SRISHTI ACADEMY
TAXATION – INDIRECT TAX (GST TEST)
– 23.02.2018
ALL the questions are compulsory
Each question carries FIVE
marks
Marks: 75 Time: 2Hrs & 15Mins
Question No. 1
Shipra Traders is a registered
supplier of goods in Assam. It purchased goods valued at Rs. 10,000 from Kartik Suppliers
located within the same State. Kartik Suppliers charged CGST & SGST
separately in its invoice. Subsequently, Shipra Traders sold goods valuing Rs. 9,500 to Rabina Manufacturers
located in Assam. 20% of the inputs purchased are still lying in stock and
there was no opening stock of goods. Rate of CGST and SGST on supply and
purchase of goods is 9% each. Calculate the net GST payable by Shipra Traders
and input tax credit (ITC) to be carried forward, if any.
Question No. 2
M/s Y Ltd. being a trader of laptops has two units in Chennai and in
Mumbai.
|
Place
|
P.Y. Turnover Rs.
in
lakhs (Excluding taxes)
|
|
Chennai
|
52.00
|
|
Mumbai
|
12.00
|
You
are required to answer the following:
a)
M/s Y Ltd is eligible for composition levy in the
current year.
b)
If so, M/s Y Ltd can opt composition scheme for
Chennai location and normal scheme for Mumbai.
c)
Need to give separate intimations for opting
composition scheme in each State.
Question No. 3
M/s
Moon Pvt. Ltd. in corporated in Chennai on 1st July 2017 has the following
details for the year 2017-18:
|
S.No.
|
Particulars
|
Value (Rs.
in
lacs)
|
|
i.
|
Inter-State exempted supply of goods
|
4.00
|
|
ii.
|
Intra-State supplies of services
|
5.00
|
|
iii.
|
Non-taxable supplies
|
2.00
|
|
iv.
|
Exempted
supplies of services
|
0.60
|
|
v.
|
Value of export
of goods
|
7.00
|
M/s Moon Pvt. Ltd. is required to register
compulsorily under GST Law, advice.
Whether
your answer is different if S.No. (i) Above, inter-State taxable supply goods
for Rs. 4 lacs.
Question No. 4
Sahab Sales, an
air-conditioner dealer in Janakpuri, Delhi, needs 4 air-conditioners for his
newly constructed house in Safdarjung Enclave. Therefore, he transfers 4
air-conditioners [on which ITC has already been availed by it] from its stock,
for the said purpose. Examine whether the said activity amounts to supply under
section 7 of the CGST Act, 2017.
Further, a Janakpuri resident,
Aakash, approached Sahab Sales. He sold an air-conditioner to Sahab Sales for Rs. 5,000. Aakash had bought the said
air-conditioner six months before, for his residence. Does sale of the air
conditioner by Aakash to Sahab Sales amount to supply under section 7 of the
CGST Act, 2017?
Question No. 5
State whether the following supplies
would be treated as supply of goods or supply of services as per Schedule II of
the CGST Act:
a) Renting
of immovable property
b) Goods
forming part of business assets are transferred or disposed of by/under
directions of person carrying on the business, whether or not for consideration.
c) Transfer
of right in goods without transfer of title in goods.
d)
Transfer of title in goods under an agreement which
stipulates that property shall pass at a future date.
Question No. 6
M/s X Ltd. being a registered person supplying
taxable goods in the following manner:
|
Particulars
|
Rs.
|
|
Intra-State
supply of goods
|
18,00,000
|
|
Inter-State
supply of goods
|
13,00,000
|
|
Intra-State
purchases
|
13,00,000
|
|
Inter-State
purchases
|
1,50,000
|
|
ITC at the beginning of the relevant tax
period:
|
|
|
CGST
|
1,30,000
|
|
SGST
|
1,30,000
|
|
IGST
|
1,70,000
|
i.
Rate of CGST, SGST and IGST to be 9%, 9% and18%
respectively.
ii.
Inward and outward supplies are exclusive of taxes.
iii.
All the conditions
necessary for availing the input tax credit have been fulfilled.
Compute the net GST payable by M/s X Ltd during the tax period. Make
suitable assumptions.
Question No. 7
Royal Fashions, a registered supplier of
designer outfits in Delhi, decides to exhibit its products in a Fashion Show
being organised at Hotel Park Royal, Delhi on 4th January, and 20XX. For the
occasion, it gets the makeover of its models done by Aura Beauty Services Ltd.,
Ashok Vihar, for which a consideration is Rs. 5, 00,000
(excluding GST) has been charged. Aura Beauty Services Ltd. issued a duly
signed tax invoice on 10th February, 20XX showing the lumpsum amount of Rs. 5,90,000
inclusive of CGST and SGST @ 9% each. Royal Fashions made the payment the very
next day. Answer the following questions:
i.
Examine
whether the tax invoice has been issued within the time limit prescribed under
law?
ii.
Tax consultant of Royal Fashions objected to the
invoice raised suggesting that the amount of tax charged in respect of the
taxable supply should be shown separately in the invoice raised by Aura Beauty
Services Ltd. However, Aura Beauty Services Ltd. contended that there is no
mandatory requirement of showing tax component separately in the invoice. You
are required to examine the validity of the objection raised by tax consultant
of Royal Fashions?
Question No. 8
Air Bus Ltd,
furnishes you the following information for computation of its GST liability
for the month of Oct 2017.
|
a)
|
Passenger
travelling from Mizoram to Chennai – 2000 passengers, Gross Value per ticket
|
Rs. 2,500
|
|
b)
|
Passenger
travelling from Chennai-USA 500 passengers, USA-CHENNAI – 200 passengers,
Gross Value per ticket
|
Rs. 45,000
|
|
c)
|
Passengers
travelling from Mumbai – Tripura - Mumbai with single ticket – 1000
passengers. Gross value per ticket
|
Rs. 5,000
|
Air Bus Ltd. charging 40% passenger tax which
is not included in the gross value per ticket.
Find the GST liability?
All passengers are travelled in economic class except point (b).
Question No. 9
A hotel owner provided accommodation in Haryana,
through an electronic commerce operator – Cool Trips. The hotel owner is not
liable to get registered as per the provisions of section 22(1) of the CGST
Act.
Who is the person liable to pay GST in this case?
Would your answer be different if the Electronic
Commerce Operator Cool Trips does not have a physical presence in India?
Question No. 10
Granites Textiles Ltd. purchased a needle detecting
machine on 8th July, 2017 from Makhija Engineering Works Ltd. for Rs. 10,00,000
(excluding GST) paying GST @ 18% on the same. It availed the ITC of the GST
paid on the machine and started using it for manufacture of goods. The machine
was sold on 22nd October, 2018 for Rs. 7,50,000 (excluding GST), as second-hand
machine to LT. Pvt. Ltd. The GST rate on supply of machine is 18%.
State the action which Granites Textiles Ltd. is
required to take, if any, in accordance with the statutory GST provisions on
the sale of the second-hand machine.
Question No. 11
Determine the time of supply in the
following cases assuming that GST is payable under reverse charge:
|
S.
No.
|
Date of payment by recipient for supply of services
|
Date of issue of invoice by supplier of services
|
|
|
(1)
|
(2)
|
|
i.
|
August
10
|
June
29
|
|
ii.
|
August
10
|
June 1
|
|
iii.
|
Part payment made on June 30 and balance amount paid on September 1
|
June
29
|
|
iv.
|
Payment is entered in the books of account on June 28 and debited in recipient’s
bank account on June 30
|
June 1
|
|
v.
|
Payment is entered in the books of account on June 30 and debited in recipient’s
bank account on June 26
|
June
29
|
Question No. 12
Mark Agro Products
Ltd., furnishes the following details of various services provided by it in the
month of August, 2017:
|
S. No.
|
Particulars
|
Amount (Rs.)
|
|
1.
|
Rearing of
Silkworm and horticulture
|
2,50,000
|
|
2.
|
Plantation of
tea and coffee
|
2,00,000
|
|
3.
|
Renting of
vacant land for performing marriage ceremony
|
4,50,000
|
|
4.
|
Sale of wheat on
commission basis
|
50,000
|
|
5.
|
Sale of rice on
commission basis
|
2,00,000
|
Compute the value
of taxable supply of services and the GST liability OF Mark Agro Products Ltd.
for the month of August 2017. Assume rate of GST 18%.
Question No. 13
Crunch Bakery Products Ltd sells biscuits and cakes
through its dealers, to whom it charges the list price minus standard discount
and pays GST accordingly. When goods remain unsold with the dealers, it offers
additional discounts on the stock as an incentive to push the sales.
Can this additional discount be reduced from the
price at which the goods were sold and concomitant tax adjustments made?
Question No. 14
i.
Tirupati Traders, a registered supplier of
goods, pays GST [CGST & SGST or IGST, as the case may be] under regular
scheme. It has furnished the following particulars for a tax period:-
|
Particulars
|
Rs.
|
|
Value of intra-State supply of goods
|
12,000
|
|
Value of intra-State purchase of goods
|
10,000
|
Note:
1) Rates of CGST, SGST
and IGST are 9%, 9% and 18% respectively.
2) Both inward and
outward supplies are exclusive of taxes, wherever applicable.
3) All the conditions
necessary for availing the input tax credit have been fulfilled.
Compute the net GST payable by Tirupati Traders during
the given tax period assuming that there is no opening balance of input tax
credit (ITC). Make suitable assumptions wherever required.
ii.
Govind, a registered supplier, is engaged in
providing services in the neighboring States from his registered office located
in Mumbai. He has furnished the following details in respect of the inward and
outward supplies made during a tax period:-
|
Particulars
|
Rs.
|
|
Inter-State supply of services
|
1,80,000
|
|
Receipt of goods and services within the
State
|
1,00,000
|
Assume the rates of taxes to be as under:-
|
Particulars
|
Rate
|
|
CGST
|
9%
|
|
SGST
|
9%
|
|
IGST
|
18%
|
Note:
1) Both inward and
outward supplies are exclusive of taxes, wherever applicable.
2) All the conditions
necessary for availing the input tax credit have been fulfilled.
Compute the net GST payable by Govind during the given
tax period. Make suitable assumptions if required.
Question No. 15
MBM
Caretakers, a registered person, provides the services of repair and maintenance
of electrical appliances. On April 1, it has entered into an annual maintenance
contract with P for its Air Conditioner and Washing Machine. As per the terms
of contract, maintenance services will be provided on the first day of each
quarter of the relevant financial year and payment for the same will also be
due on the date on which service is rendered. During the year, it provided the
services on April 1, July 1, October 1, and January 1 in accordance with the
terms of contract. When should MBM Caretakers issue the invoice for the
services rendered?
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