Page 22 - Ch_10 ITC

Note:-
Services by RWA to its members for sourcing of goods or services from a third

person for common use of its members in a housing society are exempt, if the share of contribution per
month per member is upto ₹ 7,500. Otherwise, entire amount is taxable. Thus, maintenance charges are
taxable in this case.

CCP 10.08.30.00
KNK Ltd., a registered supplier of Mumbai, is a manufacturer of heavy machines. Its outward supplies

(exclusive of GST) for the month of January, 20XX are as follows:-
S.No. Particulars Amount (`)
(i) Inter-State 85,00,000
(ii) Intra-State 15,00,000
Applicable rate of CGST, SGST and IGST on outward supply are 9%, 9% & 18% respectively. Details of

GST paid on inward supplies during the month of January, 20XX are as follows:-
S.No. Particulars CGST (`) SGST (`)
1 Raw material A(of which, 70% of inputs procured were used and 30% were 60,000 60,000
in stock at the end of the January, 20XX)

2 Raw material B(of which, 90% material received in factory and remaining 50,000 50,000
material completely damaged due to a road accident on the way to factory.
There was no negligence on the part of the KNK Ltd.)
3 Construction of pipelines laid outside the factory premises 30,000 30,000

4 Insurance charges paid for trucks used for transportation of goods 55,000 55,000
Additional Information:
(i) There is no opening balance of any input tax credit and all the conditions necessary for availing the
input tax credit (ITC) have been fulfilled.

(ii) Details of GST paid on inward supplies are available in GSTR-2A except for item (i) i.e. Raw
Material A, for which supplier has not filed its GSTR-1 for the month of January 20XX, hence
corresponding input tax credit (ITC) is not reflecting in GSTR-2A of KNK Ltd. in January, 20XX.
Compute the following:-
(A) Amount of eligible input tax credit (ITC) available for the month of January, 20XX.

(B) Minimum net GST payable in cash, for the month of January, 20XX after using available input tax
credit.
Working notes should form part of your answer. [CA Inter Nov 20 Exam]

Answer:-
(A) Computation of eligible ITC available for the month of January, 20XX:-
S.No. Particulars CGST (`) SGST (`)
i Raw materials A [Note-1] Nil Nil

ii Raw materials B (90%) [Note-2] 45,000 45,000
iii Construction of pipelines laid outside the factory premises [Note-3] Nil Nil
iv Insurance charges paid for trucks used for transportation of goods [Note-4]55,000 55,000
Total eligible ITC 1,00,000 1,00,000

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