Earthovia Ltd., a registered entity under GST in the State of Maharashtra, is engaged in making various supplies. It provides the following…

Computation of minimum net GST payable in cash for the month of April S. No. Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) Output tax liability (i) Information technology services provided to unrelated clients located in foreign countries. In all cases, the consideration has been received in convertible foreign exchange [The activity is an export of service in terms of section 2(6) of the IGST Act, 2017 as- the supplier of service is located in India; the recipient of service is located outside India; place of supply of service is outside India (in terms of section 13(2) of the IGST Act, 2017); payment for the service has been received in convertible foreign exchange or in Indian rupees wherever permitted by the RBI; and supplier of service and recipient of service are not merely establishments of distinct person. Export of services is a zero-rated supply in terms of section 16(1)(a) of the IGST Act, 2017. A zero-rated supply can be supplied without payment of tax under a LUT in terms of section 16(3)(a) of that Act. 1 ] 20,00,000 - - Nil (ii) Supply of 50 bluetooth speakers [It is an inter-State supply since place of supply here is the location where the movement of goods terminates, viz. Hyderabad. Further, supply of bluetooth speaker with charging cable is a composite supply, chargeable to tax at the rate applicable to the principal supply (viz. supply of bluetooth speakers) i.e.,18%.] 8,72,000 [8,00,000 + 72,000] - - 1,56,960 [8,72,000 × 18%] (iii) Intra-State supply as Direct Selling Agent (DSA) [Taxable under forward charge. Reverse charge mechanism is not applicable since services are provided by a body corporate and not by an individual DSA.] 3,80,000 34,200 [3,80,000 × 9%] 34,200 [3,80,000 × 9%] - (iv) Passenger transportation service [Passenger transportation service provided for tourism purpose, in a vessel between places located in India is taxable. Further, the place of supply of passenger transportation service to an unregistered person, shall be the place where the passenger embarks on the conveyance for a continuous journey. Thus, in the given case, place of supply is Maharashtra.] 1,20,000 10,800 10,800 - (v) Supply of goods to an agent [Value of inter-State supply of goods to agent shall be: (i) Open Market Value (₹3,00,000) or (ii) 90% of the price of goods of like kind and quality charged by recipient to unrelated customer [₹ 2,88,000 (3,20,000 × 90%)], at the option of supplier, in terms of rule 29 2 ]. 2,88,000 - - 51,840 [2,88,000 × 18%] (vi) Inter-State transfer of taxable items to Kerala branch [Since recipient is not eligible for full ITC and goods are not intended for further supply as such by the recipient, value of supply of goods to branch shall be open market value, in terms of rule 28.] 3,00,000 - - 54,000 [3,00,000 × 18%] Total output tax 45,000 45,000 2,62,800 Less: ITC available for set off [Refer note below] 36,000 36,000 36,000 Net GST payable 9,000 9,000 2,26,800 Add: GST payable under reverse charge [Tax on silk yarn purchased by a registered person from any person who manufactures silk yarn from raw silk.] 36,000 36,000 Minimum net GST payable in cash 45,000 45,000 2,26,800 Note - Computation of eligible ITC available for set off S. No. Particulars Amount (₹) CGST (₹) SGST (₹) IGST (₹) Silk yarn purchased [Intra-State supply since place of supply is location where movement of goods terminates, viz. Maharashtra. Further, ITC on goods to be used in course or furtherance of business is available.] 4,00,000 36,000 [4,00,000 × 9%] 36,000 [4,00,000 × 9%] - Truck purchased [ITC of truck purchased is not available in terms of section 17(5) since depreciation has been claimed on the GST component.] 14,00,000 - - - Fees paid to a Chartered Accountant [It is inter-State supply since place of supply is Maharashtra. Further, services of the Chartered Accountant are being used in the course/furtherance of business and thus, credit of input tax paid on such service is available.] 2,00,000 - - 36,000 [2,00,000 × 18%] Eligible ITC available for set off 36,000 36,000 36,000