Rinku Pvt. Ltd. is registered under GST in Faridabad (Haryana). It has a unit engaged in manufacturing of potato chips and also indulged in supply…

Answer Computation of net tax payable by Rinku Pvt. Ltd. for the month of June, 2025 Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) Hiring out of non-AC bus to Health Department of Haryana [Hiring out of such motor vehicles are exempt only when hired to a State Transport Undertaking (STU). However, since Health Department is not a State Transport Undertaking, said services are taxable. Further, tax is payable under forward charge and not payable under reverse charge as supplier is a body corporate and cost of fuel is not included in consideration. 7 ] 50,000 3,000 [50,000 x 6%] 3,000 [50,000 x 6%] Total output tax 3,000 3,000 - Less: Input tax credit [Refer working note below.] IGST credit is being utilized against payment of CGST and SGST liability respectively. (3,000) (3,000) - Net GST payable Nil Nil - 7 It is an intra-State since place of supply is Haryana being location of recipient and supplier is also in Haryana. 8 Applicable rate of GST is 6% CGST and SGST each on supply of service of hiring of non-airconditioned motor-vehicle if cost of fuel is borne by the recipient. Working note - Computation of eligible ITC available for set off Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) Purchase of potatoes [No ITC is available since supply of potatoes is exempt.] 18,00,000 - - - Services received from Tarun Services for sorting, grading and cleaning of potatoes at its factory [Taxable since said processes are exempt only when they are carried out at an agricultural farm and in the given case, services are not being carried out at an agricultural farm. ITC is available as these services are used in course or furtherance of business.] 2,00,000 36,000 Long term lease of plot 9,10 32,00,000 (30,00,000 +2,00,000) 2,88,000 2,88,000 Total ITC available 11 2,88,000 2,88,000 36,000 9 It has been assumed that supplier is registered. 10 It is assumed that annual rent paid in the month of June itself for the whole year. 11 Since the applicable rate of GST on outward supply of service of hiring of motor vehicles is 12%, ITC on inputs and input services used in providing said services is available.