Goods and Services Tax (Group I) Model Test Paper - 7 (Answers) | Model Test Papers for CA Intermediate PDF Download

 Page 1


ANSWERS OF MODEL TEST PAPER 7 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (c) 
i & iii  
2. (c) 
i & iii  
3. (d) 
1st April 
4. (c) ` 60,000 
5. (b) 31
st
 October of the next year 
6. (c) (ii) & (iv) 
7. (c) (ii) and (iii) 
8. (c) Mint Ltd. is required to issue bill of supply in 
the given case. 
 
Division B - Descriptive Questions 
1. (a) Computation of minimum net GST payable in cash by Evershine Pvt. 
Ltd. for the month of September 2024 
Particulars Value of 
supply 
(`) 
CGST @ 
9% (`) 
SGST @ 
9% (`) 
IGST @ 
18% (`) 
Output tax payable     
Intra-State 
supply of goods 
to Vaidehi 
Enterprises  
[Since 
arranging 
freight is the 
liability of 
supplier, it is a 
composite 
supply and 
thus, freight 
charges are 
added to the 
value of 
principal 
supply.] 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates 
18,50,000 1,66,500  1,66,500  Nil 
Inter-State 
supply to Calc. 
Exim  
35,60,000 Nil Nil 6,40,800 
594
Page 2


ANSWERS OF MODEL TEST PAPER 7 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (c) 
i & iii  
2. (c) 
i & iii  
3. (d) 
1st April 
4. (c) ` 60,000 
5. (b) 31
st
 October of the next year 
6. (c) (ii) & (iv) 
7. (c) (ii) and (iii) 
8. (c) Mint Ltd. is required to issue bill of supply in 
the given case. 
 
Division B - Descriptive Questions 
1. (a) Computation of minimum net GST payable in cash by Evershine Pvt. 
Ltd. for the month of September 2024 
Particulars Value of 
supply 
(`) 
CGST @ 
9% (`) 
SGST @ 
9% (`) 
IGST @ 
18% (`) 
Output tax payable     
Intra-State 
supply of goods 
to Vaidehi 
Enterprises  
[Since 
arranging 
freight is the 
liability of 
supplier, it is a 
composite 
supply and 
thus, freight 
charges are 
added to the 
value of 
principal 
supply.] 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates 
18,50,000 1,66,500  1,66,500  Nil 
Inter-State 
supply to Calc. 
Exim  
35,60,000 Nil Nil 6,40,800 
594
[Municipal tax 
is includible in 
value since it is 
a tax levied 
under a law 
other than GST 
law and is 
charged 
separately.] 
Intra-State supply to 
Sunshine Ltd. 
[Place of supply is location of 
recipient. Discount given at 
the time of supply is 
deductible from the value 
since duly recorded in the 
invoice.] 
5,70,000 51,300 51,300 Nil 
Inter-State supply to Raghu 
Enterprise  
[Place of supply in case of 
bill to ship model is principal 
place of business of a third 
person at whose instructions 
the goods are delivered by 
supplier to recipient. Thus, it 
is considered as Inter State 
supply.]  
2,00,000 Nil Nil 36,000 
Total output tax   2,17,800 2,17,800 6,76,800 
Less: ITC available [Refer 
note below] 
[IGST credit to be utilized 
first towards payment of 
IGST.] 
 Nil Nil (4,17,000) 
CGST credit utilized for 
payment of CGST and IGST 
in that order 
 (2,17,800) Nil (12,200) 
SGST credit utilized for 
payment of SGST and IGST 
in that order 
 Nil (2,17,800) (42,200) 
Minimum net GST payable 
in cash 
 Nil Nil 2,05,400 
 Working Note: 
 Computation of ITC available  
Particulars Value 
(`) 
CGST  
(`) 
SGST  
(`) 
IGST  
(`) 
Opening balance  20,000 50,000 75,000 
595
Page 3


ANSWERS OF MODEL TEST PAPER 7 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (c) 
i & iii  
2. (c) 
i & iii  
3. (d) 
1st April 
4. (c) ` 60,000 
5. (b) 31
st
 October of the next year 
6. (c) (ii) & (iv) 
7. (c) (ii) and (iii) 
8. (c) Mint Ltd. is required to issue bill of supply in 
the given case. 
 
Division B - Descriptive Questions 
1. (a) Computation of minimum net GST payable in cash by Evershine Pvt. 
Ltd. for the month of September 2024 
Particulars Value of 
supply 
(`) 
CGST @ 
9% (`) 
SGST @ 
9% (`) 
IGST @ 
18% (`) 
Output tax payable     
Intra-State 
supply of goods 
to Vaidehi 
Enterprises  
[Since 
arranging 
freight is the 
liability of 
supplier, it is a 
composite 
supply and 
thus, freight 
charges are 
added to the 
value of 
principal 
supply.] 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates 
18,50,000 1,66,500  1,66,500  Nil 
Inter-State 
supply to Calc. 
Exim  
35,60,000 Nil Nil 6,40,800 
594
[Municipal tax 
is includible in 
value since it is 
a tax levied 
under a law 
other than GST 
law and is 
charged 
separately.] 
Intra-State supply to 
Sunshine Ltd. 
[Place of supply is location of 
recipient. Discount given at 
the time of supply is 
deductible from the value 
since duly recorded in the 
invoice.] 
5,70,000 51,300 51,300 Nil 
Inter-State supply to Raghu 
Enterprise  
[Place of supply in case of 
bill to ship model is principal 
place of business of a third 
person at whose instructions 
the goods are delivered by 
supplier to recipient. Thus, it 
is considered as Inter State 
supply.]  
2,00,000 Nil Nil 36,000 
Total output tax   2,17,800 2,17,800 6,76,800 
Less: ITC available [Refer 
note below] 
[IGST credit to be utilized 
first towards payment of 
IGST.] 
 Nil Nil (4,17,000) 
CGST credit utilized for 
payment of CGST and IGST 
in that order 
 (2,17,800) Nil (12,200) 
SGST credit utilized for 
payment of SGST and IGST 
in that order 
 Nil (2,17,800) (42,200) 
Minimum net GST payable 
in cash 
 Nil Nil 2,05,400 
 Working Note: 
 Computation of ITC available  
Particulars Value 
(`) 
CGST  
(`) 
SGST  
(`) 
IGST  
(`) 
Opening balance  20,000 50,000 75,000 
595
Inter-State 
purchase of 
raw material  
[ITC is not 
available on 
goods worth  
` 1,00,000 
since not 
received during 
the month.] 
 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates. 
19,00,000 Nil Nil 3,42,000 
[19,00,000 
× 18%] 
Purchase of 
machinery 
[ITC is not 
available since 
depreciation 
has been 
claimed on the 
GST 
component.] 
2,00,000 Nil  Nil  Nil  
Intra-State 
purchase of 
truck  
[ITC on motor 
vehicles used 
for 
transportation 
of goods is 
available.] 
15,00,000 2,10,000 
[15,00,000 
× 14%] 
2,10,000 
[15,00,000 
× 14%] 
Nil 
Purchase of car  
[ITC on motor 
vehicles for 
transportation 
of persons with 
seating 
capacity up to 
13 persons 
(including 
driver), is 
blocked, except 
when used for 
specified 
purposes.] 
10,00,000 Nil  Nil  Nil  
Purchase of 
goods for 
construction of 
an additional 
floor 
[ITC on goods 
used in 
construction of 
immovable 
property (other 
5,00,000  Nil  Nil  Nil  
596
Page 4


ANSWERS OF MODEL TEST PAPER 7 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (c) 
i & iii  
2. (c) 
i & iii  
3. (d) 
1st April 
4. (c) ` 60,000 
5. (b) 31
st
 October of the next year 
6. (c) (ii) & (iv) 
7. (c) (ii) and (iii) 
8. (c) Mint Ltd. is required to issue bill of supply in 
the given case. 
 
Division B - Descriptive Questions 
1. (a) Computation of minimum net GST payable in cash by Evershine Pvt. 
Ltd. for the month of September 2024 
Particulars Value of 
supply 
(`) 
CGST @ 
9% (`) 
SGST @ 
9% (`) 
IGST @ 
18% (`) 
Output tax payable     
Intra-State 
supply of goods 
to Vaidehi 
Enterprises  
[Since 
arranging 
freight is the 
liability of 
supplier, it is a 
composite 
supply and 
thus, freight 
charges are 
added to the 
value of 
principal 
supply.] 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates 
18,50,000 1,66,500  1,66,500  Nil 
Inter-State 
supply to Calc. 
Exim  
35,60,000 Nil Nil 6,40,800 
594
[Municipal tax 
is includible in 
value since it is 
a tax levied 
under a law 
other than GST 
law and is 
charged 
separately.] 
Intra-State supply to 
Sunshine Ltd. 
[Place of supply is location of 
recipient. Discount given at 
the time of supply is 
deductible from the value 
since duly recorded in the 
invoice.] 
5,70,000 51,300 51,300 Nil 
Inter-State supply to Raghu 
Enterprise  
[Place of supply in case of 
bill to ship model is principal 
place of business of a third 
person at whose instructions 
the goods are delivered by 
supplier to recipient. Thus, it 
is considered as Inter State 
supply.]  
2,00,000 Nil Nil 36,000 
Total output tax   2,17,800 2,17,800 6,76,800 
Less: ITC available [Refer 
note below] 
[IGST credit to be utilized 
first towards payment of 
IGST.] 
 Nil Nil (4,17,000) 
CGST credit utilized for 
payment of CGST and IGST 
in that order 
 (2,17,800) Nil (12,200) 
SGST credit utilized for 
payment of SGST and IGST 
in that order 
 Nil (2,17,800) (42,200) 
Minimum net GST payable 
in cash 
 Nil Nil 2,05,400 
 Working Note: 
 Computation of ITC available  
Particulars Value 
(`) 
CGST  
(`) 
SGST  
(`) 
IGST  
(`) 
Opening balance  20,000 50,000 75,000 
595
Inter-State 
purchase of 
raw material  
[ITC is not 
available on 
goods worth  
` 1,00,000 
since not 
received during 
the month.] 
 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates. 
19,00,000 Nil Nil 3,42,000 
[19,00,000 
× 18%] 
Purchase of 
machinery 
[ITC is not 
available since 
depreciation 
has been 
claimed on the 
GST 
component.] 
2,00,000 Nil  Nil  Nil  
Intra-State 
purchase of 
truck  
[ITC on motor 
vehicles used 
for 
transportation 
of goods is 
available.] 
15,00,000 2,10,000 
[15,00,000 
× 14%] 
2,10,000 
[15,00,000 
× 14%] 
Nil 
Purchase of car  
[ITC on motor 
vehicles for 
transportation 
of persons with 
seating 
capacity up to 
13 persons 
(including 
driver), is 
blocked, except 
when used for 
specified 
purposes.] 
10,00,000 Nil  Nil  Nil  
Purchase of 
goods for 
construction of 
an additional 
floor 
[ITC on goods 
used in 
construction of 
immovable 
property (other 
5,00,000  Nil  Nil  Nil  
596
than plant or 
machinery) on 
one’s own 
account is 
blocked if 
capitalized in 
the books.] 
Total   2,30,000 2,60,000 4,17,000 
Note – In above answer, where location of supplier and place of supply are in 
two different States, it is an inter-State supply and where location of supplier 
and place of supply are in same State, it is an intra-State supply. 
(b) Computation of taxable value of supply on which GST is to be 
paid by Mr. Ravindra 
Particulars Amount 
(`) 
Remuneration received as a chief selector of hockey 
team. 
[Taxable since services provided to a recognised sports 
body by an individual only as a player, referee, umpire, 
coach or team manager are exempt.] 
5,00,000 
Service of pure labour contract for construction of 
independent residential unit 
[Services of pure labour contracts of construction of 
original works pertaining to a single residential unit 
otherwise than as a part of a residential complex are 
exempt.] 
NIL 
Rental income from warehousing of sugarcane 
[Warehousing of sugarcane being an agricultural produce is 
exempt.] 
NIL 
Pure Services to Municipal Corporation of Bhopal for slum 
improvement and upgradation 
[Services provided to a Local Authority by way of slum 
improvement and upgradation are exempt.] 
NIL 
Consideration received against western music dance 
performance in an event 
[Taxable, since the amount received for western music 
dance performance but the exemption is available for 
performance in folk or classical art forms of music or dance. 
if the consideration charged for such performance is not 
more than ` 1,50,000.] 
1,25,000 
Value of taxable supply on which GST is to be paid by 
Mr. Ravindra 
6,25,000 
 
597
Page 5


ANSWERS OF MODEL TEST PAPER 7 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (c) 
i & iii  
2. (c) 
i & iii  
3. (d) 
1st April 
4. (c) ` 60,000 
5. (b) 31
st
 October of the next year 
6. (c) (ii) & (iv) 
7. (c) (ii) and (iii) 
8. (c) Mint Ltd. is required to issue bill of supply in 
the given case. 
 
Division B - Descriptive Questions 
1. (a) Computation of minimum net GST payable in cash by Evershine Pvt. 
Ltd. for the month of September 2024 
Particulars Value of 
supply 
(`) 
CGST @ 
9% (`) 
SGST @ 
9% (`) 
IGST @ 
18% (`) 
Output tax payable     
Intra-State 
supply of goods 
to Vaidehi 
Enterprises  
[Since 
arranging 
freight is the 
liability of 
supplier, it is a 
composite 
supply and 
thus, freight 
charges are 
added to the 
value of 
principal 
supply.] 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates 
18,50,000 1,66,500  1,66,500  Nil 
Inter-State 
supply to Calc. 
Exim  
35,60,000 Nil Nil 6,40,800 
594
[Municipal tax 
is includible in 
value since it is 
a tax levied 
under a law 
other than GST 
law and is 
charged 
separately.] 
Intra-State supply to 
Sunshine Ltd. 
[Place of supply is location of 
recipient. Discount given at 
the time of supply is 
deductible from the value 
since duly recorded in the 
invoice.] 
5,70,000 51,300 51,300 Nil 
Inter-State supply to Raghu 
Enterprise  
[Place of supply in case of 
bill to ship model is principal 
place of business of a third 
person at whose instructions 
the goods are delivered by 
supplier to recipient. Thus, it 
is considered as Inter State 
supply.]  
2,00,000 Nil Nil 36,000 
Total output tax   2,17,800 2,17,800 6,76,800 
Less: ITC available [Refer 
note below] 
[IGST credit to be utilized 
first towards payment of 
IGST.] 
 Nil Nil (4,17,000) 
CGST credit utilized for 
payment of CGST and IGST 
in that order 
 (2,17,800) Nil (12,200) 
SGST credit utilized for 
payment of SGST and IGST 
in that order 
 Nil (2,17,800) (42,200) 
Minimum net GST payable 
in cash 
 Nil Nil 2,05,400 
 Working Note: 
 Computation of ITC available  
Particulars Value 
(`) 
CGST  
(`) 
SGST  
(`) 
IGST  
(`) 
Opening balance  20,000 50,000 75,000 
595
Inter-State 
purchase of 
raw material  
[ITC is not 
available on 
goods worth  
` 1,00,000 
since not 
received during 
the month.] 
 
Place of 
supply is 
location 
where 
movement 
of goods 
terminates. 
19,00,000 Nil Nil 3,42,000 
[19,00,000 
× 18%] 
Purchase of 
machinery 
[ITC is not 
available since 
depreciation 
has been 
claimed on the 
GST 
component.] 
2,00,000 Nil  Nil  Nil  
Intra-State 
purchase of 
truck  
[ITC on motor 
vehicles used 
for 
transportation 
of goods is 
available.] 
15,00,000 2,10,000 
[15,00,000 
× 14%] 
2,10,000 
[15,00,000 
× 14%] 
Nil 
Purchase of car  
[ITC on motor 
vehicles for 
transportation 
of persons with 
seating 
capacity up to 
13 persons 
(including 
driver), is 
blocked, except 
when used for 
specified 
purposes.] 
10,00,000 Nil  Nil  Nil  
Purchase of 
goods for 
construction of 
an additional 
floor 
[ITC on goods 
used in 
construction of 
immovable 
property (other 
5,00,000  Nil  Nil  Nil  
596
than plant or 
machinery) on 
one’s own 
account is 
blocked if 
capitalized in 
the books.] 
Total   2,30,000 2,60,000 4,17,000 
Note – In above answer, where location of supplier and place of supply are in 
two different States, it is an inter-State supply and where location of supplier 
and place of supply are in same State, it is an intra-State supply. 
(b) Computation of taxable value of supply on which GST is to be 
paid by Mr. Ravindra 
Particulars Amount 
(`) 
Remuneration received as a chief selector of hockey 
team. 
[Taxable since services provided to a recognised sports 
body by an individual only as a player, referee, umpire, 
coach or team manager are exempt.] 
5,00,000 
Service of pure labour contract for construction of 
independent residential unit 
[Services of pure labour contracts of construction of 
original works pertaining to a single residential unit 
otherwise than as a part of a residential complex are 
exempt.] 
NIL 
Rental income from warehousing of sugarcane 
[Warehousing of sugarcane being an agricultural produce is 
exempt.] 
NIL 
Pure Services to Municipal Corporation of Bhopal for slum 
improvement and upgradation 
[Services provided to a Local Authority by way of slum 
improvement and upgradation are exempt.] 
NIL 
Consideration received against western music dance 
performance in an event 
[Taxable, since the amount received for western music 
dance performance but the exemption is available for 
performance in folk or classical art forms of music or dance. 
if the consideration charged for such performance is not 
more than ` 1,50,000.] 
1,25,000 
Value of taxable supply on which GST is to be paid by 
Mr. Ravindra 
6,25,000 
 
597
2. (a) Computation of minimum net GST to be paid in cash by Vishnu 
Limited for the month of February 2024  
Particulars CGST (`) SGST (`) 
Output tax liability for the month 31,000 31,000 
Less: Input tax credit (ITC) [Refer 
note below]  
IGST credit is utilized first for 
payment of CGST and SGST 
liability in equal proportion. CGST 
credit is utilized for payment of 
CGST liability and SGST credit is 
utilized for payment of SGST 
liability.  
5,400 (IGST) 5,400 (IGST) 
25,600 (CGST)  25,600 (SGST) 
Net GST payable (in cash) Nil Nil 
 Note: Person taking voluntary registration can avail ITC on inputs 
contained in semi-finished or finished goods held in stock on the day 
immediately preceding the date of grant of  registration, i.e. on 
23.02.2024, only within 1 year from date of issue of tax invoice by 
supplier. 
Computation of eligible ITC available 
Particulars CGST  
(`) 
SGST 
(`) 
IGST 
(`) 
Capital goods  
[Person taking voluntary registration 
cannot avail ITC on capital goods held 
on the day immediately preceding the 
date of grant of registration.] 
Nil  Nil  Nil  
Inputs procured on 13
th
 February 2023 Nil  Nil  Nil  
Inputs procured on 10
th
 October 2023  15,000 15,000 Nil 
Inputs procured on 1
st
 February 2024 11,250 11,250 Nil 
Inputs procured on 8
th 
February 2024         Nil        Nil 10,800 
Total ITC 26,250 26,250 10,800 
 Note: In the above answer, minimum net GST to be paid in cash has been 
computed by setting off the IGST liability in equal proportion so as to 
minimize the amount of CGST and SGST payable in cash.  Resultantly, Net 
GST payable (in cash) is Nil each under CGST and SGST. 
 However, since IGST credit can be set off against CGST and SGST liability 
in any order and in any proportion, the same can be set off against CGST 
and/or SGST liabilities in other possible ways as well.   
 (b) (1) The place of supply of services by way of transportation of goods by 
courier provided to an unregistered person is the location at which 
such goods are handed over for their transportation.  
598