M/s BBV Ltd. of Nagpur, registered under GST in the State of Maharashtra, is engaged in providing following types of outward supplies: (i)…

Computation of minimum net GST liability of M/s BBV to be paid in cash for the month of October, 2024 S. No. Particulars Amount (₹) IGST (₹) Output tax payable under forward charge (i) Export of product 'D' with payment of tax [Since exports are inter-State supplies, IGST is payable on them'.] 16,50,000 1,98,000 [16,50,000 x 12%] (ii) Product 'D' supplied to SEZ under LUT [Supply to a SEZ unit is a zero-rated supply. Further, no tax is payable since goods are supplied under LUT.] - (iii) Export of product 'D' under LUT [Export is a zero-rated supply. Further, no tax is payable since goods are supplied under LUT.] - (iv) Domestic outward supply of Product 'D' 46,00,000 5,52,000 [46,00,000 x 12%] (v) Outward services taxable under reverse charge [No tax is payable since recipient is liable to pay tax.] - (vi) Sale of securities [Since securities are neither goods nor services, sale of securities is not a supply.] - (vii) Supply of hiring of trucks to GTA [Exempt, since services by way of giving on hire to a GTA, a means of transportation of goods, are exempt.] - (viii) Sale of land [Sale of land is neither supply of goods nor supply of services, as it is covered in Schedule III. Thus, it is not a supply.] - (ix) Interest received on investments [Services by way of extending deposits in so far as the consideration is represented by way of interest are exempt.] - Total output tax 7,50,000 Less: Input tax credit [Refer working note below.] [ITC of IGST is being utilized for set-off of IGST liability.] (1,39,523) Net GST payable 6,10,477 Since the value of supply in October month exceeds 50lakh, at least 1% of output tax liability is to be paid in cash, in terms of rule 86B. However, since in the given question, ITC available is much less than 99% of the output tax liability, there is no need for any adjustment of amount utilized from electronic credit ledger. Add: Tax on services received by the registered recipient from unregistered GTA is payable under reverse charge 75,000 3,750 Minimum net GST payable in cash 6,14,227 Working note - Computation of eligible ITC available for set off Particulars IGST (₹) Common credit on inputs 20,00,000 x 12% = 2,40,000 Common credit on input services 8,00,000 x 18% = 1,44,000 3,84,000 Freight paid [Since used exclusively for taxable supply, ITC is fully available.] 75,000 x 5% = 3,750 Less: Common credit attributable to exempt supplies (rounded off) = Common credit on inputs and input services x (Exempt turnover during the period / Total turnover during the period) = 3,84,000 x 1,55,42,000 /2,40,43,000 (2,48,227) Total ITC eligible for set-off 1,39,523 Notes: 1. Computation of Exempt turnover Particulars Amount (₹) Exempt turnover includes (i) supply of hiring of trucks to GTA 7,00,000 (ii) services taxable under reverse charge 8,00,000 (iii) sale of securities (Value of exempt supply in respect of security is 1% of the sale value of such security) 42,000 (iv) sale of land (Value of exempt supply in respect of land is the value adopted for paying stamp duty) 1,40,00,000 excludes interest received on investments (₹ 2,51,000) Exempt Turnover 1,55,42,000 2. Computation of Total turnover = ₹ (16,50,000 + 9,00,000 + 11,00,000 + 46,00,000 + 8,00,000 + 42,000 + 7,00,000 + 1,40,00,000 + 2,51,000) = 2,40,43,000