Reddy & Reddy Associates, a partnership firm registered under GST, is engaged in various types of business activities. It has provided the…

Reddy & Reddy Associates, a partnership firm registered under GST, is engaged in various types of business activities. It has provided the details of the following activities undertaken by it in the current financial year: (i) It supplied taxable goods to Suryan Enterprises valuing - 8,00,000 in the month of April, with a credit period of 1 month for payment. Thereafter, interest @ 12% p.a. is chargeable on the consideration. The payment is received from Suryan Enterprises after the lapse of two months from the date of supply. (ii) It enters into a contract for supply of 100 office chairs @15,000 with Veer Mart on 21st August. Chairs are removed from the warehouse of Reddy & Reddy Associates on 5th September along with the invoice of said date. Veer Mart has paid 30% of the total contract value on 21st August; 70% is paid after delivery of chairs on 10th September. (iii) In the month of October, it provided services by way of transportation of goods in a goods carriage by road to Fisheries Department of Government of India, which is registered under GST only for the purpose of deducting tax at source. Reddy & Reddy Associates is a registered goods transport agency and charges - 1,20,000 for the said services. (iv) It also provided services of Direct Selling Agent to an NBFC located in Mumbai in the month of December for 50,000. (v) It organized a business exhibition in the month of December for which it received a sponsorship fee of 3,00,000 from Kiran Ltd. (vi) It has a policy to provide free gifts to each of its employees valuing - 50,000 at the end of each financial year. (vii) It availed services of Pratham Travel Agency for organizing a free vacation for its top performing employees in the month of December. GST of 50,000 was paid for the same. In the same month, it also paid GST of 20,000 on membership of Tejas Fitness Centre taken for its CEO. All the amounts given above are exclusive of GST, wherever applicable. All conditions for availing ITC are fulfilled subject to the information given above. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5 below: