Page 35 - Chap24Computation of GST

C He has obtained legal opinion from a local firm of advocates to enter into the contract 1,00,000

with the JV, for providing services to it.
D He has obtained accommodation from the State Government to locate his office close 2,00,000
to the sea shore.
E He gets a portion of the petroleum silt as part of the compensation while exploring the
6,00,000
petroleum reserves in the Bombay High- which as per the contract with the

Government is part of 'Cost Petroleum'.
F He sells the petroleum silt to a SEZ Developer in Mumbai 6,80,000
G Consideration is received towards transfer of tenancy rights, which according to 8,00,000
Sukhdev is not liable to GST as it has suffered stamp duty.

H On violation of the terms in production sharing agreement, Sukhdev has paid 3,00,000
liquidated damages to the Government
He has been assigned the right to collect royalty on behalf of Maharashtra -
I
Government, as 'Excess Royalty Collection Contractor'. He has noticed that the
mining lease holders have short paid 2,00,000 as IGST from what had been exempted

to him under the assignment

J He has sold self-fabricated machinery through his agent in Mumbai, that has been 10,00,000
used for 2 years, the value of which is not available in the open market. The agent sells

it immediately to an unrelated customer in Mumbai.
K Opening Balance and brought forward tax credits are as follows:
- Electronic Cash Ledger - CGST 12,000
- Electronic Credit Ledger - CGST 18,000

- Electronic Credit Ledger - SGST 12,000
- Electronic Credit Ledger - IGST 60,000

L Supply value is exclusive of taxes. Supply of services are taxable at CGST 9%, SGST
9% and IGST 18% and supply of goods are taxable at CGST 2.5%, SGST 2.5% and IGST

5%. Determine the tax payable in cash.
Provide suitable notes where required.
[CA Final Nov 19 Exam] [CA Final May 23 Exam (Similar)]
Answer:-
Computation of tax payable in cash:

S. No Particulars Amount (`) IGST (`) CGST (`) SGST (`)
A GST liability on outward supply

i) Consideration for services provided as an operating 12,00,000 1,08,000 1,08,000
member to the Joint Venture [The operating member is
providing the mining and exploration service to the joint
venture, and thus, the consideration received therefore
is not cost petroleum and hence, is liable to tax.]

ii) Compensation received in the form of petroleum silt,
which, as per the contract with the Government, is
part of cost petroleum

[Cost petroleum is not a consideration for service to 6,00,000 NIL NIL
the Government and thus, is not taxable.]

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