Malhar Corporation, a partnership firm, registered under regular scheme of GST in Delhi. Following information has been provided regarding inward…
CA Final · Indirect Tax Laws · PYQS · January 2026
Malhar Corporation, a partnership firm, registered under regular scheme of GST in Delhi. Following information has been provided regarding inward and outward transactions undertaken by Malhar Corporation in the month of June 2025: Sr. No. Particulars Amount (₹) (i) Services of sponsorship provided to Kaniksha Co. Pvt. Ltd 12,50,000 (ii) Received rent from Garima Industries, a registered person under composition scheme, against renting of office space in a commercial building. 3,50,000 (iii) Services provided by Delhi Development Authority (DDA) to Malhar Corporation. 2,45,000 (iv) Housekeeping and Civil Maintenance services provided to Municipal Corporation of Delhi (MCD) Headquarters. Out of the total value goods valued for 50,000 are included. 2,25,000 (v) Received online money gaming services from Nitro Co., an online money gaming provider established in Australia. 4,50,000 All figures are exclusive of GST, wherever applicable. All inward and outward supplies are to be treated as intra-State supplies in case required information is not provided. Compute the value of taxable supplies on which Malhar Corporation has to pay GST under Reverse Charge Mechanism (RCM) for the month of June 2025.
Suggested Answer and Working Notes:
Answer (b) Value of taxable supplies on which GST is payable under reverse charge by Malhar Corporation Particulars Value (₹) Tax on outward supplies of sponsorship is payable under reverse charge mechanism by body corporate recipient i.e., Kaniksha Co Pvt Ltd. Thus, supplier - Malhar Corporation will not pay tax under reverse charge. Nil Tax on rent received from composition dealer is not payable under reverse charge but under forward charge by Malhar Corporation Nil Services provided by DDA [Tax is not payable under reverse charge since services are not received by local authority as DDA is not a local authority.] Nil Tax on housekeeping and civil maintenance services is not payable under reverse charge but under forward charge by Malhar Corporation Nil Online money gaming [IGST is payable by supplier (Nitro Co.)] Nil Total taxable value of supply on which tax is to be paid by Malhar Corporation under reverse charge Nil
Topics: Charge of GST
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