Application Assignment(Theme: GST) (15 Marks)

(Submission in word doc only)

1. ‘MosquitoMos’ is a product which is pitched by the manufacturer ‘MosquitoMed’ in its

sale material and advertisements as a mosquito repellant. Various mosquito repelling
qualities are identified as defining characteristics of ‘MosquitoMos’ in the market.

Medical practitioners usually do not prescribe ‘MosquitoMos’ as a medicine. The sale of

‘MosquitoMos’ is not restricted and it is sold on-demand at the counters in various
shops. The sale of ‘MosquitoMos’ is not restricted to chemists/druggists.

‘MosquitoMos’ is a mosquito repellant by virtue of its mosquito repelling characteristics

and is so understood in common parlance. The dealers identify and sell the product as
a mosquito repellant and customers purchase it and use it as a mosquito repellant.

Pertinently, the active ingredient of ‘MosquitoMos’ is DEET and the essential quality of
DEET is mosquito repelling.

‘MosquitoMed’ has classified ‘MosquitoMos’ as a medicament and not as a cosmetic.

Thus, MosquitoMed is eligible to GST lower than 18%.

In your view, ‘MosquitoMos’ should be classified as a medicament or as a cosmetic?

Support your view with reasons. (5 m)

2. Discuss whether GST would be payable in following independent cases: (10 m)

a) A Company Secretary makes payment of LLP Registration fees of Rs. 4,000/- on

behalf of their clients and charges the client his professional fee of Rs. 12,000/-
along with expenses of Rs. 2,000/- incurred in form of payment to Registrar of
Companies.

b) A company provides Subsidized Meal facility to employees. It pays Rs. 100/- per
plate to the caterer and deducts Rs. 20/- per plate from the employee’s salary.