Problems on computation of transaction value and CGST and

SGST for goods

5. How would you arrive at the transaction value for the
purpose of levy of GST and calculate GST payable. From the
following particulars.
The selling price of the product exclusive of GST Rs.10000, rate
of GST is applicable to the product is 5%, trade discount
allowed as per normal trade practice before delivery of product
is Rs.1200,freight attributable for the supply of the product is
Rs.750 from factory to buyer place which is not included in the
above selling price.
6. X company manufactures 2000 units of products and sold to
a whole seller at Rs.200 per unit. 10% trade discounted allow to
the whole seller as per the normal practice. What is the amount
of GST payable if rate of GST is 12%?
7. Having regard to the provisions of CGST and SGST Act, 2017,
compute the transaction value of goods from the following
information and GST payable.
Particulars Amount
Listed selling price (including IGST of Rs.5000) 35000
Following transactions are not included in the
above price:
Normal secondary packing cost 2000
Cost special packing 1000
Cost of durable and returnable packing 1500
Freight charges paid by supplier charged 800
separately
Insurance and freight paid by supplier
charged separately 200
Trade discount (normal practice) 2000
Rate of GST 12%

8. A manufacture has prepared the invoice as under:

Particulars Amount
Price of goods (excluding CGST at 14% and 10,00,000
SGST @ 14%)
The following item not included in the
above price :
Advertising charges 1,20,000
Publicity charges 60000
Selling expenses 40000
Loading and handling charges 10000
Servicing charges 10000
Outward freight and insurance on buyer
request 64000
Allowed discount at 10% on the price of the goods and
shown in invoice. Compute the amount of GST payable.
9. Determine the total amount of GST payable on a machine
using details given below:
Particulars Amount
Selling price of the machine (inclusive of CGST@
9% and SGST @ 9%) 2, 95,000
Cost durable and returnable packing included in
the sales price given above 10000
Design and development charges paid by buyer on
Behalf of seller to third party 12000
Warranty charged separately by the seller 4000
Rate of GST 18%.
Calculation should be supported by notes where were required.
10. How will you arrive the transaction value under the subject
transaction to be determined under section 15 of the CGST at
2017? Give reasons with suitable assumption where necessary.
Contracted sale price for delivery at buyers premise
Rs.10,00,000. The contracted sale price includes the following
elements of cost:
a. Cost of drawings and design Rs.3000.
b. Cost of primary packing Rs.3500.
c. Cost of packing at buyers request for safety during
transport Rs.7500.
d. GST at 12% Rs.1,20,000
 e. Freight and insurance charges paid from factory to ‘place
of delivery’ Rs.20,000
f. Durable and returnable container charges included
Rs.10,000
g. Discount allowed as per the trade practice an shown in
invoice Rs.20,000

Problems on computation of transaction value and IGST

for goods
11. XYZ ltd of Chennai agreed to sell an electronic motor on
which the rate of GST applicable is 12% to ABC ltd Of Bangalore
for Rs.15000 on ex-factory basis. Other particular are:
a. Transportation and transit insurance were arranged by XYZ
ltd. This was at the request of ABC ltd and amounted to for
Rs.1250 and Rs.1500 respectively which were charged
separately.
b. A discount of Rs.1000 was given to ABC ltd. On the agreed
price on payment of an advance of Rs.3500 with the order.
(Ignore notional interest on advance).
c. Interest of Rs.800 was charged from DEF ltd. As it failed to
make the payment within 30days.
d. Packing charges of the motor amount to Rs.1300
 e. The expenditure incurred by ABC ltd. towards ‘free after
sale service’ during warranty periods comes out to be
Rs.500 per motor. Compute IGST payable.
12. Having regard to the provision of section 15 of CGST T 2017,
Compute the transaction value of taxable goods, for levy of
GST, given the following information:
Wholesale price of a product sold to Chennai from a dealer in
Bangalore (including GST @12%) Rs.72000
Above pricing exclusive of the following;
Normal secondary packing cost Rs.4000
Cost of special secondary packing Rs.6000
Cost of durable and returnable packing Rs.3000
Freight Rs.2500
Insurance on freight Rs.500
Trade discount (normal practice) Rs.8000
State in the foot note to your answer, reasons for the
admissibility or otherwise of the deductions. Compute IGST
payable.
Problems on computation of transaction value under
composite supply
13. A dealer in Mumbai entered a contract with a supplier in
Mysore to deliver machinery along with essential accessories.
From the information determine the total amount of GST
payable under sec 15 of the CGST act 2017.
Particulars Amount
Price of machinery (excluding taxes and duties) 6, 30,000
Installation and erection expenses charged
separately in invoice 20000
Packing charges (primary and secondary) 15000
Design and engineering charges paid by the buyer 8000
Cost of material supplied by buyer free of charge 2000
Free delivery inspection charges 1000
Loading and handling charges within the factory 1200
Other information:
a. Cash discount 2% on price of machinery was allowed as
per terms of contract. Since full payment was received
before dispatched of machinery.
b. Bought-out accessories supplied along with machinery
valued at Rs.5000 which was necessary for the working of
 the machinery. These bought out goods are charged for
tax at the rate of 5%.
c. GST rate 18% .make suitable assumptions as are required
and provide brief reasons.

14. A dealer in Bangalore agreed to supply 5 computer

systems to a dealer in Bidar in the month of august 2017 on
following terms:
Price of the each CPU supplied (inclusive of GST at 18%)
Rs. 23600
Price of the each Desktop supplied (exclusive of GST at 28%)
Rs. 6000
Packing for transportation Rs.4000
Transport charges to recipient place charged separately in
invoice Rs.6000
Commission paid to the agents to fix up agreement for the
sale these Rs.10000
Late fee charged to buyer for the delayed payment of the
materials supplied in the month of July 2017 Rs.2000
The dealer supplied following essential items along with the
CPU:
 a. 5 key pads supplied along with the laptops costing Rs.300
each and rate of GST applicable is 12%.
b. 5 mouse supplied along with the laptop costing Rs.350
rate of GST applicable is 12%.
c. Cost of operating software’s supplied for all the systems
Rs.50000 rate tax applicable to software’s 5%.
d. Special discount of Rs.5000 for is given, if advance of
Rs.1,00,000 is paid with order. The buyer has paid the
advance with the order.
Find the transaction value and the GST payable for the
month of August, 2017.
Problems on computation of transaction value under mixed
supply
15. A manufacture supply machinery as following terms and
conditions:

Particulars Amount
Price of machinery (net of taxes and duties) 400000
Installation and election expenses charged
separately in invoice 26000
Packing charges (primary and secondary) 4000
Design and engineering charges (net of taxes and
duties) 30000
Cost of material supplied by buyer at reduce
cost(the actual price of the material is Rs.25000) 5000
Pre-delivery inspection charges 3000
Rate of GST on machinery 18%
Cash discount of Rs.15000 will be offered if full payment is
received before dispatch of goods. The buyer has made the
payment as per the conditions stipulated.
The machine is supplied along with bought-out accessories at
Rs.8500. The accessories were optional and the rate of duty
applicable to these accessories is 28%.
The manufacturer incurred cost of Rs.1500 in loading the
machine in the truck in his factory. These are not charged
separately to buyer.
Find the transaction value and the GST payable if the rate of
GST on principal supply is 5%.

16. A dealer in Hyderabad agreed to supply 10 laptops to dealer

in Bangalore in the month of August 2017 of following terms:
Particulars Amount
Price of the each laptop (inclusive of IGST @ 18%) 47200
Packing for transportation of laptops 5000
Transport charges of laptops 5000
Commission paid to the agent to fix of agreement for
the sale these 10000
Addition feature charges incurred by seller on request
of buyer for each laptop 20000
The dealer supplied following optional items along with the
laptops:
a. 10 Pen Drive supplied along with the laptop costing Rs.600
each and rate of GST applicable is 18%.
b. 10 keypads supplied along with the laptops costing Rs.300
each and rate of GST applicable is 12%.
c. 10 optional Mouse supplied along with the laptop costing
Rs.350 each and rate of GST applicable is 12%.
d. 3 printers supplied along with the laptops costing Rs.5000
each and rate of GST applicable is 28% and
e. Special discount of Rs.2000 for each laptop is given, if
advance of Rs.2,00,000 is paid with order. The buyer has
paid the advance with the order,
Find the transaction value and the GST payable for the
month of August 2017.

17.
1. Product- A sold to a dealer in Bangalore rate of GST
notified to this product is 12%. Rs.1,00,000
2. Product-B sold to a dealer in Mysore rate of GST @ 5%
Rs.50,000
3. Product-c @ Nill rate GST sold to a dealer in Pondicherry
Rs.1,20,000
4. Product-D @ 18% GST sold to a dealer in Jammu &
Kashmir Rs.2,00,000
5. Product-E @ 28% GST sold to a unregistered dealer with in
the state Rs.3,20,000
6. Product-F rate of GST notified is 18% sold to a SEZ
developer in Bangalore Rs.5,00,000
7. Product-G sold to a dealer in union territory rate of GST
notified is 12% Rs.4,00,000
8. Product-H which is exempted from GST is sold to a
registered dealer of Pune Rs.6,00,000
9. Product-I exported to china the GST rate notified by GST
council for this product is 12% if it is sold in India
Rs.4,50,000
10. Product-J sold to a unit of SEZ in Mysore the rate of
GST notified to this product is 5% Rs.3,00,000
11. Product-K sold to a registered dealer with in the state,
the rate of GST notified is 12% Rs.2,50,000
12. Product-L sold to a dealer in Belaghavi who as
registered under composition scheme @ 28% GST
Rs.2,00,000
Compute the amount of output tax to be uploaded by the
dealer for the month of July and which is the last date to
upload it in credit ledger.
18. Compute the amount of output tax to be uploaded by the
dealer who was registered in Karnataka for the month of July
and which is the last date to uploaded it in credit ledger.
1. Product-M sold to a dealer in Delhi rate of GST notified to
this product is 12%. Rs.3,00,000
2. Product-N sold @ Nil rate GST sold to a dealer in Bangalore
Rs.4,00,000
3. Product-O sold to a dealer in Mumbai, rate of GST @5%
Rs.2,50,000
4. Product-P exported to USA the GST rate notified by GST
Council for this product is 12% if it is sold in India
Rs.3,20,000
5. Product-Q sold to a dealer in union territory rate of GST
notified is 12% Rs.3,00,000
6. Product-R @ 18% GST sold to a dealer in Jammu and
Kashmir Rs.60,000
7. Product-S @ 28% GST sold to a unregistered dealer in
Hubbali Rs.2,00,000
8. Product-T rate of GST notified is 18% sold to a SEZ
developer in Bangalore Rs.1,00,000
9. Product-U which is exempted from GST is sold to a
registered dealer of Punjab Rs.2,60,000
10. Product-V sold to a dealer in Bidar who as registered
under composition scheme @ 28% GST Rs.75,000
11. Product-W sold to a unit of SEZ in Mangalore the rate
of GST notified this product is 5% Rs.80,000
12. Product-Z sold to a registered dealer with in the state
the rate of GST notified is 18% Rs.50,000