Page 24 - Chap7 ITC

Less : ITC on freight paid to GTA for inward transportation of taxable goods 3,750 3,750

Common credit 27,600 27,600

(3) Computation of ITC attributable towards exempt supplies out of common credit
ITC attributable towards exempt supplies = Common credit x (Aggregate value of exempt supplies during the tax
period/ Total turnover during the tax period)[Section 17 read with rule 42].
Particulars CGST(₹) SGST(₹)
ITC attributable towards exempt supplies [₹27,600 x (₹10,00,000/₹60,00,000)] 4,600 4,600

(4) Computation of net GST liability for the month of April, 20XX

Particulars CGST(₹) SGST(₹)
GST liability under forward charge

Supply of taxable goods [₹50,00,000 x 6%] 3,00,000 3,00,000
Less: ITC available in electronic ledger :- 2,96,750 2,96,750
ITC credited to the electronic credit ledger ₹ 3,01,350 (CGST & SGST each)
Less: Reversal of ITC (₹ 4,600)(CGST & SGST each)
Net GST payable [A] 3,250 3,250
GST liability under reverse charge

Freight paid to GTA for inward transportation of taxable goods [₹1,50,000 x 2.5%] 3,750 3,750

Freight paid to GTA for inward transportation of non-taxable goods [₹50,000 x 2.5%] 1,250 1,250
Total tax liability under reverse charge [B] 5,000 5,000

Net GST liability [A] + [B] 8,250 8,250
Note: Amount available in the electronic credit ledger may be used for making payment towards output tax
[Section 49]. However, tax payable under reverse charge is not an output tax in terms of definition of output
tax provided under section 2(82). Therefore, tax payable under reverse charge cannot be set off against the
input tax credit and thus, will have to be paid in cash.

Q.22
‘All-in-One Store' is a chain of departmental store having presence in almost all metro cities across
India. Both exempted as well as taxable goods are sold in such Stores.
The Stores operate in rented properties. All-in-One Stores pay GST under regular scheme.
In Mumbai, the Store operates in a rented complex, a part of which is used by the owner of the Store for
personal residential purpose.
All-in-One Store, Mumbai furnishes following details for the month of October, 20XX:

(i) Aggregate value of various items sold in the Store:
Taxable items - ₹ 42,00,000
Items exempted vide a notification- ₹ 12,00,000
Items not leviable to GST- ₹ 3,00,000
(ii) Mumbai Store transfers to another All-in-One Store located in Goa certain taxable items for the
purpose of distributing the same as free samples. The value declared in the invoice for such items is
₹5,00,000. Such items are sold in the Mumbai Store at ₹8,00,000.
(iii) Aggregate value of various items procured for being sold in the Store:
Taxable items- ₹ 55,00,000
Items exempted vide a notification - ₹ 15,00,000

Items not leviable to GST- ₹ 5,00,000
(iv) Freight paid to goods transport agency (GTA) for inward transportation of taxable items- ₹ 1,00,000
(v) Freight paid to GTA for inward transportation of exempted items- ₹ 80,000

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