Page 4 - Ch15_Computation of GST

01. Questions

CCP 15.01.01.00
Chill Ltd., Delhi, a registered supplier, manufacturing machineries has made a taxable supply of
machinery during the month of March. It furnished the following details for each such machinery
supplied:
S.No. Particulars Amount (₹)

(i) List price of machinery (exclusive of taxes) 10,00,000
(ii) Subsidy received from the Central Government for supply of machinery to 2,10,000
Government School(exclusively related to supply of machinery included at S. No. 1)
(iii) Subsidy received from an NGO for supply of machinery to an old age home 2,00,000

(exclusively related to supply of goods included at S. No. 1)
(iv) Tax levied by Municipal Authority 2,50,000
(iv) Packing charges 1,25,000
Additional information:-
The list price of the machinery is after considering the two subsidies received. However, the other

charges/ taxes/fee are charged to the customers over and above the list price.
Further, the company has provided the following information pertaining to purchases made/services
availed by it in respect of supply of said machinery during the month of March:

S.No. Particulars Amount (₹)
1) Raw material (to be received in the month of April) 8,50,000
2) Membership of a club availed for employees working in the factory (not obligatory 4,00,000
to be provided under any law)

3) Inputs to be received in 6 lots, out of which 1st lot was received during the month 3,50,000
4) Trucks used for transport of raw material 1,50,000
5) Capital goods (out of 3 items, invoice for 2 items is missing and GST paid on those 3,50,000
items is ₹ 2,82,000)

Note:
(i) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively.
(ii) All inward and outward supplies are exclusive of taxes, wherever applicable.
(iii) All the conditions necessary for availing the ITC have been fulfilled, subject to the information
given above.

(iv) All inward and outward supplies are inter-State supplies.
Compute the net GST payable in cash, by Chill Ltd. for the month of March.
[CA Inter RTP Nov 23] [CA Inter Jan 21 Exam (Similar)]
Answer :-

1) Computation of total value of taxable supply made by Chill Ltd. during the month of March:
Particulars Amount (₹) Remark
List price of the machinery 10,00,000
Subsidy received from the Nil As per section 15(2)(e) of the CGST Act, subsidy is received

Central Government from State Government, the same is not includible in value
of supply
Subsidy received from NGO 2,00,000 As per section 15(2)(e), subsidy is received from a non-
Government body and directly linked to the price, the same

is includible in the value of supply

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