Samrat Pvt. Ltd. is a paper manufacturing company having a GST registration from Jaipur (Rajasthan). Its manufacturing unit is situated in Ahmedabad. It gives the following information pertaining to April 2024 : Inter-St

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · June 2025
Samrat Pvt. Ltd. is a paper manufacturing company having a GST registration from Jaipur (Rajasthan). Its manufacturing unit is situated in Ahmedabad. It gives the following information pertaining to April 2024 : Inter-State supply of paper manufactured by Samrat Pvt. Ltd. (invoice value: ₹40,00,000). Intra-State supply of paper manufactured by Samrat Pvt. Ltd. (invoice value: ₹10,00,000). Rent of agricultural land let out to ITC Ltd. (it is used for agriculture purposes by ITC Ltd., rent of April 2024 being ₹11,00,000). Rent of commercial property located near Uttar Pradesh let out to RK Mall (rent of April being ₹6,00,000). Stock transfer without consideration to its branch at Kota (Rajasthan), Branch has separate GSTIN for conveyance of accounting and billing. Value under section 15 is ₹20,000 (Intra-State). The above figures are exclusive of GST @ 18%. Besides, Company gives the following information : A computer was purchased from a local supplier for ₹3,20,000 + GST rate: 18% on 1st September, 2023 for office purposes Full input tax credit was taken in September 2023. However, on 18th April, 2024 it is gifted by Samrat Pvt. Ltd. to Suresh, he is a friend of managing director of Samrat Pvt. Ltd. (assume useful life of computer is 60 months). Advance rent of ₹6,00,000 pertaining to commercial property for May 2024 is received on 29th April, 2024 (GST is not received separately, it will be paid by the tenant only during May 2024). On 25th April, 2024, Samrat Pvt. Ltd. pays advance consultancy fee to a consultant of ₹1,00,000. The consultant will provide his service only during July 2024. Invoice will be issued after completion of job. Balance available in electronic credit ledger on 1st April, 2024 : ₹11,000 (CGST), ₹8,01,000 (SGST) and ₹2,91,000 (IGST). Purchase of inputs during April 2024 from different parties in Andhra Pradesh (invoice value: ₹1,00,000+ GST: 5%). Purchase of inputs during April 2024 from different parties in Jaipur (invoice value: ₹80,000 + GST: 12%). Assume that conditions for claiming input tax credit (including conditions imposed by rule 36(4) are satisfied. On the basis of above case study in the context of CGST Act, 2017, you are required to: (i) Calculate the total GST on outward supply for the month of April, 2024.

Answer & Explanation:

Computation of GST on Outward supply for the month of April, 2024 Particulars IGST (₹) CGST (₹) SGST (₹) Inter-State supply of Goods (18% of ₹40,00,000) 7,20,000 - - Intra-State supply of Goods (9% of ₹10,00,000, 9% of ₹10,00,000) - 90,000 90,000 Rent of Agricultural land (exempt from GST) as per S. No. 54(e) of Notification No. 12/2017-CT(Rate) - - - Rent of commercial property situated in Uttar Pradesh (18% of ₹6,00,000) 1,08,000 - - Advance rent of commercial property (₹6,00,000 x 18/118) 91,525 - - Intra-State stock transfer to Kota Branch with separate registration (Supply of goods between distinct persons in course of furtherance of business qualifies as supply even if made without consideration.) (9% of ₹20,000, 9% of ₹20,000) - 1,800 1,800 Reversal of input credit pertaining to computer gifted to a friend [period of use from 1st September, 2023 to April 17, 2024: 7 months and 17 days, remaining useful life out of fixed life of 60 months: 52 months and 13 days, input tax credit availed: ₹57,600 (being 18% of ₹3,20,000), reversal required: ₹57,600 x 52/60 which comes to ₹49,920, 50% is CGST and 50% is SGST] - 24,960 24,960 GST on Outward Supply 9,19,525 1,16,760 1,16,760

Topics: Goods and Services Tax (GST)

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