Preetam, a registered supplier of Kota (Rajasthan), has made the following supplies in the month of July, 2024 : (i) Supply of a laptop bag along with the laptop to a customer of Mumbai for ₹1,70,000 (exclusive of GST).

CS Executive · Tax Laws and Practice · PYQS · December 2024
Preetam, a registered supplier of Kota (Rajasthan), has made the following supplies in the month of July, 2024 : (i) Supply of a laptop bag along with the laptop to a customer of Mumbai for ₹1,70,000 (exclusive of GST). (ii) Supply of sweets @ ₹500 per KG in a box. Cost of each box is ₹20 per box. In order to increase his turnover Preetam did not charge the amount of box from customer. During the month of July, 2024, he sold 140 boxes of 1 KG sweet to local customers in Kota. (iii) Supply of 2,000 kits (at ₹75 each) amounting to ₹1,50,000 (exclusive of GST) to Kamal Fancy Store in Jodhpur (Rajasthan). Each kit consists of 1 hair oil, 1 beauty soap and 1 hair comb. (iv) 250 kits are given as free gift to Udaipur customers on the occasion of Preetam's wife birthday. Each kit consists of 1 hair oil and 1 beauty soap. Cost of each kit is ₹40, but the open market value of such kit of goods and of goods of like kind and quality is ₹50. Input tax credit has not been taken on the goods contained in the kit. Assume the GST Rate on Laptop is 18%, Laptop bag 28%, Sweet 5%. Empty Box 18%, Hair Oil 18%, Beauty soap 28%, Hair comb 12%. From the above information, compute the GST liability (CGST or SGST or IGST) of Preetam for the month of July, 2024.

Answer & Explanation:

Computation of GST liability of Preetam for the month of July, 2024 Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) (i) Supply of laptop bag along with laptop: [Supply of laptop bag along with the laptop is a composite supply, Tax Rate is taken on principal supply of goods. i.e. Laptop and IGST @ 18% 1,70,000 30,600 (ii) Supply of sweet along with box: [Price of box is not charge separately from customer; hence Tax Rate is taken on principal supply i.e. sweet and CGST and SGST @ 2.5% each will be charged] (₹500 x 140 x 2.5%) 70,000 1,750 1,750 (iii) Supply of kits of hair oil, beauty soap and hair comb: [It is a mixed supply; Rate of GST is taken on supply of that particular supply which attracts highest tax rate. It's an intra-state supply. Accordingly, CGST and SGST @ 14% each will be charged.] 1,50,000 21,000 21,000 (iv) Free gifts to customers cannot be considered as supply under section 7 read with Schedule I of the CGST Act as the gifts are given to unrelated customers without consideration and ITC has not been taken] Nil Total GST Liability for the Month of July, 2024 22,750 22,750 30,600

Topics: GST

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic