Question 1.

How can supplier claim its GST Refund from IRC? Explain the process and provide na example.

Answer 1: The supplier can claim GST refund from the (IRC) by following the prescribed process. The
supplier must first file a GST return with the IRC, which includes details of all GST-related transactions
for the relevant period. If the supplier has paid more GST than they are erotittled to, they will be eligible
for a refund. The IRC will than view the return and process the refund if the claim is valid.

For example, suppose a supplier has paid K100 in GST on their sales but only K50 in GST on their sales
but only K50 in GST on their purchases, in the case, the supplier is entitled to a refund of K50 . The
supplier would need to file a GST return with the IRC, including details of their sales and purchases. The
IRC would then review the return and process the refund if the claim is valid.

Question 2.

Define and explain the following terms with examples in reference to GST.

a) Taxable Activities

b)Taxable Supplies

c)Zero Rated Goods And Services

d)Exempt Goods and Services

Answer2:a) Taxable Activities: Taxable activities are any activities that are subject to goods and services
tax GST . These are economic activities that generate consideration (payment) and are not specifically
exempted or zero-rated under the GST law. Examples include the sale of goods, provision of services,
manufacturing, import of goods and services, and construction. A business selling clothing would a
consultant providing advisory services.

b) Taxable Supplies; Taxable supplies refer to the actual goods or services providing in a Taxable
Activities that are subject to GST. This includes the transfer of ownership of goods provision of services,
and even the import of goods or services. The key is that there's a supply (transfer) of something of
value in exchange for consideration. For example, a restaurant's supply of its software. Importantly, the
supply must be made in the course or furtherance of a taxable activity.

c)Zero-Raleted Goods and Services; Zero-raleted goods and services are those that are subject to GST,
but the tax is 0% . This means that no GST is collected on the sale of these items, but they are still
considered part of the GST system. The purpose is often to encourage exports or provide relief for
essential goods. Examples include exports of goods and services, and certain specified supplies in some
jurisdictions. While no GST is collected, businesses can still claim input tax credits (itc).

b) Exempt Goods and Services; Exempt goods and services are those goods and services that are not
subject to GST . This means that no GST is payable on these goods and services. For example, basic
necessities such as food, education, and health care are generally exempt from GST.

Question 3.
Do research, identify and outline the process of submitting GST Tax Returns. Also discuss the penalties
of non-compliance.

Answer 3. The Goods and Services tax (GST) is a value added tax levied on most goods and services sold
in India. Businesses registratd under GST are required to file periodic returns, which detail their sales,
purchases, and input tax credit. The process of submitting GST tax return involve several steps,
including;

1. Registration: Businesses must first register with the GST Council to obtain a GST identification number
(GSTIN). This registration process involves providing basic information about the business such as its
name, address, and contact details.

2. Generating Returns: Once registered, businesses can access the GST portal to generate their returns.
The portal provides various forms for different types of returns, including GSTR-1,GST R-3B, and GSTR-9.

3. Filling Returns: Businesses must fill out the relevant form with accurate informdvvvation about their
sales, purchases and input tax credit. The forms can be filled online or offline, and businesses can use
various software tools to simplify the process.

4. Uploading Returns: Once filled, the returns must be uploaded to the GST portal Businesses can upload
the returns through the protal or through authorized GST suvidha providers (GST s).

5. Payment of Taxes: Businesses must be paying their GST liability based on the information provided in
their returns. Payment can be made through various online and offline methods, including net banking,
credit cards and debit cards.

Non-Compliance with GST regulations can result in various penalties, including;

1. Late Filling Penalty: Businesses that fail to file their returns on time are subject to a late filling penalty.
The penalty amount various depending on the types of return and the duration of the delay.

2. Interest on Late Payment; Businesses that fail to pay their GST liability on time are subject to Interest
rate is calculated based on the duration of the delay.

3. Cancellation of Registration; In case of non-compliance, the GST Council can cancel the business's
regulation. This Cancellation can result in significant financial and operational challenges for the
business.

4.Local Action; In severe cases of non-compliance , the GST Council can initiate legal action against the
business. This action can result in fines, imprisonment, or both.

It is crucial for businesses to comply with GST regulations to avoid these penalties. Businesses should
maintain accurate records, file their returns on time , and pay their GST liability promptly. They should
also seek professional advice from tax consultants or chartered accountants to ensure compliance with
the complex GST regulations.

Question 4.

List the three sectors that are subject to specific GST Tax provisions and discuss how GST is levied.

Answer 4. The three sectors subject to specific GST tax provision are;
1. Financial services: These services, including banking, insurance, and investment management, often
have unique GST treatment due to the nature of their transactions and complexities of financial
instruments. Specific rules may govern the point of taxation, the calculation of the tax base, and the
application of input tax credit.

2. Real estate: The GST treatment of real estate transactions can be complex, varying depending on
whether the property is new or existing, residential or commercial, and the types of transactions (sales,
lease,etc) Specific rules address the supply of land, building, and related services.

3. Telecommunications: This sector, encompassing mobile and fixed -line services,Internet access, and
other related services, often has specific GST rules concerning the determination of the place of supply,
the treatment of bundled services, and the application of exemption or reduced rates.

How GST is levied in these sectors varies depending on the specific transaction and the applicable rules.
Generally, GST is levied on the value of the supply, which is the consideration received by the supplier
for the provision of goods and services. The applicable GST rate depends on the nature of the supplier
and may be a standard rate, a reduced rate ,or zero rate.Input tax credits (itc) are generally available to
registered businesses, allowing them to deduct the GST paid on their inputs from the GST they collect on
their outputs, reducing their overall tax burden. However the availability and exttent of ICT may be
restricted in certain sectors or transactions specific rules and regulations within each sector determine
the exact application of GST, often requiring specialised knowledge and careful compliance.

Question 5.

a) Explain what is meant by GST Inclusive and GST Exclusive .

b) Retail prices of an Android Mobile Phone is K1,280.90. A customer ordered three (×3) mobile phones.
With GST Tax Rates of 15%

You are required to prepare

a) Tax Invoice;GST Inclusive.

b)Tax invoice; GST Inclusive.