Swagat Pvt. Ltd., a GST registered supplier located in Jaipur, Rajasthan is engaged in taxable supply of packaging goods and consultancy services.…

CA Intermediate · Taxation · MTP · September 2026
Swagat Pvt. Ltd., a GST registered supplier located in Jaipur, Rajasthan is engaged in taxable supply of packaging goods and consultancy services. It provides following details of various activities undertaken during the month of September: (A) Details of outward supplies: (1) Supply of goods of ₹ 18,00,000 to Shreya Enterprises, a registered person of Udaipur, Rajasthan. Further, received ₹ 50,000 from Shreya Enterprises towards freight charges (as agreed to deliver the goods at Shreya Enterprises' premises) which was not included in above value of supply. (2) Supply of goods worth ₹ 35,00,000 to Supreme Ltd., a registered person of Prayagraj, Uttar Pradesh. Further, the amount of ₹ 60,000 charged separately (not included above) from Supreme Ltd. on account of municipal taxes levied in relation to such outward supply. (3) Supply of services to Bhuwan Ltd., a registered person in Jodhpur, Rajasthan before discount worth ₹ 6,00,000. Further, discount of ₹30,000 which has been given at the time of supply of service and duly recorded in the invoice. (4) It delivered the goods worth ₹2,00,000 to Saral Solutions, a registered person located at Bikaner, Rajasthan on the direction of Guru Enterprise, a registered person of Mumbai, Maharashtra and tax invoice was issued by Swagat Pvt. Ltd. to Guru Enterprise of Mumbai, Maharashtra. (B) Details of inward supplies: (1) Purchased raw material goods worth ₹ 20,00,000 from Dhriti Ltd; a GST registered dealer, located at Kanpur, Uttar Pradesh. Goods worth ₹ 1,00,000 out of total purchases were not received during the month. (2) Purchased machinery for manufacturing process worth ₹ 2,00,000 from Diwakar Pvt. Ltd., a GST registered dealer, located at Bengaluru, Karnataka. Company has claimed depreciation under Income-tax Act, 1961 on full value of the machine, including the GST component. (3) Purchased truck worth ₹ 15,00,000 from GST registered dealer, located at Ajmer, Rajasthan for transportation of its goods. GST rate on truck is: CGST 9%, SGST 9%, IGST 18%. No depreciation is claimed under Income-tax Act, 1961 on the GST component. (4) Purchased car (having seating capacity of 7 persons) costing to ₹10,00,000 excluding GST from Naresh Automobiles Pvt. Ltd., a GST registered dealer, located at Ajmer, Rajasthan for use of its director for official purpose. GST rate on car: CGST 9%, SGST 9%, IGST 18%. (5) Purchased goods worth ₹ 5,00,000 from Carrybuild Ltd., a registered person of Jaipur, Rajasthan for construction of an additional floor of factory building, of Swagat Pvt. Ltd. Said amount is capitalised in the books of accounts. Opening balance of input tax credit as on the beginning of September - CGST ₹ 20,000, SGST₹ 50,000 and IGST ₹ 75,000. Rate of GST applicable on both inward and outward supply of goods & services: CGST 9%, SGST 9% and IGST 18%, except where otherwise provided. Notes: (i) All the figures mentioned above are exclusive of taxes. (ii) Subject to the information given above, conditions necessary for claiming ITC were complied with. (iii) All inward supplies are used for taxable goods only. (iv) Brief and suitable notes should form part of your answer. Calculate the amount of net minimum GST payable in cash by Swagat Pvt. Ltd. for the month of September.

Suggested Answer and Working Notes:

Computation of minimum net GST payable in cash by Swagat Pvt. Ltd. for the month of September Particulars Value of supply (₹) CGST @ 9% (₹) SGST @ 9% (₹) IGST @ 18% (₹) Output tax payable Intra-State supply of goods to Shreya Enterprises [Since freight is the liability of supplier, it is a composite supply and thus, freight charges are added to the value of principal supply.] 18,50,000 1,66,500 1,66,500 Nil Inter-State supply to Supreme Ltd. [Municipal tax is includible in value since it is a tax levied under a law other than GST law and is charged separately.] 35,60,000 Nil Nil 6,40,800 Intra-State supply to Bhuwan Ltd. [Place of supply is location of recipient. Discount given at the time of supply is deductible from the value since duly recorded in the invoice.] 5,70,000 51,300 51,300 Nil Inter-State supply to Guru Enterprise [Place of supply in case of bill to ship model is principal place of business of a third person at whose instructions the goods are delivered by supplier to recipient. Thus, it is considered as Inter State supply.] 2,00,000 Nil Nil 36,000 Total output tax 2,17,800 2,17,800 6,76,800 Less: ITC available [Refer note below] Nil Nil (4,17,000) [IGST credit to be utilized first towards payment of IGST.] CGST credit utilized for payment of CGST (1,55,000) Nil SGST credit utilized for payment of SGST Nil (1,85,000) Minimum net GST payable in cash 62,800 32,800 2,59,800 Working Note: Computation of ITC available Particulars Value (₹) CGST (₹) SGST (₹) IGST (₹) Opening balance 20,000 50,000 75,000 Inter-State purchase of raw material [ITC is not available where goods worth ₹ 1,00,000 since not received during the month.] 19,00,000 Nil Nil 3,42,000 [19,00,000 × 18%] Purchase of machinery [ITC is not available since depreciation has been claimed on the GST component.] 2,00,000 Nil Nil Nil Intra-State purchase of truck [ITC on motor vehicles used for transportation of goods is available.] 15,00,000 1,35,000 [15,00,000 × 9%] 1,35,000 [15,00,000 × 9%] Nil Purchase of car [ITC on motor vehicles for transportation of persons with seating capacity upto 13 persons (including the driver) is blocked, except when used for specified purposes.] 10,00,000 Nil Nil Nil Purchase of goods for construction of an additional floor [ITC on goods used for construction or immovable property (other than plant or machinery) on one's own account is blocked if capitalised in the books.] 5,00,000 Nil Nil Nil Total 1,55,000 1,85,000 4,17,000 Note - In above answer, where location of supplier and place of supply are in two different States, it is an inter-State supply and where location of supplier and place of supply are in same State, it is an intra-State supply.

Topics: Paper 3B: Goods and Services Tax

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