Green Pines Ltd., Delhi, a registered supplier, manufactures taxable goods. It provides the following details of taxable inter-State supply made by…

CA Intermediate · Taxation · MTP · September 2025
Green Pines Ltd., Delhi, a registered supplier, manufactures taxable goods. It provides the following details of taxable inter-State supply made by it during the month of March. S. No. Particulars Amount (₹) (i) List price of taxable goods supplied inter-State (exclusive of taxes) 15,00,000 (ii) Price linked subsidy received from the Central Government for supply of taxable goods to Government School (exclusively related to supply of goods included at S. No. 1) 2,10,000 (iii) Price linked subsidy received from an NGO for supply of taxable goods to an old age home (exclusively related to supply of goods included at S. No. 1) 50,000 (iv) Tax levied by Municipal Authority 20,000 (v) Packing charges 15,000 (vi) Late fee paid by the recipient of supply for delayed payment of consideration (Recipient has agreed to pay - 6,000 in lump sum and no additional amount is payable by him over and above such amount) 6,000 The list price of the goods is net of the two subsidies received. However, the other charges/taxes/fee are charged to the customers over and above the list price. Calculate the total value of taxable supplies made by Green Pines Ltd. during the month of March. Rate of IGST is 18%.

Suggested Answer and Working Notes:

Computation of total value of taxable supplies made by Green Pines Ltd. during the month of March Particulars Amount (₹) List price of the goods 15,00,000 Subsidy amounting to 2,10,000 received from the Central Government [Since the subsidy is received from the Government, the same is not includible in the value in terms of section 15 of the CGST Act, 2017] NIL Subsidy received from NGO [Since the subsidy is received from a non-Government body and directly linked to the price, the same is includible in the value in terms of section 15 of the CGST Act, 2017] 50,000 Tax levied by the Municipal Authority [Includible in the value as per section 15 of the CGST Act, 2017] 20,000 Packing charges [Being incidental expenses, the same are includible in the value as per section 15 of the CGST Act, 2017] 15,000 Late fees paid by recipient of supply for delayed payment [Includible in the value as per section 15 of the CGST Act, 2017- As the amount of interest received is a lump sum amount, the same has to be taken as inclusive of GST] [₹ 6,000 x 100/118] rounded off 5,085 Total value of taxable supplies 15,90,085

Topics: Paper 3B: Goods and Services Tax

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