M/s Sugam & Co., a partnership firm registered under GST in the State of Karnataka, is an Original Equipment Manufacturer (OEM) engaged in the…

M/s Sugam & Co., a partnership firm registered under GST in the State of Karnataka, is an Original Equipment Manufacturer (OEM) engaged in the manufacture and supply of motor vehicles, components and spare parts and provision of related services. It has a single GST registration in Karnataka, with its Bengaluru factory declared as its principal place of business and its Mysuru warehouse declared as an additional place of business. During the month of August, the firm made the following outward B2C supplies (supply to an unregistered person): (a) to Mohan for ₹1,49,000 – Inter-State (b) to Kishan for 99,000 – Inter-State (c) to Rajesh for₹ 1,10,000 – Intra-State During the month of September: (1) It provided sponsorship services to Top Notch Cricket League Private Limited for 4,00,000. (2) It paid rent of ₹ 1,00,000 per month to the Ministry of Railways (Indian Railways) for taking on rent a ground for parking cars. During the month of October: (3) They replaced parts under warranty valuing ₹ 5,00,000 to their customers and did not charge any consideration for the said replacement. ITC component related to the said replacement was *90,000. (4) They supplied a car to a friend of a partner at a discounted value of 6,70,000 against the open market value of ₹ 9,00,000. (5) Availed general insurance for motor vehicles in the showroom as well as in transit and GST payable on the same was ₹ 1,20,000. In December, M/s Sugam & Co. transported a consignment for weighing purpose with proper delivery challan to a weigh bridge situated at 22 kms from its Bengaluru factory. Roving Squad officer detained the vehicle and alleged that the consignment was not accompanied by e-way bill and was liable to penal provisions. In January, M/s Sugam & Co. decides to obtain a separate registration for its Mysuru warehouse as a distinct place of business within the same State (Karnataka), in terms of section 25. At the time of obtaining this separate registration, the Bengaluru (original) registration has an unutilized ITC balance of 12 lakh in its electronic credit ledger. The value of assets held by the Bengaluru unit is ₹ 80 lakh (of which ITC has actually been availed on assets worth 65 lakh only) and the value of assets held by the Mysuru unit is 20 lakh (of which ITC has actually been availed on assets worth ₹ 15 lakh only). All figures given are exclusive of GST, wherever applicable, except stated otherwise.