Mr. Viswas is registered under GST in the State of Karnataka. He is engaged in providing multiple types of services and provides the following…

Computation of value of taxable supply and net GST liability payable in cash by Mr. Vishwas S. No. Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) (a) Security services to unregistered persons [On 1,00,000, tax is payable under forward charge and not under reverse charge since security services are provided to unregistered persons.] 1,00,000 9,000 [1,00,000 x 9%] 9,000 [1,00,000 x 9%] Security services to registered persons [On 4,00,000, tax is payable under reverse charge by the recipient since security services are provided by a non-body corporate or by an individual to registered persons.] (b) Organisation of entertainment event [Inter-State supply, since place of supply of services provided by way of organisation of entertainment event to a registered recipient is the location of recipient, i.e. Telangana.] 15,00,000 2,70,000 [₹ 15,00,000 x 18%] (c) Training services in a program organized by National Skill Development Corporation (NSDC) [Taxable, since services provided by only a training partner approved by NSDC, in relation to the National Skill Development Programme are exempt.] 2,00,000 18,000 [₹ 2,00,000 x 9%] 18,000 [₹ 2,00,000 x 9%] (d) Sale of old godown [Since sale of building (godown) is neither supply of goods nor supply of services as it is covered in Schedule III of the CGST Act, 2017. Thus, sale of godown is not a supply] - - - (e) Import of consultation services from father-in law [Since father-in-law is not a related person, import of services from him, though in the course of business shall not be deemed as supply since it is made without consideration.] - - - Value of taxable supply 22,00,000 Total output tax 27,000 27,000 2,70,000 Less: Input tax credit [Refer working note below.] (27,000) CGST (27,000) SGST (10,350) CGST (10,350) [ITC of CGST is being used to pay CGST liability first and then remaining for payment of IGST. ITC of SGST is being used to pay SGST liability first and then remaining for payment of IGST.] SGST Minimum net GST payable in cash Nil Nil 2,49,300 Working note - Computation of eligible ITC available for set off Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) Input services availed in relation to organizing entertainment event [Since used exclusively for taxable supply, ITC is fully available.] 4,00,000 36,000 [4,00,000 x 9%] 36,000 [4,00,000 x 9%] Tax consultation services received from CA [ITC is available since used in course or furtherance of business. Further, it is commonly used for making taxable and exempt supplies.] 30,000 2,700 [₹ 30,000 x 9%] 2,700 [₹ 30,000 x 9%] Less: Common credit attributable to exempt supplies = Common credit x (Exempt turnover / Total turnover) (1,350) (1,350) = 2,700 x 18,00,000 /36,00,000 Exempt turnover = 18,00,000 Total turnover = 36,00,000 [Refer Notes 1 and 2 below] Total ITC eligible for set-off 37,350 37,350 Note 1: Exempt turnover includes- (i) security services taxable under reverse charge (₹ 4,00,000), and (ii) sale of godown [₹ 14,00,000 [value adopted for paying stamp duty] = 18,00,000 Note 2: Total turnover = ₹ (5,00,000 + 15,00,000 + 2,00,000 + 14,00,000) = 36,00,000