Practice Test - 04 CA Intermediate Udesh Regular (GROUP-1) May 2024 18/02/2024

Taxation (GST) (Subjective)

Each Question Carry 5 Marks

1. A Ltd. procured the following goods in the month 3. Mr. Jitendra Sharma of Gujarat often participates
of December, 2020. in the jewellery exhibition at the Trade Fair in
Delhi, which is organised every year in the month
Inward Supplies GST (Rs.)
of February. Mr. Jitendra Sharma applied for
Goods used in constructing an
18,450 registration in January.
additional floor of office building
The proper officer demanded an advance deposit
Goods given as free sample to
15,000 of tax in an amount equivalent to the estimated tax
prospective customers
liability of Mr. Jitendra Sharma. You are required
Trucks used for transportation of
11,000 to examine whether any advance tax is to be paid
inputs in the factory
by Mr. Jitendra Sharma at the time of obtaining
Inputs used in trial runs 9,850
registration?
Confectionery items for
consumption of employees 3,250
working in the factory 4. OK Bank has availed credit of Rs 25,00,000 lacs
Cement used for making in the month of December 2017. Total credit, out
foundation and structural support 8,050 of which Rs 5,00,000 pertains to non-business
to plant and machinery purpose and Rs 7,00,000 pertains to credit availed
Compute the amount of ITC available with A Ltd. under 2nd proviso of section 17(4). Find the total
for the month of December 2020 by giving input tax credit eligible to OK Bank.
necessary explanations. Assume that all the other
Note: OK Bank opted to avail ITC an amount
conditions necessary for availing ITC have been
equal to 50% of eligible credit
fulfilled.

2. Examine whether GST is payable in the following 5. Decide with reason whether the following
independent cases: - independent services are exempt under CGST Act,
(i) Amar Jyoti Charitable trust, registered under 2017:
section 10(23C) (V) of the Income- tax Act,
(i) Gokul Residents' Welfare Association
manages a temple in Shahdara, Delhi. It has
received Rs. 9,000 per month as contribution
given on rent a community hall, located
within temple premises, to the public for from each member for sourcing of goods and
celebration of New Year evening. Rent services from third persons for common use
charged is Rs 9,500. of its members.
(ii) Speed post services by the Department of (ii) Mr. Vikalp, a performing artist, has received
Post to the Union Territory of Lakshadweep. Rs. 1,58,000 from performance of classical
(iii) XY Ltd. has given on hire 7 Trucks to Jaggi dance and Rs.90,000 from acting in TV
Transporters of Delhi (a goods transport Serial during the month of June 2018
agency) for transporting goods in Central and
West Delhi. The hiring charges for the trucks
are Rs 6,200 per truck per day.
6. Examine the following cases and explain with 7. Ramoplast Soap Factory, a registered supplier, is
reasons whether the supplier of goods is liable to engaged in manufacturing beauty soaps – ‘Forever
get registered in GST: Glow’ in Mumbai. It has provided the following
information pertaining to purchases made/services
1. Krishna of Himachal Pradesh is exclusively
availed in the month of January, 2022:
engaged in intra-State taxable supply of
Particulars GST paid
readymade suits. His turnover in the current
(Rs.)
financial year from Himachal Pradesh
showroom is Rs. 25 lakh. He has two more Soap making machine 50,000
showrooms one in Manipur & another in Motor vehicles for transportation
70,000
Sikkim with a turnover of Rs. 15 lakh and Rs. of inputs
18 lakh respectively in the current financial Membership of ‘Fit and Fine’
year.
health and fitness center for its 25,000
2. Ankit of Telangana is exclusively engaged in
employees
intra-State taxable supply of footwears. His
aggregate turnover in the current financial year Inputs purchased, but stolen from
40,000
is Rs. 25 lakh. the factory
3. Aakash of Uttar Pradesh is exclusively You are required to compute the input tax credit
engaged in intra-State supply of pan masala. (ITC) available with Ramoplast Soap Factory for
His aggregate turnover in the current financial the month of January, 2022 assuming that all the
year is Rs. 30 lakh. other conditions for availing ITC, wherever
applicable, have been fulfilled.

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