Master Test - 03 UDESH REGULAR May 24(GROUP-1) 26/03/2024

Mark : 50 Time : 90 Min

Master Test – 3

Case Study
Gunjan & Co., a partnership firm, is engaged in retail trade since 1st April. The firm became liable for registration on 1st
October. However, it applied for registration on 10th October. It had inputs held in stock, semi-finished and finished
goods. The firm was granted certificate of registration on 5th November.
Gunjan & Co. needs to transport one consignment to the transporter and then to the consignee. The distance, within the
same state, between godown of the firm and the transporter is 20 kms and from the distance from the transporter to the
consignee is 99 kms, respectively.
In the month of November, the firm received 80 invoices for various inward supplies on which total GST paid was Rs 8
lakh. However, only 60 invoices involving GST of Rs 7.70 lakh was uploaded in GSTR-1 by the respective suppliers.
Also, while filing return for the month of November, the firm generated E-Challan on 5th December for making payment
of GST through RTGS of their bank.
All the supplies referred above are intra-State unless specified otherwise. Conditions applicable for availment of ITC are
fulfilled subject to the information given above.
From the information provided above, choose the most appropriate answer for the following questions –

1. 1 Determine the effective date of registration of Gunjan & Co.?

(2 Marks)
(1) 1st April
(2) 1st October
(3) 10th October
(4) 5th November

2. 2 Gunjan & Co. is eligible to claim ITC in respect of inputs held in stock as on –
(2 Marks)
(1) 30th September
(2) 1st October
(3) 10th October
(4) Not eligible to claim ITC

3. 3 Which of the following statements is true in respect of furnishing of details of conveyance in Part B of e way bill?
(2 Marks)
(1) Part B need not be filed in respect of transport of consignment from Godown of Gunjan & Co. to transporter
location.
(2) Part B need not be filed in respect of transport of consignment from transporter location to consignee’s
location.
(3) Information in Part-B is neither required in transport of consignment from Godown of Gunjan & Co. to
transporter location nor from transporter location to consignee’s location.
(4) Information in Part-B is mandatory in in transport of consignment from Godown of Gunjan & Co. to
transporter location and from transporter location to consignee’s location.

4. 4 Compute the amount of ITC that can be claimed by Gunjan & Co for the month of November?
(2 Marks)
(1) Rs 7,50,000
 (2) Rs 7,70,000
(3) Rs 8,00,000
(4) Rs 6,75,000

5. 5 Determine the validity of E-Challan generated by Gunjan & Co. for payment of taxes for the month of
November?
(2 Marks)
(1) 5th December
(2) 15th December
(3) 20th December
(4) 31st December

6. Mahendra is an electronic goods dealer paying tax under composition scheme. Which of the following records is he
not required to keep and maintain?
(2 marks)
(1) Goods written off
(2) Balance of finished goods
(3) Goods distributed as gifts and free samples
(4) All the above

7. Kutch Refineries supplies LPG to XYZ Ltd. by a pipeline under a contract. The terms of contract are:
(i) Monthly payment of Rs 2 lakh to be made by the recipient on the fifth day of the month.
(ii) A quarterly statement of the goods dispatched and payments made will be issued by the seventh day of the
month succeeding the relevant quarter.
August 5, September Payments of Rs 2 lakh made in each month.
October 5
October 7 Statement of accounts issued by supplier for the quarter July – September.
October 17 Differential payment of Rs 56,000 received by the supplier for the quarter July –
September as per statement of accounts.
Which of the following statements is true?
(2 Marks)
(1) Invoice will be issued on August 5, September 5 , October 5 and October 7 .
(2) Invoice will be issued on August 5 , September 5 and October5.
(3) Invoice will be issued on August 5 , September 5 , October 5 , October 7 and October 17.
(4) None of the above

8. The Sanitation Department of the Government of UP has procured taxable services under a contract of value ₹ 6
lakh (excluding GST @ 18%) from ABC & Co of Kanpur, not registered under GST. Determine the amount of
TDS that will need to be deducted u/s 51 while making payment under the contract.
(2 Marks)
(1) Nil
(2) 6,000
(3) 12,000
(4) 1,08,000
 Descriptive Questions
Question No. 1 is compulsory.
Attempt any two questions from the remaining three questions.

1. Nexus Tech Ltd., a registered supplier of Kolkata is a manufacturer of Cars.

Its outward supplies (exclusive of GST) for the month of March, 2023 are as follows:
S. No. Particulars Amount (Rs.)
(i) Inter-State 85,00,000
(ii) Intra-State 15,00,000
Applicable rates of CGST, SGST and IGST on outward supply are 9%, 9%, and 18% respectively. Details of GST
paid on inward supplies during the month of March,2023 are as follows:
S.No. Particulars CGST paid (Rs.) SGST paid (Rs.)
Raw material A
(i) (of which 70% of inputs procured were used and 30% were 60,000 60,000
in stock at the end of the March,2020)
Raw material B
(of which 90% material received in the factory and remaining
(ii) material completely damaged due to a road accident on the 50,000 50,000
way to the factory. There was no negligence on the part of
Nexus Tech Ltd.)
(iii) Construction of pipelines laid outside the factory premises. 30,000 30,000
Insurance charges paid for trucks used for transportation of
(iv) 55,000 55,000
goods.
Additional Information:
 Opening balance of any input tax credit of IGST Rs 15 lakh and all the conditions necessary for availing the
input tax credit (ITC) have been fulfilled.
 Details of GST paid on inward supplies are available in GSTR-2A except for item (i) i.e. Raw Material A, for
which supplier has not filed its GSTR - 1 for the month of March 2023, hence corresponding input tax credit
(ITC) is not reflected in GSTR-2A of Nexus Tech Ltd. in March,2023.
Compute the following:
1. Amount of eligible input tax credit (ITC) available for the month of March,2023.
2. Minimum net GST payable in cash, for the month of March, 2023 after using available input tax credit.
Working notes should form part of your answer.
(14 Marks)

2(a). Examine whether GST is payable in the following independent cases:

(i) Amar Jyoti Charitable trust, registered under section 10(23C) (v) of the Income- tax Act, manages a temple in
Shahdara, Delhi. It has given on rent a community hall, located within temple premises, to the public for
celebration of New Year evening. Rent charged is Rs 9,500.
(ii) Speed post services by the Department of Post to the Union Territory of Lakshadweep.
(iii) XY Ltd. has given on hire 7 trucks to Jaggi Transporters of Delhi (a goods transport agency) for transporting
goods in Central and West Delhi. The hiring charges for the trucks are Rs 6,200 per truck per day.
(5 Marks)

2(b). Rajesh Dynamics, having its head office in Chennai, carries on the following activities with respective turnovers in
a financial year.
Particulars Amount Rs
Supply of petrol at Chennai 18,00,000
Value of inward supplies on which tax is payable on reverse charge basis 9,00,000
Supply of transformer oil at Chennai 2,00,000
Value of branch transfer from Chennai to Bengaluru without payment of consideration 1,50,000
Value of taxable supplies at Manipur branch 11,50,000
Decide based on the above facts: The aggregate turnover of Rajesh Dynamics.
(5 Marks)
3(a). A Ltd. procured the following goods in the month of December, 2020.
Inward Supplies GST (Rs.)
Goods used in constructing an additional floor of office building 18,450
Goods given as free sample to prospective customers 15,000
Trucks used for transportation of inputs in the factory 11,000
Inputs used in trial runs 9,850
Confectionery items for consumption of employees working in the factory 3,250
Cement used for making foundation and structural support to plant and machinery 8,050
Compute the amount of ITC available with A Ltd. for the month of December 2020 by giving necessary
explanations. Assume that all the other conditions necessary for availing ITC have been fulfilled.
(5 Marks)

3(b). Mr. Vicky Frankyn, an unregistered famous author, received `3 crore of consideration from Shiv Bhawan
Publications (SBP) located in Indore for supply of services by way of temporary transfer of a copyright covered
under Section 13(1)(a) of the Copyright Act, 1957 relating to original literary works of his new book. He finished
his work & made available the book to the publisher, but has yet not raised the invoice.
Mr. Vicky Frankyn is of the view that SBP is liable to pay tax under reverse charge on services provided by him.
SBP does not concur with his view and is not ready to deposit the tax under any circumstances.
Examine whether the view of Mr. Vicky Frankyn is correct. Further, if the view of Mr. Vicky Frankyn is correct,
what is the recourse available with Mr. Vicky Frankyn to comply with the requirements of GST law as SBP has
completely refused to deposit the tax?
(5 Marks)

4(a). Mr. Shah, a consignor is required to move goods from Ahmedabad (Gujarat) to Nadiad (Gujarat). He appoints
Mehta Transporter for movement of goods. Mehta Transporter moves the goods from Ahmedabad (Gujarat) to
Kheda (Gujarat). For completing the movement of goods from Kheda (Gujarat) to Nadiad (Gujarat), Mehta
Transporter now hands over the goods to Parikh Transporter.
Explain the procedure regarding e-way bill to be followed by consignor and transporter as per provisions of GST
law and rules made there under.
(5 Marks)

4(b). With reference to GST law, Determine the place of supply with reasons in the following independent
circumstances:-
(i) Miss Kanika of Kolkata (West Bengal) visited to Jodhpur Law University (Rajasthan) and paid her college
fees by purchasing a demand draft from a bank located in the University campus. Miss Kanika did not have
any account with the bank.
(ii) Mizu Machine Ltd., registered in the State of Andhra Pradesh, supplied a machinery to Keyan Wind Farms
Ltd., registered in the State of Karnataka. However, this machinery was assembled and installed at the wind
mill of Keyan Wind Farms Ltd., which was located in the State of Tamilnadu.
(5 Marks)

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