Page 26 - Chap24Computation of GST

Compute the total ITC available with Motopower Pvt. Ltd. for the given tax period and net GST
payable [CGST, SGST or IGST, as the case may be] from Electronic Cash Ledger by Motopower Pvt.

Ltd. for the given tax period.
Notes-
(A) CGST, SGST & IGST rates on all inward and outward supplies are 9%, 9% and 18% respectively,
except on renting of cars wherein CGST, SGST & IGST rates are 2.5%, 2.5% and 5% respectively.

It is important to note that credit of input tax charged on goods and services used in
supplying the service of transport of passengers by any motor vehicle designed to carry
passengers where the cost of fuel is included in the consideration charged from the service
recipient, is not available except the credit of the input service in the same line of business.

(B) The necessary conditions for availing ITC have been complied with by Motopower Pvt. Ltd.,
wherever applicable.
You are required to make suitable assumptions, wherever necessary. [CA Final RTP Nov 22]
Answer:-
Computation of ITC available with Motopower Pvt. Ltd. for the given tax period:

S. Particulars Value of ITC
No. Supply IGST CGST SGST Total
(`) (`) (`) (`) (`)

1 Opening balance of ITC 35,000 50,000 26,000 1,11,000
2 Raw Materials [` 4,50,000 – ` 50,000] [Note 1] 4,00,000 72,000 - - 72,000
3 Rent paid for the factory building [Note 2] 1,00,000 - 9,000 9,000 18,000

4 Consumables procured from suppliers in Gujarat 75,000 - 6,750 6,750 13,500
[` 1,50,000 – ` 75,000] [Note 3]

5 Security services [Note 4] 70,000 Nil Nil Nil Nil
6 General insurance of cars manufactured 2,50,000 - 22,500 22,500 45,000

[Note 5]
7 Works contract services [Note 6] 1,60,000 - 14,400 14,400 28,800
8 Audit fee [Note 7] 50,000 Nil Nil Nil Nil
9 Bank charges [Note 8] 10,000 - 900 900 1,800
10 Membership of Automobile Association 10,000 - 900 900 1,800

[Note 9]
Total ITC available for the tax period 1,07,000 1,04,450 80,450 2,91,900

Computation of net GST payable:
Particulars ITC
Value of
IGST CGST SGST Total
Supply
(`) (`) (`) (`)
(`)
Intra-State sales in Gujarat 14,00,000 - 1,26,000 1,26,000 2,52,000
Inter-State sales other than Gujarat 6,00,000 1,08,000 - - 1,08,000

Exports under LUT [Note 10] 10,00,000 Nil Nil Nil Nil
Car rental income (Taxable @ 2.5% CGST and SGST 50,000 - 1,250 1,250 2,500
each) [Note 11]

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