M/s Khatri Electronics Pvt. Ltd. a registered supplier in Bengaluru, Karnataka provides the following information relating to the Inward and Outward supply made during the month of August, 2025: Outward Supplies S. No. P

CS Executive · Tax Laws and Practice · PYQS · June 2026
M/s Khatri Electronics Pvt. Ltd. a registered supplier in Bengaluru, Karnataka provides the following information relating to the Inward and Outward supply made during the month of August, 2025: Outward Supplies S. No. Particulars 1. Advance received ₹2,00,000 from Anurag of Karnataka for business support services to be supplied in the month of September, 2025. 2. Supplied Refrigerators worth ₹15,00,000 to a dealer in Kerala. It includes freight of ₹50,000 incurred by Khatri Electronics Pvt. Ltd. as per the terms of supply. 3. Provided commissioning services worth ₹4,00,000 under Pure labor contract to M/s Blue Wings of Surat, Gujrat for Multi-storey residential complex. 4. Supplied a latest technology laptop with touch screen option to Managing Director's friend for a consideration of ₹70,000 (open market value) as well as sale to unknown customers was at ₹1,25,000. 5. Provided a 5% cash discount for early payment on intra-state supply worth ₹2,00,000 (18% GST). Discount was pre-agreed and noted in the invoice. Inward Supplies S. No. Particulars 1. Raw materials from a local supplier: ₹6,00,000 @ 5%. 2. Bought a SUV motor vehicle for official use: ₹10,00,000 + 18% IGST. 3. Purchased goods from Agarwal & Co., a registered composition dealer in the state of Karnataka worth ₹5,00,000. 4. Purchased Industrial HVAC system (Capital Goods) from a registered dealer of Mumbai: ₹8,00,000 + 18% IGST. 5. Payment of ₹50,000 made to M/s ABC Caterers of Bengaluru for providing daily breakfast and lunch to the employees of the company, as voluntary staff welfare measure. GST Rate is applicable @ 5% on it. Balance available in electronic credit ledger of M/s Khatri Electronics Pvt. Ltd. at the beginning of August, 2025 are: Amount (₹) CGST 50,000 SGST 45,000 IGST 20,000 Additional Information: (i) M/s Khatri Electronics Pvt. Ltd. regularly filed its monthly GST Return on time. But Annual Return under GST for the financial year 2024-25 was filed on 31st March, 2026. The turnover of M/s Khatri Electronics Pvt. Ltd. during the financial year 2024-25 was ₹6 crore. (ii) Both the outward and inward supplies given above are exclusive of GST unless stated otherwise. (iii) Rate of CGST, SGST and IGST is to be charged 9%, 9% and 18% respectively where no specific rate is provided. (iv) All conditions necessary for availing the ITC have been fulfilled except mentioned above. Based on the above information, you are required to compute the value of Output Tax Liability under GST for M/s Khatri Electronics Pvt. Ltd. for the month of August, 2025.

Answer & Explanation:

Computation of Output Tax Liability of M/s Khatri Electronics Pvt. Ltd. for the month of August, 2025 Particulars Value (₹) IGST (₹) CGST (₹) SGST (₹) Advance received from Anurag for business support services [Tax is payable at the time of receipt of advance for supply of services] 2,00,000 - 18,000 [2,00,000 × 9%] 18,000 [2,00,000 × 9%] Supplied Refrigerators along with freight [Freight charges are included in value of supply] 15,00,000 2,70,000 [15,00,000 × 18%] - - Provided commissioning services under Pure labour contract. [Recipient is located in the state of Gujarat. The immovable property in respect of which the labour services have been provided is also located in Gujarat. Applying the provisions, the place of supply falls in Gujarat. So, IGST is chargeable]. 4,00,000 72,000 [4,00,000 × 18%] - - Supply of laptop to Managing Director's Friend [Since supply is made to Managing Director's friend and price is the sole consideration; value of supply is the transaction value i.e. the price actually paid or payable for the said supply]. [Considered within the State] 70,000 - 6,300 [70,000 × 9%] 6,300 [70,000 × 9%] Supply to unknown customers [Considered within the State] 1,25,000 - 11,250 [1,25,000*9%] 11,250 [1,25,000*9%] Less: 5% cash discount for early payment (₹2,00,000 x 5% = ₹10,000) (10,000) - (900) (900) Total Output Tax Liability 3,42,000 34,650 34,650 Note: It is assumed that the supply made to Managing Director's friend and sale to unknown customer are within the state. It is assumed that the Intrastate supply worth ₹ 2,00,000 on which 5% discount provided is already covered under intra state supply and not separate transaction and output GST liability has been calculated accordingly.

Topics: GST

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