Page 25 - Ch_10 ITC

Repairing of bus with seating capacity of 20 passengers used to transport its employees 50,000
from their residence, being intra-state supply

Details of opening balances of ITC as on 1-4-20XX are as follows:-
CGST ` 5000
SGST ` 5000
IGST ` 40,000

Following additional information is provided:-
(a) Rate of GST in respect of all inward and outward supplies except item (ii) above is 18% i.e. CGST and
SGST @ 9% and IGST @ 18%.
(b) All figures mentioned above are exclusive of taxes.

(c) All the conditions for availing the ITC have been fulfilled except specifically given and M/s. Grey is
not eligible for any threshold exemption.
Compute the minimum net GST payable in cash by M/s. Grey for the month of April, 20XX.
[CA Inter Nov 19 Exam New(Similar), CA Inter July 21 Exam (Similar), CA Inter MTP May 22 (Similar),

RTP Nov 21 (Similar)]
Answer:-
(A) Calculation of Total Tax Liability:-
Particulars Value (`) IGST (`) CGST (`) SGST (`)

Inter-State supply of goods 1,00,000 18,000 - -
Intra-state supply of 500 packets of detergent along 2,00,000 - 28,000 28,000
with plastic basket (Note-1) (500*400) (2,00,000* (2,00,000*
14%) 14%)
Supply of online educational journal to private 50,000 - 4,500 4,500

coaching centre (Note-2) (50,000*9%)(50,000*9%)
Total Tax Liability (A) 18,000 32,500 32,500

(B) Calculation of Total Input Tax Credit (ITC):-
Particulars Value (`) IGST (`) CGST (`) SGST (`)
Brought forward ITC (Given) 40,000 5,000 5,000
Inter-State purchase of goods (Note-3) 50,000 9,000

(50,000*18%)
Repairing of bus with seating capacity of 20 50,000 - 4,500 4,500
passengers (Note-4) (50,000*9%)(50,000*9%)
Total ITC (B) 49,000 9500 9500

(C) Computation of minimum net GST payable in cash by M/s. Grey for the month of April, 20XX:-
Particulars IGST (`) CGST (`) SGST (`)
Total Tax Liability (A) above 18,000 32,500 32,500

Less:- Set off of ITC
IGST = Rs. 49,000 (18,000) (23,000) (8,000)
CGST = Rs. 9,500 - (9,500) x
SGST = Rs. 9,500 - x (9,500)

Minimum net GST payable in cash (Note-5) Nil Nil 15,000

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