CA INTER NOV- 24 (POST BATCH)

SUBJECT – INDIRECT TAX (GST)

TOPIC – VALUE OF SUPPLY ,ACCOUNTS AND RECORDS,EWAY
BILL,EXEMPTION,ITC,TDS AND TCS
TIME: 1.5Hr TOTAL MARKS:50
Part – I Multiple Choice Question
1. ABC Ltd. generated e-way bill on 12th February at 14.00 hrs. It used over- dimensional cargo for
a distance of 100 km. When the validity period of the e -way bill will expire?
(a) Midnight of 13th-14th February
(b) Midnight of 17th-18th February
(c) At 14.00 hrs. of 13th February
(d) At 14.00 hrs. of 14th February (1 Marks)

2.With reference to the provisions relating to transaction value under section 15 of the CGST Act,
2017, which of the following is not correct?
(a)Central excise duty will not be included in transaction value for supply of tobacco.
(b)Municipal taxes paid by tenant will be included in transaction value for supply of renting
service.
(c)Entertainment tax included in movie ticket will form part of transaction value.
(d)Customer makes payment of freight which is payable by the supplier, directly to the service
provider. However, supplier does not include this amount in the invoice. Suchamount will be
included in transaction value of the supplier. (1 Marks)

3. Which of the following statements are true with respect to accounts and records?
(1) All accounts and records are to be retained for 6 years.
(2) Stock record is to be maintained by all registered dealers except the dealers registered under
composition scheme.
(3) Stock record is to be maintained by all registered dealers including composition dealers.
(4) Monthly production records are to be maintained by all dealers except the dealers who have
taken option for composition.
(5) Monthly production records are to be maintained by all dealers including composition dealers.
(6) Records are to be maintained at principal place of business.
(a) 1, 2, 5, 6
(b) 1, 3, 5
(c) 1, 3, 4
(d) 1, 2, 4, 6 (2 Marks)

4.ITC on is not blocked.

(a)trucks purchased by a company for transportation of its finished goods
(b)aircraft purchased by a manufacturing company for official use of its CEO
(c)general insurance taken on a car used by employees of a manufacturing company for official
purposes
(d)cars purchased by a manufacturing company for official use of its employees (1 Marks)

5. M/s Gyaan Publishing House, registered under GST in Delhi, is engaged in printing and selling
of books as well as trading of stationery items. He has provided following information of a
consignment which is to be supplied to Mumbai: -
(i) Taxable value of supplies indicated on tax invoice: ₹ 35,000/-
(ii) Value of exempted supplies: ₹ 8,000/-
(iii) Value of goods to be sent to job worker on delivery challan: ₹ 15,000/-
Calculate the consignment value for the purpose of generating e-way bill for inter-State supply of
goods. Assume rate of tax on taxable goods to be 18%.
(a) ₹ 35,000/-
(b) ₹ 50,000/-
(c) ₹ 56,300/-
(d) ₹ 64,300/- (2 Marks)

6. Which of the following statements are true w.r.t. accounts and records under GST laws?
(a) All accounts and records are to be retained for 5 years.
(b) Stock record is to be maintained by all registered dealers except the dealers registered under
composition scheme.
(c) Stock record is to be maintained byall registered dealers including composition dealers.
(d) Monthly production records are to be maintained by all dealers except the dealers who have
taken option for composition. (1 Marks)

7. Kala Niketan School is an educational institution providing pre-school education and education
up to higher secondary school. Which of the following services are exempt if provided to Kala
Niketan School?
(i) Transportation of students, faculty and staff
(ii) Catering services
(iii) Cleaning services performed in such educational institution
(a) (i)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii) (2 Marks)

8. Which of the following service is not exempt under GST?

(a) Loading and unloading of paddy
(b) Loading and unloading of sugarcane
(c) Loading and unloading of tea bags
(d) Loading and unloading of potato. (1 Marks)

Part – II Descriptive Question

Q1. Jino Enterprises, a partnership firm is a regular taxable person registered in Guwahati, Assam
and is engaged in supply of Air conditioners and its accessories as well as air conditioned
repairing services. Details of their various activities for the month of October 2023 are as follows:
(i)Intra State supply of Air conditioner to customers in Assam. Freight is separately charged in
invoices for delivery of goods at customer's doorstep.

Rs.
Valueofgoods 4,00,000
Valueoffreightchargeschargedseparatelyinabove 1,00,000
invoices.
(ii)Intra State supply of repairing services wherein apart from charging service charges, cost of
parts/ spares provided to customers is also charged and consideration for the same is separately
mentioned in the invoices.
Rs.
Valueofservicescomponentofinvoices 3,00,000
Valueofparts/sparescomponentininvoices 50,000
(iii)In order to enhance their sales and to clear the stock of old models of air- conditioner, Jino
Enterprises made combo offers to customers wherein, if a customer purchases an Air-conditioner
along with a stabilizer, the same is offered at a combo price of Rs. 20,000 as against the original
priceof Rs. 30,000 (Air-conditioner Rs. 22,000 & stabilizer Rs. 8,000) if these are purchased
separately. During October, 2023, Jino Enterprises had made inter-State supply of 10 numbers of
such combo products.
(iv)Purchased business class air tickets for intra State travel from Guwahati Airport, Assam to
Dibrugarh Airport, Assam for its executive employees relating to business of the concern. Basic air
fare was Rs. 40,000 and airlines charges GST @ 2.5% CGST, SGST each on basic freight, in case the
same is applicable.
Additional Information:
(a)All the figures mentioned above are exclusive of taxes.
(b)In respect of few of the invoices relating to F.Y. 2022-2023, involving ITC of CGST Rs. 20,000,
SGST of Rs. 20,000, IGST Rs. 80,000 was not taken earlier. Jino Enterprises now want to avail credit
in respect of such invoices in the current month.
(c)The rates of GST applicable on various supplies are as follows:
NatureofSupply CGST SGST IGST
Air-Conditioner,Partsand 6% 6% 12%
accessories(ExceptStabilizers)
Services 9% 9% 18%

Stabilizers 9% 9% 18%

Freight 6% 6% 12%

Calculate the amount of minimum CGST, SGST & IGST tax payable in cash by Jino Enterprises for
the month of October, 2023.
Note: Working Notes (legal provisions) should form part of your answer. (12 Marks)

Q2. Granites Textiles Ltd. purchased a needle detecting machine on 8th July, 2022 from Makhija
Engineering Works Ltd. for ₹ 10,00,000 (excluding GST) paying GST @ 18% on the same. It availed
the ITC of the GST paid on the machine and started using it for manufacture of goods. The
machine was sold on 22nd October, 2023 for ₹ 7,50,000 (excluding GST), as second hand machine
to LT. Pvt. Ltd. The GST rate on supply of machine is 18%.
State the action which Granites Textiles Ltd. is required to take, if any, in accordance with the
statutory GST provisions on the sale of the second-hand machine. (6 Marks)

Q3. Orip Electricals Ltd., a registered supplier of air-conditioners, is required to send from
Mumbai (Maharashtra), a consignment of parts of air-conditioner to be replaced under warranty
at various client locations in Gujarat. The value of consignment declared in delivery challan
accompanying the goods is Rs. 60,000. Orip Electricals Ltd. claims that since movement of goods
to Gujarat is caused due to reasons other than supply, e-way bill is not mandatorily required to be
generated in this case.
You are required to examine the technical veracity of the claim made by Orip Electricals Ltd.
(5 Marks)

Q4. Explain the provisions relating to period of retention of accounts as provided under section 36
of CGST Act, 2017? (5 Marks)

Q5. From the following information of independent cases, your expert advice, with appropriate
reasoning, is sought on the applicability of TDS/TCS provisions of the CGST Act, 2017. You shall
also quantify the amount of TDS/TCS, as the case be, if the same is applicable.
(i)Top Fashions, a designer cloth dealer and registered in the State of West Bengal, effected supply
through 'QUICK DEAL', an electronic commerce operator. Net value of taxable intra-State
supplies effected for the month of October 2019 was Rs. 1,50,000.
(ii)M/s Super Builders, a registered supplier in Tamil Nadu, was awarded a works contract by
Government of Tamil Nadu amounting to Rs. 4,30,000. Of this, value of exempt supply was Rs.
1,00,000.
(iii)Tasty Caterers, a· registered supplier of Kerala, provided catering services in Kochi, Kerala to
Government of Andhra Pradesh for its annual training camp held for its staff. Value of said
services was Rs. 4,50,000. (6 Marks)

Q6. (i) “Richmondkidz” is a Play School located in Delhi. Richmond Kids has outsourced the
catering services for supply of food and drink in the canteen of Play School to Ashoka Caterers,
Delhi for a consideration of Rs. 8,00,000 per annum. Examine whether supply of food and
drink/catering servicesfrom Ashoka Caterers to “Richmond kidz” is exempt from GST:
(ii)Balaji Hospital, a clinical establishment located in Tirupati, is specialised in cardiac treatment.
The hospital has its own canteen – Healthy Foods. The canteen serves the food and drink to the in-
patients as advised by the doctors/nutritionists of the hospital. Apart from this, other patients
(who are not admitted) or attendants or visitors of the in-patients also take food and drink from
the canteen. Examine whether supply of food and drink/catering services to the in- patients and
other patients (who are not admitted) or attendants or visitors of the in-patients is exempt from
GST: (5 Marks)