Page 27 - Chapter 2.cdr

Answer: Computation of GST Liability of power Engineering Pvt. Ltd., Bangalore for
2 Truck sent to a client location in tamil Nadu for carrying
the month of NOVEMBER 20XX
out repairs. Standalone machine is also sent in the truck
CH 2
to client location for repairs
Sr.No Particulars `
value of items contained in the truck- ` 2,85,000
A Items sent in container truck to own location in Tamil 36,000
Value of stand-alone machine - ` 4,00,000
Nadu - IGST @ 12% [Note 1]
Value of truck - `20,00,000
Container truck sent to own location in Tamil Nadu [Note 2]
(Billing for repairs to be done afterwards depending upon
B Stand - alone machine sent in container truck to client
the actual items used)
location in Tamil Nadu, for carrying out repair [Note 3]
3 Truck sent to a client in Karnataka for carrying out repairs
Container truck sent to client location in TamilNadu [Note 3] Charge of Tax & Concept of Supply
Value of items contained in the truck - ` 1,06,000
Items sent in container truck to client location in Tamil
Value of truck - `20, 00, 000
Nadu, for carrying out repairs [Note 4]
(Billing for repairs to be done afterwards depending
C Container truck sen to client location in Karnataka [Note 3]
upon the actual items used)
Items sent in container truck to client location in Karnataka, for
4 Invoices raised for repair work carried out in Tamil 70,00,000 carrying out repairs [Note 4]
nadu (Including the invoice for repair work done in
D Invoices raised for repair work carried out in Tamil Nadu 12,60,000
'B') : IGST @ 18% [Note 5 and note 6]

5 Invoices raised for repair work carried out in karnataka 12,00,000
(Including the invoice for repair work done in 'C') Invoice raised for repair work carried out in karnataka :
E 2,16,000
CGST 9% + SGST 9% [Note 5 and Note 7]
All the given amount are exclusive of GST wherever applicable. Assume the rates
Total GST liability 15,12,000
of taxes to be as under:
Notes:
Items used for repairs
1) As per sec 25(4) read with schedule I of CGST Act, Movement of goods
CGST - 6% SGST - 6% IGST - 12%
without any consideration to a 'distinct person' is deemed to be a supply. The
Container truck, stand - alone machines
value of supply for this case shall be determine as per the terms of rule 28(a) of
CGST - 2.5% SGST - 2.5% IGST - 5%
the CGST Rules 2017
Works contract for repairs and maintenance of immovable property
CGST - 9% SGST - 9% IGST - 18% i.e., purchase value will be taken as taxable value, being the open market value.
In the given case-
You are required to make suitable assumptions, wherever necessary.
The location of the supplier is in Bangalore (Karnataka); and
(CA Final RTP May 2018 ICAI)
The place of supply for the items contained in the truck is Tamil Nadu in terms of
section 10(1)(a) of the IGST Act, 2017.

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