Sakura Impex Limited (SIL), a registered supplier in the State of Andhra Pradesh, provides the following details of transactions undertaken in the…

(a) Computation of minimum net GST liability payable in cash for the month of January 2025 S. No. Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) (i) Order for printing of books [Printing of books with only content being supplied by the publisher is a composite supply wherein supply of printing service is the principal supply.] 7,00,000 1,26,000 [7,00,000 x 18%] (ii) Renting of commercial building [Since renting of only residential dwelling for use as residence is exempt, renting of commercial buildings for use as residence is not exempt and is thus, taxable. Further, tax is payable under forward charge and not under reverse charge since supplier - SIL – is registered. It is an intra-State supply since place of supply of services in relation to immovable property is the location of such property, i.e. Andhra Pradesh.] 1,20,000 10,800 [1,20,000 x 9%] 10,800 [1,20,000 x 9%] (iii) Consultancy services provided to a resident of South Korea [Intra-State supply since where services supplied in respect of goods required to be made physically available by the recipient to supplier are supplied at more than one location, including a location in the taxable territory, place of supply is the location in the taxable territory, i.e., Andhra Pradesh.] 20,00,000 1,80,000 [20,00,000 x 9%] 1,80,000 [20,00,000 x 9%] (iv) Corporate guarantee on behalf of a related person in India [Value of supply of corporate guarantee service for 5 years is higher of the following:- (a) 1% per annum of amount of such guarantee offered [and not amount of loan actually disbursed to the recipient] multiplied by 5 years [1% x 20,00,000 x 5 years = 1,00,000] or (b) Actual consideration i.e.70,000 i.e.1,00,000.] 1,00,000 18,000 [1,00,000 x 18%] (v) Supply of services related to footwear sector [In case of change in rate of tax, if supply and issue of invoice (14th February, 2025) are after the change in such rate (1st February, 2025), payment is received before change in rate, date of issue of invoice [14th February, 2025] is the time of supply. Therefore, advance is not taxable in the month of January, 2025.] - - - (vi) Supply of old machinery [Intra-State supply since in case of "Bill to Ship to" supply, where goods are delivered by the supplier to the recipient at the instruction of a third person, place of supply is principal place of business of third person i.e. Andhra Pradesh. Further, refer working note 2 below for computation of amount to be paid on supply of old machinery on which ITC has been taken.] 40,500 40,500 Total output tax liability 2,31,300 2,31,300 1,44,000 Less: Input tax credit [Refer working note 1 below.] - - - Minimum net GST payable in cash 2,31,300 2,31,300 1,44,000 Working note 1- Computation of eligible ITC available for set off S. No. Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) (vii) Grant of certification relating to safety of workers [Services provided by State Government by way of certification relating to safety of workers required under any law is exempt under GST. Since no tax is payable, no ITC is available on the same.] - - - Total ITC available - - - Working note 2- Computation of amount to be paid on sale of old machinery Particulars Amount (₹) Amount (₹) If capital goods/plant and machinery on which ITC has been taken are supplied by a registered person, higher of the following amounts is to be paid: (a) ITC taken on machinery (₹ 6,00,000 × 18%) 1,08,000 40,500** Less: 5% per quarter or part thereof from the date of issue of invoice for machinery [(₹ 6,00,000 × 18% x 5% x 5 quarters)] (27,000) 81,000 OR OR (b) Tax on transaction value [₹ 4,00,000 x 9%] 36,000 Amount to be paid (each under CGST & SGST) 40,500 ** 40,500 [each under CGST & SGST (₹ 81,000/2)]