Shantunu Ltd., a registered supplier under GST in the State of Kerala, is engaged in providing a bouquet of goods and services (other than renting…

Computation of minimum net GST payable in cash by Shantunu Ltd. for January Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) GST payable under forward charge Free gifts to customers [Not a supply as it is made without consideration and is also not covered in Schedule I because free gifts have been distributed to an unrelated person (customers are not related persons) and ITC has also not been availed on the same.] Nil - - - Supply of consignment in territorial waters [Where the supply is in the territorial waters, the place of supply is deemed to be in the coastal State where the nearest point of the appropriate baseline is located. Therefore, place of supply will be in Kerala being nearer to base line and hence, supply will be intra-State supply] 6,00,000 54,000 [6,00,000 x 9%] 54,000 [6,00,000 x 9%] Receipt of advance from customer [Tax will be payable only on advance for services. In case of goods, tax is payable at the time of issuance of invoice and not at the time of receipt of advance.] 4,90,000 (7,00,000 - 2,10,000) 44,100 [4,90,000 x 9%] 44,100 [4,90,000 x 9%] Inter-State supply of pure labour services for construction of single commercial unit in Mumbai [Services by way of pure labour contracts of construction of original works pertaining to a single residential unit otherwise than as a part of a residential complex is exempt. Hence, such services in relation to a commercial unit shall be taxable.] 2,70,000 [15,00,000 x 18%] Total output GST 98,100 98,100 2,70,000 Less: Input tax credit [Refer working note below] 98,100 98,100 18,900 (CGST) 18,900 (SGST) [CGST credit be first utilized for payment of CGST liability and then for payment of IGST liability in that order. Similarly, SGST credit be first utilized for payment of SGST liability and then for payment of IGST liability in that order. ITC of CGST cannot be utilized for payment of SGST and vice versa.] Net output GST payable in cash [A] Nil Nil 2,32,200 GST payable under reverse charge Tax on rent paid to State Government of Kerala by Sudharshan Ltd. (a registered person) is payable under reverse charge 6,00,000 54,000 54,000 Tax on services provided by the arbitral tribunal is payable under reverse charge by the recipient of service. 7,00,000 63,000 63,000 GST payable in cash under reverse charge [B] 1,17,000 1,17,000 [Tax payable under reverse charge, being not an output tax, cannot be set off against ITC and thus, will have to be paid in cash.] Minimum net GST payable in cash [A] + [B] 1,17,000 1,17,000 2,32,200 Working Note: Computation of ITC available with Shantunu Ltd. for January Particulars CGST (₹) SGST (₹) IGST (₹) Monthly rent paid to Kerela State Government for an office taken on rent [Being services used in the course of furtherance of business, ITC shall be available thereon.] 54,000 [6,00,000 x 9%] 54,000 [6,00,000 x 9%] Cars taken on rental basis from Mr. Deepak [Tax on renting of motor car services wherein cost of fuel is included in consideration provided by a non-body corporate to a body corporate and invoice is issued charging CGST/SGST @ 2.5% is payable under reverse charge. Time of supply of such services is 1st February being earlier of date of payment, or date immediately following 60 days since issue of invoice by the supplier. Since the time of supply of renting of motor car services in the given case does not fall in January, tax liability on the same does not arise in said month. Further, ITC on renting of motor car services received is blocked since the recipient Shantunu Ltd. is not in the same line of business.] -- -- -- Services of an arbitral tribunal [Services provided by an arbitral tribunal to a business entity with an aggregate turnover up to threshold limit of registration in the previous financial year are exempt from GST. Thus, services provided by the arbitral tribunal to Shantunu Ltd., a business entity whose aggregate turnover in the previous financial year exceeds the applicable threshold limit for registration [viz.20 lakh, being a supplier of goods and services in the State of Kerala] shall be liable to tax. Further, being services used in the course of furtherance of business, ITC shall be available thereon.] 63,000 [7,00,000 x 9%] 63,000 [7,00,000 x 9%] Purchase of raw material from Srinivas Steels Ltd. [An e-invoice without IRN is not treated as invoice and hence, without a valid document, ITC cannot be claimed on such inputs] - - Purchase of truck [Motor vehicle used for transportation of goods is eligible for credit. However, since depreciation has been claimed on applicable taxes as well, ITC of tax paid on purchase of such truck cannot be claimed.] - - Total ITC 1,17,000 1,17,000