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12 views17 pagesGST 2024 Du Question Paper
The document outlines a question paper for a B.Com. (H) course on Goods & Service Tax (GST) and Customs Law, detailing various topics related to GST principles, registration exemptions, and specific case studies. It includes questions on the functions of the GST portal, reverse charge mechanisms, and distinctions between composite and mixed supplies. Additionally, it provides guidance on the treatment of certain transactions under GST law and the calculation of taxable supply values.
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0% found this document useful (0 votes)
12 views17 pagesGST 2024 Du Question Paper
The document outlines a question paper for a B.Com. (H) course on Goods & Service Tax (GST) and Customs Law, detailing various topics related to GST principles, registration exemptions, and specific case studies. It includes questions on the functions of the GST portal, reverse charge mechanisms, and distinctions between composite and mixed supplies. Additionally, it provides guidance on the treatment of certain transactions under GST law and the calculation of taxable supply values.
Uploaded by
pathakshreya210Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 17
2024 (M
Sr. No. of Question pa : 507
Name of the Paper —_: Goods & Service Tax (GST) & Customs Law
Name of the Course: B.Com. (H) CBCS
Semester : VI
Duration: 3 hours Maximum Marks: 75
Attempt All questions. All questions carry equal marks.
Q.1. Answer each of the following questions:
(a) Discuss the principles that were borne in mind while subsuming various Central,
State and Local levies under GST? What.are the functions of the common GST portal?
10
(b) State the persons who are exempt from Registration under GST law. 5
Ans. (a) GST was envisaged to subsume a number of indirect taxes presently
being levied by Central and State Governments into a single tax and the following
principles were kept in mind as a basis for the formation of GST Act:
(@) Taxes or levies to be subsumed should be primarily in the nature of indirect
taxes, either on the supply of goods or on the supply of services,
(®) Taxes or levies to be subsumed should be part of the transaction chain which
commences with import/manufacture/ production of goods or provision of
services at one end and the consumption of goods and services on the other.
(c) The subsummation should result in free flow of tax credit in intra and imter-
State levels. The taxes, levies and fees that are not. specifically related to
supply of goods and services should not be subsumed under GST.
(@ Revenue fairness for both the Union and the States individually would need
to be attempted. :
) Functions of GST portal:
(a) Facilitate registration of taxpayers,
(t) Computation of IGST and its settlement.
(0) File tax returns and submit to Central and State authorities.
(@) Integrate banking network with tax payment details.
(e) Analyse tax payer's profile,
(f) Manage computation engine of input tax credit.
(g) Submit MIS reports to respective governments,
(h) Assessment, audit, appeal, enforcement, adjudication etc,
()) Generating E-way bills and E-invoices,
(b) Section 23 of the Central Goods and Service Tax Act, 2017 deals with the
provisions of persons who are not liable for GST registration. Section 23 (1) states
that persons who are engaged in supplying goods or services or both that are not
liable to be taxed or persons who are engaged in supplying of goods or services or
both that are wholly exempted from tax, then such persons are not required to obtain’
GST registration.
Further, Section 23 (2) empowers the government to notify a specific category of
persons that are exempted from obtaining GST registration.
List of persons exempted from obtaining GST registration, Following categories
of persons are exempted from obtaining Goods and Service Tax (GST) registration—
(2) The person engaged exclusively in providing business of supplying goods or
" services, or both that are not liable to tax or are wholly exempted from tax
P99 : a a | P00 @ Shivdas DELHI UNIVERSITY SERIES
uunder Central Goods and Service Tax Act 2017 ot under Integrated my
and Services Tax Act, 2017. ae Goods
() An Agriculturist, however, the exemption is only to the extent of supply,
produce out of cultivation of land. : of
(0) Individual advocates, including senior advocates.
(@ Individual sponsorship service providers, including players,
(©) The person engaged in making inter-state supplies of taxable seryi, a
having an aggregate turnover of less than 20 Lakhs, €10 Lakhs in cage
special category states, in a financial year (as per notification no, 10/2017 _
Integrated tax dated 13th October 2017).
(f) The person engaged in the supply of services and having an aggregate
tumover of less than $20 Lakhs, 710 Lakhs in case of special category states,
in a financial year (as per notification no. 65/2017 ~ Central Tax dated. 15th
November 2017).
@) The person engaged in supplying taxable goods or services or both and
total tax on such supplies is required to be paid by the reci
or services or both under reverse charge mechanism (as per
5/2017 — Central Tax dated 19th June 2017 effective from
Or
(@) What is Reverse Charge Mechanism (RCM)? Mention few nolified goods &
services where RCM is applicable.
ipient of Boods
Notification no,
22nd June 2017),
(6) Distinguish between Composite and Mixed Supply with examples. 2
(6) Determine whether following services are exempt as per Notification No, 120)
amended up to date: 5
@ Target IAS, an Educational Institute provides education for the preparation
of Indian Administrative Service Examination conducted by UPSC,
Government of India.
() Mr. Anubhav Mittal has hired a non-air conditioned bus from Shubham
Travels for organizing a religious tour from Delhi to Uttarakhand.
Ans. (a) See Q. 42, Chapter 3. [Page 6
The goods and services where RCM is applicable are:
8. Supply of Goods Supplier of Goods
Recipient of Goods
1. | Cashew Nuts which should | Agriculturist ‘Any Registered P
not be shelled or peeled.
2. | Bidi Leaves (Tendu)
Agriculturist Any Registered Person
3._| Tobacco Leaves Agriculturist Any Registered
4. | Silk Yarn Any person —_ who | Any Registered Person
manufactures silk yarn
from raw silk
5. |Supply of lottery State
Government, | Lottery distribu
Union Territory or any | selling agent
local authority ‘non assessee online recipient,
Services provided by Goods | Goods
Transport Agency (GTA) in| Agency
respect of transportation of
goods by road.
ae
ae sah Rao
of advocates by way of legal | advocates:
services, directly or indirect,
| Services provided by a director | Director ofacompany
‘of a company or a body | orabody corporat
“corporate. dees
Bag ay of areportaticn A person located in } The Customs
of goods by ship/boat/vessel | non-taxable territory ’
from a place outside India up to | to a person located in| *
the Customs station of clearance | non-taxable territory.
an f R402 i Shivdas DELHI UNIVERSITY SERIES
fy Thavi i fies, In a composite supply, it wouldn't
ie Fe ee ecary pari separately from the principal supply ea
sence 10 ors towels provided along with a hotel room). In a mixed supply.
areve could be sold separately (or instance, a grocery bundle containing
fan assortment of snacks and drinks). a a
i : Gift hampers containing chocolates and a toy,
mee ee Seer: Resin that serves both food and drink,
Sale of car with insurance and maintenance service,
‘A wedding package that includes photography,
decorations and catering,
a 3(a), 2022 (Nov-Dec). [Page P-86
(aie of Be ioaee exempt as per Notification No. 12/2017 amendeq
up to date: ¢ 7
(i) Target IAS, an Educational Institute which provides education for preparation
of Indian Administrative Service Examination conducted by UPSC, Govt, of
India is not exempt by notification No. 12/2017. a
Notification No. 12/2017 exempts Educational Institutions providing
education, .
Educational institution means an institution providing services by way of ~
( pre-school education and education up to higher secondary school or
equivalent; (ii) edtication 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. :
So, the notification does not include a coaching institute providing such
education.
(i) Notification 12/2017 does not allow any exemption to Mr. Anubhav Mittal
who hires a non-air conditioned bus from Shubham Travels for organizing a
religious tour from Delhi to Uttarakhand.
Q.2. Answer each of the following questions
(a) Discuss whether or not the following activities would be treated as Supply
of goods/services under Section 7 of CGST Act 2017 read with schedules. 10
() Anandi Manufacturers have a factory at Sonepat, Haryana and warehouse
at Delhi. Both these establishments are registered in the respective states.
Finished goods are sent from the factory to the warehouse.
(ii) Jayant is a businessman in Delhi. His brother is a well-known Barrister in
London. Jayant took legal advice from his brother regarding his business
dispute free of cost.
(iif) Miss Sonia received architecture services for her residence at New Delhi
_. from Mr Richard (renowned architect) resident of the USA for $5,000.
(#2) A doctor got his haircut and other massage services from a barber and in
return provided him an OPD visit for free,
(©) Alok Ltd during the financial year 2022-2023 provided gifts worth %60,000
to its executive full time employee Mrs Palak Tyagi.
(6) Make a comparison among Electronic Cash ;
and Electronic Liability Register, Ledger, Electronic Credit Ledger
Example of Composite Supply: GOODS & SERVICES TAX (GST) & CUSTOMS LAW.
Ans. (a) (i) As per Schedule I of CGST Act, suppl
between related persons or between distinct
considered as Supply even without considera
or furtherance of business,
Further where a person,
2024 (MAY) Gr. No, 507) @ P4O3 !
ly of goods or services or both
Persons, as per Section 25, shall be
tion, Provided, it is made in the course
who has obtained or is r
" equired to obtain registration i
a sate in respect ofan establishment has an establishment in another ste, the auch
establishments shall be treated as establishments of distinct Persons. In view of the
same, factory and warehouse of Anandi Manufacturers are establishments of two
distinct persons.
Therefore, supply of goods from Sonepat factory of Anandi Manufacturers to
Delhi Warehouse without consideration but in course furtherance of business shall
be considered as Supply under Section 7 read ‘with Sch
: edule I of the CGST Act.
(di) As per Section 7(1)(b) of the CGST Act, import of service, for a consideration
whether or not in the course or furtherance of business, is ‘supply’ and subject to
GST. Also as per entry no. 4 of Schedule 1 to Section 7(1)(c) of CCST Act, ‘supply’
even if made without consideration includes import of services by a person froma
related person or from any of his other establishments outside India, in the course or
furtherance of business.
Therefore, legal advice received by Jayant for his business from his brother who is
a barrister in London, will be considered as supply.
(iii) Import of service means where:
(@) Supplier of service is located outside India,
(b) Recipient of Service is located in India.
(0) The place of supply of service is in India.
Taxability of Import of Service under GST includes the following:
(a) Import of service for a consideration whether or not in the course or
furtherance of business [Section 7]
(®) Import of service without consideration by a taxable person from related
person or from any of his establishment outside India, in the course or
furtherance of business [Schedule I to CGST Act].
Therefore, architecture Services received by Sonia from USA shall be considered
as supply of service.
(@) As per Section 7(1) of the CGST Act, Supply includes all forms of supply of
goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease
or disposal made or agreed to be made for a consideration by a person in the course
or furtherance of business. :
So, service of haircut by barber and OPD service by doctor are for the furtherance
of their respective business through a barter system, therefore, it fall under definition
of supply.
(2) In accordance with Section 17(5) of CGST, gift from employer to employee is’
exempt from applicability of GST upto %50,000 per year. 2
So, in the Ba Bui GST wil be applicable on the value of gift above %50,000/-
ie. GST will be applicable on 210,000 i.e. (€60,000 - 50,000). Format in which | Relevant Provisions | Particulars
Ledgers/Registers Ledger/Register -
are maintained "
Form GST PMT-05 | Section ei the
Ledger r ~ | Central Gor and
4 Services Tax Act,| of tax, intere
2017 read with rule | penalties under
87 of the Central | or any other
It
will
Goods and Services| by the r
Tax Act, 2017. person.
Electronic Credit.| Form GST PMT-02 | Section 49(2) of the | It will reflect the
Ledger Central Goods and | claim of an input
Services Tax. Act,| tax credit of ‘the
2017 read with rule | registered person.
86 of the Central
Goods and Services
Tax Act, 2017. lo
Electronic Liability | Form GST PMT-01 | Section 49(7) of the | It will reflect the
“Register Central Goods and | amount of fax,
Services Tax. Act, | interest, penalty, fee
2017 read with rule | or any other amount
85 of the Central | which the registered
Goods and Services | person is liable to
Tax Act, 2017. pay. 3
Or
(a) ABC Pvt. Lid, a registered supplier, provides the following information
relating to goods supplied to POR Pvt. Ltd. ;
S.No. Particulars
_ 4. © |Price of the goods
Note: Price of the goods is net of subsidy received
‘Subsidy received from Sri Venkateshwara Trust which is directly linked to the
goods supplied
Weighment charges paid by POR Pvt. Ltd to Radhe Ltd. on behalf of ABC Pvt. Ltd.
Penalty for delayed payment
Discount offered after the sale effected
Sas iae es attributable to the discount amount not reversed by the PQR Pvt. Ltd.) Amount @)
Price of Goods (Net of
Subsidy received)
100,000
Subsidy received from
Sri Venkateshwara
Trust which is directly
‘linked to the goods
supplied
40,000
As per Section 15 of CGST Act,
subsidies directly linked to the price
excluding subsidies provided by
the Central and State governments
shall be included in value of supply.
Since transaction value is net of
subsidy, it will not be deducted or
added back.
Weighment charges
Paid by PQR Pvt. Lid.
To Radhey Ltd. On
behalf of ABC Pvt. Ltd,
10,000
As per Section 15 of CGS
| mount that the supplier
to pay in relation to
but which has been
_| the récipient of the ‘supply
incliided in the price acti
or payable for the g
services shall be included in
Penalty of Delayed
Payment
8,000
As per Section 15 of CGST Act,
‘|interest or late fee 6r penalty
for delayed payment of any
consideration for any supply shall
be included in value of supply.
Discount offered after
the sale effected (input
tax credit attributable.
to the discount amount
Not reversed by the
POR Pvt. Ltd.
9,000
As per Section 15 of C
| The value of the suy TAs per Section 15 of (
incidental ‘expenses, such as,
commission and packing, charged
by the supplier to the recipient of
a supply, including any amount
charged for anything done by the
supplier in respect of the supply of
goods and/or services at the time
of, or before delivery of the goods
or, as the case may be, supply of the
services shall be included in value
of supply.
As per Section 15 of CGST Act,
subsidies directly linked tothe price —
7. | Subsidy received from | 15,000
ts
ae excluding subsidies provided by -
the Central and State governments %
shall be included in value of supply. —
Since transaction value is net
: : subsidy, it will be added back. _
8. Tax and cesses levied | 12,000 As per Section 15 of CGST Act, ~
by the Municipal any taxes, duties, cesses, fees and ~
Authority charges levied under any statute, —
other than the {SGST Act/the CGST
‘Act} and the Goods and Services ~
Tax (Compensation to the States —
for Loss of Revenue) Act, 2016, if ~
charged separately by the supplier
to the recipient shall be part of value
of supply.
~, Value of Taxable Supply = (1) + (3) + (4) + (6) + (7) + (8) ¢
gine a San e £10) 000 + %8,000 + 24.000 315,00
= 149,000
othe -value of taxable supply made by AB
(b) (i) Credit and Debit Note. See ‘Q- mance te, s POR Pvt ‘td
_ @) E-way Bill: See Point 5.4, Chapter 5.
Tax invoice: See Q. 1, Chapter 4.
each of the following questions: 5
‘time of supply om the folleving iste
of Receipt of Date { of Pay it is
a er
pptenl GOODS & SERVICES Tax (C50 & CUSTOMS LAW ~2004 (MAY) (.No:507) mPLAO7"
4, | August Payment entered in the | July 28
books of account on July 29 ;
and debited in the recipient
bank account on July 25
Payment entered in the |Juned a
books of account on june 28
and debited in the recipient
bank account on June 30
6. _ | September 2 September 10 July 27
(0) Ms. Shelija Associates is a registered taxpayer under composition scheme.
Her turnover during the financial year was as follows:
5. |july5
S.No. Particulars of Supply Value of Supply @) Rate of GST
1. _| Supply of Manufactured Goods 25,000,000 18%
2. | Supply of Traded Goods 30,00,000 12%
3. | Supply of Exempted Goods 7,00,000 NIL
Compute the total tax liability under composition scheme if the firm fulfills all
the conditions pertaining to the composition scheme. 5
Ans. (a) In case of reverse charge, the time of supply for goods shalll be the
earliest of the following dates:
* the date of receipt of goods
+ the date of payment
* the date immediately after 30 days from the date of issue of an invoice by the
supplier
If it is not possible to determine the time of supply, the time of supply shall be the
date of entry in the books of account of the recipient.
So, Time of supply in the following cases is as follows:
S.No. | Date of Receipt | Date of Payment by| Date of issue | Time of Supply
of Goods the recipient of goods | of invoice by
the supplier
1. | August 1 September 10 July 29 August 1, since this
date is earliest of the
three dates.
2 |June1 May 26 May 29 May 26, since this
date is earliest of the
three dates.
3. |September1 | Part payment on | August 28 August 29, since this
August 29 and date is earliest of the
balance amount on three dates.
September 10
4. | August 5 Payment entered in | July 28 July 25, since this —
the books of account date is earliest of the
onJuly 29 and debited three dates.
in the recipient bank
account on July 25 Payment entered i
inthe
‘books of account on July 8
and debited in the recipient
bank account on July 25
Payment entered in the
‘books of account on June 28
and debited in the recipient
bank account on June 30
September 10 July 27
—_
(0) Ms. Shelija Associates is a registered t —-
Her turnover during the finantlal year was as fliers ee
—%. _| September 2
S.No. Particulars of Supply Value of Supply @) | Rate of GST
T_| Supply of Manufactured Goods 25,000,000 18%
} >, | Supply of Traded Goods 30,00,000 12%
3, | Supply of Exempted Goods 7,00,000 NIL
Compute the total tax liability under composition so z
the conditions Pein to the compost schanie te na
‘Ans, (a) In case of reverse charge, the time of
arliest Be following dates supply for pond
* the date of receipt of goods
+ the date of payment
+ the date immediately after 30 days from the date of issue of an invoice by the
supplier 7
Ifitis not possible to determine the time of supply, the time of supply shall be the
date of entry in the books of account of the recipient.
> So, Time of supply in the following cases is as follows:
$.No, | Date of Receipt | Date of Payment by| Date of issue | Time of Supply
of Goods the recipient of goods | of invoice by
the supplier
1, | August 1 tember 10 July 29 ‘August 1, since this
. ree date is earliest of the
three dates,
2 1 May 26 May 29 May 26, since this
te e * date is earliest of the
three dates.
29, since this
3. | September 1 Part payment on| August 28 August 29,
2 August 29 and eo earliest of the
balance amount on three dates. 4
September 10 z!
4. tered in| July 28 July 25, since this
| August 5 Payment ent Joly 2 ref the
the books of account taeda
on July 29 and debited
in the recipient
account on July 25 SERIES
108 m Shivdas DELHI ‘UNIVERSITY
i 1
Payment entered in June haa
Bae ar the books of account Bis He Pas
onjune2sand debited ates cares oft
in the recipient bank dates, |
: account on June 3
ber 10 July 27 26h A
G. |September2 | Septem om
J 30 days from date 8
invoice, of
a
with an annual aggregate turnover up to 1.5 crore can
tan nA a6 and this amount is <75 Lakh in special states, OPt for the
is Calculation of Annual turnover of Shelija Associates
S.No. Particulars aaa
7, | Supply of Manufactured Goods to
2. _| Supply of traded goods pe
3, _ | Supply of Exempted Goods : ai
Turnover 7H 00)
‘Thus, in the given case, Shelija Associates is registered Taxpayer under composition
ancial year is exceeding %1.5 crore limit
scheme but its turnover during the fini
So, it breaches the threshold limit of Composition scheme and shall not be taxed
according to the Composition scheme.
Dut assuming that correct figure is €25,00,000 (due.to. printing mistake), then
Turnover shall be as follows: (iii) For
S.No. Particulars “Amt. @) records is
7 Supply of Manufactured Goods B00 Therefc
2. | Supply of traded goods 2.00.00 on record
3, _ | Supply of Exempted Goods Togo Nature
Turnover 62,0000 (iv) In.
This firm should opt for Composition scheme ; ae giv
Composition Tax will be as'0.5% of Turnover under CGST and 0.5% of Tumover aoe
under SGST viz;
“4 CGST (%62,00,000 x 0.5%) = 31,000
SGST (%62,00,000 x 0.5%) = 31,000
Total Tax payable 62,000
Or
(@) Determine the place and the nature of supply in the following #
@ Me A of Kanpur supplied goods to Mr, B of Delhi, When
ear, Mr B instructed Mr. A to deliver the goods
(i) her of inion Delhi boards the train at Jaipur with certain
ins at B lew Delhi. He sells the goods taken on bo
(ii) An at Gurugram during the journey.
ap sean restos from Mumbai travels by
pied gees ‘Ihi. and gets his travel insurance d
i place of supply of insurance services? GOODS & SERVICES TAX (GST) & CUSTOMS LAW=2024 (MAY) (Gr. No, 507) P-109°
(i) ABC Ltd, registered in Haryana, received legal services from an attorney
in the USA (unrelated person) in relation to registration of a trademark
in the USA. A consideration of $10,000 was paid by the company to the
attorney in the USA,
(0) Mr. A travels from Varanasi (UP) to Patna (Bihar). Mr. A is a registered
person in Delhi.
(&) What are the eligibility criteria for availing the Input Tax Credit (ITC)? 10
Ans, (a) Place and nature of supply are as follows:
(@ Section 10(1)(6) of IGST Act states that where the goods are delivered by the
supplier to a recipient or any other person on the direction of a third person, whether
y acting as an agent or otherwise, before or during the movement of goods, either by
way of transfer of documents of title to the goods or otherwise, it shall be deemed
that the said third persori has received the goods and place of supply of stich goods
all be the principal place of business of such person.
Therefore, in the given case, place of supply will be Delhi,
Nature of Supply —Inter-state
(Gi Section 10 (1) (e) of IGST Act states that where the goods are supplied on board
a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of
supply shall be the location at which such goods are taken on board.
Therefore, in the given case, Place of Supply shall be Jaipur at which goods were
taken on board and Nature of Supply will be Inter-state i.e, Delhi to Jaipur.
(i) For non-registered recipients, the location of the recipient of services on the
records is the place of the supplier of services.
Therefore, Place of Supply will be Mumbai, the address of unregistered person
mn records.
Nature of Supply: Inter-state ie. Gujarat to Mumbai
(2) In case of import of service, place of supply of service should be in India. But
in the given case place of service is outside India, hence no supply. It will be non-
GST supply.
(©) Mr. A takes travel service from Varanasi to Patna where he is an unregistered
Person. So, Place of Supply will be the location where the passenger embarks (starts)
on the mode of transport for a continuous journey,
Nature of service will be inter-state.
(b) See Q. 4, Chapter 3, [Page 51
Q. 4. Answer each of the following questions:
(@) Mr Ajay, a supplier of goods pays GST under normal scheme. The following,
information is available for a tax period.
(i) The Input Tax Credit (ITC) at the beginning of the tax period:
CGST 235,000
SGST 25,000
IGST %85,000
(ii) The Purchases made during the tax period:
Inter-State Purchases of goods %60,000
Intra-State Purchases of goods %330,000
(iii) The outward taxable supplies during the tax period : Inter-State Supply of
goods %4,00,000. Intra-State Supply of goods %7,80,000. P-110 @ Shivdas DELHI UNIVERSITY SERIES
Compute the Net GST payable. The rate of CGST, SGST and IGST to be @ 9%,
@ % and @ 18% respectively. 5
(0) Shivam Enterprises operating in multiple locations i.e, Assam, Uttarakhand
and Tripura. It furnishes the following information regarding its supply.
Particulars ‘Assam | Uttarakhand | Tripura
@ @. @
Intra State Supply of goods % 00,000 =| 990000
Intra State Supply of Exempted goods - =| 7,00,000
Intra State Supply of Non-axable goods = 20,10,000| 80,000
You are required to answer the following: 10
( Whether Shivam Enterprises is liable to be registered under any of the
provisions of the GST law.
(i) Whether your answer would be different in the following independent
cases:
1. If Shivam Enterprises is dealing exclusively in taxable supply 6f goods
only from Assam.
2. If Shivam Enterprises is dealing exclusively in taxable supply of goods
and services only from Assam.
3. If Shivam Enterprises is dealing exclusively in taxable supply of
goods only from Assam and also affected supply of goods to Haryana
amounting to %14,00,000.
Sol. (a) Computation of Net GST Payable:
Particulars CGST @) SGST @) IGST@
TiCatthe beginning — 35,000 25,000) 85,000
‘Add: ITC of Purchases durin the tax period 29,700 29,700) 10,800
(€3,30,000 x 9%) | (€3,30,000 x 9%)|_(@60,000 > 18%)
Total ITC for tax period 64,700 54,700 95,800
‘Outward tax payable on taxable supplies (70,200) (72,000)
(77,80,000 9%) | (@4,00,000 x 18%)
GST Payable 64,700 (15,500) 23800
IGST on inward supply 23,800 =| (23,800)
88,500
CGST on inward supply (adjusted) (70,200)
(7,80,000 x 9%)
Balance 18,300 (15,500) =
CGST (INPUT) 18,300
SGST to be paid = 75,500
(b) As per GST law, “aggregate turnover” refers to the aggregate value of all
taxable supplies (excluding the value of inward supplies on which tax is payable
by a person on Reverse Charge Mechanism (RCM) basis), exempt supplies, exports
‘of goods or services or both and inter-state supplies of persons having the same
Permanent Account Number (PAN) is computed on an all-India basis.
With effect from 1st April 2019 threshold for getting GST registration has been
increased as follows to %40 lakh in case of goods, for normal states and it is €20 lakh
for special states.
te ‘GOODS & SERVICES TAX (GST) & CUSTOMS LAW =2024 (MAY) (Sr. No. 507) P4441
i states who opted for €40 lakh limits are: Assam, Jammu & Kashmir and
Special states who opted for #20 lakh: Tri ades
Bs : : Tripura, Uttrakhand, Arunachal Pradesh,
Manipur, Meghalya, Mizoram, Nagaland, Sikkim, Puducherry.
(+ As per above definition of aggregate turnover and increased threshold,
Shivam Enterprises is not liable to get GST registration since aggregate
turnover in Assam is less than %40 lakh in Tripura. The firm is not
required to get registration.
* In Tripura, aggregate turnover is %9,90,000 + %7,00,000 (Supply of Non-
taxable goods will not be included) = %16,90,000.
* In Uttrakhand, as there is supply of only Non-taxable goods, there is no
obligation for registration.
Now, if it is assumed that this question is based on previous threshold
limit i.e. $20 lakh for normal and 10 lakh for special states, the answer
will be as follows:
In Assam~It is required to get GST registration.
Uttrakhand—It is not required to get registration as the firm makes
supplies only of non taxable goods. .
Tripura— Aggregate Turnover is more than %10 lakh, the firm is
required to get GST registration.
(é) 1. If Shivam Enterprises is dealing exclusively in taxable goods im Assam,
the firm is required to get registration in Assam before applicability of
notification effective from 1s April, 2019 and in new notification ie. wef
1s April, 2019, not required to get registration.
. If the firm is dealing exclusively in taxable supply of goods and services
only in Assam, it is required to get registration.
If Shivam Enterprises is dealing exclusively in taxable supply of goods
only in Assam and also affected supply of goods to Haryana amounting
to %14,00,000, then as per new notification the firm is not required to get
registration and in old notification, it was required to get registration in
Assam.
N
»
Or
(a) Explain the provisions regarding apportionment of Input Tax Credit (ITC) as
contained in the CGST Act 2017 read with relevant rules. 10
(b) Is it permissible for the principal to affect the supply directly from the
premises of a job worker? If yes, what conditions are required to be fulfilled? 5
Ans. (a) Explain provisions of apportionment of Input Tax Credit:
See Q. 6, Chapter 3. oat i ’ rage 83
(b) The facility of supply of goods by principal to the third party directly:
the premises of the job worker on payment of tax in India likewise with or without
payment of tax for export may be availed by the principal on declaring the |
of the job worker as his additional place of business in registration. In
worker is a registered person under GST, even declaring the premises
worker as additional place of business is not required.
Before supply of goods to job worker, principal would Ly
Jurisdictional Officer containing the details of Seecripaniae ne
sent by the principal and the nature of processing to be