MLM Private Limited, a registered person in Udaipur, Rajasthan engaged in various lines of business, provided the following details regarding the…

Computation of net GST payable in cash by MLM Private Limited for the month of March 2024 Particulars Value (₹) CGST (₹) SGST (₹) GST payable under forward charge Advance received from Mr. Gokul for business support services [Tax is payable at the time of receipt of advance for supply of services.] 2,00,000 18,000 [2,00,000 × 9%] 18,000 [2,00,000 × 9%] Commissioning services under pure labour contract for multi-storied residential complex [Taxable, since pure labour contract services pertain to a residential complex.] 5,00,000 45,000 [5,00,000 × 9%] 45,000 [5,00,000 × 9%] Intra-State branch transfer [Such transfer is not a supply as the branch has the same GSTIN as that of the head office and thus, is not a distinct person.] -- -- -- Intra-State supply of goods to unrelated persons [Transaction value is the value of supply] 5,75,000 34,500 [5,75,000 × 6%] 34,500 [5,75,000 × 6%] Warehousing services for pulses 1 [Exempt, since warehousing of pulses is exempt from GST] -- -- -- Total output tax 97,500 97,500 Less: ITC available 72,000 72,000 Net GST payable [A] 25,500 25,500 GST payable under reverse charge Services of an independent director availed [B] [Tax on services provided by a director to a company is payable under reverse charge. Further, tax payable under reverse charge cannot be set off against ITC and thus, has to be paid in cash since the tax payable under reverse charge is not an output tax.] 50,000 4,500 [50,000 × 9%] 4,500 [50,000 × 9%] Net GST payable in cash [A] + [B] 30,000 30,000 1 The reversal provisions under rule 42 of the CGST Rules, 2017 have not been given effect to in the above answer on account of specific exclusion of the same via Study guidelines applicable for May, 2025 examination. Working Note: Computation of ITC available Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) Car rental services [Tax is not payable under reverse charge mechanism since supplier is a body corporate. Further, no tax is payable under forward charge also since supplier is unregistered and thus, no ITC is available.] -- Intra-State inward supply of goods [ITC of goods used in the course/furtherance of business is available.] 7,50,000 45,000 [7,50,000 × 6%] 45,000 [7,50,000 × 6%] Intra-State inward supply of services [ITC of services used in the course/ furtherance of business is available.] 2,50,000 22,500 [2,50,000 × 9%] 22,500 [2,50,000 × 9%] Services of an independent director availed [ITC of services used in the course/ furtherance of business is available.] 50,000 4,500 [50,000 × 9%] 4,500 [50,000 × 9%] Donation made to local old age home [Since there's no quid pro quo and thus, it is not a supply. Since the name of donor – the company - is displayed in such a manner: which can be said to be an expression of gratitude and public recognition of donor's act of philanthropy which is not aimed at giving publicity/ advertisement/ promotion to the donor's business. Hence, no ITC is available.] -- Total 72,000 72,000