Vishnu Pvt. Ltd., a registered supplier of goods and services at Kolkata has furnished the following information for the month of February: S. No.…

Computation of GST payable on outward supplies S. No. Particulars CGST @9% (₹) SGST @9% (₹) IGST @18% (₹) (i) Intra-State supply of goods for 4,00,000 [Note-1] 36,000 36,000 Nil (ii) Services rendered by way of labour contracts for repairing a single residential unit otherwise than as a part of residential complex [Note-2] 9,000 9,000 Nil (iii) Services provided by way of training in recreational activities relating to sports [Note-3] Nil Nil 1,800 (iv) Inter-State security services provided to Bharat higher secondary school for their annual day function to be held in Kaman Auditorium.[Note-4] Nil Nil 2,700 Total GST payable 45,000 45,000 4,500 Notes 1. A registered person (excluding composition supplier) has to pay GST on the outward supply of goods at the time of supply as specified in section 12 of the CGST Act, 2017, i.e. date of issue of invoice or the last date on which invoice ought to have been issued. Thus, liability to pay tax on the advance received in January will also arise in the month of February, when the invoice for the supply is issued. 2. Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex are exempt. Labour contracts for repairing are thus, taxable. 3. Services by way of training in sports is exempt under GST, only if provided by charitable entities registered under section 12AA or section 12AB of the Income-tax Act, 1961. Thus, in the given case, said service is taxable. 4. Security services provided to Bharat higher secondary School for Annual Day function organised outside the school campus will be taxable as only the security services performed within the premises of the higher secondary school are exempt. Computation of total ITC Particulars CGST @9% (₹) SGST @9% (₹) IGST @18% (₹) Opening ITC 57,000 Nil 50,000 Add: Purchase of goods from a composition dealer [ITC is not available in case of supply of goods where tax has been paid under composition scheme] Nil Nil Nil Add: Membership of a club [Blocked credit] Nil Nil Nil Add: Goods transport services received from GTA [Input tax credit is available for the services received from GTA as the same are used in the course or furtherance of business.] Nil Nil 24,000 Add: Inputs to be received in 4 lots, out of which 2nd lot was received during the month [In case of goods received in lots, ITC can be taken only upon receipt of the last lot] Nil Nil Nil Total ITC 57,000 Nil 74,000 Computation of minimum GST payable from electronic cash ledger Particulars CGST @9% (₹) SGST @9% (₹) IGST @18% (₹) GST payable 45,000 45,000 4,500 Less: ITC [First ITC of IGST should be utilized in full first against IGST liability and then against CGST and SGST liabilities in a manner to minimize cash outflow] (24,500) (45,000) (4,500) Less: ITC of CGST to be used against CGST (20,500) Minimum GST payable in cash Nil Nil Nil Note: Since sufficient balance of ITC of CGST is available for paying CGST liability and cross utilization of ITC of CGST and SGST is not allowed, ITC of IGST has first been used to pay SGST (after paying IGST liability) and then CGST to minimize cash outflow.