Parikh Industries Ltd., registered under GST in Ahmedabad, Gujarat, is engaged in manufacturing of electric bicycles. On 1st October 2025, the…

CA Final · Indirect Tax Laws · PYQS · May 2026
Parikh Industries Ltd., registered under GST in Ahmedabad, Gujarat, is engaged in manufacturing of electric bicycles. On 1st October 2025, the company bought 100 VIP tickets for 5,000 each for an upcoming final cricket match to be played on 30th October, 2025. The company distributes these tickets complimentary as under: Sr. No. Particulars (i) 20 tickets to top 5 clients (not related) as a goodwill gesture. (ii) 2 tickets each to 15 dealers (not related) as part of a scheme where dealers were promised to 2 complimentary tickets of the final cricket match if they achieved 50% more than their actual half yearly target. (iii) 15 tickets to Mr. Surendra, marketing executive as performance reward. (iv) 20 tickets to Mr. Patel, accounts executive as part of 'Family Sports Day' benefit defined in the employment letter. (v) 15 tickets to 15 employees as performance reward. No other complimentary benefits given to these employees till date. Compute the value of the taxable supply under the GST law in each of the above case separately along with correct legal provisions for the same in brief.

Suggested Answer and Working Notes:

Computation of value of taxable supply Particulars Value (₹) 20 tickets to top 5 clients [Not a supply since tickets are given without consideration to unrelated persons and it is not covered under Schedule I.] Nil 2 tickets each to 15 dealers [Not a supply since transaction is being undertaken without consideration and is not covered under Schedule I.] Nil 15 tickets to Mr. Surendra, marketing executive as performance reward [Tickets given without consideration to employee exceeding - 50,000 in a financial year are deemed as supply under Schedule 1.] 75,000 20 tickets to Mr. Patel, accounts executive [Services provided by an employee to employer in course of his employment are neither supply of goods nor as supply of services. Nil 15 tickets to 15 employees as performance reward [Not a supply since tickets given without consideration to employee upto 50,000 in a financial year are not deemed as supply.] Nil Value of taxable supply 75,000

Topics: Supply Under GST

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