GOODS AND SERVICES TAX (50 MARKS)

(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Whenever necessary, suitable assumptions may be made by the candidates
and disclosed by way of a notes.
(iii) All questions should be answered on the basis of position of the GST law as
amended by provisions of the CGST Act, 2017 and the IGST Act, 2017 as
amended by the Finance Act, 2023, including significant notifications and
circulars issued, up to 31st October, 2024.

DIVISION A - MULTIPLE CHOICE QUESTIONS

TOTAL MARKS: 15 MARKS

Write the most appropriate answer to each of the following multiple choice
questions by choosing one of the four options given. All questions are
compulsory.

Q. 1 to Q. 6
Case Scenario
M/s. Maahi & Co., a LLP registered dealer under GST, is engaged in various types of
business activities.
It provided GTA services to Government Department, registered under GST for providing
various services. Maahi & Co. did not exercise the option to pay GST.
The firm provided services of Direct Selling Agency (DSA Services) to a Banking Company
located in Mumbai.
The firm provided free gift to each of its employees valuing Rs. 50,000 once in a financial
year.
M/s Maahi & Co let out its warehouse to Mr. Shankar, who in turn let out to an agriculturist
for warehousing of agricultural produce. The firm also undertakes catering service to
“Vishwas” Anganwadi. The said Anganwadi has received fundings from Government.
The firm purchased following goods during the month of July:-
(a) Capital goods amounting to Rs. 45,000 purchased on which depreciation has been
taken on full value including GST paid thereon.
(b) Raw materials purchased amounting to Rs. 55,000 for which invoice is missing but
delivery challan is available.
Further, for the month of July, the GST liability of the firm was Rs. 20,000 IGST;
Rs. 10,000 CGST; Rs. 10,000 SGST. The following credits were available in the said month-
IGST: Rs. 8,000
CGST: Rs. 12,000
SGST: Rs. 5,000

All the amounts given above are exclusive of taxes, wherever applicable. All the supply
referred above is intra-State unless specified otherwise. Conditions for availing ITC are
fulfilled subject to the information given above.
Based on the information provided above, choose the most appropriate answer for the
following questions-

1. Choose the correct statement(s).

(i) For GTA services, Government is liable to pay GST under reverse charge
(ii) For DSA services, Banking Company is liable to pay GST under reverse charge
(iii) For GTA services, Maahi & Co is liable to pay GST under forward charge
(iv) For DSA services, Maahi & Co is liable to pay GST under forward charge

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 (a) i & ii
(b) iii & iv
(c) i & iv
(d) ii & iii

2. Which of the following options is correct in respect of GTA services provided to

Government Department?
(a) GTA service is taxable @ 12% without restriction of availing input tax credit.
(b) GTA service is taxable @ 12%, but input tax credit cannot be availed for the
same.
(c) GTA service is taxable @ 5% without restriction of availing input tax credit.
(d) GTA service is taxable @ 5%, but input tax credit cannot be availed for the
same.

3. Gift of Rs. 50,000 in value provided by Maahi & Co to each of its employee will be:
(a) Supply of goods
(b) Supply of services
(c) Exempt supply
(d) Not a supply

4. Which of the following statements is correct:-

(i) Letting out of warehouse to Shankar is exempt
(ii) Catering service to “Vishesh” Anganwadi is exempt
(iii) Letting out of warehouse to Shankar is not exempt
(iv) Catering service to “Vishesh” Anganwadi is not exempt
(a) i & ii
(b) iii & iv
(c) i & iv
(d) ii & iii

5. M/s Maahi & Co is eligible to claim input tax credit of _________

(a) Rs. 45,000
(b) Rs. 55,000
(c) Rs. 1,00,000
(d) Nil

6. Compute the GST liability of the firm for the month of July to be paid in cash, if rule
86B of the CGST Rules, 2017 is not applicable?
(a) IGST: Rs. 10,000; CGST: Nil, SGST: Rs. 5000
(b) IGST: Rs. 12,000; CGST: Nil; SGST: Rs. 5000
(c) IGST: Nil; CGST: Rs. 10,000, SGST: Rs. 5000
(d) IGST: 5,000; CGST: Nil, SGST: 10,000
MCQ [6 MCQ of 2 Marks Each : Total 12 Marks]

7. Suvidha Enterprises issued invoices pertaining to two independent outward supplies,

where in one invoice value of supply was understated by Rs. 75,000 and in another
invoice, value was overstated by Rs. 45,000. 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 Rs. 75,000.
(ii) Credit note is to be issued for Rs. 75,000.
(iii) Debit note is to be issued for Rs. 45,000.
(iv) Credit note is to be issued for Rs. 45,000.

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 (a) (i) & (iii)
(b) (ii) & (iii)
(c) (i) & (iv)
(d) (ii) & (iv)
(2 Marks)

8. Riya & Co., a partnership firm, is engaged in retail trade since 1st April. The firm
became liable for registration on 1st October. However, it applied for registration on
10th October and was granted certificate of registration on 5th November.
Determine the effective date of registration of Riya & Co.?
(a) 1st April
(b) 1st October
(c) 10th October
(d) 5th November
(1 Mark)

DIVISION B - DESCRIPTIVE QUESTIONS

QUESTION NO. 1 IS COMPULSORY
ATTEMPT ANY TWO QUESTIONS OUT OF REMAINING THREE QUESTIONS.
TOTAL MARKS: 35 MARKS

Question 1:
(a) 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 September 2023:
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
Intra-State purchase of goods from Unregistered Dealer ₹ 2,00,000
Inter-State purchase of goods from Registered Dealer ₹ 4,00,000

Balance of ITC at the beginning of September 2023:

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
September 15, 2023. 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 October 3, 2023 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.
Compute the net CGST, SGST and IGST payable in cash by Mr. Himanshu for the
month of September 2023.
(8 Marks)

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(b) Green Agro Services, a registered person provides the following information relating
to its activities during the month of February 2024:
Gross Receipts from (₹)
Services relating to rearing of sheeps 6,00,000
Services by way of artificial insemination of horses 4,00,000
Processing of Sugarcane into Jaggery 8,00,000
Milling of paddy into rice 7,50,000
Services by way of fumigation in a warehouse of Agricultural produce 1,80,000
All the above receipts are exclusive of GST.
Compute the value of taxable supplies under GST laws for the month of February, 2024.
(7 Marks)

Question 2:
(a) Mr. A has deposited a sum of Rs. 30,000 under minor head of “Interest” column for
the major head “IGST”. At the time of filing GSTR-3B for a particular tax period, he
noticed that there is no sufficient amount under the minor head „Tax‟ towards
payment of Rs. 30,000. When approached with the consultant, Mr. A was guided to
deposit the tax amount under proper head of account and claim a refund for the
remittance of amount deposited under head ”interest”. Examine the relevant
provisions of CGST Act, 2017 towards payment of tax and compliance with the law.
(5 Marks)

(b) 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 03-10-2023
(ii) Invoice was issued on 05-10-2023
(iii) Payment received on 09-10-2023
(3 Marks)

(c) The Sterling Group of hostels introduces a holiday package for 5 Days in Pondicherry and
Mahabhalipuram (Tamilnadu). The stay includes both staying and complementary
breakfast. Where the stay in Pondicherry is for 3 Nights and the stay in Mahabhalipuram
for 2 Nights. For the above services The Sterling charges total of ₹ 15,000.
Explain the place of supply in the above scenario.
(2 Marks)

Question 3:
(a) P Ltd, a registered person provided following information for the month of October, 2023:
Particulars Amount (₹)
Intrastate outward supply 8,00,000
Interstate exempt outward supply 4,00,000
Turnover of exported goods 20,00,000
Payment of IGST 1,20,000
Payment of CGST and SGST 45,000 each
Payment of custom duty on export 40,000
Payment made for availing GTA services 3,00,000
GST is payable on Reverse Charge for GTA services.
Explain the meaning of aggregate turnover u/s 2 (6) of CGST Act and compute the
aggregate turnover of P Ltd. for the month of October, 2023. All amounts are
exclusive of GST.
(4 Marks)

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(b) Write short notes on the following:
List out any five cases where generation of E-Way Bill is not necessary.
(3 Marks)

(c) Shashikaran, a registered supplier of Delhi, has supplied 20,000 packages at Rs. 30
each to Sukhija Gift Shop in Punjab. Each package consists of 2 chocolates, 2 fruit
juice bottles and a packet of toy balloons. Determine the rate(s) of GST applicable in
the given case assuming the rates of GST to be as under:
Goods/services supplied GST rate
Chocolates 18%
Fruit juice bottles 12%
Toy balloons 5%
(3 Marks)

Question 4:
(a) M/s PQR Ltd. have filed their GSTR3B return for the month of August, 2023 within
the due date i.e. 20.09.2023. It was noticed in October 2023 that tax dues for the
month of August, 2023 have been short paid for by ₹ 10,000. The shortfall of ₹
10,000 was paid through cash ledger and credit ledger amounting to ₹ 7,500 and ₹
2,500 respectively while filing GSTR3B of October 2023 which was filed on
20.11.2023.
(i) Examine and compute the Interest payable if any under the CGST Act, 2017.
(ii) What would be your answer if, GSTR-3B for the month of August 2023 had
been filed belatedly on 20.11.2023 and the tax of ₹ 10,000/- has been paid
on 20.11.2023 as above.
Note: Ignore the effect of the leap year. Electronic cash ledger and credit ledger
carried sufficient balance for the above shortfall.
(6 Marks)

(b) 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 2022-23 is of ₹ 12 lakhs on his own account and ₹ 9 lakhs on
behalf of principal. Both turnovers are Intra-State supply.
(4 Marks)
OR

(b) “All taxpayers are required to file GSTR-1 only after the end of the current tax
period.”
Comment on the validity of the above statement with reference to GST law.
(4 Marks)

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