GST

INTERNAL - II

Name – Ayush Kumar Singh

Division – C
PRN – 18010126240
Email – 18010126240@symlaw.ac.in
Ph. No. - 7310608475
Question – 1

M Ltd. of Bhopal (Madhya Pradesh) is a supplier of machinery. M Ltd. has supplied machinery to
ABC Enterprises in Indore (Madhya Pradesh) on 1st October 2025. The invoice of supply has
been issued on 1st October 2025. M Ltd. and ABC Enterprises are not related and price is the
sole consideration for the supply.

Following information is provided:

Basic price of machinery included all taxes is Rs. 20 lacs. In addition to the basic price, M Ltd.
has collected the design and engineering charges of Rs. 10,000 and loading charges of Rs.
20,000 for the machinery.

M Ltd. provides 1 year mandatory warranty for the machinery on payment of additional
charges of Rs. 1 lac.

M Ltd. has collected consultancy charges in relation to pre-installation planning of Rs. 10,000
and freight and insurance charges from the place of removal to buyer’s premises of Rs. 20,000.

M Ltd. received subsidy of Rs. 50,000 from Central Government for supplying the machinery to
backward region since receiver was located in a backward region. M Ltd. also received Rs.
50,000 from the joint venture partner of ABC Enterprises for making timely supply of machinery
to the recipient.

A cash discount of 1% on the basic price of the machinery is offered at the time of supply, if ABC
Enterprises agrees to make the payment within 30 days of the receipt of the machinery at his
premises. Discount of 1% was given to ABC Enterprises as it agreed to make the payment within
30 days.

The machinery attracts CGST and SGST @ 18% (9% + 9%) and IGST @ 18%.

Compute the value of supply and tax payable under GST. Writing notes including respective
provisions along with the treatment is mandatory. solution

Answer – The answer is handwritten the following pictures are attached below:

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Question- 2

A2X Services Limited, registered under GST, is engaged in providing various services to various
educational institutions. The company provides the following information in respect of services
provided during the month of April 2025:
a. Transportation of students and staff of “ABCD”, a deemed university.
b. Catering services provided to “Rank CBSE School”.
c. Security services provided to “Win CBSE School”, for its annual sports day held at AAI Sports
Complex owned by Government of India.
d. Supply of online periodical science journal to “Merit CBSE School” for its higher secondary
students.
e. Services, in relation to placement of students, to “SKILL”, a Government recognized
vocational training college.

Comment on the taxability or otherwise of the above transactions under GST law. Also state the
correct legal provision for the same.

Answer-

A. The statement will not be exempted because as per the GST rules. Educational
institution up-to higher secondary are exempted as this being a deemed university it
will not be exempted from taxation.
B. In the above given statement the catering services provided to CBSE school is a higher
secondary institution so it will be exempted from taxation.
C. In the above given statement security services provided are outside the institution.
Hence, it will not be exempted from taxation.
D. In the above given statement online periodical science journal up-to higher secondary
are not exempted from tax under the GST rule.
E. In the above given statement the services relates to placement of students and not
education. Hence, it will not be exempted from taxation as per the rules.

We refer to the GST notification no. 12/2017, updated till date.