Page 11 - Chapter 5 TOS

50% Ü Since invoice has not been issued on or before the date of 50% completion, TOS will be
earlier of date of provision of service (15.03.20YY) or date of receipt of payment

(29.03.20YY)
Ü Therefore, time of supply is 15.03.20YY
Ü Since invoice has not been issued on or before the date of 75% completion, TOS will be

75% earlier of date of provision of service (20.06.20YY) or date of receipt of payment
(23.07.20YY)
Ü Therefore, time of supply is 20.06.20YY

Ü Since invoice is issued within the prescribed time limit, TOS will be earlier of the date of
100%
issue of invoice (30.09.20YY) or date of receipt of payment (20.09.20YY)
Ü Therefore, time of supply is 20.09.20YY

Mangesh Enterprises, Goa, a registered supplier, has made the following supplies in the month of Q.10
February 20XX:
1) Supply of guest house accommodation with facilities of cooling, heating, internet and parking to
customers on daily rentals of ₹ 1,500. Mangesh Enterprises has 20 guest suites. During the month, there
was 50% occupancy. Catering and food service were supplied separately to those who opted for it at a cost
of ₹ 500 per day of occupancy.
Total amount collected for catering and food service was ₹ 70,000.
2) Supplied monthly air-conditioner maintenance services (intra-State) to a software company under a contract
effective 1st February, 20XX for six months. According to the terms of service in the contract, the software
company is liable to pay service charges of ₹ 12,000 for the entire period plus cost of spares and replacements
at actuals. Taxes are separate and payable in accordance with statute. Mangesh Enterprises is yet to raise an
invoice, though service was provided for February, 20XX.
During the month, the company has not provided any spares or replacements as part of
maintenance service. Further, the concern has not received any amount towards above services Assume
rates of GST as under :
S.no. Particulars Rate pf GST (CGST + SGST)
1. Air conditioner maintenance 18%

2. Food catering service 5%
3. Renting of guest house service 18%
4. Parking service 18%

With the help of the above information, examine each of the above supplies made by Mangesh Enterprises
for the month of February, 20XX and determine the rate and the amount of GST applicable on the supplies
made. [CA Final May 22 Exam]
Answer:- 1)Determination of rate and amount of GST:

Particulars Rate of GST GST (CGST + SGST) (₹)
Composite supply of renting of guest house 18%(Rate of principal 75,600 (37,800+37,800)[₹ 1,500 × 20
with other facilities [Renting of guest house supply) suites × 50% ×28 days × 18%]
being principal supply.]

Separate supply of catering & food services 5% 3,500 (1,750+1,750) [₹ 70,000 × 5%]

2) Ü Rate of GST applicable in the given case is 18%, i.e., the rate of GST applicable on air conditioner
maintenance service
Ü Since the given supply is a continuous supply of service where in terms of contract, due date is not
ascertainable, the time of supply of said services does not fall in February 20XX and
Ü Thus, no GST is payable for said month.

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