Goods and Services Tax (Group I) Model Test Paper - 8 (Answers) - CA Intermediate PDF Download

 Page 1


ANSWERS OF MODEL TEST PAPER 8 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
SUGGESTED ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (A) 5,000 
2. (B) ` 1,00,000 
3. (B) 24-09-2024 
4. (A) 04.07.2024 
5. (C) 50,400 
6. (D) 31.01.2025 
7. (B) ` 5,10,000 
8. (C) ` 9,999 per day 
 
Division B - Descriptive Questions 
1. (a) (i) Computation of output tax liability of DEF Pvt. Ltd. for January, 
2025 
Particulars Value  
 
(`) 
CGST 
@ 9% 
(`) 
SGST 
@ 9% 
(`) 
IGST  
@ 18% 
(`) 
Output tax 
payable 
    
Intra-State supply 
of taxable goods  
5,00,000 45,000 45,000  
Service of booking 
of flight tickets 
[Taxable since 
service of booking 
of air tickets is 
being provided 
here. Only the 
service of 
transportation of 
passengers in 
economy class 
embarking from 
Bagdogra is 
exempt.   
Further, the place 
of supply of 
20,000   3,600 
 
601
Page 2


ANSWERS OF MODEL TEST PAPER 8 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
SUGGESTED ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (A) 5,000 
2. (B) ` 1,00,000 
3. (B) 24-09-2024 
4. (A) 04.07.2024 
5. (C) 50,400 
6. (D) 31.01.2025 
7. (B) ` 5,10,000 
8. (C) ` 9,999 per day 
 
Division B - Descriptive Questions 
1. (a) (i) Computation of output tax liability of DEF Pvt. Ltd. for January, 
2025 
Particulars Value  
 
(`) 
CGST 
@ 9% 
(`) 
SGST 
@ 9% 
(`) 
IGST  
@ 18% 
(`) 
Output tax 
payable 
    
Intra-State supply 
of taxable goods  
5,00,000 45,000 45,000  
Service of booking 
of flight tickets 
[Taxable since 
service of booking 
of air tickets is 
being provided 
here. Only the 
service of 
transportation of 
passengers in 
economy class 
embarking from 
Bagdogra is 
exempt.   
Further, the place 
of supply of 
20,000   3,600 
 
601
services made to a 
registered person is 
the location of such 
person, viz. Delhi in 
given case.  Thus, 
same is inter-State 
supply.]  
Selling of Pune unit 
as going concern to 
H Ltd.  
[Services by way of 
transfer of a going 
concern is exempt.] 
10,00,000 - - - 
Service in relation 
to business 
exhibition in Dubai 
[Services by an 
organiser to any 
person in respect of 
a business 
exhibition held 
outside India is 
exempt.] 
5,00,000 - - -- 
Inter-State supply 
of service 
10,00,000 - - 1,80,000 
Total output tax 
liability 
 45,000 45,000 1,83,600 
(ii) Computation of input tax credit available to DEF Pvt. Ltd. for 
January, 2025 
Particulars Value 
 
(`) 
CGST 
@ 9% 
(`) 
SGST @ 
9% 
(`) 
IGST @ 
18% 
(`) 
Opening balance  25,000 25,000 30,000 
Issue of debit note 
for post delivery 
service [ITC on debit 
notes issued in a 
financial year can be 
availed any time till  
30
th
 November of the 
succeeding financial 
year or the date of 
filing of the relevant 
annual return, 
whichever is earlier, 
irrespective of the 
25,000   4,500 
602
Page 3


ANSWERS OF MODEL TEST PAPER 8 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
SUGGESTED ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (A) 5,000 
2. (B) ` 1,00,000 
3. (B) 24-09-2024 
4. (A) 04.07.2024 
5. (C) 50,400 
6. (D) 31.01.2025 
7. (B) ` 5,10,000 
8. (C) ` 9,999 per day 
 
Division B - Descriptive Questions 
1. (a) (i) Computation of output tax liability of DEF Pvt. Ltd. for January, 
2025 
Particulars Value  
 
(`) 
CGST 
@ 9% 
(`) 
SGST 
@ 9% 
(`) 
IGST  
@ 18% 
(`) 
Output tax 
payable 
    
Intra-State supply 
of taxable goods  
5,00,000 45,000 45,000  
Service of booking 
of flight tickets 
[Taxable since 
service of booking 
of air tickets is 
being provided 
here. Only the 
service of 
transportation of 
passengers in 
economy class 
embarking from 
Bagdogra is 
exempt.   
Further, the place 
of supply of 
20,000   3,600 
 
601
services made to a 
registered person is 
the location of such 
person, viz. Delhi in 
given case.  Thus, 
same is inter-State 
supply.]  
Selling of Pune unit 
as going concern to 
H Ltd.  
[Services by way of 
transfer of a going 
concern is exempt.] 
10,00,000 - - - 
Service in relation 
to business 
exhibition in Dubai 
[Services by an 
organiser to any 
person in respect of 
a business 
exhibition held 
outside India is 
exempt.] 
5,00,000 - - -- 
Inter-State supply 
of service 
10,00,000 - - 1,80,000 
Total output tax 
liability 
 45,000 45,000 1,83,600 
(ii) Computation of input tax credit available to DEF Pvt. Ltd. for 
January, 2025 
Particulars Value 
 
(`) 
CGST 
@ 9% 
(`) 
SGST @ 
9% 
(`) 
IGST @ 
18% 
(`) 
Opening balance  25,000 25,000 30,000 
Issue of debit note 
for post delivery 
service [ITC on debit 
notes issued in a 
financial year can be 
availed any time till  
30
th
 November of the 
succeeding financial 
year or the date of 
filing of the relevant 
annual return, 
whichever is earlier, 
irrespective of the 
25,000   4,500 
602
date of original 
invoice/ supply. 
Further, place of 
supply being Pune in 
given case, same is 
inter-State supply.] 
Receipt of intra-
State services 
[ITC on services 
used in the course or 
furtherance of 
business is allowed.] 
6,00,00
0
54,000 54,000 
Purchase of 
confectionery items 
[ITC on food or 
beverages is 
specifically 
disallowed unless 
the same is used for 
making outward 
taxable supply of the 
same category or as 
an element of the 
taxable composite or 
mixed supply.] 
1,00,00
0
- - -- 
Total 79,000 79,000 34,500 
(b) Computation of GST payable by the ABC Infra for February
Particulars CGST @ 
9% (`) 
SGST @ 
9% (`) 
(i) Consideration for agreeing to install 
effluent plant 
[Taxable since it is a supply of service 
of agreeing to the obligation to do an 
act.] 
49,500 49,500 
(ii) Distribution of 500 passes of cricket 
match 
[Exempt since consideration for 
services by way of right to admission 
to unrecognised sporting event is not 
more than ` 500 per person
1
] 
- 
- 
(iii) Booking air tickets in economy class 
[Taxable since service of booking of 
air tickets is being provided here. Only 
10,800 10,800 
1
 Consideration charged is ` 485 per person (` 2,42,500/500). 
603
Page 4


ANSWERS OF MODEL TEST PAPER 8 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
SUGGESTED ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (A) 5,000 
2. (B) ` 1,00,000 
3. (B) 24-09-2024 
4. (A) 04.07.2024 
5. (C) 50,400 
6. (D) 31.01.2025 
7. (B) ` 5,10,000 
8. (C) ` 9,999 per day 
 
Division B - Descriptive Questions 
1. (a) (i) Computation of output tax liability of DEF Pvt. Ltd. for January, 
2025 
Particulars Value  
 
(`) 
CGST 
@ 9% 
(`) 
SGST 
@ 9% 
(`) 
IGST  
@ 18% 
(`) 
Output tax 
payable 
    
Intra-State supply 
of taxable goods  
5,00,000 45,000 45,000  
Service of booking 
of flight tickets 
[Taxable since 
service of booking 
of air tickets is 
being provided 
here. Only the 
service of 
transportation of 
passengers in 
economy class 
embarking from 
Bagdogra is 
exempt.   
Further, the place 
of supply of 
20,000   3,600 
 
601
services made to a 
registered person is 
the location of such 
person, viz. Delhi in 
given case.  Thus, 
same is inter-State 
supply.]  
Selling of Pune unit 
as going concern to 
H Ltd.  
[Services by way of 
transfer of a going 
concern is exempt.] 
10,00,000 - - - 
Service in relation 
to business 
exhibition in Dubai 
[Services by an 
organiser to any 
person in respect of 
a business 
exhibition held 
outside India is 
exempt.] 
5,00,000 - - -- 
Inter-State supply 
of service 
10,00,000 - - 1,80,000 
Total output tax 
liability 
 45,000 45,000 1,83,600 
(ii) Computation of input tax credit available to DEF Pvt. Ltd. for 
January, 2025 
Particulars Value 
 
(`) 
CGST 
@ 9% 
(`) 
SGST @ 
9% 
(`) 
IGST @ 
18% 
(`) 
Opening balance  25,000 25,000 30,000 
Issue of debit note 
for post delivery 
service [ITC on debit 
notes issued in a 
financial year can be 
availed any time till  
30
th
 November of the 
succeeding financial 
year or the date of 
filing of the relevant 
annual return, 
whichever is earlier, 
irrespective of the 
25,000   4,500 
602
date of original 
invoice/ supply. 
Further, place of 
supply being Pune in 
given case, same is 
inter-State supply.] 
Receipt of intra-
State services 
[ITC on services 
used in the course or 
furtherance of 
business is allowed.] 
6,00,00
0
54,000 54,000 
Purchase of 
confectionery items 
[ITC on food or 
beverages is 
specifically 
disallowed unless 
the same is used for 
making outward 
taxable supply of the 
same category or as 
an element of the 
taxable composite or 
mixed supply.] 
1,00,00
0
- - -- 
Total 79,000 79,000 34,500 
(b) Computation of GST payable by the ABC Infra for February
Particulars CGST @ 
9% (`) 
SGST @ 
9% (`) 
(i) Consideration for agreeing to install 
effluent plant 
[Taxable since it is a supply of service 
of agreeing to the obligation to do an 
act.] 
49,500 49,500 
(ii) Distribution of 500 passes of cricket 
match 
[Exempt since consideration for 
services by way of right to admission 
to unrecognised sporting event is not 
more than ` 500 per person
1
] 
- 
- 
(iii) Booking air tickets in economy class 
[Taxable since service of booking of 
air tickets is being provided here. Only 
10,800 10,800 
1
 Consideration charged is ` 485 per person (` 2,42,500/500). 
603
the service of transportation of 
passengers in economy class 
terminating in Manipur is exempt.]  
(iv) Service of construction of buildings 
provided to State Government 
[Taxable since value of supply of 
goods constitutes more than 25% of 
the value of the composite supply of 
goods and services.] 
73,800  73,800 
 Total GST payable by ABC Infra 1,34,100 1,34,100 
2. (a) A registered person is eligible to opt for composition scheme for goods 
in the current financial year (FY) provided his aggregate turnover does 
not exceed ` 1.50 crore [other than in specified Special Category States] 
in the preceding FY. 
 Since aggregate turnover of M/s. T in the preceding FY does not 
exceed ` 1.5 crore, he is eligible for composition scheme for goods 
under section 10(1) and 10(2) of the CGST Act, 2017 in the current 
FY.  
 As per section 10(2A) of the CGST Act, 2017, a registered person who 
is eligible to pay tax under section 10(1) and (2) is not eligible for 
opting for composition under section 10(2A) of the CGST Act, 2017. 
 As per section 10(2A) of the CGST Act, 2017, person engaged in the 
supply of service is eligible for composition scheme for payment of tax 
@ 3% CGST and 3% SGST provided his aggregate turnover does not 
exceed ` 50 lakh in the preceding FY. 
 Since turnover of previous year is ` 1.32 crore and firm is not dealing 
in the service only,  M/s T cannot  opt for composition scheme under 
section 10(2A) of the CGST Act, 2017 for FY 2024-25. 
 A person who opts to pay tax under composition scheme under section 
10(1) and 10(2) of the CGST Act, 2017 is also permitted to supply 
services [other than restaurant services] upto a value not exceeding: 
(a) 10% of the turnover in a State/U.T. in the preceding financial year,
or 
(b) ` 5 lakh, 
 whichever is higher.   
 Thus, M/s T is permitted to supply services upto a value of ` 13,20,000 
i.e. 10% of ` 1.32 crores, in current FY. 
 Further, there is no restriction on composition supplier to receive inter-
State inward supplies of goods or services. 
 Thus, it can be concluded that M/s T can opt for composition scheme 
of goods under section 10(1) of the CGST Act, 2017 for FY 2024-25. 
  
604
Page 5


ANSWERS OF MODEL TEST PAPER 8 
SECTION B – GOODS AND SERVICES TAX (50 MARKS) 
SUGGESTED ANSWERS 
Division A - Multiple Choice Questions 
Question 
No. 
Answer 
1. (A) 5,000 
2. (B) ` 1,00,000 
3. (B) 24-09-2024 
4. (A) 04.07.2024 
5. (C) 50,400 
6. (D) 31.01.2025 
7. (B) ` 5,10,000 
8. (C) ` 9,999 per day 
 
Division B - Descriptive Questions 
1. (a) (i) Computation of output tax liability of DEF Pvt. Ltd. for January, 
2025 
Particulars Value  
 
(`) 
CGST 
@ 9% 
(`) 
SGST 
@ 9% 
(`) 
IGST  
@ 18% 
(`) 
Output tax 
payable 
    
Intra-State supply 
of taxable goods  
5,00,000 45,000 45,000  
Service of booking 
of flight tickets 
[Taxable since 
service of booking 
of air tickets is 
being provided 
here. Only the 
service of 
transportation of 
passengers in 
economy class 
embarking from 
Bagdogra is 
exempt.   
Further, the place 
of supply of 
20,000   3,600 
 
601
services made to a 
registered person is 
the location of such 
person, viz. Delhi in 
given case.  Thus, 
same is inter-State 
supply.]  
Selling of Pune unit 
as going concern to 
H Ltd.  
[Services by way of 
transfer of a going 
concern is exempt.] 
10,00,000 - - - 
Service in relation 
to business 
exhibition in Dubai 
[Services by an 
organiser to any 
person in respect of 
a business 
exhibition held 
outside India is 
exempt.] 
5,00,000 - - -- 
Inter-State supply 
of service 
10,00,000 - - 1,80,000 
Total output tax 
liability 
 45,000 45,000 1,83,600 
(ii) Computation of input tax credit available to DEF Pvt. Ltd. for 
January, 2025 
Particulars Value 
 
(`) 
CGST 
@ 9% 
(`) 
SGST @ 
9% 
(`) 
IGST @ 
18% 
(`) 
Opening balance  25,000 25,000 30,000 
Issue of debit note 
for post delivery 
service [ITC on debit 
notes issued in a 
financial year can be 
availed any time till  
30
th
 November of the 
succeeding financial 
year or the date of 
filing of the relevant 
annual return, 
whichever is earlier, 
irrespective of the 
25,000   4,500 
602
date of original 
invoice/ supply. 
Further, place of 
supply being Pune in 
given case, same is 
inter-State supply.] 
Receipt of intra-
State services 
[ITC on services 
used in the course or 
furtherance of 
business is allowed.] 
6,00,00
0
54,000 54,000 
Purchase of 
confectionery items 
[ITC on food or 
beverages is 
specifically 
disallowed unless 
the same is used for 
making outward 
taxable supply of the 
same category or as 
an element of the 
taxable composite or 
mixed supply.] 
1,00,00
0
- - -- 
Total 79,000 79,000 34,500 
(b) Computation of GST payable by the ABC Infra for February
Particulars CGST @ 
9% (`) 
SGST @ 
9% (`) 
(i) Consideration for agreeing to install 
effluent plant 
[Taxable since it is a supply of service 
of agreeing to the obligation to do an 
act.] 
49,500 49,500 
(ii) Distribution of 500 passes of cricket 
match 
[Exempt since consideration for 
services by way of right to admission 
to unrecognised sporting event is not 
more than ` 500 per person
1
] 
- 
- 
(iii) Booking air tickets in economy class 
[Taxable since service of booking of 
air tickets is being provided here. Only 
10,800 10,800 
1
 Consideration charged is ` 485 per person (` 2,42,500/500). 
603
the service of transportation of 
passengers in economy class 
terminating in Manipur is exempt.]  
(iv) Service of construction of buildings 
provided to State Government 
[Taxable since value of supply of 
goods constitutes more than 25% of 
the value of the composite supply of 
goods and services.] 
73,800  73,800 
 Total GST payable by ABC Infra 1,34,100 1,34,100 
2. (a) A registered person is eligible to opt for composition scheme for goods 
in the current financial year (FY) provided his aggregate turnover does 
not exceed ` 1.50 crore [other than in specified Special Category States] 
in the preceding FY. 
 Since aggregate turnover of M/s. T in the preceding FY does not 
exceed ` 1.5 crore, he is eligible for composition scheme for goods 
under section 10(1) and 10(2) of the CGST Act, 2017 in the current 
FY.  
 As per section 10(2A) of the CGST Act, 2017, a registered person who 
is eligible to pay tax under section 10(1) and (2) is not eligible for 
opting for composition under section 10(2A) of the CGST Act, 2017. 
 As per section 10(2A) of the CGST Act, 2017, person engaged in the 
supply of service is eligible for composition scheme for payment of tax 
@ 3% CGST and 3% SGST provided his aggregate turnover does not 
exceed ` 50 lakh in the preceding FY. 
 Since turnover of previous year is ` 1.32 crore and firm is not dealing 
in the service only,  M/s T cannot  opt for composition scheme under 
section 10(2A) of the CGST Act, 2017 for FY 2024-25. 
 A person who opts to pay tax under composition scheme under section 
10(1) and 10(2) of the CGST Act, 2017 is also permitted to supply 
services [other than restaurant services] upto a value not exceeding: 
(a) 10% of the turnover in a State/U.T. in the preceding financial year,
or 
(b) ` 5 lakh, 
 whichever is higher.   
 Thus, M/s T is permitted to supply services upto a value of ` 13,20,000 
i.e. 10% of ` 1.32 crores, in current FY. 
 Further, there is no restriction on composition supplier to receive inter-
State inward supplies of goods or services. 
 Thus, it can be concluded that M/s T can opt for composition scheme 
of goods under section 10(1) of the CGST Act, 2017 for FY 2024-25. 
  
604
 (b) (i) Where the supply of goods is made to an unregistered person, the 
place of supply is the location as per the address of the 
unregistered person recorded in the invoice. 
 Further, recording of the name of the State of the unregistered 
person in the invoice is deemed to be the recording of the address 
of the unregistered person.  
 Thus, place of supply is Bhavnagar, Gujarat. 
(ii) The hoarding/structure erected on the land should be considered 
as immovable structure/fixture as it has been embedded in earth.   
 Therefore, the place of supply of service provided by way of supply 
of sale of space on hoarding/ structure for advertising or for grant 
of rights to use the hoarding/ structure for advertising is the location 
where such hoarding/ structure is located.  
 The place of supply of any service provided by way of supply/sale 
of space on an immovable property or grant of rights to use an 
immovable property is the location at which the immovable property 
is located, i.e. the location where such hoarding/ structure is 
located. 
 Thus, for hoarding located in Udaipur, place of supply  is Udaipur, 
Rajasthan and for hoarding located in Gwalior,  place of supply  is 
Gwalior, Madhya Pradesh. 
3. (a) In case of intra-State supply of goods by a supplier to a PSU, TDS @ 
1% each under CGST and SGST is liable to be deducted by PSU only 
when the total value of supply under a contract exceeds ` 2,50,000 
(exclusive of tax & cess), from the payment made or credited to the 
supplier.   
 Accordingly, in the given case, since the value of supply under the 
contract excluding taxes and cesses is ` 11,50,000 (` 13,57,000 × 
100/118),  
 TDS @ 1% on payment of each of the instalment of ` 2,30,000  
(` 11,50,000/5), i.e. ` 2,300 each under CGST and SGST is to be 
deducted even though the individual payment is less than ` 2,50,000. 
 The amount of TDS deducted shall be paid to the Government by the 
deductor within 10 days after the end of the month in which such 
deduction is made or by 10
th
 of the succeeding month. 
(b) Every registered person executing works contract shall keep separate 
accounts for works contract showing - 
• the names and addresses of the persons on whose behalf the 
works contract is executed; 
• description, value and quantity (wherever applicable) of 
goods/services received for the execution of works contract; 
605