Page 15 - Chap24Computation of GST

Note: Assume that rates of GST on outward supply of goods and services are 12% and 18%
respectively unless otherwise specified (Ignore CGST, SGST or IGST for the sake of simplicity).

Exports made by Adityanath Private Limited, if any, have been made to persons other than
distinct/related persons and are made by furnishing LUT without payment of IGST. [CA Final RTP
MAY 22]
Answer:-

Computation of gross GST liability on outward supply of Adityanath Private Limited for the month of
August :-
Particulars Value(`) GST(`)
Supply of Product Alpha [Liable to GST @ 12%] 50,00,000 6,00,000

Supply of Product Gamma [Exempt from GST] 1,00,00,000 Nil
Supply of management consultancy services [Liable to GST @ 18%] 50,00,000 9,00,000
Renting of commercial complex to local traders of electronic goods [Note 1] 50,00,000 9,00,000
Export of Product Beta [Note 2] 1,00,00,000 Nil

Export of consultancy services [Note 3] 20,00,000 Nil
Sale of building [Note 4] 2,50,00,000 Nil
Interest received on investment in fixed deposits with Manimani Bank [Note 5] 10,50,000 Nil

Sale of shares [Note 6] 2,50,00,000 Nil
Supply of cigarettes (Liable to GST@28%) [Note 7] 1,00,00,000 28,00,000
Supply of petrol and diesel [Note 8] 80,00,000 Nil
Amount received from Durga Das Private Limited for sponsorship of the business 6,00,000 Nil
exhibition [Note 9]
Total GST liability on outward supply 52,00,000

Notes:
1 Ü Services by way of renting of residential dwelling for use as residence to an unregistered person

are exempt from GST.
Ü Thus, renting of commercial complex is taxable and GST is payable on same @ 18%.
2 As per section 16(1)(a) of IGST Act 2017, Export of goods is a zero-rated supply & A zero rated
supply can be supplied without payment of tax under LUT as per section 16(3)(a) of that Act.

3 ÜAs per section 2(6) of IGST Act, The activity is an export of service if payment for service has
been received in convertible foreign exchange or in Indian rupees wherever permitted by Reserve
Bank of India.
ÜSince in case of exports to Nepal, RBI regulations allow receipt of payment in Indian rupees,

exports of services to Nepal are treated as 'normal exports
ÜAs per section 16(1)(a) of IGST Act 2017, Export of services is a zero-rated supply & A zero rated
supply can be supplied without payment of tax under LUT as per section 16(3)(a) of that Act.

4 ÜAs per para 5 of Schedule III to CGST Act 2017, Sale of building is neither a supply of goods nor a

supply of services provided the entire consideration has been received after issue of completion
certificate by competent authority or after its occupation, whichever is earlier.
Ü Hence, the same is not liable to GST.

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