Mr. Ayush is a registered supplier in Ahmedabad (Gujarat) under GST law. He provides the following information pertaining to various outward…
CA Final · Indirect Tax Laws · PYQS · November 2024
Mr. Ayush is a registered supplier in Ahmedabad (Gujarat) under GST law. He provides the following information pertaining to various outward supplies made by him during the month of March, 2024: S. No. Particulars Amount (₹) (i) Vijay Vayapar Chamber of Commerce organized a business summit. Nuba Pvt. Ltd., manufacturer of readymade garments, sponsored the summit and paid sponsorship fee of 1,80,000 to Vijay Vayapar Chamber of Commerce. Mr. Ayush, an independent director of Nuba Private Ltd., provided the services to the company in relation to this and Nuba Private Ltd. paid - 40,000 to him as remuneration. 40,000 (ii) Supply of railway equipments by way of transportation by a vessel from one place in India to another. 1,20,000 (iii) Services by way of storage/warehousing of processed tea used for beverage as green tea. 70,000 (iv) Health care services by his clinical establishment of providing rooms having room charges - 3,100 per day to a person receiving health care services. 3,00,000 (v) Services of a guest house, for lodging purposes, having value of supply of a unit of accommodation 800 per day 72,000 All above amounts are exclusive of GST. All the supplies are intra-State supply and assume the rate of taxes are IGST @ 18% and CGST & SGST @ 9% each. From the above information, compute the GST liability of each item seperately, on which tax to be paid by Mr. Ayush for the month of March, 2024. Correct provision of law should form the part of your answer.
Suggested Answer and Working Notes:
Computation of GST liability of Mr. Ayush Particulars CGST @ 9% (₹) SGST @ 9% (₹) (i) Service provided to Nuba Pvt. Ltd. [Tax on services provided in the capacity of an independent director is payable by the recipient Nuba Pvt. Ltd. under reverse charge mechanism and not by Mr. Ayush. 4 ] -- -- (ii) Supply of transportation of railway equipment by vessel [Taxable, since it is not specifically exempt. Transportation of specified goods by vessel from one place in India to another are exempt. However, railway equipment is not a specified good. Exemption earlier available to transportation of railway equipment by vessel from one place in India to another was withdrawn.] 10,800 10,800 (iii) Storage/warehousing of processed tea [Taxable, since storage/warehousing of only agricultural produce is exempt but processed tea is not an agricultural produce.] 6,300 6,300 (iv) Health care services of providing rooms by his clinical establishment [Exempt, since room charges do not exceed - 5,000 per day.] - - (v) Services of a guest house for lodging purposes [Taxable, since exemption with respect to services provided by guest house for lodging purposes with value of supply up to 1,000 per day, was withdrawn.] 6,480 6,480 4 It has been assumed that services provided by Mr. Ayush are in the capacity of director of that company. However, where such services are assumed to be provided by Mr. Ayush in his personal capacity, tax on the same will be paid by Mr. Ayush under forward charge.
Topics: Exemptions from GST
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