Module 2: GST Registration and Taxable Event

CGST Act 2017

• CGST Act extends to whole of India excluding the states of Jammu and Kashmir.
• Jammu and Kashmir will need to approve levy of GST in its State assembly, on
account of its special powers on taxation under the Constitution. Once this is done,
GST shall be introduced in the State.
• The CGST Act shall come into force from a date which will be notified by the Central
Government in Official Gazette, i.e., from the appointed date.
• Different provisions may be made applicable from different dates as may be notified.
• The CGST Act, 2017 comprises of 174 Sections in 21 Chapters and three Schedules on
supplies without consideration, treatment of activities as to goods or services and
activities which shall be considered as neither goods or services.
• These Schedules are as under:
o Schedule I. Activities to be treated as supply even if made without
consideration
o Schedule II. Activities to be treated as supply of goods or supply of services
• Schedule III. Activities or transactions which shall be treated neither as a supply of
goods nor a supply of services
Features of CGST Act 2017
The features of Central Goods and Services Tax Act, 2017, are as follows:

• to levy tax on all intra-State supplies of goods or services or both

• to broaden the base of the input tax credit by making it available in respect of taxes
paid on supply of goods or services or both used or intended to be used in the course
or furtherance of business;
• to impose obligation on electronic commerce operators to collect tax at source, at
such rate not exceeding one per cent of the value of taxable supplies(net), out of
payments to suppliers supplying goods or services through their portals;
• to provide for self-assessment of the taxes payable by the registered person;
• to provide for conduct of audit of registered persons in order to verify compliance
with the provisions of the Act;
• to provide for recovery of arrears of tax using various modes including detaining and
sale of goods, movable and immovable property of defaulting taxable person;
• to provide for powers of inspection, search, seizure and arrest to the officers;
 • to establish the Goods and Services Tax Appellate Tribunal by the Central
Government for hearing appeals against the orders passed by the Appellate
Authority;
• to make provision for penalties for contravention of the provisions of the proposed
Legislation;
• to provide for an anti-profiteering clause in order to ensure that business passes on
the benefit of reduced tax incidence on goods or services or both to the consumers;
and
• to provide for elaborate transitional provisions for smooth transition of existing
taxpayers to goods and services tax regime.

SGST ACT 2017

SGST, short for State Goods and Service Tax, is one of the three main categories of Goods
and Service Tax, i.e. (CGST, IGST, and SGST) and carries a concept of one tax one nation.
SGST falls under the State Goods and Service Tax Act 2016.
Features of SGST
▪ SGST is levied and collected by the states on all goods and services supplied for
consideration.
▪ It extends to the whole of Karnataka.
▪ The tax collected is deposited to the accounts of the respective state
▪ Each state has its separate SGST act under its State Goods and Service Tax Department.
However, the basic features of the GST law for all the states like the charges, valuation,
taxable event, measure, classification, etc would remain the same across the
respective act of each state
▪ SGST is not applicable to the exempted goods and services as they do not come under
the influence of GST. Furthermore, SGST is also not applicable where the aggregate
annual turnover is less than the prescribed limit.
• State GST would be paid to the accounts of the respective State.
• Exceptions would be exempted goods and services, goods kept out of GST and
transactions below prescribed threshold limits.
• Basic features of law such as chargeability, taxable event, measure, valuation,
classification would be uniform across these Statutes / States as far as practicable

IGST Act 2017

The Act is called the Integrated Goods and Services Tax Act, 2017 (in short IGST), an Act
enacted to levy, collect and administer IGST in India.
This Act shall be applicable to the whole of India, i.e., including the State of Jammu &
Kashmir. And shall come into force from a date which will be notified by the Central
Government by way of a notification.
Salient features of IGST Act 2017
1. Integrated goods and services tax (IGST) would mean the tax levied under IGST Act on the
supply of any goods and / or services in the course of inter-state trade or commerce.
2. Integrated GST shall also apply to import of goods and services into India.
3. The IGST Act comprises of the following 11 Chapters, 33 Sections and 8 Definitions
4. There will be a uniform IGST rate across the country. Which will be shared by the Centre
and State.
5. Interstate trader will pay IGST after adjusting the available input IGST, SGST and CGST on
the transactions.
6. The IGST revenue collected by the centre will be apportioned between the centre and to
the state where the supply of goods or services was received. The collected revenue will be
apportioned to the centre at tax rate specified in the CGST Act. The rest will be apportioned
to the state.
7. The provisions of the CGST Act with respect to registration, valuation, time of supply of
goods and services, returns, refunds, prosecution, appeals will be applicable to the IGST Act.
8. The centre may exempt certain goods and services from the purview of IGST through a
notification. This will be based on the recommendations of the GST Council.
9. The Bill provides separate rules for goods and services to determine the place (state) of
their supply.

MEANING AND DEFINITIONS OF AGGREGATE TURNOVER UNDER GST

Turnover, in common parlance, is the total volume of a business. The term 'aggregate
turnover' has been defined in GST law as under:
According to Section 2(6) of the CGST Act, 'AGGREGATE TURNOVER' means the aggregate
value of all taxable supplies (excluding the value of inward supplies on which tax is payable
by a person on reverse charge basis), exempt supplies, exports of goods or services or both
and inter-state supplies of persons having the same Permanent Account Number, to be
computed on all India basis. But it excludes Central Tax, State Tax, Union Territory Tax,
Integrated Tax and Cess.
ATO would, therefore, include the following:
a. All taxable supplies other than reverse charge.
b. All supplies with distinct entities including interstate- Same PAN different GST
registrations (in different States or separate business vertical).
c. Supplies of agents/ job worker on behalf of the principal.
 d. Goods supplied/received back to/ from job worker on principal-to-principal basis.
e. Exempt supply: exempt under notification, non-taxable supplies (Specified
Petroleum Products like Diesel, Petrol, Liquor etc.)
f. Export or zero-rated supplies.
g. Taxes other than those under GST
Aggregate Turnover is
Total of
1. Taxable supply
2. Nontaxable supply
3. Exempt supply
4. Zero rated supply (EOU, SEZ, SEZD, EHTP, STP, FTZ, Exports)
5. Inter-state supply
6. Intra –state supply
7. Nil rated supply
It excludes
1. Taxes and Cess

Illustration 1:

Rituparna Pvt. Ltd. has manufacturing unit in Chennai, Tamil Nadu. They also have
service and manufacturing units all over India. Compute the aggregate turnover with the
following additional details furnished in the table below:

Business Unit of Location PAN Number Turnover (Rs.)

Rituparna Private Ltd Chennai AAACS1242M 15 Lakh (2 Lakh Nil rated
goods)
Rituparna Private Ltd Coimbatore AAACS1242M 2 Lakh
Rituparna Private Ltd Delhi AAACS1242M 5 Lakh
Rituparna Private Ltd Bangalore AAACS1242M 10 Lakh (3 Lakh exempted
services)
Rituparna Private Ltd Mangalore AAACS1242M 5 Lakh (IGST 1 Lakh)
Rituparna Private Ltd Jalandhar AAACS1242M 10 Lakh (2.5 Lakh Nontaxable
goods)

Solution:
In this case, turnover of all the units located in India will be added together to
compute aggregate turnover.
Computation of Aggregate Turnover
Particulars Amount in Rs.
Chennai 15 Lakh
Coimbatore 2 Lakh
Delhi 5 Lakh
Bangalore 10 Lakh
Mangalore (5 Lakh – 1 Lakh) 4 Lakh
 Jalandhar 10 Lakh
Aggregate Turnover 46 Lakh
Note: IGST paid shall not be considered while calculating Aggregate Turnover.

Illustration 2:
Mausami paper private limited has the following details for the year. Compute the
aggregate turnover:
1. Intra state supplies Rs4,00,000
2. Interstate supplies Rs.5,00,000
3. Nontaxable supplies (included in exempt supplies) Rs. 20,000
4. Value of exports Rs. 70,000
5. Exempt supplies Rs. 60,000
6. IGST paid Rs. 20,000
7. Export supply Rs. 20,000
Computation of aggregate turnover
Particulars Amount (₹)
Intra State Supplies 4,00,000
Interstate Supplies 5,00,000
Value of Export 70,000
Exempt Supplies 60,000
Export Supplies 20,000
Aggregate Turnover 10,50,000
Note: IGST paid is not a part of aggregate turnover.
Illustration 3:
M/s Chinmay of Mangalore has the following details for the year. Calculate the aggregate
turnover from the following details:
a. Supplied goods to Bangalore for Rs. 25 Lakh
b. Turnover of agriculture goods Rs. 38 lakh
c. Goods supplied to a unit of SEZ developer in Delhi Rs. 3 Lakh
d. Goods supplied to NGO working in Jammu and Kashmir Rs. 5 Lakh
e. Received goods from Narayan for Rs. 2 Lakh
f. Sold goods to Noida for Rs. 3.5 Lakh which includes IGST of Rs. 0.5 Lakh
Solution
COMPUTATION OF AGGREGATE TURNOVER
Particulars Amount (₹)
Supplied goods to Bangalore 25 Lakh
Agriculture turnover 38 lakh
Supplied to SEZD in Delhi 3 lakh
 Supplied to NGO in J&K 5 lakh
Supplied to Noida (3.5 lakh – 0.5 lakh) 3 lakh
Aggregate turnover 74 lakh
Note:
• Goods received from Narayan is an inward supply. Hence, it should not be included
for aggregate turnover
• IGST paid shall not be considered while calculating aggregate turnover

Illustration 4:
Mr. Murali has undertaken the following transactions for the year:
a) Supplied goods to UNO office for Rs. 25 Lakh
b) Sale of coconut grown by during the year for Rs. 12 Lakh
c) He sold goods to the office of chief minister of Karnataka for Rs. 15 Lakh
d) Supplied goods to a unit of FTZ at Delhi for Rs. 20 Lakh
e) Received goods of Rs. 8 Lakh from his job worker and supplied the same to
NGO located in Indore
f) He sold Areca nut grown by him for Rs. 15 lakh
g) Supplied pepper grown by him to broker at Patna for Rs. 3 lakh
h) Supplied goods to Life Insurance Corporation at Tumkur for Rs. 8 lakh
i) CGST, SGST and IGST paid by Murali Rs. 8 lakh
Solution
COMPUTATION OF AGGREGATE TURNOVER
Particulars Amount
(₹ in lakh)
a)Supplied to UNO 25
b)Sale of Coconut 12
c)Sold Goods to CM Office 15
d)Supplied Goods to FTZ 20
e)1. Goods received from Job Worker Not a Supply
2. Supplied the same goods to NGO located in Indore 8
f) Sale of Areca Nut 15
g) Sale of Pepper 3
h) Supplied Goods to Life Insurance Corporation at Tumkur 8
Aggregate Turnover 106
Note:
• SGST, CGST and IGST has to be excluded while calculating aggregate turnover as it is
not provided in definition of aggregate turnover.

Illustration 5:
Smt. Shruthi Shenoy is having her manufacturing unit at Karkala and Hyderabad also has
service unit at Hebri. From following information calculate aggregate turnover of Smt.
Shruthi Shenoy:
a) Sold goods from Karkala unit to a dealer at Mumbai for Rs. 37,50,000
b) Sold goods from Karkala unit to a dealer at Mandya for Rs. 7,50,000
c) Supplied goods from Hyderabad unit to USA for 30,00,000
d) Rendered service from Hebri unit to a person located in Dharwad for Rs. 1,50,000
e) Karkala unit supplies nontaxable goods to Ms. Nikhitha at Ajekar for Rs. 3,75,000
f) Supplied goods from Karkala unit to FTZ located in Kolkata for Rs. 7,50,000
g) Total CGST, SGST and IGST paid by Smt. Shruthi Shenoy for the year Rs. 4,50,000
h) Supplied goods which are exempt from tax from Hyderabad unit to a dealer at
Hubbali for Rs. 30,000

Solution
COMPUTATION OF AGGREGATE TURNOVER
Particulars Amount (₹)
Sold goods from karkala unit to a dealer at Mumbai 37,50,000
Sold goods from Karkala unit to a dealer at Mandya 7,50,000
Supplied goods from Hyderabad unit to USA 30,00,000
Rendered service from Hebri unit to a person located in Dharwad 1,50,000
Karkala unit supplies non-taxable goods to Ms. Nikhitha at Ajekar 3,75,000
Supplied goods from Karkala unit to FTZ located in Kolkata 7,50,000
Supplied goods which are exempt from tax from Hyderabad unit to a 30,000
dealer at Hubballi
Aggregate turnover 88,05,000
Note: Total CGST, SGST and IGST paid is excluded from Aggregate Turnover
Illustration 6:
Vivek Private Ltd is having its manufacturing units at Mangalore and Chennai. It also has
service unit at Mysore. From following information calculate aggregate turnover of Vivek
Private Ltd:
a. Sold goods from Mangalore unit to a dealer at Delhi for Rs. 25,00,000.
b. Sold goods from Mangalore unit to a dealer at Mysore for Rs. 5,00,000
c. Supplied goods from Chennai unit to UK for Rs. 20,00,000.
d. Rendered service from Mysore unit to a person located in Hubli for Rs. 1,00,000.
e. Mangalore unit supplies non-taxable goods to Mr. Narayan at Bangalore for Rs. 2,50,000.
f. Supplied goods from Mangalore unit to SEZ located in Delhi for Rs.5,00,000.
g. Total IGST and CGST& SGST paid by Vivek Private Ltd for the year Rs. 3,00,000.
h. Supplied goods which are exempt from tax from Chennai unit to a dealer at Dharwad for
Rs. 20,000.

Computation of Aggregate Turnover

Particulars Amount in Rs.
Supplied to dealer at Delhi 25,00,000
Supplied to dealer at Mysore 5,00,000
Supplied to UK 20,00,000
Provided service to Hubli 1,00,000
Supplied Non-taxable goods 2,50,000
Supplied to SEZ 5,00,000
Supply of exempted goods 20,000
Aggregate Turnover 58,70,000
Note: 1. IGST, CGST and SGST paid shall not be considered while calculating aggregate
turnover as it is not provided in definition of aggregate turnover.
Illustration 7:
Roshni Private Ltd is having its manufacturing units at Mandya and service unit at Mysore.
From following information calculate aggregate turnover of Roshni private Ltd:
1. Supplied goods to Belgaum for Rs. 28 Lakh.
2. Exports supply to Hong Kong for Rs. 23 Lakh which includes non-taxable services of
Rs. 3 Lakh.
3. Supplied goods to her Job worker Arun at Udupi for further processing of Rs. 10
Lakh.
4. Purchased goods from NGO at Delhi for Rs. 30 Lakh.
5. Job worker supplied all the goods to a dealer at UK for Rs. 12 Lakh.
6. A manufacturer in Kolkata received service from Mysore unit for Rs. 5 Lakh.
7. Office of the Central Government at Karwar received the services from Mysore unit
for Rs. 10 Lakh.
8. A dealer form Srinagar received goods from Mandya unit which are nil rate of GST
for Rs. 5 Lakh.
9. Total IGST and CGST& SGST paid by Roshni Private Ltd for the year Rs. 3 Lakh
10. Zero rated supply made from Mandya branch Rs. 10 Lakh
Solution:
COMPUTATION OF AGGREGATE TURNOVER
Particulars Amount (Rs. in Lakh)
Supplied to Belgaum 28
Export to Hong Kong 23
Supplied to UK directly by Job worker 12
Services rendered by Mysore unit 5
 Services rendered to Central Govt. office 10
Supplied to Srinagar 5
Zero rated supply 10
Aggregate Turnover 93
Note:
• Goods supplied to Job worker is not a part of turnover.
• Goods purchased i.e., inward supply and SGST, CGST and IGST has to be excluded while
calculating aggregate turnover as it is not provided in definition of aggregate turnover.
• Supply of goods directly by job worker to buyer should be included to aggregate
turnover.

Illustration 8:
Compute the aggregate turnover of Mr. Harshvardhan from the following under GST Act
2017:
1. Supplied goods to unregistered dealer at Hyderabad for Rs. 2,00,000.
2. Sold goods to UK for UNO purpose Rs. 3,00,000.
3. Sale of goods to Arun at Chamarajanagar Rs. 5,00,000
4. Sale of goods to Mr. Nagesh at Bidar for Rs. 2,00,000
5. Goods supplied to a job worker in Mangalore for Rs.15,00,000.
6. Job worker sends back the goods after processing for Rs. 8,00,000 and another
9,00,000 goods supplied to SEZ developer at Bangalore.
7. Harshvardhan purchased a truck for Rs. 8,00,000 and paid Rs. 2,00,000 as GST.
8. Received goods from registered dealer for Rs. 1,00,000.
9. Harshvardhan rendered a service to a company which is established in London for Rs.
2,00,000.
10. Harshvardhan paid Rs. 3,00,000 as GST to Government and Rs. 50,000 as job charges
to Job worker.
Solution:
Computation of Aggregate Turnover

Particulars Amount in (Rs.)

Supplied goods to unregistered dealer at Hyderabad 2,00,000
Sold goods to UK for UNO purpose 3,00,000
Sale of goods to Arun at Chamarajanagar 5,00,000
Sale of goods to Mr. Nagesh at Bidar 2,00,000
Goods supplied to a job worker in Mangalore Not a supply
Job worker sent back the goods aft er processing Not a supply
Goods supplied to SEZ developer at Bangalore 9,00,000
Harshvardhan purchased a truck Inward supply
Received goods from registered dealer Inward supply
 Harshvardhan rendered services to a company 2,00,000
Aggregate Turnover 23,00,000
Note: SGST, CGST and IGST has to be excluded while calculating aggregate turnover

Illustration 9:

Mr. Narendra of Mysore gives you the following details of transactions. Compute the
aggregate turnover from the following:
1. Sale of goods by Mr. Narendra to Mr. X in Chamarajanagar Rs. 5,00,000
2. Sale of goods by Mr. Narendra to Mr. Y in Mumbai Rs. 2,00,000
3. Sale of Goods by Mr. Narendra to XYZ company in Bangalore Rs. 1,50,000
4. The goods received by Mr. Narendra from unregistered dealer Rs. 10,000
5. Goods supplied by Narendra to a job worker in Mysore Rs.1,50,000 and returned after
completion
6. Supply of services to Mr. B and it is chargeable to tax Rs. 4,00,000 at zero rate
7. The sale of goods to a merchant in USA Rs. 5,00,000
8. Transfer of goods from branch in Mandya to a branch in Bangalore Rs. 5,00,000
9. The amount of CGST and SGST paid by Narendra Rs. 50,000

Solution:

COMPUTATION OF AGGREGATE TURNOVER

Particulars Amount in Rs.
Sale of goods by Mr. Narendra to Mr. X in Chamarajanagar 5,00,000
Sale of goods by Mr. Narendra to Mr. Y in Mumbai 2,00,000
Sale of Goods by Mr. Narendra to XYZ company in Bangalore 1,50,000
The goods received by Mr. Narendra from an unregistered dealer Excluded
Goods supplied by Mr. Narendra to a job worker in Mysore and returned Not a supply
after completion
Supply of services to Mr. B and it is chargeable to at zero rate tax 4,00,000
The sale of goods to a merchant in USA 5,00,000
Transfer of goods from Mandya branch to Bangalore (Intra State) Not a supply
The amount of CGST and SGST paid by Mr. Narendra Not a supply
Aggregate Turnover 17,50,000

Supply
Meaning of Supply
Supply of goods or services or both is defined as sale, transfer, barter, exchange, license,
rental, lease or disposal made or agreed to be made for a consideration by a person in the
course or furtherance of business. In the GST system, a taxable event is called a supply

TYPES OF SUPPLY
1. Based on location

1. Intra-State supply
Intra-State is a type of supply of goods or services where the location of the supplier and
the place of supply of goods are in the same State or same Union Territory.
Exceptions –
• Supply of goods to or by a Special Economic Zone developer or a SEZ unit or
• Goods imported into the territory of India or
• Supplies made to a tourist (section 15)

2. Territorial Waters
• Where the location of the supplier is in the territorial waters; or
• Where the place of supply is in the territorial waters;
The place of supply will be in the nearest Coastal State or Union Territory.

3. Inter-State supply: It is a supply of goods or services, where the location of the

supplier and place of supply are in-
• Two different States;
• Two different Union territories; or
• A State and a Union territoryt also includes import of goods or services into the
territory of India.
Further, the following shall be treated as an inter-state supply of goods or services:
• When the supplier is located in India and the place of supply is outside India;
• To or by a Special Economic Zone (SEZ) developer or a SEZ unit; or
• In the taxable territory, not being an intra-state supply and not covered elsewhere.
2. Based on Recipient

1. Inward Supply
It means receipt of goods or services or both whether by purchase, acquisition or any other
means with or without consideration.
2. Outward Supply
It means a supply of goods or services or both, whether by sale, transfer, barter, exchange,
license, rental, lease or disposal or any other mode, made or agreed to be made by such
person in the course or furtherance of business.

3. Based on Tax treatment

1. Exempt Supply
Exempt Supply of any goods or services is one which attracts nil rate of tax or which may be
wholly exempt from tax. It includes non-taxable supply. In the case of exempt supply in
respect of any goods and/or services, the taxable person shall not be required to pay tax.
2. Zero-Rated Supply
It means export or supply of goods or services to a Special Economic Zone developer or a
Special Economic Zone unit.
3. Non-Taxable Supply
Non-taxable supply is the sale of any good or service which attracts nil rate of tax and is
similar to exempt supply.
4. Taxable Supply
Supply on which tax shall be paid under GST. The rates of taxes are 0% ,5%, 12% ,18%, 28%

4. Based on Combination

1. Composite Supply
It means a supply made by a taxable person to a recipient consisting of two or more taxable
supplies of goods or services or both, or any combination thereof, which are naturally
bundled and supplied in conjunction with each other in the ordinary course of business, one
of which is a principal supply.
Examples:
1. A dealer sells a brand-new vehicle along with registration, insurance, a tool kit and first
aid kit, and 4 free maintenance services.
2. Booking a Rajdhani train ticket which includes meal and insurance also.
The tax rate of the principal supply will apply on the entire supply.
Example: Goods are packed and transported with insurance. The supply of goods, packing
materials, transport and insurance is a composite supply. Insurance, transport cannot be
done separately if there are no goods to supply. Thus, the supply of goods is the principal
supply. Tax liability will be the tax on the principal supply i.e., GST rate on the goods.
A supply of goods and/or services will be treated as composite supply if it fulfills the
following criteria:
1. Supply of two or more goods or services together.
2. It is a natural bundle, i.e., goods or services are usually provided together in the
normal course of business.
3. They cannot be separated.
2. Mixed Supply: It means two or more individual supplies of goods or services, made in
conjunction with each other by a taxable person for a single price where such supply does
not constitute a composite supply.
For example: If a tooth paste (say for instance it is liable to GST at 12%) is bundled along
with a tooth brush (say for instance it is liable to GST at 18%) and is sold as a single unit for
a single price, it would be reckoned as a mixed supply.
Under GST, a mixed supply will have the tax rate of the item which has the highest rate of
tax.
For example- A Diwali gift box consisting of canned foods, sweets, chocolates, cakes, dry
fruits, and aerated drink and fruit juices supplied for a single price is a mixed supply. All are
also sold separately. Since aerated drinks have the highest GST rate of 28%, aerated drinks
will be treated as principal supply and 28% will apply on the entire gift box.

3. Continuous Supply
Continuous supply is of two types viz., continuous supply of goods and continuous supply
of services.
Continuous supply of goods means a supply of goods which is provided, or agreed to be
provided, continuously or on recurrent basis, under a contract, whether or not by means of
a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on
a regular or periodic basis and includes supply of such goods as the Government may,
subject to such conditions, as it may, by notification.
Continuous supply of services means a supply of services which is provided, or agreed to be
provided, continuously or on recurrent basis, under a contract, for a period exceeding three
months with periodic payment obligations and includes supply of such services as the
Government may, subject to such conditions, as it may, by notification.

Illustration 1:
Classify the following supplies into Composite Supply and Mixed Supply:
a) Supply of cable and setting the connection. - Composite Supply
b) Supply of parcel consisting of wheat powder, masala powder, sugar and rice. -
Mixed Supply
c) Supply of juice in bottle- Composite Supply
d) Supply of ceiling fan and regulator. - Composite Supply
e) Supply of cement and paint. - Mixed Supply
f) Supply of furniture and mat. - Mixed Supply
g) Supply and fixing of the vehicle battery. - Composite Supply
h) Supply of combo packs of tie, watch, wallet, pen, writing pad bundled together as
a kit. - Mixed Supply

Illustration 2:
Classify the following supplies into Composite Supply and Mixed Supply:
a) Supply of goods, packing materials, transport and insurance. - Composite
Supply
b) Supply of Diwali gift box consisting of canned foods, sweets, cakes and aerated
drinks. – Mixed Supply
c) Supply of tooth paste with brush.- Mixed Supply
d) Supply of shaving cream and razor.- Mixed Supply
e) Supply of laptop, mouse and keyboard. - Mixed Supply
f) Painting of building. - Composite Supply
g) Combo pack of Santoor soap and hand wash.- Mixed Supply
h) Buy two soaps and get 250 ml juice bottle. .- Mixed Supply
i) Installation of Plant – Composite Supply
j) Fixing of rear mirror to car. – Composite Supply
k) Supply of coconut oil with cans.- Composite Supply
l) Erection of machinery and warranty. – Composite Supply

Illustration 3:
Determine the following supplies into Composite supply and Mixed supply:
a) Supply of readymade shirts packed in designer boxes along with insured during
transit. – Composite Supply
b) A travel ticket from Mumbai to Delhi may include service of food being served
onboard, free insurance, and the use of airport lounge. - Composite Supply
c) A supply of a package consisting of canned foods, sweets, chocolates, cakes,
dryfruits, aerated drink and fruit juices. – Mixed Supply
d) A consumer buys a television set and he also gets warranty and a maintenance
contract with the TV. - Composite Supply
e) Taxi driver makes Retreading of tyres with job worker. - Composite Supply
f) A shopkeeper selling storage water bottles along with refrigerator. – Mixed
Supply
g) A house is given on rent through a single rent deed - one floor of which is to be
used as residence and the other for housing a printing press, at a lump sum rent
amount. – Mixed Supply
h) A trader supplied a charger along with mobile phones. - Composite Supply
i) Ms. Suman received a gift pack comprising of chocolates, candies, sweets and
balloons. – Mixed Supply
j) A hotel provides 4 days-3 nights package wherein the facility of breakfast and
dinner is provided along with the room accommodation. - Composite Supply
k) A toothpaste company has offered the scheme of free toothbrush along with
the toothpaste. – Mixed Supply
l) Buying a Dry Fruit Gift Box for Diwali. It includes dry fruits, a box and a wrapper.
- Composite Supply
m) A Laptop is supplied along with Window 10 and MS Office (licensed version of
both are installed in the laptop). Laptop is given along with the bag and it carries
onsite warranty for 3 years. – Composite Supply
 Illustration 4:
Classify the following supplies into Composite Supply and Mixed Supply:
a) Restaurant with lodging. – Composite Supply
b) Supply of coconut oil with cans.- Composite Supply
c) Supply of car and vehicle insurance. – Mixed Supply
d) Supply of laptop with Bag. - Composite Supply
e) Air transport and food on board- Composite Supply
f) Combination of hotel accommodation, auditorium and food. - Composite Supply
g) Five- star hotels often provide free laundry services on staying at the hotel.-
Composite Supply
h) Booking Rajdhani train ticket which includes meal. - Composite Supply
i) Supply of bricks, cement, sand along with services of labourers, engineers,
architects to construct a building. - Composite Supply
j) Buy detergent get bucket free. – Mixed Supply
TAXABLE TURNOVER
Taxable Turnover:
As per GST terms, Taxable Turnover means the Taxable value of all taxable supplies. It
excludes exempt supplies, exports of goods or services or both and inter-State supplies of
persons having the same Permanent Account Number, to be computed on all India basis
but excludes central tax, State tax, Union territory tax, integrated tax and cess.
It excludes nil rated, non-taxable, exempted, zero rated, inward supply, exports.
Incidence Taxable Supply for ATO and TTO
Sl. No Particulars ATO TTO
1 Supply of Goods & Services between two states Yes Yes
(Interstate)
2 Supply of Goods & Services between two Union Yes Yes
territories (Inter Territories)
3 Branch transfer of Goods & Services between two Yes Yes
states (Interstate)
4 Branch transfer of Goods & Services between Yes Yes
two Union territories (Inter Territories)
5 Supply of Goods & Services within the same Yes Yes
State (intra state)
6 Supply of Goods & Services within the same Union Yes Yes
Territory (intra territories)
7. Branch transfer of Goods & Services within the same No No
state (intra state)
8. Branch transfer of Goods & Services within the same No No
Union territory (Intra territory)
9 Supply of Goods & Services outside India (Export) Yes Zero Rated

10 Supply of Goods & Services to EOU, SEZ, FTZ, Yes Zero Rated
EHTP, STP, etc. (Deemed Export)
11 Supply of goods to job worker No No
Illustration 1:
Mr. Akshay Kumar has manufacturing unit in Hebri, Karnataka. He also has service units and
manufacturing units all over India. Compute the Aggregate Turnover and Taxable Turnover
with the following details furnished in the table below:
Business Unit Of Location PAN TURNOVER
Mr. Akshay Kumar Mumbai ABCDE123Z 22.5 Lakh ( 3 lakh Nil rated goods)
Mr. Akshay Kumar Delhi ABCDE123Z 3 lakh
Mr. Akshay Kumar Kolkata ABCDE123Z 7.5 lakh
Mr. Akshay Kumar Chennai ABCDE123Z 15 lakh (4.5 lakh exempted services)
Mr. Akshay Kumar Bengaluru ABCDE123Z 7.5 lakh (IGST 1.5 Lakh )
Mr. Akshay Kumar Hyderabad ABCDE123Z 15 lakh (3.75 lakh Nontaxable goods)

Solution
COMPUTATION OF AGGREGATE TURNOVER AND TAXABLE TURNOVER
Particulars Aggregate Turnover (₹) Taxable Turnover (₹)
Mumbai 22,50,000 19,50,000
Delhi 3,00,000 3,00,000
Kolkata 7,50,000 7,50,000
Chennai 15,00,000 10,50,000
Bengaluru 6,00,000 6,00,000
Hyderabad 15,00,000 11,25,000
Total 69,00,000 57,75,000

Illustration 2:
From the following particulars compute Aggregate Turnover (ATO) and Taxable Turnover
(TTO) of a dealer at Mysore:
Sl. No Particulars Amount (Rs.)
1 Outward supply to a dealer in Chennai 6,00,000
2 Outward supply to a dealer in Mumbai 4,60,000
3 Export of Goods to an importer in London 8,00,000
4 Outward supply to a dealer in Jammu & Kashmir 3,50,000
5 Outward supply to a dealer in Bangalore 8,00,000
6 Outward supply to a FTZ in Cochin 6,00,000
7 Outward supply of exempted goods to a dealer in Goa 4,80,000
8 GST Paid 4,60,000
Solution:
Computation of Aggregate Turnover (ATO) and Taxable Turnover (TTO)
Sl. No Particulars ATO TTO
1 Outward supply to a dealer in Chennai 6,00,000 6,00,000
2 Outward supply to a dealer in Mumbai 4,60,000 4,60,000
3 Export of Goods to an importer in London 8,00,000 Zero rated
4 Outward supply to a dealer in Jammu & 3,50,000 3,50,000
Kashmir
5 Outward supply to a dealer in Bangalore 8,00,000 8,00,000
6 Outward supply to a FTZ in Cochin 6,00,000 Zero rated
7 Outward supply of exempted goods to a 4,80,000 Exempted
dealer in Goa
8 GST Paid - -
Total 40,90,000 22,10,000

Illustration 3:
From the following transactions state the type of tax payable under GST law by registered
person:
1. Sale of goods from Bombay to Delhi
2. Goods sold within Bombay
3. Goods sold from Bombay to Pune
4. Sale of goods from Karnataka to Maharashtra
5. Sale of goods from Mysore to Dharwad
6. Sale of goods from Bangalore to Shimla
7. Export of goods from Bangalore to New York, USA.
8. Provision of services by an Indian company to its wholly owned subsidiary in Australia
9. Supplied goods to SEZ developer

CIRCUMSTANCES CGST SGST IGST

1. Sale of goods from Bombay to Delhi No No Yes
2. Goods sold within Bombay Yes Yes No
3. Goods sold from Bombay to Pune Yes Yes No
4. Sale of goods from Karnataka to Maharashtra No No Yes
5. Sale of goods from Mysore to Dharwad Yes Yes No
6. Sale of goods from Bangalore to Shimla No No Yes
7. Export to USA No No Yes (At zero
rate)
8. Provision of service to wholly owned subsidiary No No Yes (At zero
outside India rate)
9. Supplied goods to SEZ developer (Deemed Export) No No Yes (At zero
rate)
Illustration 4:
Mr. Nagaraju is a registered dealer in Haryana furnishes the following details. State the type
of tax payable under GST law:
1. Supplied goods to Kolkata
2. Purchased Cashewnut from an unregistered dealer within the state of Haryana
(RCM)
3. Sold goods to Infosys ltd., Bangalore.
4. Supplied goods to NGO at Noida
5. Supplied goods for job worker at Delhi
6. Transfer goods to his branch at Pune
7. Supplied goods to EHTP
8. Rendered services to Xylu Ltd, at Japan
9. Obtained services from a registered dealer of Haryana
10. Sold goods to Andaman
11. Supplied services to Lakshadweep
12. Purchased goods from a person who is registered under GST from within the state.
13. Supplied goods to a dealer who is registered under composition scheme in Haryana
14. Received goods from Lakshadweep
15. Obtained Legal Services from an Advocate

Solution:
CIRCUMSTANCES CGST SGST UTGST IGST
1. Supplied goods to Kolkata No No No Yes
2. Purchased Cashewnut from an Yes Yes No No
unregistered dealer within the state of (RCM) (RCM)
Haryana (RCM)
3. Sold goods to Infosys ltd., Bangalore No No No Yes
4. Supplied goods to NGO at Noida No No No Yes
5. Supplied goods for job worker at Delhi No No No No
6. Transfer goods to his branch at Pune No No No Yes
7. Supplied goods to EHTP (Deemed Exports) No No No Yes
(At zero rate)
8. Rendered services to Xylo Ltd., at Japan No No No Yes
(Exports) (At zero rate)
9. Obtained services from a registered dealer No No No No
of Haryana (Inward Supply)
10. Sold goods to Andaman No No No Yes
11. Supplied services to Lakshadweep No No No Yes
12. Purchased goods from a person within the No No No No
state. (Inward Supply)
13. Supplied goods to dealer who is registered Yes Yes No No
under composition scheme in Haryana
14. Received goods from Lakshadweep No No No No
(inward supply)
15. Obtained Legal Services from an Advocate Yes Yes No No
(Reverse Charge Mechanism) (RCM) (RCM)
Note:
1. Supplied to job work is not a supply.
2. Purchased from registered person is inward supply.

Illustration 5:
Mr. Chinmay Raj, is a registered dealer in Mangalore provides the following information for
the month of November.
a. Commodity A sold to a dealer in Delhi rate of GST notified to this commodity @ 12%
for ₹ 3,00,000
b. Commodity X sold @ nil rate of GST to a dealer at Bangalore for ₹ 2,00,000
c. Product B sold to a dealer in Mumbai rate of GST @ 5% for ₹ 2,50,000
d. Product R exported to UK the GST rate @ 12% if it is sold in India for ₹ 4,00,000
e. Commodity A sold to a dealer of Jammu and Kashmir rate of GST notified to this
commodity @ 12% for ₹ 3,00,000
f. Product R sold to an unregistered dealer of Mandya GST rate @ 12% for ₹ 4,00,000
g. Product B rate of GST 5% sold to SEZ developer in Bangalore for ₹ 3,00,000
h. Product X sold to a dealer in Haryana GST rate 12% for ₹ 5,00,000
i. Product S which is exempted from GST is sold to a registered dealer in Punjab for ₹
5,00,000
j. Product N sold to a dealer in Dharwad who has registered under composition scheme
@ 28% GST for ₹ 2,00,000
k. Product B sold to a unit of FTZ in Gujarat GST rate 5% for 10,00,000.
l. Product M sold to registered dealer within the state the rate GST @ 18% for ₹
5,00,000
Determine the turnover which is liable for tax under CGST and SGST and IGST and duly
payable.

Solution:
Computation of turnover under IGST and its tax liability
Particulars Taxable Rate of IGST
turnover tax (%) Payable
Commodity A sold to a dealer in Delhi 3,00,000 12 36,000
Product B sold to a dealer in Mumbai 2,50,000 5 12,500
Product R exported to UK the GST Exports Zero rate Zero rate
Commodity A sold to a dealer in Jammu & Kashmir 3,00,000 12 36,000
Product B sold to SEZ developer in Bangalore Exports -- Zero rate
(Deemed Exports)
Product X sold to a dealer in Haryana 5,00,000 12 60,000
Product S which is exempted from GST Exempt --- Exempt
Product B sold to a unit of FTZ in Gujarat Exports -- Zero rate
(Deemed Exports)
Total turnover for IGST 13,50,000 - 1,44,500
Note: All exports can be treated as zero rate supply under GST law
 Computation of turnover under SGST & CGST and its tax liability
Particulars Taxable SGST CGST
Turnover Payable Payable
Commodity X sold @ nil rate Nil rate Nil Rate Nil Rate
Product R sold to an unregistered dealer in Mandya 4,00,000 24,000 24,000
GST- Rate @ 12%
Product N sold to a dealer in Dharwad @ 28% 2,00,000 28,000 28,000
Product M sold to registered dealer within the 5,00,000 45,000 45,000
state @ 18%
Total turnover for SGST and CGST 11,00,000 97,000 97,000

Note: All exports can be treated as zero rate supply under GST law

Illustration 6:
Mr. Vinod is a registered dealer in Bhopal. From the following particular compute turnover
which is taxable under IGST and IGST payable:
1. Product C worth ₹ 2, 04,000 sold to a registered dealer of Punjab @28%
2. Product M amounting to ₹ 2, 00,000 supplied to a dealer of Srinagar @12%
3. Product B worth ₹ 2, 20,000 were transferred to their branch at Kolkata IGST @18%
4. Commodity Z worth ₹ 3, 00,000 supplied to job worker of Bangalore @12%
5. Ayurvedic medicines worth ₹ 1,64,800 are sold to the registered dealer of Maharashtra
@12%
6. Product S worth ₹54,000 are sold to the registered dealer of Uttar Pradesh @5%
7. Product G rated @5% amounting to ₹ 3, 10,000 were sold to firm of London in the course
of export outside India
8. Product S amounting to ₹ 5,40,000 are sold to a registered dealer of UP @5%
9. Received goods from a registered dealer of Haryana for ₹5,00,000 @12%
10. Sale of alcoholic liquor for human consumption to a registered dealer In Bihar for
₹3,00,000
11. Sale of Petroleum products to a registered dealer in UP for ₹2, 50,000
12. Commodity X Imported from UK ₹ 8,00,000 @12%
13. Supplied product L worth ₹8, 00,000 to dealer in Bhopal @5%
14. Product R amounting to ₹ 3,45,000 sold to an unregistered dealer of Bhuvneshwar 12%
15. Rendering a service worth ₹ 3, 00,000 to a person of New Delhi
16. Product S sold to a dealer of Arunachala Pradesh for ₹ 3, 55, 000 @15%
 PARTICULARS TAXABLE RATE OF IGST
TURNOVER TAX (%) PAYABLE
Product C sold to registered dealer of Punjab 2,04,000 28 57,120
Product M supplied to dealer of Srinagar 2,00,000 12 24,000
Product M were transferred to their branch at 2,20,000 18 39,600
Kolkata (Interstate)
Ayurvedic medicines are sold to the registered 1,64,800 12 19,776
dealer of Maharashtra
Product S sold to the registered dealer of Uttar 54,000 5 2,700
Pradesh
Product S sold to UP 5,40,000 5 27,000
Commodity X Imported from UK 8,00,000 12 96,000
Product R sold to an unregistered dealer of 3,45,000 12 41,400
Bhuvneshwar
Rendering a service to a person of New Delhi 3,00,000 18 54,000
Product S sold to a dealer of Arunachal Pradesh 3,55,000 15 53,250
TOTAL TURNOVER FOR IGST 31,82,800 4,14,846
NOTE:
➢ Supplied to job worker is not a supply under GST law
➢ Exports are considered as zero-rated supply under GST law
➢ Goods purchased from registered dealer is inward supply. Hence it is not taxable
under GST law
➢ Petroleum products and alcohol for human consumption are free from GST
➢ Any supply made within the state are taxable under SGST and CGST

Illustration 7:
Ms. Madhav and Company registered dealer in Maharashtra furnishes the following
information for the month of November. Compute the turnover under SGST/CGST/IGST:
1. Goods of ₹ 8,00,000 sold to a dealer at Patna
2. Commodity worth ₹3,50,000 sold to an unregistered dealer of Assam
3. Goods supplied within the state ₹ 2,20,000
4. Product X supplied to a dealer at Pune for ₹5,45,000
5. Product S worth ₹ 3,00,000 sent to job worker at Mumbai
6. Goods worth ₹5,00,000 supplied to a unit of EOU at New Delhi
7. Goods amounting to ₹3,00,000 supplied to Andaman
8. Goods worth ₹3,75,000 received from a registered dealer at Nagpur
9. Commodity Z supplied to a dealer at London for ₹7,65,000
10. Supplied goods of ₹ 85,000 to Jammu and Kashmir
11. Goods of ₹2,50,000 supplied from job worker place directly to dealer to Pune.
12. Commodity Z worth ₹ 6,10,000 transferred to their branch in Karnataka
13. Goods purchased from a registered dealer of Mumbai for ₹10,00,000
 14. Goods worth ₹3,25,000 supplied to a registered dealer at Lakshadweep
15. Goods worth ₹ 2,00,000 received from job worker
16. Goods worth ₹8,00,000 sent to job worker at Nagpur. He supplied goods directly
after processing to a dealer at Bangalore for ₹5,00,000 and a registered dealer at
Pune for ₹4,00,000
17. Goods sold to a dealer of Mysore who has registered under composition scheme for
₹3,00,000
18. Goods purchased from a registered dealer at Pune ₹3,00,000

COMPUTATION TURNOVER WHICH IS TAXABLE UNDER SGST/CGST/IGST

PARTICULARS SGST/CGST IGST

1. Goods sold to a dealer at Patna - 8,00,000
2. Commodity sold to an unregistered dealer of Assam - 3,50,000
3. Goods supplied within state 2,20,000 -
4. Product X supplied to a dealer at Pune 5,45,000 -
5. Goods supplied to Andaman 3,00,000
6. Goods received from a registered dealer at Nagpur - -
(Inward supply)
7. Supplied goods to Jammu and Kashmir - 85,000
8. Goods supplied from job worker place directly to
dealer of Pune 2,50,000 -
9. Commodity Z transferred to their branches in - 6,10,000
Karnataka (interstate transfer)
10. Goods purchased from a registered dealer of Mumbai - -
(Inward Supply)
11. Goods supplied to a registered dealer at Lakshadweep 3,25,000
12. Goods supplied directly by
a. job worker to a dealer at Bangalore 5,00,000
b. and registered dealer at Pune 4,00,000
13. Goods sold to a dealer of Mysore who has registered 3,00,000
under composition scheme
14. Goods purchased from a registered dealer at Pune - -
(Inward Supply)
TOTAL TURNOVER FOR IGST 14,15,000 32,70,000

NOTE:
➢ Supplied to job worker is not a supply under GST law
➢ Goods supplied to other countries and SEZ/EOU considered as export at Zero rated
supply under GST law
➢ Goods supplied by job worker directly from his place is taxable in the hands of principal
supplier under GST law
➢ Goods received from job worker further processing is not supply. Hence it is not taxable
under GST law
➢ Goods purchased from registered dealer is inward supply. Hence it is not taxable under
GST law

ILLUSTRATION 8:
Following are the transactions of taxable person in Tamilnadu for the month of December.
Compute taxable turnover and Output Tax.
a) Supply to a taxable person in Salem (5%) Rs. 2,00,000
b) Supply to a taxable person in Karnataka (nil rate) Rs. 4,80,000.
c) Supply to a taxable person in Chennai (12%) Rs. 4,00,000.
d) Supply to a taxable person in Nagercoil (Tamilnadu) at the instructions of a dealer in
Jammu and Kashmir (18%) Rs. 8,00,000.
e) Supply to an unregistered person in Tamilnadu (12%) Rs. 3,20,000.
f) Supply to SEZ developer in Tamilnadu (18%) Rs. 8,00,000.
g) Supply to taxable person in Pondicherry (12%) Rs. 4,00,000.
h) Supply to a registered person in Mumbai (exempt) Rs. 600,000.
i) Export to Nepal (12%) Rs. 8,00,000.
j) Supply to a unit of SEZ in Coimbatore (5%) Rs. 6,00,000.
k) Supply to taxable person in Madurai (12%) Rs. 3,00,000.
l) Supply to a composite dealer in Surat (18%) Rs.8,00,000.
m) Free sample distributed to different traders (5%) Rs. 50,000.
n) Stock transfer from Coimbatore to Hubli (5%) Rs. 2,50,000.
o) Goods consumed in the business (12%) Rs. 50,000.
Computation of taxable turnover and output tax for December
[Link] Particulars Taxable Rate IGST CGST SGST
Turnover
a. Supply to a taxable
person in Salem (TN) 2,00,000 5% 5,000 5,000
b. Supply to a taxable
person in Karnataka (Nil Nil Rated Nil Rate Nil Rate
Rate)
c. Supply to a taxable
person in Chennai 4,00,000 12% 24,000 24,000
d. Supply to a taxable
person in Nagercoil (TN)
at the instructions of a 8,00,000 18% 1,44,000
dealer in Jammu and
Kashmir
e. Supply to an
unregistered person in 3,20,000 12% 19,200 19,200
Tamilnadu
 f Supply to SEZ developer
in Tamilnadu (Deemed Deemed 0% Zero
export) Export Rate
g. Supply to taxable person 4,00,000 12% 48,000
in Pondicherry
h. Supply to a registered
person in Mumbai Exempt 0% Exempt
(Exempt)
i. Export to Nepal Zero 0% Zero
Rated Rate
j. Supply to a unit of SEZ in
Coimbatore (TN) Deemed 0% Zero
(Deemed Export) Export Rate
k. Supply to taxable person
in Madurai (TN) 3,00,000 12% 18,000 18,000
l. Supply to a composite
dealer in Surat 8,00,000 18% 1,44,000
m. Free sample distributed
to different traders (Not ------ ------ ------ ------ ------
a supply)
n. Stock transfer from
Coimbatore to Hubli 2,50,000 5% 12,500
o. Goods consumed in the
business (Not a Supply) ------ ------ ------ ------ ------
Taxable Turnover & 34, 3,48,500 66,200 66,200
Output tax 70,000

ILLUSTRATION 9:
Mr. Vikshithraj is a registered person in Bangalore provides the following information for
the month of November. Compute the value of taxable turnover and the output tax.
a) Supply to a dealer in Pune rate of GST 12% for Rs.8,00,000.
b) Supply to a dealer in Delhi @ Nil rate GST sold for Rs.2,00,000.
c) Sale to a dealer in Mangalore rate of GST @5% for Rs.9,80,000.
d) Exported to Denmark the GST rate @ 12% for Rs.15,00,000.
e) Supply to a dealer in Haryana @ 12% for Rs.2,00,000.
f) Sold to an unregistered dealer in Mysore GST rate @ 12% for Rs.15,00,000.
g) Supply to SEZ developer in Udupi GST 5% sold for Rs.8,00,000.
h) Sold to a dealer in Punjab GST rate @ 12% for Rs.4,00,000.
i) Exempt goods supplied to a registered dealer in Rajasthan for Rs.4,00,000.
j) Sale to a dealer in Hassan has registered under composite scheme @12% GST
for Rs.5,00,000.
k) Sold to a unit of SEZ in Chennai GST rate 5% Rs.2,00,000.
l) Supply to registered dealer within the state for Rs.6,00,000, GST @ 18%.
Computation of taxable turnover and output tax
Sl. Particulars Taxable GST Output Tax
No. Turnover Rate
IGST(Rs) CGST(Rs) SGST(Rs.)
(Rs)
a. Supply to a dealer 8,00,000 12% 96,000
in Pune
b. Supply to a dealer Nil Rate 0% Nil Rate
in Delhi (Nil Rate)
c. Sale to a dealer in 9,80,000 5% 24,500 24,500
Mangalore
d. Exported to Zero Rated 0% Zero
Denmark Rate
e. Supply to a dealer 2,00,000 12% 24,000
in Haryana
f. Sold to an 15,00,000 12% 90,000 90,000
unregistered
dealer in Mysore
g. Supply to SEZ Zero Rated 0% Zero Rate
developer in
Udupi
(Deemed Export)
h. Sold to a dealer in 4,00,000 12% 48,000
Punjab
i. Exempt goods Exempt Exempt Exempt
supplied to a
registered dealer
in Rajasthan
j. Sale to a dealer in 500,000 12% 30,000 30,000
Hasan
k. Sold to a unit of Zero Rated 0% Zero Rate
SEZ in Chennai
(Deemed Export)
l. Supply to 6,00,000 18% 54,000 54,000
registered dealer
in within the state
Taxable Turnover & 49,80,000 1,68,000 1,98,500 1,98,500
Output Tax

ASSIGNMENT
Following are the transactions of taxable person in Karnataka for the month of November.
Compute total turnover and GST payable.:
a) Supply to a taxable person in Mysore (5%) Rs.1,00,000.
b) Supply to a taxable person in Goa (nil rate) Rs.2,40,000.
c) Supply to a taxable person in Bangalore (12%) Rs.2,00,000.
d) Supply to a taxable person in Udupi (5%) Rs.1,00,000
e) Supply to an unregistered person in Mangalore (28%) Rs.6,40,000.
f) Supply to SEZ developer in Bangalore (18%) Rs.10, 00,000.
g) Supply to taxable person in Pondicherry (12%) Rs.8, 00,000.
h) Supply to a registered person in Pune (exempt) Rs.12, 00,000.
i) Export to China (12%) Rs.9,00,000.
j) Supply to a unit of SEZ in Mysore (5%) Rs.6,00,000.
k) Supply to taxable person in Udupi (12%) Rs.5,00,000.
l) Supply to dealer in Belgaum (28%) Rs.4,00,000.

Exempted Services
1. Agricultural Services: This includes all services related to agriculture except the
rearing of horses. Exempt services include cultivation, harvesting, supply of farm
labour, fumigation, packaging, renting or leasing of machinery for agricultural
purposes, warehouse activities, and services by an Agricultural Produce Marketing
Committee or Board that is provided by an agent for the sale or purchase of
agricultural produce.
2. Transportation Services:
• Transportation service by road or bridge on payment of toll; transportation of goods
by road(except when carried out by transportation agency or courier agency).
• Transportation of goods by inland waterways.
• Transportation of passengers by air (in the states of Manipur, Meghalaya, Assam,
ArunachalPradesh, Nagaland, Sikkim, Tripura, and Bagdogra).
• Transportation by non-AC horse or contract carriages; transportation of agricultural
produce,milk, salt, newspapers, or woodgrains.
• Transportation of goods where the gross amount charged is less than Rs. 1,500.
• Hiring services provided to any state transport undertaking, including motor vehicles
with a capacity to carry more than 12 passengers; services provided to goods
transport agencies.
3. Services provided by the Government and Diplomatic Missionaries
• Services by any foreign diplomatic mission located in India.
• Services provided by the Reserve Bank of India.
• Services by the Government or any local authority except the following services:
a. Services by the Department of Posts via speed post, express parcel post, life
insurance, and agency services provided to any individual other than the
government.
b. Services related to an aircraft/vessel within or beyond the boundaries of a
port or airport.
c. Transportation of goods or passengers.
d. Any other service, except those that come under (a) and (b), that is provided to
 business entities.
• Life insurance services provided under the National Pension System; life insurance
provided by the Army, Naval and Air Force Groups.
4. Judicial Services
• Services provided by an arbitral tribunal (i.e., services provided by the court or a judge)
to any individual other than a business entity or to a business entity with a turnover up
to Rs. 20 lakh (Rs. 10 lakh for special category states) in the preceding financial year.
• Services provided by a partnership firm of advocate(s) to: an advocate or partnership
firm ofadvocates, any individual that is not a business entity, or a business entity with a
turnover up to Rs. 20 lakh (Rs. 10 lakh for special category states) in the preceding
financial year.
• Services provided by a senior advocate (legal services) to any individual other than a
business entity or to a business entity with a turnover up to Rs. 20 lakh (Rs. 10 lakh for
special category states) in the preceding financial year.
5. Educational Services
• Transportation of students and faculty, mid-day meal catering services, admission,
examination services, and security and housekeeping services.
• Services provided by Indian Institutes of Management (except the Executive
Development Programme).
6. Medical Services
• Services provided by a veterinary clinic; health-care services provided by clinics or
paramedics.
• Services provided by ambulances, charities, and organizations facilitating religious
pilgrimage.
7. Services provided by organizers
• Services provided by organizers for business exhibitions held outside India.
• Services provided by tour operators to foreign tourists (this includes tours that are
conducted completely outside India).
8. Miscellaneous Services
• Transmission or distribution of electricity by authorized personnel.
• Services provided by recognized sports bodies.
• Services provided by journalists, Press Trust of India, or United News of India. This
includes the collection and provision of news.
• Services provided by slaughter houses.
• Services provided by libraries.
• Services provided for public conveniences, such as washrooms, lavatories, urinals, and
toilets.
• Services provided for conducting religious ceremonies, including renting the premises
of any religious place.
9. New exemptions that have been added:
• Services provided by the GSTN to the Central government, State government, and
Union Territories.
• Services related to renting property for residential purposes and renting rooms with
 charges less than Rs.1,000 per day.
• Admission to circuses, theatrical performances, award ceremonies, sport events (other
than recognized sport events), and admission to recognized sport events which charge
less than Rs. 250/- per person for registration. This also includes admission services for
museums, national parks, wildlife sanctuaries, zoos, etc.
• Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under
Pradhan Mantri Jan Dhan Yojana (PMJDY)
• Services supplied by rehabilitation professionals recognized under Rehabilitation
Council of India Act, 1992 at hospitals, schools or rehabilitation centres established by
Government or charitable institute registered under Section 12AA of The Income tax
Act,1961.
• Loan guarantee services provided by Government to its undertakings and PSUs for
bank loans.

Illustration 1:
Mr. Arun is a registered dealer in Karnataka provides the following services during December
2024. Compute the value of taxable services and GST payable for the month of December
2024:
Particulars Amount (Rs.)
Services provided to RBI 2,50,000
Advance received from his client for the services to be rendered to 1,36,500
make crops ready for retail market
Services relating to education 78,500
Received from a client for the services rendered in November 2024
for which invoice was raised and issued to him on 28.12.2024 1,32,650
Services rendered by supply of labour for agricultural purposes 80,700
Free services rendered to his relatives and friends 96,850
Placement services 1,65,900
Services by way of training in recreational activities 97,850
Health care services 68,250
A bill was raised and issued to his client for services rendered but no
payment is received (Date of bill is 16.12.2024) 3,75,000
Part payment of Rs. 22,500 was received from a client in respect of 75,600
Services rendered
Renting of agro machinery for agricultural purposes 6,10,000
Services rendered in Jammu and Kashmir 70,000
Solution:
Computation of Taxable Services (Intra State)
Particulars Amount (Rs.)
Services provided to RBI 2,50,000
Advance received from his client for the services to be rendered to
make crops ready for retail market 1,36,500
Services relating to education Exempted
 Received from a client for the services rendered in November 2024
for which invoice was raised and issued to him on 28.12.2024 NIL
Services rendered by supply of labour for agricultural purposes Exempted
Free services rendered to his relatives and friends 96,850
Placement services 1,65,900
Services by way of training in recreational activities Exempted
Health care services Exempted
A bill was raised and issued to his client for services rendered but no
payment is received (Date of bill is 16.12.2024) 3,75,000
Part payment of Rs. 22,500 was received from a client in respect of 75,600
services rendered
Renting of Agro machinery for agricultural purposes Exempted
Total Taxable Services 10,99,850
Computation of Taxable Services (Inter State)
Particulars Amount (Rs.)
Services rendered in Jammu and Kashmir 70,000
Total Taxable Services 70,000
Computation of Tax Payable
CGST Payable – Rs.10,99,850 x 9% = Rs. 98,986.50
SGST Payable – Rs.10,99,850 x 9% = Rs. 98,986.50
IGST Payable – Rs.70,000 x 18% = Rs. 12,600.00
Total GST Payable = Rs. 2,10,573.00

Illustration 2:
From the following details of M/s Suman and Co, compute the value of taxable services and
services tax liability for the month of December
Sl. No. Particulars Amount (Rs.)
1. Services provided to foreign diplomatic mission 5,00,000
2. Aerial advertising 1,00,000
3. Service by way of private tuition 30,000
4. Rented out a property to [Link], used as a guest house 3,00,000
5. Speed post services 50,000
6. House given on Rent for residential purposes 3,00,000
7. Value of free services rendered to friends 50,000
8. Services rendered to UNO 2,00,000
9. Certification for exchange control purpose 50,000
10. Secretarial auditing 20,000
11. Fees to act as a liquidator 1,00,000
12. Vacant land used for horticulture 10,00,000
13. Sale of time slot by broadcasting organization 1,00,000
14. Services rendered within Indian territorial water 10,00,000
15. Services relating to supply of farm labour 2,00,000
 Solution:
Computation of Taxable Services and GST payable
Particulars Amount (Rs.)
1. Services provided to foreign diplomatic mission 5,00,000
2. Aerial advertising 1,00,000
3. Service by way of private tuition 30,000
4. Rented out a property to [Link], used as a guest house 3,00,000
5. Speed post services 50,000
6. House given on Rent for residential purposes Exempted
7. Value of free services rendered to friends 50,000
8. Services rendered to UNO Export
9. Certification for exchange control purpose 50,000
10. Secretarial auditing 20,000
11. Fees to act as a liquidator 1,00,000
12. Vacant land used for horticulture Exempted
13. Sale of time slot by broadcasting organization 1,00,000
14. Services rendered within Indian territorial water 10,00,000
15. Services relating to supply of farm labour Exempted
Total Taxable Services 23,00,000
Computation of Tax Payable
CGST Payable – Rs.23,00,000 x 9% = Rs. 2,07,000
SGST Payable – Rs.23,00,000 x 9% = Rs. 2,07,000
Total GST Payable = Rs. 4,14,000

TIME OF SUPPLY
Time of supply means the point in time when goods/services are considered supplied’. When
the seller knows the ‘time’, it helps him identify due date for payment of taxes.

TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE

Time of Supply of goods shall be earliest of: [u/s 12(2)]

a) The date of Issue of Invoice (or the last date by which invoice should have been issued u/s
31 i.e., removal or making available the goods for delivery or as the case maybe)
b) The date of receipt of payment
Date of Receipt of payment means earliest of:
a) Date on which payment was entered in books
b) Date on which payment was credited in bank account
HENCE, TIME OF SUPPLY OF GOODS IS EARLIEST OF
1. Date of Removal
2. Date of Payment
3. Date of Invoice
4. Date of Receipt shown in books of account
Questions:

1. Gangadhar has to send the goods to Ajay for delivery from New Delhi to Mumbai 29th
August 2024. Determine the time of supply in different scenarios of the following:
SL. DATE OF DATE OF DATE ON WHICH DATE ON
NO. REMOVAL ISSUE OF PAYMENT IS WHICH
OF GOODS INVOICE ENTERED IN THE PAYMENT IS
BOOKS OF CREDITED IN
ACCOUNT THE BANK
ACCOUNT

1. 29/08/2024 29/08/2024 31/08/2024 01/09/2024

2. 29/08/2024 02/08/2024 31/08/2024 01/09/2024
3. 30/08/2024 29/08/2024 28/08/2024 30/08/2024
4. 30/08/2024 04/09/2024 27/08/2024 30/09/2024
5. 30/08/2024 30/08/2024 06/09/2024
(BBM, Mangalore University, April 2018, [Link])
SOL:

Determination of time of supply of goods

Sl. Time of Criteria for determining time of supply

No. supply
1 29/08/2024 Since, invoice is issued at the time of removal of goods, time
of supply is date of issue of invoice
2 02/08/2024 Since, invoice is issued prior to removal of goods and receipt of
payment, time of supply is date of issue of invoice
3 28/08/2024 Since, payment is received before removal of goods and issue of
invoice, date of payment entered in books is time of supply

4 27/08/2024 Since, payment is received before removal of goods and

issue of invoice, date of payment entered in books is time of supply

5 30/08/2024 Since, invoice is issued at the time of removal of goods, time

of supply is date of issue of invoice
 2. From the following information of Mr. Chethan, a registered dealer, determine the time of
supply of goods in each of following independent cases:
Case Date of Date of Date of payment Date of receipt
no. removal issue of show in
invoice recipient
1 25.08.2024 25.08.2024 Bank credit 01.09.2024
:05.09.2024
Books:04.09.2024
2 25.08.2024 21.08.2024 Bank credit 01.09.2024
:05.09.2024
Books:04.09.2024
3 25.08.2024 24.08.2024 Bank credit 01.09.2024
:19.08.2024
Books:16.08.2024
4 25.08.2024 23.08.2024 Bank credit 23.08.2024
:05.09.2024
Books:04.09.2024
SOL:

Determination of time of supply of goods

Case Time of Criteria for determining time of supply

no. supply
1 25.08.2024 Since, invoice is issued at the time of removal of goods,
time of supply is date of issue of invoice
2 21.08.2024 Since, invoice is issued prior to removal of goods and receipt of
payment, date of issue of invoice is time of supply
3 16.08.2024 Since, payment is received before removal of goods and issue of
invoice, date of payment as per book entry is
time of supply
4 23.08.2024 Since, invoice is issued prior to removal of goods and receipt of
payment, date of issue of invoice is time of supply

3. Determine the time of supply of goods in each of the following independent cases in
accordance with provisions of Section 12 the CGST Act, 2017 in case supply involves
movement of goods.
Case Date of Date of Date when goods made Date of receipt of payment
no. removal issue of available to
invoice recipient

1 01.07.2024 01.07.2024 03.07.2024 15.05.2024

2 03.07.2024 01.07.2024 04.07.2024 25.08.2024
3 04.08.2024 04.08.2024 06.08.2024 01.07.2024
4 02.07.2024 28.06.2024 05.07.2024 23.08.2024
SOL: Determination of time of supply of goods
Case Time of Criteria for determining time of supply
no. supply
1 15.05.2024 Date of receipt of payment
2 01.07.2024 Since, invoice is issued prior to removal of goods and receipt of payment,
date of issue of invoice is time of supply
3 01.07.2024 Since, payment is received before removal of goods and issue of invoice,
date of payment is time of supply
4 28.06.2024 Since, invoice is issued prior to removal of goods and receipt of payment,
date of issue of invoice is time of supply

4. Determine the time of supply of goods in each of the following independent cases in
accordance with provisions of Section 12 of CGST Act, 2017 in the case supply does not
involves movement of goods:
Case Date of issue of Date when goods made Date of receipt of
no. invoice available to payment
recipient
1 02.10.2024 03.10.2024 15.11.2024
2 04.10.2024 01.10.2024 25.11.2024
3 04.11.2024 06.11.2024 01.10.2024
4 03.10.2024 04.11.2024 10.10.2024

SOL: Determination of time of supply of goods

Case No Time of supply Criteria for determining time of supply

1 02.10.2024 Date of issue of invoice
2 01.10.2024 Date when goods made available to recipient
3 01.10.2024 Date of receipt of payment
4 03.10.2024 Date of issue of invoice

5. Determine the time of supply of the following independent cases with reason:

Event Case 1 Case 2 Case 3 Case 4

Date of removal of goods 28.11.2024 28.11.2024 28.11.2024 28.11.2024
Date of invoice 28.11.2024 28.11.2024 26.11.2024 23.11.2024
Date of payment 26.11.2024 29.12.2024 02.12.2024 26.11.2024
Date of payment entered in 06.12.2024 06.12.2024 06.12.2024 22.11.2024
books

SOL: Determination of time of supply of goods

Case Time of Criteria of determining time of supply

no. supply
1 26.11.2024 Date of payment
 2 28.11.2024 Date of invoice
3 26.11.2024 Date of invoice
4 22.11.2024 Date of payment entered in books

6. Determine the time of supply in the following cases, assuming that GST is payable under
forward charges

Cases Date of Date of Last date for Payment Payment

removal of issue of issue of entered in credited in
goods invoice invoice the books of the bank
account account

A 29.08.2024 29.08.2024 29.08.2024 31.08.2024 01.09.2024

B 29.08.2024 02.09.2024 29.08.2024 31.08.2024 01.09.2024
C 29.08.2024 29.08.2024 29.08.2024 28.08.2024 30.08.2024
D 29.08.2024 01.09.2024 08.09.2024 30.08.2024 28.08.2024
NOTE: Date of the supply will be earlier of the following;

Date of issue of invoice

Last date for issue of invoice Whichever is
earlier
Payment entered in the books of account
Payment credited in the bank account

Determination of time of supply of goods

[Link]. Time of Supply Criteria for determining time of supply

A 29.08.2024 Date of issue of invoice
B 29.08.2024 Last date for issue of invoice
C 28.08.2024 Payment entered in the books of account
D 28.08.2024 Payment credited in the bank account

7. Determine the time of supply of goods in the following independent situations, as per the
GST LAW, giving brief reason for your conclusion.

Sl. Date of Date of Date of Date of credit of Date of

No. removal receipt of issue of payment in the credit of
of goods goods by tax supplier’s books of payment in
buyer invoice account supplier’s
bank
account

1 04.01.2024 05.01.2024 04.01.2024 05.01.2024 06.01.2024

2 04.01.2024 03.01.2024 05.01.2024 03.01.2024 02.01.2024
3 04.01.2024 05.01.2024 04.01.2024 07.01.2024 08.01.2024
Determination of time of supply of goods

Sl. Time of Criteria for determining time of supply

No. supply
1 04.01.2024 Date of issue of tax invoice
2 02.01.2024 Date of credit of payment in supplier’s bank account
3 04.01.2024 Date of issue of tax invoice
 Time of Supply of Services: - Sec 13.

1) Time of supply of service in case of forward charge

a)If invoice is issued within 30 days of the provision of service.
Date of Invoice
Or
Date of payment whichever is earlier.

Date of Payment means

Date of entry in the books of supplier
Or
Date of credit in the bank a/c whichever is earlier

b) If invoice is not issued within 30 days of the provision of service

Date of provision of
service Or
Date of payment whichever is earlier.

1. Determine the time of supply of services in each of the following independent cases
accordance with provisions of CGST Act, 2017.
Case Date of actual Time of invoice, bill or Date of which
no. provision of challan as the payment received
service case may be
1 10.11.2024 30.11.2024 15.12.2024
2 10.11.2024 30.11.2024 15.11.2024
3 10.11.2024 30.10.2024 15.10.2024(part) &
10.12.2024(remaining)
4 10.11.2024 30.11.2024 06.11.2024(part) &
09.11.2024(remaining)

SOLUTION:
Case no. Time of supply Criteria of determining time of supply

1 30.11.2024 Date of invoice. Invoice is issued within 30 days

and before receipt of payment.
2 15.11.2024 Date of payment received. Invoice is issued
within 30 days but payment is received before issue of
invoice

Page 37 of 39
 3 a)15.10.2024 Date of payment received. Invoice is issued within 30 days.
Date of invoice. Part payment is received before
b)30.10.2024 issue of invoice and remaining payment after invoice
For the respective
amount

4 a)06.11.2024 Date of payment received. Invoice is issued within 30 days.

Date of payment received. Part payment is
b)09.11.2024 received before invoice and remaining payment after invoice
For the respective
amount

2. Determine the time of supply of services in each of the following independent cases
in accordance with provisions of CGST Act, 2017:

Cases Date of actual Time of invoice bill or Date of which payment is

no. provision of challan as received
service the case may be

1 10.11.2024 30.11.2024 06.11.2024(part)&

16.11.2024(remaining)
2 10.11.2024 12.12.2024 30.04.2024
3 10.11.2024 12.12.2024 05.11.2024( part) &
25.12.2024(remaining)

4 10.11.2024 22.12.2024 12.12.2024

Sol: Determination of time of supply of services

Case Time of supply Criteria of determining time of supply

no.
1 a)06.11.2024 Date of payment received. Invoice is issued within 30
days.

b)16.11.2024 Date of payment received Part payment is received

For the respective before issue of invoice and remaining
amount payment after completion of service

2 10.11.2024 Invoice not issued within 30 days and entire payment

received after completion of service.
Hence date of provision of services is time of supply.

Page 38 of 39
 3 a)05.11.2024 Date of payment received Invoice not issued within 30
days.
b)10.11.2024 Date of provision of services is time of supply. Part
For the respective payment is received before completion of service and
amount remaining payment received
subsequently.

4 10.11.2024 Invoice not issued within 30 days and entire payment

received after completion of service. Hence date of
provision of services is time of
supply.

Page 39 of 39