Taxmann's Advanced Tax Law (Tax | ATL) | CRACKER

Contents % ' !

0

Chapter-wise Marks Distribution

I-9

Previous Exams Trend Analysis

I-11

Chapter-wise Comparison with Study Material

I-19

Chapter 1

1.1

SUPPLY UNDER GST

Chapter 2

LEVY AND COLLECTION UNDER GST (INCLUDING COMPOSITION LEVY)

2.1

Chapter 3

3.1

TIME OF SUPPLY

Chapter 4

4.1

VALUE OF SUPPLY UNDER GST

Chapter 5

5.1

INPUT TAX CREDIT

Chapter 6

6.1

REGISTRATION UNDER GST

Chapter 7

DOCUMENTS, ACCOUNTS AND RECORDS AND FILING OF RETURNS

7.1

Chapter 8

PAYMENT OF GST AND REFUNDS UNDER GST

8.1

Chapter 9

ASSESSMENTS AND AUDIT UNDER GST

I-5

9.1

3 4 . % 4 . / #

I-6

% ' !

0

Chapter 10

INSPECTION, SEARCH, SEIZURE AND ARREST, PENALTIES, DEMAND AND RECOVERY UNDER GST

10.1

Chapter 11

LIABILITY TO PAY GST IN CERTAIN CASES

11.1

Chapter 12

ADVANCE RULINGS UNDER GST

12.1

Chapter 13

APPEALS AND REVISION

13.1

Chapter 14

TRANSITIONAL PROVISIONS

14.1

Chapter 15

MISCELLANEOUS

15.1

Chapter 16

PLACE OF SUPPLY

16.1

Chapter 17

ZERO RATED SUPPLY i.e. EXPORTS UNDER GST

17.1

Chapter 18

UTGST ACT

18.1

Chapter 19

GST (COMPENSATION TO STATES) ACT, 2017

19.1

Chapter 20

INDUSTRY SPECIFIC ANALYSIS

20.1

Chapter 21

BASIC CONCEPTS OF CUSTOMS LAW

21.1

Chapter 22

VALUATION OF IMPORTS AND EXPORTS

22.1

Chapter 23

WAREHOUSING

23.1

Chapter 24

DUTY DRAWBACK

24.1

3 4 . % 4 . / #

I-7 % ' !

0

Chapter 25

BAGGAGE

25.1

Chapter 26

ADVANCE RULING, SETTLEMENT COMMISSION, DEMAND, SEARCH & SEIZURE, REFUNDS, APPELLATE PROCEDURE, OFFENCES AND PENALTIES

26.1

Chapter 27

FOREIGN TRADE POLICY TO THE EXTENT RELEVANT FOR INDIRECT TAX LAW

27.1

Chapter 28

CORPORATE TAX PLANNING AND TAX MANAGEMENT

28.1

Chapter 29

TAXATION OF COMPANIES

29.1

Chapter 30

TAXATION OF FIRMS INCLUDING LLP AND PROVISIONS OF ALTERNATE MINIMUM TAX U/S 115JC OF INCOME TAX ACT

30.1

Chapter 31

INCOME TAX IMPLICATION ON SPECIFIED TRANSACTIONS

31.1

Chapter 32

TAXATION OF NON-RESIDENTS

32.1

Chapter 33

GENERAL ANTI-AVOIDANCE RULES (GAAR)

33.1

Chapter 34

BASICS OF INTERNATIONAL TAX

34.1

Chapter 35

TAX TREATIES - UNILATERAL AND BILATERAL RELIEF (SECTIONS 90, 90A & 91 OF INCOME-TAX ACT)

35.1

Chapter 36

TRANSFER PRICING

SOLVED PAPER : DECEMBER 2020 (NEW SYLLABUS)

36.1 P.1

SOLVED PAPER : JUNE 2021 (NEW SYLLABUS)

P.28

SOLVED PAPER : DECEMBER 2021 (NEW SYLLABUS)

P.58

SOLVED PAPER : JUNE 2022 (NEW SYLLABUS)

P.84

T I D E R # X A 4 T U P N ) E K A T N A C 4 3 ' R E D N U N O S R E 0 D E R E T S I G E R Y L N /

SR DO OE OS GR U NO OC XN AI T TD U E PS NU I E OB T TO C T ED PE SD E R N E HT T I N WI R YO L N D OE NS EU K AE R T

A S E S H BC E N NI I AHS CWU TSB I E D F CO EI R E #VC R XEN A ASR 4RE TOH

U T DR PN U NA F )

Sections involved: 16 to 21 of CGST Act

16: Eligibility and conditions for taking Input Tax Credit

S 4TI 3NH U 'O O T DMD N E A!D

E YC D L A I P POE V UN B SI D FFL O U O O EEH UT

S L N A A T O VDN E R SMEE D IH P O I RR T C A F E T WSR S E OY R T AYE TDBT N DN E E I LH M I T Y AI ANVW A I PH TG ETI N KIDO AWEA L R RC ME Y X I T OL I AL P T I PTB SU T L A U I SP I A L F O N X TT I A N T NOT EO T I LU P EA I P R C UT E EH QU 2T EO

E D A M T N E M Y A P N O # 4 ) M I A L C

OR T E I DL EP L P T I U T S N EE EH BT O NT I A G4 A3 L' L I D WN TA N E EU I P L I A C V EF R RO E M HI T H R UY &B

E G R A H # E S R E V E 2 N O E L B A Y A P S I 4 3 ' E R E H W E S A C N I E L B A C I L P P AM TS O I NN SA I H SC I H E 4

TE N B ET NO ON PL L MA OH CS T 4N 3E 'N NO OP DM EO MC IX A A L T C D SI I A TS C E !H XT AN 4O E# M4 O) Cn NS ) D RO E DO NG L UA T NI OP I A T C A I F C EOD R TE PS EOW O $CL FA L FO )

5.1

TAXMANN®

N O I T C E S R E D N U 4 3 ' F O N R U T E 2 D E H S I N R U F S A H E (

N A C # 4 )

E C I O V N )

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T N E M N R E V O ' E H T O T D I A P Y L L A U T C A N E E B S A H Y L P P U S H C U S N O X A 4 c.

H T O B R O S E C I V R E S R O S D O O G D E V I E C E R S A H E (

b.

X A 4 F O N O I S S E S S

T ON PE NM I U EC BO DD L G U N OI HY SA TP I D X ET A R #R E XH AT 4/

TE U T PO N. ) T GI NB I E K A$ T

E NC OI SO R V E N 0) a.

INPUT TAX CREDIT

5

CHAPTER

HIGHLIGHTS OF THE TOPIC

Conditions for taking Input Tax Credit:

N O I T R O P P A R O F S N O I S I V O R P L A R E N E G W O L L O ] F

D E S

I C N R O E I XT EC E TS O NN NI N OE I T V P I OG FS ) A T N E [M

G N I N I A M E R G N I R U D N W A R D H T I W E B T O N L L A H S D E S I C R

E R XA EE Y EL CA NI OC N NA ON I I T F P F OO HT CR UA 3P

EE DM AA MS SG E N I I L H V P C PAN UHA SNR NO" SR OR O DE I PE A C PDI F XEF R AE / T T S OI D T A GE YE L R( P PRM E AH O TT R O NOF N D LA L E A L I HOA STV NA O S S R E E C FP I O V R NDE OE S I R T

E C T T

I R S R

I T G W S E E 2R EE VN OO. BY! !B0

HG T N L I A R EI HH R TO N EG N MI TT A N EE R R T YG T N U I AS EA E BL

GYF T NR A I ER R GC E R T R UI A CSA R RCO I OT OS S L DAE L T P S U S /DE NV SA E S GCL E I AT C R EI E H VME ESV BOR DCO T SO NE AC M DI OV R OE F &S O

b

E ] CS NN O AI NT EP T E N C I X A E ME DM NO AS RE I R A A PE ER R E GH T N[ I T C F I A V R R C E R S I EA CR NO S AL R E US SS NE I V L A S R E E L C NI EH 'E FV O O T SG E N CI I T V A R L E E 3R

ab

] S N O I T P E C X E E M O S E R A E R E H T [ T F A R C R I !

D N A S L E S S E 6

aa

DR EE VV OI RR PD PG AN I GD NU I V L C AN HI S NS ON SO R S E R PE FP O

N OG I T N A I T D

R ] OES PEN SCO NXT I AEP R TE T C ROX ONE F YE T SI E M C L AO C I P S H E EAR 6CA RGE N OT R I T E A O H ET -S [

No ITC in respect of following goods/services even though used in course or furtherance of business:

a

-

a.

-

Note:

TAXMANN®

A L T I P A # S T E U S PP NA ) L L NL OA H #S 4T )S E ER L B D I G N I L A E H FT O N O M T HA T H N T ON MI S YE R C E I VV R EE FS O T LU I A P VN AI OD FT N O .

A E / S S ) D A 4 O C0 O N/ ' ) Banking company/Financial institution including NBFC 50%

E G#L N4B I )A D X UnA L S C T E NI O I L T SPE P E L I UB L ST A P PTU UP B S M I R EET L T XA B AES XGI AN S T IA T GC X NE A I F T T F

T C S E U E ER I F P L F O P N E F I P RYF U OT O L S F R D YAHE C L PU T T R A DMR A PNOO R DASE ESOZ E S T I UL G D P N E SP I T E D U C CS I U I R L V T C DS R N E E E 3TRI A S 2 EE S BL I D LP OOL R P A OE HU ':S S

RF R OO MO F EE H T YC C P L I U T EO R

M 3V A R N PO A FI O E H DS Y HC NO L T U AT A N I OS C SD S E MH N E C T R A N C EIO N

I I S R HH I S F S W S T T U E S N T ROI BE N OT A N I RS A F F T RR V O EU NAE E B B L REP E E S LF UYE R OL T O LT R E PAS A O R I O RHE C N F USS 4N T N PT O IP 3A I 'NB R RDR E U E I OR T U FF D E F C O P FH Y 2 X GOC E L T L AH NDU R A I 4 T NS A H U O P T SE N O T I U

E T N N DP E RH EN L UTG !

B S N F FGI U)T A n FNT O A S I U O G L S E W E B N E EO C R I I S I T R LE H V OT A T L S R C P DO I I E RA N EFO 3U R S R V U I UE PS N & S $B I DRA OE# H OT 4 'O )

17(1), (2), (3) and (4) Apportionment of Input Tax Credit

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.2

Last date for claiming Input Tax Credit: Earlier of the following:

b.

i.e.

17(5) Input Tax Credit - Blocked Credits

E R T N E C S S E N T I F D N A H T L A E H B U L C A F O P I H S R E B M E -

4 ) $ % 2 # 8 !

4 4 5 0 . )

E M O S E R A E R E H T [

N O I T A C A V N O S E E Y O L P M E O T D E D N E T X E S T I F E ] NS EN O BI T LP E VE AC R X 4E DDD ENS E S I UAL T A N HA T I T LP O A B0C RNS OAE HS ST E N CRE E I P V HX R T E E O S

Y RYN OT A SRS DEN P OO A OR E GPM E SL N E B CA O I I

T V V Y R OCT E U R M S RE T TMS P C O NR AIO N R P T ACE N L OFEB CORA NEV SO (O KI RT

OC YM UR 7R M EI T S ND I I NHA DOCS C A NNM O AI T

N O I T C E S R E D N U D I A P N E E B S A H X A T H C I H W N O S E C I V R E 3

S D O O ' e f

Y A W Y B F F O D E S O P S I D R O F F O N E T T I R W D E Y O R T S S E E L DP NM EA L S O T E S E R TF S R OO L ST F DI OG OF 'O D N A

S N O I T C E S F O S N O I S I V O R P H T I W E C N A D R O C C A N I D I A P

X A 4

E NL OB I I T G II S NL AE R W T NO EN HT O WT I ED T E A DR N# OX I A T T I S T NU AP R N T N) OM I KA CL OC T O S T NE OL B #I 4G )I L ME T IO A L N C R# OE 4 T I) L YR T A I M L EI I B A I L MC G OO I L RT % F 18: Availability of Input Tax Credit in special circumstances

ER E L B E I H S S 4 O PN SO I I T RI

S D E E HNI T T OI O L # I OS B T A I NSL E ON F SI O S R E UR PBF E EFS NON ONA R OT MT I R OU O RI TF F TN T ISO N D I EOS R CV I #NO XIR AEP 4GC N TA I F U I HC PC E NS ) P IS FE O RE REB H E T F D S L NU NE AH O R H 4WS

S NRD EOR HFA E WL W B T I EG U T IO A L DE E L T NTB P OOA N I M T XE I WA S NO4X AN E R YG OV T T N N EI O#LM 4 N O K)O C CMT IE OI IB T AS S L O C PW NO O OT MN #EON L C 4B O )G I O S T R EL I E S YP E R V E RE D E VI L E EL L R 2RAE AMS T XERI AMO G 4O.E R R F TF S U PNEO S T OA S I U E T #L I /I S P YN#P A AR 4U 0T )S

D N A

N I D E V L O V N I S N O I T A T U P M O C R O F S E L U 2 W O L L O &

N En KE AB T L L NA EH ES BE L SB A A HY TA I P D EX R A #T T XU AP 4T TU U / PF NO ) T HN CU I H O WM NA OY L ST DN OE OU GQ LE A S T B I P U AS CD L EO R S E HE R 7A

YM BO R DF EF CO UE DR EE R H T ST A R SA DP OR OO GR E LT A R T A I P U AQ CY

R HRO CE UVE E SR L A NO S OFS SI T T DN L EI L L I I OT A VP# A 4 ) T G I O D T N EL I R A M #UI QL A XE C AT 4N F TUO U E O T PMA NA D )

Higher of the following: a.

TAXMANN®

DXD NE AT E UR T E P G T YS NM R I IY E OG T EAXY A L D2PEP G NYWN P AI L I OY U R MA N S L E GTOPL NNTPB U I EUA S L MO MN X O A CVEOT H N S EO R E CE BT S I M NA NPO R OT ODC I I EE T ST R I I A B S G E R T O E T S S S R PI A I G G H G ENMEY O I 2N L CRP R I E OA R P I T TER L U DBDA S EONE R NU W E O Y O T SXVN S A I R E T G S E L E EP G L C R NAI NOI V 5TYMR D R E EAO P S S R N E

NR E S S T OE A D S #ISPO R G E SO EP R A G

O T S T N A W N O S R E P D E R E T S I G E R F I R A E Y

N I H

T I N WI EN E BV I DG L U S OA H S# E4 C) I M O I VA L NC )

4 3 ' F O E T A 2

S D O O G L A T I P A # F O E U L A 6 N O I T C A S N A R 4

b.

N O I T P M U S N O C L A N O S R E P R O F D E S U S E C I V R E 3

S D O O '

i

T P E C X E N O S R E P E L B A X A 4 T N E D I S E 2 N O .

Y BM DI EH VY I B E CD EE R T SR E O CP I V M R I E S 3D O S DO OG ON 'O

g h

d

c

5.3

-

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.4

S E R E UU T L X A I F 6 DN NO AI T C SA G S I J N A SR E 4 I h D E DB NL AA L SH DS L U E L OB MA Y SA KP CX I R A BT T YU R P OT T U C AO R F P E A 2C R

v RS4 OS3 &A ' DF EO I L P E PT UA S2

Proviso:

R E K R O W B O J O T T N E S S T U P N I F O D E W O L L A S I # 4

19: Taking Input Tax Credit in respect of Inputs and Capital Goods sent for Job Work (1), (2), (3): Inputs sent to Job Worker:

R E K R O W B O * O T T N E S Y L T C E R I D E R A S T U P N I F I N E V E D E W O L L A # 4 ) R E H T R U &

FNBT O EOU HJ/ ET T O A T Y RL DE A A P MKP R I Y OO C L R7 T NN F I E BRU OPQ *YE FBS O N D SEO I S # L E

P NP

T I UU S USO LB A ET PFR N I OAER C A NESSE I T E R CU Y R 0L AP E

W N YP R I B S O DMHTF T EOCUS VRUPE F S N I R I E D T E CE D A T EI I H L N A R T P I S TP H DYT O NUEAI S STMDW T E E O G U HN NET P D O NT L NA E I N O EEBR X VSL L A O AE4 K BGH N RT AE I SO U FB TWP ) I

within 1 year

-

E RH E KT RY OB WS T BU OP J N AI F OO T T YP L I T E C C EE R I R D F TO N E ET S A ED R A M SO T R U F PD NE I T EN R U E O HC WE TB A L HA L T H DS ER T O A NE

EYR B E FK DO R L U DO OO W HI R B SE O TP ) J

TAXMANN®

SS

I T TU ) P T N I I MR IO L EF S MI IH T C EI HH T TW P R EA CE XY E SF I TO I D SA A E T YS L P N PI S AD O O

DG L NA AT I P A

C F O

E NS I A SC A N SI T N I O P L L !

(4), (5), (6): Capital Goods sent to Job Worker: 3 years

(7) Time limits of 1 year/3 years – Not applicable to moulds and dies, Jigs and fixtures or tools sent out to a job worker for job work (i.e.

Principal can continue to claim ITC even if such moulds and dies, etc. are not received back in their premises.)

20: Manner of Distribution of Credit by Input Service Distributor 21: Manner of recovery of credit distributed in excess (in connection with section 20)

SECTION 16 OF CGST i.e. ELIGIBILITY AND CONDITIONS FOR TAKING INPUT TAX CREDIT: Q1. Explain the mechanism under the CGST Act, 2017 for claiming Input Tax Credit while making payment of Taxes.

[CS Professional, December 2017, 5 Marks] NDXD E ONAS T SA R TU E DU E PEPR NA DBI I ER H RC C R OI S E E T T H I S R I D W P G E EER M R BC I Y H E Y R AKO E A T VMT H %SOT ATO DB NE OT R L I O T I T C S N I E R EC T I S EV E BR R E D S N R ANO OS SI NT D OC O I EO T I S G D NNF OIO CDL Y E I HF P I CC P UE U SP S OSY T RN TE A C ENN N J O A B D U E SMG ER LH L A A TH HNC SI

Ans. Eligibility and Conditions for taking Input Tax Credit 1. General Power to take credit [Section 16(1)]

4 ) $ % 2 # 8 !

4 4 5 0 . )

DH NC AU S SF S O E NR I E S UG D BE SL I T H I D FE O R EC CC NI AN R O E R T HC T E R UL FE E RH OT EO S T R UD OT E CI D EE HR T C NE I B DL EL S A UH S ET BN OU T O D EM DA ND EIN A T O S N S I R EE RH P OT

TO GI T ND I EH H R T T C O Y NEB AHR T O GO NT S I E D D C EI NL V AT R IE T T S N S HE T R I WEO TBS L O L D A .H O O S NG OF SO R Y E L PP P DU ES R E Y T N S I A G F EO R OT C NE P NS OE I T R C EI N S SX I A H T T NT U I S P S DN E EI L NY N I A NU T AM N OFI COH S PT UN SE YM BU DC EO UD ST S N I TE O M NY TA I P B EX DA T RR OE EH CT I O O VH NC I U XS AR T AO T FC O !

NS OI I H S T S

RD E E S E S DB ON I PU R C N S D I E ER SR I P E ET E (I SB G EY R A RM E I S L P A -

a Invoice:

H T O B R O S E C I V R E S R O S D O O G E H T D E V I E C E R S A H E (

T XEI AHD T T E R EOC HT T X DA I A T P T U N P OYN L I L I T A C F U ET O S C N FAO O I T SNA NEZD E I OB L N I I T S A I SU V Y OAHL RHGP PYUP LOU EP RS HPH T D UT I RA OSO T S H TC HE C H S U ES T A J C F B UFNO T 3OIC TRE C P EES H PT I E SE R E R N TI NNE E I L MB DN I S ER S GE I R VM A HOD C'A b Receipt: c Tax actually paid:

N O I T C E S R E D N U N R U T E R E H T D EN HE SK I A N RT UE FB SO A S HA L EY (A M S T N I O P G N I W O L L O F E H 4

FDNEH RI SO E BC E A I X R L U LS E L P A D RA UN E PTL I H N UHA L U SC VHPSI T P N EI HHEEUNO E N H S W T E I T O R P EI ONS E FH T CH YODOTET ASRDYRT PEAOB S E I W I L E R HR ET OP OE T C PT E I YT SUTPO L A N ISN VBI A N U D N E F H I I ET HOH TT L I TFI M N A W ENAIOV W I E A G AN P E U H N I TO T H SI C O S ERTE DL I R ESRF EA E HS R AT I HOC Y EO T T A E I D R BETXL I A E E A L B T HH B B D E T A I O GA TI 7B R E U Y R C H LS P X RAAT NA E OHP I R C T M ETP S XO A E E T E S RHUB CR T P HF I T OU E V T ST Y VI R Y LOA E EWA A S R SM R GDUI S ONNYQHA O O T E OR S LH T T DEAG N E I OLYE D N UE L OBP N GAP DODA Y AUNMDM FP O SAAA

TAXMANN®

TN T S ON NS E I RM A GEL APA T SDS DEN ORI OER T O GI S T EG O HEL T RT S EEA R HL E E HTH ST 7T F NO ET MP LE I A T C S E NR I N RO OP SU T T O I L D NE I R DC EE VK I A E T CO ET R D EE R L T A I T EN CE I O E VB NL L I A NH AS

ITC availed to be paid along with interest if payment not made in 180 days of date of invoice:

TYS N E EBI C I E V P DR I A C E EMS R R ETO N HE S 4M D YO AO PG NF OO Y XL AP T P TU U S PF NO

I N FEO O E U TA L R I E D H EVT R EE C HL ETB HSA T DY FR A O A L P W I X A OA VT T ATH NT OU T I DOW EMG L T AN I T O EL N EHA ETH T BFO LOB L M A HIR SHO

EFIX HOV A T TOT RD ENP R I E A E HNES O H E 7PT H MRT OEN CDO XNI T AUD T E EYR R E HN C T X NIA H OC T T NAU OMP I T N DI A I NE C AH ET R PNT A EL D DP D E ED W N O TL MA C L IS !A A L DXE C O B A SO T T A O HGEN L NAML T O L OI CA SP H R ANS E ) PCET F N HE DO T ETF N R S O E OOP T S C S I NM G EO O EHS R TIC

DY EN R A E F T S O I G T C EE R P !S E R N I T I D E R C X A T T U P N I E K A T O T D E L T I T N E E B T O N L L A H S N O S R E P

Section 16(4) - Time limit for availing of Input Tax Credit:

5.5

2. Conditions for taking credit [Section 16(2)]

d Return furnished:

Receipt of goods in lots against an Invoice:

Credit can be availed if Payment is made subsequently:

Section 16(3) - ITC not allowed in respect of tax component of capital goods if depreciation claimed on in under Income-tax Act:

-

EFEE HOCT H I T HO T RN F VO E T ONG I F A MHN I H CH E T U HS S O T I BR N HR RO CU I OF H F W S E R CNOO I V OTS I R N RI T E A C S A

E E R T RS YR E OR EI LP L R SEA DDI A ONCEE OUNTI S G AOR N N FNI R E F T O UF I V B T YE E O EH L R D P C PED I UHNHH STECW RFEU OOHSN F GT R O G NN T EI U T T H I G O E S W NR NI I O L N T TR L A I A L B L U EUOEN F F DF RRN E ROEC A OEBI T T N MO EA VA CD E I V NE T O I EP VU L ERE ND 3O R I T FYS RSNO OI B O E SSEE R A D R E E U E T CBES L E I N I H S V A I I GT R V R H EFA E A T S I HLOTW R BEI OCATDG Y E A E SSADR N DRP C O OE E L OVXHXA GEATA R T T Y

TI FNHMU T O OTO L

I I R P

EW RL F NB E A B I I S

L I AGY L E P N T A HXC PYO DT A UAL OT! SPA Y S T T4 T EI YH LU 3 L HXP A GU P' T A I T OTPEQU # U H T DEOF YCS T N I O S F AH ANI H PWOD U

O

O ONEE

U T T M R OL

D SS D A A L N N E I V E N A I O D U L A I F E P D T HHRA TP C T N E E EUSNEES I S I L B DOP P O E I L T HRFPL A C O ETWOUAS N H R I ODSS E O V AAT H I T O ETTRHN T R E N R R E 0 PYI E E

P HU BI HT O A N EC 7O MNC O EE HAIIRR H O T T EI VEE O HW H HT NT BT I N TES

ODURS SNPAE A R N HN I E D C I PE FI S U DBOHB I W T ER I R CD S E S I M E T E IH R S R I F PCHO G EEEOE R BKTC A H YYT N T R AOO A E R VMTBE ESDRH T AEOR L SU ST I E NT F CR ON I I TTEVO R C C EE I E R !T BS S R S RU 4E

OO 3R S C 'DND E #NO OH IO T EAT HSCGN N E T F I OS O FI D T N O I Y E I D L S P U NDP

E E OI

U C F H SB I C O NC EYT N OUP I SSAD T E C O ND R ET S TEON N C E DT RE NE E N DJAGI B R MA NU R 5S H O E CD LH L T E A XS HNA SI TU Q3. Dinesh Enterprises is a manufacturing company and wants to know the eligibility of Input Credit on fuel (Pet coke/furnace oil) used for the production of finished products.

[CS Professional, Practice Manual] Ans.

TAXMANN®

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.6

Q2. Explain the consequences according to provisions of GST law, if a recipient of goods or services or both does not make payment for the supply within 180 days.

[CS Professional, December 2018, 2 Marks] Ans.

ES R S A E N YI ES HU T DB EF DO I E V C ON RA PR SE DH OT OR GU LF L N A I NR OO EF L O B E AS L I R A U VO AC SE I T H I T D EI N R C D XE AS T U TE U PB NO I T ED L E P D I C N NE I T R N PI NR I O SD UE HS 4U

F THO WI C ER I U S F P S N FS O O I RMT YO OA L TR P D POFN T UMC E SLE M F NE F M OSE E O XI HC ADI T E T TDWR E A E DH E HP ET T I SSV E HEN DGLO I I E T V H BN O L E REL PD AM N UHR S RL E CE V MU O T F' U C EEE !L N I H 4OB T R T RY 3E UB 'P T # N D F I OI E O T F I A SI T T O

CV

UAN ND E OODB N I R A T YL

PS C I AC EMA S MN G UL U HE SO AA CL R UO U # E SRT T T E SE AA H !P NDT viz.

SECTION 17 - APPORTIONMENT OF CREDIT

Q4. Briefly explain about apportionment of credit and blocked credits under section 17 of the CGST Act. [CS Professional, December 2019, New Syllabus, 5 Marks]

R E V E W O (

pet coke and furnace oil are not excluded from the scope of GST In light of Section 16(1) CGST read with section 9(2) of the said Act, input tax credit of GST charged on pet coke and furnace oil shall be available, if such goods are used or intended to be used in the course of or in furtherance of the business of Dinesh Enterprises.

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.7

SI S DDE EES S R KE OA CT PX OS RA L IU B G T DEPT NRRU AEEP HN HT TT I I D OE Y EB RH R OT C DFF FE O YO S L TU T H N R C EEA PU MR M NA D OHN O I T S A T

O R S O S S OBS T E P E N DI PRN E AOS S SITU HE C U T B I C I R S WIBT V I S F H R SE E O L R F A ESEEO DRSBS O O E PLS SRL O DUAP H OPS R O U GETP I H D ETE E HRR H T OCT EFFO R YOT E L T T E HR L N B 7AUA P O T

S U N M T B OAI I D S R R EE ET T R HA PT C Ans. Apportionment of credit and blocked credits Section 17 of the CGST Act

YTX S P L AI E T T M R L TP A EU PX P NEPU O NS I R SO ED R FHT E E PYTA DLFR T O ER O H A R R CE E P T U Z S DM I G N G N EAOI R S D ESOU E HL T I L T C N YPDI E BPT U S C DS I E R ED I L T S P UESP E T R EA U R R E S A BE OL HR L T B ELA A O HX BZS RGT A T ONI I DD SD EA E I CURS L I C C V F E N R O H I E T T S SN RE O U I T OL OE SP L DPMB OU A OSAT GEEU H EL B T B I HA R ST T XEA T EA I R L T P E S HRPI S UA OS 7F E DES S NR U AE A DVL EEC BRO I N T R OT C C S XE E AJ R PTB YU EA S BP D YO N AT A ME LD SB

NG A AA TI N LI L N FD SO UI L OT I EU N ME L B A AI F HPSO I S CC E E UE L I T SRI A S EER BHU) C) LTE L H L A E HCSU SIND I YHS E W L P H NC PNO I3 UOT SSC F EAO TI P S L MPN H EPAP XURA ESTR S E FD I G O S A UA EL R BA UC L NEP A GF VIR L EL AO A HH H 4S C

RFDN OOA I O T S P YR R NAXE P APA PGT D NEE MI HR ON E CITT O A S T I GMY G NEL E I RPR K NEPR AHAE BTTT H O G NO NL AI N LA R YU A BD HO DNST O N EWS S L O I AA S C R R R D E E

H P XT

EI D F WO E SE R I NE T NBOS I OTT I O I G C T NI E P R R L T OA L S E E EHR N HSS O T TI I HY. EN4 B! CO E0 NI R DE T OU A EAM TI TY M A A T L HS A SS T N I E E I C I H DL NL T A EI APG P DC N I N UI I NF V S A V ON ENA RI HO 0F H T

TAXMANN®

SL H L ET Z L E A I B CH V N I I O S G V I

R M L

S E E

E S T E A GC H H NNNT T A I VOFN Y I O L T D I P C S PAE E C URS SO F I V HR NSOT I S E DNNNS OOT EAI GOS MU ALI P GGVYN NNORI EIRED P D V N NNEE A OE I THFS O T T X U D L EHI T O I T A T I O V S S WA G T NI L I SYRA LO L OI T A PPT I P E C M IA NDOD EC A R NECC S I R H T F E

XUE RTHA PS OGT T I N P YNETIA I U NT N L OP APT L OL E PC A NNTH MC OIIS D E I OAT T ET A CFP R S ONCE GO N EOXR I I A T YH E K R T H NATOT T E PU AWV D O BYA PN RN !BHP IA b

G# S N4 S I E )NN D N OS I I A T U T C S B E H S F T T I O WCBE T!UC S O N .4SA 3IE R H ' S T #TH I N D T F I R EO U R DF C ER D N O E O I K T E S C R ONNU E O L I B MO T C C HE SN T I E CI WSI D S V E L RS A E U E S D R E O R N A

D O S I T NE A C C TE I C SV !SD R NOE 4I S O 3D GS 'E D N #NO O I FA O O T DG N EH O WC

C

OU GL L S NNA F OI I T H I O N T TY C E N ENS V 3AI E

i.e.

Q5. Vivitha Chemicals Ltd. is a manufacturing company registered under GST in the State of Tamil Nadu. It manufactures two taxable products “Supreme” and “Maroon”, and one exempt product “Delight”. All purchases are from outside the State from registered suppliers.

On 1st October, 2020, product “Delight” got withdrawn from the exemption notification and product “Maroon” got exempted through an exemption notification. The supplier furnishes the under mentioned details (Amounts are excluding GST at 12% for raw materials and 18% for Capital goods):

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.8

Particulars

Price (`)

(a) Machinery “D” purchased on 22nd Oct., 2020 for being 4,00,000 used in manufacturing products “Supreme” and “Delight”. (b) Machinery “E” purchased on October 1, three years 5,00,000 before 1st Oct., 2020, for being exclusively used in manufacturing product “Delight”. From 1st Oct., 2020, such machinery will also be used for manufacturing product “Maroon”. (c) Raw Material used for manufacturing “Supreme” pur- 7,00,000 chased on 9th Oct., 2020. (d) Raw Material used for manufacturing “Maroon” pur- 6,82,000 chased on 27th Oct., 2020.

TAXMANN®

(e) Raw Material used for manufacturing “Delight” pur- 2,00,000 chased on 25th Oct., 2020.

Compute the amount of input tax credit credited to Electronic Credit Ledger for the month of October, 2020.

[CS Professional, June 2019, Old Syllabus, 7 Marks] Ans. Computation of amount of Input Tax Credit (ITC) credited to Electronic Credit Ledger for the month of October, 2020:

ITC credited to Electronic Credit Ledger for the month of October, 2020

v T H G I L E $ h G N I R U T C A F U N A M R O F D E S U L A I R E T A M W A 2

e

Amount (`)

v N O O R A h G N I R U T C A F U N A M R O F D E S U L A I R E T A M W A 2

d

v E M E R P U 3 h G N I R U T C A F U N A M R O F D E S U L A I R E T A M W A 2

c

v % h Y R E N I H C A

b

v $ h Y R E N I H C A

a

Particulars

2,16,000

YO L R E E VZ I S G; UN R L IE C D G XU D EL E C DN L EI T I S TD UU E EBR BSC EC OI T I LN DPO EPR DUT NSC E EDL T EE N T I E RPH OMT

DEO= EXT E S UND E SAT DHD I OTE ORR E GH C LT A E O T B I S P E L L AI L A CP H FP S O U S TS E C I G EN L P PI P ST E CU R ES F NF D I E E #R T A 4O R )F

Notes:

Rule

TEY P HB MTT ESA XE EI D LE P GP V NU I I R T SR C EL EA F F E BB E A RX L OA L F A T H Y G L S N E I

VT % I C S @ E UF Y L F C R XEE N ERI DOH F ED C S A UEM S RU E G I L ON RS I A LE EA SYB DL S OTD ONO GEO U G LQ A EA L T I S P T BI AU P CS A YSC NI F ASO E EI R LE P E U HPL A UV 7S

43(1)(b) of the CGST Rules, 2017

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.9

R DE NG AD FE O L EI T R D E E HR T TC R C A I PN O RR OT RC E E T L R E A E UH QT YO R T E D VE ET I RD OE F R C E FB O L EA L T A H R S ED HE T V TI A R R #A 4O )S ET HN T GU NO I M C UA DE EH R T

O T O S I V O R 0 ;

R E D N U S A D E T U P M O C E B L L A H S v % h N O # 4 ) S U H 4

rule 43(1)(c) of the CGST Rules, 2017

`

S R E T R A U Q

n

`

`

T EDI B D E S E LU L R I WT S# C SUI E PN I O NR LI P T PFC UOE S % L T C EE L N B PI AS D XEE ARI T T ND GIE N R # I T 4C C

E)E= B

F

R F T E

E O GN

RD L OE L F S ,IE D WL T SU EI E S D 2 I UEL P4 R S# P3 T U' U CS PI T# NNP I O F FRMO T O E C X EE

TL C E E% L P GU SNN2 I I T E ; C R DE R FE NEF T I I EG D #E RD 4ROE )CF,

`

Q6. Parthiv Chemicals Pvt. Ltd. is a manufacturing company registered under GST in the State of Maharashtra. It manufactures two taxable products ‘‘Sun’’ and ‘‘Moon’’, and one exempt product ‘‘Jupiter’’. On 1st October, 2020, product ‘‘Moon’’ got exempted through an exemption notification and the exemption available on product ‘‘Jupiter’’ got withdrawn on the same date (1st October, 2020) under the same notification.

Particulars

Price (` )

(a) Machinery ‘‘L’’ purchased on 22-10-2020 for being used 1,20,000 in manufacturing product ‘‘Sun’’ and ‘‘Jupiter’’ (b) Machinery ‘M’ purchased on 1st October, 2017 used 5,00,000 till 30-9-2020 exclusively in manufacturing product ‘‘Jupiter’’. However, from 1-10-2020, such machinery will also be used for manufacturing product ‘‘Moon’’ besides ‘‘Jupiter’’ (c) Raw material used for manufacturing ‘‘Sun’’ purchased 2,20,000 on 9-10-2020 (d) Raw material used for manufacturing ‘‘Moon’’ purchased 4,00,000 on 10-10-2020 (e) Raw material used for manufacturing ‘‘Jupiter’’ pur- 1,00,000 chased on 16-10-2020 All purchases are from outside the State from registered suppliers.

Compute the amount of input tax credit (ITC) to be credited to Electronic Credit Ledger for the month of October, 2020.

[CS Professional, June 2019, New Syllabus, 5 Marks]

TAXMANN®

The above registered supplier has furnished the following details (amounts are excluding GST) chargeable at 18% GST:

E T O .

E N I H C A -

E T O .

v N O O h G N I R U T C A F U N A M R O F D E S U L A I R E T A M W A 2

E T O .

v R E T I P U * h G N I R U T C A F U N A M R O F D E S U L A I R E T A M W A 2

L I .

E T O .

v N U 3 h G N I R U T C A F U N A M R O F D E S U L A I R E T A M W A 2

E YOL L RU E E VZ 2 I S G; UN R L IE C D G XU D EL E C DN L EI T I S TD UU E EBR BSC EC OI T I LN DPO EPR DUT NSC E EDL T EE N T I RPE OMH T DE O = EXT E

S

D UNE

SAT

DHI OTDS R E OE E R L GH C U LT A OE2 T I SB4 P E L3 L I AL A CP ' H# FP S O U SE TS E C H I G T EN L P PI F PO ST E C U R ES F NF

D I E

E #R T

A 4O

R )F

TEYO T FI P H B D E MT E R T R ESA E XE HC EI LDTC GPETI NPVRN O I A I U R R= T

PT SR C C

R EL EAO E F L E E F

BB E R E E RALT HS OXL A R A T E F T A L HU OU YGS L T N E vQD2 I VT -YE4 I C R S T UEhEI3 D F L ' YVE F C E R # R XEE RC ERN E OEH OI DF HFBT ED C L S LF UEA A O S MFH RU E OS I G T L O E R A SNT A I

L A D E EA R E SYBE VE DL I L OTSHR ONDTRU O E A 2 GU OTO LQ GAS O A E T L#TT I S 4 A O N P BT ) S I U AU I EO P CS V H A O YSC MR T NI A G 0 F ASO N E; E EI I R HE C R L E P E UTG U D HPL DN D AE UV E 7S RAL

R E D N U S A D E T U P M O C E B L L A H S v h N O # 4 ) S U H 4

S R E T R A U Q

n

` ` `

1,15,200 Total Input Tax Credit (ITC) credited to Electronic Credit Ledger

Amount (` ) Particulars

E T O .

, E N I H C A -

c

TAXMANN®

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.10

Ans. Computation of amount of Input Tax Credit (ITC) credited to Electronic Credit Ledger for the month of October, 2020

Notes:

b

R ERE O BF G L D L E D I E L WS T I SUD E SE I T L R U P C PPC UNI SIN F O EO R L T TC B ACL E XEE APN S T E I GR D NNE I T II T C D #E E4 F R F )C E E R RE B OG T F DO

= DEN L L ET

L S I UIW D ES SR S E T C I E U L L PCP U NIP2 N I U O S4 FR T3 O T P C TE M' C L EE E# P XF N SI EO E

R DG N EI NI T TE I C L D EU #E F 2 4RF )CE;

`

SECTION 17(5) OF CGST ACT i.e. BLOCKED CREDITS:

Q7. Which are the input goods and services on which a registered dealer cannot claim Input Tax Credit under Section 17(5) of CGST Act, 2017.

Give any six points/items.

[CMA Final, June 2018, 6 Marks]

!

S E S A C W E F T P E C X E

E L C I H E V R O T O -

Ans. Goods and/or services on which Input Tax Credit (ITC) is blocked as per section 17(5) of the CGST Act, 2017:

4 ) $ % 2 # 8 !

4 4 5 0 . )

O T N O I T A L E R N I D E D I V O R P S E C I V R E S R O

D N A S D O O ' "

S I T I E R E H W T P E C X E E C NW AA R L UY SN NA I R HE T L D A EN HU R EE CY NO L AP R U SM NE I N EA F R I L O F BY AR CO T AA TI G N L EB 2O iii

E V A E L S A H C U S N O I T A C A V N O S E E Y O L P M E

ON T O DS I ES DE NC EN T O X EC L SE T I V F A E NR ET BE LM E VO AH R R 4O

iv

R E T N E C S S E N T I F D N A H T L A E H B U L C A F O P I H S R E B M E

ii

HD T E L I A F I EC HE P TS N ER E MD TN A EU R T T P YE T U C AX EE B Y GR E NG I R R E U T S A CC I RT OS OL A DP T U D ON SA E GC I AE T R

E S VME ESC O N BC A D T NSS E AC M DI U OVR C R OE I &S C

i

T EU L B P AN VI ON MA S MI IT F I O E NR OE I H T C UW RT T P S NET

OCC CXA RER OYT F RN DEO NC EI I L S HK P PCR UAO SMW N E F HTO Y WNL AP SL E P CPU I N S V AR R H E E T S H TRR T C E AH U R F T T O R N O OYF CT E SRC KEI RPV O OR R E 7P S $

FN O I H NC OA I T M C U R T S TS S NNE AN OL CP I S RNU OA B F HF NT ORO SE E R HC E T N PO A R ETE L N B H T AUR XOU C AC F T R AAO YNE BWS O R DSU EI O VHC I NN E COI E Y D R T E R SE S E U P CO I N V R E R PH E E S W L RB N OAE SVV DOE OMY OMR 'I E -

#

N O I T I S O P M O C R E D N U D I A P N E E B S A H X A T H C I H W N O S E C I V R E S R O

D N AE SM DE OH OC 'S &

N O S R E P E L B A X A T T N E D I S E R N O N A Y B D EM VI I H E CY EB R D HE T T O R BO RP OM SI E S CD I V O R O E G S RN OO T SP DE OC OX 'E '

O T N O I T P M U S N O C L A N O S R E P R O E T A V I R P D RE OM F DU S EN S UO SC E O CS I V E R R E A S Y RE OH T DT NN AE T SX DE OE OH 'T

TAXMANN®

%

N O I S S E E L R P P M P U A S S E D E U R A F R R F O F O D T E N T F U I O G C F C F A

O N N NI O E OT T T N T N I E E R T W ME D D Y E AD Y PN O TA R R O E T H S R E SU D OI Z N TE E ES U L N O DO T I S D T I A T A R S A O PL L XC S AE D TD O YS O NI ' !M ( )

GST Paid (`)

Item

25,000

Food and beverages consumed within the factory

1,00,000

Trucks used for transporting materials

5.11

Q8. Bharat Ltd., a registered supplier under the regular scheme, is engaged in manufacture of electronic items. The following details for the month of March, 2021 are available:

Machines acquired for manufacture (capital goods)

10,00,000

Electronic items utilized in manufacture

25,00,000

Advise the ITC eligibility for the company.

[CS Professional, December 2019, New Syllabus, 5 Marks]

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.12

Ans. Computation of ITC available to Bharat Ltd. for month of March, 2021

SN4I I C SO3E D'R ME P EM EE T HD I IT CL A TF I CAO N H

OET E RB S T

O D C PT OER ET L C ESMU! U P FAS O HSEX A HT ENAT R OI SR E UT I T OM T A C AI)FO C

D F C E4 UR E N 3R NP ) E ' AE E DH MDES I T H N RRT F OEG OO F VNC

DEI N EWD EN R O U E I O (LBI U C T Q X TC C# EO E A4 ENS S)U SR E RLAE I A O R D VHN F E T NETN U I E L U H B NO N CI O G EMI AI T HA LT -E A

i

Amount (`)

-

ii

E S BS E DN L U I S OU WB #F 4O )ET = ESC HR! U 4O 4 C E 3 R E' UH T T# C

AN F UIN NDO AET I S MUC E E3 NR I ; DA S ES ES Z E I E L N I HI T T S U U SSB A M F E O EL T B E I AC CL I N I A N A R OVE RAH T YT C L R EL L UU % FF

iii

SNI T E OD L I C T E I C R H EEC V3X A RRT OET D T NU O P MUN D I NE R OK O #CF O 4L E L )B B

NI SE L G A I E L I R BE E TI S T O A T MNI S E A GH C NS N I T DE R OO( PO SGT NFC AO! R N4 T O 3 RI T ' OA F # T DR E EO H S PT US SNF KAO R CT

UR

RO

4F

TAXMANN®

L I .

VEFESEE O E G K H EA L TTEAB BM R R I NYE O G D A O L VL I NOPYPE E ATSR MBT DDAOEDO T OERA SNN T A OMOG I F E UY D I O L C ON NSRB T O N O OO GOEF E C ( #CESI E T I V S 4EA

TR A Y )RC I E R C TAERST O Y O C T HN C !EM E C Y H A A L USF 4TSP E SR SEP 3S E H HUEPT 'E D E T S L I #N HN V N E I OTH EUI T I RNT HT ISSPII T E O I FDL ORW P E E O P T R V D PMRE C E UOEW D

CY M S

E EROOU KL L S CBOP(N

NO AYMW OL O XL I B C T APEAN L C E P AT YE ES HN UT DS 3I E A R F RSA DO RB E E E ET WX E DGT DV RN A NR UIA A 5E OMPUH

iv

-

Total ITC available

36,00,000

Q9. Determine the amount of Input Tax Credit (ITC) admissible to JKL Ltd., in the month of September, 2020 in respect of various inward supplies during the month from the following information.

Assume that all the conditions necessary for availing the input tax credit have been fulfilled by JKL Ltd: Items

GST paid (`)

Health Insurance of permanent factory employees, as per policy of 60,000 company Raw materials for which invoice received and GST paid for full 1,13,000 amount but only 90% of material received during the month and remaining 10% will be received in next month (October, 2020) Work contractor’s service used for installation of plant and machinery 1,18,000 Goods purchased against valid invoice from PQR Ltd, although GST 50,000 has been deposited by PQR Ltd. but JKL Ltd. has made payment to PQR Ltd. for such purchases in the month of November, 2020.

Purchase of car used by director for the business meetings only

25,000

[CS Professional, June 2019, New Syllabus, 5 Marks]

4 ) $ % 2 # 8 !

4 4 5 0 . )

SY I N T I A SP S M E L O N U# R DE NP AS LA I T N Y L UN EO L B S I AT L I I A E VR AE T( O

NY E SCL I I L B #O A 4PI L )TA NV EA MT O NN R E V S

I

# O4 N') Y OR I E T O R C SO EL F U S E RPR E E PMH SOT C !R Y E C I PL O SP A

Y R E N I H C A M D N A T N A L P R O F S I T I E C N I 3

E L B A L I A V A S I # 4 ) E H T

Note: As per section 17 5 c ITC will not be available for works contract services when supplied for construction of an immovable property other than plant and machinery.

Y R E N I H C A M D N A T N A L P F O N O I T A L L A T S N I R O F D E S U E C I V

R E S S

R O T C A R T N O C K R O 7

F I N E V E

R E RB E M BE MV EO T .

P EF 3O FH O T N HO T M N OE MH T NN I I ED

L B T I , S S , I M+ D* AY EB BE D LA L A HM SS I #T 4N )E M E T Y O A .P

F O Y L N O S G N I T E E M S S E N I S U B E H T R O F R O T C E R I D Y B D E S U R A C F O E S

A

H C R U 0

, ) .

TAXMANN®

D T , 2 1 0 M O R F E C I O V N I D I L A V T S N I A G A D E S A H C R U P S D O O '

NY I L EN L O B E AS L I U A S VS AE EN I BS TU O B NR L O LF A HN SE TV I E D R EO R T C C XE AI R T D TR U PO NF I R A #

E

L

C I H NE O6 I T R C O ET S O RE PF SO T !C E P S E R

S S NI E N I NO CE AI N R M ET E AH R MCN E O E R WF vE T T R Y N C T E I ANA R H R E OMP T T I O N T O OE RRE CL I P M SPAE O KMPL S E R B OORA C N I W NVR O hNO OT IMO I S T A A CMD I O CI Y F I O I R N

G BDA T C AOF S F A A M O R RT GE NTN N ON IHO I ENTC T E O C I H H UMS E C W RV S I T U

S OMS S NR F D M OP CMOOO O N CG O GIR I TO NU NT I I U N D OO C Y L I T E I GT U R X E BNAP E I R T E E RT OH T OI RT L F A F P R N N F T N E I C O OO PA I I D RE T T SRA E A !TL F V N V L S L OAON O T CS N V AN ER NR AI TI

SN I A TF I D O EN R #I O T XC AU 4R T TS U N PO NC ) R TO A F HD T E SL I E P T P A T U S S N E H W E C I V R E S T C A R T N

OY CT R SE KP RO OR WP E NL OB DA EV KO CM OM L B I

Section 17(5)(c) of the CGST Act, 2017

1,68,000 Total input tax credit available

, ) .

TG N N UN I OI MA AM LE L R U FD RN OA F DH I T A PN 4O 3M 'E DH NT AG N DI ER VU I D E CDT H EE N R EVO I CE I CM O T VEX NRE L I N A HI R CE N I I H T D WAE V RMI OFE F C SOE L R A I E R B E T YL L A L MNI OW WT

AU

2B Note: As per proviso to section 16 2 , it will be available when last lot will be received, hence entire ITC be available in October, 2020

, ) .

S E E Y O L P M E Y R O T C A F F O E C N A R U S N ) H T L A E (

Section 2(119) of the CGST Act, 2017

Ans.

a

Note

b iii

Note

Amount (`) Particulars

5.13

Ans. Calculation of Input Tax Credit (ITC) available to JKL Ltd. for the month of September, 2020

`

Q10. Define the term “works contract” under the CGST Act, 2017? Can input tax credit be availed on works contract service?

[CS Professional, Practice Manual]

4 ) $ % 2 # 8 !

4 4 5 0 . )

5.14

DN EA K CF OO L N B O ST I I C T I U D R ET R S C N XO AC T R T O U PF NN I O T S A R HE T SP E E T L A B T A S X T AN T U AO YC BC DA EN VW I E CO EN R O SY E T R CE I V P R O E R S P RE OL SB DA OV OO GM NM OI

Section 17(5)(d) of the CGST Act, 2017

H S E D A R 0 A R H D N !

2 ! !

4 3 '

Y N A P M O #

2 3 + E R N ) TN I I D S ET R U #P XN AI 4S TA U D PE NS ) U RS OE F C I EV L R B E I S G I L D E N SA I S TD N AO CO I G L P PN !O Dv

EI S HA T T PC T4A A R H3N T T ' O D E # L E HS HT K FR SO A O T7 WC TEh I PF ESO E S N R A O C N I T SIU I H C #E T 4X N )E ) S 4T 3C A 'R #T N EO HC T FS O K R O W

S I

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4 E C T I U V T PC R E N! S ) c

d

T C A R T N O C S K R O W F O S E I L P P U S R E H T R U F GD NE I L I D A I V V O RA PE NB I N DA EC GT AD I GE NR EC SX I RA E T I L T P U PP UN SI AS FE I C SV I UR HE 4S Q11. Mrs. X has opted for composition scheme at the time of registration and purchased a plant and machinery ` 30,00,000 and paid input tax at a rate of 18% and tax credit was not allowed but after a period of 9 month and 10 days the dealer has opted for payment u/s 9 i.e. normal scheme.

Compute amount of tax credit allowed to Mrs. X. [CS Professional, Practice Manual]

L4 A 3 T I ' P A# #F NO O DN EO WT I OC L E L S A TO I T D

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SECTION 18(1) OF CGST ACT i.e. ITC IN SPECIAL CIRCUMSTANCES:

Ans.

c

b Less:

Amount (` )

`

Y R E V R EE RT OR F A SU T Q N I R O E PP

N O D E S

A B D E C U DF EO R E ER BE H OT T T TR I D A EP R R C XOS ARR E ET 4T R RA A UU QQ

a

T I D E R # X A 4 T U P N ) L A T O 4

Particulars

`

c. Therefore, Amount of Input Tax Credit allowed

4,32,000

SECTION 18(3) OF CGST ACT i.e. TRANSFER OF UNUTILISED CREDIT ON CHANGE IN CONSTITUTION OF BUSINESS: Q12. Where a supplier transfers a running business as a whole either due to sale, merger, amalgamation of such business, whether the portion of the unutilized input tax credit by the supplier can be claimed immediately by the recipient?

4 ) $ % 2 # 8 !

4 4 5 0 . )

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ENE DT HUDN N T HNAE FC U M I N U T OR ES DI R ET A OMR A P F IERE E T T A D S R S L I I E C G G E HOE EH 4T RR T

SECTION 18(6) OF CGST ACT i.e. SALE OF CAPITAL GOODS ON WHICH ITC HAS BEEN AVAILED Q13. Jayakumar Textiles Ltd., purchased a machinery on 12th August, 2020 for ` 12 lakhs (excluding GST). The company put the machinery to use after the purchase and availed input tax credit for the eligible amount.

EY AS VR FD O E O O BN O RG I AH E T FC H R O A A C T UU M H QS G D R I RO L N E A E PF HH E T C D I O NN I YV SO BN PCE

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QA O NM E E XE OO U R AA L L NR A T S F I EF V FS O KO N D N T AE TO O T R ,NE I E T TE I L C SMB H D A E T ET L A Y S I R N T AY R C A A XPP E R XA R T 4O AP T R T N RF N TO SU O A U R X MNO A PE O A M R UI NY S O 4 K ) A I AV E OH YR AP * 4

b

TAXMANN®

4HD E CR 3I 'H E T #WS I ENG G HO EN T I FYRW R E O E HO NT L I L

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C A E T N 3 S T O E U S L R PE U NP 2I

a

5.15

Ans.

Section 18(3) of the CGST Act, 2017 specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to transfer the input tax credit which remains unutilized

The machinery was sold as second-hand machinery on 14th May, 2021 for ` 9 lakhs. During purchase as well as sale of the machinery, the GST rate applicable was 18%. Discuss the steps which Jayakumar Textiles Ltd., is required to take at the time of sale of the second-hand machine. Briefly state the statutory provisions involved.

[CS Professional, June 2018, 5 Marks]

Ans.

4 ) $ % 2 # 8 !

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5.16

Particulars

Amount (`)

E N I H C A M N O N E K A T T I D E R # X A 4 T U P N )

Amount (`)

T RS OU RG E U T R !

A UM QO R RF E E PN I H C TA A M D EF CO UE DS EU R F EO BD O OR I T TE I P D E EH

R T

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AF T Y FA TO U EPR NEO H ) T T

T R A

P

Less:

S R E T R A U Q

R A E Y R O &

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b

E V O B A

R E P S A E U L A 6 N O I T C A S N A R 4

N O E L B

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a

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ii

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TAXMANN®

Amount payable towards sale of machine (Higher of ` 1,72,800 & ` 1,62,000)

1,72,800

Q14. On 25th August, 2019, M/s Agarwal & Agarwal Ltd., a registered supplier of textile products located in Bangalore, Karnataka purchased one machine for ` 12,39,000 including IGST, from one supplier of Maharashtra who issued invoice on the same date. M/s Agarwal & Agarwal Ltd. put the machine to use on the same date and availed Input Tax Credit of the eligible amount.

M/s Agarwal & Agarwal Ltd. sold this machine after using the machine in the process of manufacture of taxable goods for ` 7,50,000 excluding IGST to Mr. Suresh Kumar of Andhra Pradesh on 20th August, 2020.

During purchase as well as sale of machine, the IGST rate applicable was 18%.

4HD E CR 3I 'H E T #WS I ENG HO G EN T FYRI R E O W E HO NT I L L

HYO

CBF E EADH L M R U T A RDW F O HNT T AUR I E T WN OH DADI G L AP EH ER I LE R OPH SPT DUI S OST OEA GRH LAT A NT T E I N P KU AA O CT FNM I EA TE A N HBA T S Y EA A DH P I V T TS OI RDU PEM R CE X H A T N STO E UR S L PE U NP 2I

Is M/s Agarwal & Agarwal Ltd. required to pay GST? If yes, calculate the amount of tax payable under GST laws at the time of sale of the machine.

Also briefly state the relevant statutory provisions.

[CA Final, November 2018, 5 Marks]

Ans. Section 18(6) of the CGST Act, 2017

a

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RS TA D U EO PYO NAG )

E U L A V N O I T C A S N A R T N O X A 4

b

Advanced Tax Law (Tax | ATL) | CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE

: : : : : : :

Pratik Neve TAXMANN July 2022 4th Edition 9789356222847 538 PAPERBACK

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Description This book is prepared exclusively for the Professional Level of Company Secretary Examination requirement. It covers the questions (topic/sub-topic wise) & detailed answers strictly as per the syllabus of ICSI. The Present Publication is the 4th Edition & updated till 31st May 2022 for CS-Professional | New Syllabus | Dec. 2022 Exams. This book is authored by CA Pratik Neve, with the following noteworthy features:

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Strictly as per the New Syllabus of ICSI Coverage of this book includes Fully-Solved Questions of Past Exams; Topic-wise

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