Page 14 - Chap24Computation of GST

Ü Total turnover = ₹ 2,78,50,000 (₹ 21,00,000 + ₹ 9,00,000 + ₹ 15,00,000 + ₹ 3,75,000 + ₹

15,00,000 + ₹ 30,00,000 + ₹ 1,75,00,000 + ₹ 6,00,000 + ₹ 3,75,000)
7 Ü As per section 9(3) of CGST Act, Tax on legal services provided by an advocate to a business
entity, is payable under reverse charge by the business entity.
Ü Further, such services are not eligible for exemption provided under Exemption Notification
as the turnover of business entity (Jankinandan Associates) in the preceding financial year

exceeds ₹ 20 lakh.]
8 Ü As per section 49(4) amount available in electronic credit ledger may be used for making
payment towards output tax. However, tax payable under reverse charge is not an output tax.
Ü Therefore, input tax credit cannot be used to pay tax payable under reverse charge & thus,

tax payable under reverse charge will have to be paid in cash.

CCP 24.01.04.00
Adityanath Private Limited is registered under GST in the State of Uttar Pradesh. It is engaged in
supplying three products – Product Alpha, Product Beta and Product Gamma, from its factory

located in Rampur, Uttar Pradesh. Product Alpha and Product Beta are taxable whereas Product
Gamma is exempt from GST. Besides, it also supplies cigarettes from its factory located in Kanpur
and owns a petrol pump in Lucknow. It is also engaged in supply of certain services.

It has furnished the following information with regard to the supplies made by it in the month of
August:
Particulars (`)*
Supply of Product Alpha 50,00,000
Supply of Product Gamma 1,00,00,000

Supply of management consultancy services 50,00,000
Renting of commercial complex to local traders of electronic goods 50,00,000
Export of Product Beta 1,00,00,000

Export of consultancy services [including exports made to a Nepal based company 20,00,000
of `5 lakh (payment is received in Indian currency in said case)]
Sale of building (excluding stamp duty of ` 2.50 lakh being 2% of value adopted for 2,50,00,000
paying stamp duty) [Entire consideration is received post issuance of completion

certificate; building was occupied thereafter]
Interest received on investment in fixed deposits with Manimani bank 10,50,000
Sale of shares of a public company (Purchase price of such shares is ` 2,40,00,000) 2,50,00,000
Supply of cigarettes [GST being levied @ 28%.] (including excise duty of 1,00,00,000

` 12,50,000)
Supply of petrol and diesel (including VAT of ` 5,00,000 and excise duty of 80,00,000
` 12,50,000)
Amount received from Durga Das Private Limited of Lucknow, Uttar Pradesh. It
6,00,000
has sponsored the business exhibition organized in Delhi by Adityanath Private
Limited.

*excluding GST
With the help of the above-mentioned information, compute the gross GST liability of Adityanath

Private Limited for the month of August on the outward supplies made by it during said period.

486 CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy