Sachha and Sudh Limited is a registered supplier of taxable goods and services at Raipur in the state of Chhattisgarh under regular scheme. Head…

Computation of minimum net GST payable in cash by Sachha and Sudh Limited to be paid in cash for the month of April, 2024 S. No. Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) Output tax payable under forward charge (i) Supplied goods to Matadeen and Sons [Since the contract is for delivery of goods at buyer's premises and includes transportation cost, it becomes a composite supply; the principal supply being the supply of goods. Thus, GST rate applicable on goods will be charged on the entire value of supply of 8,00,000 (contract price actually paid by buyer). 1 Further, since goods are delivered on Bill to Ship to Model to Matadeen and Sons on the direction of a third person Dhananjai Associates, said third person is deemed to have received the goods and the place of supply is the principal place of business of such person, i.e. Chhattisgarh. Thus, it is an intra-State supply.] 8,00,000 72,000 [8,00,000 x 9%] 72,000 [8,00,000 x 9%] (ii) Sale of used loading tempo to Suresh [Since ITC has not been taken on the tempo and depreciation has been claimed on it under the Income-Tax Act, 1961 2 , value of supply is consideration received less depreciated value on the date of supply of tempo. However, since value of supply is negative [₹ 1,80,000 -2,40,000], it is to be ignored.] Nil (iii) Intra-State supply of sponsorship service [Tax is payable under forward charge since recipient of said services is a proprietary concern. Tax is not payable under reverse charge since recipient of said services is a not a partnership firm or body corporate.] 50,000 4,500 [50,000 x 9%] 4,500 [50,000 x 9%] (iv) Fine for delayed supply of goods [There was no express contract. Fine received from Vipul, being liquidated damages is merely a payment to compensate the loss caused due to delayed supply of goods and is not a consideration for supply.] - Total output tax 76,500 76,500 Less: ITC available for set off [Refer note below.] [IGST credit is utilized for payment of SGST only in order to minimize the SGST liability. CGST and SGST credit are utilized for payment of CGST and SGST liability respectively.] (57,600)- CGST (18,000)- IGST (57,600)- SGST Net output tax payable in cash 18,900 900 GST payable in cash under reverse charge Add: Tax on services received from the advocate - Vikas Gupta is payable under reverse charge by the recipient of service. 18,000 Minimum net GST payable 18,900 900 18,000 Working note - Computation of eligible ITC available for set off S. No. Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) (i) Intra-State purchase of goods [ITC on goods - 1,00,000 not received in April cannot be availed.] 6,00,000 [7,00,000 - 1,00,000] 54,000 [6,00,000 × 9%] 54,000 [6,00,000 × 9%] (ii) Freight paid to truck owner [No ITC is available since GST on service of transportation of goods by road received from a person other than a GTA is exempt.] 15,000 - - (iii) Rent paid to Indian Railway [It is an intra-State supply since the place of supply is location of immovable property, i.e. Chhattisgarh and supplier Indian Railways is in Chhattisgarh. Tax is payable under forward charge. Further, ITC on services used in course or furtherance of business is allowed.] 40,000 3,600 [40,000 × 9%] 3,600 [40,000 × 9%] (iv) Representational services received from Vikas Gupta [Services received by a business entity 3 from advocates are not exempt. It is an inter-State supply since the supplier is in Delhi and place of supply is location of recipient, i.e. Chhattisgarh. Further, ITC on services used in course or furtherance of business is available.] 1,00,000 18,000 [1,00,000 × 18%] (v) Additional share holding acquired in subsidiary [It is neither supply of goods nor supply of services, which is covered under Schedule III. ITC cannot be claimed since no GST is payable on the same.] (vi) Inter-State purchase of goods to be used for corporate social responsibility [ITC on goods to be used for discharge of corporate social responsibility is blocked under section 17(5)] Total ITC available 57,600 57,600 18,000 1 It has been logically assumed that the transportation cost of 20,000 is included in the total contract value of 8,00,000. 2 It has been assumed that depreciation has been claimed under the Income-Tax Act, 1961 and depreciation given in question is depreciation claimed as per the Income-tax Act, 1961. 3 It has been assumed that the aggregate turnover of Sachha and Sudh Limited exceeded such amount in the preceding FY as makes it eligible for exemption from registration under the CGST Act, 2017.