ANC & Co, a partnership firm having showroom in Chennai is a registered supplier under the regular scheme as per GST Laws. Total value of supplies made by them in the year ended on 31st March, 2019 was ₹ 36 lakhs. De

CS Professional · Advanced Tax Laws and Practice · PYQS · December 2020
ANC & Co, a partnership firm having showroom in Chennai is a registered supplier under the regular scheme as per GST Laws. Total value of supplies made by them in the year ended on 31st March, 2019 was ₹ 36 lakhs. Details of transactions entered into by them during the period 01-04-2019 to 30-09-2019 being extracted from the books are given as under: Particulars of Transactions Amount (₹) Intra-State supplies of product "Hot" 25,00,000 Intra-State supplies of product "Cold" (GST payable by the recipient under reverse charge) 4,00,000 Export of product "Hot" 11,00,000 Common inputs used in for all the above three supplies 25,00,000 Amounts given above are excluding the amount of GST wherever applicable. Rate of GST on all the supplies/export and on the inputs be taken at 12%. Determine the amount of net GST liability of ANC & Co for the half year period ended on 30-09-2019.

Answer & Explanation:

Computation of GST Liability of ANC & Co. for the period 01-04-2019 to 30-09-2019 Particulars Amount (₹) GST on outward supply (Note - 1) 4,32,000 Total GST liability 4,32,000 Less: ITC as being available (Note - 2) 2,70,000 Balance GST liability 1,62,000 Note 1: Computation of GST on outward supply Particulars Value (₹) GST @ 12% (₹) Intra-State supplies of product "Hot" 25,00,000 3,00,000 Add: Intra-State supplies of product "Cold" (GST payable by the recipient under reverse charge) 4,00,000 Nil Add: Export of product "Hot" [assuming the export is made on payment of IGST] 11,00,000 1,32,000 Total 40,00,000 4,32,000 Note 2: Computation of ITC Particulars Amount (₹) GST on inward supply (25,00,000 × 12%) 3,00,000 Total ITC as per Electronic Credit Ledger 3,00,000 Less: Credit for common inputs relating to the supply of 'cold' where RCM is applied [Exempt turnover: 4,00,000; total turnover ₹ 40,00,000 being 3,00,000 × 4/40] 30,000 ITC available (Assumed that all necessary conditions are complied with) 2,70,000 Alternate Answer 3(e) Computation of GST Liability of ANC & Co. for the period 01-04-2019 to 30-09-2019 Particulars Amount (₹) GST on outward supply (Note - 1) 3,00,000 Total GST liability 3,00,000 Less: ITC as being available (Note - 2) 2,70,000 Balance GST liability 30,000 Note 1: Computation of GST on outward supply Particulars Value (₹) GST @ 12% (₹) Intra-State supplies of product "Hot" 25,00,000 3,00,000 Add: Intra-State supplies of product "Cold" (GST payable by the recipient under reverse charge) 4,00,000 Nil Add: Export of product "Hot" [Zero Rated] 11,00,000 Nil Total 40,00,000 3,00,000 Note 2: Computation of ITC Particulars Amount (₹) GST on inward supply (25,00,000 x 12%) 3,00,000 Total ITC as per Electronic Credit Ledger 3,00,000 Less: Credit for common inputs relating to the supply of 'cold' where RCM is applied [Exempt turnover: 4,00,000; total turnover ₹ 40,00,000 being 3,00,000 x 4/40] 30,000 ITC available (Assumed that all necessary conditions are complied with) 2,70,000

Topics: Goods and Services Tax (GST)

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