TTY Pvt. Ltd, a registered supplier in Bengaluru has provided the following information of supply received/made during the month of June, 2025: S.…

CA Intermediate · Taxation · PYQS · January 2026
TTY Pvt. Ltd, a registered supplier in Bengaluru has provided the following information of supply received/made during the month of June, 2025: S. No. Outward Transactions Amount (₹) (i) Supply of taxable goods to Mr. Sudhir of Hubli (Karnataka) registered under Composition scheme in the state of Karnataka 4,00,000 (ii) Hiring receipts for supply of Industrial heavy machines along with supply of machine operators. (out of 9,00,000, value of 2,25,000 belongs to supply of operators, but not separately charged). As per policy of the industry, these machines are always hired out along with operators, and operators are also supplied only when machines hired out with single price. 9,00,000 (iii) Renting of dumpers including driver given for transport of minerals within the mining area in Jharkhand for a period of 18 months to Vanshika Builders, registered in the state of Bihar. 10,50,000 (iv) Stock transferred without consideration to its branch in Shimoga, Karnataka. Branch has same GSTIN. (Value of goods as per Valuation Rules under GST law is 2,50,000) (v) Given on hire 26 motor vehicles (seating capacity of 14 persons excluding driver) to Karnataka State Road Transport Corporation (KSRTC) 12,00,000 Inward Transactions Amount (₹) (i) Purchased 4 electric scooters with engine capacity of 23 cc for use by its employees for commuting within the office premises and nearby client locations. Scooters were supplied in Bengaluru (Karnataka) by a GST-registered dealer located in Rajasthan 4,80,000 (ii) Mr. Vijay (Managing Director) went to Surat, Gujarat for a business meeting in June 2025 and stayed for 3 days in "Royal Residency Hotel" registered in the state of Gujarat. Hotel accommodation charges paid - 18,000 (taxable value, excluding GST) for the stay. 18,000 Additional Information: (i) In the month of December, 2024, company had availed services in an inter-State transaction with a taxable value of 6,00,000; This transaction was liable to tax under reverse charge. Payment for the same to the supplier was not made till the current month (overdue for 181 days during June, 2025). However, tax due under the said transaction was paid to Government in December 2024 and input tax credit availed in the same month. (ii) On 11th June 2025, received a debit note of 2,50,000 in respect of inward intra-State taxable supplies of service. The underlying invoice was issued in the month of October, 2023 in which it was found later that the supplier had erroneously declared a value which is less than the actual value of services provided. (iii) All the figures are exclusive of GST wherever applicable (iv) All the conditions necessary for availing the input tax credit have been fulfilled and also that details of GST paid on inward supplies are available in GSTR 2B. There was no Opening balance of input tax credit at the beginning of the month (v) Assume that all the inward supplies are used only for outward taxable supply (vi) Wherever details for determination of Place of Supply are not given in the question, it shall be taken as Inter-State transaction (vii) Assume the applicable rates of GST as under:- (a) Service of hiring of heavy machine IGST 12%, CGST 6% and SGST 6% (b) Service of Supply of machine operator without heavy machines IGST 18%, CGST 9% and SGST 9% (c) All other inward and outward supply, IGST 18%, CGST 9% and SGST 9% You are required to compute the net minimum GST liability of TTY Pvt. Ltd to be paid in cash if any, for the month of June, 2025 after utilizing input tax credit. Note: Calculate tax for each point separately and Legal explanations for each point should form part of your answer including Place of provision of supply.

Suggested Answer and Working Notes:

(a) Computation of net minimum GST liability of TTY Pvt. Ltd. to be paid in cash, for the month of June, 2025 Computation of outward tax liability Particulars Value CGST (₹) SGST (₹) IGST (₹) (i) Supply of taxable goods to Mr. Sudhir [It is an intra-State supply since place of supply is Karnataka being location of goods at the time at which movement terminates for delivery to recipient.] 4,00,000 36,000 [4,00,000 x 9%] 36,000 [4,00,000 x 9%] - (ii) Hiring of industrial heavy machines with operators [Being composite supply wherein the principal supply is the hiring out of the heavy machine, GST rate of principal supply being 12% will apply.] 9,00,000 - - 1,08,000 [9,00,000 x 12%] (iii) Renting of dumpers including driver [Taxable / Not specifically exempt as same is service of renting of transport vehicles with operator and not service of transportation of goods by road. Further, it is an inter-State supply since place of supply of services provided to the registered person is Bihar being location of such registered person.] 10,50,000 - - 1,89,000 [10,50,000 x 18%] (iv) Stock transfer to branch in Karnataka [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.] Nil - - - (v) Hiring 26 motor vehicles to KSRTC. [Services by way of giving on hire to a State Transport Undertaking (STU), a motor vehicle meant to carry more than 12 passengers is exempt.] 12,00,000 Nil Nil - Total output tax liability 36,000 36,000 2,97,000 Less: Total Eligible ITC [Refer Working Note] IGST credit is set off against IGST liability (86,400) CGST and SGST credit is set off against CGST and SGST liability respectively (22,500) (22,500) Net GST payable in cash 13,500 13,500 2,10,600 Working Note: Computation of total ITC available for set off Particulars CGST (₹) SGST (₹) IGST (₹) (i) Purchased 4 electric scooters with engine capacity of 23 cc [Vehicle with less than 4 wheels fitted with engine capacity of upto 25cc is not a motor vehicle and thus, ITC on same is not blocked. Further, it is an inter-State supply since place of supply is Karnataka being location of goods at the time at which movement terminates for delivery to recipient and supplier is in Rajasthan.] 4,80,000 - - 86,400 (ii) Hotel charges paid for accommodation. [It is an intra-State supply since place of supply is Surat/ Gujarat being the location of immovable property. However, ITC of the same will not be available since the recipient of said intra-State supply is located in a different State than that of place of supply.] 18,000 - - (iii) Availment of credit on services for which payment is overdue for 181 days [Reversal of credit availed is not required since the condition of payment of value of supply plus tax within 180 days does not apply to supplies on which tax is payable under reverse charge.] 6,00,000 (iv) Debit note received in respect of inward intra-State taxable supplies of service. [ITC on debit notes issued in a FY can be availed in the month of issue of such debit note or at any time till 30th November of the succeeding FY or date of filing of annual return, whichever is earlier, irrespective of the date of original invoice/ supply.] 2,50,000 22,500 22,500 Total input tax credit 22,500 22,500 86,400

Topics: Paper 3B: Goods and Services Tax

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