Page 24 - Ch_10 ITC

Answer:-
Computation of net GST payable by ABC & Co. for the month of April, 20XX:-

Particulars Value (`) IGST (`) CGST (`) SGST (`)
Statutory audit services 1,20,000 - 10,800 10,800
ITR filing services 1,60,000 - 14,400 14,400
Internal audit services 1,80,000 32,400 - -

Total output tax liability 32,400 25,200 25,200
Less: ITC of [Refer Working Note] - (21,000) (21,000)
CGST = ₹ 21000
SGST = ₹ 21000
[CGST credit is set off against CGST liability & SGST credit is set

off against SGST liability since CGST credit cannot be utilized
towards payment of SGST liability and vice versa.]
Net GST Payable 32,400 4,200 4,200

Working Note:-
Computation of ITC that can be availed by ABC & Co. for the month of April, 20XX:-

Particulars Reason CGST (`) SGST (`)
Car purchased for As per section 17(5)(a) of CGST Act, ITC on motor vehicles used Nil Nil
official use by senior for transportation of persons with seating capacity upto 13
partner persons (including driver) is blocked except when used for
making specified outward supplies.
Office rent paid to ITC is ineligible u/s 16(2)(aa) read with rule 36(4), since Nil Nil

landlord supplier has not uploaded details of this supply in his GSTR-1.
Professional fee ITC on services used in the course or furtherance of the business 18,000 18,000
paid is allowed.

Computer for office ITC on goods used in the course or furtherance of the business 3,000 3,000
purpose is allowed.
ITC that can be availed 21,000 21,000

CCP 10.08.32.00
M/s. Grey, a registered taxable person under regular scheme provides following information in respect
of supplies, during the month of April, 20XX:-
Particulars Amount (`)

Inter-state supply of goods 1,00,000
Intra-state supply of 500 packets of detergent @ ₹ 400 each along with a plastic bucket 2,00,000
worth ₹ 100 each with each packet, being a mixed supply. (Rate of GST on detergent is
18% and on plastic bucket is 28%)

Supply of online educational journals to M/s. Pinnacle, a private coaching centre 50,000
providing tuitions to students of Class X-XII, being intra-state supply
M/s. Grey has also received the following inward supplies:-
Inter-state supply of goods (out of which, invoice for goods worth ₹ 20,000 is missing 70,000
and no other tax paying documentis available)

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