Page 20 - Ch15_Computation of GST

Working Note:
Computation of ITC available:

Particulars IGST (`) CGST (`) SGST (`)
Intra-State inward supply of services [Note 5] - 45,000 45,000
[₹ 6,50,000 – ₹ 1,50,000] (5,00,000 (5,00,000
*9%) *9%)

Cars taken on rental basis from Mr. Mukesh [Note 6] - - -
Total output tax - 45,000 45,000

Notes:-
1) Value of supply is the transaction value of the goods.
2) Not exempt since the State Government has borne less than 75% of total expenditure of the training
programme.
3) Supply of goods between distinct persons in course or furtherance of business qualifies as supply
even if made without consideration.

4) Ü CGST credit should be utilized for payment of CGST & IGST in that order. Similarly, SGST
credit should be utilized for payment of SGST & IGST in that order.
Ü ITC of CGST cannot be utilized for payment of SGST & vice versa.

5) ITC cannot be claimed on the e-invoices without IRN since an e-invoice without IRN is not treated as
valid document for claiming ITC.
6) Ü Tax on renting of motor car services wherein cost of fuel is included in consideration provided
by a non-body corporate to a body corporate and invoice is issued charging CGST/SGST @
2.5% is payable under reverse charge.

Ü Time of supply of such services is 1st February being earlier of date of payment, or date
immediately following 60 days since issue of invoice by the supplier.
Ü Since the time of supply of renting of motor car services in the given case does not fall in
January, tax liability on the same does not arise in said month.

Ü Further, ITC on renting of motor car services received is blocked since the recipient (Ajay Ltd.)
is not in the same line of business.

Assumption:

Ü It has been most logically assumed that Ajay Ltd. is not engaged renting of cars business.

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