Goods and Services Tax (Group I) Model Test Paper - 3 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 3 
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 
Himadri started providing a bouquet of goods and services in the month of April of 
the current financial year under the regular scheme in the State of Telangana and 
obtained voluntary registration under GST before starting the business.  
In the month of April, she availed the services of construction of a godown for the 
business from her brother-in-law who was financially dependent on him. She also 
availed professional consultancy services in April for her business from her son 
who is a well settled Chartered Accountant in Telangana. Himadri did not pay any 
consideration for both these services as both of them were her relative/ family 
member respectively.  
In April, she supplied 1,000 packages to Natraj Traders each consisting of a pen 
holder, a pen and a pencil box at a single price of ` 150.  Rates of GST for pen 
holder, pen and pencil box are 5%, 12% and 18% respectively. 
She received following payments during the month of May: 
-  earned ` 1,60,000 by providing services as business facilitator to YYZ Bank 
with respect to accounts in its urban area branch 
-  earned ` 50,000 by providing services by way of renting of residential dwelling 
for use as a boutique to Supriya, an unregistered person.  
-  received ` 70,000 for supply of manpower for cleanliness of roads, public 
places, architect services, etc., not involving any supply of goods, to 
Municipality. 
Himadri made supply of taxable Product A during June, details of which are as 
follows- 
-  Basic price of Product A before TCS under Income-tax Act, 1961– ` 45,000 
251
Page 2


MODEL TEST PAPER 3 
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 
Himadri started providing a bouquet of goods and services in the month of April of 
the current financial year under the regular scheme in the State of Telangana and 
obtained voluntary registration under GST before starting the business.  
In the month of April, she availed the services of construction of a godown for the 
business from her brother-in-law who was financially dependent on him. She also 
availed professional consultancy services in April for her business from her son 
who is a well settled Chartered Accountant in Telangana. Himadri did not pay any 
consideration for both these services as both of them were her relative/ family 
member respectively.  
In April, she supplied 1,000 packages to Natraj Traders each consisting of a pen 
holder, a pen and a pencil box at a single price of ` 150.  Rates of GST for pen 
holder, pen and pencil box are 5%, 12% and 18% respectively. 
She received following payments during the month of May: 
-  earned ` 1,60,000 by providing services as business facilitator to YYZ Bank 
with respect to accounts in its urban area branch 
-  earned ` 50,000 by providing services by way of renting of residential dwelling 
for use as a boutique to Supriya, an unregistered person.  
-  received ` 70,000 for supply of manpower for cleanliness of roads, public 
places, architect services, etc., not involving any supply of goods, to 
Municipality. 
Himadri made supply of taxable Product A during June, details of which are as 
follows- 
-  Basic price of Product A before TCS under Income-tax Act, 1961– ` 45,000 
251
-  Tax collected at source under Income-tax Act, 1961 – ` 2,500 
-  She received a subsidy of ` 55,000 from Habitat Foundation Pvt. Ltd. for 
usage of green energy and the subsidy was linked to the units of green energy 
and not the aforesaid product. 
Himadri provides the following information regarding receipt of inward supplies 
during July- 
-  purchased buses (seating capacity of 24 persons) for transportation of her 
employees from their residence to office and back. Depreciation is claimed on 
the GST component under the Income tax Act, 1961. 
-  purchased a truck having GST component of ` 1,50,000 for transportation of 
finished goods. No depreciation claimed on the GST component under the 
Income tax Act, 1961. 
-  availed outdoor catering services for a marketing event organised for her 
prospective customers. 
All the amounts given above are exclusive of taxes, wherever applicable. Further, 
all the supplies referred above are intra-State supplies unless specified otherwise. 
Conditions necessary for claiming input tax credit (ITC) have been fulfilled subject 
to the information given above.  The opening balance of input tax credit for the 
relevant tax period of Himadri is Nil.   
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below:- 
1. Supply of package made by Himadri to Natraj Traders is a ______________ 
and is taxable under GST @ __________. 
(a) composite supply; 12% 
(b) mixed supply; 18% 
(c) composite supply; 18%  
(d) mixed supply; 12% 
2. Out of payments received by Himadri in month of May, value of exempt supply 
is _____ . 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000   
3. Compute the value of supply under section 15 of the CGST Act, 2017 made 
by Himadri in the month of June.  
(a) ` 45,000  
(b) ` 47,500 
(c) ` 48,500 
252
Page 3


MODEL TEST PAPER 3 
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 
Himadri started providing a bouquet of goods and services in the month of April of 
the current financial year under the regular scheme in the State of Telangana and 
obtained voluntary registration under GST before starting the business.  
In the month of April, she availed the services of construction of a godown for the 
business from her brother-in-law who was financially dependent on him. She also 
availed professional consultancy services in April for her business from her son 
who is a well settled Chartered Accountant in Telangana. Himadri did not pay any 
consideration for both these services as both of them were her relative/ family 
member respectively.  
In April, she supplied 1,000 packages to Natraj Traders each consisting of a pen 
holder, a pen and a pencil box at a single price of ` 150.  Rates of GST for pen 
holder, pen and pencil box are 5%, 12% and 18% respectively. 
She received following payments during the month of May: 
-  earned ` 1,60,000 by providing services as business facilitator to YYZ Bank 
with respect to accounts in its urban area branch 
-  earned ` 50,000 by providing services by way of renting of residential dwelling 
for use as a boutique to Supriya, an unregistered person.  
-  received ` 70,000 for supply of manpower for cleanliness of roads, public 
places, architect services, etc., not involving any supply of goods, to 
Municipality. 
Himadri made supply of taxable Product A during June, details of which are as 
follows- 
-  Basic price of Product A before TCS under Income-tax Act, 1961– ` 45,000 
251
-  Tax collected at source under Income-tax Act, 1961 – ` 2,500 
-  She received a subsidy of ` 55,000 from Habitat Foundation Pvt. Ltd. for 
usage of green energy and the subsidy was linked to the units of green energy 
and not the aforesaid product. 
Himadri provides the following information regarding receipt of inward supplies 
during July- 
-  purchased buses (seating capacity of 24 persons) for transportation of her 
employees from their residence to office and back. Depreciation is claimed on 
the GST component under the Income tax Act, 1961. 
-  purchased a truck having GST component of ` 1,50,000 for transportation of 
finished goods. No depreciation claimed on the GST component under the 
Income tax Act, 1961. 
-  availed outdoor catering services for a marketing event organised for her 
prospective customers. 
All the amounts given above are exclusive of taxes, wherever applicable. Further, 
all the supplies referred above are intra-State supplies unless specified otherwise. 
Conditions necessary for claiming input tax credit (ITC) have been fulfilled subject 
to the information given above.  The opening balance of input tax credit for the 
relevant tax period of Himadri is Nil.   
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below:- 
1. Supply of package made by Himadri to Natraj Traders is a ______________ 
and is taxable under GST @ __________. 
(a) composite supply; 12% 
(b) mixed supply; 18% 
(c) composite supply; 18%  
(d) mixed supply; 12% 
2. Out of payments received by Himadri in month of May, value of exempt supply 
is _____ . 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000   
3. Compute the value of supply under section 15 of the CGST Act, 2017 made 
by Himadri in the month of June.  
(a) ` 45,000  
(b) ` 47,500 
(c) ` 48,500 
252
(d) ` 51,000 
4. Compute the amount of input tax credit that can be claimed by Himadri in July. 
(a) ` 30,000 
(b) ` 37,000 
(c) ` 1,50,000 
(d) ` 1,57,000 
5. In respect of services availed by Himadri in April, which of the following is a 
correct statement? 
(a) Godown construction service availed from her brother-in-law free of cost 
is considered as a deemed supply. 
(b) Professional service availed from her son free of cost is considered as a 
deemed supply. 
(c) Neither of the two services availed by her is a deemed supply.   
(d) Both services availed by her are deemed supply. 
6. Out of payments received by Himadri in month of May, the value of supply on 
which tax payable by the recipient under reverse charge is _________. 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000  (6 x 2 Marks = 12 Marks) 
7. Suvidha Enterprises issued invoices pertaining to two independent outward 
supplies, where in one invoice value of supply was understated by ` 75,000 
and in another invoice, value was overstated by ` 45,000.  Which of the 
following is correct in respect of document to be issued by the firm for 
understatement and overstatement of invoice value? 
(i) Debit note is to be issued for ` 75,000.  
(ii) Credit note is to be issued for ` 75,000. 
(iii) Debit note is to be issued for ` 45,000. 
(iv) Credit note is to be issued for ` 45,000. 
(a) (i) & (iii) 
(b) (ii) & (iii) 
(c) (i) & (iv) 
(d) (ii) & (iv) (2 Marks) 
 
 
253
Page 4


MODEL TEST PAPER 3 
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 
Himadri started providing a bouquet of goods and services in the month of April of 
the current financial year under the regular scheme in the State of Telangana and 
obtained voluntary registration under GST before starting the business.  
In the month of April, she availed the services of construction of a godown for the 
business from her brother-in-law who was financially dependent on him. She also 
availed professional consultancy services in April for her business from her son 
who is a well settled Chartered Accountant in Telangana. Himadri did not pay any 
consideration for both these services as both of them were her relative/ family 
member respectively.  
In April, she supplied 1,000 packages to Natraj Traders each consisting of a pen 
holder, a pen and a pencil box at a single price of ` 150.  Rates of GST for pen 
holder, pen and pencil box are 5%, 12% and 18% respectively. 
She received following payments during the month of May: 
-  earned ` 1,60,000 by providing services as business facilitator to YYZ Bank 
with respect to accounts in its urban area branch 
-  earned ` 50,000 by providing services by way of renting of residential dwelling 
for use as a boutique to Supriya, an unregistered person.  
-  received ` 70,000 for supply of manpower for cleanliness of roads, public 
places, architect services, etc., not involving any supply of goods, to 
Municipality. 
Himadri made supply of taxable Product A during June, details of which are as 
follows- 
-  Basic price of Product A before TCS under Income-tax Act, 1961– ` 45,000 
251
-  Tax collected at source under Income-tax Act, 1961 – ` 2,500 
-  She received a subsidy of ` 55,000 from Habitat Foundation Pvt. Ltd. for 
usage of green energy and the subsidy was linked to the units of green energy 
and not the aforesaid product. 
Himadri provides the following information regarding receipt of inward supplies 
during July- 
-  purchased buses (seating capacity of 24 persons) for transportation of her 
employees from their residence to office and back. Depreciation is claimed on 
the GST component under the Income tax Act, 1961. 
-  purchased a truck having GST component of ` 1,50,000 for transportation of 
finished goods. No depreciation claimed on the GST component under the 
Income tax Act, 1961. 
-  availed outdoor catering services for a marketing event organised for her 
prospective customers. 
All the amounts given above are exclusive of taxes, wherever applicable. Further, 
all the supplies referred above are intra-State supplies unless specified otherwise. 
Conditions necessary for claiming input tax credit (ITC) have been fulfilled subject 
to the information given above.  The opening balance of input tax credit for the 
relevant tax period of Himadri is Nil.   
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below:- 
1. Supply of package made by Himadri to Natraj Traders is a ______________ 
and is taxable under GST @ __________. 
(a) composite supply; 12% 
(b) mixed supply; 18% 
(c) composite supply; 18%  
(d) mixed supply; 12% 
2. Out of payments received by Himadri in month of May, value of exempt supply 
is _____ . 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000   
3. Compute the value of supply under section 15 of the CGST Act, 2017 made 
by Himadri in the month of June.  
(a) ` 45,000  
(b) ` 47,500 
(c) ` 48,500 
252
(d) ` 51,000 
4. Compute the amount of input tax credit that can be claimed by Himadri in July. 
(a) ` 30,000 
(b) ` 37,000 
(c) ` 1,50,000 
(d) ` 1,57,000 
5. In respect of services availed by Himadri in April, which of the following is a 
correct statement? 
(a) Godown construction service availed from her brother-in-law free of cost 
is considered as a deemed supply. 
(b) Professional service availed from her son free of cost is considered as a 
deemed supply. 
(c) Neither of the two services availed by her is a deemed supply.   
(d) Both services availed by her are deemed supply. 
6. Out of payments received by Himadri in month of May, the value of supply on 
which tax payable by the recipient under reverse charge is _________. 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000  (6 x 2 Marks = 12 Marks) 
7. Suvidha Enterprises issued invoices pertaining to two independent outward 
supplies, where in one invoice value of supply was understated by ` 75,000 
and in another invoice, value was overstated by ` 45,000.  Which of the 
following is correct in respect of document to be issued by the firm for 
understatement and overstatement of invoice value? 
(i) Debit note is to be issued for ` 75,000.  
(ii) Credit note is to be issued for ` 75,000. 
(iii) Debit note is to be issued for ` 45,000. 
(iv) Credit note is to be issued for ` 45,000. 
(a) (i) & (iii) 
(b) (ii) & (iii) 
(c) (i) & (iv) 
(d) (ii) & (iv) (2 Marks) 
 
 
253
8. Riya & Co., a partnership firm, is engaged in retail trade since 1st April. The 
firm became liable for registration on 1st October. However, it applied for 
registration on 10th October and was granted certificate of registration on 5th 
November. 
Determine the effective date of registration of Riya & Co.?   
(a) 1
st
 April  
(b) 1
st
 October  
(c) 10
th
 October 
(d) 5
th
 November (1 Mark) 
PART II - Descriptive Questions (35 Marks) 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
1. (a) M/s. ABC & Co., a chartered accountancy firm, has its office in 
Bengaluru.  It is registered under GST in the State of Karnataka.  In the 
month of April, it supplied statutory audit services to Dhruv 
Manufacturers of Karnataka for ` 1,20,000.  Further, it charged  
` 1,60,000 for the ITR filing services provided to the recipients located 
within Karnataka in said month.  It also received ` 1,80,000 for internal 
audit services provided to a client registered in Mumbai, Maharashtra. 
All the amounts are exclusive of GST. 
  M/s. ABC & Co. has also provided following information regarding the 
expenses incurred in the month of April for the purpose of providing the 
taxable services:  
Sr. 
No. 
Particulars CGST 
(`) 
SGST 
(`) 
1.  Membership fee of a club (located in 
Bengaluru) paid for a senior partner of the 
firm  
2,000 2,000 
2.  Rent paid to landlord, who is registered in 
State of Karnataka, for office located in 
Karnataka (Refer Note below) 
3,850 3,850 
3.  Professional fee paid to  
Mr. Jamnaprasad, a practicing Chartered 
Accountant, for professional services 
availed  
[TDS of ` 20,000 is deducted under 
section 194J of the Income-tax Act, 1961] 
18,000 18,000 
4.  Air conditioner purchased for office 
purpose 
3,000 3,000 
 Note - Landlord did not upload his GSTR-1 within the prescribed time 
resulting in the GST amount not being reflected in GSTR-2B of M/s. ABC 
& Co.  
254
Page 5


MODEL TEST PAPER 3 
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 
Himadri started providing a bouquet of goods and services in the month of April of 
the current financial year under the regular scheme in the State of Telangana and 
obtained voluntary registration under GST before starting the business.  
In the month of April, she availed the services of construction of a godown for the 
business from her brother-in-law who was financially dependent on him. She also 
availed professional consultancy services in April for her business from her son 
who is a well settled Chartered Accountant in Telangana. Himadri did not pay any 
consideration for both these services as both of them were her relative/ family 
member respectively.  
In April, she supplied 1,000 packages to Natraj Traders each consisting of a pen 
holder, a pen and a pencil box at a single price of ` 150.  Rates of GST for pen 
holder, pen and pencil box are 5%, 12% and 18% respectively. 
She received following payments during the month of May: 
-  earned ` 1,60,000 by providing services as business facilitator to YYZ Bank 
with respect to accounts in its urban area branch 
-  earned ` 50,000 by providing services by way of renting of residential dwelling 
for use as a boutique to Supriya, an unregistered person.  
-  received ` 70,000 for supply of manpower for cleanliness of roads, public 
places, architect services, etc., not involving any supply of goods, to 
Municipality. 
Himadri made supply of taxable Product A during June, details of which are as 
follows- 
-  Basic price of Product A before TCS under Income-tax Act, 1961– ` 45,000 
251
-  Tax collected at source under Income-tax Act, 1961 – ` 2,500 
-  She received a subsidy of ` 55,000 from Habitat Foundation Pvt. Ltd. for 
usage of green energy and the subsidy was linked to the units of green energy 
and not the aforesaid product. 
Himadri provides the following information regarding receipt of inward supplies 
during July- 
-  purchased buses (seating capacity of 24 persons) for transportation of her 
employees from their residence to office and back. Depreciation is claimed on 
the GST component under the Income tax Act, 1961. 
-  purchased a truck having GST component of ` 1,50,000 for transportation of 
finished goods. No depreciation claimed on the GST component under the 
Income tax Act, 1961. 
-  availed outdoor catering services for a marketing event organised for her 
prospective customers. 
All the amounts given above are exclusive of taxes, wherever applicable. Further, 
all the supplies referred above are intra-State supplies unless specified otherwise. 
Conditions necessary for claiming input tax credit (ITC) have been fulfilled subject 
to the information given above.  The opening balance of input tax credit for the 
relevant tax period of Himadri is Nil.   
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below:- 
1. Supply of package made by Himadri to Natraj Traders is a ______________ 
and is taxable under GST @ __________. 
(a) composite supply; 12% 
(b) mixed supply; 18% 
(c) composite supply; 18%  
(d) mixed supply; 12% 
2. Out of payments received by Himadri in month of May, value of exempt supply 
is _____ . 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000   
3. Compute the value of supply under section 15 of the CGST Act, 2017 made 
by Himadri in the month of June.  
(a) ` 45,000  
(b) ` 47,500 
(c) ` 48,500 
252
(d) ` 51,000 
4. Compute the amount of input tax credit that can be claimed by Himadri in July. 
(a) ` 30,000 
(b) ` 37,000 
(c) ` 1,50,000 
(d) ` 1,57,000 
5. In respect of services availed by Himadri in April, which of the following is a 
correct statement? 
(a) Godown construction service availed from her brother-in-law free of cost 
is considered as a deemed supply. 
(b) Professional service availed from her son free of cost is considered as a 
deemed supply. 
(c) Neither of the two services availed by her is a deemed supply.   
(d) Both services availed by her are deemed supply. 
6. Out of payments received by Himadri in month of May, the value of supply on 
which tax payable by the recipient under reverse charge is _________. 
(a) ` 50,000  
(b) ` 70,000 
(c) ` 1,20,000 
(d) ` 1,60,000  (6 x 2 Marks = 12 Marks) 
7. Suvidha Enterprises issued invoices pertaining to two independent outward 
supplies, where in one invoice value of supply was understated by ` 75,000 
and in another invoice, value was overstated by ` 45,000.  Which of the 
following is correct in respect of document to be issued by the firm for 
understatement and overstatement of invoice value? 
(i) Debit note is to be issued for ` 75,000.  
(ii) Credit note is to be issued for ` 75,000. 
(iii) Debit note is to be issued for ` 45,000. 
(iv) Credit note is to be issued for ` 45,000. 
(a) (i) & (iii) 
(b) (ii) & (iii) 
(c) (i) & (iv) 
(d) (ii) & (iv) (2 Marks) 
 
 
253
8. Riya & Co., a partnership firm, is engaged in retail trade since 1st April. The 
firm became liable for registration on 1st October. However, it applied for 
registration on 10th October and was granted certificate of registration on 5th 
November. 
Determine the effective date of registration of Riya & Co.?   
(a) 1
st
 April  
(b) 1
st
 October  
(c) 10
th
 October 
(d) 5
th
 November (1 Mark) 
PART II - Descriptive Questions (35 Marks) 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
1. (a) M/s. ABC & Co., a chartered accountancy firm, has its office in 
Bengaluru.  It is registered under GST in the State of Karnataka.  In the 
month of April, it supplied statutory audit services to Dhruv 
Manufacturers of Karnataka for ` 1,20,000.  Further, it charged  
` 1,60,000 for the ITR filing services provided to the recipients located 
within Karnataka in said month.  It also received ` 1,80,000 for internal 
audit services provided to a client registered in Mumbai, Maharashtra. 
All the amounts are exclusive of GST. 
  M/s. ABC & Co. has also provided following information regarding the 
expenses incurred in the month of April for the purpose of providing the 
taxable services:  
Sr. 
No. 
Particulars CGST 
(`) 
SGST 
(`) 
1.  Membership fee of a club (located in 
Bengaluru) paid for a senior partner of the 
firm  
2,000 2,000 
2.  Rent paid to landlord, who is registered in 
State of Karnataka, for office located in 
Karnataka (Refer Note below) 
3,850 3,850 
3.  Professional fee paid to  
Mr. Jamnaprasad, a practicing Chartered 
Accountant, for professional services 
availed  
[TDS of ` 20,000 is deducted under 
section 194J of the Income-tax Act, 1961] 
18,000 18,000 
4.  Air conditioner purchased for office 
purpose 
3,000 3,000 
 Note - Landlord did not upload his GSTR-1 within the prescribed time 
resulting in the GST amount not being reflected in GSTR-2B of M/s. ABC 
& Co.  
254
Other suppliers have duly uploaded their GSTR-1 within the prescribed 
time and GST amount is reflected in GSTR-2B of M/s. ABC & Co.  
 Compute the net GST payable in cash by M/s. ABC & Co. for the month 
of April.  
 Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively 
assuming that all the remaining conditions of utilisation of ITC are 
fulfilled.  (10 Marks) 
(b) Guru Enterprises (Delhi), a registered taxpayer, made a taxable supply 
to Y Ltd. (Delhi) for a price of ` 10,00,000 (excluding any tax or 
discounts).  It received a price linked subsidy of ` 1,10,000 from Jiva 
Enterprises Pvt Ltd. The price of ` 10,00,000 is after consideration of 
such subsidy amount.  Further, after delivery of the goods to Y Ltd., Guru 
Enterprises arranged post-delivery inspection of goods and charged  
` 10,000 for the same.  
 In respect of above supply, Guru Enterprises had procured some raw 
material from X Ltd., for which it owed ` 25,000.  The said amount was 
directly paid by Y Ltd. to X Ltd. and was not included in the price of goods 
of ` 10,00,000 mentioned above. 
 The payment of consideration for above supply was delayed by Y Ltd. 
Hence, an interest amount of ` 20,000 (in lumpsum) was also charged 
by Guru Enterprises. 
 The applicable tax rates are - CGST - 6%, SGST - 6% and IGST - 12%.  
You are required to determine value of taxable supply as well as the 
applicable tax liability for the above supply transaction.  (5 Marks) 
2. (a) Keshav Ltd., a registered company of Chennai, Tamil Nadu has provided 
following education related services for the month of October: 
Particulars Amount (`) 
Services of transportation of students, faculty and staff 
from home to college and back to Galgotian College, (a 
private college) providing degree courses in BBA, MBA, 
B.Com., M.Com. 
2,50,000 
Online monthly magazine containing articles and 
updates in law to students of Pariksha Law College 
offering degree courses in LLB and LLM 
1,00,000 
Housekeeping services to Career Coaching Institute  50,000 
Security services to Happy Higher Secondary School for 
security in school premises 
3,25,000 
Services of providing breakfast, lunch and dinner to 
students of Ayushmann Medical College offering degree 
courses recognized by law in medical field 
5,80,000 
 All the above amounts are exclusive of GST. 
 Compute the value of taxable supplies of Keshav Ltd. for the month of 
October with necessary explanations. (6 Marks) 
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