Indirect Taxation (403 FIN)

Goods and Services Tax (Problems)

1. Janaki Traders supplied goods @ Rs 11,500. Janaki Traders received goods valued at Rs.
10,000. The supplier has charged GST in his invoice. State Tax (SGST) and Central Tax (CGST)
rate on supply of goods is 9% each. Calculate the tax payable by Janaki Traders.

2. Jayesh Traders supplied goods @ Rs 7,500. Jayesh Traders received goods valued at Rs.
10,000. The supplier has charged GST in his invoice. They sold 60% inputs procured and
balance 40% were in stock. State Tax (SGST) and Central Tax (CGST) rate on supply and
purchase of goods is 9% each. Calculate the tax payable to Jayesh Traders.

3. Deepa Manufacturers are manufacturers of drugs. State Tax (SGST) and Central Tax (CGST)
rate on supply of goods is 2.5% each. They sold the goods @ Rs. 10,000. They purchased inputs
@ 6,500. The State Tax (SGST) and central Tax (CGST) rate on inputs is 6% each. All these
inputs were used in manufacture of final products. There was no opening or closing stock of
inputs or final products. Calculate the tax payable.

4. Compute GST liability of ABC Ltd. On the basis of following information for the month of
January, 2018:

i) Purchase of material (GST @ 5%) Gross Rs. 21,00,000.

ii) Other expenses towards manufacturing and administration Rs. 5,00,000.

iii) Profit on sales @ 20%.

iv) Finished goods is subject to 5% GST.

5. Mohan Manufacturers are manufacturers of machinery. State tax (SGST) and Central Tax
(CGST) rate on supply of goods is 9% each. They sold the goods within India @ Rs. 3,500. They
exported goods for Rs. 6,500. They purchased inputs @ Rs. 7,000. The State Tax (SGST) and
Central Tax (CGST) rate on inputs is 9% each. All these inputs were used in manufacture of final
products. There was no opening or closing stock of inputs or final products. Calculate the tax
payable. (It is assumed that the goods are sold within State.)

6. A manufacturer of stationery procures input goods and services within State - Rs.1000. SGST
and CGST rate on receipts is 9% each. He manufactured two products out ofinputs. One product
of value of Rs. 800 was subject to SGST and CGST @ 9% each. Other product of value of Rs.
800 was exempt from SGST and CGST. Compute the tax payable.

7. Value of supply of goods of a perfume trader in inter State is RS. 1,200. IGST rate on supply
of goods is 18%. Value of receipt of goods and services within State is Rs. 1,000. SGST and
CGST rate on receipts is 9% each. Calculate tax payable.

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8. Value of supply of goods and services of a manufacturer in inter-State is Rs. 200. Value of
supply of goods and services of the manufacturer within State is Rs. 1,100. IGST rate on supply
of goods and services is 18%. Value of receipt of inputs within State is Rs. 1,000. SGST and
CGST rate on receipts is 9% each.

9. Value of supply of goods and services of manufacturer in inter-State is Rs. 700. Value of
supply of goods and services within State is Rs. 600. IGST rate on supply of goods and services
is 12%. CGST and SGST rate is 6% each. Value of receipt of goods and services within State is
Rs. 1,000. SGST and CGST rate on receipts is 6% each. Calculate tax liability.

10. Value of supply of goods and services of a footwear trader within State is Rs. 1,200. SGST
and CGST rate on supply of goods and services is 9% each. Value of receipt of goods and
services inter-State is Rs. 1,000. IGST rate on receipts is 18%. Calculate tax payable.

11. Value of supply of goods and services within state is Rs. 1,200. SGST and CGST rate on
supply of goods and services is 6% each. Value of supply of goods exported is Rs. 600. Value of
goods and services inter-State is Rs. 2,000 IGST rate on receipts is 12%. Calculate tax payable.

12. Value of supply of goods and services in inter-State is Rs. 1,400. Value of receipt of goods
and services inter-State is Rs. 1,000. IGST rate on receipts is 28%. Calculate tax payable.

13. M/s. Shivam is engaged in the business. Following are the details of his sales and purchases
for the month of March, 2018:

Particulars Rs.

Net sales 2,00,000

6% CGST 12,000

6% SGST 12,000

OMS sales 1,50,000

12% IGST 18,000

Total sales 3,92,000

Net purchases 2,20,000

6% CGST paid 13,200

6% SGST paid 13,200

OMS purchase 2,00,000

12% IGST paid 24,000

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Stationery (URD purchase) 1,000

Stationery purchased (supplier is registered under composition scheme) 700

Stationery (RD purchase) 600

6% CGST paid on stationery 36

6% SGST paid on stationery 36

Computer purchased 35,000

9% CGST paid 3,150

9% SGST paid 3,150

Total purchases 5,14,072

Compute the GST payable.

14. M/s Quality Foods and Beverages manufacture packed foods. During March 2018 the
company sold 20,000 packets to its dealers. The MRP is Rs. 20 each. However the company
gives discount of 25%. Calculate the transaction value and taxability if applicable tax rate is 9%
each for CGST and SGST. (SPPU, May 2018)

15. A dealer selling consumer goods to retailer costing Rs. 1,00,000. The freight charges of Rs.
5,000 are paid by the retailer. What would be the transaction value and GST? (CGST and SGST
5% each). (SPPU, May 2018)

16. M/s Shivam Electronics, a registered dealer under GST, imported goods worth Rs. 1,00,000
and incurred expenses to produce final saleable goods. Basic customs duty on imports was
chargeable @ 10%. These manufactured goods were sold within state at Rs. 4,50,000 plus
applicable GST. Rate of CGST and SGST is 5% and each. Compute cost of imported goods and
GST payable and sales value. (SPPU, May 2018)

17. Hyundai Cars Ltd. sells a car worth Rs. 5,00,000 Ujjawal Automobiles. Hyundai Cars Ltd.
incurred packing charges of Rs. 6,000 on the car. Hyundai Cars Ltd. provided a discount of 1%
on the car price, as part of Diwali scheme.

Hyundai Cars Ltd. agreed to provide a further discount of 0.5% if Ujjawal Automobiles makes
payment by 31st of the month via-net banking. Ujjawal Automobiles makes the payment by 31st
of the month using net banking. Find the Net GST Liability in the hands of Hyundai Cars Ltd.
Application rate of GST 18%.

18. i) Ramesh makes supply of Rs. 2,00,000 to Suresh. The contract provides that Suresh will
pay Rs. 50,000 to Ramesh and Rs. 1,50,000 to Aadesh to settle the debt of Ramesh. Find the

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transaction value and GST liability in the hands of Ramesh. Applicable rate of CGST and SGST
9% each.

ii) Anjan goes to shop of Optonica Television. He pays amount of Rs. 50,000 as consideration
for 52 inches LED TV purchased plus GST, where MRP of the product is Rs. 65,000. Discount
offered to all buyers is Rs. 15,000. Calculate valuation as per transaction value basis. Assume
applicable rate of GST 28%. (SPPU, Nov./Dec. 2018)

19. Admission to Apollo Theater is Rs. 120 per ticket for a Marathi Movie as well as for a Hindi
Movie plus entertainment tax 5% on Marathi Movie and 10% on other languages. In the month
of November, Apollo Theater sold 1,000 tickets of Marathi Movie and 500 tickets of Hindi
Movie. Find the value of taxable supply of service. Applicable rate of GST 18% and 28%. Find
the GST liability if any. (SPPU, May 2019)

20. M/s. Akshay Ltd. is engaged in doing job work for M/s. Rajesh Ltd. M/s. Rajesh Ltd.
supplies raw material for Rs. 2,00,000 and packing material for Rs. 22,500 to M/s. Akshay Ltd.
for completion of job work. Ms. Akshay Ltd. has agreed to supply services for the purpose of
performing the activities specified by M/s. Rajesh Ltd. for Rs. 1,00,000. Job worker profit of Rs.
70,000 and material consumed for Rs. 3,500. Find Transaction value (i.e. sale consideration) to
levy GST in tne hands of M/s. Akshay Ltd. (SPPU, May 2019)

21. Raj & Co. furnishes the following expenditure incurred by them to find the transaction value
for the purpose of paying GST.

Particulars Rs.

a) Direct Material Cost per unit 800

b) Direct Wages 250

c) Other Direct Expenses 100

d) Indirect Material 75

e) Factory overheads 200

f) Administrative overhead 25

g) Quality control 25

h) Sale of scrap Realised 20

i) Actual Profit Margin 15%

Find the value for the purpose of payment of GST as per rule 30 of the CGST Rules, 2017.
(SPPU, Nov./Dec. 2019)

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22. Mr. Ajay makes supply of Rs. 3,00,000 to Mr. Vijay. The contract provides that Mr. Vijay
will pay Rs. 75,000 to Mr. Ajay and Rs. 2,25,000 to Mr. Sanjay to settle the debt of Mr. Ajay.
Find the transaction value and GST liability in the hands of Mr. Ajay. Applicable rate of CGST
and SGST 9% each. (SPPU, Nov./Dec. 2019)

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