Page 23 - Ch_10 ITC

Notes:
1) ITC shall not be availed, if the invoice is not reported by supplier in his GSTR-1 & also not reflected in GSTR-

2B of recipient u/s 16(2)(aa) read with Rule 36(4).
2) ITC on goods destroyed (i.e. 10% of the goods) is blocked u/s 17(5)(h) of the CGST Act, 2017.
3) As per section 17(5)(c), ITC on works contract services availed for construction of plant and machinery is
allowed but pipelines laid outside the factory premises are excluded from the definition of plant and

machinery and hence, ITC thereon is blocked.
4) ITC on motor vehicles used for transportation of goods is not blocked u/s 17(5) & hence, ITC is also allowed
on insurance services relating to such motor vehicles on which ITC is allowed.

(B) Computation of minimum net GST payable in cash for the month of January, 20XX:-
Particulars Value (`) IGST (`) CGST (`) SGST (`)
Inter-State supply of goods 85,00,000 15,30,000 - -
Intra-State supply of goods 15,00,000 - 1,35,000 1,35,000

Total output tax payable 15,30,000 1,35,000 1,35,000
Less: Set off of CGST and SGST credit against CGST - (1,00,000) (1,00,000)
and SGST liability respectively

Minimum net GST payable in cash 15,30,000 35,000 35,000

CCP 10.08.31.00
M/s ABC & CO., a Chartered Accountancy Firm having office in Bengaluru registered under GST in the
state of Karnataka, submitted the following information for the month of April 20XX:-

S.No. Services provided Amount excluding GST (₹)
(1) Statutory audit services provided (intra-state supplies) 1,20,000
(2) ITR filing services provided within Karnataka (intra-state supplies) 1,60,000
(3) Internal Audit services provided to Mumbai client (inter-state supplies) 1,80,000

ABC & Co. had incurred the following expenses in the month of April, 20XX for the purpose of providing
the taxable services:-
S.No. Services provided

(1) Car purchased by firm for the use of senior partner of 7,84,000 (CGST ₹42,000 & SGST
the firm for office use ₹ 42,000)
(2) Office rent paid to landlord who is registered in State of 5,900 (CGST ₹450 & SGST ₹450)
Karnataka

(3) Professional fee paid to Mr. Rajesh, a practicing 2,36,000 (CGST ₹18,000 & SGST
Chartered Accountant, for professional services availed ₹18,000) TDS deducted ₹20,000 u/s
194J of the Income Tax Act, 1961
(4) Computer purchased for office purpose 56,000 (CGST₹3,000 & SGST ₹3,000)
Out of the above 4 suppliers/service providers, landlord of office to whom rent was paid has not
uploaded his GSTR-1 within the specified time allowed under GST resulting in GST amount not

reflecting in GSTR-2B of ABC & Co.
Compute the net GST payable (CGST, SGST and IGST after adjustment of ITC) by ABC & Co. for the
month of April, 20XX. Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively assuming that

all the remaining conditions of utilisation of ITC are fulfilled. [CA Inter MTP Apr 23] [CA IPC Dec 21
Exam]
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