HydroCool Enterprises, a partnership firm, is a supplier of water coolers located in Kota, Rajasthan, and is duly registered under the GST law in…

HydroCool Enterprises, a partnership firm, is a supplier of water coolers located in Kota, Rajasthan, and is duly registered under the GST law in the State of Rajasthan. It undertakes both intra-State and inter-State supplies in the ordinary course of trade. In the month of January, HydroCool Enterprises supplied water coolers to ChillPure Traders, Kerela, an unrelated party, for a total consideration of 2,95,000 (inclusive of GST @ 18%). In addition to this monetary payment, ChillPure Traders also provided certain materials to HydroCool Enterprises as an additional consideration. These materials were valued at 10,000 (exclusive of GST). At the same time, HydroCool Enterprises supplied water coolers of the same quality and specifications to another unrelated customer for a price of 2,97,360 (inclusive of GST @ 18%). HydroCool Enterprises also entered into a contractual arrangement with Apexion Innovations (Bengaluru, Karnataka), an Information Technology service provider, for availing data backup and database access services. The details of said services availed are as follows: Particulars Date Apexion Innovations raised an invoice on HydroCool Enterprises for data backup and database access service. 21 st February HydroCool Enterprises issued and dispatched a demand draft as payment. 25 th February Demand draft was received and recorded in the books of Apexion Innovations. 28 th February Apexion Innovations encashed the demand draft 3 rd March Apexion Innovations provided database access to HydroCool Enterprises. 4 th March onwards In the meanwhile, the rate of GST is changed from existing 18% to 5% from 1 st March. In February, HydroCool Enterprises got a favourable advance ruling order on a particular issue from the Authority for Advance Ruling, Rajasthan. The application was filed by HydroCool Enterprises through its registered place of business in Rajasthan. In the month of March, as the financial year drew to a close, HydroCool Enterprises launched a special performance-linked incentive scheme to motivate its sales team. Under this scheme, each employee who achieved the targeted sales milestone was rewarded with a total incentive payment of 75,000. The incentive was part of the employees’ salary structure, formed part of employment remuneration and was subject to applicable tax deduction at source (TDS) under the Income-tax Act. HydroCool Enterprises intended to transfer the business as going concern to Dhruv & Sons (DS) on 31 st March. As per the terms of transfer, HydroCool Enterprises will transfer all the business assets worth - 15,00,000 and all the liabilities valued at 20,00,000. Balance of ITC as on 31 st March is 40,000. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 7 to 11 below: