Page 7 - Chap24Computation of GST

(ii) The company supplied goods worth 50 crore to ABC Ltd. in UK under a letter of undertaking ₹
(LUT). The total export proceeds are received in the month of August 20XX itself; 30 crore in ₹
foreign currency and balance 20 crore in Indian rupees. ₹
(iii) The company provided consulting services to Sherpa & Sons in Nepal for 30 crore under a LUT. ₹

The entire consideration is received in Indian rupees in the month of August 20XX itself, with the
permission of RBI.
(iv) The turnover includes supply of goods worth 10 crore to Shanghai Jianguo Trading Company ₹
Ltd., a company based in China. As per the sale contract, the goods were to be assembled at

Shanghai Jianguo Trading Company Ltd.’s office in Gurugram, Haryana. The payment of the
goods is received in convertible foreign exchange in the month of August 20XX itself.
(v) Goods worth 20 crore are supplied under a LUT to DEF Pvt. Ltd. located in a SEZ in the State of ₹
Uttar Pradesh.

(vi) Goods worth 40 lakh were being procured from a vendor in Japan. While the goods were in ₹
transit, the company secured an order for the said goods for 50 lakh from a buyer in Thailand. ₹
Thus, the goods were directly sent to Thailand without entering India.
(vii) The company owns three immovable properties in Noida. The first building is let out for running

a printing press at 10 lakh per month. The second building is let out for residential purpose to ₹
unregistered person at 5 lakh per month. The third building is let out to a Cold Storage operator ₹
at 5 lakh per month. The cold storage operator sub-lets the building as a warehouse to store ₹
potatoes.

(viii) The remaining turnover comprised of taxable goods sold within the State and outside the State
in the ratio of 3:2.
Total turnover of 256 crore includes the turnover referred to in points (i) to (vii) above. ₹

In addition to above –
(i) the company transferred its stock (taxable goods) from Noida to Delhi branch without any
consideration; the value declared in the invoice is 4.5 crore (exclusive of GST). The cost of ₹
production of such goods is 10 crore. Such stock is sold to independent buyers at 15 crore ₹ ₹

(exclusive of GST).
(ii) the company had sent goods worth 12 crore (exclusive of GST) to M/s Sharma Traders in ₹
Haryana on approval basis on 15th January, 20XX, 15th February 20XX & 15th March 20XX ( 4 ₹
crore each month). Goods sent during all the three months are approved in the month of

September 20XX.
Compute the GST liability [CGST & SGST or IGST, as the case may be] of Skylark Pvt. Ltd.,
Noida for the month of August 20XX. Make suitable assumptions wherever required.
Assume the rates of taxes to be as under:

CGST SGST IGST
Goods 6% 6% 12%
Services 9% 9% 18% [CA Final RTP May 2020]

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