Page 15 - Ch15_Computation of GST

(vii) Inter-State security services provided to ABC higher secondary school for their annual day function 15,000
organised in Fintex Auditorium outside the School campus

(viii) Inputs to be received in 4 lots, out of which 2nd lot was received during the month 40,000
The company has following ITCs with it at the beginning of the tax period:
Particulars Amount (`)
CGST 57,000
SGST Nil
IGST 50,000

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

(ii) Both inward and outward supplies are exclusive of taxes, wherever applicable.
(iii) All the conditions necessary for availing the ITC have been fulfilled.
(iv) The turnover of Neelkanth Pvt. Ltd. was ₹ 2.5 crore in the previous financial year.
Compute the minimum GST, payable in cash, by Neelkanth Pvt. Ltd. for the month of February. Make
suitable assumptions as required [CA Inter RTP Nov 22]

Answer:-
1) Computation of GST Payable on outward supplies:
Particulars Value IGST @ CGST @ SGST @

18% 9% 9%
Intra-State supply of goods (Note-1) 4,00,000 - 36,000 36,000
Services rendered by way of labour contracts for repairing a 18,000 - 9,000 9,000
single residential unit otherwise than as a part of residential
complex (Note-2)

Services provided by way of training in recreational activities 10,000 1,800 -
relating to sports (Note-3)

Inter-State security services provided to ABC higher secondary 15,000 2,700 -
school for their annual day function held in Fintex Auditorium
(Note-4)
Total GST payable 4,500 45,000 45,000

2) Computation of Total ITC
Particulars IGST ` 18% CGST ` 9% SGST ` 9%
Opening ITC (Given) 50,000 57,000 -
Add: Purchase of goods from a composition dealer (Note-5) - - -

Add: Membership of a club (Note-6) -
- -
Add: Goods transport services received from GTA (Note-7) 24,000 - -
Add: Inputs to be received in 4 lots, out of which 2nd lot was - - -
received during the month (Note-8)
Total ITC 74,000 57,000 -

3) Computation of minimum GST payable:
Particulars IGST ` 18% CGST ` 9% SGST ` 9%
Total Output tax liability 4,500 45,000 45,000

Less: Input tax Credit [Note-9] - -
CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 277