Goods and Services Tax (Group I) Model Test Paper - 1 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 1 
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 
XYZ Electronics Pvt. Ltd. is a leading electronic goods manufacturing company in 
Delhi. The company produces a wide range of products, including smartphones, 
laptops, and home appliances.  
The sales by the Company are mainly through its distributors on the following credit 
terms: 
For laptops – up to 15 days 
For smartphones – up to 90 days 
For other home appliances – up to 45 days 
During the year, the Company purchased plant and machinery worth ` 1 crore 
exclusive of GST. The GST rate for such plant and machinery is 18%. The input 
tax credit on such plant and machinery is not blocked under any provision of the 
CGST Act, 2017. 
The Company is planning to demerge its operations in relation to the laptops and 
other computer accessories from the next financial year.  The demerged entity will 
be a separate legal entity of the Company in form of a wholly owned subsidiary of 
the Company having common Board of Directors. 
The Company also participates in domestic and international level trade fairs to 
showcase its products and sale through those events. The Electronics Association 
of Rajasthan is organising a trade fair in Jaipur. The Company is keen to participate 
in the same. To ensure the GST compliances, the Company wants to obtain the 
GST registration as casual taxable person in the state of Rajasthan. The Company 
obtained the GST registration as casual taxable person in the state of Rajasthan 
with the validity period of 45 days. 
The Company transferred the goods from one of its godown in Delhi to another 
godown in Gujarat wherein the Company has a registered place of business. The 
239
Page 2


MODEL TEST PAPER 1 
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 
XYZ Electronics Pvt. Ltd. is a leading electronic goods manufacturing company in 
Delhi. The company produces a wide range of products, including smartphones, 
laptops, and home appliances.  
The sales by the Company are mainly through its distributors on the following credit 
terms: 
For laptops – up to 15 days 
For smartphones – up to 90 days 
For other home appliances – up to 45 days 
During the year, the Company purchased plant and machinery worth ` 1 crore 
exclusive of GST. The GST rate for such plant and machinery is 18%. The input 
tax credit on such plant and machinery is not blocked under any provision of the 
CGST Act, 2017. 
The Company is planning to demerge its operations in relation to the laptops and 
other computer accessories from the next financial year.  The demerged entity will 
be a separate legal entity of the Company in form of a wholly owned subsidiary of 
the Company having common Board of Directors. 
The Company also participates in domestic and international level trade fairs to 
showcase its products and sale through those events. The Electronics Association 
of Rajasthan is organising a trade fair in Jaipur. The Company is keen to participate 
in the same. To ensure the GST compliances, the Company wants to obtain the 
GST registration as casual taxable person in the state of Rajasthan. The Company 
obtained the GST registration as casual taxable person in the state of Rajasthan 
with the validity period of 45 days. 
The Company transferred the goods from one of its godown in Delhi to another 
godown in Gujarat wherein the Company has a registered place of business. The 
239
value of goods transferred is ` 5 crores and the rate of GST applicable on such 
transfer is 18%. The tax invoice was issued, and GST was deposited by the 
Company. However, the consideration was not paid by the Gujarat office of the 
Company to the Delhi office even after 180 days of the invoice date. Further, there 
was no reverse movement of such goods from Gujarat godown to Delhi Godown. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. What shall be the time limit to issue invoice for supply of smartphones on
credit:
(a) Invoice shall be issued on 31
st
 day from the date of removal of
smartphones to distributors.
(b) Invoice shall be issued before or at the time of removal of smartphones
to distributors.
(c) Invoice shall be issued at the time of receiving payment from distributors.
(d) Invoice shall be issued upon completion of credit term, i.e. 90 days.
2. In relation to the plant and machinery purchased by the Company, select the
correct alternative from the following:
(a) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1.18 crore.
(b) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1 crore.
(c) ITC cannot be claimed in such transaction and value of asset on which
depreciation can be claimed under the provisions of Income- Tax Act,
1961 shall be ` 1 crore.
(d) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 82 lakh.
3. How shall the demerged entity be treated under the provisions of GST Law?
(a) The demerged entity shall be treated as related party of the Company.
(b) The demerged entity shall be treated as distinct entity of the Company.
(c) The demerged entity shall be treated as additional place of business of
the Company.
(d) The demerged entity shall be treated as sole selling agent of the
Company.
4. The period of retention of books of accounts related to period prior to
demerger under GST Law is:
(a) 36 months from the end of financial year
(b) 60 months from the end of financial year
(c) 72 months from the end of financial year
240
Page 3


MODEL TEST PAPER 1 
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 
XYZ Electronics Pvt. Ltd. is a leading electronic goods manufacturing company in 
Delhi. The company produces a wide range of products, including smartphones, 
laptops, and home appliances.  
The sales by the Company are mainly through its distributors on the following credit 
terms: 
For laptops – up to 15 days 
For smartphones – up to 90 days 
For other home appliances – up to 45 days 
During the year, the Company purchased plant and machinery worth ` 1 crore 
exclusive of GST. The GST rate for such plant and machinery is 18%. The input 
tax credit on such plant and machinery is not blocked under any provision of the 
CGST Act, 2017. 
The Company is planning to demerge its operations in relation to the laptops and 
other computer accessories from the next financial year.  The demerged entity will 
be a separate legal entity of the Company in form of a wholly owned subsidiary of 
the Company having common Board of Directors. 
The Company also participates in domestic and international level trade fairs to 
showcase its products and sale through those events. The Electronics Association 
of Rajasthan is organising a trade fair in Jaipur. The Company is keen to participate 
in the same. To ensure the GST compliances, the Company wants to obtain the 
GST registration as casual taxable person in the state of Rajasthan. The Company 
obtained the GST registration as casual taxable person in the state of Rajasthan 
with the validity period of 45 days. 
The Company transferred the goods from one of its godown in Delhi to another 
godown in Gujarat wherein the Company has a registered place of business. The 
239
value of goods transferred is ` 5 crores and the rate of GST applicable on such 
transfer is 18%. The tax invoice was issued, and GST was deposited by the 
Company. However, the consideration was not paid by the Gujarat office of the 
Company to the Delhi office even after 180 days of the invoice date. Further, there 
was no reverse movement of such goods from Gujarat godown to Delhi Godown. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. What shall be the time limit to issue invoice for supply of smartphones on
credit:
(a) Invoice shall be issued on 31
st
 day from the date of removal of
smartphones to distributors.
(b) Invoice shall be issued before or at the time of removal of smartphones
to distributors.
(c) Invoice shall be issued at the time of receiving payment from distributors.
(d) Invoice shall be issued upon completion of credit term, i.e. 90 days.
2. In relation to the plant and machinery purchased by the Company, select the
correct alternative from the following:
(a) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1.18 crore.
(b) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1 crore.
(c) ITC cannot be claimed in such transaction and value of asset on which
depreciation can be claimed under the provisions of Income- Tax Act,
1961 shall be ` 1 crore.
(d) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 82 lakh.
3. How shall the demerged entity be treated under the provisions of GST Law?
(a) The demerged entity shall be treated as related party of the Company.
(b) The demerged entity shall be treated as distinct entity of the Company.
(c) The demerged entity shall be treated as additional place of business of
the Company.
(d) The demerged entity shall be treated as sole selling agent of the
Company.
4. The period of retention of books of accounts related to period prior to
demerger under GST Law is:
(a) 36 months from the end of financial year
(b) 60 months from the end of financial year
(c) 72 months from the end of financial year
240
(d) 72 months from due date of furnishing annual return for the relevant
financial year
5. The validity of GST registration as a casual taxable person in the state of
Rajasthan is:
(a) 45 days
(b) 90 days
(c) 180 days
(d) 135 days
6. Which of the following statements is true in relation to the non-payment of
consideration by the Gujarat godown to Delhi godown?
(a) The Gujarat godown shall reverse the ITC availed on the goods received
from Delhi and also required to pay interest computed from the date of
invoice till the date of reversal of ITC.
(b) The Gujarat godown shall reverse the ITC availed on the goods received
from Delhi and no interest shall be applicable.
(c) The restriction of 180 days for payment of consideration is not applicable
in the present case.
(d) The Delhi godown shall issue a credit note to Gujarat godown to reverse
the supply. (6 x 2 Marks = 12 Marks)
7. Sanu Associates, Delhi dealing in garments has ordered ladies suits from
Sahiba Garments in Ludhiana (Punjab) which is 350 km away from its
warehouse. E-way bill is generated by Sahiba Garments and the order is
coming by a normal cargo. For how many days will the e-way bill be valid from
the time it is generated?
(a) 24 hours
(b) 2 days
(c) 5 days
(d) 7 days (2 Marks) 
8. ‘Pihu’ Ltd. has its registered office, under the Companies Act, 2013, in the
State of Maharashtra from where it ordinarily carries on its business of taxable
goods. It also has a warehouse in the State of Telangana for storing said
goods. What will be the place of business of ‘Pihu’ Ltd. under the GST law?
(a) Telangana
(b) Maharashtra
(c) Both (a) and (b)
(d) Neither (a) nor (b) (1 Mark) 
241
Page 4


MODEL TEST PAPER 1 
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 
XYZ Electronics Pvt. Ltd. is a leading electronic goods manufacturing company in 
Delhi. The company produces a wide range of products, including smartphones, 
laptops, and home appliances.  
The sales by the Company are mainly through its distributors on the following credit 
terms: 
For laptops – up to 15 days 
For smartphones – up to 90 days 
For other home appliances – up to 45 days 
During the year, the Company purchased plant and machinery worth ` 1 crore 
exclusive of GST. The GST rate for such plant and machinery is 18%. The input 
tax credit on such plant and machinery is not blocked under any provision of the 
CGST Act, 2017. 
The Company is planning to demerge its operations in relation to the laptops and 
other computer accessories from the next financial year.  The demerged entity will 
be a separate legal entity of the Company in form of a wholly owned subsidiary of 
the Company having common Board of Directors. 
The Company also participates in domestic and international level trade fairs to 
showcase its products and sale through those events. The Electronics Association 
of Rajasthan is organising a trade fair in Jaipur. The Company is keen to participate 
in the same. To ensure the GST compliances, the Company wants to obtain the 
GST registration as casual taxable person in the state of Rajasthan. The Company 
obtained the GST registration as casual taxable person in the state of Rajasthan 
with the validity period of 45 days. 
The Company transferred the goods from one of its godown in Delhi to another 
godown in Gujarat wherein the Company has a registered place of business. The 
239
value of goods transferred is ` 5 crores and the rate of GST applicable on such 
transfer is 18%. The tax invoice was issued, and GST was deposited by the 
Company. However, the consideration was not paid by the Gujarat office of the 
Company to the Delhi office even after 180 days of the invoice date. Further, there 
was no reverse movement of such goods from Gujarat godown to Delhi Godown. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. What shall be the time limit to issue invoice for supply of smartphones on
credit:
(a) Invoice shall be issued on 31
st
 day from the date of removal of
smartphones to distributors.
(b) Invoice shall be issued before or at the time of removal of smartphones
to distributors.
(c) Invoice shall be issued at the time of receiving payment from distributors.
(d) Invoice shall be issued upon completion of credit term, i.e. 90 days.
2. In relation to the plant and machinery purchased by the Company, select the
correct alternative from the following:
(a) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1.18 crore.
(b) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1 crore.
(c) ITC cannot be claimed in such transaction and value of asset on which
depreciation can be claimed under the provisions of Income- Tax Act,
1961 shall be ` 1 crore.
(d) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 82 lakh.
3. How shall the demerged entity be treated under the provisions of GST Law?
(a) The demerged entity shall be treated as related party of the Company.
(b) The demerged entity shall be treated as distinct entity of the Company.
(c) The demerged entity shall be treated as additional place of business of
the Company.
(d) The demerged entity shall be treated as sole selling agent of the
Company.
4. The period of retention of books of accounts related to period prior to
demerger under GST Law is:
(a) 36 months from the end of financial year
(b) 60 months from the end of financial year
(c) 72 months from the end of financial year
240
(d) 72 months from due date of furnishing annual return for the relevant
financial year
5. The validity of GST registration as a casual taxable person in the state of
Rajasthan is:
(a) 45 days
(b) 90 days
(c) 180 days
(d) 135 days
6. Which of the following statements is true in relation to the non-payment of
consideration by the Gujarat godown to Delhi godown?
(a) The Gujarat godown shall reverse the ITC availed on the goods received
from Delhi and also required to pay interest computed from the date of
invoice till the date of reversal of ITC.
(b) The Gujarat godown shall reverse the ITC availed on the goods received
from Delhi and no interest shall be applicable.
(c) The restriction of 180 days for payment of consideration is not applicable
in the present case.
(d) The Delhi godown shall issue a credit note to Gujarat godown to reverse
the supply. (6 x 2 Marks = 12 Marks)
7. Sanu Associates, Delhi dealing in garments has ordered ladies suits from
Sahiba Garments in Ludhiana (Punjab) which is 350 km away from its
warehouse. E-way bill is generated by Sahiba Garments and the order is
coming by a normal cargo. For how many days will the e-way bill be valid from
the time it is generated?
(a) 24 hours
(b) 2 days
(c) 5 days
(d) 7 days (2 Marks) 
8. ‘Pihu’ Ltd. has its registered office, under the Companies Act, 2013, in the
State of Maharashtra from where it ordinarily carries on its business of taxable
goods. It also has a warehouse in the State of Telangana for storing said
goods. What will be the place of business of ‘Pihu’ Ltd. under the GST law?
(a) Telangana
(b) Maharashtra
(c) Both (a) and (b)
(d) Neither (a) nor (b) (1 Mark) 
241
Division B - Descriptive Questions 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
Total Marks:35 Marks 
1. (a) Vishnu Pvt. Ltd., a registered supplier of goods and services at Kolkata 
has furnished the following information for the month of February: 
S. No. Particulars Amount (`) 
(i) Intra-State supply of taxable goods including  
` 1,00,000 received as advance in January,  
the invoice for the entire sale value is issued 
on 15
th
 February 
4,00,000 
(ii) Purchase of goods from a composition dealer, 
registered in Kolkata 
5,50,000 
(iii) Services provided by way of labour contracts 
for repairing a single residential unit otherwise 
than as a part of residential complex (It is an 
intra-State transaction)  
1,00,000 
(iv) Membership of a club availed for employees 
working in the factory (It is an intra-State 
transaction) 
1,75,000 
(v) Goods transport services received from a GTA.  
GTA has exercised option to pay tax @12% (It 
is an inter-State transaction)  
2,00,000 
(vi) Inter-State services provided by way of training 
in sports 
10,000 
(vii) Inter-State security services provided to Bharat 
higher secondary school for their annual day 
function organised in Kaman Auditorium 
outside the School campus 
15,000 
(vii) Inputs to be received in 4 lots, out of which 2
nd
 
lot was received during the month 
40,000 
 The company has following ITCs with it at the beginning of the tax period:  
Particulars Amount (`)  
CGST 57,000 
SGST Nil  
IGST 50,000 
 Note:  
(i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.   
(ii) Both inward and outward supplies are exclusive of taxes, wherever 
applicable. 
(iii) All the conditions necessary for availing the ITC have been fulfilled. 
242
Page 5


MODEL TEST PAPER 1 
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 
XYZ Electronics Pvt. Ltd. is a leading electronic goods manufacturing company in 
Delhi. The company produces a wide range of products, including smartphones, 
laptops, and home appliances.  
The sales by the Company are mainly through its distributors on the following credit 
terms: 
For laptops – up to 15 days 
For smartphones – up to 90 days 
For other home appliances – up to 45 days 
During the year, the Company purchased plant and machinery worth ` 1 crore 
exclusive of GST. The GST rate for such plant and machinery is 18%. The input 
tax credit on such plant and machinery is not blocked under any provision of the 
CGST Act, 2017. 
The Company is planning to demerge its operations in relation to the laptops and 
other computer accessories from the next financial year.  The demerged entity will 
be a separate legal entity of the Company in form of a wholly owned subsidiary of 
the Company having common Board of Directors. 
The Company also participates in domestic and international level trade fairs to 
showcase its products and sale through those events. The Electronics Association 
of Rajasthan is organising a trade fair in Jaipur. The Company is keen to participate 
in the same. To ensure the GST compliances, the Company wants to obtain the 
GST registration as casual taxable person in the state of Rajasthan. The Company 
obtained the GST registration as casual taxable person in the state of Rajasthan 
with the validity period of 45 days. 
The Company transferred the goods from one of its godown in Delhi to another 
godown in Gujarat wherein the Company has a registered place of business. The 
239
value of goods transferred is ` 5 crores and the rate of GST applicable on such 
transfer is 18%. The tax invoice was issued, and GST was deposited by the 
Company. However, the consideration was not paid by the Gujarat office of the 
Company to the Delhi office even after 180 days of the invoice date. Further, there 
was no reverse movement of such goods from Gujarat godown to Delhi Godown. 
Based on the facts of the case scenario given above, choose the most appropriate 
answer to Q. Nos. 1 to 6 below: 
1. What shall be the time limit to issue invoice for supply of smartphones on
credit:
(a) Invoice shall be issued on 31
st
 day from the date of removal of
smartphones to distributors.
(b) Invoice shall be issued before or at the time of removal of smartphones
to distributors.
(c) Invoice shall be issued at the time of receiving payment from distributors.
(d) Invoice shall be issued upon completion of credit term, i.e. 90 days.
2. In relation to the plant and machinery purchased by the Company, select the
correct alternative from the following:
(a) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1.18 crore.
(b) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 1 crore.
(c) ITC cannot be claimed in such transaction and value of asset on which
depreciation can be claimed under the provisions of Income- Tax Act,
1961 shall be ` 1 crore.
(d) ITC of ` 18 lakh can be claimed and value of asset on which depreciation
can be claimed under the provisions of Income- Tax Act, 1961 shall be
` 82 lakh.
3. How shall the demerged entity be treated under the provisions of GST Law?
(a) The demerged entity shall be treated as related party of the Company.
(b) The demerged entity shall be treated as distinct entity of the Company.
(c) The demerged entity shall be treated as additional place of business of
the Company.
(d) The demerged entity shall be treated as sole selling agent of the
Company.
4. The period of retention of books of accounts related to period prior to
demerger under GST Law is:
(a) 36 months from the end of financial year
(b) 60 months from the end of financial year
(c) 72 months from the end of financial year
240
(d) 72 months from due date of furnishing annual return for the relevant
financial year
5. The validity of GST registration as a casual taxable person in the state of
Rajasthan is:
(a) 45 days
(b) 90 days
(c) 180 days
(d) 135 days
6. Which of the following statements is true in relation to the non-payment of
consideration by the Gujarat godown to Delhi godown?
(a) The Gujarat godown shall reverse the ITC availed on the goods received
from Delhi and also required to pay interest computed from the date of
invoice till the date of reversal of ITC.
(b) The Gujarat godown shall reverse the ITC availed on the goods received
from Delhi and no interest shall be applicable.
(c) The restriction of 180 days for payment of consideration is not applicable
in the present case.
(d) The Delhi godown shall issue a credit note to Gujarat godown to reverse
the supply. (6 x 2 Marks = 12 Marks)
7. Sanu Associates, Delhi dealing in garments has ordered ladies suits from
Sahiba Garments in Ludhiana (Punjab) which is 350 km away from its
warehouse. E-way bill is generated by Sahiba Garments and the order is
coming by a normal cargo. For how many days will the e-way bill be valid from
the time it is generated?
(a) 24 hours
(b) 2 days
(c) 5 days
(d) 7 days (2 Marks) 
8. ‘Pihu’ Ltd. has its registered office, under the Companies Act, 2013, in the
State of Maharashtra from where it ordinarily carries on its business of taxable
goods. It also has a warehouse in the State of Telangana for storing said
goods. What will be the place of business of ‘Pihu’ Ltd. under the GST law?
(a) Telangana
(b) Maharashtra
(c) Both (a) and (b)
(d) Neither (a) nor (b) (1 Mark) 
241
Division B - Descriptive Questions 
Question No. 1 is compulsory. 
Attempt any two questions out of remaining three questions. 
Total Marks:35 Marks 
1. (a) Vishnu Pvt. Ltd., a registered supplier of goods and services at Kolkata 
has furnished the following information for the month of February: 
S. No. Particulars Amount (`) 
(i) Intra-State supply of taxable goods including  
` 1,00,000 received as advance in January,  
the invoice for the entire sale value is issued 
on 15
th
 February 
4,00,000 
(ii) Purchase of goods from a composition dealer, 
registered in Kolkata 
5,50,000 
(iii) Services provided by way of labour contracts 
for repairing a single residential unit otherwise 
than as a part of residential complex (It is an 
intra-State transaction)  
1,00,000 
(iv) Membership of a club availed for employees 
working in the factory (It is an intra-State 
transaction) 
1,75,000 
(v) Goods transport services received from a GTA.  
GTA has exercised option to pay tax @12% (It 
is an inter-State transaction)  
2,00,000 
(vi) Inter-State services provided by way of training 
in sports 
10,000 
(vii) Inter-State security services provided to Bharat 
higher secondary school for their annual day 
function organised in Kaman Auditorium 
outside the School campus 
15,000 
(vii) Inputs to be received in 4 lots, out of which 2
nd
 
lot was received during the month 
40,000 
 The company has following ITCs with it at the beginning of the tax period:  
Particulars Amount (`)  
CGST 57,000 
SGST Nil  
IGST 50,000 
 Note:  
(i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.   
(ii) Both inward and outward supplies are exclusive of taxes, wherever 
applicable. 
(iii) All the conditions necessary for availing the ITC have been fulfilled. 
242
(iv) The turnover of Vishnu Pvt. Ltd. was ` 2.5 crore in the previous 
financial year. 
 Compute the minimum GST, payable in cash, by Vishnu Pvt. Ltd. for the 
month of February.  Make suitable assumptions as required.  
 (10 Marks) 
(b) Gulati Ltd., a registered supplier in Mumbai (Maharashtra), has supplied 
goods to Mridul Traders and Kalu Motors Ltd. located in Ahmedabad 
(Gujarat) and Pune (Maharashtra) respectively.  Gulati Ltd. has 
furnished the following details for the current month: 
S. No. Particulars Mridul 
Traders (`) 
Kalu Motors 
Ltd. (`) 
(i) Price of the goods (excluding 
GST) 
10,000 30,000 
(ii) Packing charges 500  
(iii) Commission 500  
(iv) Weighment charges  2,000 
(v) Discount for prompt payment 
(recorded in the invoice) 
 1,000 
 Items given in points (ii) to (v) have not been considered while arriving 
at price of the goods given in point (i) above. 
 Compute the GST liability [CGST & SGST or IGST, as the case may be] 
of Gulati Ltd. for the given month.  Assume the rates of taxes to be as 
under: 
Particulars Rate of 
tax 
Central tax (CGST) 9% 
State Tax (SGST) 9% 
Integrated tax (IGST) 18% 
Make suitable assumptions, wherever necessary. (5 Marks) 
2. (a)  Nath Services Limited, registered under GST, is engaged in providing 
various services to Government. The company provides the following 
information in respect of services provided during the month of April: 
S. 
No. 
Description of Services provided 
(i) Supply of manpower for cleanliness of roads not involving any 
supply of goods. 
(ii) Service provided by Fair Price Shops owned by Nath Services 
Limited by way of sale of sugar under Public Distribution 
System against consideration in the form of commission. 
(iii) Service of maintenance of street lights in a Municipal area 
involving replacement of defunct lights and other spares 
243