8
CHAPTER
HIGHLIGHTS OF THE TOPIC
Sections involved for payment of GST: 49 to 53 of CGST Act. Payment of Tax interest, penalty and other amounts
Interest on delayed payment of tax
Rate of interest: 18% p.a.
However, where taxable person makes an undue or excess claim of Input Tax Credit or undue or excess reduction in output tax liability, the rate of interest shall be 24% p.a.
Tax Deducted at source (TDS)
TDS at 1%
` 2,50,000
Tax Collection at Source (TCS)
Non-applicability of TCS provisions: a b
c
Sections involved for REFUND: 54 to 58 of CGST Act
Interest on delayed refunds
UTILISATION OF INPUT TAX CREDIT TO PAY OUTPUT TAX & DETERMINING NET GST PAYABLE:
Q1. Hiyakash Ltd. is a producer of certain products. The tax rate applicable on the supply of goods by them is 18,%. (SGST 9% and CGST 9%). The company purchased goods worth ` 47,200 (inclusive of Tax 18%) which is fully utilized in the manufacture of final products. The company sold the goods for ` 25,000 within the State and also exported the goods worth ` 8,000. The invoices are properly uploaded and matched in GSTN Portal. Calculate the tax payable by the company assuming there was no opening or closing stock of inputs or final products.
[CS Professional, December 2018, 5 Marks]
Ans. Computation of tax payable by Hiyakash Ltd.
ParticularsCGST (`)SGST (`)
Q2. Balaram, a registered supplier, furnishes the following details pertaining to the month of October, 2017 (First month of starting of business):
ParticularsAmount (` )
Purchase of goods within state8,00,000
Purchase of goods from outside the state10,00,000 Inter-state sales6,00,000
The rates of taxes for the goods supplied are as under:
ParticularsRate
Compute the GST payable by the supplier Balaram for the month of October, 2017 [CS Professional, June 2018, 5 Marks]
Ans. Computation of Net GST payable for Mr. Balaram for the month of October, 2017
w.r.t. IGST – Utilised to pay CGST & SGST
w.r.t. CGST N.A.
w.r.t. SGST N.A. Net GST payable Nil
Notes:
Q3. Nargis Agro Traders located at Jaipur and engaged in the business as retail traders provides the following details of its purchases and sales made during the month of July, 2020:
The rate of tax under GST on the items are 5%, 12%, 12% and 18% respectively. You are required to calculate the amount of GST payable and the date by which the due tax is to be paid by the trader for the month of July, 2020 after availing the Input Credit.
[CS Professional, December 2017, 5 Marks
Ans.
Computation of net amount of tax payable by Nargis Agro Traders on sales during July, 2020:
ParticularsAmount (`)Amount (`)
Output Tax
Input Tax Credit
TDS & TCS
Q4. Mudit Enterprises, registered in the State of Maharashtra (Mumbai) is engaged in supply of various goods and services exclusively to persons notified under section 51 of the CGST Act, 2017.
Calculate the amount of TDS to be deducted by the recipient if any, from the details given below of three independent contracts for the month of November, 2018:
Figures in `
ParticularsContract IContract IIContract III
Place of SupplyMumbaiMumbaiMumbai
Registered Place of recipientMumbaiMumbaiDelhi
Total Contract value (inclusive of GST)2,75,0003,10,0004,50,000
Payment due in November, 2018 (exclusive of GST) 55,00060,0001,20,000
Note: Take the rate of CGST, SGST and IGST as 6%, 6% and 12% respectively. Ans.
Contract I
Contract II:
Contract III
Q5. State the rate of tax for collection of tax at source applicable to electronic commerce operator under CGST Act, under SGST Act and under IGST Act, 2017. Also specify when and on what value the rate of tax for collection at source will be applicable.
[CS Professional, December 2019, Old Syllabus, 3 Marks]
Ans. Tax Collected at Source (TCS) under GST law
Section 52 of the CGST Act, 2017
TCS @ 0.5% under CGST
8.8
Act and 0.5% under SGST Act
REFUND OF GST
Q6. Govinda Exports, a partnership firm, is registered under GST in the State of Gujarat. The firm exports goods without payment of tax under letter of undertaking in accordance with the provisions of section 16(3)(a) of the IGST Act, 2017.
The supplies made during a tax period are as under:
(i) Domestic supplies of taxable product ‘P’ during the period [excluding tax @ 5%]
[Inputs used in manufacturing of such goods are taxable @ 18%]
(ii) Export of product ‘Q’ to Austria for Euro 20,000. Assessable value under customs in Indian rupees. 12,00,000 [Export duty is levied on product ‘Q’ at the time of exports]
Product P is not notified as a product, in respect of which refund of unutilized ITC shall not be allowed under section 54(3)(ii) of the CGST Act, 2017.
The ITC available for the above tax period is as follows:
(i) On inputs (including ` 60,000 on export of exempt supplies)
(ii) On capital goods
(iii) On input services (including ` 18,000 on outdoor catering) 2,10,000
You are required to compute the maximum amount of refund admissible to the supplier for the given tax period.
[CS Professional, June 2019, Old Syllabus, 8 Marks]
Ans. Determination of maximum amount of refund admissible to Govind Exports:
Maximum Refund Amount =
Q7. Write a note on refund of tax under section 54 of CGST Act. Discuss the provisions relating to refund of balance of electronic cash ledger as per the GST law. [CS Professional, December 2019, 2 Marks]
Ans.
INTEREST FOR DELAYED PAYMENT OF GST:
Q8. Vaibhav, a registered supplier under GST law, has furnished the following details for the month of August, 2017:
a. Purchases of goods made from outside state: ` 8,00,000
b. Inter-state supply of goods: ` 10,00,000
c. Goods taken for personal use in above ` 20,000
The IGST was paid on 10th October, 2017. Calculate the interest payable on delayed payment.
You are informed that the IGST rate for all goods dealt with by Vaibhav is 18%. [CMA Final, December 2018, 5 Marks]
