Page 22 - Chap24Computation of GST

7 Ü As per Sec 9 of the IGST Act 2017, Where the supply is in the territorial waters, the place of

supply is deemed to be in the coastal State where the nearest point of the appropriate
baseline is located.
Ü Therefore, place of supply will be in Kerala being nearer to base line and hence, supply will be
intra-State supply.
8 As per N/n 66/2017, Tax will be payable only on advance for services. In case of goods, tax is

payable at the time of issuance of invoice and not at the time of receipt of advance.
9 Services by way of pure labour contracts of construction of original works pertaining to a single
residential unit otherwise than as a part of a residential complex is exempt. Hence, such services in
relation to a commercial unit shall be taxable.

10 As per section 49(5) read with rule 88A of the CGST Act 2017, ITC of-
Ü IGST is utilised towards payment of IGST first and then CGST and SGST in that order.
Ü CGST is utilised towards payment of CGST first and then IGST. ITC of CGST shall be utilized only
after ITC of IGST has been utilised fully.
Ü SGST is utilised towards payment of SGST first and then IGST. ITC of SGST shall be utilized only

after ITC of IGST has been utilised fully.
11 Tax payable under reverse charge, being not an output tax, cannot be set off against ITC and thus,
will have to be paid in cash.

CCP 24.01.07.00
Jupiter Chemicals Ltd. (JC) is a manufacturer of industrial chemicals. It has its factory at Haridwar,
Uttarakhand and is registered under GST. It has its subsidiary company, Angel Traders Pvt. Ltd.

(AT), with holding of 75% of its share capital. AT is engaged in trading of chemicals manufactured by
JC in North India and is registered under GST in Delhi at ehouse address. JC has also appointed a
consignment agent - Popular Distributors (PD) - in Chennai which is catering the Southern India

market & issuing invoice in his own name . JC has also setup a state of art research and development
centre along with laboratory near the Haridwar factory and undertakes testing and development
services for chemicals from outside customers across the country. Following information is available
for the month of April 20XX of JC Haridwar:

S.No. Particulars (`)
i. JC supplies the chemicals to PD Chennai during the month. (PD sold the above said
45,00,000
goods to the unrelated wholesalers in the States of Tamil Nadu and Andhra Pradesh
for ` 60,00,000 during the same month). Open market value is ` 55,00,000

JC supplied chemicals to AT during the month. (AT further sold the said chemicals
ii. 30,00,000
to unrelated retailers in Delhi for ` 42,00,000 and AT is not eligible for full input
tax credit). Open Market value is ` 38,00,000

iii. JC exports chemicals to South Africa with payment of IGST and consideration for 28,00,000
the same was received in convertible foreign exchange.

iv. JC provided inter-State supply of testing services to various customers during the 8,50,000
month

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