Mr. Prithviraj, registered under GST, is engaged in supplying services (as discussed in the table below) in Maharashtra. He has furnished the…

Computation of GST payable Particulars Value of supply (₹) CGST @ 9% (₹) SGST @ 9% (₹) IGST @ 18% (₹) GST payable under forward charge Carnatic music performance given to promote a brand of readymade garments [Carnatic music performance by Mr. Prithviraj is not exempt from GST even though the consideration charged does not exceed - 1,50,000 since said performance has been made by him as a brand ambassador.] 1,40,000 12,600 12,600 Nil Services of transportation of students provided to Subhaskar College [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, are not exempt.] 1,00,000 9,000 9,000 Nil Services provided to Wealth Bank as a business correspondent [Services provided by a business correspondent to a banking company are not exempt when such services are provided with respect to accounts in its urban area branch.] 2,00,000 18,000 18,000 Nil Services provided as a recovery agent [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.] 15,000 1,350 1,350 Nil Total GST payable under forward charge (A) 40,950 40,950 Nil GST payable under reverse charge Legal services availed from an advocate [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, since place of supply is Maharashtra, being the location of registered person, thus same is an Inter-State supply.] 1,75,000 Nil Nil 31,500 Total GST payable under reverse charge (B) Nil Nil 31,500 Total GST payable [(A)+(B)] 40,950 40,950 31,500 Computation of total ITC available Particulars Value of supply (₹) CGST @ 9% (₹) SGST @ 9% (₹) IGST @ 18% (₹) Outdoor catering services availed [ITC on outdoor catering services is blocked except when such services are (i) used by the taxpayer who is in the same line of business or (ii) provided by the employer to its employees under a statutory obligation.] 50,000 Nil Nil Nil Legal services availed [ITC is available as said services are used in course or furtherance of business.] 1,75,000 Nil Nil 31,500 General insurance taken on a car (seating capacity 5) used for official purposes [ITC on motor vehicles for transportation of persons with seating capacity ≤ 13 persons (including the driver) is blocked except when the same are used for (i) making further taxable supply of such motor vehicles (ii) making taxable supply of transportation of passengers (iii) making taxable supply of imparting training on driving such motor vehicles. Further, ITC is not allowed on services of general insurance relating to such ineligible motor vehicles.] 40,000 Nil Nil Nil Total ITC available Nil Nil 31,500 Computation of net GST payable in cash Particulars CGST @ 9% (₹) SGST @ 9% (₹) IGST @ 18% (₹) GST payable under forward charge 40,950 40,950 Nil Less: ITC of IGST 1 (15,750) (15,750) IGST IGST 25,200 25,200 Nil Add: GST payable under reverse charge in cash Nil Nil 31,500 [Tax payable in 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 25,200 25,200 31,500 1 ITC of IGST can be utilised towards payment of CGST and SGST in any proportion and in any order. Therefore, there can be multiple ways of setting off of IGST credit against CGST and SGST liability and accordingly, in the given case, amount of net GST payable in cash under the heads of CGST and SGST will vary. However, total amount of net GST payable in cash will be - 81,900 in each case.