Mr. Sagar Chaturvedi, registered under GST, is engaged in supplying multiple services (as discussed in the table below) in Mumbai, Maharashtra. He…

Computation of GST payable Particulars Value of supply (₹) CGST (₹) SGST (₹) IGST (₹) GST payable under forward charge Services of transportation of students provided to Sanskar College 90,000 8,100 [90,000 x 9%] 8,100 [90,000 x 9%] Nil [Services of transportation of students provided to an educational institution other than an institution providing pre-school education or education up to higher secondary school or equivalent, are not exempt.] Services of milling of paddy into rice. 1,80,000 16,200 [1,80,000 x 9%] 16,200 [1,80,000 x 9%] Nil [Milling of paddy into rice cannot be considered as an intermediate production process in relation to cultivation of plants for food, fibre or other similar products or agricultural produce. Thus, it is not eligible for exemption.] Business exhibition organized for Ramesh Industries 20,00,000 Nil Nil 3,60,000 [20,00,000 x 18%] [Taxable since services by an organizer to any person in respect of a business exhibition are exempt only when such exhibition is held outside India. Further, it is an inter-State supply since the place of supply of services by way of organization of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to an exhibition in case of a registered recipient is location of such recipient, i.e. Delhi.] Training to employees of Aashiyana Interiors. 1,00,000 9,000 [1,00,000 x 9%] 9,000 [1,00,000 x 9%] Nil [Taxable. Further, the place of supply of services in relation to training and performance appraisal provided to an unregistered person, shall be the location where the services are actually performed. Thus, place of supply is Mumbai. Hence, it is an Intra-State supply.] Services provided as a recovery agent 30,000 2,700 [30,000 x 9%] 2,700 [30,000 x 9%] Nil [Tax is payable under forward charge since recovery agent's services are being provided to a person other than banking company/financial institution/ non-banking financial company.] Total GST payable under forward charge (A) 36,000 36,000 3,60,000 GST payable under reverse charge Services of transportation of goods received from unregistered GTA 2,00,000 5,000 [2,00,000 x 2.5%] 5,000 [2,00,000 x 2.5%] Nil [It is intra-State supply since the place of supply of services by way of transportation of goods provided to a registered recipient is location of such recipient, i.e., Maharashtra. ] Legal services availed from an advocate 1,60,000 Nil Nil 28,800 [1,60,000 x 18%] [Legal services received by a business entity with aggregate turnover in the preceding financial year exceeding threshold limit for registration (20lakh) are not exempt and tax on the same is payable under reverse charge. Further, place of supply of services provided to a registered person is the location of such person. Thus, place of supply is Mumbai. Resultantly, same is an inter-State supply as supplier is located in Gujarat.] Total GST payable under reverse charge (B) 5,000 5,000 28,800 Computation of total ITC available Particulars Value of supply (₹) CGST @ 9% (₹) SGST @ 9% (₹) IGST @ 18% (₹) Services of transportation of goods received from unregistered GTA 2,00,000 5,000 [2,00,000 x 2.5%] 5,000 [2,00,000 x 2.5%] Nil [ITC is available on said service since it is used in course or furtherance of business.] ITC on sponsorship services 1,50,000 13,500 [1,50,000 x 9%] 13,500 [1,50,000 x 9%] Nil (It is an intra-State supply, since place of supply is Mumbai, Maharashtra, being the location of recipient. ITC is available on services used in the course or furtherance of business.) Legal services availed from an advocate 1,60,000 Nil Nil 28,800 [1,60,000 x 18%] [ITC is available on services used in the course or furtherance of business.] Total ITC available 18,500 18,500 28,800 Computation of net GST payable in cash Particulars CGST @ 9% (₹) SGST @ 9% (₹) IGST @ 18% (₹) GST payable under forward charge 36,000 36,000 3,60,000 Less: ITC 18,500 18,500 28,800 17,500 17,500 3,31,200 Add: GST payable under reverse charge in cash 5,000 5,000 28,800 [Tax payable under reverse charge, being not an output tax, cannot be set off against ITC and thus, will have to be paid in cash.] Net GST payable in cash 22,500 22,500 3,60,000