PQR Ltd., of Mumbai having its business activities spread over different places/ locations in India provides the following particulars/details of its GST liabilities for the quarter ended on 30th Sept., 2018: (The balanc
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
PQR Ltd., of Mumbai having its business activities spread over different places/ locations in India provides the following particulars/details of its GST liabilities for the quarter ended on 30th Sept., 2018: (The balance in Electronic Cash Ledger available with PQR Ltd. was of ₹6,25,000): S. No. Particulars Amount (₹) (1) Demand raised as per section 73 or section 74 under CGST Act, 2017 belonging to July, 2018. 6,00,000 (2) Demand raised as per the old provisions of Indirect Taxes being applicable on PQR Ltd. 1,10,000 (3) Tax liability of CGST, SGST/UGST, IGST for supplies made during August, 2018. 1,25,000 (4) Interest & Penalty on delayed payment and filing of returns belonging to August, 2018. 20,000 (5) Tax liability of CGST, SGST/UGST, IGST for supplies made during September, 2018. 1,50,000 (6) Interest & Penalty on delayed payment and filing of returns belonging to September, 2018. 25,000 Suggest the manner in which the company can utilise the balance amount available in the Electronic Cash Ledger for discharging the tax liability.
Answer & Explanation:
Balance in Electronic cash ledger can be used in the following manner to discharge tax liability by PQR Ltd. for the quarter ended on 30.9.2018 Particulars Amount (₹) Balance available in Electronic cash ledger 6,25,000 Less: Adjustment of taxes Tax liability of CGST, SGST/UTGST, IGST for supplies made during August, 2018 (1,25,000) Interest & Penalty on delayed payment and filing of return belonging to August, 2018. (20,000) Tax liability of CGST, SGST/UTGST, IGST for supplies made during September, 2018. (1,50,000) Interest & Penalty on delayed payment and filing of returns belonging to September, 2018. (25,000) Demand raised as per section 73 or section 74 under CGST Act, 2017 of ₹6,00,000/- to the extent of available balance. (3,05,000) Balance in electronic cash ledger Nil Notes: The balance amount of ₹2,95,000/- (₹6,00,000 - ₹3,05,000) towards demand raised under section 73 or section 74 under CGST Act, 2017 to be discharged first. The demand of ₹1,10,000/- raised under old provisions of Indirect Taxes shall be discharged after discharge of demand of ₹2,95,000/-
Topics: CGST Act, 2017
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