Page 30 - Ch_10 ITC

Note:
1) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.

2) All inward and outward supplies are exclusive of taxes, wherever applicable.
3) All the conditions necessary for availing the ITC have been fulfilled.
4) The turnover of Mr. Prithviraj was ₹ 2.5 crore in the previous financial year.
Compute the net GST payable in cash, by Mr. Prithviraj for the month of February. [CA Inter RTP

May 23]
Answer:
1) Computation of GST payable:
Particulars Value IGST @ CGST @ SGST @

(`) 18% (`) 9% (`) 9% (`)
GST payable under Forward Charge
Carnatic music performance given to promote a brand of 1,40,000 Nil 12,600 12,600
readymade garments (Note 1)

Services of transportation of students provided to Subhaskar
1,00,000 Nil 9,000 9,000
College (Note 2)
Services provided to Wealth Bank as a business 2,00,000 Nil 18,000 18,000
correspondent (Note 3)

Services provided as a recovery agent (Note 4) 15,000 Nil 1,350 1,350
Total GST payable under forward charge (A) Nil 40,950 40,950
GST payable under Reverse Charge
Legal services availed from an advocate (Note 5) 1,75,000 31,500 Nil Nil

Total GST payable under reverse charge (B) 31,500 Nil Nil
Total GST Payable [A+B] 31,500 40,950 40,950

2) Computation of total ITC available:

Particulars Value IGST @ CGST @ SGST @
(`) 18% (`) 9% (`) 9% (`)
Nil
Outdoor catering services availed (Note 6) 50,000 Nil Nil
Legal services availed (Note 7) 1,75,000 31,500 Nil Nil

General insurance taken on a car (seating capacity 5) used 40,000 Nil Nil Nil
for official purposes (Note 8)
Total ITC available 31,500 Nil Nil

3) Computation of net GST payable in cash:
Particulars IGST @ CGST @ SGST @
18% (`) 9% (`) 9% (`)
GST payable under forward charge Nil 40,950 40,950
Less: ITC of IGST (Note 9) - (15,750) (15,750)

Nil 25,200 25,200
Add: GST payable under reverse charge in cash (Note 10) 31,500 Nil Nil
Net GST payable in cash 31,500 25,200 25,200

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