GST PRACTICAL QUE.

(VOL – 4) CA VIVEK GABA

MOST IMPORTANT QUESTIONS (Don’t Miss)

Practical Question of GST ( VOl – 4)
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Question 1:
M/s Raghvan Corporation Pvt. Ltd., A registered dealer in Chennai furnishes the
following information for the month of November, 20xx.
(a) Intra-state sale of taxable goods (out of above, 50,000 was received as advance in
October 20xx): 2,00,000
(b) Goods purchased from unregistered dealer (purchased on 25th November, 20xx)
(10,000 in case of inter-state & balance intra state trade): 50,000
(c) Received for services by way of labour contracts for repairing a single residential
unit (it is intra state transaction): 50,000
(d) Professional fees paid to Mrs. Yamini located in a non-taxable territory (an inter-
state transaction): 50,000

Compute the GST liability (CGST, SGST or IGST, as the case may be) of M/s
Raghvan Corporation Pvt. Ltd. for the month of November 20xx. Assume the rate
of GST as: CGST 9%, SGST 9%, IGST 18%.
Note: Turnover was Rs. 2 crore in the previous financial year.

Answer:
CGST : 22,500, SGST: 22,500, IGST: 9,000.
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 2:
ABC Ltd., a registered person supplying taxable goods in the following manner:
Particulars Rs.
Inter-state supply of goods 13,00,000
Intra-state supply of goods 18,00,000
Inter-state purchases 1,50,000
Intra-state purchases 13,00,000
ITC at the beginning of the relevant tax period
CGST 1,30,000
SGST 1,30,000
IGST 1,70,000
(a) Rate of CGST, SGST and IGST is 9%, 9% and 18% respectively.
(b) Inward and outward supplies are excusive of taxes.
(c) All the conditions necessary for availing input tax credit have been fulfilled.
Compute the net GST payable by ABC Ltd. during the tax period. Make suitable
assumptions.

Answer:
CGST: Nil, SGST: Nil, IGST: Nil.

Question 3:
An interior decorator designs and renovates the office of Raman in July. The invoice
is to be raised after approval of the work. In the meantime, the rate of tax is changed
on 6th August. Invoice is raised and payment made later in August. What will be the
time of supply?

Answer:
TOS: Date of Invoice or Date of Payment Which Ever is Earlier.
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 4:
Rate of tax is changed on 15th August. Receipt of payment is recorded in the books
of account of the supplier on 12th August. The payment in credited in the suppliers
account on 20th August. The bank was open all days between 15th and 20th August.
What will be date of receipt of payment.

Answer:
Date of Receipt of Payment : 20th August

Question 5:
Piyush supplied goods for Rs. 10,000 to its customer Miss Prerna on 01.05.20xx on
the condition that payment for the same will be made within a week. However, Miss
Prerna made payment for the said goods on 02.06.20xx and thus paid interest
amounting Rs. 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?

Answer:
TOS: 2nd June, 20xx, Mr. Piyush is required to make payment on or before 20th
July, 20xx.

Question 6:
Determine the time of supply from the given information:
May 4 A German company issues email informing its associated company MNO
Ltd. of the cost of technical services provided by it.
July 2 MNO Ltd. transfers the amount to the account of German company
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Answer:
TOS: 2nd July, 20xx.

Question 7:
A firm of lawyers issues invoice for services to MNO Ltd. on 20th March. The payment
is contested by MNO Ltd. on the ground that on account of negligence of the firm,
the company’s case was dismissed by the Court for non-appearance, which
necessitated further appearance for which the firm is billing the company. The dispute
drags on and finally payment is made on 4th December,
Identify the time of supply of the legal services.
Note: Above service is taxable under reverse charge basis.

Answer:
TOS: 20th July, 20xx.

Question 8:
On 5th October, 2017, Ahsa Bhonsle, a famous music composer, received Rs. 3 crore
consideration from ZEE Music Co. Ltd. for grant of copyright of his original music
album. He finished his work & made available the CD to the music company on 20 th
September 2017 & raised invoice on 25th September 2017. What will be time of
supply as per CGST Act, 2017?
Note: Above service is taxable under reverse charge basis.

Answer:
TOS: 5th Oct, 2017.
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 9:
Determine the time of supply from the given information:
May 4 Supplier invoices goods taxable on reverse charge basis to Pillar & Co.
(30 days from the date of issuance of invoice elapse on June 3)
June 12 Pillar & Co. Receives the goods, which were held up in transit
July 3 Payment made for the goods

Answer:
TOS: 4th June, 20xx

Question 10:
From the following information, determine the time of supply of goods are supplied
on approval basis:
Removal of Issue of Accepted by Receipt of
goods invoice recipient payment
1. 01.12.2018 15.12.2018 05.12.2018 25.12.2018
2. 01.12.2018 15.12.2018 15.12.2018 30.12.2018
3. 01.12.2018 25.07.2019 25.07.2019 30.07.2019

Answer:
TOS:
1. 5th Dec, 2018, 2. 15th Dec, 2018, 3. 1st June, 2019

Question 11:
Raman Associates Pvt. Ltd. purchased machinery worth Rs. 10,00,000 (excluding GST)
on 20.07.2017 on which it paid GST @ 18%. It availed the ITC. On 05.03.2018, it
sold the machinery for Rs. 8,00,000 (excluding GST) to Hindustan Associates Pvt. Ltd.
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

The GST rate is 18%. What will be the course of action for Raman Associates Pvt.
Ltd. to follow under CGST Act.

Answer:
Raman Associates Pvt. Ltd. Is liable to pay amount which is Higher among the Two
i.e. 1,53,000

Question 12:
C Ltd. has following units:
A: Factory in Hassan, Karnataka; closed from 2017-18 onwards, no turnover.
B: Factory in Tumkur, Karnataka; turnover of Rs. 27 crores in 2017-18.
C: Service centre in Hyderabad, Telangana; turnover of Rs. 1 crores in 2017-18.
D: Service centre in Chennai, Tamil Nadu; turnover of Rs. 2 crores in 2017-18.
C Ltd.’s corporate office functions as ISD. It has to distribute ITC of Rs. 9 lakh for
December, 2018. Of this, an invoice involving tax of Rs. 3 lakh pertains to technical
consultancy of Tumkur unit.
What should be distributed as credit?

Answer:
Rs. 3 Lakh is aattributable to Tumkur unit only
Rs. 6 Lakh is attributable as follows:
 Tumkur : 5,40,000
 Hyderabad: 20,000
 Chennai: 40,000
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 13:
Rashi Ltd., a registered manufacturer demerged its entity into PQ Cement Ltd. and PS
Steel Ltd. The total value of assets of Rashi Ltd. is Rs. 25,00,000 and unutilised
credit on account of CGST, SGST and IGST amounted to Rs. 60,000, Rs. 45,000 and
Rs. 84,600 respectively. The value of assets of PQ Cement Ltd. and PS Steel Ltd. is
Rs. 12,00,000 and Rs. 13,00,000 respectively obtained as per the scheme. Discuss
the eligibility of credit transferred to new units on account of demerger.

Answer:
Total Apportioned Credit:
Rashi Ltd.= 1,89,600, PQ Cement Ltd. = 91,008, PS Steel= 98,952

Question 14:
Mr. Chaman, a registered taxable person, was paying tax under composition scheme
upto 30th August. However, with effect from 31st August, Mr. Chaman becomes liable
to pay tax under regular scheme.
Other information:
a) Input a son 30 August for Rs. 3,54,000 (inclusive of GST paid @ 18%)
b) Capital goods purchased for Rs. 5,00,000 (invoice dated 22 April, 2018; GST @
18%)
Find the eligible ITC to Mr. Chaman.
Note: Mr. Chaman not availed depreciation on the GST paid on capital goods.

Answer:
Admissible ITC:
Input = 54,000
Capital Goods = 81,000
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 15:
M/s MNO Driving School Pvt. Ltd. supplied taxable services in the month of October
20xx for Rs. 15 lakhs (plus GST 18%) to provide training on driving. Company
purchased two vehicles for this purpose namely passenger vehicle for Rs. 20 lakhs
plus GST @ 28% and goods vehicles for Rs. 33 lakhs plus 28%. Find the net GST
liability of M/s MNO Driving School Pvt. Ltd.

Answer:
Net Excess ITC C/F : 12,14,000

Question 16:
ST Ltd., a registered manufacturer of Jaipur entered in a contract with supplier for
supply of Input ‘X’ in October, 2017. As per contact, it was agreed that 10,000 kgs of
Input ‘X’ will be supplied for Rs. 7,28,000 (inclusive of CGST and SGST @ 6% each)
in 4 lots. Invoice of 7,28,000 has been issued with supply of first lot of Input ‘X’.
Following further information has been provided regarding supply of Input received in
subsequent lots.
Briefly explain whether ST Ltd. is eligible to take credit on proportionate basis.
Input ‘X’ (in lots) Quantity (kg) Date of receipt of supply
First Lot 2,500 19.10.2017
Second Lot 3,000 21.10.2017
Third Lot 1,500 12.11.2017
Fourth Lot 3,000 01.12.2017

Answer:
No, Credit avail 7,28,000 x 12/112 = 78,000 after receipt of 4th Lot i.e 1/12/2017
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 17:
Anna caterings supply outdoor caterings services to its customers by sub-contracting
the same. Sub-contractor supplied the food items like ice creams, North Indian meals,
South Indian meals and so on to Anna caterings. Sub-contractor raised invoice on
Anna caterings for supply of outdoor caterings Rs. 2,00,000 plus GST @ 18%. Anna
caterings supplied outdoor caterings for Rs. 2,10,000 plus GST @ 18%.
Find net GST liability of Anna caterings.

Answer:
Net GST Liability: 1800.

Question 18:
Mr. Umesh is an air travel agent. Compute the value of supply made by him during a
month from following particulars furnished by him:
Particulars Basic Other charges Taxes (Rs.) Total value
fare (Rs.) and fees (Rs.) of tickets
Domestic bookings 1,00,900 9,510 4,990 1,15,400
International bookings 3,16,800 20,930 15,670 3,53,480
Determine the value of taxable supply of services and GST payable thereon if rate
of GST is 18%. Amounts are exclusive of CGST and SGST.

Answer:
Domestic Bookings: Value = 1,00,900 x 5% = 5,045, CGST/SGST= 5,045 x 9%
International Bookings: Value = 3,16,800 x 5% = 31,688, CGST/SGST = 31,688 x 9%
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 19:
Determine the value of supply and the GST liability, to be collected and paid by the
owner, with the following particulars:
Rs.
Rent on the commercial building 18,00,000
Maintenance charges collected by local society from the owner and reimbursed
by the tenant 2,50,000
Owner intends to charge GST on refundable advance, as GST in applicable
on advance 6,00,000
Municipal taxes paid by the owner 3,00,000
GST rates applicable on renting of business premises is as follows: CGST- 9% and
SGST 9%
Provide suitable explanations when required.

Answer:
Value: 20,50,000, CGST = 1,84,500, SGST = 1,84,500

Question 20:
Hare Ram Pvt. Ltd., a registered dealer, furnishes the following information relating to
goods sold by it to Hare Krishna Pvt. Ltd. in the course of Intra-state:
a) Price of the goods Rs. 1,00,000
b) Municipal tax Rs. 2,000
c) Inspection charges Rs. 15,000
d) Subsidies received from a trust (as the products is going to be used
by blind association Rs. 50,000
e) Late fees for delayed payment (though Hare Krishna Pvt. Ltd. made
late payment but these charges are waived by Hare Ram Pvt. Ltd.) Rs. 1,000
f) Hare Krishna Pvt. Ltd. paid to Taimur Pvt. Ltd. (on behalf of Shri
Ram Pvt. Ltd.); Weighment charges Rs. 2,000
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

According to GST law, determine the value of taxable supply made by Hare Ram
Pvt. Ltd.
Items given in point (b) to (f) are not considered while arriving at the price of the
goods given in point (a).

Answer:
Value: 1,69,000

Question 21:
Ravi, a money changer, has exchanged a US $ 10,000 to Indian rupees @ Rs. 64
per US $. Ravi wants to value the supply in accordance with rule 32(2)(b) of CGST
Rules.
Determine the value of supply made by Ravi.

Answer:
Value: 3,700

Question 22:
Determine the effective date of registration in the following instances:
(a) The aggregate turnover of Sam Ltd., engaged in taxable supply of services in the
state of Punjab, exceeded Rs. 20 Lakh on 25th August 20XX. It applies for
registration on 19th September, 20XX and is granted registration certificate on 29th
September, 20XX.
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

(b) What will be your answer, if in the above scenario, Sam Ltd. submits the
application for registration on 27th September, 20XX and is granted registration on
5th October, 20XX?

Answer:
a) Effective Date of Registration: 25th August
b) Effective Date of Registration: 5th Oct.

Question 23:
Ramesh Dynamics, having its head office in Chennai, carries on the following activities
with respective turnover in a financial year:
Rs.
Supply of petrol at Chennai 18,00,000
Value of inward supplies on which tax is payable on reverse charge
basis 9,00,000
Supply of transformer oil at Chennai 2,00,000
Value of branch transfer from Chennai to Bengaluru without payment of
consideration 1,50,000
Value of taxable supplies at Manipur branch 11,50,000
It argues that it does not have taxable turnover crossing threshold limit of Rs.
20,00,000 either at Chennai or Bengaluru and including turnover at Manipur branch. It
believes that the determination of aggregate turnover is not required for the purpose of
obtaining registration but it is required for determination of composition levy.
Decide based on the above facts:
a) The aggregate turnover of Ramesh Dynamics.
b) All conditions that fulfil the requirements for registration under CGST Act, 2017
in the given circumstances.

Answer:
Aggregate T.O = 33,00,000
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Question 24:
Yamamoto is running a consulting firm and also a fancy store, registered under the
same PAN number*. Turnover of the fancy store is Rs. 65,00,000 and receipt of
consultancy firm is Rs. 10,00,000 in preceding financial year.
You are required to provide answers with supporting explanatory note for each answer
to the following questions:
a) Is Yamamoto eligible for composition scheme under CGST Act?
b) Whether it is possible for Yamamoto to opt for composition scheme only for fancy
store?
c) If Yamamoto is running a restaurant with turnover of Rs. 65,00,000 instead of
consultancy firm as well as a fancy store, would he be eligible for composition
scheme?
*Registered under same PAN = Registered separately, but with same PAN

Answer:
a) Not Eligible to Apply Composite Scheme
b) No
c) Not Eligible

Question 25:
Rahul is an insurance agent of Tata AIG General Insurance Ltd. Commission earned
by him in FY 2017-18 (July 1, 2017 and March 31, 2018) is Rs. 2,50,000 from the
company. Answer following:
a) Is Rahul liable to pay GST on full 20,50,00 or only on 50,000
b) Is Rahul liable to take GST registration?
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA

Answer:
a) Rahul is Supplier, not liable to pay GST.
b) Rahul is Exempted From Registration
GST PRACTICAL QUE. (VOL – 4) CA VIVEK GABA