Page 13 - Chap1 Charge of Tax & Concept of Supply

Sr.No Particulars `

A Truck sent to own location in Tamil Nadu
Ø value of items contained in the truck - `3,00,000
Ø value of truck -`25,00,000
B Truck sent to a client location in tamil Nadu for carrying out repairs. Standalone machine is
also sent in the truck to client location for repairs
value of items contained in the truck- `2,85,000
Value of stand-alone machine - `4,00,000
Value of truck -`20,00,000
(Billing for repairs to be done afterwards depending upon the actual items used)

C Truck sent to a client in Karnataka for carrying out repairs
Value of items contained in the truck - `1,06,000
Value of truck -`20, 00, 000
(Billing for repairs to be done afterwards depending upon the actual items used)
D Invoices raised for repair work carried out in Tamil nadu (Including the invoice for repair 70,00,000
work done in 'B')

Invoices raised for repair work carried out in karnataka (Including the invoice for repair 12,00,000
E
work done in 'C')
All the given amount are exclusive of GST wherever applicable. Assume the rates of taxes to be as under:

Items used for repairs
CGST - 6% SGST - 6% IGST - 12%
Container truck, stand - alone machines
CGST - 2.5% SGST - 2.5% IGST - 5%
Works contract for repairs and maintenance of immovable property
CGST - 9% SGST - 9% IGST - 18%

You are required to make suitable assumptions, wherever necessary. (CA Final RTP May 2018)
Answer: Computation of GST Liability of power Engineering Pvt. Ltd., Bangalore for the month of
November 20XX
Sr.No Particulars `

A Items sent in container truck to own location in Tamil Nadu - IGST @ 12% [Note 1] 36,000
Container truck sent to own location in Tamil Nadu [Note 2] -

B Stand - alone machine sent in container truck to client location in Tamil Nadu, for carrying -
out repair [Note 3]
Container truck sent to client location in TamilNadu [Note 3] -
Items sent in container truck to client location in Tamil Nadu, for carrying out repairs [Note 4] -

Container truck sent to client location in Karnataka [Note 3] -
C
Items sent in container truck to client location in Karnataka, for carrying out repairs [Note 4] -
Invoices raised for repair work carried out in Tamil Nadu : IGST @ 18% [Note 5 and note 6]
D 12,60,000
E Invoice raised for repair work carried out in karnataka : CGST 9% + SGST 9% [Note 5 and 2,16,000
Note 7]
Total GST liability 15,12,000
Notes:
1) As per section 25(4) read with schedule I of CGST Act, 2017, movement of goods without any consideration to
a 'distinct person' is deemed to be a supply. As per rule 28 of CGST Rules, 2017, the purchase value will be taken
as taxable value, being the open market value.
In the given case-

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