Page 16 - Chap24Computation of GST

5 Services by way of extending deposits, loans or advances in so far as the consideration is
represented by way of interest are exempt.

6 As per section 2(52) & 2(102) of CGST Act, Shares are neither goods nor services, hence sale of
shares is not liable to GST.
7 As per section 15(2)(a) of the CGST Act, Excise duty is included in the value as value of supply
includes all taxes, duties, cesses other than GST.

8 As per section 9 of the CGST Act, Supply of petrol and diesel is not leviable to GST.
9 Ü As per section 9(3) of CGST Act, Tax on services provided by any person by way of
sponsorship to any body corporate located in taxable territory is payable by the recipient
(Durga Das Private Limited) under reverse charge.

Ü Thus, tax on such services is not payable by Adityanath Private Limited.

CCP. 24.01.05.00
In the above question, all other things remaining the same, compute the net GST payable from
Electronic Cash Ledger if Adityanath Private Limited furnishes the following additional information:

Particulars (`)*
Consideration paid for repair of machinery used for manufacturing Product Alpha 5,20,000
by George Inc. of USA [Said machinery was sent to George Inc. in August for

carrying out repair work on the same.]
Life insurance premium paid by the company for the life insurance of employees as
48,50,000
per the policy of the company. There is no legal obligation for such insurance for
employees.
Audit fees paid 6,50,000

Raw material purchased [including raw material of ` 1,50,000 imported from China. 10,00,000
Basic customs duty of ` 15,000, social welfare surcharge of ` 1,500 and integrated

tax of ` 29,970 are separately paid on the imported raw material]
Transportation charges paid for transporting the goods [` 4,00,000 is paid to Goods 5,00,000
Transport Agency (GTA) registered in Uttar Pradesh who did not exercise the option
to pay tax on its services under forward charge and ` 1,00,000 is paid for transport
of goods by horse pulled carts. GST applicable on the services of GTA is 5%.]

Telephone expenses paid [Such expenses pertain to bills for landline phone installed at 4,25,000
the factory and mobile phones given to employees for official use.]
Bank charges paid towards company’s current account maintained with Manimani 2,00,000
Bank

Legal services received from an advocate during the period only in relation to Product 3,50,000
Beta
*excluding GST
Note: Assume that rates of GST on all inward supply of goods and services are 12% and 18%
respectively unless otherwise specified (Ignore CGST, SGST or IGST, for the sake of simplicity).

Subject to the information given above, assume that all the other conditions necessary for availing
ITC have been fulfilled. Turnover of Adityanath Private Limited was ` 40 crores in the preceding
financial year. The inputs and input services received during August are commonly used for making

all the outward supplies unless otherwise specified. The opening balance of Electronic Credit Ledger

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