then with CGST and SGST in any order.
2. M/s. Apna Bank Limited, a Scheduled Commercial Bank has furnished the following details for the
month of August, 20XX:
Particulars Amount ` in
Crores
(Excluding GST)
Extended Housing Loan to its customers 100
Processing fees collected from its customers on sanction of loan 20
Commission collected from its customers on bank guarantee 30
Interest income on credit card issued by the bank 40
Interest received on housing loan extended by the bank 25
Minimum balance charges collected from current account and saving account 01
holder
Compute the value of taxable supply. Give reasons with suitable assumptions.
Answer
Computation of value of taxable supply of M/s. Apna Bank Limited for the month of August, 20XX
Particulars Amount in
crores (`)
Housing loan extended to customers Nil
[Since money does not constitute goods, extending housing loan is not a supply.]
Processing fee collected on sanction of loan 20
[Interest does not include processing fee on sanction of the loan. Hence, the same is
taxable.]
Commission collected on bank guarantee 30
[Any commission collected over and above interest on loan, advance or deposit are not
exempt.]
Interest income on credit card issued by the bank 40
[Services by way of extending loans in so far as the consideration is represented by way of
interest are exempt from tax. However, interest involved in credit card services is not
exempt.]
Interest received on housing loan Nil
[Services by way of extending loans in so far as the consideration is represented by way of
interest are exempt from tax.]
Minimum balance charges collected from current account and saving account holder 01
[Any charges collected over and above interest on loan, advance or deposit are not
exempt.]
Value of taxable supply 91
3. Decide with reason whether the following independent services are exempt under CGST Act, 2017:
1. Gokul Residents' Welfare Association received ` 9,000 per month as contribution from each
member for sourcing of goods and services from third persons for common use of its members.
2. Mr. Vikalp, a performing artist, has received ` 1,58,000 from performance of classical dance and `
90,000 from acting in TV Serial during the month of June 20XX.

Answer
1. Service by an unincorporated body or a registered non-profit entity, to its own members by way of share
of contribution up to an amount of ` 7,500 per month per member for sourcing of goods/services from a
third person for the common use of its members in a housing society or residential complex, is exempt.
In the given case, monthly contribution per month per member received by Gokul Residents’ Welfare
Association exceeds ` 7,500.
Therefore, exemption will not be available and GST would be payable on the full amount of ` 9,000.
2. Services by an artist by way of a performance in folk or classical art forms of music, dance, or theatre, if
the consideration charged for such performance is not more than ` 1,50,000 are exempt from GST.
In the given case, since the consideration received by the performing artist- Mr. Vikalp for performance of
classical dance is more than ` 1,50,000, said services are not exempt.
Further, consideration received for acting in TV serial is also not exempt since said performance is not in
folk/classical art forms of theatre.
4. Examine the following independent cases of supply of goods and services and determine the time of
issue of invoice under each of the cases as per the provisions of CGST Act, 2017:
(i) Sakthi Enterprises, Kolkata entered into a contract with Suraj Enterprises, Surat for supply of
goods on 30th September, 20XX. The goods were removed from the factory at Kolkata on 11th
October, 20XX. As per the agreement, the goods were to be delivered by 31st October, 20XX. Suraj
Enterprises has received the goods on 14th October, 20XX.
(ii) Trust and Fun Ltd, an event management company, has provided its services for an event at
Kapoor Film Agencies, Mumbai on 5th June, 20XX. Payment for the event was made on 19th June,
20XX.
Answer:
(i) A registered person supplying taxable goods shall issue a tax invoice, before or at the time of removal of
goods for supply to the recipient, where the supply involves movement of goods.
Therefore, in the given case, invoice has to be issued on or before, 11th October 2018 (the time of
removal of goods).
(ii) A registered person [other than an insurer/banking company/financial institution, including an NBFC]
supplying taxable services shall issue a tax invoice before or after the provision of service, but within a
period of 30 days from the date of supply of service.
Thus, in the given case, invoice has to be issued within 30 days of 5th June 20XX (date of supply of
service), i.e. on or before, 5th July 20XX.
5. M/s. Daksha Enterprises has made a cash deposit of ` 10,000 under minor head 'tax' of major head
'SGST’. It has a liability of ` 2,000 for minor head "Interest" under the major head "SGST".
State whether M/s. Daksha Enterprises can utilise the amount available for payment of interest.
Answer
The cash available in any minor head of a major head cannot be utilised for any other minor head of the same
major head.
Therefore, in the given case, amount of ` 10,000 available under minor head ‘tax’ of major head ‘SGST’
cannot be utilised for payment of liability of ` 2,000 under minor head ‘interest’ of the same major head.
6. State with brief reason, whether following suppliers of taxable goods are required to register under
the GST Law :
(i) Mr. Raghav is engaged in wholesale cum retail trading of medicines in the State of Assam. His
aggregate turnover during the financial year is ` 9,00,000 which consists of ` 8,00,000 as Intra-
State supply and ` 1,00,000 as Inter-State supply.
(ii) Mr. S.N Gupta of Rajasthan is engaged in trading of taxable goods on his own account and also
acting as an agent of Mr. Rishi of Delhi. His turnover in the financial year 2020-21 is of ` 12 lakhs
on his own account and ` 9 lakhs on behalf of principal. Both turnovers are Intra -State supply.

Answer
(i) Person making any inter-State taxable supply of goods is required to obtain registration compulsorily
under GST laws irrespective of the quantum of aggregate turnover.
Thus, in the given case Mr. Raghav is required to obtain registration compulsorily under GST laws even
though his aggregate turnover does not exceed the threshold limit.
(ii) Persons who make taxable supply of goods on behalf of other taxable persons whether as an agent or
otherwise are required to obtain registration compulsorily under GST laws irrespective of the quantum of
aggregate turnover.
Aggregate turnover includes all supplies made by the taxable person, whether on his own account or
made on behalf of all his principals.
Since Mr. S.N Gupta is also acting as an agent of Mr. Rishi of Delhi, he is required to obtain registration
compulsorily under GST laws.
7. Enumerate the persons who are not eligible to opt for Composition Scheme under section 10(2) of the
CGST Act, 2017.
Answer
A registered person shall not be eligible to opt for composition scheme if:-
(i) Save as provided in sub-section (1), he is engaged in supply of services other than supplies referred to
in clause (b) of paragraph 6 of Schedule II.
(ii) he is engaged in supply of goods not leviable to tax
(iii) he is engaged in inter-State outward supplies of goods
(iv) he is engaged in supply of goods through an electronic commerce operator
(v) he is a manufacturer of notified goods, namely, manufacturer of ice cream, aerated water, pan masala
and tobacco.
8. List out the situations in which a Credit note/Debit note may be issued under the CGST Act, 2017.
Answer
Credit note is required to be issued by the Supplier:-
(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 by the Supplier:-

(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
9. Answer the following questions with respect to casual taxable person under the CGST Act, 2017 :
(i) Who is a casual taxable person?
(ii) Can a casual taxable person opt for the composition scheme?
(iii) When is the casual taxable person liable to get registered?
(iv) What is the validity period of the registration certificate issued to a casual taxable person?
(v) Can the validity of registration certificate issued to a casual taxable person be extended? If yes,
what will be the period of extension?

Answer
(i) Casual taxable person means a person who occasionally undertakes transactions involving supply of
goods and/or services in the course or furtherance of business, whether as principal, agent or in any other
capacity, in a State/UT where he has no fixed place of business.
(ii) No, a casual taxable person cannot opt for the composition scheme.
(iii) A casual taxable person (CTP) is liable to obtain registration compulsorily under GST laws, at least 5 days
prior to commencement of business.
However, threshold limit of ` 20 lakh (` 10 lakh in case of Special Category State) is available in case of
CTP making taxable supplies of specified handicraft goods.
(iv) The registration certificate issued to a casual taxable person will be valid for:
a) the period specified in the registration application, or
b) 90 days from the effective date of registration
(v) Yes, the validity of registration certificate issued to a casual taxable person can be extended. It can be
extended by a further period not exceeding 90 days.
10. IMP: Mr. Uttam Ku mar a registered supplier of service in Kolkata, has provided following information
for the month of October, 20XX:
No. Particulars Amount in (`)
1. Intra-State taxable supply of service 6,40,000
2. Amount received from Kapola Pvt. Ltd., for service provided to company. 5,00,000
(He is a director in Kapola P. Ltd.), being Intra-State transaction.
3. Paid legal fee to senior advocate for one legal matter within State, being 50,000
Intra-State transaction.
4. Amount received for service provided by him as a commentator. to a local 1,20,000
recognized sports body, being Intra-State transaction
5. Amount received for acting as a coach in recreational activities relating to 30,000
sports, from one local charitable entity registered under section12AA of
the Income Tax Act, 1961, being Intra-_State transaction.
Compute the net GST liability (CGST, SGST or IGST) of Mr. Uttam Kumar for the month of October,
20XX.
Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively.
All the amounts given are exclusive of CGST, SGST and IGST, wherever applicable.
Answer
Computation of net GST liability of Mr. Uttam Kumar October, 20XX
Particulars Amount (`) CGST (`) SGST (`)
Intra-State taxable supply of service 6,40,000 57,600 57,600
Add: Amount received from Kapola Pvt. Ltd. for service provided to 5,00,000 Nil Nil
company, being intra-State transaction [Note-1]
Add: Legal fee paid to senior advocate for one legal matter within 50,000 4,500 4,500
the State, being intra-State transaction [Note-2]
Add: Amount received for services provided as a commentator to a 1,20,0000 10,800 10,800
local recognized sports body, being intra-State transaction [Note-3]
Add: Amount received for acting as a coach in recreational activities 30,000 Nil Nil
relating to sports from one local charitable entity registered under
section 12AA of the Income Tax Act, 1961, being intra-
State transaction [Note-4]
Total tax payable 72,900 72,900
Less: Cash paid towards tax payable under reverse charge [A] 4,500 4,500
[Note-5]
Output tax payable against which ITC can be set off 68,400 68,400
Less: ITC of tax paid on legal fees paid to senior advocate 4,500 4,500
Output tax payable after set off of ITC [B] 63,900 63,900
Net GST liability [A] + [B] 68,400 68,400

Notes:-
1. Services supplied by a director of a company to the said company are taxable under reverse charge and
thus, the tax leviable thereon will be paid by the company.
2. Services provided by a senior advocate by way of legal services are taxable under reverse charge and
thus, the tax leviable thereon will be paid by Mr. Uttam Kumar.
3. Services provided to a recognized sports body by an individual as a player, referee, umpire, coach or
team manager for participation in a sporting event organized by a recognized sports body is exempt from
GST vide exemption notification. However, services provided as a commentator to a local recognized
sports body is taxable.
4. Services by way of coaching in recreational activities relating to sports by charitable entities registered
under section 12AA of the Income-tax Act are exempt from GST vide exemption notification.
5. 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.
6. It has been assumed that services provided to Kapola Pvt. Ltd. by Mr. Uttam Kumar are in the capacity of
being a director in the company.
7. It has been assumed that the turnover of Mr. Uttam Kumar in the previous year 2020-21 exceeded `
20,00,000.
8. It has been assumed that the matter for which the legal fees is paid to the senior advocate is in the course
or furtherance of business.
11. Koli Ltd. supplies machinery to Ghisa Ltd. (Dealer in same State), provides following particulars
regarding the same. Determine the value of taxable supply of machinery.
No. Particulars Amount

(`)
(i) Price of Machinery (exclusive of taxes and discounts) 5,50,000
(ii) One part is directly fitted in machinery at place of Ghisa Ltd. 20,000
(amount paid by Ghisa Ltd. directly to supplier, as per contract this amount
should be paid by Koli Ltd. and not included inprice)
(iii) Installation and testing charges for machinery, not included in price 25,000
(iv) Discount 2% on machinery price (recorded in the invoice)
(v) Koli Ltd. provides additional 1% discount at year end, based on additional purchase
of other machinery
Answer
Computation of taxable value of supply of machinery
S. No. Particulars Amount
(`)
(i) Price of machinery (exclusive of taxes and discounts) 5,50,000
(ii) Add: Amount paid by Ghisa Ltd. directly to the supplier for a part fitted in the 20,000
machinery[Note-1]
(iii) Add: Installation and testing charges [Note-2] 25,000
(iv) Less: Discount 2% on machinery price [` 5,50,000 x 2%] [Note-3] (11,0000)
(v) Less: Additional 1% discount at year end [Note-4] Nil

Notes:
As per Section 15 of CGST Act, 2017
1. Any amount that the supplier is liable to pay in relation to a 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 shall be
included in the value of supply.
2. 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 shall be included in the value of supply.
3. Since discount is given at the time of supply of machinery and recorded in the invoice, the value of the
supply shall not include such discount.
4. Though the additional discount is established before or at the time of supply, it shall not be excluded from
the value of supply on the assumption that the same is not linked to the relevant invoice and proportionate
ITC has not been reversed by Ghisa Ltd.
12. Jamku Ltd. a registered person is engaged in the business of spices. It provides following details for
GST paid during October, 20XX.
No. Particulars GST Paid

(`)
1. Raw spices purchase
50,000
 Raw spices used for furtherance of business
20,000
 Raw spices used for personal use of Directors
2. Electric machinery purchased to be used in the manufacturing process. 25,000
3. Motor vehicle used for transportation of the employee 55,000
4. Payment made for material and to contractor for construction of staff quarter. 1,25,000
Determine the amount of ITC available to Jamku Ltd. for the month October, 20XX with all related
workings and explanations.
All the conditions necessary for availing the ITC have been fulfilled.
Answer
Computation of ITC available with Jamku Ltd. for the month of October 20XX
Particulars GST paid

`
Purchase of raw spices for furtherance of business [Note-1] 50,000
Purchase of raw spices for personal use of directors [Note-2] Nil
Electric machinery purchased to be used in the manufacturing process [Note-1] 25,000
Motor vehicle used for transportation of employee [Note-3] Nil
Payment made for material and to contractor for construction of staff quarter [Note-4] Nil
Total ITC 75,000
Notes:-
1. Every registered person is entitled to take credit of input tax charged on any supply of goods to him which
are used or intended to be used in the course or furtherance of his business.
2. ITC is not available on goods used for personal consumption.
3. ITC on motor vehicles used for transportation of the employee is blocked credit.
4. ITC is not available on goods or services or both received by a taxable person for construction of an
immovable property (other than plant or machinery) on his own account including when such goods or
services or both are used in the course or furtherance of business.

13. Examine the liability of compulsory registration under Section 24 of the CGST Act, 2017, in each
independent cases mentioned below:
(a) Meenu, a supplier in Maharashtra, (PDF NOTES – 8527230445) is engaged in supply of potatoes
within Maharashtra and also outside Maharashtra, whose turnover exceeds threshold limit under
GST Law.
(b) Jinu Oils, Gujarat, is engaged in supplying machine oil as well as petrol. Total turnover of machine
oil is `35 lakh and of petrol is ` 15 lakh.
(c) Tilu is working as an agent, he is supplying goods as an agent of Tiku (who is registered taxable
person) and its aggregate turnover does not exceed ` 20 lakh during the financial year.
Answer
(a) Section 24 of the CGST Act provides that persons making any inter-State taxable supply of goods are
required to obtain registration compulsorily under GST laws irrespective of the quantum of aggregate
turnover.
However, an agriculturist, to the extent of supply of produce out of cultivation of land, is not liable to
registration.
Assuming that Meenu is engaged in cultivation and supply of potatoes, she is not liable to registration of
the fact that she is engaged in making inter-State supply and her turnover exceeds the threshold limit.
Note: Any person engaged exclusively in the business of supplying exempted goods is not liable to
registration. Since potatoes are exempted goods, Meenu is not liable to obtain registration irrespective of
the fact that she is engaged in making inter-State supply and her turnover exceeds the threshold limit.
(b) Section 24 of the CGST Act specifies the categories of persons who are required to be mandatorily
registered under GST irrespective of the quantum of their aggregate turnover.
In the given case, Jinu Oils does not fall in any of the specified categories. Therefore, it is not required to
obtain registration compulsorily under GST.
However, as per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated
07.03.2019, if the aggregate turnover of the person making exclusive intra - State taxable supplies of
goods in state Gujarat exceeds ` 40 lakhs in a financial year, is liable for registration.
Aggregate turnover includes exempted turnover of goods or services;
Accordingly, Jinu Oils is liable obtain registration on the basis of the turnover since its aggregate turnover
[` 50 lakh - including turnover of exempt supply of petrol] exceeds the threshold limit of ` 40 lakhs.
(c) Section 24 of the CGST Act provides that persons who make taxable supply of goods and/or services on
behalf of other taxable persons whether as an agent or otherwise are required to obtain registration
compulsorily under GST laws irrespective of the quantum of aggregate turnover.
Therefore, Tilu will be mandatorily required to obtain registration.
14. Jolla provides continuous supply of services regarding Annual Maintenance Contract (AMC) of Air
conditioner and all electronic items of Khotu Ltd. He provides following details regarding same:
They made contract for the AMC. As mentioned in contract, AMC will start from 01-10-2019 and will be
valid for a year. AMC ends on 30-09-2020. Jolla receives payment for the AMC on 31-10-2020.
Explain the time of issue of invoice in case of Continuous supply of Service (CSS) as per provisions
of CGST Act, 2017 and accordingly determine time of issue of invoice in following different
circumstances:
1. As mentioned in contract Khotu Ltd. have to make payment on 05-11-2020.
2. If terms of payment is not mentioned in AMC and also not agreed by both the parties.

Answer
In case of continuous supply of services
(i) Where due date of payment is ascertainable from the contract, the invoice shall be issued on or before
the due date of payment.
(ii) Where 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
(iii) Where payment is linked to the completion of an event, the invoice shall be issued on or before the date
of completion of that event.
In view of the aforesaid provisions, time of issue of invoice will be as follows in the given different
circumstances:
(a) If it is mentioned in contract that Khotu Ltd. has to make payment on 05.11.2020, the invoice shall be
issued on or before 05.11.2020.
(b) If terms of payment are not mentioned in AMC and are also not agreed by both the parties, the invoice
shall be issued on or before 31.10.2020.
Note: The question has been answered by considering the annual maintenance contract as continuous
supply of service. However, as per section 2(33) of the CGST Act, 2017 “continuous supply of services” inter
alia means a supply of services with periodic payment obligations.
15. Examine in relation to composition levy scheme u/s 10(1) under the CGST Act, 2017 and the rules
made there under in the following individual cases :
1. Ketu is a manufacturer of ice-cream and pan masala in State of Maharashtra. His turnover for the
year does not exceed ` 1.5 Crore. He wants to register for composition levy scheme. ls he eligible
for it ?
2. Jadhu of Gujarat opts for composition scheme during a financial year 2020-21. But on 10-02-2021
his turnover crosses ` 1.5 Crore, can he continue under composition levy scheme.
3. X Ltd. has 2 branches K & L in Delhi, having same PAN. Branch K opts for normal scheme. X Ltd.
want to continue composition levy in case of its branch L. Can X Ltd. continue composition levy
only for branch L?
Answer
1. A registered person who is engaged in manufacture of, inter alia, ice cream and pan masala, is not
eligible to opt for composition levy u/s 10(1) even if his aggregate turnover does not exceed ` 1.5 crore.
Therefore, in the given case, Ketu is not eligible to opt for composition levy.
2. The option to pay tax under composition levy availed of by a registered person lapses with effect from the
day on which his aggregate turnover during a financial year exceeds the threshold limit of ` 1.5 crore. He
needs to pay tax under normal scheme from that day.
Since in the given case, the turnover of Jadhu crosses ` 1.5 crore on 10.02.2021, he cannot continue
under composition scheme from that day.
3. Where person having the same Permanent Account Number, has more than one registration, the
registered person shall not be eligible to opt for composition scheme unless all such registered persons
opt to pay tax under composition scheme. In other words, all the registrations under the same PAN have
to opt for composition scheme.
In view of the same, in the given case, X Ltd. cannot continue with composition scheme only for branch L.

16. Please answer following individual independent cases with reference to section 37 of the CGST Act,
2017 and rule 59 of CGST Rules, 2017:
1. Mr. Kolly is registered supplier in the State of Gujarat. He is filing GSTR 1 every month. During the
month of February, 20XX he was out of India and so did not do any transaction during the month.
He believes that as there is no transaction there is no need to file GSTR 1 for the month of
February, 20XX. Is he correct?
2. Mr. Kaji is a registered dealer in Kerala. He was registered as a normal taxpayer for FY 2020-21.
But on 15-01-2021, he converted from normal tax payer to composition tax payer. Is he liable to file
GSTR-1 for the month of February, 2021?
Answer
1. No, Mr. Kolly is not correct.
GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period. Therefore, in
the given case, even though Mr. Kolly was out of India and thus had not done any transaction during
February 20XX, he is still required to file GSTR- 1 for the said month.
2. A person paying tax under composition scheme is not liable to furnish the details of outward supplies in
GSTR-1.
Further, in cases where a taxpayer has been converted from a normal taxpayer to composition taxpayer,
GSTR-1 is to be filed only for the period during which the taxpayer was registered as normal taxpayer.
Therefore, in the given case, Mr. Kaji is not liable to file GSTR-1 for February, 2021 since he had already
shifted to composition scheme on 15.01.2021.
Note:
Question specifies that Mr. Kaji has converted from normal taxpayer to composition tax payer on
15.01.2021. However, as per rule 4(1) of the CGST Rules, 2017, the option to pay tax under composition
scheme shall be effective from the beginning of the financial year, where the intimation is filed by any
registered person who opts to pay tax under section 10.
17. NEW & IMPORTANT Explain the meaning of consignment note in relation to Goods Transport Agency
and state its contents as per provisions of the CGST Act, 2017.
Answer
Consignment note means a document, issued by a Goods Transport Agency (GTA) against the receipt of
goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered.
The contents of consignment note are as follows:-

(a) gross weight of the consignment
(b) the name of the consignor and consignee (any one),
(c) registration number of the goods carriage in which the goods are transported,
(d) details of the goods transported,
(e) details of the place of origin and destination,
(f) GSTIN of the person liable for paying tax
(g) other information as prescribed for a tax invoice, under rule 46 of CGST Rules, 2017

18. Explain the services provided by way of tolerating non-performance of a contract and its chargeability
under the provisions of the CGST Act, 2017.
Answer
Non-performance of a contract is the failure to fulfill the obligations under a contract. It is generally one of the
conditions stipulated in any contract for supply of goods/services.
The agreement entered into between the parties stipulates that both the service provider and service recipient
abide by the terms and conditions of the contract. In case any of the parties breach the contract for any
reason including non-performance of the contract, then such person is liable to pay damages in the form of
fines or penalty to the other party.
Tolerating non-performance of a contract in lieu of damages or fines is a supply in terms of section 7 of the
CGST Act, 2017 as it is made for a consideration by a person in the course or furtherance of business.
Further, tolerating non-performance of a contract is treated as a supply of service in terms of section 7 read
with Schedule II of CGST Act, 2017.
However, in case of supplies to Government, non-performance of contract by the supplier of service for which
consideration in the form of fines or liquidated damages is payable is exempt from GST.
19. What are the E-ledgers? State the entries to be debited to electronic liability register under the CGST
Act, 2017 and the CGST Rules, 2017.
Answer
Electronic Ledgers or E-Ledgers, i.e., Electronic Cash Ledger and Electronic Credit Ledger, are statements
of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer shall also have
an electronic tax liability register.
The entries to be debited to electronic liability register under the CGST Act, 2017 and the CGST Rules, 2017
are as follows: -
(i) all amounts payable towards tax, interest, late fee and any other amount as per return filed;
(ii) all amounts payable towards tax, interest, penalty and any other amount determined in a proceeding by
an Assessing authority or as ascertained by the taxable person;
(iii) the amount of tax and interest payable due to mismatch;
(iv) any amount of interest that may accrue from time to time.

Class Notes

GST By CA Suraj Agrawal SATC H.1
GST - PRACTICE TEST PAPER - SET H
1. IMPORTANT - Mr. Thiraj, a registered supplier of service in Bangalore (Karnataka State) has provided
the following information for the month of April 20XX:
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 April 2019.
Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively.
All the amounts given above are exclusive of taxes.
Solution:
Computation of net GST liability by Mr. Thiraj for the month of April 20XX:
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, 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

2. 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 20XX:
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 20XX 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 20XX
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.
3. 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 20XX:
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
20XX 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 20XX
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.
4. 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.
5. 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.

6. 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 (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, Kapil & Co. is liable to pay GST under reverse
charge.
7. 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.
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.
8. 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 - 01-10-2020
(ii) Date of completion of providing CSS - 31-01-2021
(iii) Date of receipt of payment by Mr. Lakhan - 30-03-2021
Determine the time of issue of invoice as per provisions of CGST Act, 2017, in the following
circumstances:
(ii) If no due date for payment is agreed upon by both under the contract of CSS.
(iii) If payment is linked to the completion of service.
(iv) If M/s. TNB Limited has to make payment on 25-03-2021 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 30.03.2021 (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 31.01.2021 (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 25.03.2021 as per the contract between them, the invoice
should be issued on or before 25.03.2021.
9. 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 GSTR-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 GSTIN of a normal taxpayer.
10. 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 notified special category States).
f) Casual Taxable Persons making taxable supplies of specified handicraft goods up to an aggregate
turnover of ` 20 lakh (` 10 lakh in case of notified special category States) 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 notified special category States) 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 notified special category States) 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 notified special category States).
11. 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

(iv) Yes, Mr. Allan can get the validity of his registration extended. Registration can be extended further by a
period not exceeding 90 days.
12. 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 & Toilet Preparation Act
e) CVD
f) Special CVD
g) Central Sales Tax
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
13. 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.

14. Worldwide Pvt. Ltd. (a registered taxable person) having the gross receipt of ` 80 lakh in the previous
financial year provides the following information relating to their services for the month of July, 20XX.
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%.
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.]
[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
15. 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 2019-20 was ` 60 lakh.
Firm has submitted following information for the month of August, 2020:
(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, 2020:
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, 2020 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, 2020
S. Particulars CGST SGST IGST
No. (`) (`) (`)
(i) Professional services and services of ITR 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 Tirupati 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 IGST (as given in question) or as ` 1,800 - CGST and SGST each.
16. 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, 20XX. 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.
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, 20XX
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.
17. Mr. XYZ & Co., a firm of Chartered Accountants, issued invoice for services rendered to Mr. A on 7th
September, 20XX. Determine the time of supply in the following independent cases:
(1) The provision of service was completed on 1st August, 20XX.

(2) The provision of service was completed on 14th August, 20XX.
(3) Mr. A made the payment on 3rd August, 20XX where provision of service was remaining to be
completed.
(4) Mr. A made the payment on 15th September, 20XX 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. 01.08.20XX since the invoice is not issued within 30 days of supply of service.
2. 07.09.20XX since the invoice is issued within 30 days of supply of service.
3. 03.08.20XX viz. earlier of 07.09.20XX or 03.08.20XX
4. 07.09.20XX viz. earlier of 07.09.20XX or 15.09.20XX

18. 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, 20XX.
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, 20XX. The invoice for the
entire sale value is issued on 15th Dec, 20XX
3 Goods transport services received from GTA, GTA is 1,80,000
paying tax @ 12 % (It is an inter-State transaction.)
Compute net GST liability (CGST, SGST, IGST as the case may be) of M/s Maheshwari Corporation
Pvt. Ltd. for the month of Dec, 20XX 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 residential complex
[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, 20XX will also be taxed in
dec, 20XX]
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 can be used to pay CGST or SGST in any order as there
is no IGST liability.
19. 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, 20XX:
Sr. Particulars GST paid
No
(1) Raw Material (to be received in September, 20XX) 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, 20XX 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, 20XX
Particulars `
Raw Material Nil
[ITC not available as raw material is not received in July, 20XX]
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
20.
i. There is a dairy farm selling milk and milk products in Delhi. The turnover of his dairy farm is as
below
Milk (Exempted) : ` 39,90,000
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) As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a
supplier is liable to be registered in the State/Union territory from where he makes a taxable supply of
goods and/or services, if his aggregate turnover in a financial year exceeds the threshold limit.
The threshold limit for a person making exclusive intra - State taxable supplies of goods is as
under:-
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim,
Telangana and Uttarakhand.
(c) ` 40 lakh for rest of India.
However, the higher threshold limit of ` 40 lakh is not available to persons engaged in making supplies of
ice cream and other edible ice, whether or not containing cocoa, Pan masala and Tobacco and
manufactured tobacco substitutes.
Further, aggregate turnover, inter alia, means the aggregate value of all taxable supplies as well as
exempt supplies.
Here Supplier is exclusively in supply of goods & located in Delhi. Hence, threshold limit of ` 40,00,000 is
applicable.
Aggregate Turnover is
= ` 39,90,000 + ` 50,000
= ` 40,40,000
Since aggregate turnover of the dairy farm in Delhi exceeds ` 40 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.
21. 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 directly 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.
22. 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 threshold limits.
23. 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.
24. 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
25. 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.
26. Insight Ltd. is operating in West Bengal. The tax liability for the month of April, 20XX 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 April, 20XX.
Solution:
Computation of net tax payable and carry forward for the month of April, 20XX
Particulars IGST (`) CGST (`) SGST (`)

Output tax payable 3,000 24,000 9,000
Less: Input tax credit [Refer note below] (3,000)-IGST (9,000)-IGST
(7,000)-CGST
(14,000)-SGST
Net GST payable Nil 8,000 Nil
5000 – SGST Carry forward

Note:
1. ITC of IGST has been used to pay IGST first.
2. Balance IGST credit can be used to pay CGST or SGST in any order. Here it is beneficial to utilize
IGST credit against CGST liability as there is enough SGST Credit for payment of SGST Liability.
3. Further, ITC of SGST cannot be utilised towards payment of CGST.
27. 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 2020, 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, 2021. 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, 2021.
Period for which interest is due = 21st January, 2021 to 31st March, 2021 =71 days
Thus, interest liability = ` 2,00,000 x 24% x 71/365
=` 9,337 (approx.)

GST By CA Suraj Agrawal SATC I.1
GST - PRACTICE TEST PAPER - SET ‘I’
1. 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, 20XX:-
`
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, 20XX:-
`
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 20XX:-
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, 20XX
Solution:
Computation of net GST payable by Mr. Nimit for the month of August, 20XX
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% on ` 2,00,000 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.

2. [VALUE] - Shri Krishna Pvt. Ltd., a registered dealer, furnishes the following information relating to
goods sold by it to Shri Balram Pvt. Ltd. in the course of Intra State.
(i) Price of the goods 1,00,000
(ii) Municipal Tax 2,000
(iii) Inspection charges 15,000
(iv) Subsidies received from Shri Ram Trust 50,000
(As the products is going to be used by blind association)
(v) Late fees for delayed payment.
(Though Shri Balram Pvt. Ltd. made late payment but these 1,000
charges are waived by Shri Krishna Pvt. Ltd.)
(vi) Shri Balram Pvt. Ltd. paid to Radhe Pvt. Ltd. (on behalf of Shri 2,000
Krishna Pvt. Ltd.) weightment charges.
According to GST Law, determine the value of taxable supply made by Shri Krishna Pvt. Ltd. Items
given in Point (ii) to (vi) are not considered while arriving at the price of the goods given in point no.
(i).
Solution:
Computation of value of taxable supply made by Shri Krishna Pvt. Ltd.
Particulars `
Price of the goods 1,00,000
Municipal tax 2,000
[Includible in the value as per section 15 of the CGST Act, 2017]
Inspection charges 15,000
[Being incidental expenses, the same are includible in the value as per
section 15 of the CGST Act, 2017]
Subsidy received from Shri Ram Trust 50,000
[Since subsidy is received from a non-Government body, the same is
includible in the value in terms of section 15 of the CGST Act, 2017]
Late fees for delayed payment [Not includible since waived off] Nil
Weighment charges paid to Radhe Pvt. Ltd. by Shri Balram Pvt. Ltd. on 2,000
behalf of Shri Krishna Pvt. Ltd.
[Liability of the supplier being discharged by the recipient, is includible
in the value in terms of section 15 of the CGST Act, 2017]
3. M/s. Pradyumn Corporation Pvt. Ltd., a registered dealer of Mumbai furnishes you following
information for the month of February, 20XX.
Particulars Amount
(i) Intra state sale of Taxable goods (out of above ` 50,000 was received as advance
in January, 20XX) 2,00,000
(ii) 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
(iii) 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, 20XX.
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, 20XX
Particulars Value of Supply CGST SGST IGST
Intra State sale of taxable goods [Note-1] 2,00,000 18,000 18,000
Receipt for services rendered by way of labour

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

a non-taxable territory [Note-4] 50,000 9,000
Total GST liability for the month of Feb, 22,500 22,500 9,000
20XX
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 now not
taxable in the month of receipt]
2. 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.
3. 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.
4. IMP: 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.
5. On 4th September, 20XX, V.R. Mehman a famous music composer, received ` 3 crore of On 4th
September, 20XX, 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, 20XX & raised the invoice on 24th July, 20XX.
What will be the time of supply as per CGST Act, 2017?
Note: Above service is taxable under reverse charge basis.

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 (04.09.20XX), or
 Date immediately following 60 days since issue of invoice by the supplier (23.09.20XX)
Thus, time of supply of services is 04.09.20XX
6. 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 FY) 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 notified 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.
7. Bharat Associates Pvt. Ltd. purchased machinery worth ` 9,00,000 (excluding GST) on 20-07-2020 on
which it paid GST @ 18% and availed the ITC. On 05-03-2021, 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 8527230445):

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].
8. What is CIN?
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.
9. 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.
10. 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.

11. 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.
12. 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 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.
13. 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.
14. [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 20XX:
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 20XX:
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 20XX.
Solution:
Computation of net GST payable by Mr. Ajay for the month of August, 20XX
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.

15. [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 June 20XX:
Particulars GST paid (`)
(i) Purchase of cabs (seating capacity – 4 person) 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 June 20XX 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 June
20XX
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 the month [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 purchased 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 provided under statutory
obligation or 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.
16. [VALUE] – Manager is available at 8527230445 for any kind of PDF Notes - 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, 20XX.
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, 20XX.

Solution:
Computation of value of taxable supply made by Candy Blue Ltd. for the month of October, 20XX
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
17. 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.
18. [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 03-1-20XX

(ii) Invoice was issued on 05-1-20XX
(iii) Payment received on 09-1-20XX
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 03-1-20XX.

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 (03-1-20XX) or date of receipt of payment (09-1-20XX),
Thus, the time of supply of the goods will be 03-1-20XX.
19. [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.
20. [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 ` 138
Lakhs in the preceding financial year.
(i) Determine whether Sai Trading Company will be eligible for composition levy u/s 10(1), as on 1-4-
2020.
(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(1) of CGST Act, 2017 provides that a registered person, whose aggregate turnover in the
preceding financial year did not exceed ` 1.5 crore may opt for composition scheme. The turnover limit is
` 75 lakh in case of Special Category States. However, for Assam, HP & Jammu and Kashmir, the
turnover limit is ` 1.5 crore only.
In the given case, the applicable turnover limit for composition scheme will be ` 1.5 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 ` 1.5
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 ` 1.5 crore, Sai Trading Company will be eligible for composition levy with other condition
of not making inter-State supplies of goods being fulfilled.
21. [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, 20XX. It applies for registration on 19th September,
20XX and is granted registration certificate on 29th September, 20XX.
(ii) What will be your answer, if in the above scenario, Madhu Ltd. submits the application for
registration on 27th September, 20XX and is granted registration on 5th October, 20XX?

Solution:
A supplier of services whose aggregate turnover in a financial year exceeds ` 20 lakh in a State/UT [` 10
lakh in notified Special Category States] is liable to apply for registration within 30 days from the date of
becoming liable to registration (i.e., the date of crossing the threshold limit of ` 20 lakh/` 10 lakh).
Where the application is submitted within the said period, the effective date of registration is the date on which
the person becomes liable to registration; otherwise it is the date of grant of registration.
In the given case, the applicable turnover limit for registration will be ` 20 lakh as Punjab is not a
Special Category State.
(i) Since Madhu Ltd. applied for registration within 30 days of becoming liable to registration, the effective
date of registration is 25th August, 20XX.
(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, 20XX .
22. [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.
23. [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.
24. [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.
25. [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
26. [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.

GST By CA Suraj Agrawal SATC J.1
GST - PRACTICE TEST PAPER - SET ‘J’
1. 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/-
2. 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)
3. Services by way of admission to ................ are exempt from GST.

(a) Museum
(b) National park
(c) Tiger reserve
(d) All of the above
4. 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
5. 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.

6. 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)
7. 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
8. Transport of .............. by rail are exempt from GST:

(a) Milk
(b) Salt
(c) Defence equipments
9. 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
10. Taxes subsumed in GST are

(a) Service tax
(b) Luxury tax
(c) VAT
(d) All of the Above
11. 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
Particulars Amount (` )
Total value of procurement of IT engineering service 11,00,000
Add: Total GST on the above value @ 18% [CGST + SGST] 1,98,000
Value including GST 12,98,000
Amount paid for the said service including GST [` 4,13,000 + ` 2,95,000] 7,08,000
Amount [value alongwith tax payable thereon] not paid for the said service 5,90,000
ITC to be reversed [` 5,90,000 x 18/118] 90,000
12. 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.

13. 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.
14. 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.
15. 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.

16. M/s Salty & Spicy Limited reduced the amount of ` 1,50,000 from the output tax liability in
contravention of provisions of Section 42(10) of the CGST Act, 2017 for the month of April 20XX,
which is ineligible credit. A show cause notice was issued by the Tax Department to pay tax along
with interest. M/s Salty & Spicy Limited paid the tax and interest on 31 st July, 20XX. Calculate Interest
liability (Ignore Penalty).
Solution:
A taxable person who makes an undue or excess claim of input tax credit shall pay interest @ 24%
p.a. on such undue or excess claim in terms of section 50 of CGST Act, 2017. The period of interest
will be from the date following the due date of payment to the actual date of payment of tax.
Due date of payment is 20th May, 20XX.
Period for which interest is due = 21st May, 20XX to 31st July, 20XX =72 days
Thus, interest liability = ` 1,50,000 x 24% x 72/365
=` 7,101 (approx.)
17. 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.
18. 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.

GST By CA Suraj Agrawal SATC K.1
GST - PRACTICE TEST PAPER - SET ‘K’
1. A person having ____Place of business in a State ____obtain a separate registration for each place of
business
a) Single, shall
b) Multiple, shall
c) Multiple, may
d) Single, may
2. Mr. Rahu is receiving legal services from a lawyer Mr. Ketu. The information regarding date of
payment, invoice etc. is as follows-
1. Invoice issued by Mr. Ketu on 15-Apr-20XX
2. Payment received by Mr. Ketu on 5-May-20XX
3. Date of payment entered in books of accounts of Rahu: 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
3. Services by way of warehousing of _____is exempt from GST.

i. processed tea
ii. jiggery
iii. processed coffee
iv. rice
a. (i) & (ii)
b) (iii)
c) (iv)
d) all of the above
4. 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
d) all of the above
5. Which of the following services are 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.
6. 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
7. Registration certificate granted to casual taxable person or non-resident taxable person will be valid
for:
a) Period specified in the registration application
c) Earlier of (a) or (b)
d) Later of (a) or (b)
8. 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).
9. 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
d) None of the above
10. 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
d. None of the above

11. Sungrow 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,
20XX.
S.no. Particulars Amount

1 Running a boarding school 2,40,000
3 Education services for obtaining the qualification recognised by law of 3,10,000
foreign country
4 Renting of furnished flats for temporary stay to different persons (Rent 1,20,000
per day is less than ` 1,000 per flat)
5 Conducting Modular Employable Skill Course, approved by National 1,40,000
Council of Vocational Training
6 Conducting private tuitions amount 3,00,000
7 Running martial arts academy for young children 55,000
8 Conducting career counselling session 1,65,000
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%.
Solution:
Computation of value of taxable supply and amount of GST payable
S. No. Particulars Amount

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 [Not exempt.] 1,70,000
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 [Services by NIL
a hotel, inn, guest house, club or campsite, by whatever name called, for
residential or lodging purposes, having Value of Supply of a unit of
accommodation below `. 1,000 per day or equivalent are exempt]
5 Conducting Modular Employable Skill Course [An institution providing NIL
Modular 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
7 Running martial arts academy for young children [Not exempt under GST 55,000
laws]
8 Conducting career counselling session [Not exempt under GST laws 1,65,000
GST payable @ 18% 1,80,000
12. Laxmi 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 April 20XX:
S.No. Particulars Amount

1 Raw Material (to be received in May, 20XX) 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 during 80,000
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 GST 150000
paid on that item is ` 80,000)
6 Confectionery items for consumption of employees working in the 75000
factory. These items were supplied free of cost to the employees in lieu
of services rendered by them to the manufacturer in the course of
employment.
Determine the amount of tax credit available with Laxmi Pvt. Ltd. for the month of April 20XX 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 Laxmi Pvt. Ltd. for the month of April 20XX
S. No Particulars Amount
1 Raw Material NIL
[ITC not available as raw material is not received in April, 20XX]
2 Membership of a club availed for employees working in the factory [Blocked NIL
credit in terms of section 17(5) of the CGST Act, 2017]
3 Inputs to be received in 5 lots, out of which 3rd lot was received during the NIL
month
[In case of goods received in lots, ITC can be taken only upon receipt of the
last lot]
4 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]
5 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]
6 Confectionery items for consumption of employees working in the factory NIL
[ITC on food or beverages is specifically disallowed unless the same is
provided under statutory obligation or used for making outward taxable supply
of the same category or as an element of the taxable composite or mixed
supply-Section 17(5)(b)(i)]
13. Mr. Guneet is running a consulting firm and also a readymade garment showroom in Kolkata
registered in same PAN. Turnover of the showroom is ` 120 lakh and receipt of consultancy firm is
` 15 lakh in the preceding financial year.
You are required to answer the following: (1) Is Mr. Guneet eligible for composition scheme under
Section 10(1)? (2) Is it possible for Mr. Guneet to opt for composition scheme only for showroom?
Solution:
Section 10(1) of the CGST Act, 2017 provides that a registered person, whose aggregate turnover in the
preceding financial year did not exceed ` 1.5 crore (` 75 lakh in Special Category States except Assam,
Himachal Pradesh and Jammu and Kashmir), may opt to pay, in lieu of the tax payable by him, an amount
calculated at the specified rates.
However, if, inter alia, such registered person is engaged in the supply of services other than restaurant
services, he shall not be eligible to opt for composition levy.
Further, w.e.f 01/04/2019, the scheme permits supply of other marginal services for a specified value
along with the supply of goods and restaurant service, as the case may be. Such marginal services
can be supplied for a value up to 10% of the turnover in the preceding year or ` 5 lakh, whichever is
higher.
(1) Aggregate turnover in preceding financial year is ` 1.35 crores which does not exceeds ` 1.5 crores. Mr.
guneet is eligible for composition scheme u/s 10(1) in current financial year provided Value of consultancy
services does not exceeds 10% of the turnover in the preceding year or ` 5 lakh, whichever is higher.
(2) No, it is not possible for Mr. Guneet to opt for composition scheme only for showroom as all the
registrations under the same PAN have to opt for composition scheme.

14. The aggregate turnover of Priyank Services Ltd. exceeded ` 20 lakh on 12th August. He applied for
registration on 3rd September and was granted the registration certificate on 6th September. You are
required to advice Priyank Services Ltd. 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:
As per section 25 read with CGST Rules, 2017, 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. Since, Priyank Services Ltd.’s turnover exceeded ` 20 lakh on 12th August, it
became liable to registration on same day.
Further, it applied for registration within 30 days of so becoming liable to registration, the effective date of
registration is the date on which he becomes liable to registration, i.e. 12th August.
As per section 31 read with CGST Rules, 2017, every registered person who has been granted registration
with effect from a date earlier than the date of issuance of certificate of registration to him, may issue Revised
Tax Invoices. Revised Tax Invoices shall be issued within 1 month from the date of issuance of certificate of
registration. Revised Tax Invoices shall be issued within 1 month from the date of issuance of registration in
respect of taxable supplies effected during the period starting from the effective date of registration till the
date of issuance of certificate of registration.
Therefore, in the given case, Priyank Services Ltd. has to issue the Revised Tax Invoices in respect of
taxable supplies effected during the period starting from the effective date of registration (12th August) till the
date of issuance of certificate of registration (6th September) within 1 month from the date of issuance of
certificate of registration, i.e. on or before 6th October.
15. 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. Transfer of title in goods under an agreement which stipulates that property shall pass at a
future date.
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, transfer of title in goods under an agreement which stipulates
that property shall pass at a future date would be treated as supply of goods.

Class Notes

GST By CA Suraj Agrawal SATC L.1
GST - PRACTICE TEST PAPER - SET ‘L’
1. 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.
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.
2. 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 April, 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 April, 20XX assuming that all the other conditions for availing ITC, wherever applicable,
have been fulfilled.
Solution:
Computation of ITC available with Ramoplast Soap Factory
Soap making machine
[ITC in respect of goods used in course/furtherance of business is available in
terms of Section 16 of the CGST Act] 50,000
Motor vehicles for transportation of inputs

[ITC in respect of motor vehicles when used, inter alia, for transportation of goods, is
not blocked 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
3. 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
4. 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].
5. IMP: 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)
6. 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.
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.
7. Explain the term ‘aggregate turnover’.
Solution:
Aggregate turnover includes the aggregate value of:
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].
8. 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].

9. What is an electronic cash ledger? Enumerate the modes of making deposit in the electronic cash
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]
10. 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 year, 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 year even if no supplies have been effected during such period. In other words, filing of Nil
return is also mandatory.
11. Discuss any two significant benefits of GST.
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.

Class Notes

GST By CA Suraj Agrawal SATC M.1
GST - PRACTICE TEST PAPER - SET ‘M’
1. “State Government has exclusive power to notify a transaction to be supply of goods or services.”
Discuss the correctness of the statement.
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
2. 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, if notified.
3. Mr. X availing composition scheme u/s 10(1) during a financial year crosses the turnover of ` 1.5
crore during the course of the year i.e. say he crosses the turnover of ` 1.5 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 ` 1.5 Crore vide section 10(3) of CGST Act, 2017.
4. 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.
5. 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
6. 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
7. [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 separate registration for each place of business

8. [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. 02.02.20XX. Further, Mr. P is required to make payment on or before 20th
of March, 20XX
9. 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
10. 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.
11. 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 Section 13 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
12. 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.

Class Notes

GST By CA Suraj Agrawal SATC N.1
GST - PRACTICE TEST PAPER - SET ‘N’
1. Pethalal has obtained registration in the current financial year in Uttar Pradesh. His turnover in the
preceding financial year was ` 19,90,000. He has received the following amounts in respect of the
activities undertaken by him in the month of September:
S. No. Particulars Amount (`)

(i) Funeral services 8,80,000
(ii) Services of warehousing of jaggery 50,000
(iii) Electrically operated buses given on hire to Municipal Corporation 5,00,000
(iv) Service provided to recognized sports body as commentator 2,00,000
(v) Commission received as an insurance agent from insurance company 65,000
(vi) Commission received as business facilitator for the services provided to the 15,000
urban branch of a nationalized bank with respect to savings bank accounts
(vii) Security services (supply of security personnel) provided to Damodar 28,000
Engineering College (DEC)* [registered under GST] for the security of the
college premises
*All the engineering courses run by DEC are recognised by the law [The All
India Council for Technical Education (AICTE)]
Further, he has received following services in the month of September:
S. No. Particulars Amount (`)

(a) Freight paid to unregistered goods transport agency for his business 1,00,000
activities relating to serial number (i) above
(b) Legal advice received from M/s Kanoon Associates, a partnership firm, 50,000
seeking advice in relation to a tax dispute of the business
All the transactions stated above are intra-State transactions and amounts given are exclusive of
GST, wherever applicable.
You are required to calculate net GST payable by Pethalal for the month of September. There was no
opening balance of input tax credit. Rate of CGST and SGST is 9% each for all the outward supplies
made by Pethalal.
Solution:
Computation of net GST payable by Pethalal
Particulars Amount CGST (`) SGST

(`) (`)
Supplies on which Pethalal is liable to pay GST under
forward charge
Funeral services [Note 1] 8,80,000
Services of warehousing of jaggery [Note 2] 50,000
Services by way of giving on hire electrically operated buses to 5,00,000
Municipality [Note 3]
Service provided to recognized sports body as commentator 2,00,000 = 2,00,000 = 2,00,000
[Note 4] × 9% × 9%
= 18,000 = 18,000
Commission received as an insurance agent from insurance 65,000

company [Note 5]
Commission received as business facilitator for the services 15,000
provided to the urban branch of a nationalised bank with
respect to savings bank accounts [Note 6]

Security services (supply of security personnel) provided to
DEC for the security of the college premises [Note 7] 28,000
Total tax liability on outward supplies (A) 18,000 18,000
Supplies on which Pethalal is liable to pay
GST under reverse charge
Services received from GTA [Note 8] 1,00,000 = 1,00,000 = 1,00,000
× 2.5% × 2.5%
= 2,500 = 2,500
Legal services received [Note 9] 50,000
Total tax liability on inward supplies under reverse charge 2,500 2,500
(B) - payable in cash [Note 10]
ITC available on input services [Note 8] Nil Nil
Net GST payable (A) + (B) 20,500 20,500
Notes:
(1) Funeral services being covered in entry 4 of Schedule III to the CGST Act, 2017 are not a supply and
thus, are outside the ambit of GST.
(2) Services by way of storage/ warehousing of, inter alia, jaggery are exempt from GST vide Exemption
Notification No. 12/2017 CT(R) dated 28.06.2017 (hereinafter referred to as exemption notification).
Thus, services of warehousing of jaggery are exempt.
(3) Services by way of giving on hire to a local authority, an Electrically operated vehicle (EOV) meant to
carry more than 12 passengers are exempt vide exemption notification. Buses are EOVs meant to carry
more than 12 passengers. Hence, services of giving electrically operated buses on hire to Municipal
Corporation are exempt from GST.
(4) Services provided to a recognized sports body by an individual only 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 vide exemption notification. Thus, service provided as commentator is liable to GST.
Though commission for providing insurance agent’s services to any person carrying on insurance
business is liable to GST, the tax payable thereon is to be paid by the recipient of service i.e.,
insurance company, under reverse charge in terms of Notification No. 13/2017 CT(R) dated 28.06.2017
(hereinafter referred to as reverse charge notification). Thus, Pethalal will not be liable to pay GST on
such commission.
(5) Services provided by a business facilitator to a banking company with respect to accounts in its rural
area branch are exempt from GST vide exemption notification. Thus, services provided by him in
respect of urban area branch of the bank will be taxable. However, the tax payable thereon is to be paid
by the recipient of service i.e., banking company, under reverse charge in terms of reverse charge
notification. Hence, Pethalal will not liable to pay GST on commission received for said services.
(6) Services provided to an educational institution, by way of security services performed in such
educational institution are exempt from GST only when said services are provided to an institution
providing services by way of pre-school education and education up to higher secondary school or
equivalent, vide exemption notification. Thus, in the given case, security services provided to DEC are
not exempt.
Further, the tax on security services (supply of security personnel) provided by any person other than a
body corporate to a registered person is payable by the recipient of service under reverse charge in
terms of reverse charge notification. Hence, Pethalal will not be liable to pay GST in the given case.

(7) GST on services provided by a GTA (not paying tax @ 12%) to, inter alia, a registered person is
payable by the recipient of service i.e., the registered person, under reverse charge in terms of reverse
charge notification. Since in the given case, GTA is unregistered, Pethalal is liable to pay tax under
reverse charge @ 5% (CGST @ 2.5% and SGST @ 2.5%). Further, since said input services are being
exclusively used for effecting non-taxable supplies [funeral services], input tax credit of the GST paid
on the same will not be available.
(8) Legal services provided by a partnership firm of advocates to a business entity (with an aggregate
turnover up to such amount in the preceding FY as makes it eligible for exemption from registration
under the CGST Act, 2017) are exempt from GST vide exemption notification. Since the aggregate
turnover of Pethalal did not exceed ` 20 lakh [the applicable threshold limit for registration for Pethalal
being a supplier of services] in the preceding FY, legal services received by him are exempt from GST.
(9) As per section 49(4) of the CGST Act, 2017, 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 in terms of section 2(82) of the CGST Act, 2017. Therefore, tax payable under reverse
(10) Since all the transactions given hereunder are intra-State, CGST and SGST are payable in terms of
section 9(1) of the CGST Act, 2017
2. Dushyant rents out a commercial building owned by him to Bharat for the month of December, for
which he charges a rent of ` 19,50,000. Dushyant pays the maintenance charges of ` 1,00,000 (for
the December month) as charged by the local society. These charges have been reimbursed to him
by Bharat. Further, Bharat had given ` 2,50,000 to Dushyant as interest free refundable security
deposit. Further, Dushyant has paid the municipal taxes of ` 2,85,000 which he has not charged
from Bharat. You are required to determine the value of supply and the GST liability of Dushyant for
the month of December assuming CGST and SGST rates to be 9% each.
Note: All the amounts given above are exclusive of GST.
Solution:
Computation of the value of supply and the GST liability of Dushyant for the month of December

Rent of the commercial buiding 19,50,000
Maintenance charges paid to the local society, reimbursed by Bharat [Being reimbursed 1,00,000
by the tenant - Bharat, such charges ultimately form part of the rent paid by Bharat to
Dushyant and thus, will form part of
the value]
Interest free refundable security deposit Nil
[Being refundable, the security deposit does not constitute consideration in terms of
section 2(31) of the CGST Act, 2017 and thus, is not includible in the value]
Municipal taxes paid by Dushyant Nil
[Being an expenditure incurred by the supplier, the same is not includible in the value
since such taxes are not charged to the recipient.]
Value of supply 20,50,000
CGST @ 9% 1,84,500
SGST @ 9% 1,84,500

3. VERY IMPORTANT Examine whether the suppliers are eligible for composition scheme under Section
10(1) in the following independent cases. Is there any other option available for concessional tax
payment with any of these suppliers, wherever composition scheme under Section 10(1) cannot be
availed?
(a) M/s Devlok, a registered dealer, is dealing in intra-State trading of electronic appliances in Jaipur
(Rajasthan). It has turnover of ` 130 lakh in the preceding financial year. In the current financial
year, it has also started providing repairing services of electronic appliances.
(b) M/s Narayan & Sons, a registered dealer, is running a “Khana Khazana” Restaurant near City
Palace in Jaipur. It has turnover of ` 140 lakh in the preceding financial year. In the current
financial year, it has also started dealing in intra -State trading of beverages in Jaipur (Rajasthan).
(c) M/s Indra & bro, a registered dealer, is providing restaurant services in Uttarakhand. It has
turnover of ` 70 lakh in the preceding financial year. It has started providing intra-State interior
designing services in the current financial year and discontinued rendering restaurant services.
(d) M/s Him Naresh, a registered dealer, is exclusively providing intra -state architect services in
Uttarakhand. It has turnover of ` 40 lakh in the preceding financial year.
Solution:
As per section 10(1) of the CGST Act, 2017, the following registered persons, whose aggregate turnover in
the preceding financial year did not exceed ` 1.5 crore, may opt to pay tax under composition levy.
(a) Manufacturer,
(b) Persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II (restaurant
services), and
(c) Any other supplier eligible for composition levy.
Thus, essentially, the composition scheme can be availed in respect of goods and only one service namely,
restaurant service. However, the scheme permits supply of other marginal services for a specified value along
with the supply of goods and restaurant service, as the case may be. Such marginal services can be supplied
for a value up to 10% of the turnover in the preceding year or ` 5 lakh, whichever is higher.
Further, the registered person should not be engaged in making any inter-State outward supplies of goods.
Furthermore, w.e.f. 01/01/2020; an option of availing benefit of composition tax under Section 10(2A) has
been provided to a registered person whose aggregate turnover in the preceding financial year is upto ` 50
lakh and who is not eligible to pay tax under composition scheme under Section 10(1). Said person can pay
tax maximum @ 3% [Effective rate 6% (CGST+ SGST/UTGST)] on first supplies of goods and/or services up
to an aggregate turnover of ` 50 lakh made on/after 1st April in any financial year (FY), subject to specified
conditions provided in Section 10(2A). One of such condition is that the registered person should not be
engaged in making any inter-state outward taxable supplies.
In view of the above-mentioned provisions, the answer to the given independent cases is as under:-
(a) The turnover limit for composition scheme under Section 10(1) in case of Jaipur (Rajasthan) is ` 1.5
crore. Thus, M/s Devlok can opt for composition scheme under Section 10(1) as its aggregate turnover is
less than ` 1.5 crore. Further, since the registered person opting for composition scheme can also supply
services (other than restaurant services) for a value up to 10% of the turnover in the preceding year or ` 5
lakh, whichever is higher, in the current financial year, M/s Devlok can supply repair services up to a value
of ` 13 lakh [10% of ` 130 lakh or ` 5 lakh, whichever is higher] in the current financial year.
(b) In the given case:-

(i) the turnover in the preceding year is less than the eligible turnover limit, i.e.` 1.5 crore.
(ii) the supplier is engaged in providing restaurant service which is an eligible supply under composition
scheme under Section 10(1) .
(iii) the supplier wants to engage in trading of goods which is also an eligible supply under composition
scheme.
Thus, M/s Narayan & Sons is eligible for composition scheme under Section 10(1).
(c) The turnover limit for composition scheme under Section 10(1) in case of Uttarakhand is ` 75 lakh.
Further, a registered person who is exclusively engaged in supplying services other than restaurant
services are not eligible for composition scheme under Section 10(1). Thus, M/s Indra & bro cannot opt
for composition scheme under Section 10(1).
Further, the benefit of composition tax payment under composition scheme under Section 10(2A) is
available in case of a registered person whose aggregate turnover in the preceding financial year does
not exceed ` 50 lakh.
Thus, in view of the above- mentioned provisions, M/s Indra & bro cannot avail the benefit of composition
tax payment as its aggregate turnover in the preceding financial year is more than ` 50 lakh.
(d) An exclusive service provider can opt for the composition scheme under Section 10(1) only if he is
engaged in supply of restaurant services. The composition scheme permits supply of marginal services
for a specified value, but only when the same are supplied along with goods and/or restaurant service.
Since M/s Him Naresh is exclusively engaged in supply of services other than restaurant services, it is not
eligible for composition scheme under Section 10(1) even though its turnover in the preceding year is
less than ` 75 lakh, the eligible turnover limit for Uttarakhand.
However, since M/s Him Naresh is not eligible to opt for composition scheme under Section 10(1), its
aggregate turnover in the preceding financial year does not exceed ` 50 lakh and it is exclusively
engaged in supply of services other than restaurant services, M/s Him Naresh is entitled to avail
composition scheme under Section 10(2A).
4. VERY IMPORTANT LMN Pvt. Ltd., Coimbatore exclusively manufactures and sells product ‘X’ which
is exempt from GST vide notifications issued under relevant GST legislations. The company sells ‘X’
only within Tamil Nadu. The turnover of the company in the previous year was ` 45 lakh. The
company expects the sales to grow by 30% in the current year.
The company purchased additional machinery for manufacturing ‘X’ on 01.07.20XX. The purchase
price of the capital goods was ` 30 lakh exclusive of GST @ 18%.
However, effective from 01.11.20XX, exemption available on ‘X’ was withdrawn by the Central
Government and GST @ 12% was imposed thereon. The turnover of the company for the half year
ended on 30.09.20XX was ` 45 lakh.
(a) Examine the above scenario and advise LMN Pvt Ltd. whether it needs to get registered under
GST.
(b) If the answer to the above question is in affirmative, advise LMN Pvt. Ltd. whether it can avail
input tax credit on the additional machinery purchased exclusively for manufacturing “X”?
Solution:
(a) Section 22(1) of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019 inter alia
provides that every supplier who is engaged in intra-State exclusive supply of goods is liable to be
registered under GST in the State/ Union territory from where he makes the taxable supply of goods only
when aggregate turnover in a financial year exceeds ` 40,00,000.
However, the above provisions are not applicable to few specified States, i.e. States of Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura,
Uttarakhand.
Further, a person exclusively engaged in the business of supplying goods and/or services that are not
liable to tax or are wholly exempt from tax is not liable to registration in terms of section 23(1)(a) of CGST
Act, 2017.
In the given case, the turnover of the company for the half year ended on 30.09.20XX is ` 45 lakh which is
more than the applicable threshold limit of ` 40 lakh. Therefore, as per above mentioned provisions, the
company should be liable to registration. However, since LMN Pvt. Ltd. supplied exempted goods till
31.10.20XX, it was not required to be registered till that day; though voluntary registration was allowed
under section 25(3) of the CGST Act, 2017.
However, the position will change from 01.11.20XX as the supply of goods become taxable from that day
and the turnover of company is above ` 40 lakh. It is important to note here that in terms of section 2(6) of
the CGST Act, 2017, the aggregate turnover limit of ` 40 lakh includes exempt turnover also.

Therefore, turnover of ‘X’ will be considered for determining the limit of ` 40 lakh even though the same
was exempt from GST. Therefore, the company needs to register within 30 days from 01.11.20XX (the
date on which it becomes liable to registration) in terms of section 25(1) of the CGST Act, 2017.
(b) Section 18(1)(a) of the CGST Act, 2017 provides that a person who has applied for registration within 30
days from the date on which he becomes liable to registration and has been granted such registration
shall be entitled to take credit of i nput tax in respect of inputs held in stock and inputs contained in semi -
finished or finished goods held in stock on the day immediately preceding the date from which he
becomes liable to pay tax under the provisions of this Act.
Thus, LMN Pvt. Ltd. cannot avail credit for additional machinery purchased exclusively for manufacturing
X as input tax credit of only inputs is allowed when a person gets registered for the first time.
5. VERY IMPORTANT Mahadev Enterprises, a sole proprietorship firm, opened a shopping complex
dealing in supply of goods at multiple locations, i.e. in Himachal Pradesh, Uttarakhand and Tripura in
the month of June.
It has furnished the following details relating to the sale made at such multiple locations for the month
of June:-
(`)*
Particulars Himachal Uttarakhand Tripura
Pradesh
Intra- State sale of taxable goods 22,50,000 - 7,00,000
Intra-State sale of exempted goods - - 6,00,000
Interest received from banks on the fixed deposits - - 60,000
Intra-State sale of non-taxable goods - 21,00,000 40,000
* excluding GST
With the help of the above mentioned information, answer the following questions giving reasons:-
1. Determine whether Mahadev Enterprises is liable to be registered under GST law and what is the
threshold limit of taking registration in this case .
2. Explain with reasons whether your answer in (1) will change in the following independent cases:
(a) If Mahadev Enterprises is dealing in taxable supply of goods only from Himachal Pradesh;
(b) If Mahadev Enterprises is dealing in taxable supply of goods and services only from Himachal
Pradesh;
(c) If Mahadev Enterprises is dealing in taxable supply of goods only from Himachal Pradesh and
has also effected inter - State supplies of taxable goods amounting to ` 4,00,000.
Solution:
As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier
is liable to be registered in the State/Union territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for a
person making exclusive intra-State taxable supplies of goods is as under:-
(i) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(ii) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, T elangana and
Uttarakhand.
(iii) ` 40 lakh for rest of India.
The threshold limit for a person making exclusive taxable supply of services or supply of both goods
and services is as under:-
(i) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(ii) ` 20 lakh for the rest of India.

As per section 2(6) of the CGST Act, 2017, aggregate turnover includes the aggregate value of:

The above is computed on all India basis.
In the light of the afore-mentioned provisions, the aggregate turnover of Mahadev Enterprises is computed as
under:
Computation of State-wise aggregate turnover of Mahadev Enterprises

(`)*
Particulars Himachal Uttarakhand Tripura
Pradesh
Intra- State sale of taxable goods 22,50,000 - 7,00,000
Intra-State sale of exempted goods - - 6,00,000
Interest received from banks on the fixed deposits [Note-1] - - 60,000
Intra-State sale of non-taxable goods [Note-2] - 21,00,000 40,000
Aggregate Turnover 22,50,000 21,00,000 14,00,000
Notes:
1. Services by way of extending deposits, loans or advances in so far as the consideration is represented by
way of interest or discount (other than interest involved in credit card services) is exempt vide Notification
No. 12/2017 CT (R) dated 28.06.2017. Since aggregate turnover includes exempt supply, interest
received from banks on the fixed deposits, being exempt supply, is included in the aggregate turnover.
2. As per section 2(47) of the CGST Act, 2017, exempt supply includes non -taxable supply. Thus, intra -
State supply of non-taxable goods in Uttarakhand, being a non-taxable supply, is an exempt supply and
is, therefore, included in the aggregate turnover.
In the given case, Mahadev Enterprises is engaged in exclusive intra -State supply of goods from
Himachal Pradesh and Uttarakhand and in supply of both goods and exempted services from Tripura, the
threshold limit for registration will be ` 40 lakh, ` 20 lakh and ` 10 lakh respectively.
Further, since Mahadev Enterprises also makes taxable supply of goods from one of the specified
Special Category States (i.e. Tripura), the threshold limit for registration will be reduced to ` 10
lakh.
(1) Thus, in view of the above-mentioned provisions, Mahadev Enterprises is liable to be registered
under GST law with the aggregate turnover amounting to ` 57,50,000 (computed on all India basis).
The applicable threshold limit of registration in this case is ` 10 lakh.
(2) (a) If Mahadev Enterprises is dealing in supply of goods only from Himachal Pradesh, the applicable
threshold limit of registration would be ` 40 lakh. Thus, Mahadev Enterprises will not be liable for
registration as its aggregate turnover would be ` 22,50,000.
(a) If Mahadev Enterprises is dealing in taxable supply of goods and services only from Himachal
Pradesh then higher threshold limit of ` 40 lakh will not be applicable as the same applies only in
case of exclusive supply of goods. Therefore, in this case, the applicable threshold limit will be `
20 lakh and hence, Mahadev Enterprises will be liable to registration.
(b) In case of inter-State supplies of taxable goods, section 24 of the CGST Act, 2017 requires
compulsory registration irrespective of the quantum of aggregate turnover. Thus, Mahadev
Enterprises will be liable to registration.

6. “Diligent Force” a professional training institute gets its training material of “Aptitute Quotient”
printed from “Durga printing House” a printing press. The content of the material is provided by the
Diligent Force who owns the usage rights of the same while the physical inputs including paper used
for printing belong to the Durga Printing House.
Ascertain whether supply of training material by the Durga Printing House constitutes supply of
goods or supply of services.
Solution:
Circular No. 11/11/2017 GST dated 20.10.2017 has clarified that supply of books printed with contents
supplied by the recipient of such printed goods, is composite supply and the question, whether such supplies
constitute supply of goods or services would be determined on the basis of what constitutes the principal
supply.
Principal supply has been defined in section 2(90) of the CGST Act as supply of goods or services which
constitutes the predominant element of a composite supply and to which any other supply forming part of that
composite supply is ancillary.
In the case of printing of books where content is supplied by the publisher or the person who owns the usage
rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer,
supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore,
such supplies would constitute supply of service.
Thus, in view of the above-mentioned provisions, the supply of training material by the Durga Printing House
would constitute supply of services.
7. With reference to the provisions of section 17 of the CGST Act, 2017, examine the availability of input
tax credit under the CGST Act, 2017 in the following independent cases:-
(i) MBF Ltd., an automobile company, has availed works contract service for construction of a
foundation on which a machinery (to be used in the production process) is to be mounted
permanently.
(ii) Shah & Constructions procured cement, paint, iron rods and services of architects and interior
designers for construction of a commercial complex for one of its clients.
(iii) ABC Ltd. availed maintenance & repair services from “Jaggi Motors” for a truck used for
transporting its finished goods.
Solution:
(i) Section 17(5)(c) of the CGST Act, 2017 blocks input tax credit in respect of works contract services when
supplied for construction of an immovable property (other than plant and machinery) except where it is an
input service for further supply of works contract service.
Further, the term “plant and machinery” means apparatus, equipment and machinery fixed to earth by
foundation or structural support that are used for making outward supply of goods and/or services and
includes such foundation or structural support but excludes land, building or other civil structures,
telecommunication towers, and pipelines laid outside the factory premises.
(ii) Thus, in view of the above-mentioned provisions, ITC is available in respect of works contract service
availed by MBF Ltd. as the same is used for construction of plant and machinery which is not blocked
under section 17(5)(c) of the CGST Act, 2017.
Section 17(5)(d) of the CGST Act, 2017 blocks ITC on goods and/or services received by a taxable
person for construction of an immovable property (other than plant and machinery) on his own account
even though such goods and/or services are used in the course or furtherance of business. Thus, ITC on
goods and/or services used in the construction of an immovable property is blocked only in those cases
where the taxable person constructs the immovable property for his own use even if the immovable
property being constructed is used in the course or furtherance of his business.
In the given case, taxable person has used the goods and services for construction of immovable property
for some other person and not on its own account. Hence, ITC in this case will be allowed.
(iii) As per section 17(5) of the CGST Act, 2017, ITC is allowed on repair and maintenance services relating
to motor vehicles, which are eligible for input tax credit. Further, as per section 17(5)(a) ITC is allowed on
motor vehicles which are used for transportation of goods.
Thus, ITC on maintenance & repair services availed from “Jaggi Motors” for a truck used for transporting its
finished goods is allowed to ABC Ltd.

8. 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?
(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).
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)].
(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 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.
9. 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.
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 the CGST 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 8527230445

Class Notes

GST By CA Suraj Agrawal SATC O.1
GST - PRACTICE TEST PAPER - SET ‘O’
1. BODMAS Ltd., providing educational services, furnishes you with the following information for the
various services provided by it for the month of March, 20XX:
Particulars `
30,00,000
Receipts from running a Boarding School (including receipts for providing residential
dwelling service of ` 14,00,000)
Receipts of 'Gyan Uday' - an Industrial Training Institute (ITI) affiliated to the 2,00,000
National Council for Vocational Training (NCVT)
Receipts of 'Lakshya', an institute, registered with Directorate General of 1,00,000

Employment and Training (DGET), Union Ministry of Labour and Employment,
running a Modular Employable Skill Course (MESC) approved by the National
Council for Vocational Training (NCVT)
Receipts of 'Wizard", a Commercial Coaching Institute providing commercial coaching 80,000

in the field of arts and science (no certificate was issued on completion of the training)
Fees from prospective employers for campus interview 4,00,000
Renting of furnished flats for temporary stay to different persons 5,00,000
Receipts of 'Concepts', a Commercial coaching institute providing coaching in the 1,40,000
field of commerce (a certificate was awarded to each trainee after completion of the
training)
Receipts of Gurukul School providing education upto higher secondary 5,00,000
Compute the value of taxable supply assuming that all the above receipts are exclusive of GST.
Answer
Services provided by an educational institution to its students, faculty and staff are exempt vide Notification
No. 12/2017 Central Tax (Rate) dated 28.06.2017. Further, an educational institution means, inter alia, an
institution providing services by way of-
(i) education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in
force;
(iii) education as a part of an approved vocational education course.
In view of the aforesaid provisions, value of taxable supply of BODMAS Ltd. for the month of March,
20XX has been computed as follows:
Particulars Amount
(`)
Receipts from Boarding School including receipts for residential dwelling service Exempt
[Educational institution providing education up to higher secondary school or equivalent]
Receipts of Gyan Uday Exempt
[Educational institution running approved vocational education course (assuming that such
courses are run in designated trades)]
Receipts of Lakshya running Modular Employable Skill Course [Educational institution Exempt
running approved vocational education course]
Receipts of Wizard - a coaching institute 80,000

[Taxable since coaching institute is not an educational institution]
Fees from prospective employers for campus interview [Taxable since such services are not 4,00,000
specifically exempt]
Renting of furnished flats for temporary stay to different persons 5,00,000
[Not exempt since services by a hotel, inn, guest house, club or campsite, by whatever
name called, for residential or lodging purposes, are exempt only when the value of supply
of a unit of accommodation is below or equal to ` 1,000 per day.]

Receipts of Concepts – a coaching institute 1,40,000
[Taxable since coaching institute is not an educational institution]
Receipts of Gurukul School providing education upto higher secondary Exempt

2. Surya Agencies has agreed to supply goods to customer's premises. Goods valued ` 80,000 are
taxable @ 5% IGST as it is an inter-State supply. It also pays freight and transit insurance of ` 12,000.
GTA is a registered entity and has charged GST (6% CGST and 6% SGST) under forward charge.
(i) Compute the invoice value of supply including IGST.
(ii) What will be the invoice value of supply including IGST, if the supply was under ex-factory basis
instead of door-delivery basis?
Answer
Computation of invoice value of supply
(i) When supplier agrees to supply the goods at customer’s premises, i.e. freight and transit
insurance are paid by the supplier, invoice value of supply will be computed as follows:

Value of goods supplied 80,000
Add: Freight and transit insurance 12,000
[Since the supplier has agreed to deliver the goods at the customer’s premises and to
pay for freight and insurance, the contract of supply becomes a composite supply, the
principal supply being the supply of goods.]
Total 92,000
Add: IGST @ 5% 4,600
[Being a composite supply, GST at the rate applicable for principal supply will be
charged]
Invoice value of supply 96,600
(ii) When supplier agrees to supply the goods on ex-factory basis, i.e. the buyer pays the freight
and transit insurance, invoice value of supply will be computed as follows:

Value of goods supplied 80,000
Add: IGST @ 5% of ` 80,000 4,000
Invoice value of supply 84,000
Note: The above answer is based on the view that part (ii) of the question is an independent case and
thus, the information provided in the first paragraph of the question regarding payment of freight and
transit insurance by Surya Agencies does not apply to it. Moreover, when the contract is ex-factory, it
implies that the freight and insurance will be the buyer’s responsibility and seller will have no role,
whatsoever, in delivering the goods to the customer’s premises.

3. Dharma Dutta has taken voluntary registration and has not opted for the composition scheme of
levy. He is aggrieved by the cancellation of his registration under GST, although he is filing Nil
returns, as he has not conducted any business for the past 8 months. He wants to know the
circumstances under which the proper officer can cancel registration on his own.
Answer
GST registration may be cancelled suo motu by GST Officer if the registered person: -
(i) does not conduct any business from the place of business
(ii) violates the anti-profiteering provisions
(iii) issues invoice/bill without supply of goods / services
(iv) does not file his GST return for six months
(v) does not file his GST return consecutive tax periods if he has opted for composition levy
(v) has not commenced business within 6 months from date of registration
(vi) has obtained the registration by means of fraud, wilful misstatement or suppression of facts.
Note: Any four points may be mentioned.
4. Enumerate any five matters on which the GST Council may make recommendations under Article
279A of the Constitution of India.
Answer
The matters on which the GST Council may make recommendations under Article 279A of the
Constitution of India are as under:-
(i) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be
subsumed in GST;
(ii) the goods and services that may be subjected to, or exempted from GST;
(iii) model GST Laws, principles of levy, apportionment of GST levied on supplies in the course of inter-
State trade or commerce and the principles governing the place of supply;
(iv) the threshold limit of turnover below which goods and services may be exempted from GST;
(v) the rates including floor rates with bands of GST;
(vi) any special rate or rates for a specified period, to raise additional resources during any natural calamity
or disaster;
(vii)special provision with respect to Special Category States
(viii) the date on which the GST be levied on petroleum crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas and aviation turbine fuel.
(ix) any other matter relating to the GST, as the Council may decide.
Note: Any five points may be mentioned.
5. X, a manufacturer of roofing sheets, has total input tax credit of ` 1,60,000 as on 30-06-20XX. He
provides the following other information pertaining to June 20XX:
(i) Input tax on raw materials in June is ` 40,000.
(ii) Input tax on account of Harvest caterers in connection with his Housewarming is ` 10,000.
(iii) Input tax on inputs contained in exempt supplies of ` 2 lakh in June is ` 20,000.
(iv) GST paid on cosmetic and plastic surgery of CEO of the company is ` 30,000.
(v) Total turnover (interstate, taxable @ 18%) for the month of June 20XX is ` 60 lakh.
Compute the ITC available and his output tax liability for the month of June 20XX.
Answer
Computation of ITC available and output tax liability of X for June 20XX
Output tax liability for June 20XX
GST on taxable turnover for June 20XX 10,80,000
[Being inter-State supply, the same is leviable to IGST @ 18% = ` 60,00,000 × 18%]
Add: Ineligible ITC [Refer working note below] 1,290
[ITC out of common credit, attributable to exempt supplies shall be added to the output tax
liability in terms of rule 42 of the CGST Rules, 2017]
Total output tax liability 10,81,290
Total ITC available as on 30.06.20XX 1,60,000

Working Note:
Computation of ineligible ITC to be added to output tax liability
Particulars Amount
(`)
Input tax on raw materials 40,000

[Being used in the course or furtherance of business, input tax on raw materials is available
as ITC and is credited to the Electronic Credit Ledger – Section 16(1) of the CGST Act, 2017]
Input tax on catering for housewarming Nil
[ITC on outdoor catering is blocked in terms of section 17(5) of the CGST Act, 2017 if the
same is not used for making an outward supply of outdoor catering or as an element of a
taxable composite/mixed supply. Hence, the same is not credited to the Electronic Credit
Ledger – Rule 42 of the CGST Rules,2017]
Input tax on inputs contained in exempt supplies Nil
[Not available as ITC and thus, not credited to the Electronic Credit Ledger in terms of rule
42 of the CGST Rules, 2017]
Input tax on cosmetic and plastic surgery of CEO of company Nil

[ITC on cosmetic and plastic surgery is blocked in terms of section 17(5) of the CGST Act,
2017 if the same are not used for making the same category of outward supply or as an
element of a taxable composite/mixed supply. Hence, the same is not credited to the
Electronic Credit Ledger – Rule 42 of the CGST Rules, 2017]
Total ITC credited to the Electronic Credit Ledger in terms of rule 42 40,000
Common credit 40,000
[ITC credited to Electronic Credit Ledger (` 40,000) – ITC attributable to inputs and input
services intended to be used exclusively for effecting taxable supplies (Nil) – Rule 42 of the
CGST Rues, 2017.
It has been assumed that input tax on raw materials is attributable to both taxable and exempt
activity]
ITC attributable towards exempt supplies 1,290
[Common Credit x (Aggregate value of exempt supplies during the tax period / Total turnover
during the tax period) – Rule 42 of the CGST Rules, 2017
= ` 40,000 × ` 2,00,000/ ` 62,00,000 - (rounded off)]
6. IMPORTANT Determine taxable value of supply under the GST law with respect to each of the
following independent services provided by the registered persons:
(i) Fees charged from office staff for in-house personality development course conducted by M.V.
College - ` 10,000.
(ii) Bus fees collected from students by M.V. College - ` 2,500 per month.
(iii) Housekeeping service provided by M/s. Clean well to Himavarsha Montessori school, a play
school - ` 25,000 per month.
(iv) Info link supplied ''Tracing Alphabets", an online educational journal, to students of UKG class of
Sydney Montessori School - ` 2,000.
Answer
i. As per Notification No. 12/2017 CT (R) dated 28.06.2017, services provided by an educational
institution to its students, faculty and staff are exempt from GST. Educational Institution has been
defined to mean, interalia, an institution providing services by way of education as a part of a
curriculum for obtaining a qualification recognized by any law for the time being in force.
Assuming that M. V. College provides education as a part of a curriculum for obtaining a qualification
recognised by a law, the services provided by it to its staff by way of conducting personality
development course would be exempt from GST.

ii. As assumed above that M. V. College provides education as a part of a curriculum for obtaining a
qualification recognised by a law, the transport services provided by it to its students would be exempt
from GST.
iii. As per Notification No. 12/2017 CT (R) dated 28.06.2017, services provided to an educational
institution, by way of, inter alia, house-keeping services performed in such educational institution are
exempt from GST. However, such an exemption is available only when the said services are
provided to a pre-school education and a higher secondary school or equivalent.
Therefore, house-keeping services provided to Himavarsha Montessori Play School would be exempt
from GST on the presumption that housekeeping services have been performed in such play school
itself.
iv. As per Notification No. 12/2017 CT (R) dated 28.06.2017, services provided to an educational
institution by way of supply of online educational journals or periodicals is exempt from GST.
However, such an exemption is available only when the said services are provided to an educational
institution providing education as a part of a curriculum for obtaining a qualification recognized by any
law for the time being in force.
Therefore, supply of online journal to students of UKG class of Sydney Montessori School will not be
exempt from GST. Hence, the taxable value in this case will be ` 2,000.
7. Mr. George, a registered supplier of goods at Kerala who pays GST under regular scheme, has made
the following transactions (exclusive of tax) during April 20XX:
Source Purchases (`) Sales (`) Tax Rate

New Delhi 5,00,000 10,00,000 18%
Trivandrum 2,50,000 8,00,000 9% each for SGST&CGST
Total 7,50,000 18,00,000
He has complied with all the conditions for availing the ITC and has the following ITC credit on 01-04-
20XX:
Source Taxes (`) Interest (`) Penalty (`)
CGST 30,000 1500 500
SGST 30,000 1500 500
IGST 1,00,000 2000 500
Compute the net CGST, SGST and IGST payable by Mr. George during April 20XX in cash?
Answer
Computation of net CGST, SGST and IGST payable in cash by Mr. George during April 20XX
Particulars Amount (`) CGST SGST IGST

@ 9% (`) @9% (`) @ 18%(`)
Sales made outside Kerala (New Delhi) – 10,00,000 1,80,000
[Being inter-State sale, the same is liable

to IGST.]
Sales made in Trivandrum 8,00,000 72,000 72,000
Less: ITC available during April 20XX for (52,500) CGST (52,500) SGST (1,80,000)
set off [Refer Working Note Below]
(10,000) IGST
Net tax liability payable in cash 9,500 19,500 Nil

Working Note: ITC available during April 20XX is computed as under:
Opening balance of ITC 30,000 30,000 1,00,000
Purchases from New Delhi 5,00,000 90,000
[Being inter-State purchase, IGST
would have been paid on it.]
Purchases from Trivandrum 2,50,000 22,500 22,500
Total input tax credit 52,500 52,500 1,90,000
Note: ITC of IGST has been utilized to pay IGST liability first and the balance ITC of IGST has been
used to pay CGST liability. Alternatively, balance IGST credit can also be used for payment of
SGST Liability. Interest and penalty paid are not available as credit.
8. When is an e-way bill required to be generated?
Answer
As per rule 138 of the CGST Rules, 2017, whenever there is a movement of goods of consignment
value exceeding ` 50,000:
(a) in relation to a supply; or
(b) for reasons other than supply; or
(c) due to inward supply from an unregistered person,
e-way bill needs to be generated prior to the commencement of transport of goods.
Further, in the following situations, e-way bill needs to be issued even if the value of the consignment
is less than ` 50,000:
(i) Where goods are sent by a principal located in one State/Union territory to a job worker located in any
other State/Union territory, the e-way bill shall be generated either by the principal or the job worker, if
registered, irrespective of the value of the consignment.
(ii) Where specified handicraft goods are transported from one State/Union territory to another State/Union
territory by a person who has been exempted from the requirement of obtaining registration under section
24 of the CGST Act,2017, the e- way bill shall be generated by the said person irrespective of the value of
the consignment.
9. Siddhi Ltd. is a registered manufacturer engaged in taxable supply of goods. Siddhi Ltd. purchased
the following goods during the month of January, 20XX. The following particulars are provided:
S. Particulars Inputtax
No. (`)
1. Capital goods purchased on which depreciation has been taken on full value 15,000
including input tax thereon
2. Goods purchased from Ravi Traders (Invoice of Ravi Traders is received in month 20,000
of January, 20XX, but goods were received in month of March, 20XX)
3. Car purchased for making further supply of such car. Such car is destroyed in 30,000
accident while being used for test drive by potential customers
4. Goods used for setting up telecommunication towers being immovable property 50,000
5. Goods purchased from Pooja Ltd. (Full payment is made by Siddhi Ltd. to Pooja 10,000
Ltd. against such supply, but tax has not been deposited by Pooja Ltd.
6. Truck purchased for delivery of output goods 80,000
Determine the amount of input tax credit (ITC) available by giving necessary explanations for
treatment of various items as per the provisions of the CGST Act, 2017. You may assume that all the
necessary conditions for availing the ITC have been complied with by Siddhi Ltd.

Answer
Computation of ITC available with Siddhi Ltd.
S. Particulars Input tax
No. (`)
1. Capital goods Nil
[Since depreciation has been claimed on the tax component of the value of the
capital goods, ITC of such tax cannot be availed in terms of section 16 of the CGST
Act, 2017.]
2. Goods purchased from Ravi Traders Nil

[ITC in respect of goods not received cannot be availed (Section 16 of the CGST Act,
2017). Since the goods have been received in the month of March 20XX, ITC thereon
can be availed in March 20XX and not January 20XX even though the invoice for the
same has been received in January 20XX]
3. Cars purchased for making further supply Nil

[Though ITC on motor vehicles used for further supply of such vehicles is not blocked,
ITC on goods destroyed for whichever reason is blocked (Section 17(5) of the CGST
Act, 2017)]
4. Goods used for setting telecommunication towers Nil
[ITC on goods used by a taxable person for construction of immovable property on his
own account is blocked even when such goods are used in the course or furtherance
of business (Section 17 of the CGST Act, 2017).]
5. Goods purchased from Pooja Ltd. 10,000
[ITC can be claimed provisionally in January 20XX since all the conditions necessary
for availing the same have been complied with (Section 16 of the CGST Act, 2017).
However, the claim will get confirmed only when the tax charged in respect of such
supply has been actually paid to the Government.]
6. Trucks purchased for delivery of output goods 80,000

[ITC on motor vehicles used for transportation of goods is not blocked
(Section 17(5) of the CGST Act, 2017).]
Total ITC available with Siddhi Ltd. 90,000
Note: The above answer is based on the assumption that the ITC available is to be computed for the
month of January, 20XX. However, since the question does not specify the period for which ITC
available is to be computed, the question may also be answered without referring to any particular
period.
10. Happy Company is a registered supplier of electric goods. It has three stores for electric goods in
Jodhpur (Rajasthan) namely Ram Store, Shyam Store, Mohan Store. It receives an order for supply of
electric goods worth ` 1,40,000 (exclusive of GST @ 18%) from Kishan Sons of Bhopal (Madhya
Pradesh). Happy Company found that order worth ` 43,000 can be fulfilled from the company's Ram
Store, order worth ` 45,000canbe fulfilled from its Shyam Store and remaining goods worth ` 52,000
can be sent from its Mohan Store. All three stores are instructed to issue separate invoices for the
goods sent to Kishan Sons. The goods are transported to Kishan Sons in Bhopal in a single
conveyance owned by Shiv Transporters.
You are required to advise Happy Company with regard to issuance of e-way bills as per the
provisions of the CGST Act, 2017.
Answer
Rule 138 of the CGST Rules, 2018 stipulates that e-way Bill is mandatorily required to be generated if the
goods are moved, inter alia, in relation to a supply and the consignment value [including CGST,
SGST/UTGST, IGST and cess charged] exceeds ` 50,000.
Further, the CBIC has clarified that if multiple invoices are issued by the supplier to one recipient, multiple e-
way bills have to be generated - one e-way bill for each invoice. Each invoice is considered as separate
consignment for the purpose of generating e-way bills.

In the given case, consignment value of goods supplied against separate invoices from Ram Store, Shyam
Store and Mohan Store is ` 50,740 [` 43,000 × 118%], ` 53,100 [` 45,000 × 118%] and ` 61,360 [`
52,000 × 118%] respectively.
Thus, Happy Company is required to prepare 3 separate e-way bills since value of each invoice exceeds `
50,000.
11. 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 05-02-20XX 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, 20XX 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, 20XX. 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, 20XX.
(iii) M/s Jonty India Ltd. and M/s. Dhanuka Ltd. are not related persons.
Answer
(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, 20XX
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, 20XX and the same will be considered while
paying the tax liability of that month.
(vi) Subsidies directly linked to the price excluding subsidies provided by the Central Government
and State Governments are includible in the value of supply. Since in the given case, subsidy is
received from State Government, the same has not been included in the value of supply
presuming it to be directly linked to the price.*
(2) Trade discount has been shown in the invoice and hence, the same is excluded from the value of
supply in terms of section 15(3) of the CGST Act, 2017.
(3) ITC on food or beverages is specifically disallowed unless the same is used for making outward
taxable supply of the same category or as an element of the taxable composite or mixed supply 1
[Section 17(5)]. Further, since transformers are used in the course or furtherance of business, ITC
thereon is available in terms of section 16(1).
Note- In the above answer, it has been assumed that the basic price of the machine has been
arrived at after adjusting the subsidy and that the basic price is the price charged from the
customer.
Consequently, subsidy received from State Government has not been reduced from the basic price
of the machine while arriving at the taxable value of supply.
However, it is also possible to assume that the subsidy has yet not been adjusted in the basic price
and that the price which will be charged from the customer is ` 27,70,000 (` 28,50,000 - ` 80,000)
i.e., after excluding subsidy. In that case, the value of supply will be ` 28,61,669.
12. Chiku Traders is a registered supplier of plastic goods. On 10th April, 20XX, 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, 20XX. The invoice for the consignment was issued the next day, 16th
April, 20XX. Neelu Traders collects the consignment from the godown of Chiku Traders on 25 th April,
20XX 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, 20XX and amount is credited in their bank
account on 27th April, 20XX.
Determine the time of supply of the plastic goods supplied by Chiku Traders to Neelu Traders as per
the provisions of CGST Act, 2017.
Answer
A registered person (excluding composition supplier) has to pay GST on the outward supply of goods at the
time of supply as specified in section 12(2)(a) of the CGST Act, 2017, i.e. date of issue of invoice or the last
date on which invoice ought to have been issued in terms of section 31(1).
As per section 31, the invoice in case of supply of goods needs to be issued either before or at the time of
removal/delivery of goods.
In this case, the invoice is issued before the removal of the goods and is thus, within the time limit prescribed
under section 31(1). Therefore, time of supply is the date of issue of invoice, which is 16 th April, 20XX.

13. 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 31-01-2021.
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 31-01-2021 in following independent situations:
(i) M/s Heeralal and Sons is a Manufacturer
(ii) M/s Heeralal and Sons is a Trader
Answer
Computation of amount payable under composition scheme
(i) If M/s Heeralal and Sons is a manufacturer:
Tax 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:
Tax 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
14. On 25th August, 2020, 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 2021.
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, 2021.
Answer
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 2020-21 = (` 1,89,000 x 5%) x 3 quarters 28,350
(ii) For the year 2021-22 = (` 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].
15. Happy Ltd. located at Alwar (Rajasthan), exclusively manufactures and sells the product "Shine &
Shine", which is exempt from GST. Happy Ltd. sells "Shine & Shine" only within Rajasthan. The
turnover of Happy Ltd. in the previous year was ` 60 lakhs. Happy Ltd. purchased additional
machinery (Capital Goods) for manufacturing "Shine & Shine" on 1 st April, 2020. The invoice for
supply of machinery also was issued on 1st April, 2020. The purchase price of the machinery was
` 25 lakh exclusive of CGST and SGST @ 12% (6% + 6%). On 1 st December, 2020 exemption available
on the product "Shine & Shine" was withdrawn by the Central Government and CGST and SGST
@18% (9% + 9%) was imposed thereon. The turnover of Happy Ltd. on 30 th September, 2020 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?
Answer
i. As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a
supplier is liable to be registered in the State/Union territory from where he makes a taxable supply of
goods and/or services, if his aggregate turnover in a financial year exceeds the threshold limit. The
threshold limit for a person making exclusive intra - State taxable supplies of goods is as under:-
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim,
Telangana and Uttarakhand.
(c) ` 40 lakh for rest of India. However, the higher threshold limit of ` 40 lakh is not available to
persons engaged in making supplies of ice cream and other edible ice, whether or not
containing cocoa, Pan masala and Tobacco and manufactured tobacco substitutes.
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 ` 40 lakh on 30.09.2020 [` 45 lakh], it was not required to be
registered till 30.11.2020 as it supplied only exempted goods till that day.
Therefore, Happy Ltd. needs to register within 30 days from 01.12.2020 (the date on which its supplies
became taxable) as its turnover had already exceeded the threshold limit of ` 40 lakh on 01.12.2020.
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.

16. 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, 2020 and registration certificate
has been granted to it on 25th September, 2020. The CGST and SGST liability for the month of
September, 2020 is ` 24,000 each.
Quanto Ltd. provides the following information of inputs and capital goods held in stock on 24 th
September, 2020. It is not engaged in making inter-State outward taxable supplies.
Input procured on 02-09-2020 lying in stock
-CGST@6% 4,500
-SGST@6% 4,500
Input received- on 21-07-2020 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 19-09-2019
- IGST @ 18% 36,000
Inputs valued at ` 50,000 procured on 13-09-2020 lying in stock:
- IGST @ 18% 9,000
Capital goods procured on 12-09-2020
-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, 2020.
You are also required to mention reasons for treatment of all above items.
Answer
Computation of net GST liability (to be paid in cash) by Quanto Ltd. for the month of September,
2020
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 first and then with CGST and SGST in
any 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 25.09.2020, it will be entitled to
ITC on inputs held in stock and inputs contained in semi-finished/ finished goods held in stock, on
24.09.2020. In view of the said provisions, eligible ITC for Quanto Ltd. is computed as follows:

Inputs held in stock since 02.09.2020 4,500 4,500
Inputs received on 21.07.2020 contained in semi-finished 7,500 7,500
goods held in stock
Inputs contained in finished goods held in stock which Nil
were procured on 19.09.2019 [Procured prior to one

year, hence ITC cannot be availed]
Inputs held in stock since 13.09.2020 9,000
Capital goods procured on 12.09.2020 Nil Nil
Total ITC 12,000 12,000 9,000
It has been assumed that invoice for the said goods is also dated 19.09.2019.
17. 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.
Answer
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.
18. With the help of information given below in respect of a manufacturer for the month of September,
20XX, calculate eligible input tax credit for the month and also calculate the amount of ITC to be
reversed in September, 20XX and October, 20XX. 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
Answer
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, 20XX [B] - [C] (rounded off) 4,174.55
Total eligible credit for September, 20XX 6,174.55
Amount of ITC to be reversed in September, 20XX [B] 25.45
Amount of ITC to be reversed in October, 20XX [B] 25.45
19. 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 15-08-20XX for which tax invoice was
also issued on the same date. The inputs were received by Mohan Ltd. on 15-08-20XX. Mohan Ltd.
availed credit of ` 24,000 on 18-08-20XX. 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.
Answer
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 return 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 18.03.20XY 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.
20. 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.

Answer
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 First & then CGST and SGST in any order [Section 49(5) of
the CGST Act, 2017 read with Rule 88A]. Central Government will transfer IGST of ` 4,455 utilised in the
payment of SGST to Telangana Government
21. 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 2019-20
is ` 70 lakh. It opted for composition levy in the year 2020-21 and paid tax for the quarter ending
September, 2020 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.
Answer
As per section 10(1) of the CGST Act, 2017, a registered person, whose aggregate turnover in the
preceding financial year did not exceed ` 1.5 crore in a State/UT [` 75 lakh in case of Special Category
States except Jammu and Kashmir, Assam & HP], 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 2019-20 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.
22. Mr. Anand Kumar, a regular taxpayer, filed his return of outward supply (GSTR-1) for the month of
August, 2020 before the due date. Later on, in February, 2021 he discovered error in the GSTR-1
return of August 2020 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.
Answer
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, 2020, cannot revise it.
However, he should rectify said error in the GSTR -1 filed for February, 2021 and should pay the tax and
interest, if any, in case there is short payment, in the return to be furnished for February, 2021. 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-3B 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.
23. 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.
Answer
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
24. 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 20XX:
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 20XX:
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 20XX:
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 20XX. Make suitable assumptions
wherever required.

Answer
Computation of GST payable by Mr. NY for the month of September, 20XX
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)

GST payable 66,000 66,000 63,000
Less: ITC (5,000)-IGST (9,000)-IGST (63,000)-IGST
(61,000)-CGST (49,000)-SGST
Net GST payable Nil 8,000 Nil
Note: ITC of IGST has been used to pay IGST first & then it is used to pay CGST and SGST in any order.
25. Sarva Sugam 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 20XX:
`
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 20XX assuming that the above
amounts are exclusive of GST.
Answer
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,
20XX has been computed as under:
Computation of value of supply of Sarva Sugam Charitable Trust for August, 20XX
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 Kalyana Mandapam 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/Kalyan Mandapam/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.
26. [Tax Invoice] 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.
Answer
(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.

27. [SUPPLY] - How the tax liability on composite and mixed supplies is determined under GST law?
Answer in single sentence each.
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
28. [ITC] - Bring out the salient features of cross utilization of Input Tax Credit (ITC) under the GST Law?
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.
29. 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.
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.

GST By CA Suraj Agrawal SATC P.1
GST - PRACTICE TEST PAPER - SET ‘P’
1. M/s Aditi & Co, a partnership firm registered under GST, is undertaking various Government
projects.
The firm has let out on hire the following vehicles-
(i) A motor vehicle to carry more than 15 passengers to a State Government Electricity
Department
(ii) An electric motor vehicle to carry more than 12 passengers to Local Municipal Corporation
(iii) An electric motor vehicle to carry up-to 12 passengers to State Transport Undertaking
The firm provided the following additional information for the month of October:
(i) Works contract services were availed for construction of immovable property being plant and
machinery, where value of GST component was ₹ 1,10,000.
(ii) GST amounting to ₹ 70,000 was paid on account of demand of the Department due to fraud in
returns filed.
(iii) Goods valuing ₹ 10,00,000, (GST on the same ₹ 1,00,000) were received 180 days ago (invoice
also issued on the date of receipt of supply) for which payment has been made till date to an
extent of ₹ 4,00,000 towards value, ₹ 40,000 towards tax.
The firm made two independent outward supplies in which value of supply was understated in one
case by ₹ 75,000 and overstated by ₹ 45,000 in the other case.
The firm received certain supply of goods from registered persons on which tax was payable under
reverse charge basis.
All the amounts given above are exclusive of taxes, wherever applicable. All transactions
referred to above are intra-State. All the conditions for availing ITC have been fulfilled subject to
the information given above.
From the information given above, choose the most appropriate answer for Q. 1 to Q. 5 given
below:-
1. In respect of vehicles let out on hire by the firm, services that are exempt from GST are
(i) Letting on hire a motor vehicle to State Electricity Department (>15 passengers)
(ii) Letting on hire an electric vehicle to Local Municipality (> 12 passengers)
(iii) Letting on hire an electric vehicle to State Transport Undertaking (<12 passengers)
(a) (i)
(b) (ii)
(c) (i) and (iii)
(d) (ii) and (iii)
2. Determine the amount of eligible ITC to be claimed by the firm for the month of October.
(a) ₹ 70,000
(b) ₹ 1,10,000
(c) ₹ 1,80,000
(d) Nil
3. Determine the amount of ITC to be added to the output tax liability.

(a) ₹40,000
(b) ₹ 60,000
(c) ₹ 1,00,000
(d) Nil
4. Which of the following is correct in respect of document to be issued by the firm for
understatement and overstatement of invoice value?
(i) Debit note is to be issued for ₹ 75,000.
(ii) Credit note is to be issued for ₹ 75,000.
(iii) Debit note is to be issued for ₹ 45,000.
(iv) Credit note is to be issued for ₹ 45,000.

(a) i & iii
(b) ii & iii
(c) i & iv
(d) ii & iv
5. Which of the following statements is correct in respect of supply of goods received by the firm
which are taxable under reverse charge?
(i) Firm shall issue a payment voucher at the time of making payment to supplier.
(ii) Firm shall issue invoice for supply of goods.
(iii) Firm shall issue receipt voucher at the time of making payment to supplier.
(iv) Firm is not required to issue any document in respect of such supply.
(a) i
(b) i & ii
(c) ii & iii
(d) iv
6. Sahil, a resident of Delhi, is having a residential property in Vasant Vihar, Delhi which has been
given on rent to a family for ₹ 50 lakh per annum. Determine whether Sahil is liable to pay GST on
such rent.
(a) Yes, as services by way of renting is taxable supply under GST.
(b) No, service by way of renting of residential property is exempt.
(c) No, service by way of renting of residential property does not constitute supply.
(d) Sahil, being individual, is not liable to pay GST.
7. Various taxes have been subsumed in GST to make one nation one tax one market for consumers.
Out of the following, determine which taxes have been subsumed in GST.
(i) Basic customs duty levied under Customs Act, 1962
(ii) Taxes on lotteries
(iii) Environment tax
(a) (ii)
(b) (ii) and (iii)
(c) (iii)
(d) (i), (ii) and (iii)
8. Goods as per section 2(52) of the CGST Act, 2017 includes:

(i) Actionable claims
(ii) Growing crops attached to the land agreed to be severed before supply.
(iii) Money
(iv) Securities
(a) (i) and (iii)
(b) (iii) and (iv)
(c) (i) and (ii)
(d) (ii) and (iii)
9. Mr. Z of Himachal Pradesh starts a new business and makes following supplies in the first
month-
(i) Intra-State supply of taxable goods amounting to ₹ 17 lakh
(ii) Supply of exempted goods amounting to ₹ 1 lakh
(iii) Inter-State supply of taxable goods amounting to ₹ 1 lakh whether he is required to obtain
registration?
(a) Mr. Z is liable to obtain registration as the threshold limit of ₹ 10 lakh is crossed.
(b) Mr. Z is not liable to obtain registration as he makes exempted supplies.
(c) Mr. Z is liable to obtain registration as he makes the inter-State supply of goods.
(d) Mr. Z is not liable to obtain registration as the threshold limit of ₹ 20 lakh is not crossed.
ANSWER KEY
1 2 3 4 5 6 7 8 9
(b) (b) (b) (c) (a) (b) (a) (c) (c)

10. “Wedding Bells”, a wedding photographer, has commenced providing pre-wedding shoot services in
Jaipur from the beginning of current financial year 2020-2021. It has provided the following details
of turnover for the various quarters till December, 2020 :-
S. No. Quarter Amount

(₹ in lakh)
1 April, 2020 - June,2020 20
2 July, 2020 - September, 2020 30
3 October, 2020 - December, 2020 40
You may assume the applicable tax rate as 18%. Wedding Bells wishes to pay tax at a lower rate
and opts for the composition scheme. You are required to advise whether it can do so and calculate
the amount of tax payable for each quarter?
Solution:
Section 10(2A) of the CGST Act, 2017 provides the turnover limit of ₹ 50 lakh in the preceding financial year
for becoming eligible for composition levy for services. Wedding Bells has started the supply of services in
the current financial year (FY), thus, it’s aggregate turnover in the preceding FY is Nil. Consequently, in
the current FY, Wedding Bells is eligible for composition scheme for services. A registered person opting
for composition levy for services shall pay tax @ 3% [Effective rate 6% (CGST+ SGST/UTGST)] of the
turnover of supplies of goods and services in the State.
Further, Wedding Bells becomes eligible for the registration when the aggregate turnover exceeds ₹ 20 lakh
(the threshold limit of obtaining registration). While registering under GST, Wedding Bells can opt for
composition scheme for services.
The option of a registered person to avail composition scheme for services shall lapse with effect from the
day on which his aggregate turnover during a financial year exceeds the threshold limit of ₹50 lakh.
However, for the purposes of determining the tax payable under composition scheme, the expression
“turnover in State” shall not include the value of supplies from the first day of April of a FY up to the date
when such person becomes liable for registration under this Act.
Thus, for determining the turnover of the State for payment of tax under composition scheme for services,
turnover of April, 2020 – June, 2020 quarter [₹ 20 lakh] shall be excluded. On next ₹ 30 lakh [turnover of
July, 2020 – September, 2020 quarter], it shall pay tax @ 6% [3% CGST and 3% SGST].
For the purposes of computing aggregate turnover of a registered person for determining his eligibility to
pay tax under this section, aggregate turnover includes value of supplies from the 1st April of a FY up to the
date of his becoming liable for registration.
Thus, while computing aggregate turnover for determining Wedding Bells’s eligibility to pay tax under
composition scheme, value of supplies from the first day of April of a financial year up to the date when it
becomes liable for registration under this Act (i.e. turnover of April, 2020 – June, 2020 quarter), are
included.
By the end of July, 2020 – September, 2020 quarter, the aggregate turnover reaches ₹ 50 lakh.
Consequently, the option to avail composition scheme for services shall lapse by the end of July, 2020 –
September, 2020 quarter and thereafter, it is required to pay tax at the normal rate of 18%.
Considering the above provisions, the tax payable for each quarter is as under:-
S. Quarter GST rate Turnover GST payable
No. [CGST + SGST] (₹ in lakh) (₹ in lakh)
1 April, 2020 – June, 2020 - 20 -
2 July, 2020 – September, 2020 6% 30 1.8
3 October, 2020 – December, 2020 18% 40 7.2

11. Mr. Priyam, director of Sun Moon Company Private Limited, provided service to the company for
remuneration of ₹ 1,25,000. Briefly answer whether GST is applicable in the below mentioned
independent cases? If yes, who is liable to pay GST?
(i) Mr. Priyam is an independent director of Sun Moon Company Private Limited and not an
employee of the company.
(ii) Mr. Priyam is an executive director, i.e. an employee of Sun Moon Company Private Limited. Out
of total remuneration amounting to ₹ 1,25,000, ₹ 60,000 has been declared as salaries in the
books of Sun Moon Company Private Limited and subjected to TDS under section 192 of the
Income-Tax Act (IT Act). However, ₹ 65,000 has been declared separately other than salaries in
the Sun Moon Company Private Limited’s accounts and subjected to TDS under section 194J
of the IT Act as professional services.
Solution:
(i) As per Para I of Schedule III of the CGST Act, services by an employee to the employer in the course of
or in relation to his employment are non-supplies, i.e. they are neither supply of goods nor supply of
services. Services provided by the independent directors who are not employees of the said company
to such company, in lieu of remuneration as the consideration for the said services, are clearly outside
the scope of Schedule III of the CGST Act and are therefore taxable. Further, such remuneration paid
to the directors is taxable in hands of the company, on reverse charge basis.
Thus, GST is applicable in this case and Sun Moon Company Private Limited is liable to pay GST.
(ii) The part of director’s remuneration which is declared as salaries in the books of a company and
subjected to TDS under section 192 of the Income-tax Act (IT Act), is not taxable being consideration
for services by an employee to the employer in the course of or in relation to his employment in terms of
Schedule III.
Further, the part of employee director’s remuneration which is declared separately other than salaries in
the company’s accounts and subjected to TDS under section 194J of the IT Act as fees for
professional or technical services are treated as consideration for providing services which are
outside the scope of Schedule III and is therefore, taxable. The recipient of the said services i.e. the
company, is liable to discharge the applicable GST on it on reverse charge basis.
In lieu of the above provisions, ₹ 60,000 declared as salaries in the books of Sun Moon Company
Private Limited and subjected to TDS under section 192 of the Income-Tax Act (IT Act), is not
taxable being consideration for services by an employee to the employer in the course of or in relation
to his employment in terms of Schedule III.
Further, ₹ 65,000 declared separately other than salaries in the Sun Moon Company Private Limited’s
accounts and subjected to TDS under section 194J of the IT Act as professional services is treated as
consideration for providing services which is outside the scope of Schedule III and is therefore,
taxable. The recipient of the said services i.e. the Sun Moon Company Private Limited, is liable to
discharge the applicable GST on it on reverse charge basis.
12. [Based on Amendments]

(a) Miss Kashi is a registered intra-State supplier of goods in Haryana. During the months of August
and September, she was out of station on a religious pilgrimage with her family for 55 days.
Thus, no business transaction was made during August. Miss Kashi is of the opinion that as
there is no transaction, there is no need to file monthly return [GSTR-3B] for the month of
August. However, her tax consultant has advised her to file nil GSTR-3B. Whether the advice
given by tax consultant is correct? Explain.
(b) Will your answer in (a) change, if Miss Kashi has placed an order for some purchases during
August over her mobile phone, which has been received in her premises and she intends to
take input tax credit on the same?
(c) Assuming in (a) above, Miss Kashi does not have internet facility in her mobile and there is no
facilitation centre notified by the Commissioner, whether no return is required to be filed in the
absence of means to file return? Explain.

Solution:
(a) The advice given by tax consultant is correct.
Under GST law, filing of GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no
business activity in any particular tax period. For such tax period(s), a Nil GSTR-3B is required to be
filed.
Therefore, in the given case, even though Miss Kashi was out of station on a religious pilgrimage with her
family for 55 days and thus, could not do any business transaction during the month of August, she is still
required to file Nil GSTR-3B for that month.
(b) Nil GSTR-3B means that the return has nil or no entry in all its Tables. Since in the present case,
Miss Kashi has received certain purchases, she cannot file Nil GSTR-3B, as the said purchases will
need to be disclosed in the “Table for Eligible ITC” in GSTR-3B.
Thus, Miss Kashi is required to file monthly return, GSTR-3B for the month of August.
(c) GSTR-3B can be submitted electronically on the common portal, either directly or through a
Facilitation Centre notified by the Commissioner. Further, a Nil GSTR-3B can be filed through an SMS
using the registered mobile number of the taxpayer.
Thus, Miss Kashi is required to file Nil GSTR-3B for the month of August through an SMS using her
registered mobile number even though there is no internet facility in her mobile and no Facilitation Centre
notified by the Commissioner.
13. [Based on Amendments] Bali Limited, a registered taxpayer, provides security services to registered
persons from Mumbai office and Delhi office. The aggregate turnover of Mumbai office and Delhi
office in the preceding financial year is ₹ 300 crore and ₹ 250 crore respectively. For the month of
November in the current financial year, Bali Limited prepares duplicate invoices and does not issue e-
invoice as it is of the view that it’s aggregate turnover does not cross the threshold limit to make it
liable for issuing e- invoices.
Briefly explain whether the view taken by Bali Limited is correct in law? Also explain the
advantages of e-invoicing, if any.
Solution:
The view taken by Bali Limited is not correct in law.
All notified registered businesses (except specified class of persons) with an aggregate turnover (based on
PAN) in the preceding financial year greater than ₹ 500 crore are required to issue e-invoices.
The eligibility is based on aggregate annual turnover on the common PAN. Thus, the aggregate total turnover
of Bali Limited is more than ₹ 500 crores (considering both the GSTINs) and is required to issue e-invoices.
Further, where e-invoicing is applicable, there is no need of issuing invoice copies in triplicate/duplicate.
E-invoice has many advantages for businesses, which have been given as under:-
(i) Auto-reporting of invoices into GST return and auto-generation of e-way bill (wherever
required). Under e-invoicing, business has to report the B2B invoice data only once in the e-invoice form
and the same is reported in multiple forms (GSTR-1, e-way bill etc.). E-way bill can be auto-generated
using e- invoice data. GSTR-1 can also be auto-populated with the e-invoice data. It will become part of
the business process of the taxpayer.
(ii) Accuracy/Reconciliation. Since same data is reported to tax department as well as to the buyer to
prepare his inward supplies (purchase) register, transcription errors are reduced. On receipt of
information through GST System, buyer can do reconciliation with his Purchase Order.
(iii) Early payment. E-invoicing facilitates standardisation and inter-operability leading to reduction of
disputes among transacting parties and thus, improving payment cycles.
(iv) Cost reduction. E-invoicing helps in reducing processing costs and thus, leads to improvement of
overall business efficiency.
(v) Reduction of tax evasion. Since a complete trail of B2B invoices is available with the Department, it
will enable the system-level matching of input tax credit and output tax thereby reducing the tax evasion.

(vi) Elimination of fake invoices. E-invoicing eliminates the fake invoices. Claiming fictitious input tax
credit (ITC) by raising fake invoices is also one of the biggest challenges currently faced by tax-
authorities. The e-invoice system helps to curb the actions of unscrupulous taxpayers and reduce the
number of fraud cases as the tax authorities have access to data in real-time.
(vii)Paper Elimination. E-invoicing helps in paper elimination and thereby it is eco- friendly.

GST By CA Suraj Agrawal SATC Q.1
GST - PRACTICE TEST PAPER - SET ‘Q’
1. Sunshine Pvt. Ltd. manufactures taxable goods. The company is registered under GST in the State of
West Bengal. The company has provided following information in relation to inward supplies received
by it in the month of October:
S. No. Invoices received for inward supplies IGST (₹)
1. Raw material - X 2,00,000
2. Rent of the factory building 1,50,000
3. Raw material - Y 1,30,000
4. Car purchased for the use of the director 1,20,000
5. Consumables 80,000
6. Machinery for being used in the manufacturing process 1,50,000
7. Raw material - Z 1,10,000
8. Technical consultancy for improvement in the manufacturing process 60,000
9. Raw material – W (imported from China) 50,000
Total 10,50,000
S. Particulars IGST (₹)

No.
(i) Balance in Form GSTR-2A on 28th October 4,80,000
(Invoices at S. Nos. 1, 2 and 3 uploaded by the respective suppliers in their
Form GSTR-1s)
(ii) Balance in Form GSTR-2A on 11th November 6,00,000
(Invoices at S. Nos. 1, 2, 3 and 4 uploaded by the respective suppliers in their
Form GSTR-1s)
(iii) Balance in Form GSTR-2A on 20th November 6,80,000
(Invoices at S. Nos. 1, 2, 3, 4 and 5 uploaded by the respective suppliers
in their Form GSTR-1s)
Compute the ITC that can be claimed by Sunshine Pvt. Ltd. in its Form GSTR-3B for the month of
October to be filed by 20th November.
Note: The due date of filing of Form GSTR-1 and Form GSTR-3B for the month of October are 11th
November and 20th November respectively. Subject to the information given above, all the other
conditions for availing ITC have been complied with.
Solution:
ITC to be claimed by Sunshine Pvt. Ltd. in its GSTR-3B for the month of October to be filed by 20th
November will be computed as under-
Invoices Amount of input Amount of ITC

tax involved in that can be
the invoices (₹) availed (₹)
Balance in GSTR-2A on 11th November [Note 1] 6,00,000 4,80,000
(Invoices at S. Nos. 1, 2, 3 and 4 uploaded by the respective [Note 2]
suppliers in their GSTR-1s)
Invoices at S. Nos. 5, 6 7 and 8 not uploaded in GSTR-1 4,00,000 48,000
[Note 3]
Invoice at S. No. 9 50,000 50,000
[Note 4]
Total 10,50,000 5,78,000

Notes:
1. ITC in respect of the invoices whose details have not been uploaded by the suppliers shall not exceed
10% of the eligible input tax credit available to the recipient in respect of invoices or debit notes the
details of which have been uploaded by the suppliers under section 37(1) of the CGST Act, 2017 as
on the due date of filing of the returns in Form GSTR-1 of the suppliers for the said tax period.
The taxpayer can ascertain the same from his auto populated Form GSTR 2A as available on the
due date of filing of Form GSTR-1 under section 37(1) [Rule 36(4) of the CGST Rules, 2017].
2. 100% ITC can be availed on invoices uploaded by the suppliers in their Form GSTR-1. However,
section 17(5) of the CGST Act, 2017 blocks ITC on motor vehicles for transportation of persons having
approved seating capacity of not more than 13 persons if they are not used for making the following
taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles
Since Sunshine Pvt. Ltd. is not using the car for any of the aforesaid mentioned purpose, ITC thereon will
not be available.
Thus, 100% ITC will be available in respect of invoices at S. Nos. 1, 2 & 3.
3. In respect of invoices at S. Nos. 5, 6 7 and 8 not uploaded in Form GSTR-1s, the ITC has been
restricted to 10% of eligible ITC in respect of invoices uploaded in Form GSTR-1s, i.e. 10% of ₹ 4,80,000
in terms of rule 36(4) of the CGST Rules, 2017.
4. The restriction of availment of ITC is imposed only in respect of those invoices, details of which are
required to be uploaded by the suppliers under section 37(1) of the CGST Act, 2017 and which have not
been uploaded. Therefore, full ITC can be availed in respect of IGST paid on imports which are outside
the ambit of section 37(1) [
2. Parikshit Ltd., engaged in providing a bouquet of services, is registered under GST law. It furnishes
the following information for the month of March in relation to various services provided by it:
Particulars ₹
Fees from prospective employers for campus interview in its college 5,20,000
Five buses each with seating capacity of 40 passengers given on hire to State 6,50,000
Transport Undertaking
Receipts of 'Shiny', a commercial coaching institute providing coaching in the field of 1,82,000
commerce (a certificate was awarded to each trainee after completion of the training)
Interest received on fixed deposits of the company with Dhanvarsha Bank 6,50,000
Receipts from running a Boarding School (including receipts for providing residential 39,00,000
dwelling service of ₹ 18,20,000)
Receipts of 'Sikshit Samudai' - an Industrial Training Institute (ITI) affiliated to the 2,60,000
National Council for Vocational Training (NCVT). Courses run by said ITI are in
designated trades
Receipts of 'Pratibha Institute', an institute registered with Directorate General of 1,30,000
Employment and Training (DGET), Union Ministry of Labour and Employment, running a
Modular Employable Skill Course (MESC) approved by the National Council for
Vocational Training (NCVT)
Professional services provided to foreign diplomatic mission located in India 1,04,000
Compute the GST payable by Parikshit Ltd. assuming that all the above receipts are exclusive of
GST wherever applicable and the rate of GST applicable on all the supplies is 18%.

Solution:
Computation of GST payable by Parikshit Ltd. for the month of March
Particulars Value GST @
(₹) 18% (₹)
Fees from prospective employers for campus interview in its college 5,20,000 93,600
[Taxable since such services are not specifically exempt]
Five buses each with seating capacity of 40 passengers given on hire to Nil Nil
State Transport Undertaking
[Services by way of giving on hire to a State transport undertaking (STU), a motor
vehicle meant to carry more than 12 passengers, are exempt vide Notification No.
12/2017 CT(R) dated 28.06.2017 (hereinafter referred to as exemption
notification).]
Receipts of Shiny– a coaching institute 1,82,000 32,760

are exempt vide exemption notification. However, coaching institute is not an
educational institution.]
Interest received on fixed deposits of the company with Dhanvarsha Bank Nil Nil
[Services by way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount (other than interest
involved in credit card services) are exempt vide exemption notification.]
Receipts from Boarding School including receipts for residential dwelling Nil Nil
service
are exempt vide exemption notification. Boarding School providing education up
to higher secondary school or equivalent is an educational institution since it
provides composite supply of education service coupled with other services like
providing dwelling units for residence and food wherein the principal supply is
supply of education service.]
Receipts of Sikshit Samudai Nil Nil

are exempt vide exemption notification. Sikshit Samudai is an educational
institution running approved vocational education course.]
Receipts of 'Pratibha Institute' running Modular Employable Skill Course Nil Nil
are exempt vide exemption notification. Pratibha Institute is an educational
institution running approved vocational education course.]
Professional services provided to foreign diplomatic mission located in 1,04,000 18,720

India
[While services provided by a foreign diplomatic mission located in India are
exempt from GST vide exemption notification, no such exemption is available to
the services provided to such mission.]
GST payable 8,06,000 1,45,080
3. Paridhi Ltd. is a registered manufacturer engaged in taxable supply of goods. Paridhi Ltd. purchased
the following goods during the month of January and provided the following information:
S. Particulars GST paid
No. (₹)
1. Capital goods purchased on which depreciation has been taken on full value 15,000
including input tax thereon
2. Goods purchased from Rupesh Enterprises 20,000

(Rupesh Enterprises sent the invoice in the month of January, but goods were
received in month of April)

3. Car purchased for making further supply of such car. Such car is destroyed in 30,000
accident while being used for test drive by potential customers
4. Goods used for setting up telecommunication towers being immovable property 50,000
5. Goods purchased from Sumo Ltd. 10,000

(Full payment has been made by Paridhi Ltd. to Sumo Ltd. against such supply,
but tax has been deposited by Sumo Ltd. in April)
6. Truck purchased for delivery of output goods 80,000
Determine the amount of input tax credit (ITC) available to Paridhi Ltd. while filing GSTR-3B for the
month of January by giving necessary explanations for treatment of various items as per the
provisions of the CGST Act, 2017. You may assume that all the necessary conditions for availing the
ITC have been complied with by Paridhi Ltd.
Solution:
Computation of ITC available with Paridhi Ltd. in January
S. Particulars Amount
No. (₹)
1. Capital goods Nil

[Since depreciation has been claimed on the tax component of the value of the capital
goods, ITC of such tax cannot be availed in terms of section 16 of the CGST Act, 2017.]
2. Goods purchased from Rupesh Enterprises Nil

[ITC in respect of goods not received cannot be availed (Section 16 of the CGST Act,
2017). Since the goods have been received in the month of April, ITC thereon can be
availed in April and not January even though the invoice for the same has been received
in January.]
3. Cars purchased for making further supply Nil

[Though ITC on motor vehicles used for further supply of such vehicles is not blocked,
ITC on goods destroyed for whichever reason is blocked (Section 17(5) of the CGST
Act, 2017).]
4. Goods used for setting telecommunication towers Nil

[ITC on goods used by a taxable person for construction of immovable property on his
own account is blocked even when such goods are used in the course or furtherance of
business (Section 17 of the CGST Act, 2017).]
5. Goods purchased from Sumo Ltd. 10,000
[ITC can be claimed provisionally in January since all the conditions necessary for
availing the same have been complied with (Section 16 of the CGST Act, 2017).
However, the claim will get confirmed only when the tax charged in respect of such supply
has been actually paid to the Government.]
6. Trucks purchased for delivery of output goods 80,000

[ITC on motor vehicles used for transportation of goods is not blocked (Section 17(5)
of the CGST Act, 2017).]
Total ITC available with Paridhi Ltd. 90,000

GST By CA Suraj Agrawal SATC MCQ A.1
GST MCQ – SET ‘A’

1. Mr. X, a registered supplier of Meghalaya wants to opt for composition levy under Section
10(1). 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. Vansh, 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 ____place of business in a State ____obtain a separate registration for
each place of business.
(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 – 8527230445)?
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. Jatin 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 Jatin 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 (SATC)
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 ` 1.5 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 manufacturing of Pan-masala
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 or SGST/UTGST in any order
(c) IGST, SGST/UTGST, CGST
(d) CGST, SGST/UTGST, IGST
54. Mr. A has a tax invoice [dated 20-1-2021] of services received by him. Its input tax credit is
lost if ITC is not availed on or before–
(a) 20-1-2022
(b) 31-12-2021
(c) 20-1-2021
(d) date of filing return of September, 2021 or date of filing of annual return for 2020-21, 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 u/s 10(1) 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 – 15.03.2021 (7th Edition)

This question Bank is based on GST Volume issued to CA INTER Students

Email: [email protected]; Mobile: 85272 30445

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

“One more step towards success”

THANKS TO ALL OF YOU

SURAJ AGRAWAL TAX CLASSES

NOTICE: ALL ABOVE STUDENTS ARE REGISTERED STUDENTS OF SATC IN REGULAR

SURAJ AGRAWAL TAX CLASSES

YOUTUBE CHANNEL NAME - "CA SURAJ AGRAWAL - SATC"

YOUTUBE CHANNEL NAME - "CA SURAJ AGRAWAL - SATC"

THANKS ALL FOR SUCH WONDERFUL PERFORMANCE

SURAJ AGRAWAL TAX CLASS

1 KUNAL AGGARWAL 623158 81 TAX CA INTER

2 DEEPESH HOIYANI `01171005959 80 IDT CMA FINAL

3 YATIN BISHT `04181023861 76 OM & SM CMA INTER

4 NEHA VASHISHT (AIR 43) `04191056393 74 IDT CMA INTER

5 SATISH JANGRA `04142010658 72 IDT CMA FINAL

6 PRANSHU SINGAL `01171007386 72 IDT CMA FINAL

7 JAI PRAKASH GUPTA 523034 70 TAX CA INTER

8 RAHUL `04142005518 69 IDT CMA INTER

9 YASHODA RAWAT `04181025326 69 IDT CMA INTER

10 KISHAN KASHYAP `04181023519 69 OM & SM CMA INTER

11 RAMAN KUMAR `04182040490 68 OM & SM CMA INTER

12 REETU `04181028730 68 OM & SM CMA INTER

13 POONAM KHEMKA `04161003969 68 IDT CMA FINAL

14 GARIMA `14101014557 68 IDT CMA FINAL

15 MINAKSHI SINGH `04181031103 67 IDT CMA INTER

16 ATUL VISHVAKARMA 522810 67 TAX CA INTER

17 YATIN BISHT `04181023861 66 IDT CMA INTER

18 VARUN KHATTAR (AIR 30) `04141003976 66 IDT CMA FINAL

19 ADARSH KUMAR UPADHYAY `04152003297 65 DT CMA INTER

20 NISHITHA JAIN `04181030186 65 DT CMA INTER

22 RAHUL RANJAN SINGH `04162004494 65 IDT CMA INTER

23 MINAKSHI SINGH `04181031103 65 OM & SM CMA INTER

24 NEHA VASHISHT `04191056393 65 OM & SM CMA INTER

25 ANAMIKA DIXIT `04171006352 65 OM & SM CMA INTER

26 SUNNY `04191055669 64 DT CMA INTER

27 ANAMIKA DIXIT `04171006352 64 IDT CMA INTER

28 TUSHAR KHATTAR `04131000398 63 IDT CMA FINAL

29 RITIKA 63 TAX CA INTER

30 RAVINDRA KUMAR SHAKYA `04191048134 62 IDT CMA INTER

31 VAISHALI `04181036455 62 IDT CMA INTER

32 MOHD. IRSHAD `04161002726 62 IDT CMA INTER

33 RAHUL KUMAR OJHA `03122001946 62 IDT CMA FINAL

34 RAJAN KUMAR PANDEY 624360 62 TAX CA INTER

35 MEENAKSHI JAIN 624144 62 TAX CA INTER

36 KISHAN SHARMA 626257 62 TAX CA INTER

37 DEEPAK KATHAYAT `04152002482 61 DT CMA INTER

38 KOMAL PAL `04151007518 61 IDT CMA INTER

39 LOKESH KUMAR `04161001512 61 OM & SM CMA INTER

40 KHUSHBOO BANSAL 620832 61 TAX CA INTER

41 MOHIT BATRA `04182040268 60 DT CMA INTER

42 LOKESH KUMAR `04161001512 60 IDT CMA INTER

43 AMITA NEGI `04142011566 60 IDT CMA FINAL

44 ROHIT SAINI `04171006308 60 IDT CMA FINAL

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