Bajaj & Sons has a warehouse in the state of Gujarat. The turnover is more than ₹40 lakh and Bajaj & Sons has taken GST registration from Gujarat. From the following information given below, find out GST payable

CS Professional · Advanced Tax Laws and Practice · PYQS · December 2021
Bajaj & Sons has a warehouse in the state of Gujarat. The turnover is more than ₹40 lakh and Bajaj & Sons has taken GST registration from Gujarat. From the following information given below, find out GST payable by Bajaj & Sons for the month of November 2020: Invoice No. 1002 issued to X Ltd. and value of taxable supply is ₹40,000. X Ltd. has utilised warehouse for the storage of oranges. Invoice No. 1003 issued to Y Ltd. and value of taxable supply is ₹2,45,000. Y Ltd. has utilised warehouse for the storage of manufactured goods. Invoice No. 1004 issued to Z Ltd. and value of taxable supply is ₹90,000. Z Ltd. has utilised warehouse for the storage of potato chips. Invoice No. 1005 issued to K Ltd. Bajaj & Sons has provided consultancy to K Ltd. on the maintenance of warehouse buildings. Consultancy fee is ₹1,00,000. Above figures are exclusive of GST. GST rate is 18%. Bajaj & Sons to avail input tax credit pertaining to the following: (i) Balance available in the electronic credit ledger on November 1st, 2020 is ₹28,000. (ii) Salary paid to manager ₹30,000 per month. (iii) Fees paid to an advocate on November 28, 2020 pertaining to recovery of disputed rent of ₹10,000 (advocate does not charge any GST). (iv) Air Conditioner purchased for office ₹30,000 + 28% GST (₹8,400) Assume that the conditions for claiming input tax credit [including conditions imposed by rule 36(4)] are satisfied.

Answer & Explanation:

Computation of New GST Payable for Bajaj & Sons for the month of November 2020 Sr. No. Particulars Amount (Rs.) 1. Invoice no. 1002 (oranges is an agriculture produce, GST not applicable) Nil 2. Invoice no. 1003 (18% of ₹2,45,000) 44,100 3. Invoice no. 1004 (18% of ₹90,000) (potato chips is not agriculture produce, hence GST is applicable) 16,200 4. Invoice no. 1005 (18% of ₹1,00,000) 18,000 5. Total GST on outward supply 78,300 6. Less: Input Tax Credit (ITC) 7. Balance available in the electronic credit ledger on November 1, 2020 (28,000) 8. Salary paid to manager ₹30,000 per month (No GST is Involved) Nil 9. Fees paid to an advocate on November 28, 2020 (GST on this input supply is payable by Bajaj & Sons for November 2020 under reverse charge mechanism. It will be eligible for ITC only in December 2020). Nil 10. Air Conditioner purchased for office ₹30,000 + 28% GST (₹8,400) (8,400) 11. Total GST on inward supply (ITC available) (36,400) 12. Balance (GST on outward supply - ITC available) 41,900 13. Add: GST payable on reverse charge mechanism (fee paid to an advocate is subject to reverse charge mechanism, 18% of ₹10,000) 1,800 14. Balance GST payable through electronic cash ledger 43,700

Topics: GST

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

Related Questions in this Topic