BSM Private Limited, a registered person in Udaipur, Rajasthan engaged in various lines of business, provided the following details regarding the…
CA Intermediate · Taxation · MTP · May 2026
BSM Private Limited, a registered person in Udaipur, Rajasthan engaged in various lines of business, provided the following details regarding the transactions undertook in the month of March: Outward Transactions Amount (₹) Advance received from Mr. Shantanu for business support services to be supplied in the month of April 2,00,000 Provided commissioning services under pure labour contract to M/s Shubhmanglam Developers of Jaipur, Rajasthan for multistorey residential complex. 5,00,000 Stock transferred without consideration to its branch in Jodhpur, Rajasthan. Branch has same GSTIN. 1,25,000 Outward sale of goods to various unrelated persons: As provided in the column Particulars Market Value (₹) Transaction Value (₹) Intra-State 5,00,000 5,75,000 Inward Transactions Amount (₹) Received car rental services from Wheely Private Limited, an unregistered company in Udaipur engaged in car renting services. BSM Private Limited paid rent on monthly basis (Cost of fuel also included in the monthly rent). [Rate of CGST and SGST is 2.5% each] 1,20,000 Intra-State inward supply of various goods and services for use in the course or furtherance of business. 7,50,000 [Goods] 2,50,000 [Services] Additional Information: (i) The company paid - 50,000 to Mr. Arun, an independent director, as sitting fees. (ii) The company made donation of 4,50,000 to a local old age home (a trust not registered under GST) for setting a Water Cooler at old age home with the name of company embedded on the water cooler to express their support for the good cause. (iii) All the amounts given above are exclusive of GST. (iv) All inward and outward supplies are intra-State except where otherwise stated. (v) Subject to information given above, all the conditions necessary for availing the ITC have been fulfilled. (vi) Applicable rates of GST for goods and services is 9%, 9% and 18% for CGST, SGST and IGST respectively. Calculate the net GST payable in cash by BSM Private Limited for the month of March. Support your solutions with relevant explanatory notes.
Suggested Answer and Working Notes:
Computation of net GST payable in cash by BSM Private Limited for the month of March Particulars Value (₹) CGST (₹) SGST (₹) GST payable under forward charge Advance received from Mr. Shantanu for business support services [Tax is payable at the time of receipt of advance for supply of services.] 2,00,000 18,000 [2,00,000 × 9%] 18,000 [2,00,000 × 9%] Commissioning services under pure labour contract for multi-storied residential complex [Taxable, since pure labour contract services pertain to a multi-storyed residential complex.] 5,00,000 45,000 [5,00,000 × 9%] 45,000 [5,00,000 × 9%] Intra-State branch transfer [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.] - - - Intra-State supply of goods to unrelated persons [Transaction value is the value of supply] 5,75,000 51,750 [5,75,000 × 9%] 51,750 [5,75,000 × 9%] Total output tax 1,14,750 1,14,750 Less: ITC available 94,500 94,500 Net GST payable [A] 20,250 20,250 GST payable under reverse charge Services of an independent director availed [B] [Tax on services provided by a director to a company is payable under reverse charge. Further, tax payable under reverse charge cannot be set off against ITC and thus, has to be paid in cash since the tax payable under reverse charge is not an output tax.] 50,000 4,500 [50,000 × 9%] 4,500 [50,000 × 9%] Net GST payable in cash [A] + [B] 24,750 24,750 Working Note: Computation of ITC available Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) Car rental services [Tax is not payable under reverse charge mechanism since supplier is a body corporate. Further, no tax is payable under forward charge also since supplier is unregistered and thus, no ITC is available.] -- -- -- -- Intra-State inward supply of goods [ITC of goods used in the course/furtherance of business is available.] 7,50,000 67,500 [7,50,000 × 9%] 67,500 [7,50,000 × 9%] Intra-State inward supply of services [ITC of services used in the course/ furtherance of business is available.] 2,50,000 22,500 [2,50,000 × 9%] 22,500 [2,50,000 × 9%] Services of an independent director availed [ITC of services used in the course/ furtherance of business is available.] 50,000 4,500 [50,000 × 9%] 4,500 [50,000 × 9%] Donation made to local old age home [there's no quid pro quo and thus, it is not a supply [Since the name of donor - the company - is displayed in such a manner: which can be said to be an expression of gratitude and public recognition of donor's act of philanthropy which is not aimed at giving publicity/ advertisement/ promotion to the donor's business Hence, no ITC is available.] -- -- -- -- Total 94,500 94,500
Topics: Paper 3B: Goods and Services Tax
Related Questions in this Topic
- Who is liable to collect TCS (collection of tax at source) under section 52 of the CGST Act, 2017? Briefly explain the p...
- Answer the following questions, assuming that suppliers are registered under GST: (a) Bhagwati Roadlines is a registere...
- Determine the place of supply in each of the following independent circumstances: (i) Ms. Kavya, Delhi is a passenger t...
- Nakshatra Comforts Ltd. is engaged in providing various services in Delhi. It obtained registration under regular scheme...
- Stellar Orbit Appliances Pvt. Ltd., a registered person in Pune, Maharashtra, is engaged in supplying a bouquet of goods...