Page 17 - Ch15_Computation of GST

Repairing of lorry used to transport 1,00,000 Intra-State supply of 500 combo packs 4,00,000
goods from warehouse to clients' containing one calculator and one diary
location [Intra-State supply]

Intra-State supply of services of business 1,00,000
correspondent to Shubhvidhi Bank with

respect to accounts in its urban area branch
The following additional information is provided by 'XY' in relation to the above receipts and payments:-
(i) 10% of the inter-State supply of office stationery are made to unregistered persons.
(ii) Each combo pack (containing a calculator and a diary) is priced at ` 800. The calculator and the diary

are individually priced at ` 700 and ` 200 respectively.
(iii) An invoice of ` 40,000 towards purchase of office stationery is missing and no other tax paying
document is available in respect of such goods.
(iv) All the figures mentioned above are exclusive of taxes, wherever applicable.
(v) Rates of CGST, SGST and IGST for all services, office stationery and calculator are 9%, 9% and 18%

respectively. Rates of CGST, SGST and IGST for diary are 14%, 14% and 28% respectively.
(vi) Subject to the information given above, all the necessary conditions for availing input tax credit have
been fulfilled. Details of opening balances of input tax credit as on 1st July is given here under:

Tax Amounts(`)

CGST 5,000
SGST 5,000
IGST 80,000
Compute the minimum net GST [CGST, SGST or IGST, as the case may be] payable in cash by 'XY' for
the month of July. [CA Inter RTP Nov 2020]

Answer:-
Computation of minimum net GST payable in cash by 'XY' for the month of July:-
Particulars Value (`) IGST (`) CGST (`) SGST (`)
(I) Calculation of Total tax liability:-

Inter -State supply of office stationery [Note 1] 2,00,000 36,000 - -
(2,00,000X18%)

Intra-State supply of 500 combo pack of calculators and 4,00,000 - 56,000 56,000
diaries [Note 2] (500 X (4,00,000 (4,00,000
800) X 14%) X 14%)
Intra-State supply of services of business correspondent 1,00,000 - 9,000 9,000
to Shubhvidhi Bank with respect to accounts in its (1,00,000 (1,00,000

urban area branch (Note 3) X 9%) X 9%)
Total tax liability 36,000 65,000 65,000
(ii) Calculation of total Input Tax Credit (ITC):
Brought forward ITC [Given] 80,000 5,000 5,000

Inter-State purchase of office stationery [Note 4] 1,00,000 18,000
(1,00,000X
18%)

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