Rama Private Limited, Mumbai, a registered supplier, manufactures taxable goods. It provides the following details of taxable inter-State supply made by it during the month of March 2023: S. No. Particulars Amount (₹) (i

CS Executive · Tax Laws and Practice · PYQS · December 2023
Rama Private Limited, Mumbai, a registered supplier, manufactures taxable goods. It provides the following details of taxable inter-State supply made by it during the month of March 2023: S. No. Particulars Amount (₹) (i) List price of taxable goods supplied inter-State (exclusive of taxes) 20,00,000 (ii) Subsidy received from the Central Government for supply of taxable goods to government School {exclusively related to supply of goods included at S.No. (i)} 3,50,000 (iii) Tax levied by Municipal Authority 20,000 (iv) Special packing at the request of customer to be charged to the customer 15,000 (v) Late fee paid by the recipient of supply for delayed payment of consideration (Recipient has agreed to pay ₹6,000 (plus GST @ 18%) in Lump Sum and no additional is payable by him over and above such amount) 7,080 The list price of the goods is net of the subsidies received. However, the other charges/taxes/fee are charged to the customers over and above the list price. Rama Private Limited offers 3% discount on the list price of the goods which is separately shown in the invoice for the goods. Calculate the total value of taxable supplies made by Rama Private Limited during the month of March, 2023 and assume the rate of IGST is 18%.

Answer & Explanation:

Computation of total value of Taxable Supplies made by Rama Private Ltd. during the month of March 2023 Particulars Amount (₹) List Price of the Goods 20,00,000 Subsidy amounting to ₹3,50,000 received from the Central Government NIL [Since the subsidy is received from the Government, the same is not includible in the value in terms of Section 15(2)(e) of the Central Goods and Services Tax Act, 2017] Tax levied by the Municipal Authority 20,000 [Includible in the value as per Section 15(2)(a) of the Central Goods and Services Tax Act, 2017]. Packing charges 15,000 [Being incidental expenses, the same are includible in the value as per section 15(2)(c) of the Central Goods and Services Tax Act, 2017] Late fees paid by recipient of supply for delayed payment (₹7,080 x 100/118) 6,000 [Includible in the value as per Section 15(2)(d) of the Central Goods and Services Tax Act, 2017] Total 20,41,000 Less: Discount offered = 3% of List Price (₹20,00,000 x 3%) (60,000) [Since discount is known at the time of supply, it is deductible from the value in terms of Section 15(3)(a) of the Central Goods and Services Tax Act, 2017.] Total Value of Taxable Supplies 19,81,000

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