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Great! I'll now begin providing detailed solutions and explanations (including numerical parts
and OR options) for all the questions in your GST exam paper.

Due to the paper's length and depth, I'll break the answers into multiple parts for clarity and
easier reading. Here's what I'll cover in Part 1:

PART 1: Question 1

1(a) – Section 24: Compulsory Registration under CGST Act, 2017

Section 24 of the CGST Act, 2017 overrides Section 22 and specifies certain cases where a
person is mandatorily required to obtain GST registration, even if their aggregate turnover
is below the threshold limit.

Key cases under Section 24:

1. Persons making inter-state taxable supply.

2. Casual taxable persons making taxable supply.

3. Persons required to pay tax under reverse charge.

4. Non-resident taxable persons making taxable supply.

5. Persons required to deduct tax under section 51 (TDS).

6. Input service distributors (ISD).

7. E-commerce operators required to collect TCS.

8. Persons supplying goods/services through e-commerce operator.

9. Persons supplying online information and database access from outside India to a
non-taxable online recipient in India.

Conclusion: Even if the turnover is below ₹20/40 lakhs, such persons must register under
GST.

1(b) – GST applicability for specific cases (with reasoning)

(i) Ms. Deepika – Homeopathic doctor charging ₹1,000 per consultation

• Answer: Exempt

• Reasoning: Healthcare services by a clinical establishment or authorized medical

practitioner are exempt under Notification No. 12/2017-Central Tax (Rate).
 • Homeopathy falls under AYUSH; hence the exemption applies.

(ii) Farm labour services related to cultivation

• Answer: Exempt

• Reasoning: Services related to agriculture, including labour for cultivation, are

exempt as per the same notification (Entry 54).

(iii) Resident Welfare Association charging ₹8,000/month/member

• Answer: Exempt

• Reasoning: Charges up to ₹7,500/member/month are exempt. Above this, the entire

amount is taxable, not just the excess. Since ₹8,000 > ₹7,500, GST is applicable on
the full amount.

(iv) Advocates (X & Co.) providing legal services to other advocates

• Answer: Exempt

• Reasoning: Legal services provided by an advocate or firm of advocates to another

advocate/firm or to a business with turnover <₹20 lakhs are exempt. But here, both
are registered firms. So, GST applies under Reverse Charge Mechanism (RCM).

(v) Indigo Airlines from Sikkim to Mumbai

• Answer: Taxable

• Reasoning: Air passenger transport is taxable. The exemption applies only when
both origin and destination are in a non-taxable territory like Sikkim, J&K, or
Ladakh. Since Mumbai is a taxable territory, GST is applicable.

(vi) Interest paid on delayed credit card payment: ₹2,000

• Answer: Exempt

• Reasoning: Interest on loan or credit card payment is considered a transaction in

money and is not subject to GST, as per Section 2(102) of CGST Act.
OR OPTION – 1(a)

(i) GST Council

• Formed under Article 279A of the Constitution.

• Comprises:

• Union Finance Minister (Chairperson)

• Union Minister of State (Finance)

• State Finance Ministers.

• Functions:

• Recommends GST rates, exemptions, model laws, thresholds, and special

provisions.

• Ensures uniformity of GST across India.

(ii) GST Network (GSTN)

• A non-profit, non-government company providing the IT backbone for GST.

• Functions:

• Portal for registration, returns, payments.

• Links taxpayers with central/state tax authorities.

• Manages the GST database and analytics.

1(b) Numerical Problem – Ramesh Ltd.

Given: Ramesh Ltd. operates only in Haryana.

(i) Aggregate Turnover as per Section 22(1)

As per Section 22(1), aggregate turnover includes:

• Taxable supplies (excluding inward RCM)

• Exempt supplies

• Exports

• Inter-state supplies

Calculation:

Inward Supplies → Not included

Outward Supplies:

• Non-taxable goods: ₹1,30,000

• Exempted goods & services: ₹2,70,000

• Taxable goods & services: ₹11,60,000

• Goods under RCM: ₹3,40,000

Total Aggregate Turnover = ₹1,30,000 + ₹2,70,000 + ₹11,60,000 + ₹3,40,000

= ₹18,00,000

(ii) Is Ramesh Ltd. liable for GST registration?

Since aggregate turnover is less than ₹40 lakhs, and there’s no inter-state supply of
goods or e-commerce, registration is not mandatory.

Answer: No, not liable.

(iii) What if Ramesh Ltd. was in Tripura?

Tripura is a Special Category State, threshold = ₹20 lakhs.

Here, turnover ₹18 lakhs < ₹20 lakhs → Still not liable.

(iv) Why enhanced threshold of ₹40 lakhs not available?

Enhanced threshold of ₹40 lakhs applies only to exclusive suppliers of goods.

In this case, Ramesh Ltd. also supplies services (exempted services of ₹2,70,000),
hence ineligible.

Would you like me to proceed to Question 2 now? I’ll follow the same detailed format with
explanations and numerical solutions.

You said:

yes

ChatGPT said:

Great! Let’s proceed to:

 PART 2: Question 2

2(a) – Whether the following are supplies under GST

Under Section 7(1) of the CGST Act, 2017, "Supply" includes all forms of supply of goods or
services for a consideration in the course or furtherance of business. However, Schedule I &
II and exceptions (Schedule III) also apply.

Let’s evaluate each case:

(i) Mr. Dhawan’s sister provided architectural services free of cost

• Situation: His sister (in Australia) helped in designing his personal house in Manali.
No consideration involved.

• Answer: Not a supply

• Reasoning:

• No consideration.

• Not in course or furtherance of business.

• Not covered under Schedule I (related party but services without

consideration outside business scope).

(ii) Shreya supplies 7,000 units of taxable goods to Vinay (pure agent)

• Answer: Supply

• Reasoning:

• Supply made to Vinay for onward sale in Shreya’s name.

• Vinay is acting as a pure agent, but the goods move from Shreya to final
buyer via Vinay.

• Hence, supply exists between Shreya and end customer via Vinay.

(iii) Prakash & family paid ₹12,000/day room rent in Uttarakhand hotel

• Answer: Supply

• Reasoning:
 • It is a supply of service (accommodation).

• Amount exceeds ₹1,000/day threshold for exemption (Notification No.

12/2017).

• Hence, taxable under GST.

(iv) Ms. Arya leases land in Maharashtra for commercial purpose (₹10,00,000/yr)

• Answer: Supply

• Reasoning:

• Lease of land for commercial purpose = supply of service.

• Not exempt – only agricultural land lease is exempt.

• Taxable under GST.

2(b) – Determination of Value of Supply (Section 15 of CGST Act)

(i) Online Money Gaming

• Value = Total amount paid to participate

• No deduction for winnings distributed.

• Governed by Rule 31A(3) of CGST Rules.

• GST is charged on the full bet amount, not the platform fee.

Example: If a player pays ₹1,000 to play, and the house keeps ₹100 – still, GST applies on
₹1,000.

(ii) Booking of Air Tickets

• Value = Transaction value charged by airline or agent

• Includes:

• Base fare

• Fuel surcharge

• Any charges collected from passenger

Special case: Travel agent books on commission basis:

 • For domestic travel – GST @5%

• For international travel – GST @10% on base fare.

(iii) Supply between distinct or related persons (without agent)

• Rule 28 of CGST Rules applies.

• Value = Open Market Value (OMV) or value of like kind and quality.

• If goods/services are further supplied as such by the recipient, invoice value =

value (accepted).

• Example: Supply from head office (Delhi) to branch office (Mumbai) without
consideration is taxable under Schedule I.

OR OPTION: AniMax Group Numerical Problem

Given:

• Base course fee = ₹1,70,000

• Subsidies:

• Delhi Govt: ₹10,000

• Cine Association: ₹15,000

• Russo Institute: ₹8,000

• UK Govt: ₹17,000

• Amount charged to student = ₹1,20,000 + GST

(i) Value of Taxable Supply (Section 15 Explanation)

As per Section 15(2)(e): Subsidies directly linked to the price (except by the Central/State
Govt) shall be added to the value of supply.

Only Delhi Govt subsidy is excluded.

Calculation:

Value of taxable supply =

1,20,000

• ₹15,000 (Cine Association)

 • ₹8,000 (Russo Institute)

• ₹17,000 (UK Govt)

= ₹1,60,000

Delhi Govt subsidy of ₹10,000 is not added.

(ii) GST Payable @18%

GST = ₹1,60,000 × 18% = ₹28,800

(iii) Amount Receivable from Student

Already given: AniMax charges ₹1,20,000 + GST

GST = ₹28,800

Total receivable = ₹1,20,000 + ₹28,800 = ₹1,48,800

2(c) – Place of Supply & Nature of Supply

(i) X from Kolkata buys online tickets for Aquatica in Mumbai

• Nature: B2C supply

• Place of Supply: Location of event = Mumbai (Section 12(6))

• Nature of supply: Inter-state

• IGST applicable

(ii) Z Ltd (TN) trains C Ltd’s staff (Rajasthan) in Delhi

• POS: Location of training = Delhi (Section 12(5))

• Supplier Location = TN

• Inter-State Supply → IGST

(iii) Amar (Ahmedabad) renovates house in Surat for Ritika (Delhi)

• POS: Location of immovable property = Surat (Section 12(3))

• Supplier Location = Ahmedabad

 • Intra-State Supply → CGST + SGST

(iv) Caterer (Hyderabad) serves at customer’s premises in Nagpur

• POS: Location of service performance = Nagpur (Section 12(2)/12(3))

• Supplier = Hyderabad

• Inter-State Supply → IGST

Let me know if I should continue with Question 3 (Input Tax Credit and RCM cases).

You said:

yes

ChatGPT said:

Perfect! Let’s move on to:

PART 3: Question 3

3(a) – ITC Eligibility of ABC Enterprises

ABC Enterprises is a registered taxpayer distributing electric kettles and has incurred the
following GST expenses. Let’s evaluate each one based on Section 16, 17 of the CGST Act,
2017 and relevant rules.

Expense GST
# Description Amount ITC Allowed? Reasoning

Purchase
of packaging Used directly in outward
1 material for kettles ₹1,20,000 Yes supply

Rent paid for Related to business

2 storage warehouse ₹9,000 Yes premises
 Expense GST
# Description Amount ITC Allowed? Reasoning

Purchase of office Used in normal course of

3 stationery ₹5,000 Yes business

Vehicle hire for 5% GST without ITC on

goods transport @ renting of vehicles (as per
4 5% GST ₹20,000 No rate notification)

Air tickets for Business-related travel –

5 business travel ₹15,000 Yes ITC allowed

Catering
services for Blocked
employee credit under Section
6 meetings ₹25,000 No 17(5)(b)(i)

Consultancy from
Chartered
7 Accountant ₹10,000 Yes Direct business service

Blocked credit – personal

Recreational club use, not eligible
8 membership ₹8,000 No under Section 17(5)(b)(ii)

ITC blocked
if depreciation
claimed on GST-
Air conditioner inclusive value
(AC) for office – (₹28,000 includes
9 GST: ₹3,000 No GST)

Life insurance for

employees (non-
Blocked under Section
10 mandatory) ₹25,000 No
17(5)(b)(iii) unless
 Expense GST
# Description Amount ITC Allowed? Reasoning

mandated by law (which

it is not here)

Conclusion – ITC Summary

Eligible ITC Total = ₹1,20,000 + ₹9,000 + ₹5,000 + ₹15,000 + ₹10,000

= ₹1,59,000

Ineligible ITC = ₹20,000 + ₹25,000 + ₹8,000 + ₹3,000 + ₹25,000

= ₹81,000

3(b) – 8 Examples under Reverse Charge Mechanism (RCM)

Goods/Services Person Liable under RCM

Legal services from advocate Recipient (business entity)

Services from GTA (Goods Transport Agency) Recipient (if registered)

Sponsorship services Recipient (company/firm)

Services by Arbitral Tribunal Recipient (business entity)

Renting of motor vehicle (if provider not availing ITC) Recipient

Services by government to business entities Business recipient

Supply of security services (from registered firm) Recipient

Import of services Recipient (importer under IGST Act)

 OR OPTION: Rishi Co. Ltd. – RCM vs Forward Charge

Given: Rishi Co. Ltd. is a registered medical equipment retailer.

Let’s analyze the transactions:

(i) Legal consultancy from XYZ Law Firm (₹50,000 @ 18%)

• Answer: RCM

• Reasoning: Legal services from a firm to a registered business entity fall under RCM.

Rishi Ltd. must pay 18% GST under RCM.

(ii) Security services from SecureGuard Pvt. Ltd. (₹30,000 @ 5%)

• Answer: RCM

• Reasoning: When provided by registered security firm to a registered person, RCM

applies if recipient is not a body corporate.

But since no info is given about Rishi Ltd. being a body corporate, we assume RCM
applies.

(iii) Rent-a-cab service from Mahesh (individual, 2.5% CGST + 2.5% SGST)

• Answer: Forward Charge

• Reasoning: If supplier (Mahesh) is charging GST under forward charge, and not
availing ITC, then RCM doesn't apply.

Mahesh pays GST. Rishi Ltd. cannot claim ITC as fuel is included and rate is concessional.

(iv) Residential dwelling for CEO (₹60,000/month)

• Answer: RCM

• Reasoning: Renting of residential dwelling for commercial entity's use (even for CEO)
is taxable under RCM.

Rishi Ltd. must pay GST under RCM, ITC not available (used for personal benefit).

(v) Sponsorship from a college of University of Delhi

 • Answer: RCM

• Reasoning: Sponsorship services provided to company attract RCM, regardless of

provider status.

Rishi Ltd. to pay GST under RCM.

3(b) – Ananya’s GST Computation

Given:

Description Amount (₹) GST Rate

Inter-State Purchase (Raw Materials) ₹16,00,000 12%

Intra-State Purchase (Raw Materials) ₹20,00,000 12%

Inter-State Sales (Finished Goods) ₹12,00,000 12%

Intra-State Sales (Finished Goods) ₹25,00,000 12%

Step 1: GST on Sales (Output Tax Liability)

• IGST on Inter-State Sales = ₹12,00,000 × 12% = ₹1,44,000

• CGST & SGST on Intra-State Sales = ₹25,00,000 × 6% = ₹1,50,000 each

Step 2: GST on Purchases (ITC)

• IGST on Inter-State Purchase = ₹16,00,000 × 12% = ₹1,92,000

• CGST & SGST on Intra-State Purchase = ₹20,00,000 × 6% = ₹1,20,000 each

Step 3: Set-off (Input Tax Credit)

IGST Payable: ₹1,44,000

• Set-off from IGST ITC = ₹1,92,000

• Remaining IGST ITC = ₹48,000 (can be used for CGST/SGST)

CGST Payable: ₹1,50,000

• Set-off from CGST ITC = ₹1,20,000

• Use ₹30,000 from IGST balance

• CGST Payable = ₹0

SGST Payable: ₹1,50,000

• Set-off from SGST ITC = ₹1,20,000

• Use ₹30,000 from IGST balance

• SGST Payable = ₹0

Net GST Payable: ₹0

• All tax liabilities fully offset via ITC.

Would you like me to proceed to Question 4 (GSTR-9, QRMP, E-commerce services, etc.)?

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yes

ChatGPT said:

Awesome! Let’s now proceed to:

PART 4: Question 4

4(a) – GSTR-9, GSTR-9A and QRMP Scheme

1. GSTR-9: Annual Return

• Applicable to regular registered taxpayers.

• Filed once a year (before 31st December of next FY).

• Includes:

• Outward/inward supplies

• ITC claimed

• Taxes paid and payable

 • Not applicable to: Composition taxpayers, Input Service Distributors (ISD), Casual
taxable persons, Non-resident taxable persons.

2. GSTR-9A:

• Applicable to composition scheme taxpayers (now discontinued since FY 2019–20).

• Similar to GSTR-9, but tailored for small taxpayers under composition scheme.

• Filed annually.

3. QRMP Scheme: (Quarterly Return Monthly Payment)

• For small taxpayers with aggregate turnover ≤ ₹5 crores in the preceding FY.

• Benefits:

• File GSTR-1 and GSTR-3B quarterly instead of monthly.

• Pay tax monthly via:

• Fixed sum method (35% of last quarter)

• Self-assessment method

• Reduces compliance burden.

4(b) – Taxability of Services via E-Commerce Operator (ECO)

As per Section 9(5) of CGST Act, if certain services are supplied through ECO, the ECO is
deemed the supplier, i.e., they pay tax, not the actual provider.

1. Restaurant Services

• Taxable @5% (without ITC).

• If provided through ECO (e.g., Zomato, Swiggy), ECO is liable to pay GST (from Jan 1,
2022).

• Applies only to restaurant services, not cloud kitchens or delivery charges.

2. Accommodation Services

• If provider (e.g., hotel) is unregistered, and listed on an ECO like OYO, Airbnb –
the ECO pays GST.

• If the provider is registered, the hotel pays GST.

ECOs must collect TCS (Tax Collected at Source) @1% as well under Section 52.
4(c) – Composite Supply vs Mixed Supply

Composite Supply

• Comprises two or more supplies naturally bundled and supplied together.

• One is principal supply.

• Tax rate of principal supply applies.

Example: Hotel stay + breakfast

→ Hotel is principal → Tax rate of accommodation applies.

Mixed Supply

• Two or more individual supplies combined, not naturally bundled.

• Highest rate among all items applies.

Example: Diwali gift box (perfume + chocolate + watch)

→ Highest rate (perfume @18%) applies on entire value.

OR OPTION

(a) Short Notes

(i) Credit & Debit Notes

• Credit Note: Issued when original tax invoice has higher value → reduces tax liability.

• Debit Note: Issued when undercharged originally → increases tax liability.

• Must be reported in GSTR-1 of the month.

(ii) Bill of Supply

• Issued by:

• Composition taxpayers

• Suppliers of exempt goods/services

• No tax is charged.

• Contains: description, value, HSN code, GSTIN, etc.

(iii) GSTR-4

• Annual Return filed by composition taxpayers (replaces earlier quarterly returns).

• Contains:

• Summary of inward and outward supplies

• Tax liability

• ITC (not allowed for composition dealers)

(b) Electronic Cash & Credit Ledger

Electronic Cash Ledger (Section 49)

• Works like a wallet to deposit tax, interest, penalty, etc.

• Payment modes: NEFT/RTGS, over-the-counter, internet banking.

• Utilized in order: tax, interest, penalty, fees.

Electronic Credit Ledger

• Records Input Tax Credit from inward supplies.

• Used only for payment of output tax (not for interest, penalty, or late fee).

• ITC credited automatically via GSTR-2B/GSTR-3B.

(c) Section 14 – Time of Supply on Rate Change

When GST rate changes, time of supply is determined based on:

When... Time of Supply =

Invoice issued before, payment received after rate change Date of invoice

Payment before, invoice after rate change Date of payment

Both after rate change Later of two

When... Time of Supply =

Both before rate change Earlier of two

We'll apply this rule with real numericals in Q5(c) next.

Would you like me to proceed to Question 5 (Customs duty, assessable value, composition
levy, etc.)?

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yes

ChatGPT said:

Excellent! Let’s now move to:

PART 5: Question 5

5(a) – Assessable Value of Imported Goods (Customs)

Given:

S. No. Particulars Amount (₹)

1 Value of goods imported 10,00,000

2 Engineering & design charges 3,00,000

3 Buying commission 4,00,000

4 Air freight 2,00,000

5 Insurance 3,00,000

6 Landing charges 1,05,000

Step-by-step computation of Assessable Value (AV) under Section 14 of Customs Act:

• FOB value = ₹10,00,000

• + Design & engineering charges = ₹3,00,000 (Addable as per Rule 10(1)(b))

• + Freight (air) = ₹2,00,000 (capped at 20% of FOB) = ₹2,00,000

• + Insurance = ₹3,00,000 (actual paid, hence used)

• + Landing Charges = ₹1,05,000

• – Buying Commission = Not addable under Rule 10(1)(a)

Assessable Value = 10,00,000 + 3,00,000 + 2,00,000 + 3,00,000 + 1,05,000 = ₹19,05,000

5(b) – Short Notes

(i) Indian Custom Waters

• Defined under Customs Act, 1962.

• Extends up to 12 nautical miles from the baseline of Indian coast.

• Within this limit, customs officers have authority for search, seizure, and
enforcement.

• Includes territorial waters, contiguous zones, exclusive economic zones (for customs
purposes).

(ii) Countervailing Duty (CVD)

• Imposed under Section 9 of Customs Tariff Act, 1975.

• Levied to counterbalance subsidies provided by exporting country to their

exporters.

• Applied after investigation by DGTR (Director General of Trade Remedies).

• Complies with WTO Agreement on Subsidies.

5(c) – Composition Scheme Eligibility & Tax Computation

Given:

• Rohan Co. is a registered dealer in Madhya Pradesh

• Preceding turnover = ₹124 lakhs

• Current FY turnover = ₹140 lakhs (Taxable: ₹80L, Exempt: ₹60L)

(i) Eligible for Composition Levy in FY 2024–25?

Yes. As per Notification No. 14/2019-CT:

• Threshold for goods dealers = ₹1.5 crore

• MP is not a special category state → So eligible if turnover ≤ ₹1.5 crore

• ₹140L ≤ ₹1.5 crore → Eligible

(ii) Tax Payable under Composition Scheme

There are different rates under Section 10 of CGST Act:

(a) If Retailer → Rate = 1% (0.5% CGST + 0.5% SGST) on turnover in State

On ₹140 lakhs:
= 140,00,000 × 1% = ₹1,40,000 (₹70,000 CGST + ₹70,000 SGST)

(b) If Manufacturer → Rate = 1% (0.5% CGST + 0.5% SGST) on turnover in State

On ₹140 lakhs:
= ₹1,40,000 (same as above)

Note: Exempt supplies are also counted in turnover for tax purposes under composition
scheme.

(iii) Eligibility in other States (Intra-State only)

Location Eligible? Reason

Union Territory of J&K Yes Threshold is ₹1.5 Cr for goods

State of Assam Yes Threshold = ₹1.5 Cr applies

State of Arunachal Treated as non-special category after

Pradesh Yes amendment

OR OPTION: Ruhi Ltd. Customs Case

Given:

Item Value

Price of machine £6,000

Air Freight £1,500

Design charges £400

Commission (3% of £6,000) ₹17,100 (95 × 180)

Landing charges ₹30,000

Date of BOE: 15/03/2025 – BCD: 12%, Exchange Rate: ₹95/£

Date of arrival: 10/03/2025 – BCD: 10%, Rate: ₹96/£

Step 1: Use exchange rate/date from BOE date (Section 14)

• Exchange rate = ₹95/£

• BCD = 12%

Step 2: Compute CIF Value in INR

• FOB = 6,000 × 95 = ₹5,70,000

• Freight = 1,500 × 95 = ₹1,42,500

• Design = 400 × 95 = ₹38,000

• CIF = ₹5,70,000 + ₹1,42,500 + ₹38,000 = ₹7,50,500

• Commission (₹17,100)

•
 • Landing charges = ₹30,000
Total Assessable Value = ₹7,97,600

Step 3: Customs Duty

1. BCD @12% = ₹7,97,600 × 12% = ₹95,712

2. SWS @10% on BCD = ₹9,571

3. IGST @12% on (AV + BCD + SWS):

= (₹7,97,600 + ₹95,712 + ₹9,571) × 12%
= ₹9,02,883 × 12% = ₹1,08,346

Total Customs Duty Payable:

= BCD ₹95,712 + SWS ₹9,571 + IGST ₹1,08,346

= ₹2,13,629

5(b) – Short Notes

(i) Basic Customs Duty (BCD)

• Levied under Customs Tariff Act, 1975

• Standard duty on imported goods

• Based on assessable value

• Varies from 0% to 100% depending on item

(ii) Social Welfare Surcharge (SWS)

• Introduced in Budget 2018.

• @10% on BCD (not on IGST).

• Meant for funding social welfare schemes.

• Not included in assessable value for IGST purposes.

5(c) – Time of Supply for Rate Change (Section 14)

S. Date of Date of Date of Time of Applicable
No Supply Invoice Payment Rate Supply Rate

Old
→
1 28/05/2024 28/05/2024 25/07/2024 New 28/05/2024 28%

Old
→
2 28/05/2024 09/06/2024 26/05/2024 New 26/05/2024 28%

Old
→
3 10/06/2024 28/05/2024 25/06/2024 New 25/06/2024 18%

Old
→
4 10/06/2024 09/06/2024 28/05/2024 New 09/06/2024 18%

Old
→
5 24/05/2024 20/06/2024 31/12/2024 New 24/05/2024 28%

Old
→
6 24/05/2024 28/05/2024 25/06/2024 New 28/05/2024 28%

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