Paper 8 Indirect Tax Laws (Old Course) : © The Institute of Chartered Accountants of India
Paper 8 Indirect Tax Laws (Old Course) : © The Institute of Chartered Accountants of India
Paper 8 Indirect Tax Laws (Old Course) : © The Institute of Chartered Accountants of India
1. M/s. Korelal Printon (P) Ltd., a registered person under GST in the State of Jammu & Kashmir, has been
engaged in the business of offset printing and has been providing services to various book publishers. A
publisher situated in the State of Himachal Pradesh, a registered person under GST sent content of the
books to be printed by M/s. Korelal Printon (P) Ltd., in PDF format. The publisher also sent paper worth Rs.
4.00 Lakh to the printer, free of cost for the purposes of printing its books on 10-Nov-2018. M/s. Korelal
Printon (P) Ltd., raised an invoice of Rs. 1.50 Lakh against printing of books and returned the printed books
through Challan to the publisher on 20-Feb-2019.
The Proper Officer, intercepted the vehicle and claimed that M/s. Korelal Printon (P) Ltd., should have sent
the invoice of Rs. 5.50 Lakh, i.e. including the value of free of cost paper supplied by the publisher.
You may suitably advice which one of the following is the correct option-
a) The value of supply of paper for job work is to be included in the invoice in terms of section 15 of the
CGST Act.
b) The goods sent for job work, i.e. paper sent for printing is a composite supply
c) M/s. Korelal Printon (P) Ltd., has entered into an agreement of printing books. Therefore, he is liable
to pay tax on the gross value of Rs. 5.50 Lakh.
d) M/s. Korelal Printon (P) Ltd., has entered into an agreement of printing books. Therefore, he is liable
to pay tax on the net value of Rs. 1.50 Lakh.
2. Mr. Palliwal Desai, a registered practicing Chartered Accountant, located in Jaipur, in the State of Rajasthan,
is providing professional and consultancy services to its various clients from his proprietorship firm.
He has taken some professional consultancy services for his client from abroad from a UK CPA firm in which
his brother is a partner. He has not paid any consideration for the same.
Such services would have been taxable @ 18% (9% under CGST + 9% under SGST and 18% under IGST),
had they been received in India. Also, Mr. Palliwal Desai would have paid Rs. 4.00 Lakh, had his brother
would not have been a partner in the UK firm.
State the liability of Mr. Palliwal Desai, under CGST/ IGST Act, 2017, out of the following options-
a) Rs. 72,000/- as Integrated Tax
b) CGST Rs. 36,000/- & SGST Rs. 36,000/-, since POS is in India
c) Nil, since no foreign exchange was paid
d) Nil, since such services are exempt
3. In which of the following supplies of goods and services made exclusively to Government departments,
agencies etc. and persons notified under section 51 of the CGST Act, 2017, TDS is required to be
deducted?
(i) Health Department executed a contract with a local supplier to supply “medical grade oxygen” of
Rs.2.6 lakh (including GST) and is making full payment.
(ii) Government school is making a payment of Rs.3.5 Lakh to a supplier for supply of cooked food as
mid-day meal under a scheme sponsored by Central/State Government
(iii) Municipal Corporation of Kolkata purchases a heavy generator from a supplier in Delhi. Now, it is
making payment of Rs.5 lakh and IGST @18% on Rs.5 lakh for such purchase.
Answer Key