Page 10 - Chap2 RCM

iv) Provided renting of motor vehicle for transportation of passengers to Amaze Tours Ltd. 75,000
and value of supply included cost of fuel
v) Provided renting of motor vehicle for transportation of passengers to Priti & Co., CA 40,000
firm and value of supply included cost of fuel
vi) Availed representational service from PB and Co., a law firm towards a Consumer Court 70,000
case
Determine the GST liability of M/s All-in-One for the month of March by giving necessary explanations for
treatment of various items. Rates of GST for both inward and outward supply is CGST/SGST@ 9% each
except renting a vehicle, for which CGST/SGST @ 2.5% each is applicable. M/s All-in-One commenced its
business from February. All the supplies are intra-State only. Ignore the provisions relating to input tax
credit. [Study Mat]
Answer: GST liability of M/s All-in-One

S. Particulars Value (`) CGST SGST
No. payable (`) payable (`)

A. GST liability on outward supply
i) Direct selling agent service to Y Bank Ltd. [Tax is 4,00,000 36,000 36,000
payable under forward charge since the supplier of such [4,00,000 x 9%] [4,00,000 x 9%]
service is a partnership firm and not an individual]
Security services to ABC P. Ltd., a registered person
ii) -
[Tax is payable under reverse charge by recipient since
security services are provided by a non-body corporate to
a registered person.]

iii) Security services to PSR Trust, an unregistered person 1,00,000 9,000 9,000
[Tax is payable under forward charge since security
[1,00,000 x 9%] [1,00,000 x 9%]
services are provided by a non-body corporate to an
unregistered person.]
iv) Renting of motor vehicle to Amaze Tours Ltd. where -
value included cost of fuel
[Tax is payable under reverse charge by recipient since
such services are provided by a non-body corporate to a
body corporate and GST is payable @ 5%.]
v) Renting of motor vehicle to Priti & Co., CA firm, where 40,000 1,000 1,000
supply value included cost of fuel [40,000 x 2.5%] [40,000 x 2.5%]
[Tax is payable under forward charge since such
services are provided by a non-body corporate to a non-
body corporate.]
Total GST liability on outward supplies 46,000 46,000

B. GST liability on inward supplies under reverse charge

vi) Availed representational service from PB and Co, a law firm 70,000 - -
[Legal services provided by a partnership firm of
advocates/individual advocate other than a senior
advocate to a business entity with an aggregate turnover
up to such amount in the preceding financial year as
makes it eligible for exemption from registration, are
exempt from GST.
Since M/s All-in-One started its business in February, its
turnover in the preceding financial year is zero making it
eligible for exemption from registration in the preceding
financial year and hence, the legal services provided to it
are exempt from GST.]

GST liability on inward supplies under reverse charge - -

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