Page 19 - Chap24Computation of GST

services of accepting deposits, extending loans or advances.

Ü Therefore, value of exempt supply in the given case will be
- the sum of value of output supply on which tax is payable under RCM (₹ 6,00,000),
- value of sale of building (₹ 2,50,000/2 x 100 = ₹ 1,25,00,000),
- value of sale of shares (1% of ₹ 2,50,00,000 = ₹2,50,000),
- supply of Product Gamma (₹ 1,00,00,000) &

- supply of petrol and diesel (₹ 80,00,000 -₹ 5,00,000 -₹ 12,50,000 = ₹ 62,50,000),
which comes out to be ₹ 2,96,00,000.
Ü Total turnover in State = ₹ 6,64,00,000 i.e.[₹ 50,00,000 + ₹ 1,00,00,000 + ₹ 50,00,000 +
₹ 50,00,000 + ₹ 1,00,00,000 + ₹ 20,00,000 + (₹ 2,50,000/2 x 100 = ₹ 1,25,00,000) + ₹

10,50,000 + (1% of ₹ 2,50,00,000 = ₹ 2,50,000) + (₹ 1,00,00,000 – 12,50,000 = ₹
87,50,000) + (₹ 80,00,000 -₹ 5,00,000 -₹12,50,000= ₹ 62,50,000) + ₹ 6,00,000]
11 Ü Legal services are not eligible for exemption provided under the exemption Notification as the
turnover of the business entity (Adityanath Private Limited) in the PYF exceeds ₹ 20 lakh.

Ü As per section 16(1) of the CGST Act, ITC of tax paid on input services used in the course or
furtherance of business is available.
Ü Thus, Full credit is available as these services are exclusively used for effecting taxable
supply.

CCP 24.01.06.00
Sudarshan Ltd., a registered supplier under GST in the State of Kerala, is engaged in providing a
bouquet of goods and services (other than renting of cars). It provides the following information for
the month of January:

S.No. Particulars (`)
OUTWARD SUPPLY:
i Distributed 1,000 free gifts (electronic items worth ₹ 5,000 each purchased Nil

from unregistered local vendors) to its customers within Kerala in the month of
January to promote sales
ii Supplies a consignment of goods in the territorial waters to Dhruvtara 6,00,000
Enterprises. The said territorial waters is located at a distance of 11 nautical

miles from the baseline of State of Kerala and 12 nautical miles from the baseline
of State of Tamil Nadu.
iii Advance received during the month for future intra-State taxable supply 7,00,000
[Advance of ₹ 2,10,000 was related to supply of goods and the rest was related

to service]
iv Provided pure labour services of construction of single commercial unit located 15,00,000
in Mumbai not forming part of any residential complex to a customer in Mumbai
(Maharashtra).

INWARD SUPPLY:
i Monthly rent paid to Kerala State Government for an office taken on rent 6,00,000
ii Purchased raw material from Saksham Steels Ltd., registered in the State of 15,00,000
Andhra Pradesh

iii Purchased a new truck from a dealer in Cochin, Kerala for transport of materials 12,00,000

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 491