Goods and Services Tax (Group I) Model Test Paper - 2 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 2 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Wherever necessary, suitable assumptions may be made by the
candidates, and disclosed by way of notes.
(iii) All questions should be answered on the basis of the provisions of the
CGST Act, 2017 and the IGST Act, 2017 as amended by the
Finance (No. 2) Act, 2024 including significant notifications and circulars
issued and other legislative amendments made, which have become
effective up to 31.10.2024.
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Ecotech Solutions Private Limited is engaged in manufacturing and supply of 
energy products and solutions across multiple States in India. The Company 
manufactures solar panels and also imports certain category of solar panels as per 
the customer orders. The company also provides installation services and annual 
maintenance contracts for its products. 
The Company received an advance payment for a bulk order of goods in March 
2024, but the delivery was completed in May 2024. The amount of advance 
received by the Company was ` 1 crore. 
During the month of March 2024, the Company sold goods worth ` 5 crores and 
provided services amounting to ` 1 crore to its customers across India. The goods 
worth ` 1 crore sold under multiple invoices were returned by a customer due to 
defective quality in the month of March, 2024 which were originally sold by the 
Company in January, 2024. The Company issued a GST credit note against the 
returned goods in March, 2024. 
The Company incurred an amount of ` 5 lakh on the repair of the returned goods 
to make them resalable in the market to customers other than a related party. 
Further, the customers who returned the goods issued an invoice to Gujarat unit of 
the Company of ` 1 lakh for the expense related to return of goods. The goods 
were initially sold from the Gujarat unit of the Company but the same were returned 
to Maharashtra unit of the Company and subsequently moved by the Company 
from Maharashtra unit to Gujarat Unit i.e. the original place of supply. The Company 
is registered under GST in both the States i.e. Gujarat and Maharashtra. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. At what point of time, tax will be payable in relation to the advance received
by the Company of ` 1 crore?
245
Page 2


MODEL TEST PAPER 2 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Wherever necessary, suitable assumptions may be made by the
candidates, and disclosed by way of notes.
(iii) All questions should be answered on the basis of the provisions of the
CGST Act, 2017 and the IGST Act, 2017 as amended by the
Finance (No. 2) Act, 2024 including significant notifications and circulars
issued and other legislative amendments made, which have become
effective up to 31.10.2024.
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Ecotech Solutions Private Limited is engaged in manufacturing and supply of 
energy products and solutions across multiple States in India. The Company 
manufactures solar panels and also imports certain category of solar panels as per 
the customer orders. The company also provides installation services and annual 
maintenance contracts for its products. 
The Company received an advance payment for a bulk order of goods in March 
2024, but the delivery was completed in May 2024. The amount of advance 
received by the Company was ` 1 crore. 
During the month of March 2024, the Company sold goods worth ` 5 crores and 
provided services amounting to ` 1 crore to its customers across India. The goods 
worth ` 1 crore sold under multiple invoices were returned by a customer due to 
defective quality in the month of March, 2024 which were originally sold by the 
Company in January, 2024. The Company issued a GST credit note against the 
returned goods in March, 2024. 
The Company incurred an amount of ` 5 lakh on the repair of the returned goods 
to make them resalable in the market to customers other than a related party. 
Further, the customers who returned the goods issued an invoice to Gujarat unit of 
the Company of ` 1 lakh for the expense related to return of goods. The goods 
were initially sold from the Gujarat unit of the Company but the same were returned 
to Maharashtra unit of the Company and subsequently moved by the Company 
from Maharashtra unit to Gujarat Unit i.e. the original place of supply. The Company 
is registered under GST in both the States i.e. Gujarat and Maharashtra. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. At what point of time, tax will be payable in relation to the advance received
by the Company of ` 1 crore?
245
(a) The tax is payable at the time of receipt of advance. 
(b) The tax is payable at the time of supply of goods. 
(c) 50% of tax is payable at the time of receipt of advance. 
(d) Tax is payable at the time of issuance of receipt voucher. 
2. The total amount of supply during the month of March, 2024 to be reported in 
GSTR -1 by the Company is ________. 
(a) ` 1 crore 
(b) ` 5 crores 
(c) ` 6 crores 
(d) ` 7 crores 
3. Which of the following options is correct in relation to the returned goods of 
value ` 1 crore ? 
(a) Company has an option to issue single credit note against multiple 
invoices. 
(b) Company has to mandatorily issue separate credit note against each 
invoice. 
(c) The Company cannot issue credit note in any subsequent period after 
the supply is made. 
(d) The Company can only issue a commercial credit note and GST 
adjustment cannot be made. 
4. In case returned goods are sold by the Company to customers other than the 
related parties, the value of supply of such goods under GST shall be 
_________. 
(a) equivalent to original value of supply only. 
(b) equivalent to original value of supply plus the cost incurred on making 
the goods reusable 
(c) 110% of original value of supply plus the cost incurred on making the 
goods reusable. 
(d) transaction value subject to the conditions mentioned in Section 15(2) of 
the CGST Act, 2017. 
5. Which of the following option(s) is correct in relation to the invoice of ` 1 lakh 
issued by the customer for the expenses relating to returned goods? 
(a) The Company shall be eligible to avail full input tax credit. 
(b) The Company shall not be allowed to avail input tax credit. 
(c) The Company shall not be allowed to avail input tax credit in excess of 
50% of the tax amount charged on such invoice. 
(d) The Company shall be allowed to claim input tax credit only if it has not 
issued any credit note to the customer against such returned goods. 
246
Page 3


MODEL TEST PAPER 2 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Wherever necessary, suitable assumptions may be made by the
candidates, and disclosed by way of notes.
(iii) All questions should be answered on the basis of the provisions of the
CGST Act, 2017 and the IGST Act, 2017 as amended by the
Finance (No. 2) Act, 2024 including significant notifications and circulars
issued and other legislative amendments made, which have become
effective up to 31.10.2024.
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Ecotech Solutions Private Limited is engaged in manufacturing and supply of 
energy products and solutions across multiple States in India. The Company 
manufactures solar panels and also imports certain category of solar panels as per 
the customer orders. The company also provides installation services and annual 
maintenance contracts for its products. 
The Company received an advance payment for a bulk order of goods in March 
2024, but the delivery was completed in May 2024. The amount of advance 
received by the Company was ` 1 crore. 
During the month of March 2024, the Company sold goods worth ` 5 crores and 
provided services amounting to ` 1 crore to its customers across India. The goods 
worth ` 1 crore sold under multiple invoices were returned by a customer due to 
defective quality in the month of March, 2024 which were originally sold by the 
Company in January, 2024. The Company issued a GST credit note against the 
returned goods in March, 2024. 
The Company incurred an amount of ` 5 lakh on the repair of the returned goods 
to make them resalable in the market to customers other than a related party. 
Further, the customers who returned the goods issued an invoice to Gujarat unit of 
the Company of ` 1 lakh for the expense related to return of goods. The goods 
were initially sold from the Gujarat unit of the Company but the same were returned 
to Maharashtra unit of the Company and subsequently moved by the Company 
from Maharashtra unit to Gujarat Unit i.e. the original place of supply. The Company 
is registered under GST in both the States i.e. Gujarat and Maharashtra. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. At what point of time, tax will be payable in relation to the advance received
by the Company of ` 1 crore?
245
(a) The tax is payable at the time of receipt of advance. 
(b) The tax is payable at the time of supply of goods. 
(c) 50% of tax is payable at the time of receipt of advance. 
(d) Tax is payable at the time of issuance of receipt voucher. 
2. The total amount of supply during the month of March, 2024 to be reported in 
GSTR -1 by the Company is ________. 
(a) ` 1 crore 
(b) ` 5 crores 
(c) ` 6 crores 
(d) ` 7 crores 
3. Which of the following options is correct in relation to the returned goods of 
value ` 1 crore ? 
(a) Company has an option to issue single credit note against multiple 
invoices. 
(b) Company has to mandatorily issue separate credit note against each 
invoice. 
(c) The Company cannot issue credit note in any subsequent period after 
the supply is made. 
(d) The Company can only issue a commercial credit note and GST 
adjustment cannot be made. 
4. In case returned goods are sold by the Company to customers other than the 
related parties, the value of supply of such goods under GST shall be 
_________. 
(a) equivalent to original value of supply only. 
(b) equivalent to original value of supply plus the cost incurred on making 
the goods reusable 
(c) 110% of original value of supply plus the cost incurred on making the 
goods reusable. 
(d) transaction value subject to the conditions mentioned in Section 15(2) of 
the CGST Act, 2017. 
5. Which of the following option(s) is correct in relation to the invoice of ` 1 lakh 
issued by the customer for the expenses relating to returned goods? 
(a) The Company shall be eligible to avail full input tax credit. 
(b) The Company shall not be allowed to avail input tax credit. 
(c) The Company shall not be allowed to avail input tax credit in excess of 
50% of the tax amount charged on such invoice. 
(d) The Company shall be allowed to claim input tax credit only if it has not 
issued any credit note to the customer against such returned goods. 
246
6. While moving the goods from Maharashtra unit to Gujarat unit by the 
Company, goods shall be accompanied by ____________. 
(a) Original invoice issued in January, 2024 
(b) Invoice issued by the returning customer to the Gujarat unit of the 
Company 
(c) Invoice by Maharashtra unit to the Gujarat unit of the Company 
(d) Delivery challan issued by the Customer to the Company. 
(6 x 2 Marks = 12 Marks) 
7. Mr. Jambulal of Himachal Pradesh starts a new business and makes following 
supplies in the first month- 
(i) Intra-State supply of taxable goods amounting to ` 17 lakh 
(ii) Supply of exempted goods amounting to ` 1 lakh  
(iii) Inter-State supply of taxable goods amounting to ` 1 lakh 
Whether he is required to obtain registration? 
(a) Mr. Jambulal is liable to obtain registration as the threshold limit of ` 10 
lakh is crossed.  
(b) Mr. Jambulal is not liable to obtain registration as he makes exempted 
supplies. 
(c) Mr. Jambulal is liable to obtain registration as he makes the inter-State 
supply of goods. 
(d) Mr. Jambulal is not liable to obtain registration as the threshold limit of  
` 20 lakh is not crossed.  (2 Marks) 
8. Simmo Singh, a resident of Punjab, is having a residential property in 
Amritsar, Punjab which has been given on rent to a family for ` 72 lakh per 
annum for residence purposes. Determine whether Simmo Singh is liable to 
pay GST on such rent. 
(a) Yes, as services by way of renting is taxable supply under GST. 
(b) No, service by way of renting of residential property is exempt. 
(c) No, service by way of renting of residential property does not constitute 
supply. 
(d) Simmo Singh, being individual, is not liable to pay GST.  (1 Mark) 
  
247
Page 4


MODEL TEST PAPER 2 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Wherever necessary, suitable assumptions may be made by the
candidates, and disclosed by way of notes.
(iii) All questions should be answered on the basis of the provisions of the
CGST Act, 2017 and the IGST Act, 2017 as amended by the
Finance (No. 2) Act, 2024 including significant notifications and circulars
issued and other legislative amendments made, which have become
effective up to 31.10.2024.
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Ecotech Solutions Private Limited is engaged in manufacturing and supply of 
energy products and solutions across multiple States in India. The Company 
manufactures solar panels and also imports certain category of solar panels as per 
the customer orders. The company also provides installation services and annual 
maintenance contracts for its products. 
The Company received an advance payment for a bulk order of goods in March 
2024, but the delivery was completed in May 2024. The amount of advance 
received by the Company was ` 1 crore. 
During the month of March 2024, the Company sold goods worth ` 5 crores and 
provided services amounting to ` 1 crore to its customers across India. The goods 
worth ` 1 crore sold under multiple invoices were returned by a customer due to 
defective quality in the month of March, 2024 which were originally sold by the 
Company in January, 2024. The Company issued a GST credit note against the 
returned goods in March, 2024. 
The Company incurred an amount of ` 5 lakh on the repair of the returned goods 
to make them resalable in the market to customers other than a related party. 
Further, the customers who returned the goods issued an invoice to Gujarat unit of 
the Company of ` 1 lakh for the expense related to return of goods. The goods 
were initially sold from the Gujarat unit of the Company but the same were returned 
to Maharashtra unit of the Company and subsequently moved by the Company 
from Maharashtra unit to Gujarat Unit i.e. the original place of supply. The Company 
is registered under GST in both the States i.e. Gujarat and Maharashtra. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. At what point of time, tax will be payable in relation to the advance received
by the Company of ` 1 crore?
245
(a) The tax is payable at the time of receipt of advance. 
(b) The tax is payable at the time of supply of goods. 
(c) 50% of tax is payable at the time of receipt of advance. 
(d) Tax is payable at the time of issuance of receipt voucher. 
2. The total amount of supply during the month of March, 2024 to be reported in 
GSTR -1 by the Company is ________. 
(a) ` 1 crore 
(b) ` 5 crores 
(c) ` 6 crores 
(d) ` 7 crores 
3. Which of the following options is correct in relation to the returned goods of 
value ` 1 crore ? 
(a) Company has an option to issue single credit note against multiple 
invoices. 
(b) Company has to mandatorily issue separate credit note against each 
invoice. 
(c) The Company cannot issue credit note in any subsequent period after 
the supply is made. 
(d) The Company can only issue a commercial credit note and GST 
adjustment cannot be made. 
4. In case returned goods are sold by the Company to customers other than the 
related parties, the value of supply of such goods under GST shall be 
_________. 
(a) equivalent to original value of supply only. 
(b) equivalent to original value of supply plus the cost incurred on making 
the goods reusable 
(c) 110% of original value of supply plus the cost incurred on making the 
goods reusable. 
(d) transaction value subject to the conditions mentioned in Section 15(2) of 
the CGST Act, 2017. 
5. Which of the following option(s) is correct in relation to the invoice of ` 1 lakh 
issued by the customer for the expenses relating to returned goods? 
(a) The Company shall be eligible to avail full input tax credit. 
(b) The Company shall not be allowed to avail input tax credit. 
(c) The Company shall not be allowed to avail input tax credit in excess of 
50% of the tax amount charged on such invoice. 
(d) The Company shall be allowed to claim input tax credit only if it has not 
issued any credit note to the customer against such returned goods. 
246
6. While moving the goods from Maharashtra unit to Gujarat unit by the 
Company, goods shall be accompanied by ____________. 
(a) Original invoice issued in January, 2024 
(b) Invoice issued by the returning customer to the Gujarat unit of the 
Company 
(c) Invoice by Maharashtra unit to the Gujarat unit of the Company 
(d) Delivery challan issued by the Customer to the Company. 
(6 x 2 Marks = 12 Marks) 
7. Mr. Jambulal of Himachal Pradesh starts a new business and makes following 
supplies in the first month- 
(i) Intra-State supply of taxable goods amounting to ` 17 lakh 
(ii) Supply of exempted goods amounting to ` 1 lakh  
(iii) Inter-State supply of taxable goods amounting to ` 1 lakh 
Whether he is required to obtain registration? 
(a) Mr. Jambulal is liable to obtain registration as the threshold limit of ` 10 
lakh is crossed.  
(b) Mr. Jambulal is not liable to obtain registration as he makes exempted 
supplies. 
(c) Mr. Jambulal is liable to obtain registration as he makes the inter-State 
supply of goods. 
(d) Mr. Jambulal is not liable to obtain registration as the threshold limit of  
` 20 lakh is not crossed.  (2 Marks) 
8. Simmo Singh, a resident of Punjab, is having a residential property in 
Amritsar, Punjab which has been given on rent to a family for ` 72 lakh per 
annum for residence purposes. Determine whether Simmo Singh is liable to 
pay GST on such rent. 
(a) Yes, as services by way of renting is taxable supply under GST. 
(b) No, service by way of renting of residential property is exempt. 
(c) No, service by way of renting of residential property does not constitute 
supply. 
(d) Simmo Singh, being individual, is not liable to pay GST.  (1 Mark) 
  
247
Division B - Descriptive Questions 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
Total Marks:35 Marks 
1. (a) Mr. Nandan lal, registered under GST, is engaged in supplying services 
(as discussed in the table below) in Hyderabad.  He has furnished the 
following information with respect to the services provided/ received by 
him, during the month of February: 
S. No. Particulars Amount (`) 
(i) Carnatic music performance given by  
Mr. Nandan lal to promote a brand of 
readymade garments  
1,40,000 
(ii) Outdoor catering services availed for a 
marketing event organised for his 
prospective customers  
50,000 
(iii) Services of transportation of students 
provided to HSMG College providing 
education as part of a curriculum for 
obtaining a recognised qualification  
1,00,000 
(iv) Legal services availed for official purpose 
from an advocate located in Chennai (Inter-
State transaction) 
1,75,000 
(v) Services provided to IFMP Bank as a 
business correspondent with respect to 
accounts in a branch of the bank located in 
urban area  
2,00,000 
(vi) Recovery agent’s services provided to a car 
dealer  
15,000 
(vii) General insurance taken on a car (seating 
capacity 5) used for official purposes  
40,000 
Note:  
(i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.   
(ii) All inward and outward supplies are exclusive of taxes, wherever 
applicable. 
(iii) All the conditions necessary for availing the ITC have been fulfilled. 
(iv) The turnover of Mr. Nandan lal was ` 2.5 crore in the previous 
financial year. 
(v) All the transactions mentioned above are intra-State unless 
otherwise specified. 
 Compute the net GST payable in cash, by Mr. Nandan lal for the month 
of February.   (10 Marks) 
248
Page 5


MODEL TEST PAPER 2 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
QUESTIONS 
(i) Working Notes should form part of the answers. However, in answers to
Questions in Division A, working notes are not required.
(ii) Wherever necessary, suitable assumptions may be made by the
candidates, and disclosed by way of notes.
(iii) All questions should be answered on the basis of the provisions of the
CGST Act, 2017 and the IGST Act, 2017 as amended by the
Finance (No. 2) Act, 2024 including significant notifications and circulars
issued and other legislative amendments made, which have become
effective up to 31.10.2024.
Division A - Multiple Choice Questions (MCQs) 
Write the most appropriate answer to each of the following multiple-choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
Total Marks: 15 Marks 
Ecotech Solutions Private Limited is engaged in manufacturing and supply of 
energy products and solutions across multiple States in India. The Company 
manufactures solar panels and also imports certain category of solar panels as per 
the customer orders. The company also provides installation services and annual 
maintenance contracts for its products. 
The Company received an advance payment for a bulk order of goods in March 
2024, but the delivery was completed in May 2024. The amount of advance 
received by the Company was ` 1 crore. 
During the month of March 2024, the Company sold goods worth ` 5 crores and 
provided services amounting to ` 1 crore to its customers across India. The goods 
worth ` 1 crore sold under multiple invoices were returned by a customer due to 
defective quality in the month of March, 2024 which were originally sold by the 
Company in January, 2024. The Company issued a GST credit note against the 
returned goods in March, 2024. 
The Company incurred an amount of ` 5 lakh on the repair of the returned goods 
to make them resalable in the market to customers other than a related party. 
Further, the customers who returned the goods issued an invoice to Gujarat unit of 
the Company of ` 1 lakh for the expense related to return of goods. The goods 
were initially sold from the Gujarat unit of the Company but the same were returned 
to Maharashtra unit of the Company and subsequently moved by the Company 
from Maharashtra unit to Gujarat Unit i.e. the original place of supply. The Company 
is registered under GST in both the States i.e. Gujarat and Maharashtra. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. At what point of time, tax will be payable in relation to the advance received
by the Company of ` 1 crore?
245
(a) The tax is payable at the time of receipt of advance. 
(b) The tax is payable at the time of supply of goods. 
(c) 50% of tax is payable at the time of receipt of advance. 
(d) Tax is payable at the time of issuance of receipt voucher. 
2. The total amount of supply during the month of March, 2024 to be reported in 
GSTR -1 by the Company is ________. 
(a) ` 1 crore 
(b) ` 5 crores 
(c) ` 6 crores 
(d) ` 7 crores 
3. Which of the following options is correct in relation to the returned goods of 
value ` 1 crore ? 
(a) Company has an option to issue single credit note against multiple 
invoices. 
(b) Company has to mandatorily issue separate credit note against each 
invoice. 
(c) The Company cannot issue credit note in any subsequent period after 
the supply is made. 
(d) The Company can only issue a commercial credit note and GST 
adjustment cannot be made. 
4. In case returned goods are sold by the Company to customers other than the 
related parties, the value of supply of such goods under GST shall be 
_________. 
(a) equivalent to original value of supply only. 
(b) equivalent to original value of supply plus the cost incurred on making 
the goods reusable 
(c) 110% of original value of supply plus the cost incurred on making the 
goods reusable. 
(d) transaction value subject to the conditions mentioned in Section 15(2) of 
the CGST Act, 2017. 
5. Which of the following option(s) is correct in relation to the invoice of ` 1 lakh 
issued by the customer for the expenses relating to returned goods? 
(a) The Company shall be eligible to avail full input tax credit. 
(b) The Company shall not be allowed to avail input tax credit. 
(c) The Company shall not be allowed to avail input tax credit in excess of 
50% of the tax amount charged on such invoice. 
(d) The Company shall be allowed to claim input tax credit only if it has not 
issued any credit note to the customer against such returned goods. 
246
6. While moving the goods from Maharashtra unit to Gujarat unit by the 
Company, goods shall be accompanied by ____________. 
(a) Original invoice issued in January, 2024 
(b) Invoice issued by the returning customer to the Gujarat unit of the 
Company 
(c) Invoice by Maharashtra unit to the Gujarat unit of the Company 
(d) Delivery challan issued by the Customer to the Company. 
(6 x 2 Marks = 12 Marks) 
7. Mr. Jambulal of Himachal Pradesh starts a new business and makes following 
supplies in the first month- 
(i) Intra-State supply of taxable goods amounting to ` 17 lakh 
(ii) Supply of exempted goods amounting to ` 1 lakh  
(iii) Inter-State supply of taxable goods amounting to ` 1 lakh 
Whether he is required to obtain registration? 
(a) Mr. Jambulal is liable to obtain registration as the threshold limit of ` 10 
lakh is crossed.  
(b) Mr. Jambulal is not liable to obtain registration as he makes exempted 
supplies. 
(c) Mr. Jambulal is liable to obtain registration as he makes the inter-State 
supply of goods. 
(d) Mr. Jambulal is not liable to obtain registration as the threshold limit of  
` 20 lakh is not crossed.  (2 Marks) 
8. Simmo Singh, a resident of Punjab, is having a residential property in 
Amritsar, Punjab which has been given on rent to a family for ` 72 lakh per 
annum for residence purposes. Determine whether Simmo Singh is liable to 
pay GST on such rent. 
(a) Yes, as services by way of renting is taxable supply under GST. 
(b) No, service by way of renting of residential property is exempt. 
(c) No, service by way of renting of residential property does not constitute 
supply. 
(d) Simmo Singh, being individual, is not liable to pay GST.  (1 Mark) 
  
247
Division B - Descriptive Questions 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
Total Marks:35 Marks 
1. (a) Mr. Nandan lal, registered under GST, is engaged in supplying services 
(as discussed in the table below) in Hyderabad.  He has furnished the 
following information with respect to the services provided/ received by 
him, during the month of February: 
S. No. Particulars Amount (`) 
(i) Carnatic music performance given by  
Mr. Nandan lal to promote a brand of 
readymade garments  
1,40,000 
(ii) Outdoor catering services availed for a 
marketing event organised for his 
prospective customers  
50,000 
(iii) Services of transportation of students 
provided to HSMG College providing 
education as part of a curriculum for 
obtaining a recognised qualification  
1,00,000 
(iv) Legal services availed for official purpose 
from an advocate located in Chennai (Inter-
State transaction) 
1,75,000 
(v) Services provided to IFMP Bank as a 
business correspondent with respect to 
accounts in a branch of the bank located in 
urban area  
2,00,000 
(vi) Recovery agent’s services provided to a car 
dealer  
15,000 
(vii) General insurance taken on a car (seating 
capacity 5) used for official purposes  
40,000 
Note:  
(i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.   
(ii) All inward and outward supplies are exclusive of taxes, wherever 
applicable. 
(iii) All the conditions necessary for availing the ITC have been fulfilled. 
(iv) The turnover of Mr. Nandan lal was ` 2.5 crore in the previous 
financial year. 
(v) All the transactions mentioned above are intra-State unless 
otherwise specified. 
 Compute the net GST payable in cash, by Mr. Nandan lal for the month 
of February.   (10 Marks) 
248
(b) LSP Ltd., a registered supplier, sold a machine to Balwant Ltd. It 
provides the following information in this regard: - 
S. 
No. 
Particulars Amount 
(`) 
(i) Price of the machine [excluding taxes and other 
charges mentioned at S. Nos. (ii) and (iii)] 
20,000 
(ii) Third party inspection charges  
[Such charges were payable by LSP Ltd. but the 
same have been directly paid by Balwant Ltd. to 
the inspection agency. These charges were not 
recorded in the invoice issued by LSP Ltd.] 
6,000 
(iii) Freight charges for delivery of the machine  
[LSP Ltd. has agreed to deliver the goods at 
Balwant Ltd.’s premises] 
1,000 
(iv) Subsidy received from the State Government on 
sale of machine under Skill Development 
Programme  
[Subsidy is directly linked to the price] 
5,000 
(v) Discount of 2% is offered to Balwant Ltd. on the 
price mentioned at S. No. (i) above and recorded in 
the invoice 
 
 Note: Price of the machine is net of the subsidy received.   
 Determine the value of taxable supply made by LSP Ltd. to Balwant Ltd.  
 (5 Marks) 
2. (a)  State the person liable to pay GST in the following independent services 
provided: 
(i) Sapna Builders, registered in Haryana, rented out 20 residential 
units owned by it in Jain Society to Anant Technologies, an IT 
based company registered in the State of Haryana, for 
accommodation of its employees.   
(ii) M/s. Verma Consultants, a partnership firm registered in Delhi as a 
regular tax payer, paid sponsorship fees of ` 1,50,000 at a seminar 
organized by a private NGO (a partnership firm) in Delhi. (4 Marks) 
(b) “Little Smiles”, a photography firm, has commenced providing 
photoshoot services in Delhi from the beginning of current financial year 
2024-25.  It has provided the following details of turnover for the various 
quarters till December, 2024 :- 
S. 
No. 
Quarter Amount  
(` in lakh) 
1 April,2024-June,2024  20 
2 July,2024-September,2024  30 
3 October,2024-December,2024 40 
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