Max.

Marks 35 IDT CA FINAL – PART 1 Time Allowed - 1 Hr

Division A: Multiple Choice Questions:

1. M Ltd, a supplier of air conditioners, is registered in GST in the State of Maharashtra. It has a policy to gift an
air conditioner to its employees [residing in Gujarat] at the end of a financial year in terms of the employment
contract. The company installs such air conditioners at the residence of the employees.
During the current financial year, the company gifted its employees 150 air conditioners and got the air
conditioners installed at the residence of these employees. The total open market value of such air conditioners
is ` 52.50 lakh (excluding GST). The tax rate on such air conditioners is 28% (14% CGST, 14% SGST and 28% IGST).
Compute the GST liability of M Ltd., if any.
(a) ` 7,35,000 - CGST, ` 7,35,000 – SGST
(b) ` 14,70,000 – IGST
(c) Nil
(d) ` 7,35,000 - IGST
(2 MARKS)
2. Mr. Lal, a registered person under GST, was the proprietor o f M / s Spiceton Restaurant.

He died and left behind his wife and son, on 15th August.
His son – Mr. Pal - wants to continue the business of the deceased father.
The GST consultant of M/s Spiceton Restaurant gives advice to Mr. Palas to how he can continue the
business of his deceased father.
Which of the following options is correct in accordance with the provisions of GST law?
(a) Mr. Pal should apply for a new registration under GST in the name M/s Spiceton Restaurant under his own
PAN w.e.f. the date of succession and file Form GST ITC 02 for transfer of ITC to the new entity.
(b) Mr. Pal can get the authorized signatory changed by approachingto the Proper Officer and can
continue the same business.
(c) Mr. Pal should close the old firm and start new business under different name.
(d) Mr. Pal should do the business with his mother as the new proprietor of the M/s Spiceton Restaurant,
and Mr. Pal should act as a Manager.
(2 MARKS)
3. Tobacco is:
(a) exempt from GST
(b) subject to both GST and central excise duty
(c) outside the realm of GST
(d) subject to GST only
(1 MARK)
4. Which of the following are covered under RCM u/s 9(3)?
1. Sponsorship service provided by Religious events Trust to Mr. Aakash
2. Remuneration paid by company to Whole time director
3. Services by business facilitator to banking Co.

a. 2,3
b. 1,2
c. Only 3
d. Only 1
(2 MARKS)
Division B:

Q.1 On what matters the GST council makes recommendations to Union and States? (5 MARKS)
Q.2 Mohandas International entered into a transaction for import of goods from a vendor located in Italy. Due to financial
issues, Mohandas International was not in a situation to clear the goods upon payment of import duty. Mohandas International
sold the goods to Radhakrishnan Export House by endorsement of title to the goods, while the goods were in high seas. The
agreement further provided that Mohandas International shall purchase back the goods in future from Radhakrishnan Export
House. Discuss the taxability of transaction(s) involved, under the GST law. (4 MARKS)
Q.3 Decide with reason whether the registration is required under CGST Act, 2017 in the following independent cases:
(i) A casual taxable person (CTP) has provided inter-State supply of notified products being textiles hand printing amounting to `
19.25 lakh during the month of January, 2023. Those products were made by craftsmen by both hand and machines equally.
CTP had obtained PAN and generated e-way bill for supply.
(ii) Mr. Bantu of Delhi doing trading business across India and his intra-State turnover details are as below,
(1) Taxable supplies made from Delhi - ` 18 lakh.
(2) Exempt supplies made from Andhra Pradesh - ` 10 lakh.
(3) Both taxable and exempt supplies made from Tamil Nadu - ` 5,00,000 and ` 6,00,000 respectively. (5 MARKS)

Q.4 B & D Company, a partnership firm, in Nagpur, Maharashtra is a wholesaler of a taxable product 'P' and product 'Q'
exempt by way of a notification. The firm supplies these products only in the eastern part of Maharashtra. All the procurements
(both goods and services) of the firm are from the suppliers registered under regular scheme in the State of Maharashtra. The
firm pays tax under composition scheme.

B & D Company has furnished the following details with respect to its turnover (exclusive of taxes):

Particular Turnover of the quarter Turnover for the quarter

ended 30th June (`) ended 30th September (`)
60,00,000 50,00,000
‘P’
17,65,000 17,00,000
‘Q’

The extract of the only bill book maintained by the firm showed the following details-

Bill No. Date Value of products (exclusive of taxes

‘P’ (`) ‘Q’ (`) Total (`)
2306 1st October 2,00,000 3,000 2,03,000
2307 1st October 1,36,000 2,250 1,38,250
2308 2nd October 67000 39,250 1,06,250
2309 3rd October 58,750 33,750 92,500
2310 5th October 1,00,000 - 1,00,000
2311 6th October 94,000 6,000 1,00,000
2312 6th October - 17,000 17,000
2313 8th October 50,000 6,000 56,000
2314 9th October 60,000 9,000 69,000
2315 ………………… ………………… ………………… …………………
……. ………………… ………………… ………………… …………………

Further, B & D Company paid freight of ` 1,40,000 to Goods Transport Agency during the period April to October. Assume
equal amount of freight is paid each month on the 10th day of each month. Also, assume that the goods for which the
freight is paid on 10th day of the month are transported between 11th to 20th day of the month.
All the above amounts are exclusive of taxes, wherever applicable.
Compute the GST liability (ignoring ITC provisions) of B & D Company for the period April to October under composition
scheme under sub-sections (1) and (2) of section 10 showing calculations for each quarter separately.
Note: Make suitable assumptions wherever required. Rate of CGST and SGST on service of transportation of goods by
GTA is 2.5% each. GTA not opted for FCM. Stock is valued at cost price. (9 MARKS)

Q.5 LMN Pvt. Ltd., Coimbatore, Tamil Nadu, exclusively manufactures and sells product ‘X’ which is exempt from GST vide a
notification issued under relevant GST legislations. The company sells product ‘X’ only within Tamil Nadu and is not
registered under GST. Further, all the inward supply of the company are taxable under forward charge. The turnover of
the company in the previous year was ` 45 lakh. The company expects the sales to grow by 30% in the current year. The
company purchased additional machinery for manufacturing ‘X’ on 1st July. The purchase price of the capital goods was
` 30 lakh exclusive of GST @ 18%. However, effective from 1st November, exemption available on ‘X’ was withdrawn by
the Central Government and GST @ 12% was imposed thereon. The turnover of the company for the half year ended on
30th September was ` 45 lakh. Examine the above scenario and advise LMN Pvt Ltd. whether it needs to get registered
under GST. (5 MARKS)