Page 20 - Chap24Computation of GST

The company provided the following additional information:

(i) During the course of arranging and filing documents, the accountant of Sudarshan Ltd. observed
that an invoice for ₹ 96,000 (excluding GST) dated 2nd December of last year was omitted to be
recorded in the books of accounts and no payment was made against the same till the end of
January. This invoice was issued by Mr. Rishi of Kerala, from whom Sudarshan Ltd. had taken cars
on rental basis. Invoice included cost of fuel also.

(ii) Availed services of an arbitral tribunal in Kannur, Kerala worth ₹ 7,00,000 to settle a case
relating to Companies Act.
(iii) The company claimed depreciation under the Income-tax Act, 1961 on the new truck purchased

including all applicable taxes.
(iv) Saksham Steels Ltd. is mandatorily required to issue e-invoice. However, it did not issue e-
invoice with invoice reference number (IRN). The invoice was reflected in GSTR-2B.
(v) Turnover of Sudarshan Ltd. for the previous financial year was ₹ 180 lakh.
(vi) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively for both inward and outward

supply of goods and services.
(vii) All the amounts given above are exclusive of taxes wherever applicable.
From the information given above, you are required to compute the minimum net GST liability
payable in cash (CGST, SGST or IGST, as the case may be) for the month of January. Reason for

treatment needs to be given. [CA Final RTP Nov 23] [CA Final Dec 21 Exam (Similar)]
Answer:-
Computation of ITC available with Sudarshan Ltd. for January:

Particulars IGST @ CGST @ SGST@
18% (₹) 9% (₹) 9% (₹)

Monthly rent paid to Kerela State Government for an office taken on - 54,000 54,000
rent [Note 1]
Cars taken on rental basis from Mr. Rishi [Note 2] - - -

Services of an arbitral tribunal [Note 3] - 63,000 63,000
Purchase of raw material from Saksham Steels Ltd. [Note 4] - - -
Purchase of truck [Note 5] - - -
Total ITC - 1,17,000 1,17,000

Computation of minimum net GST payable in cash by Sudarshan Ltd. for January:
Particulars Value IGST @ CGST @ SGST@
18% (₹) 9% (₹) 9% (₹)
GST payable under Forward Charge

Free gifts to customers [Note 6] Nil - - -
Supply of consignment in territorial waters [Note 7] 6,00,000 - 54,000 54,000
Receipt of advance from customer [Note 8] 4,90,000 - 44,100 44,100
(₹ 7,00,000 - ₹ 2,10,000)

Inter-State supply of pure labour services for construction 15,00,000 2,70,000 - -
of single commercial unit in Mumbai [Note 9]
Total Output GST - 2,70,000 98,100 98,100

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