ICAI MCQs Bank
The Institute's own questions for this paper, reproduced word for word and grouped the way ICAI sets them. Graded instantly, with ICAI's own reasoning as the explanation.
Case Scenarios
54 scenarios · 211 questions
Case Scenario 1
Miscellaneous Provisions under GST
Vidhyut Corporation Ltd. is a Public Sector Undertaking (PSU) engaged in the business of generation of electricity from conventional & non-conventional sources. The Government of India holds 75% equity in the said company & balance equity is held by institutional and domestic investors. The company has taken separate registration under GST in each State where it has business operations. The company has its head office (HO) in Delhi & its power plants are located in the States of Bihar, Odisha & Chhattisgarh. Following transactions were carried out by the company during the month of February: Particulars Delhi H.O. (₹) Bihar plant (₹) Odisha plant (₹) Chhattisgarh plant (₹) Sale of electrical energy to DISCOM -- 2,50,00,000 3,50,00,000 4,50,00,000 Bank interest received on saving bank account & fixed deposit 18,00,000 3,00,000 5,00,000 8,00,000 House rent recovered from the employees for residential accommodation provided to them 55,000 30,000 25,000 40,000 Rent collected from bank, ATM, post office & shops located in office premises 48,000 15,000 12,000 16,000 Sale of metal scrap (covered under Chapter 72) (excluding TCS @ 1% - 85,000 65,000 45,000 © The Institute of Chartered Accountants of India Act, 1961) to Birla Scrappers, unregistered under GST Other Income 2,50,000 - - 45,000 In addition to above information, following transactions were also carried out during the month of February: (1) A supply order for stationery items was awarded by Delhi H.O. to M/s Stationery Mart, New Delhi for ₹ 3,36,000 (including GST @ 12%) in January. The vendor supplied stationery items worth ₹ 44,800 (including GST payment of the said bill in February by crediting the vendor’s account for that amount on the same date in its books. The remaining amount was paid in April on supply of balance items. (2) Odisha plant purchased office furniture for ₹ 2,80,000 during February from an unregistered dealer. Rate of GST on said furniture item is 18%. (3) A Board meeting for raising term loan for project expansion was held in February. The Delhi H.O. paid ₹ 20,000 each as sitting fee to 4 independent directors (all registered under GST) who attended the meeting. Further, it paid ₹ 80,000 to one of these directors, who had rented the office building to Delhi H.O. (4) For safety & security of its H.O. & power plants, the company engaged private security as well as CISF (Central Industrial Security Force). Following payments were made in February, in respect of said services: Particulars Delhi H.O. (₹) Bihar plant (₹) Odisha plant (₹) Chhattisgarh plant (₹) CISF --- 10,00,000 (paid on 7th February) 8,00,000 (paid on 15th February) 14,00,000 (paid on 5th February) © The Institute of Chartered Accountants of India ABS Security Services Pvt. Ltd. 5,00,000 (paid on 11th February) - - - (5) The Bihar plant purchased a machinery in February from M/s Sahoo Enterprises, Patna (not registered under GST) for ₹ 86,000. Full payment was made in February. Rate of GST on the said machinery is 18%. All the amounts mentioned above are excluding GST, wherever applicable (unless otherwise specified). Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 6 below:
0/6 solved
Case Scenario 2
Miscellaneous Provisions under GST
Vardhmaan Limited [hereinafter referred to as ‘company’], registered in Delhi, has operations in multiple States across India. The company has taken separate GST registration in all the States where it operates. During the month of January, 1. The company sold goods valuing ₹ 5 crore from its warehouse located at Kandla Port, Gujarat to a buyer located in Ahmedabad by way of transfer of title in goods. The responsibility of clearance of goods shall be on the buyer. The goods were imported by the company from Vietnam and were not cleared for home consumption since then. 2. The company got a favourable advance ruling order on a particular issue from the Authority for Advance Ruling, Rajasthan. The application was filed by the company through its registered place of business in Rajasthan. 3. The company received an order from the Adjudicating Authority in amounting to ₹ 10 lakh and interest amounting to ₹ 25 lakh was confirmed by the Adjudicating Authority. The dispute in this case was similar to the issue for which a favourable order from Advance Ruling Authority was received by the company in the State of Rajasthan as discussed in para 2 above. The company feels that it has a strong case in the matter before the Appellate Authority. 4. Subsequently, it was noticed that the supplies were not liable to GST and the amount has been wrongly collected by the company from the recipients of supply. 5. A special audit was initiated by the Chartered Accountant nominated by State of Madhya Pradesh. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below: © The Institute of Chartered Accountants of India
0/4 solved
Case Scenario 3
Miscellaneous Provisions under GST
Its retail showroom located in Mumbai as well as two manufacturing units located in Mumbai and Nagpur are registered under same GSTIN under GST in the State of Maharashtra. The company has a manufacturing unit in Bangalore, registered under GST in the State of Karnataka and another retail showroom located in Ahmedabad, registered under GST in the State of Gujarat. The company has provided the following details with regard for the month of October: S. No. Particulars Retail Showroom at Mumbai (₹) Mumbai unit (₹) Nagpur unit (₹) (i) 6,50,000 12,50,000 13,50,000 (ii) Purchase of raw material 12,70,000 11,80,000 (iii) Payment made for security - 1,50,000 1,10,000 (iv) Interest received on fixed deposits with a nationalised bank 1,08,000 (v) Sale of securities [Such securities were purchased for ₹ 2,75,000] 4,50,000 (vi) Sale of agricultural land in the vicinity of the manufacturing plant [Stamp duty was paid on ₹ 1,85,00,000] 1,85,00,000 (vii) Sale of old factory building which was not used anymore [Stamp duty was paid on ₹ 75,00,000] 90,00,000 © The Institute of Chartered Accountants of India Following additional information is provided by the company: 1. In case of Mumbai unit, payment for security services for the month of October has been made to Safe and Secure Solutions Pvt. Limited, a company not registered under GST. For Nagpur unit, the payment for security services for the month of October has been made to Vigilante Solutions, a partnership firm registered under GST. 2. October being Diwali month, the Retail Showroom at Mumbai has sold combo packs of food processors and electric irons at a discounted rate to boost its sales. Each combo pack has been sold at a price of ₹ 6,000. Out of the total sales of Retail Showroom reported in table above, ₹ 1,50,000 is on account of such combo packs. For this purpose, electric irons were specially procured by the Retail Showroom from the market since the company does not manufacture the same. Few electric irons have been sold individually as well. Total sales of such electric irons is ₹ 36,000, which is included in the sales reported in table above. 3. Nagpur unit issued credit notes for ₹ 1,80,000 to its buyers in the month of November towards discount on account of making timely payment. The buyers were aware of such discount at the time of sale in October. discount except one buyer who received credit note for ₹ 23,000. Nagpur November. 4. Further, in the month of December, Mumbai unit received ₹ 3,15,000 as interest on delayed payment of sale consideration from its buyers (GST is separately recovered on same, if applicable). The interest pertains to the goods) of ₹ 12,00,000 in the month of December. 5. Stock valued at ₹ 7,30,000 was transferred from Mumbai unit to Nagpur unit on October 16. Further, stock valued at ₹ 6,80,000 was also transferred from Bangalore unit to Retail Showroom at Ahmedabad on October 22. The same was billed to Ahmedabad Retail Showroom at ₹ 5,00,000. © The Institute of Chartered Accountants of India 6. On October 23, a truck carrying finished goods of the Mumbai unit was intercepted by the proper officer. The proper officer was of the view that the e-way bill was not prepared in accordance with the provisions of the GST law. The truck along with the goods was seized by the proper officer under section 129. The seizure order was passed on October 23 and the same was communicated to Mumbai unit on October 24. For this case scenario, the applicable rate of GST on electric irons procured from the market is 18% and all other remaining goods is 12%. All the amounts Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 6 below:
0/3 solved
Case Scenario 4
Miscellaneous Provisions under GST
BCM Ltd., a public limited company (‘Company’), registered in Uttar Pradesh, is engaged in manufacturing of Product A, Product B and Product C. Product A is Product D procured domestically from local manufacturers. Further, it is engaged in supplying consultancy services. Following information is provided by the Company for the month of January: The Company manufactured Product A and exported 1,000 units of the same worth ₹ 8,00,000 to Germany. The Company supplied Product C of value of ₹ 35,00,000 to Dhriti Ltd. Noida, Uttar Pradesh (including Product C worth ₹10,00,000 supplied to SEZ unit of Dhriti Ltd. in Noida). The Company imported specialised heavy textile machinery from China on 2nd January, with CIF value of ₹ 55,00,000 and FOB value of ₹ 53,00,000. It sold the said machinery for ₹ 62,00,000 in high sea to Swadeshi Textiles, Delhi. While clearing the goods for home consumption, Swadeshi Textiles filed bill of entry for ₹ 63,00,000. After clearing the machinery for home consumption, Swadeshi Corporation sold the machinery to Gargi Industries for ₹ 70,00,000. The Company purchased Product Z for ₹ 10,00,000 from Prism Corporation, Japan on 5th January and directly routed Product Z for supply to Ginsing Corporation, China for ₹ 12,00,0000 on 15th January. concessional rate of 0.1% (IGST) under Notification No. 41/2017 IT(R) dated a manufacturer registered in Maharashtra. Product D was removed on 2nd January from the premises of Shravan Ltd. supplied directly to a registered warehouse. Shravan Ltd. has procured inputs X and inputs Y worth ₹ 1,00,000 Product D. Product D was exported by the Company to Gates Inc. of USA. FOB value of Product D exported is ₹ 8,40,000. © The Institute of Chartered Accountants of India The Company supplied consultancy services to its subsidiary company, XYZ Inc., located and registered in Florida, USA and to its branch office located in San Diego, USA for ₹ 12,00,000 and ₹ 24,00,000 (value of supply in both cases is determined as per rule 28 respectively). Company sold a future derivative contract at NSE (National Stock Exchange) which was due in the month of January, for ₹ 20,00,000. Said contract had no delivery option. Notes: A. Rates of CGST, SGST and IGST on all inward and outward supplies unless otherwise specified are 6%, 6% and 12%. B. All the figures given above are exclusive of GST, wherever applicable. The amounts given in respect of import and export transactions in rupees have been arrived after conversion thereof, though transactions were undertaken in convertible foreign currency. C. BCM Ltd. makes zero-rated supplies under a bond or letter of undertaking (LUT). D. BCM Ltd. wishes to avail all the concessions/benefits/exemptions available under the GST law. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos 1 to 5 below:
0/5 solved
Case Scenario 5
Miscellaneous Provisions under GST
manufacturing units in Kanpur and Agra - both in Uttar Pradesh, a manufacturing unit in Punjab, a retail showroom in Lucknow (Uttar Pradesh) and another retail showroom in Delhi. The company has the policy of obtaining single registration for all places of business located in a State. The company has provided the following details with regard for the month of January: (Amount in ₹) S. No. Particulars Retail Showroom at Lucknow Kanpur unit Agra unit (i) 6,50,000 12,50,000 13,50,000 (ii) - 12,70,000 11,80,000 (iii) Payment made for security personnel services - 1,50,000 1,10,000 (iv) Freight paid to Fleet Wave Cargo, an unregistered Goods Transport Agency - 35,000 40,000 (v) Freight paid to horse cart puller for intra-city transport of goods 5,000 - - (vi) Loading & unloading charges paid to labourer - 4,000 2,500 (vii) Payment to Swift Ride Services Pvt. Ltd. towards rentals of four Innova cars (air conditioned) hired for senior officers of the manufacturing units - 38,000 35,000 (viii) Rent paid to Lucknow Municipal Corporation for the Retail Showroom 3,20,000 - - © The Institute of Chartered Accountants of India (ix) Interest received on fixed deposits with a nationalized bank - - 1,08,000 (x) Fees paid to the State Government for certification relating to safety of workers. Such certification is a statutory requirement for manufacturers of textile products. - 15,000 15,000 (xi) Sale of securities [Such securities were purchased for ₹ 10,50,000.] - 12,00,000 - (xii) Sale of agricultural land in the vicinity of the manufacturing plant [Stamp duty was paid on ₹ 2,20,00,000.] - - 2,05,00,00 (xiii) Sale of old factory building which was not used anymore [Stamp duty was paid on ₹ 81,00,000.] - 96,00,000 - Following additional information is provided by the company: 1. In case of Kanpur unit, payment for security services for the month of January has been made to Guardian Shield Security Pvt. Limited, a company not registered under GST. For Agra unit, the payment for security services for the month of January has been made to Peace Keeper Security Solutions, a partnership firm registered under GST. 2. Fleet Wave Cargo has issued the invoice for goods transportation services on January 05, on Kanpur unit and Agra unit. While Kanpur unit made the invoices are issued by Kanpur unit and Agra unit for goods transportation services on February 01 and January 29 respectively. 3. Stock valued at ₹ 7,30,000 was transferred from Kanpur unit to Agra unit on January 16. Further, stock valued at ₹ 6,80,000 was also transferred from Punjab unit to Retail Showroom at Delhi on January 22. The same was billed to Delhi Retail Showroom at ₹ 5,00,000. © The Institute of Chartered Accountants of India applicable. Agra manufacturing unit and Retail showroom located in Delhi are eligible for full ITC. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
0/5 solved
Case Scenario 6
Miscellaneous Provisions under GST
Assam on 1st April. Aggregate turnover of the company crossed ₹ 20 lakh on 31st May and ₹ 40 lakh on 15th July. The company made the application for registration under GST law on 25th July and the registration certificate was granted on 30th July. The company has opted to file return on monthly basis under regular scheme. The company was exclusively engaged in supply of and input service on different dates: Particulars Amount in (₹) 30th May 14th July 24th July 29th July Input held in stock 10,000 15,000 20,000 40,000 Input services 4,000 6,000 12,000 14,000 During the month of October, the company has installed solar panel at the office premises. Details regarding the installation of solar panel were as follow: Particulars Amount List price of the solar panel ₹ 5,50,000 Additional information not adjusted or given effect in the list price (a) Trade discount recorded in invoice @ 3% on list price. (c) Cost of packing, outward freight, loading-unloading and installation charges ₹ 12,000 as a condition of sale. Apart from the above, Data Limited received ₹ 2,00,000 as advance payment on goods of ₹ 10,00,000. The company removed the goods on 9th October and issued the invoice on 10th October. Goods were received by Mr. Prem on 11th October and Mr. Prem had made the balance payment of ₹ 8,00,000 on 20th October through NEFT. © The Institute of Chartered Accountants of India In addition to the above, due to oversight, the company failed to disclose a self-assessed outward supply of ₹ 2,00,000 while filing the GSTR-3B for the electronic credit ledger was of ₹ 10,000 each under CGST and SGST which August on the due date of return on 20th September. The company disclosed this supply in the return (GSTR 3B) for the month of January of next calendar with interest in the Form GSTR 3B filed on 18th February of next calendar year. The proper officer issued show cause notice on 25th February of next calendar the month of August. supplies are intra-State and chargeable to GST @ 9% each under CGST and SGST. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 6 below:
0/6 solved
Case Scenario 7
Miscellaneous Provisions under GST
Mr. Pukhraj Gupta is a registered supplier of goods and services under GST in the State of Karnataka. He provided the following details of outward transactions belong to the current financial year: Particulars Amount (₹) 1,40,00,000 Exempted supply 3,50,000 Interest received on unsecured loan (not included in above) 2,00,000 Transfer goods to the residence of his brother, a well-known professional. Free of cost but the open market value is ₹ 40,000 During the month of April, Pukhraj Gupta provided the following outward supplies: Particulars Amount (₹) 4,00,000 Insurance agent service to Suraksha Insurance Company, registered under GST 30,000 Interest received for late payment from various customers 10,000 Recovery agent service to Vipul Limited, a trader of goods 40,000 Security service provided to Bachpan School (upto higher secondary), an unregistered person under GST, at its Annual Day function held at Vallabh Convention centre being outside the school campus. 50,000 Renting of motor vehicle designed to carry passenger provided to M Sea Limited wherein cost of fuel in included (applicable rate of CGST is 2.50% and SGST is 2.50%) 80,000 Received with reference to a contract of ₹ 5,00,000 for supply (PSU) registered under section 51 in the State of Tamil Nadu, goods were delivered in the State of Karnataka as per instruction of the PSU. 1,50,000 © The Institute of Chartered Accountants of India Further, on 20th April, he hired Perfect Planner of Japan to plan and organize his events under a composite contract of all events. First event was organized at Mumbai while second event was held at Paris (France) In addition to the above, proper officer has issued an order under GST dated and penalty ₹ 10 lakh) in respect of an intra-State transaction. The above amounts are related to the CGST only. demanded. Pukhraj Gupta wants to file an appeal before the Appellant Authority. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
0/5 solved
Case Scenario 8
Miscellaneous Provisions under GST
M/s Far Sites (hereinafter referred as FS) is a proprietorship firm registered under GST in Chandigarh and deals in supply of variety of goods including electronic goods and repair & maintenance thereof. FS furnishes following information for the month of December: Outward supplies during the month of December are as under: Particulars ₹ Supply of goods to unregistered persons in Chandigarh (Out of the aforesaid supply, goods worth ₹ 1,00,000 were not liable to GST. However, FS inadvertently charged GST on such goods and collected the same from the customers). 10,00,000 Supply of goods to registered suppliers located in Punjab 20,00,000 Repair & maintenance services provided to unregistered persons located in Haryana 7,00,000 Inward supplies during the month of December are as under: Particulars ₹ Purchase of TV sets from registered suppliers. During unloading of said TV sets, five LED TVs and two QLED TVs valued to ₹ 2,00,000 got completely damaged, but the supplier refused to replace the same. 20,00,000 Purchase of washing machine from unregistered suppliers (Intra-State supply) 5,00,000 Transportation charges paid to Sri Logistics (unregistered GTA) 1,00,000 © The Institute of Chartered Accountants of India Further, the following information is also provided related to December: (1) FS received security services from LML Limited, Chandigarh amounting to ₹ 50,000. LML Limited is an unregistered supplier. (2) Rent of shop paid to Municipal Corporation of Chandigarh - ₹ 50,000 (3) Legal fee of ₹ 10,000 paid to Mr. Prakash, a Senior Advocate of Punjab and Haryana High Court for providing legal advice. (4) FS procured old and used goods worth ₹ 5,00,000 on which GST is payable on reverse charge basis. The goods were received on 25th December. The supplier issued the invoice on 24th December and payment for the same was debited from the bank account of FS on 31st December. Since the accountant was on leave, the transaction was recorded in the books of accounts on 1st January. Applicable rate of GST on all supplies was 18% except for transportation charges for which the applicable GST rate is 5%. Ignore bifurcation of CGST, SGST and IGST. Turnover of last financial year is ₹ 30 lakh. credit ledger of FS. All the above information pertains to same financial year. Note: All the above amounts are exclusive of GST, except wherever explicitly stated. Based on the facts of the case scenario given above, choose the correct answer to Q. Nos. 1 to 4 below:
0/4 solved
Case Scenario 9
Miscellaneous Provisions under GST
LLD & Co., a partnership firm, is engaged exclusively in manufacturing of electric equipment in the State of Gujarat. The firm became liable for registration on 14th April since its turnover exceeded the applicable threshold limit. It applied for registration on 16th May and was granted registration certificate on 20th May. The firm had opted for composition levy under section 10 at the time of registration. Its turnover for the quarter ending June (excluding the turnover till the date it amounting to ₹ 80 lakh and exempt supply was amounting to ₹ 2 lakh. Its turnover crossed ₹ 150 lakh on 9th July and LLD & Co. had opted for withdrawal of composition scheme on the said date. The firm provided a supply of equipment to GGY Ltd. (an unrelated limited company) on 20th July having market value of ₹ 21 lakh, wholesale value of ₹ 22 lakh and maximum retail price was ₹ 23 lakh. However, the transaction was made at ₹ 18 lakh. under reverse charge under section 9(3) from a registered supplier Mr. Sachin Kumar in the course of intra-State supply. LLD & Co. failed to issue any document to Mr. Sachin Kumar relating to this transaction. Other details for this particular inward service are as follows: Particulars Date Supply of service 3rd June Invoice raised by Mr. Sachin Kumar 9th July Payment recorded in the books of LLD & Co. 7th August Payment debited in the bank account of LLD & Co 14th August Payment recorded in the books of Mr. Sachin Kumar 8th August Payment credited in the bank account of Mr. Sachin Kumar 16th August LLD & Co. has not opted QRMP Scheme. © The Institute of Chartered Accountants of India supplies referred above are intra-State and price is the sole consideration. All the above information pertains to same financial year. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 6 below:
0/4 solved
Case Scenario 10
Miscellaneous Provisions under GST
Mr. Suraj Rao of Bhilwara (Rajasthan) is a registered person under GST and is filing monthly returns. His turnover for the preceding year was ₹ 1.25 crores. He is engaged in the business of various goods and services. He provided the details of following transactions/supplies undertaken by him during the month of February: (i) He executed a hedging contract for a commodity with NCDEX at a price of ₹ 1,100 per unit for 600 units. Original contract of purchase of the commodity was made @ ₹ 1,000 per unit. On the date of expiry of future contract i.e. 28th February, the rate of commodity was ₹ 900 per unit. He squared off the contract without physical delivery of the commodity. He paid ₹ 2,000 each at the time of entry and exit off the future contract. (ii) He provided repair and maintenance service related to generator to Mr. Rajendra on 5th February, involving both supply of goods being spare parts and supply of service being labour charges. He disclosed the value of goods at ₹ 10,800 and value of service at ₹ 25,000 separately in the invoice issued in this regard. Details of inward supplies during the month: (i) Purchase of goods for ₹ 20,00,000 from a registered person (it includes ₹ 5,00,000 towards purchase of goods which are exempted). (ii) Purchased a truck for ₹ 8,00,000 for transportation of goods for delivery to customers. No depreciation was claimed on GST portion. (iii) Incurred ₹ 3,50,000 on renovation of office building and debited the expenses (excluding the GST portion) in the Profit and Loss Account under repair and maintenance head. (iv) Mr. Suraj Rao went to Surat, Gujarat for a business meeting which was mandatory under a law for the time being in force in February and stayed in a GST registered hotel named "A One Hotel" for few days. Room © The Institute of Chartered Accountants of India Other information (i) Due to the accountant on leave, GSTR-3B for the month of February, could not be filed on due date prescribed i.e. 20th March. It was filed on 31st March. (ii) Suraj Rao collected an advance payment of ₹ 2,00,000 plus applicable GST deposited on such advance money to the Government even though 5 months has elapsed. All supplies are intra-State except otherwise mentioned. All the supplies of goods and services are chargeable to GST @ 9% each under CGST & SGST and @ 18% under IGST except spare parts which are chargeable @ 2.5% each under CGST & SGST and @ 5% under IGST. All the above information pertains to same financial year. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:
0/3 solved
Case Scenario 11
Miscellaneous Provisions under GST
M/s Jose & Co. (hereinafter referred as Firm) is a partnership firm registered under GST regular scheme in the State of Kerala. Firm is an original equipment manufacturer of motor pumps and engaged in supply of related goods and services all over India and supplies goods through the network its agents. During the month of August, the firm made following outward transactions: (i) Supplied moulds and dies owned by it to unrelated component manufacturers free of cost; market value of the same was ₹ 65,000. (ii) Provided free training on e-invoice and e-way bill to all its agents free of cost; value of such training was ₹ 1,00,000. It provided the following services during the month of September and received payment subject to deduction of TDS under GST law, as applicable: (a) Water supply services provided to Kerala Water Resources Management Board, a Government Authority in which 85% of control was held by Kerala Government; total consideration was ₹ 2,50,000. (b) Composite supply of goods and services provided to Kerala Government, in respect of an activity entrusted to a municipality under Article 243W of the Constitution, in which value of service constituted 25% of the value of said composite supply; total consideration was ₹ 3,00,000. (c) Conducted training program for rain water harvesting for a consideration of ₹ 4,00,000. This service was provided to Central Government and 76% of the total expenditure of this program was borne by the Central Government. During the month of October, the firm made a supply to its related concern valued under invoice at ₹ 5,00,000; whereas the market value was ₹ 8,00,000 and the recipient was eligible for full ITC. Value of like kind of supply was ₹ 7,00,000. Recipient intended to consume the supply for production purposes. The firm entered into a contract for service of 100 pump motors on 15th November for an amount of ₹ 5,00,000. Deadline for completing the © The Institute of Chartered Accountants of India contract was 15th January. However, due to some misunderstanding the contract was terminated on 20th December, when only 50% of the work was completed. supply referred above is intra-State unless specified otherwise. All the above information pertains to the same financial year. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
0/5 solved
Case Scenario 12
Miscellaneous Provisions under GST
EchoWave Technologies Ltd., Coimbatore, Tamil Nadu, (hereinafter referred as EchoWave) exclusively manufactures and sells product ‘Z’ which is exempt from GST vide notifications issued under relevant GST legislations. The company sells product ‘Z’ only within Tamil Nadu and is not registered under GST. Further, all The turnover of EchoWave in the previous year was ₹ 55 lakh. The company expects the sales to grow by 20% in the current year. Owing to the growing demand for the product, EchoWave decided to increase its production capacity and purchased additional machinery for manufacturing ‘Z’ on 1st April. The purchase price of such capital goods was ₹ 20 lakh exclusive of GST @ 18%. However, effective from 1st August, exemption available on ‘Z’ was withdrawn by the Central Government and GST @ 12% was imposed thereon. The turnover of the company for the first quarter ended on 30th June was ₹ 50 lakh. with Shine Ltd., an advertising company, located and registered in Gurugram, Haryana, to arrange the display of an advertisement of EchoWave’s newly launched product ‘Y’ on a hoarding placed at any prominent location in Bengaluru, Karnataka for initial 3 months of the launch of the product. Shine Ltd., in turn, enters into a contract with the owner of Seaside Hotel located and registered in Bengaluru, Karnataka for display of the advertisement on a hoarding placed in the lawn of the hotel. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/3 solved
Case Scenario 13
Miscellaneous Provisions under GST
Mrs. Kajal, a registered supplier of Jaipur (Rajasthan), has made the following supplies in the month of January: (i) Supply of a laptop along with the laptop bag to a customer of Mumbai for ₹ 55,000 (exclusive of GST). (ii) Supply of 10,000 kits (at ₹ 50 each) amounting to ₹ 5,00,000 (exclusive of GST) to Ram Fancy Store in Kota (Rajasthan). Each kit consists of 1 hair oil, 1 beauty soap and 1 hair comb. (iii) 100 kits are given as free gift to Jaipur customers (all unrelated) on the occasion of Mrs. Kajal's birthday. Each kit consists of 1 hair oil and 1 on the goods contained in the kit. (iv) Event management services provided free of cost to her brother (wholly dependent on her) for his son’s marriage function in Indore (Madhya Pradesh). Cost of providing said services is ₹ 80,000. (v) 1,400 chairs and 100 coolers hired out to Function Garden, Ajmer (Rajasthan) for ₹ 3,30,000 (exclusive of GST) including cost of transporting the chairs and coolers from Mrs. Kajal's godown at Jaipur to Function Garden, Ajmer. All the above transactions are exclusive of GST, wherever applicable. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/2 solved
Case Scenario 14
Miscellaneous Provisions under GST
Mr. Dhinal Patel is registered under regular scheme of GST in Delhi. He is engaged in supply of various goods as well as services across the country on his own as well as through its agents’ network also. During the month of August, Mr. Dhinal Patel made following outward transactions: (i) He gifted a watch, worth ₹ 50,000 to Mr. Sudipta Banerjee, an employee in recognition of his being awarded ‘Employee of the Year’. No other gift was presented to Mr. Sudipta during the current financial year. (ii) He provided free training on e-invoice and e-way bill to all its agents free of cost; cost incurred for providing such training was ₹ 1,00,000. He provided the following services during the month of September wherein he received payment of full contract value subject to deduction of TDS under GST law, as applicable: (a) Supplied printed books and printed post cards to a West Delhi Post Office [Out of total contract value of ₹ 9,72,000, contract value for supply of books (exempt from GST) is ₹ 7,00,000 and for supply of printed post (b) Supplied service of maintenance of street-lights in Municipal area of East Delhi* [The maintenance contract entered into with the Municipal Corporation of Delhi also involves replacement of defunct lights and other spares. However, the value of supply of goods is not more than 25% of the value of composite supply]. Contract value is ₹ 3,50,000. *an activity in relation to any function entrusted to a Municipality under article 243W of the Constitution (c) Supplied service of interior decoration of Andhra Bhawan located in Delhi. Service contract of value of ₹ 12,39,000 is entered into with the Government of Andhra Pradesh (registered only in Andhra Pradesh). All above values are inclusive of GST @18%, wherever applicable. © The Institute of Chartered Accountants of India Mr. Dhinal entered into a contract for supply of service with Saurashtra Associates on 1st June. He commenced the provision of service on 5th June and completed the provision of service on 10th October. Invoice is issued on 20th October. He received the payment by cheque on 15th October and entered it in his books the same day. Amount was credited in his bank account on 18th October. In the meantime, rate of GST applicable on said services was changed from 12% to 18% on 16th October. Mr. Dhinal rents out a commercial building owned by him to Bharat for the month of October, for which he charges a rent of ₹ 19,50,000. Mr. Dhinal pays the maintenance charges of ₹ 1,00,000 (for the October month) as charged by the local society. These charges have been reimbursed to him by Bharat. Also, Bharat. During the month of December, Mr. Dhinal hired the services of Sun Ltd., an event management company registered in Delhi, for organising two events, one in Bengaluru, Karnataka and another event in Japan. Note: Assume that all the days covered in the above case are working days. All the supplies referred above are intra-State unless specified otherwise. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 6 below:
0/6 solved
Case Scenario 15
Miscellaneous Provisions under GST
M/s All-in-One, a partnership concern and a registered supplier under GST, is engaged in providing various services under one roof. It is engaged in paying information pertaining to supply made/input services availed by it during the month of March: S.No. Particulars ₹ (i) Provided Direct Selling Agent service to Y Bank Ltd. 4,00,000 (ii) Provided security services (by way of supply of security personnel) to ABC Pvt. Ltd., a registered person under GST 60,000 (iii) Provided security services (by way of supply of security personnel) to PSR Trust, an unregistered person under GST 1,00,000 (iv) Provided renting of motor vehicle for transportation of passengers to Amaze Tours Ltd. and value of supply included cost of fuel 75,000 (v) Provided renting of motor vehicle for transportation of passengers to Priti & Co., CA firm and value of supply included cost of fuel 40,000 (vi) Availed representational service from PB and Co., a law firm towards a Consumer Court case 70,000 Rates of GST for both inward and outward supply is CGST/SGST@ 9% each except renting a motor vehicle, for which CGST/SGST @ 2.5% each is applicable. M/s All-in-One commenced its business from February. All the supplies are Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below: © The Institute of Chartered Accountants of India
0/2 solved
Case Scenario 16
Miscellaneous Provisions under GST
Welcome Group Pvt. Ltd. (herein referred as WGPL) is engaged in supplying hospitality and advertising services. It has its Head Office in Maharashtra and branches in various States in India. Head Office and all branches are registered under GST. WGPL Head Office in Maharashtra provided administrative and back-office support services in the month of August to its branch office in Kerala using the to the branch office, the head office did not include the salary cost of employees involved in providing such services. The branch office is eligible for full input Further, in the month of October, WGPL entered into a contract with Bright Ads LLP, registered in Rajkot, Gujarat, for displaying its advertisement on hoardings for an award event being organized at a convention center in Bhopal, Madhya Pradesh. The terrace of a hotel located nearby convention center on which the hoardings are to be displayed is taken on rent by Bright Ads LLP from the owner of the hotel - Mr. Kapoor (unregistered person based in Delhi). Bright Ads LLP Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/3 solved
Case Scenario 17
Miscellaneous Provisions under GST
Venue Automobiles Pvt. Ltd (hereinafter referred as VAPL)., a company registered under GST in Delhi, is engaged in manufacturing and supply of automobiles and auto-accessories across India. The manufacturing plant is located in Indore, Madhya Pradesh. In the financial year 2023-24, it had purchased the raw materials viz. metal sheets and sent the same for painting and plating to a registered job worker, Apex Surface Coaters (P) Ltd. These raw materials are sent directly from the place of business of supplier to the premises of job worker. transactions took place in this regard: Value of goods sent to job worker paid on such goods Date of purchase of goods by VAPL Date of receipt of goods by Apex Surface Coaters (P) Ltd. Date of goods received back from Apex Surface Coaters (P) Ltd. ₹ 1,20,000 ₹ 6,000 10-07-2023 15-07-2023 12-07-2024 ₹ 4,80,000 ₹ 24,000 25-09-2023 27-09-2023 13-10-2024 ₹ 19,20,000 ₹ 96,000 22-12-2023 25-12-2023 16-08-2025 ₹ 24,00,000 ₹ 1,20,000 21-01-2024 25-01-2024 23-01-2025 ₹ 8,40,000 ₹ 42,000 24-02-2024 26-02-2024 28-02-2025 Further, in the month of May 2025, the Department decided to conduct an assessment of the returns filed by VAPL. During the course of assessment proceedings, the proper officer observed certain irregularities in the returns filed by the company. Consequently, an adjudication order was issued raising a demand of IGST amounting to ₹ 1,200 crore. The order was issued on 23rd July 2025 and the same was communicated to VAPL on 28th July 2025. Aggrieved by the assessment order, VAPL preferred an appeal before the Appellate Authority (AA) on 30th July 2025. © The Institute of Chartered Accountants of India The Appellate Authority (AA) passed an order against VAPL demanding IGST of ₹ 1,200 crore on 25th August 2025 and the order was communicated to VAPL on 29th August 2025. VAPL wishes to file an appeal against the order of the AA. The company admits the liability of ₹ 100 crore but wishes to litigate the balance demand amount and intends to file an appeal to the GST Appellate Tribunal. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/3 solved
Case Scenario 18
Miscellaneous Provisions under GST
Opulenza Ltd., a registered supplier located in the State of Madhya Pradesh, is statutory obligations under the GST law. For the financial year 2024–25, it duly filed all its monthly GST returns within the prescribed timelines. In the course of the scrutiny of its returns for the said financial year conducted in August 2025, the proper officer noticed an inadvertent short payment of CGST and SGST totalling to ₹ 4,60,000 pertaining to the month of October 2024, on account of a bonafide error. Before issuance of the show cause notice by the ₹ 50,000 SGST) on the basis of its own ascertainment along with applicable interest and with penalty, if any, on 15th September 2025 and informed the proper officer in writing of such payment. In the ordinary course of its business operations, on 10th October 2025, Opulenza Ltd. engages Malhotra & Sons as an agent to sell goods on its behalf. Acting in such capacity, Malhotra & Sons sold goods to Bravion Associates on 25th October 2025, on behalf of Opulenza Ltd. Subsequently, in January 2026, in connection with a separate enquiry initiated against Opulenza Ltd., Sudarshan Chaturvedi, the Chief Executive Officer (CEO) required him to appear in person and produce the books of accounts of Opulenza Ltd. for the purposes of the enquiry being conducted in respect of the said company. Note – Assume that the due date for furnishing annual return has not been extended and limitation period for issuance of order under section 74A has not been extended by the Commissioner. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below: © The Institute of Chartered Accountants of India
0/4 solved
Case Scenario 19
Miscellaneous Provisions under GST
in Uttar Pradesh and branches in Rajasthan and Bihar. It is registered under GST in Uttar Pradesh, Rajasthan and Bihar. Moreover, it has obtained registration as an ISD (Input Service Distributor) in Uttar Pradesh for distribution of credit pertaining to services billed commonly at the head office but utilized by branches also. With effect from 1st September of the current financial year, the regular GST registration of CoreValue Traders in Uttar Pradesh is cancelled retrospectively. The cancellation order is passed on 15th September of current financial year. At the time of cancellation, the supplier has not availed ITC on certain eligible invoices issued in February and March of the preceding financial year for inward Further, ISD (Input Service Distributor) registration is also cancelled with effect from 1st September of the current financial year with an order dated 15th September of said financial year. Subsequently, on filing an application for revocation, the cancellation of registration is revoked by the Proper Officer on 15th December of the current financial year. The firm wishes to furnish its GSTR-3B return for the month of September on 21st December of the current financial year and wishes to claim ITC on the said invoices of February and March of preceding financial year in this return. Note - Annual return for the current financial year is filed on 31st December of the current financial year. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/3 solved
Case Scenario 20
Miscellaneous Provisions under GST
SwarSadhna Pvt. Ltd., a company registered under GST in Ludhiana, Punjab, is engaged in the business of organising musical events and cultural programmes. The company is owned and promoted by Pt. Hariprasad Tiwari, a renowned classical singer of national repute. With a view to promote classical music amongst youth of the country, SwarSadhna Pvt. Ltd. decided to organise a live music event titled “Hariprasad Tiwari Music Concert” at Gurugram, Haryana. For the purpose of planning, coordination and execution of the event, SwarSadhna Pvt. Ltd. entered into a contractual arrangement with Supriya (P) Ltd., an event management company registered under GST in Delhi. As per the terms of the agreement, Supriya (P) Ltd. agreed to provide comprehensive event management services, including venue booking, logistics and on-ground arrangements, for a total consideration of ₹ 10,00,000. In order to host the concert, Supriya (P) Ltd. booked the lawns of Hotel Dumdum, a hotel registered under GST in Gurugram, Haryana, for holding the music concert. The hotel charged a lump-sum consideration of ₹ 4,00,000 for providing the venue and related facilities. SwarSadhna Pvt. Ltd. fixes the entry fee for the music concert at ₹ 5,000 per person. A total of 400 tickets were sold to the general public for attending the concert, resulting in gross ticket collections of ₹ 20,00,000. Applicable rate of GST on all supplies is CGST -9%, SGST-9% and IGST-18%. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/3 solved
Case Scenario 21
Miscellaneous Provisions under GST
Supernova India Limited is a 100% subsidiary of Supernova LLC, Japan, registered under GST in the State of Gujarat. Supernova Inc., Singapore, is another subsidiary of Supernova LLC, Japan, and is engaged in supply of industrial goods to customers across the world. In India, Supernova Inc., Singapore, sells the goods to a sub-contractor registered under GST in the name of Alpha Limited in the State of Maharashtra. Alpha Limited imports the goods sold by Supernova Inc., Singapore and carries out the required technical process on such goods in the factory located in Maharashtra. After processing of goods by Alpha Limited, the goods are sold by Alpha Limited to Supernova India Limited for further sales to end customers. As a holding company, Supernova LLC, Japan, recovers an amount equivalent to 20% of the sales made by Supernova India Limited as commission on monthly basis. During the month of January, Alpha Limited imported the goods worth ₹ 10,00,000 from Supernova Inc., Singapore. The inter-State purchases of Alpha Limited from domestic market amounted to ₹ 2,00,000 during the month of January. The value of processed goods sold by Alpha Limited to Supernova India Limited amounted to ₹ 10,00,000. Further, Supernova India Limited paid an additional amount equivalent to ₹ 2,00,000 for transportation and handling of goods to third party (a Goods Transport Operator), which was contractually agreed to be paid by Alpha Limited. Alpha Limited has also charged an amount equivalent to ₹ 12,000 on such processed goods as miscellaneous municipal levy (other than GST) payable in the State of Maharashtra. Supernova India Limited sold the goods purchased from Alpha Limited in the month of January as per the details provided below: 1. ₹ 6,00,000 worth goods to X Ltd, a customer located in the State of Rajasthan 2. ₹ 8,00,000 worth goods to Y Ltd, a customer located in the State of Gujarat © The Institute of Chartered Accountants of India There is no opening stock and closing stock for the month of January with Supernova India Limited. Further, an employee of Supernova India Limited had visited the manufacturing unit of Alpha Limited in Mumbai, Maharashtra and had stayed in the hotel located in Mumbai, Maharashtra, in the month of February. At the time of checkout from hotel, the invoice was issued for an amount equivalent to ₹ 1,00,000. The hotel had issued invoice in the name of Supernova India Limited and GST was charged at the rate of 9% CGST and 9% SGST on total invoice amount of ₹ 1,00,000. Out of such amount, the amount recoverable from the employee towards non-official stay by Supernova India Limited was ₹ 50,000. Fun Events Ltd., an event management company, located and registered at New Delhi, had organized a cultural event in the month of February for Supernova India Limited, in Mauritius. other inward or outward supply transaction for Alpha Limited in January and February apart from the aforementioned transactions. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. All the above transactions are exclusive of GST, wherever applicable. GST is applicable in the aforesaid case scenario at the following rates unless otherwise specified: I. Intra-State supply – 9% CGST and 9% SGST II. Inter-State supply – 18% IGST The rate of basic customs duty on import of goods is nil. However, IGST is applicable on import of goods. No additional duty or cess is applicable on the import of goods or services. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below: © The Institute of Chartered Accountants of India
0/3 solved
Case Scenario 22
Miscellaneous Provisions under GST
Doodle Inc. is an entity incorporated in USA and is engaged in provision of various information technology related services directly as well as through its subsidiaries located across the world. In India, Doodle India, a subsidiary of Doodle Inc., is registered under GST in the State of Karnataka under GST and is providing services to various customers in India. Doodle Inc. provides cloud-based storage services to its customers (business entities and non-business entities) in India. The customers can subscribe to the services by making online payment directly to Doodle Inc.’s bank account through internet banking and other modes. The terms and conditions for such services are entered between Doodle Inc. and the customer directly without involvement of any third party. In case of any issue, the customers can call and log the issue at the customer help centre which is operated by Doodle India on principal to principal basis. For operation of such customer help centre, Doodle India is paid on cost plus 10% basis by Doodle Inc. on monthly basis. Further, Doodle India is engaged in promotion and marketing of cloud-based storage services on principal-to-principal basis in India for Doodle Inc. The payment for such services is made by Doodle Inc. to Doodle India on monthly basis at cost plus 20%. The promotional and marketing activities are carried out in the name of Doodle Inc., without any reference to operations of Doodle India. Doodle Inc. owns online space for advertisement on internet. Doodle Inc. has agreed to sell such online advertising space to Doodle India for an amount of ₹ 5,00,00,000 per month. Doodle India sells such advertising space to its customers in India on its own account. The contractual arrangement for sale of such advertising space is between the customer and Doodle India. Doodle Inc. provides technology support to Doodle India and charges royalty from Doodle India for such technology support at a fixed charge of ₹ 25,00,000 per month. The royalty paid is exclusively related to the business of advertising space of Doodle India. © The Institute of Chartered Accountants of India In addition to above information, during the month of January: (I) Doodle India has incurred following expenses: 1. Expenses exclusively related to operation of call centre – ₹ 75,00,000 2. Expenses exclusively related to promotion and marketing services for Doodle Inc. – ₹ 50,00,000 (II) Doodle India earned an income of ₹ 8,00,00,000 from sale of online advertising space in India. (III) recipient customers, from cloud-based storage services in India. India and Doodle Inc. is nil. Note: In the aforesaid case scenario, (i) GST is applicable on all inward and outward supplies in the aforesaid case scenario @ 18%, unless otherwise specified. Ignore CGST, SGST and IGST bifurcation for the sake of simplicity. (ii) Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. (iii) All the amounts are exclusive of GST, wherever applicable, unless otherwise provided. (iv) Exports made by Doodle India, if any, are through furnishing of LUT without payment of IGST. (v) Payments for all services received by Doodle Inc. from Doodle India are made in convertible foreign exchange. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below: © The Institute of Chartered Accountants of India
0/4 solved
Case Scenario 23
Miscellaneous Provisions under GST
Abhivyakti Pvt Ltd. is engaged in the supply of food products under the brand name “Super Foods”. It has a plant at Howrah, West Bengal. It is a registered supplier under GST and is a monthly return filer. It has allotted residential quarters to its employees within the plant premises. The aggregate turnover of the company during the preceding financial year was ₹ 7.50 crore. Following details are provided by the company for the month of September: Particulars Amount (₹) Sale of ‘Super Foods’ food products (Note 1) 60,00,000 Purchase of raw material from the market 14,00,000 Rent received from its employees for residential quarters allotted to them for residence 10,000 Electricity charges paid to West Bengal State Electricity Board 1,60,000 Security services provided by M/s Suraksha Security, Kolkata (a partnership firm registered under GST) 1,00,000 Interest on delayed payment collected from customers 3,500 Interest received on fixed deposit in a bank 8,600 Payment to Kolkata Chamber of Commerce (a non-body corporate registered under GST) towards sponsorship for Investor Summit at Kolkata 25,000 Licence fee paid to Food & Safety Standard Authority of India (FSSAI) 25,000 Legal fee paid to advocate, Mr. Dhruv Banerjee 30,000 Transportation charges paid to an unregistered goods transport operator for transportation of raw material from mandi to factory 40,000 Transportation charges paid to a local truck owner (not a GTA) for transportation of finished products from factory to distributors 50,000 © The Institute of Chartered Accountants of India Following additional information has also been provided by the company: (1) Out of the total sales, food products worth ₹ 3,50,000 (10,000 kg) were supplied to Department of School Education, Govt. of West Bengal for further supply to affected families during flood in the State. A price-linked subsidy of ₹10 per kg was received from Govt. of West Bengal for the said supply which has not been considered in the total sales of ₹ 60,00,000. (2) The company had awarded a maintenance contract to Supreme Power Ltd., Delhi on 10th June, for repair of central air conditioner unit installed in the factory, for ₹ 60,000 with a completion period of 30 days. The maintenance work was completed on 8th July. However, due to some dispute regarding quality of work, invoice was issued by Supreme Power Ltd. only on 5th September and payment was released on 15th September. (3) The proper officer levied on the company a penalty of ₹ 5,000 for wrongful utilization of ITC of ₹ 5,000. (4) amounting to ₹ 3,30,730 on 28th September. Note- All the above amounts are exclusive of GST, wherever applicable, unless specified otherwise. Applicable rate of GST is 18%. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
0/5 solved
Case Scenario 24
Miscellaneous Provisions under GST
Mr. Ashok, proprietor of M/s Office-Linc Enterprises, is engaged in trading of office stationery items in its stationery store located at Salt Lake City, Kolkata. The said store is taken on lease from Kolkata Municipal Corporation (KMC). During the previous financial year, the turnover of M/s Office-Linc Enterprises was ₹ 14 lakh. Mr. Ashok supplies goods within the State of West Bengal only, but purchases stationery items mostly from Delhi & Mumbai. He owns a duplex house in New Town, Kolkata. He stays on the ground floor & has let out the first floor to an employee of IDICI Bank, registered in Delhi, for residential purposes. The rent for the same is paid by IDICI Bank to Mr. Ashok. During the financial year 2025-26, he applied for GST registration on voluntary basis on 2nd April, 2025 and the registration was granted to him w.e.f. 9th April, 2025. The details of his stock position during current financial year is as under: Particulars 2nd April, 8th April, Office stationery items purchased from a registered dealer ₹ 1 lakh ₹ 1 lakh Books, periodicals, journals, newspaper, maps etc. ₹ 0.20 lakh ₹ 0.30 lakh The details of transactions carried out by Mr. Ashok during the current financial year is furnished hereunder: Particulars 1st April, 2025 to 8th April, 2025 (₹ in lakh) 9th April, 2025 to 31st March, 2026 (₹ in lakh) Sale of office stationery items (Intra-State supply to registered persons) Sale of office stationery items (Intra-State supply to unregistered persons) Legal fees paid to advocate in Kolkata - 0.10 © The Institute of Chartered Accountants of India Purchase of stationery items (Intra-State supply received from registered person) Purchase of furniture for use in own office (from an unregistered dealer of Kolkata) - Purchase of stationery items from a registered dealer of Delhi Lease rent of the stationery store paid to Kolkata Municipal Corporation (KMC) - 1.20 Transportation charges paid to M/s Gati Transporters, a GTA in Kolkata, who has not payable @ 5%) 0.10 1.50 Interest paid on borrowings from BBI Bank, Kolkata 0.20 1.80 Accrued interest on Fixed deposit with BBI Bank, Kolkata - 0.16 Rent received from IDICI Bank for its employee - 2.40 Mr. Ashok went to Mumbai, Maharashtra for a business meeting in February, 2026 and stayed in Hotel Blue Pines for a week. Hotel charged All the amounts given above are exclusive of GST, wherever applicable, unless otherwise provided. Assume that there is no other outward or inward supply transaction apart from aforesaid transactions in the current financial year. GST is applicable on all inward and outward supplies, except on services of transportation of goods, at the following rates: I. Intra-State supply – 6% CGST and 6% SGST II. Inter-State supply – 12% IGST Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:- © The Institute of Chartered Accountants of India
0/3 solved
Case Scenario 25
Miscellaneous Provisions under GST
XYZ Ltd. is registered with the jurisdictional GST authorities in the State of Rajasthan and operates in multiple businesses. The principal business of XYZ Ltd. is that of fabricating and installing the body for large transportation vehicles. The chassis of the vehicles are provided by the customers to XYZ Ltd. XYZ Ltd. procures the material for fabrication and installs the same on the chassis against a lumpsum agreed amount for material as well as services. In addition to the above business, XYZ Ltd., registered as GTA, is also engaged in providing services of transportation of goods by road through its own fleet applicable on such services @ 5%. During the month of January, XYZ Ltd. undertook the following transactions: (i) Provided services of transportation of goods to A Ltd., a registered person under GST in the State of Gujarat and received an amount of ₹ 10,00,000 as consideration for the same. (ii) Purchased tyres for its own fleet of trucks used for providing services of transportation of goods by road and paid an amount of ₹ 1,00,000 for such purchases. (iii) Purchased a machinery with an advance technology for fabrication of body for luxury buses amounting to ₹ 50,00,000. (iv) XYZ Ltd. procured certain engineering services for its fabrication business through electronic mode from Lummus Inc., a company located in Italy. The consideration paid to Lummus Inc. was ₹ 15,00,000. Further, certain goods to be used for fabrication business were sent by XYZ Ltd. for carrying out repair work on the same to Lummus Inc. The consideration paid for such repair work was ₹ 5,00,000. (v) Provided services of transportation of goods to ABC Ltd., its related party and received an amount of ₹ 5,00,000. The arm’s length amount of such services provided to third party unrelated customers was ₹ 7,00,000. © The Institute of Chartered Accountants of India (vi) XYZ Ltd. sold scrap relating to fabrication business amounting to ₹ 5,00,000. (vii) Purchased goods relating to fabrication business for ₹ 10,00,000 out of which goods worth ₹ 1,00,000 were stolen from the premises of XYZ Ltd. (viii) Received an advance of ₹ 10,00,000 for fabrication work on new chassis and ₹ 3,00,000 towards transportation of goods services from W Ltd., a registered person under GST in the State of Madhya Pradesh. is nil. All the above amounts are exclusive of GST, wherever applicable. The applicable GST rate on all inward and outward supplies is 18% unless specified otherwise. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:
0/3 solved
Case Scenario 26
Miscellaneous Provisions under GST
Bhakti & Sons of Kolkata, a partnership firm registered under GST, deals in supply of electronic goods such as TV, refrigerator, washing machine etc. It also provides services of repair and maintenance of said goods. Its aggregate turnover during the preceding financial year was ₹ 4.2 crore. It furnishes following information for the month of December: Outward supplies during the month of December are as under: Particulars Amount (₹ in lakh) Supply of goods to unregistered persons residing in & around Kolkata Supply of goods to an unregistered dealer of Bihar Supply of goods to registered dealers in West Bengal Repair & maintenance services provided to unregistered persons Inward supplies during the month of December are as under: Particulars Amount (₹ in lakh) Purchase of TV sets from registered dealers (Inter-State supply) [During unloading of said TV sets, one LED TV costing ₹ 25,000 was damaged, but the dealer refused to replace the same.] Purchase of refrigerators from registered dealers (Intra-State supply) Purchase of washing machine from unregistered dealers (Intra-State supply) Transportation charges paid to Om Logistics (unregistered GTA) © The Institute of Chartered Accountants of India Payment made to Star Security Services Pvt Ltd. (not registered under GST) for providing security services 0.50 Loading & unloading charges paid to labourer 0.10 Shop rent paid to Kolkata Municipal Corporation 0.30 Fee paid to Mr. Das, a Senior Advocate of Kolkata High Court for legal service 0.10 Following additional information is also provided: (a) cause notice (SCN), to Bhakti & Sons due to non-display of registration certificate in a prominent location & GSTIN on name board at the entry of its principal place of business. Bhakti & Sons’ plea is that the display of GSTIN to general public is not mandatory as it is required for the knowledge of the customers only & the same is already mentioned in the (b) Bhakti & Sons paid the sponsorship fee of ₹ 5,00,000 to Finmin Ltd., registered in Kolkata, for an entertainment event organised by Finmin Ltd. in Assam, in the month of October. (c) GST is applicable on all inward and outward supplies in the aforesaid case scenario @ 18%, except transportation of goods service which attracts GST @ 5%. Ignore CGST, SGST and IGST bifurcation for the sake of simplicity. (d) electronic credit ledger of Bhakti & Sons. (e) All the goods purchased by Bhakti & Sons is ex-shop and it arranges its own transportation through GTA. Note: All the above amounts are exclusive of GST, wherever applicable. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 6 below: © The Institute of Chartered Accountants of India
0/6 solved
Case Scenario 27
Miscellaneous Provisions under GST
Varun Associates is a supplier registered under GST in Delhi. It is engaged in manufacture of Product A and Product B. whereas Product B is an exempt product. It is also engaged in manufacture of It has furnished following information regarding purchase of the machineries for his manufacturing business: Date of purchase Machinery Amount (₹) (exclusive 1st April, 2022 Machinery X 10,00,000 Exclusively used for manufacturing Product A 1st October, 2023 Machinery Y 15,00,000 Exclusively used for manufacturing Product B 1st May, 2024 Machinery Z 20,00,000 Exclusively used for zero- rated supply of Product C From 1st April, 2025, Varun Associates started using Machinery Y for manufacturing Product A as well. All the purchases and sales are inter-State and rate of IGST applicable on all purchases and sales is 18%. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled and Varun Associates has not claimed depreciation on the GST paid on the purchase of the machinery. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
0/5 solved
Case Scenario 28
Miscellaneous Provisions under GST
M/s Gopi Narayan & Company is a partnership firm of advocates, registered under GST in Mumbai, Maharashtra. In the month of April, the firm has supplied services amounting to ₹ 15 lakh. The following information is provided in relation to the some of the services provided: S. No. Particulars Value of service (₹) 1. Herbal Power (P) Ltd. (Registered in Telangana in the preceding financial year as per the provisions of section 22 of the CGST Act, 2017) Provided consultation for preparation of an affidavit in relation to construction of a hotel building in the State of Maharashtra. 50,000 2. Veranta India (P) Ltd. (Registered in Gujarat in the preceding financial year as per the provisions of section 22 of the CGST Act, 2017) Filed a suit in the Gujarat High Court on behalf of the company 200,000 3. Ms. Saloni (Registered under GST as a salon service provider in Maharashtra in the preceding financial year as per the provisions of section 22 of the CGST Act, 2017) Legal service amounting to ₹ 1 lakh was provided in the month of February for which invoice was issued on 15th February. However, payment is made by the client on 5th April. The firm has charged ₹ 10,000 as penalty (exclusive of GST) for delayed payment of consideration. Said penalty is also paid by the client on 5th April. Apart from this, as per the agreement with the client, the firm had paid ₹ 20,000 as attestation charges on behalf of the client, mentioned separately on the invoice, which were reimbursed by the client in the month of February itself. - © The Institute of Chartered Accountants of India Note: The turnover of M/s Gopi Narayan & Company in the previous financial year was ₹ 50 lakh. The firm is engaged solely in providing legal services and it does not import/export any services from/to outside India. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
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Case Scenario 29
Miscellaneous Provisions under GST
Mr. Veera is a trader of readymade garments and is registered under GST in the State of Uttar Pradesh. His turnover is ₹ 1,80,00,000 during the current financial year. The composition of his turnover is as under- (a) Intra-State - ₹ 80,00,000 (b) Inter-State - ₹ 1,00,00,000 [including exempt supplies of ₹ 15,00,000] His inward supplies are as under- (a) Inter-State - ₹ 1,00,30,000 [including ₹ 20,00,000 exclusively used for exempt supplies] (b) supplies] Apart from above, Mr. Veera has undertaken following transactions during the current financial year: 1. He purchased a pick-up van for the purpose of delivery of goods to his customers for ₹ 1,70,000. 2. He got his showroom renovated (debited all expenses under repairs and maintenance) and spent money as under- Labour charges ₹ 3,60,000 Architect fees ₹ 80,000 Wooden flooring ₹ 4,00,000 Miscellaneous expenses ₹ 1,62,000 3. week, he gave them away free to its customers to promote his business. 4. He also sold his shares during the year for ₹ 10 crore and bought a house from that money. 5. outward supplies. © The Institute of Chartered Accountants of India 6. 7. Veera is Nil. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
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Case Scenario 30
Miscellaneous Provisions under GST
Mr. Venkat, a practicing Chartered Accountant, based in Hyderabad, is registered under GST in the State of Telangana. He undertook following transactions/activities during the current financial year: (1) He provided consultancy services to Kuick Tours, a UK based entity engaged in the business of e-commerce in the field of tour and travels, having its office at UK. Kuick Tours paid a sum of Euro 95,000 to Mr. Venkat billed @ ₹ 75 per Euro. Mr. Venkat made travel to UK several times during the year and incurred Euro 5,000 @ ₹ 75 as incidental expenses (including VAT paid ₹ 10,000) which was ultimately charged from Kuick Tours. Kuick Tours also paid a sum of EURO 5,000 @ ₹ 75 to Mr. Venkat as interest on account of delay in payment of agreed consideration. Mr. Venkat also hired the services of a professional firm based in UK to complete the assignment of providing services to Kuick Tours and paid Euro 10,000 @ ₹ 75. This was not recovered from Kuick Tours. (2) financial year are ₹ 85,00,000. In addition to this, Mr. Venkat also provided return filing services free of charge in the month of July to Indian residents who were economically weaker. Open market value of such services was ₹ 1,40,000. Further, in July, Mr. Venkat also provided financial services to his real brother Mr. Kamath who is working at an IT company and earning handsomely, for ₹ 75,000 (invoice raised at open market value). However, Mr. Venkat offered him 90% discount on the invoice raised to him. Therefore, Mr. Kamath paid ₹ 7,500 only. (3) Dumdum Electricals Ltd., registered under GST in Guwahati, Assam approached Mr. Venkat to impart GST training to its accounts and finance personnel. Mr. Venkat imparted the said training to 50 employees of Dumdum Electricals Ltd. at a conference room of Swaraj Hotel located in Siliguri, West Bengal on 25th August. © The Institute of Chartered Accountants of India inward/ outward supplies. All the amounts given above are exclusive of Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
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Case Scenario 31
Miscellaneous Provisions under GST
Jaskaran, a registered supplier of Delhi, is engaged in supplying a bouquet of of January: S. No. Particulars Amount* (₹) (i) Supply of 20,000 packages at ₹ 30 each to Sukhija Gift Shop in Punjab [Each package consists of 2 chocolates, 2 fruit juice bottles and a packet of toy balloons] 6,00,000 (ii) 500 packages each consisting of 1 chocolate and 1 fruit juice bottle given as free gift to Delhi customers on the occasion of Lohri [Cost of each package is ₹ 12, but the open market value of such package of goods and of goods of like kind and quality is not available. taken on the items contained in the package] (iii) Catering services provided to elder brother free of cost for his business function in Delhi [Cost of providing said services is ₹ 55,000, but the open market value of such services and of services of like kind and quality is not available.] *excluding GST Following additional information has been furnished by Jaskaran: 1. Penalty of ₹ 10,000 was collected in lumpsum in the month of March from Sukhija Gift Shop since the payment was received with a delay of 60 days. 2. One of the old customers of Jaskaran – Mr. Bahubali of Delhi- approached him requesting him to arrange the transportation of the goods purchased by him from a local supplier. Jaskaran arranged the transportation of said goods for Mr. Bahubali through a truck owned by him for local transport of goods. Jaskaran did not issue a consignment note to Mr. Bahubali. © The Institute of Chartered Accountants of India 3. Assume the rates of GST to be as under: Goods/services supplied CGST11 SGST IGST Chocolates 9% 9% 18% Fruit juice bottles 6% 6% 12% Toy balloons 2.5% 2.5% 5% Catering service 9% 9% 18% Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
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Case Scenario 32
Miscellaneous Provisions under GST
Sudershan Transport Agency (P) Ltd. (hereinafter referred to as “STAL”), registered under GST in Jaipur, Rajasthan, is providing services by way of transportation of goods by road for which it issues consignment notes, to all the sectors of industries. It maintains trucks, trollers, advance carriages for heavy loads, lorries and small tractors, for the purpose of transportation and renting purposes. It also maintains special vehicles which has special storage features and other advance facilities for transporting defence equipments and other complex machineries, chemical and food products. It has provided the following details for the current financial year: (i) STAL rendered transportation services to farmers in Rajasthan for transportation of agricultural produce to nearby cities for ₹ 2,00,000. (ii) STAL gave buses on rent to ABC Travels who provided services of transport of students, staff and faculty to a higher secondary school in Rajasthan affiliated to CBSE. STAL charged ₹ 5,00,000 for the same during the year. (iii) STAL also had entered into a contract with local authority in Rajasthan to provide services by way of transportation of relief material to flood affected victims for which ₹ 2,50,000 is charged. (iv) Manimani Bank, (registered in Bhubaneshwar, Orissa) sent its branch manager Mr. Champak on one year deputation on a special project to Bhopal, Madhya Pradesh. Mr. Champak’s family is stationed in Kanpur (U.P.). Manimani Bank enters into a contract with STAL for transportation of the household goods of Mr. Champak from Kanpur to Bhopal for ₹ 1,50,000. (v) STAL transported defence equipments to a military camp based in Rajasthan and amount charged for such services is ₹ 5,50,000. (vi) STAL provided service of transportation of goods to a co-operative society in Rajasthan which was newly constituted and hence was not registered under GST law and the amount charged was ₹ 3,00,000. While © The Institute of Chartered Accountants of India transporting the goods of the said co-operative society, STAL generated e-way bill on Monday at 12:04 am. The goods were to be transported for a distance of 220 km. (vii) STAL owns and maintains its own petrol pump in Rajasthan wherein the revenue from supply of petrol was ₹ 20,00,000. Note: All the above amounts are exclusive of GST, wherever applicable, unless otherwise specified. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
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Case Scenario 33
Miscellaneous Provisions under GST
M/s Harimukund Hardwares, a partnership firm registered under GST in the State of Uttar Pradesh, is engaged in the supply of door and window fittings across India. In the month of October, it made following outward supplies: Name of receiver (State) value (₹) Date of invoice Date of receipt of payment Date of removal of goods M/s Nand Kishore Traders (Haryana) 5,75,000 10th October 25th October 10th October M/s Charanjot Hardwares & Fitters (Punjab) 3,25,000 12th October 10th November 10th October M/s Rana Singh Ji Hardware Products (Rajasthan) 2,70,000 17th October 12th October 20th October M/s Annapurai Hardwares (Karnataka) 3,75,000 18th October 29th November 19th October and 9% SGST. Goods are generally received by parties in Punjab, Haryana & Rajasthan on 2nd day from the date of removal whereas it takes 5 days to reach Karnataka. M/s Harimukund Hardwares gives 2% cash discount to its customers wherever the payment is received in advance or within 15 days of the date of removal of goods and the respective credit note is also issued immediately. The buyer also takes the necessary legal action (required under GST law) with respect to such credit note immediately. To supply such goods, as aforesaid, it received services from a local GTA, namely, M/s Khatushyam Transporters (unregistered), who raised a consolidated invoice for ₹ 1,00,000 on 22nd October for which payment was made on 27th December along with payment for the month of November. © The Institute of Chartered Accountants of India Applicable rate on services of transportation of goods is CGST @ 2.5% and SGST @ 2.5%. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:-
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Case Scenario 34
Miscellaneous Provisions under GST
ABC Pvt. Ltd., a company registered under GST in the State of Uttar Pradesh, manufactures products which are used in laboratories. The products are manufactured in the company’s factory located in Lucknow, Uttar Pradesh and sold in various parts of Uttar Pradesh. The company also provides intra-State repair and maintenance services for its products. The details of turnover of the company for preceding two financial years are as under: Particulars F.Y.-1 (₹) F.Y.-2 (₹) Turnover from supply of goods 75,00,000 1,02,00,000 Turnover from supply of services 7,10,000 9,25,000 Interest income from extending loans to others (not included in aforesaid turnover of services) 5,25,000 6,26,000 The company procures the service of M/s Ram Enterprises, a Goods Transport Agency, having its place of business in Lucknow, Uttar Pradesh, for transport of goods from its factory to customers’ location in April. M/s Ram Enterprises has not exercised the option to itself pay GST on the services supplied by it. M/s Ram Enterprises prepares a regular consignment note containing the details of consignor and consignee and other prescribed details. The services provided Following details are provided by ABC Pvt. Ltd. for April-June quarter of FY-3 (current FY): S. No. Particulars Amount (₹) (i) Turnover of supply of goods 10,20,000 (ii) Turnover of supply of services 92,550 (iii) Interest income from extending deposit to others 5,000 (iv) Amount paid for services received from M/s Ram Enterprises 50,000 (v) Raw material received from other States 5,26,000 (vi) Input services received 7,80,900 © The Institute of Chartered Accountants of India Following additional information is also provided: (1) The raw material mentioned in point (v) above received by ABC Pvt. Ltd. in April in its factory located in Lucknow, Uttar Pradesh, includes goods amounting to ₹ 2,26,000 received from M/s Aakash Enterprises on the instructions received from M/s Abhijaat Enterprises. M/s Aakash Enterprises has its principal place of business in Uttar Pradesh whereas M/s Abhijaat Enterprises has its principal place of business in Gujarat. (2) Vidhata Foundation, a Charitable Trust, registered under section 12AB of for conducting charitable activities, in the State of Uttar Pradesh. The Trust organises sessions on yoga and spirituality in the State of Uttar Pradesh and charges participation fees for the same. The total fees collected from participants for the month of April of current FY is ₹ 2,50,000. The input services received by the Trust during the said month amount to ₹ 1,25,260. The Trust is also analysing the proposal of granting rights to ABC Pvt. Ltd. to advertise on its premises. All the above amounts are exclusive of GST. Following GST rates are applicable on the inward and outward supplies unless otherwise specified: Particulars CGST SGST IGST Outward supply 9% 9% 18% Inward supply 2.5% 2.5% 5% Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below: -
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Case Scenario 35
Miscellaneous Provisions under GST
GQF Private Limited, registered under GST in the State of Maharashtra, is engaged in manufacturing of goods which are used for further production in automobile industry. The company sends some semi-finished inputs to job workers, M/s Yamuna Enterprises and M/s Jamuna Enterprises, for necessary processing. The processed goods are sent back by the job workers to the company where they are used for manufacturing the finished products. M/s Yamuna Enterprises has its place of business in Maharashtra. M/s Jamuna Enterprises has its place of business in the State of Madhya Pradesh viz. 35 km away from the place of business of GQF Private Limited. The company imports some raw material and stores the same for few months in the warehouse operated by M/s Gajanan Enterprises in the State of Tamil Nadu. Later on, it is transported to the company’s factory in Maharashtra. M/s Gajanan Enterprises is not registered under GST. The aggregate turnover of M/s Gajanan Enterprises in the current financial year till date is ₹ 18,25,000. The company maintains all the records, documents and books of accounts at its place of business in Maharashtra. Following are the relevant details of GQF Private Limited for the month of August. Particulars Amount (₹) Total turnover 36,00,000 Total inputs received during the month 21,12,000 Total input services received during the month 8,99,000 Goods sent to M/s Yamuna Enterprises during the month for job work purpose by motor vehicle 75,000 Goods sent to M/s Jamuna Enterprises during the month for job work purpose by motor vehicle 46,800 Note: All aforementioned amounts are exclusive of GST, wherever applicable. GQF Private Limited procures the service of M/s Speedofast Enterprises, a goods transport agency, having its places of business in Maharashtra, Gujarat and © The Institute of Chartered Accountants of India Kerela. M/s Speedofast Enterprises is registered in all these States with same PAN. GQF Private Limited transports its finished goods to different customers located within Maharashtra through M/s Speedofast Enterprises. M/s Speedofast Enterprises prepares a consignment note containing the details of consignor and consignee, value of consignment, vehicle number, details of Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
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Case Scenario 36
Miscellaneous Provisions under GST
‘Galgotia Travels Ltd.’ (GTL) is established on 3rd April in the city of Bangalore (Karnataka) and the primary objective of the company is to provide air-conditioned contract-based passenger transportation services at affordable fares. The company obtains voluntary registration under GST from 1st May. On 1st July, the company purchased motor vehicles (omnibus) of various seating capacities as follows: Seating capacity (including driver) No. of vehicles Purchase price (per vehicle- Rate of GST 8 persons 10,00,000 CGST-9%; SGST - 9% 9 persons 12,00,000 CGST-9%; SGST - 9% 11 persons 14,00,000 CGST-9%; SGST - 9% 13 persons 15,00,000 IGST-18% From the month of July, GTL associated with POKO Ltd. to enhance the business operations. POKO Ltd. owns/operates an electronic platform for supply of passenger transportation services in Bangalore. The company developed an application called ‘POKO’ through which the customers can access the nearest available motor vehicles (cabs) and avail the services. POKO Ltd. collects the consideration for the services from the customers and remits the same to the service provider (GTL) after retaining the commission charged by it for using its electronic platform. The details of few bookings of GTL in the month of July are as follows: (These bookings are obtained by GTL on its own account and not through POKO Ltd.) Order No. Date of travel Starting city Ending city Residence of the customer Date of payment/ booking Status of customer CA-234 5th July Bangalore Chennai Bangalore 3rd July Registered* CA-435 11th July Bangalore Chennai Chennai 9th July Unregistered PH-534 16th July Chennai Bangalore Hyderabad 14th July Registered* © The Institute of Chartered Accountants of India GK-987 19th July Hyderabad Bangalore Delhi 17th July Unregistered UV-777 22nd July Bangalore Hyderabad Mumbai 20th July Registered* XE-001 25th July Chennai Bangalore Kolkata 23rd July Unregistered *Registered in the State in which they reside In all the above cases, journey is a single-day journey and invoice is issued electronically on the date of travel immediately after the completion of journey. The details of the passenger transportation services supplied by GTL through POKO Ltd. & GST liability on the supply is as follows:- Particulars July (₹) August (₹) September (₹) Value of services 1,30,00,000 1,25,00,000 1,40,00,000 CGST 9,00,000 8,00,000 8,50,000 SGST 9,00,000 8,00,000 8,50,000 IGST 4,00,000 3,50,000 4,50,000 Note: 1. All amounts are exclusive of CGST/SGST or IGST, as the case may be. 2. Booking is confirmed only after paying total fare for the journey. 3. There is no other inward or outward supply transaction for GTL in the relevant period apart from the aforementioned transactions. 4. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. Based on the case scenario given above, choose the most appropriate answer to Q. nos. 1 to 5 below:
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Case Scenario 37
Miscellaneous Provisions under GST
Mr. A, registered under GST, is a practicing Chartered Accountant who is the current financial year are as follows- 1. ₹ 1,86,00,000 2. Income for acting as an examiner from the ICAI and ICSI (not on their rolls) in the month of June - ₹ 2,50,000 3. Rental income from a commercial property, during the year- ₹ 13,90,000 Further, in the month of April, Mr. A purchased 10 computers at a price of ₹ 25,000 each, for his office as new staff has been recruited by his HR team and had availed and utilized ITC on the same. On 31st October, out of these 10 computers, Mr. A donated 2 computers to a blind school within the State. Open market value of each of these computers, on 31st October, is ₹ 10,000. Mr. A belatedly filed GSTR-3B for the month of December, by 5 days. Note: 1. 2. period(s) is nil. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. 3. Mr. A furnishes return on a monthly basis. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:- © The Institute of Chartered Accountants of India
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Case Scenario 38
Miscellaneous Provisions under GST
Dhairya Ltd., a supplier registered under GST in Gujarat, is exclusively engaged scheme under sub-sections (1) and (2) of section 10 of the CGST Act, 2017. The following information is available in relation to Dhairya Ltd. for the current financial year: 1. Total turnover during the quarter April-June is ₹ 1,50,00,000. 2. it switches to regular scheme as a monthly return filer. 3. CGST ₹ 10,000 and SGST ₹ 10,000. 4. 30th June- CGST ₹ 5,000 and SGST ₹ 5,000 (Invoice was dated 31st December of preceding financial year). 5. A machinery was purchased on 15th March of preceding financial year for 6. On 10th August, Dhairya Ltd. sold goods worth ₹ 2,40,000 to Ahmedabad Municipal Corporation (AMC). The contract with AMC was to supply only goods and not any services. 7. On 15th August, Dhairya Ltd. sold goods worth ₹ 10,00,000 to Fishing Department of Gujarat Government. 8. Apart from the information provided above, sales and purchases worth ₹ 15,00,000 and ₹ 12,00,000 respectively were also reported during the period of July to February. 9. During the month of March of the current financial year, Dhairya Ltd. manufactured 2,500 meters of fabric (Sales value of the fabric is ₹ 200 per meter). ITC pertaining to such output was CGST - ₹ 27,500 and SGST - ₹ 27,500. Dhairya Ltd. exported 1,500 meters of fabric under bond and sold the balance 1,000 meters of fabric in Gujarat, India. © The Institute of Chartered Accountants of India Notes: 1. There is no other outward or inward supply transaction apart from the aforesaid transactions, in the relevant period. 2. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. 2. It is also assumed that due date for any return required to be filed by the 3. Rate of GST applicable on goods manufactured by Dhairya Ltd. under regular scheme is 18%. GST rate applicable on inward supplies is also 18% unless otherwise specified. 4. All the purchases and sales are intra-State except the export sales. 5. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:
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Case Scenario 39
Miscellaneous Provisions under GST
Aviant Ltd., registered in Noida (Uttar Pradesh), is a supplier of machinery used for making bottle caps. The supply of machinery is effected as under: − expenses) at which it is supplied in the ordinary course of the business to various customers is ₹ 42,00,000. However, the actual price at which the machinery is supplied to an individual customer varies within a range of ± 10% depending upon the terms of contract of supply with the particular customer. − Apart from the price of the machinery, Aviant Ltd. charges from the customer the following incidental expenses: ♦ associated handling and loading charges of ₹ 10,000 ♦ installation and commissioning charges of ₹ 1,00,000 − The machinery can be dismantled and erected at another site, if required. The above charges are compulsorily levied in case of each supply of machinery. − Transportation of machinery to the customer’s premises is arranged by Aviant Ltd. through a third-party service provider [Goods Transport Agency (GTA)]. The customer enters into a separate service contract with the GTA and pays the freight directly to it. − A cash discount of 2% on the price of the machinery charged from customer is offered at the time of supply, if the customer agrees to make the payment within 15 days of the receipt of the machinery at his premises. In the event of failure to make the payment within the stipulated time, the company- ♦ recovers the discount given at the time of receiving payment from the customer (no separate amount of GST is recovered); and © The Institute of Chartered Accountants of India ♦ charges simple interest @ 1% per month or part of the month (no separate amount of GST is recovered) on the total amount due from the customer (towards the machinery supplied) from the date of making the supply till the date of payment. However, no interest is − For every machinery supplied, Aviant Ltd. receives a price linked subsidy of ₹ 2,00,000 from its holding company Diligent Ltd. Aviant Ltd. has supplied a machinery to an unrelated party, Daffodil Pvt. was issued on 29th August by Aviant Ltd. The corporate office of Daffodil Ltd., which is at New Delhi, has entered into contract with Aviant Ltd. for supply of machinery. However, the machinery has been installed at Daffodil Pvt. Ltd’s registered manufacturing unit located in Gurugram (Haryana). Daffodil Pvt. Ltd. has paid the freight directly to the GTA. Daffodil Pvt. Ltd. as it agreed to make the payment within 15 days. However, Daffodil Pvt. Ltd. paid the consideration on 30th September. Note: 1. Bottle cap making machine CGST – 6% SGST – 6% IGST – 12% Service of transportation of goods CGST – 2.5% SGST – 2.5% IGST – 5% Other services involved in the above supply CGST – 9% SGST – 9% IGST – 18% 2. All the above transactions are exclusive of GST, wherever applicable. 3. period is Nil. Further, subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. © The Institute of Chartered Accountants of India Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:
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Case Scenario 40
Miscellaneous Provisions under GST
Starkart Limited owns and operates a web portal in the name of “Starkart” and is registered with the jurisdictional GST authorities in Delhi as an electronic Starkart provides listing service to various sellers for selling the goods to ultimate customers. Besides this, Starkart also sells its own products through the same web portal. For the listing services provided to sellers, Starkart charges a listing fee at the rate of 10% of turnover of goods sold by the seller in a particular month. Such listing fee is recovered from the seller irrespective of any return of goods sold through Starkart. The customers can choose from wide range of goods listed on the web portal and place an online order for goods. The payment is made by the customers through the payment gateway in online mode only. At the time of monthly settlement, Starkart makes the payment to The invoice for goods sold on Starkart is issued by the seller in the name of The goods are shipped directly by the seller to the customer and there is no responsibility of shipping the goods on Starkart for such third-party sellers. In case of return of goods by the customer, the shipping is arranged by Starkart. It charges a fee equivalent to 20% of the value of goods returned as cancellation charges and refunds the balance amount to the customer. Further, 10% of the value of goods returned is collected from the seller by Starkart as handling charges for return of goods. In the month of January, Pulkit, a resident of Rajasthan, purchased following goods from Starkart: a. Laptop having a value of ₹ 50,000 and a printer having a value of ₹ 10,000. Both the products are sold by Infocom Limited, a seller listed on Starkart and registered under GST in the State of Uttar Pradesh. b. Mobile phone having a value of ₹ 30,000 sold by Starkart in its own capacity. © The Institute of Chartered Accountants of India c. CCTV camera system having a value of ₹ 1,00,000 sold by Secure World, listed on Starkart and registered under GST in the State of Gujarat. All the amounts given above are exclusive of GST, wherever applicable. Infocom Limited and Secure World is nil. Further, there is no other inward or outward supply transaction for Starkart, Infocom Limited and Secure World in January apart from the aforementioned transactions. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. GST is applicable on all inward and outward supplies at the following rates unless otherwise specified: CGST - 9%, SGST - 9%, IGST - 18% Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:-
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Case Scenario 41
Miscellaneous Provisions under GST
Advance Traders is a partnership firm in Jaipur, Rajasthan. The firm has obtained GST registration at its Head Office (HO) in Jaipur and is a monthly return filer. Further, the firm is having its depot for storage of goods in other districts in Rajasthan. The depots are added as additional place of business in the GST registration obtained at HO. Following details are provided about the firm for the month of July: a. Advance Traders received goods worth ₹ 5,00,000 for which GST is payable on reverse charge basis. The goods were received on 25th July. The supplier issued an invoice dated 24th July and payment for the same was debited in the bank account of Advance Traders on 30th July. Due to the absence of accountant, the transaction was recorded in the books of accounts on 1st August. b. Mr. X, a partner in the firm, booked a Hotel in Udaipur, Rajasthan for the wedding of his daughter in the month of October. An advance of ₹ 5,00,000 for booking the hotel was paid by way of online payment from the current account of Advance Traders in July. The hotel charged GST on such booking at the rate of 28% (CGST @ 14% and SGST @ 14% or IGST @ 28%, as the case may be) on the amount received as advance and issued a receipt voucher. c. Advance Traders made a supply of goods worth ₹ 25,00,000 during the month of July. Out of the aforesaid supply, goods worth ₹ 5,00,000 were not liable to GST. However, Advance Traders inadvertently charged GST on such goods and collected the same from the customers. other conditions necessary for availing ITC have been fulfilled. All the above transactions are exclusive of GST, wherever applicable. GST is applicable on all inward and outward supplies @ 18%. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:- © The Institute of Chartered Accountants of India
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Case Scenario 42
Miscellaneous Provisions under GST
William & Sons (WS) is a partnership firm, registered under GST, engaged in manufacturing activity in the State of Rajasthan under GST and files return on a monthly basis. In the month of July, following transactions were undertaken by WS: (a) Intra-State sale of goods worth ₹ 10,00,000. Out of such sale, ₹ 5,00,000 worth of goods were liable to GST at 28% and balance were liable to GST at 18%. (b) Intra-State purchase of goods worth ₹ 10,00,000 which is liable to GST at 28%. (c) WS intended to transfer the business as going concern to Morgan & Sons (MS) on 31st July. As per the terms of transfer, WS will transfer all the business assets worth ₹ 50,00,000 and all the liabilities valued at ₹ 20,00,000. (d) WS, on account of such transfer, paid gift worth ₹ 50,000 to its 3 employees as a reward towards their services to the firm. During the month of September, MS received the notice from the GST Department for the outstanding liability of GST for ₹ 5,00,000 pertaining to the period before transfer of business by WS. Such liability was determined after the transfer of business. For this purpose, assume that all the assets and liabilities were transferred by WS to MS. is nil. Further, subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. GST is applicable on all inward and outward supplies @ 18% unless otherwise specified. (Ignore CGST, SGST and IGST bifurcation for the sake of simplicity.) All the amounts given above are exclusive of GST, wherever applicable. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:- © The Institute of Chartered Accountants of India
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Case Scenario 43
Miscellaneous Provisions under GST
KLM Ltd. is a large publishing and printing house registered under GST under a single GSTIN in Maharashtra. It is engaged in supply of books, letter cards, envelopes, guides and reference materials. KLM Ltd. has front offices in Mumbai & Nagpur (Mumbai office being declared as principal place of business and Nagpur office and workshop located at Nagpur as additional place of business in Maharashtra) for receiving the orders; orders are supplied to front office or supplied to recipient directly, from the workshop located at Nagpur, depending on order. To save the time, workshop has in-house mess for the employees working in the workshop, where lunch is provided free of cost as per the employer-employee agreement. During April, KLM Ltd. received a proposal for printing of 5,000 copies of by the author. KLM Ltd. agreed to supply the books. As per the requirement of the author, 2500 copies were supplied from workshop to Nagpur front office and 2500 copies to Mumbai front office from where the author collected books. Satisfied with the quality of books, the author placed another order of 10,000 pieces of letterhead during May, the design and logo was supplied by the author for printing. Due to these orders, KLM Ltd. earned a handsome amount of profit and decided to gift employees for their performance. Accordingly, KLM Ltd. gifted mobile phone worth ₹ 36,500 each to all its 45 employees. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
0/2 solved
Case Scenario 44
Miscellaneous Provisions under GST
Diwakar (P) Ltd., registered under GST in Delhi, is engaged in trading of cement as well as providing services by way of renting of commercial properties. On 2nd January, it received a contract for supply of 1,000 kg cement from Pakija (P) Ltd., registered under GST in Punjab. Pakija (P) Ltd. directed Diwakar (P) Ltd. to send the consignment to Gajab & Sons, registered under GST in Gujarat. Diwakar (P) Ltd. prepared the consignment on 4th January and dispatched the same on the next day from its warehouse in Gurugram, Haryana. The invoice was also issued on 5th January. On 7th January, it received the cheque and accountant entered the payment in books of accounts. However, he presented the cheque in bank on 14th January which was credited in the bank account of on cement was reduced from 28% to 18%. On the inspection of said goods, it was found that there is some deficiency in the quality of goods and therefore, the defective goods were returned to Diwakar (P) Ltd. Diwakar (P) Ltd. issued credit note for the same on 20th January. Diwakar (P) Ltd. let out its property located in Delhi for a year in lieu of monthly rental income and received rent for the month of January from Pakija (P) Ltd. on 10th February. Pakija (P) Ltd. will establish its sales outlet on the same. However, as per the contract entered, the rent for a month should have been received by 7th of the following month. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:-
0/3 solved
Case Scenario 45
Miscellaneous Provisions under GST
Jain Bhagwan (P) Ltd. deals in supply of air conditioners (ACs). It also undertakes installation of ACs at the premises of the client. The company has provided the following details for the month of February: Date Transaction 2nd February Suppled and installed 10 ACs at the newly established office of M/s Ram Mohan & Associates, a CA firm, registered under GST in New Delhi under the cover of an invoice. The company charged ₹ 21,000 per AC from the CA firm. Payment for the same was received on 28th February. 15th February Provided service of installation of 15 ACs at Mr. Varun’s Mansion in Chandigarh. Mr. Varun is an individual and is unregistered. The company charged 2,000 per installation. The company forgot to issue the invoice for the service in the February month. However, payment was received in advance on 13th February. 20th February Received advance of ₹ 2,00,000 from Sunshine Ltd. for service of installation of AC at its factory in Bawana, Delhi. AC is installed on 28th February and the invoice is also issued on the date of provision of service, i.e., on 28th February. The client is registered under GST in New Delhi. Other relevant information: 1. Standard price charged: Air Conditioner: ₹ 20,000 per piece Service of installation of air conditioner: ₹ 2,000 per installation AC + Installation: ₹ 21,000 per piece © The Institute of Chartered Accountants of India 2. Date of transaction Applicable rate of GST on supply of air conditioner Applicable rate of GST on supply of service of installation of air conditioner Before 22nd February 18% 5% On or after 22nd February 12% 12% 3. Jain Bhagwan (P) Ltd. is registered under GST in Delhi. 4. One order for supply of 100 ACs in Hongkong has been received by the company. The company is unable to determine the time and value for this supply. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
0/4 solved
Case Scenario 46
Miscellaneous Provisions under GST
Bright Public School, New Delhi, under the aegis of Bright Minds Society, has provided/received following services/supplies in the month of March: 1. Provided transportation services to its students, teachers and other staff for commuting to and from school. Such transportation services are provided to Bright Public School by Ambaji Transporters. An amount of ₹ 1,500 per month is charged from students whereas such services are provided free of cost to teachers and other staff, being part of their employment contract. Consolidated amount of ₹ 2 lakh per month is paid to Ambaji Transporters. 2. It conducted entrance examination for students of Class XI for upcoming academic year. It charged entrance fee of ₹ 1,000 from external students and nominal entrance fee of ₹ 200 was charged from internal students at school. A total of 2000 students gave entrance exam out of which 1000 were internal students. 3. Bright Public School also provides boarding and lodging facilities to its students belonging to other cities of India. A consolidated amount of ₹ 1,75,000 per annum is charged per student as a consideration for educational services as well as for services of boarding and lodging provided to them. Note: The above amounts are exclusive of GST, wherever applicable. All the transactions are intra-State. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
0/4 solved
Case Scenario 47
Miscellaneous Provisions under GST
Zoom Air is an airline company operating domestic as well as international flights. The head office of Zoom Air is in Mumbai and the company has also obtained registration under GST in each of the States from where the flight operations are being conducted. During the month of January, following transactions were undertaken by it: (i) Zoom Air sold air tickets worth ₹ 5,00,000 during the month from its head office and the breakup of air fare is as follows: Basic fare excluding GST – ₹ 4,00,000 Passenger Service Fee (PSF) and User Development Fee12 (UDF) [inclusive of GST] – ₹ 1,00,000 PSF and UDF are remitted by Zoom Air to the airport authority. Further, the amount of PSF and UDF is separately disclosed in the invoice issued to customers by Zoom Air along with applicable GST. The airport authority pays an amount of 5% of PSF and UDF (inclusive of GST amount) collected as collection charges to Zoom Air on which GST is applicable. There is no levy of PSF and UDF on the tickets booked by Zoom Air for its own crew or other employees. (ii) Zoom Air (Head Office) has collaborated with Supertrip India, an online travel portal, providing services to the customers by way of booking air tickets through its electronic commerce platform and registered under GST in the State of Maharashtra. During the month, Supertrip India booked tickets for ₹ 2,00,000 (base fare excluding GST, PSF and UDF) for the customers of Zoom Air. The amount was remitted by Supertrip India section 52. In addition to the aforesaid amount, Supertrip India charged commission from Zoom Air at the rate of 5% of the base fare of air tickets booked. (iii) Zoom Air (Head Office) charged 100% cancellation fee from the customers for bookings made in prior months. The amount of 12 Both PSF and UDF are statutory fees which are required to be collected by the airlines as per Government directions and authorization given to airlines. © The Institute of Chartered Accountants of India cancellation fee charged was ₹ 1,00,000 inclusive of GST. Instead of actually collecting the cancellation fee from the customers, such amount was adjusted against the booking amount and GST discharged at the time of initial bookings. However, the PSF and UDF amounting to ₹ 10,000 (inclusive of GST) charged from the customers against such bookings were refunded. (iv) Zoom Air (Head Office) provided gifts in the form of air tickets to 10 of its employees based at its head office for an amount equivalent to ₹ 60,000 each. No amount was recovered from the employees for such air tickets. (v) Zoom Air has a corporate tie-up with Welcome Hotel, located in Rajasthan, for stay of its crew members. For January, the hotel issued an invoice of ₹ 5,00,000 in the name of Zoom Air, Head office, Mumbai. Haryana office of Zoom Air has provided services by way of sale of online advertisement space to Amazing Pvt. Ltd. (a company registered in the State of Haryana) for promotion of Amazing Pvt. Ltd.’s products. The amount charged for such service by Haryana office of Zoom Air is ₹ 5,00,000. All the amounts given above are exclusive of GST unless otherwise provided. The opening balance of Electronic Credit Ledger of Zoom Air and Supertrip assume that all the other conditions necessary for availing ITC have been fulfilled. Assume that there is no other outward or inward supply transaction apart from aforesaid transactions, in the month of January. GST is applicable on all inward and outward supplies unless otherwise specified @ 18%. (Ignore CGST, SGST and IGST bifurcation for the sake of simplicity.) In case of cancellation of tickets, the airport authority and Zoom Air had an agreement that PSF and UDF related adjustment shall be finalized at the end of financial year, i.e., during the month of March. Further, separate GST invoice shall be issued to carry out such adjustment in books of accounts. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:
0/5 solved
Case Scenario 48
Miscellaneous Provisions under GST
Infotel Ltd. (hereinafter referred to as Infotel) is a telecommunication company operating in India. The company has obtained registration in all the States in India and has its head office in Haryana. The invoice for telecommunication services in India is issued to the customer by head office located in Haryana for all the services. During the month of January, following transactions were undertaken: 1. Receipts from post-paid mobile customers are ₹ 25,00,000 (₹ 5,00,000 is from customers located in Haryana and remaining amount is from customers located in rest of India). Apart from this, Infotel collected an amount of ₹ 20,00,000 as subscription income (identifiable separately on the post-paid bill) from the customers (this amount is not included in the collection at point No. 1). The same was collected for payment to Cloudzone Ltd. (hereinafter referred to as Cloudzone), an online content provider located in Maharashtra. Full amount was remitted to Cloudzone by Infotel on behalf of the post-paid customers. Cloudzone issues invoice to the customers in its own name. As per the agreement, Infotel is not involved in any sort of facilitation or arrangement of supply from Cloudzone to the customers. The customers on their own availed the facility to pay for the services provided by Cloudzone by way of payment through Infotel. Subscription income is charged from the cutomers on actual basis and no fee is charged by Infotel from the customers for such payment facility. Infotel receives an amount equivalent to 10% of the total amount collected from the customers as collection charges from Cloudzone. 2. Direct receipts from prepaid mobile customers are ₹ 50,00,000 (Entire payment is received from customers located outside Haryana) 3. Mobile telecommunication revenue received from Paykwik Ltd. (hereinafter referred to as Paykwik), a reseller/ selling agent of Infotel, is ₹ 30,00,000. The location of Paykwik is in Maharashtra. Commission paid to Paykwik is 10% of the revenue received. © The Institute of Chartered Accountants of India 4. Infotel collected an amount of ₹ 5,00,000 from the customers located in Haryana against the direct to home (DTH) service provided in Haryana. This amount includes a one-time installation charges of ₹ 50,000. 5. Infotel purchased certain equipment for installation of its towers in the State of Rajasthan. The goods were delivered and installed by the supplier (based in Rajasthan) at Infotel’s site in Rajasthan and invoice was issued to Infotel at Haryana Head Office. Total amount charged was ₹ 75,00,000. 6. Infotel collaborated with Amaze Inc., a company based in USA, for technological support in relation to provision of cloud storage services to its customers. The amount paid by Infotel to Amaze Inc. is ₹ 5,00,00,000 for technology support. Further, the cloud storage services were provided by Infotel to its unrelated premium customers on free of cost basis for the trial period. The open market value of such services is ₹ 75,00,000. 7. As per the agreement with Amaze Inc., in case of any failure in provision of cloud storage services to the customers by Infotel, Amaze Inc. shall provide the backup server access to Infotel’s customers for data storage. The customer is not aware of the fact that data is being stored on Amaze Inc.’s server in case of failure at Infotel’s end. Amaze Inc. charged an amount of ₹ 50,00,000 from Infotel for such instance in the month of January. All the amounts given above are exclusive of GST unless otherwise provided. Nil for all the registrations. GST is applicable in the aforesaid case scenario @ 18%, unless otherwise specified. Ignore CGST, SGST and IGST bifurcation for the sake of simplicity. Assume that there is no other outward or inward supply transaction apart from aforesaid transactions, in the month of January. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below: © The Institute of Chartered Accountants of India
0/4 solved
Case Scenario 49
Miscellaneous Provisions under GST
Dhairya Limited, India, a registered supplier under GST in the State of Kerala, is engaged in supplying goods and services. Dhairya Inc., San Francisco, USA, is a subsidiary of Dhairya Limited, India and is engaged in supply of information technology services to customers in USA. Dhairya Limited, India has undertaken following transactions during the month of April: Particulars Amount (₹) Supplied large paper rolls to Ford Mount School, Bengaluru (Karnataka), for printing of question papers. As directed by the school, Dhairya Limited delivered the paper rolls at a printing press located in Trivandrum, Kerala. 15,00,000 Bond amount recovered from the outgoing Managing Director (residing in Kerala) of Dhairya Limited since he had left the employment before contracted period. 2,50,000 Supplied steel sheets in the territorial waters* to Dhruvank Builders. *Located at a distance of 12 nautical miles from the baseline of Kerala and 15 nautical miles from the baseline of Tamil Nadu. 6,00,000 Received an advance for future supplies of goods from a customer based in Kerala 2,10,000 Received an advance for future supplies of services from a customer based in Kerala 4,90,000 Computer (used for business purpose & on which no ITC has been taken yet) given free of cost to unrelated person based in Kerala [Purchased 2 years’ back at a price of ₹ 1,12,100 (including GST). Open market value is ₹ 75,000.] Nil Dhairya Limited provided the following additional information for the month of April: © The Institute of Chartered Accountants of India (i) The company paid the sitting fee of ₹ 6,00,000 to an independent director, based at Cochin, Kerala, for attending meetings. (ii) The company availed the services of an Arbitral Tribunal in Cochin, Kerala to settle a business dispute and paid ₹ 7,00,000. Further, Dhoom Events Ltd., an event management company, located and registered at Karnataka, had organized a cultural event in the month of May for Dhairya Limited, in Dubai. Dhariya Limited paid a sum of ₹ 10,00,000 to Dhoom Events Ltd. for the same. Notes – (A) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively for both inward and outward supply of goods and services, wherever applicable. (B) (C) Dhairya Limited, India is Nil. (D) Assume that there is no other outward or inward transaction apart from aforesaid transactions, in the months of April and May. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
0/4 solved
Case Scenario 50
Miscellaneous Provisions under GST
Shreyans Ltd. (hereinafter referred as “company”) is a conglomerate having diversified businesses including hotels, FMCG (Fast-Moving Consumer Goods), information technology etc. It has its corporate office in Delhi and operations across multiple States in India. As an internal policy, the company has obtained single GST registration in each State irrespective of the diversified business operations being undertaken in the State. During the month of April, the company undertook the following transactions: (a) The FMCG division of the company in Jaipur, Rajasthan agreed to use the vacant godown within the premises of Hotel Division in Udaipur, Rajasthan for storage of its goods. The value of such an arrangement was agreed at ₹ 5 lakh per month. Said amount was agreed to be adjusted by way of intra-division book adjustment on a monthly basis. (b) The Hotel Division of the company in Maharashtra used the IT platform owned and managed by the IT Division of the company in Delhi. The value of such services was determined as ₹ 12 lakh per month. The IT division treated the same as deemed supply liable to GST as per Schedule I of the CGST Act, 2017 and charged GST on such deemed supply in the invoice issued to Hotel Division on 25th April. The Hotel Division availed the input itself. However, no payment was made for such services by the Hotel Division to the IT Division. (c) The Hotel Division provided accommodation services to a US citizen and resident for a wedding ceremony organized at its hotel in Udaipur, Rajasthan. The total amount of ₹ 2 crores for such services was paid by an Indian individual residing in Delhi on behalf of the US resident in Indian currency. The amount was received by the Mumbai, Maharashtra Office of Hotel Division. (d) The company received long term lease of an industrial plot from Maharashtra Industrial Development Corporation (MIDC) in auction against payment of an upfront amount as lease premium of ₹ 20 crores © The Institute of Chartered Accountants of India for a period of 50 years. The company paid location charges of ₹ 5 crores in addition to the said premium. The rate of GST in case of intra-State supplies, unless otherwise provided shall be 9% CGST and 9% SGST) and for inter-State supplies shall be 18% IGST. All otherwise specified. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below:-
0/4 solved
Case Scenario 51
Miscellaneous Provisions under GST
Vlook Smart Ltd. (hereinafter referred as “company”) is a leading retail chain of India. It has retail stores in multiple States with its corporate office located in Mumbai, Maharashtra. The company has GST registrations across all States from where it operates its retail stores. The company undertook following transactions during the month of April: (a) Supplied goods worth ₹ 100 crore through its retail store in Jaipur, Rajasthan and offered a cash discount of ₹ 2 crore to the customers in the State of Rajasthan during the month. (b) Ghanshyam Das, a retailer in Gujarat, purchased goods worth ₹ 5 lakh in the month of January of the preceding financial year. Subsequently, the company offered an incentive (discount) on such purchases to Ghanshyam Das by issuing a commercial credit note of ₹ 50,000 in the month of April. (c) The company received an amount of ₹ 2 crore in April as penalty for delayed receipt of consideration from its customers for sale of goods made in the month of January of the preceding financial year in the retail store of Jaipur, Rajasthan. (d) The company incurred an expense of ₹ 50 lakh in transportation of empty cargo containers to its centralized warehouse in Mumbai from all the States through a Goods Transport Agency. The rates of GST, unless otherwise specified, shall be 9% CGST, 9% SGST and unless otherwise specified. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
0/3 solved
Case Scenario 52
Miscellaneous Provisions under GST
SR Associates is a partnership firm registered under GST in the State of Rajasthan. In the month of July, the following transactions were made by SR Associates: (a) Purchase of commodity X on 1st July from a registered person for an amount of ₹ 5,00,000 at the rate of ₹ 1000 per tonne from the open market. The said commodity was deposited in the warehouse of NCDEX Ltd. (an agricultural commodity exchange) in Rajasthan as a security against transactions entered by SR Associates on the same day. Commodities of other vendors are also being kept in said warehouse. (b) In order to hedge the aforesaid transaction, on 1st July, SR Associates undertook a derivative sale transaction in futures contract for the month of August at NCDEX at the rate of ₹ 1,100 per tonne. (c) SR Associates took subscription for an AI (Artificial Intelligence) based platform from an unrelated party, ABC Inc (a company based in US) to get real time updates on the pricing of commodity X in the international market. ABC Inc charged ₹ 50,000 for such subscription. The invoice was issued to SR Associates on 1st July, but the payment was made to ABC Inc on 20th August. (d) NCDEX (registered under GST) charges rent from SR Associates at the rate of ₹ 10,000 per month and service charges at the rate of ₹ 20,000 per month. (e) On the date of expiry of future contract of the month of August, i.e. 31st August for commodity X, the rate of commodity X was ₹ 900 per tonne. SR Associates squared off the contract (without physical delivery) for the month of August at the same rate. (f) NCDEX charged brokerage on the transactions (both purchase and sale of derivative contract separately) at the rate of ₹ 5,000 per contract from SR Associates in the month when such transaction was entered and when such transaction was squared off. (g) was applicable at the rate of ₹ 10 per tonne which is not included in the rate per tonne mentioned at point (a) above. © The Institute of Chartered Accountants of India All the amounts given above are exclusive of GST, wherever applicable, unless Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. Assume that there is no other outward or inward supply transaction apart from aforesaid transactions, in the months of July and August. GST is applicable in the aforesaid case scenario at the following rates unless otherwise specified: I. Intra-State supply – 9% CGST and 9% SGST II. Inter-State supply – 18% IGST Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 4 below:-
0/4 solved
Case Scenario 54
Miscellaneous Provisions under GST
Aspire Solutions Private Limited (hereinafter referred to as ‘Aspire Solutions’) is engaged in providing multidimensional services to its clients through its office in Haryana, registered under GST. During the month of July, the following transactions were undertaken by Aspire Solutions: (i) Import of certain cloud services from Bizcart.com for an amount of ₹ 51,00,000. (ii) Aspire Solutions pays sitting fee of ₹ 25,000 each to its 4 directors per month. Further, there are two directors who are in the executive roles and are withdrawing ₹ 2,00,000 each per month as salary from the company 1961, is deducted from such salary. (iii) Aspire Solutions paid for life insurance of its employees in compliance of its internal policy. The total amount of premium paid for 20 employees was ₹ 5,00,000. (iv) Aspire Solutions provided consultancy services to its client, Zoom Corp. based in Bangalore and issued an invoice of ₹ 30,00,000. (v) Empowering India is a Non-Government Organisation located in Haryana. It aims at empowering the eligible companies to grow their business in India. Aspire Solutions, being one of the eligible companies, received a subsidy of ₹ 5,00,000 in lumpsum from Empowering India for the month of July. (vi) Aspire Solutions provided sponsorship services to Mr. X, an individual, for an event organised by it in the State of Haryana. The amount agreed for such sponsorship services is ₹ 5,00,000. All the amounts given above are exclusive of GST unless otherwise provided. There is no other outward or inward supply transaction apart from aforesaid transactions in the month of July. company is nil. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled. © The Institute of Chartered Accountants of India GST is applicable on all inward and outward supplies in the aforesaid case scenario @ 18%, unless otherwise specified. Ignore CGST, SGST and IGST bifurcation for the sake of simplicity. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos 1 to 5 below:
0/5 solved
Case Scenario 55
Miscellaneous Provisions under GST
Rishi is a registered supplier of goods and services under GST in the State of Karnataka. During the month of April, Rishi provided the following outward supplies: Particulars Amount (₹) 4,00,000 Insurance agent service to TrustGuard Insurance Company, registered under GST 30,000 Interest received for late payment from various customers 10,000 Recovery agent service to ABC Limited, a trader of goods 40,000 Security and housekeeping service provided to Bachpan School (upto higher secondary), an unregistered person under GST, at its Annual Day function held at Vallabh Convention centre being outside the school campus. 50,000 Renting of motor vehicle designed to carry passengers provided to CoverCrest Limited wherein cost of fuel is 2.50%) 80,000 awarded by a public sector undertaking (PSU), registered under section 51 in the State of Tamil Nadu. PSU instructed Rishi to make the supply in the State of Karnataka. Value of contract is ₹ 5,00,000 1,50,000 All the amounts mentioned above are excluding GST, wherever applicable (unless otherwise specified). Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 3 below:
0/3 solved