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CA FINAL (May 2024)

GROUP II – PAPER 5
INDIRECT TAX LAWS
(Series 3)
Time Allowed: - 3 Hours Maximum Marks: 100

This question paper comprises two parts, Part I and Part II.
Part I comprises MCQ & Part II comprises questions which require descriptive answers.

PART – I (MCQs)
All MCQs are compulsory

Question no. 1-15 carry 2 marks each

This Case Scenario contains MCQ 1-5
PTL Pvt. Ltd. is a retail store of merchandise located in 25 States and/or UTs in the country. For the
purpose of clearance of stock of merchandise and to attract consumers, PTL Pvt. Ltd. launched
scheme of “Buy One Get One Free” for the same type of merchandise, for instance, one shirt to be
given free with purchase of one shirt. For saving cost, PTL Pvt. Ltd. directly purchases merchandise
from the manufacturers.
In the month of May, in order to save employee cost, PTL Pvt. Ltd. purchased a tempo traveller worth
₹ 12,00,000 with seating capacity of 25 persons (including driver) for transportation of its employees.
Further, for ensuring the well-being of its employees, PTL Pvt. Ltd. voluntarily obtained the health
insurance cover of ₹ 2,00,000 for each employee in the same month. The premium of ₹ 1,500 per
employee has been paid by the company for 100 employees.
In the month of July, Mr. Raghav, a customer of the company, filed a law suit in the Court, against the
company for not supplying goods of the value of ₹ 1,00,000. PTL Pvt Ltd. engaged Mr. Ram, an
advocate, to represent it in Court for an agreed consideration of ₹ 25,000. As per the terms of the
contract, Mr. Ram issued an invoice on 5th July. However, consideration was not paid till February
next year.
Note - All the amounts given above are excluding taxes and all transactions are intra-State transactions.
Rates of tax are CGST - 9% and SGST – 9%. However, for tempo traveller, the rates of taxes are CGST -
14% and SGST – 14%.
In relation to the above, answer the following questions:

1. With respect to “Buy One, Get One” offer, which of the following statements is true:
(a) It will not be considered as supply at all since no consideration is involved in one of the
items.
(b) Supply of item for which consideration is charged is a supply under section 7 of the CGST
Act, 2017 while supply of the other item supplied free of cost is not a supply.
(c) These are two individual supplies where a single price is charged for the entire supply.

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 Since a single price is charged, the same will always be taxed as a mixed supply.
(d) These are two individual supplies where a single price is charged for the entire supply.
Their taxability will depend upon as to whether the supply is a composite supply or a
mixed supply.

2. Eligible input tax credit for the month of May on the purchase of tempo traveler
(assuming that all other conditions, for availing input tax credit have been complied
with) is:
(a) CGST - Nil, SGST – 1,68,000
(b) CGST - ₹ 1,68,000, SGST - ₹ 1,68,000
(c) CGST – ₹ 1,68,000, SGST - Nil
(d) CGST - Nil, SGST - Nil

3. Eligible input tax credit for the month of May on health insurance premium paid
(assuming that all other conditions, for availing input tax credit have been complied
with) is:
(a) CGST - Nil, SGST - ₹ 18,000
(b) CGST - Nil, SGST - Nil
(c) CGST - ₹ 18,000, SGST - Nil
(d) CGST - ₹ 18,000, SGST - ₹ 18,000

4. Which of the following statements is true in respect of the services of advocate availed by
the company?
(a) CGST-₹ 2,250 and SGST- ₹ 2,250 on advocate services are payable by PTL Pvt Ltd. ITC
availed thereon is to be added to its output tax liability with interest as consideration
along with tax is not paid within 180 days of the issuance of invoice.
(b) CGST-₹ 2,250 and SGST- ₹ 2,250 on advocate services are payable by Mr. Ram. ITC availed
thereon is to be added to output tax liability of PTL Pvt Ltd. with interest as consideration
along with tax is not paid within 180 days of the issuance of invoice.
(c) CGST-₹ 2,250 and SGST- ₹ 2,250 on advocate services are payable by PTL Pvt. Ltd. The
condition of payment of consideration along with tax within 180 days of the issuance of
invoice does not apply in the given case.
(d) CGST-₹ 2,250 and SGST- ₹ 2,250 on advocate services are payable by Mr. Ram. The
condition of payment of consideration along with tax within 180 days of the issuance of
invoice does not apply in the given case.

5. Which of the following is not covered under Schedule III of CGST Act, 2017?
(a) Director’s monthly salary under employment agreement
(b) Sitting fees to independent directors for attending AGMs
(c) Payment to employee for providing broking services to the employer for purchase of
commercial property. Such services do not form part of the employment contract entered
into by the employer with the employee.
(d) Both (b) and (c)

This Case Scenario contains MCQ 6-10

Mr. Kumar started interior designing practice from the month of January. His turnover up to the
month of March was ₹ 12,50,000. On 30th June, his turnover exceeded ₹ 20,00,000 & reached to ₹

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20,05,000. Mr. Kumar applied for GST registration (as regular taxpayer) on 15th July and registration
was granted to him on 25th July.
On 16th July, he entered into a contract for designing the flat of Mr. Shyam. The service was completed
on 22nd July and Mr. Kumar issued invoice on the same day for ₹ 6,00,000. On 5th July, Mr. Kumar
purchased capital goods amounting to ₹ 4,50,000 and from 25th July to 31st July, he availed services
amounting to ₹ 1,75,000 for the purpose of completing the service.
On 1st August, Mr. Kumar got another contract for interior designing from Mr. Ram, which he
accepted on 2nd August. The service was completed on 6th August and invoice was issued on 7th
August for ₹ 5,00,000. Payment was received on 29 th August.
Note: All values are excluding taxes, unless specifically mentioned. Mr. Kumar makes only intra-State
outward supplies and all purchases are also intra-State. Rates of tax are CGST - 9% and SGST – 9%.
In relation to the above, answer the following questions:

6. The effective date of registration for Mr. Kumar is-

(a) 30th June
(b) 15th July
(c) 25th July
(d) 16th July

7. Mr. Shyam can issue a revised tax invoice till-

(a) 23rd October
(b) 8th September
(c) 25th September
(d) 25th August

8. Eligible input tax credit available with Mr. Kumar for the month of July is-
(a) CGST ₹ 40,500 & SGST ₹ 40,500
(b) CGST ₹ 15,750 & SGST ₹ 15,750
(c) CGST ₹ 56,250 & SGST ₹ 56,250
(d) CGST ₹ 36,000 & SGST ₹ 36,000

9. The time of supply of services provided by Mr. Kumar to Mr. Ram is-
(a) 7th August
(b) 1st August
(c) 29th August
(d) 06th August

10. If instead of opting for regular scheme, Mr. Kumar opts to pay tax under section 10(2A)
of the CGST Act, 2017, the tax liability for the month of July will be-
(a) Nil
(b) CGST ₹ 54,000 & SGST ₹ 54,000
(c) CGST ₹ 18,000 & SGST ₹ 18,000
(d) CGST ₹ 78,150 & SGST ₹ 78,150

This Case Scenario contains MCQ 11-15

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SR Associates is a partnership firm registered under GST in the State of Rajasthan. In the month of July,
following transactions were made by SR Associates:
(a) Purchase of commodity X on 1st July from registered person for an amount of ₹ 5,00,000 at the
rate of ₹ 1000 per tonne from the open market. The said commodity was deposited in the
warehouse of NCDEX Ltd. (an agricultural commodity exchange) in Rajasthan as a security
against transactions entered by SR Associates on the same day.
(b) In order to hedge the aforesaid transaction, on 1st July, SR Associates undertook a derivative sale
transaction in futures contract for the month of August at NCDEX at the rate of ₹ 1,100 per tonne.
(c) SR Associates took subscription for an AI (Artificial Intelligence) based platform from an
unrelated party, ABC Inc (a company based in US) to get real time updates on the pricing of
commodity X in the international market. ABC Inc charged ₹ 50,000 for such subscription. The
invoice was issued to SR Associates on 1st July, but the payment was made to ABC Inc on 20th
August.
(d) NCDEX charges rent from SR Associates at the rate of ₹ 10,000 per month and service charges at
the rate of ₹ 20,000 per month.
(e) On the date of expiry of future contract of the month of August, i.e. 31st August for commodity X,
the rate of commodity X was ₹ 900 per tonne. SR Associates squared off the contract (without
physical delivery) for the month of August at the same rate.
(f) NCDEX charged brokerage on the transactions (both purchase and sale of derivative contract
separately) at the rate of ₹ 5,000 per contract from SR Associates in the month when such
transaction was entered and when such transaction was squared off.
(g) On the purchase of commodity X, additional levy in form of Mandi Tax was applicable at the rate
of ₹ 10 per tonne which is not included in the rate per tonne under point (a) above.
All the amounts given above are exclusive of GST unless otherwise provided. The opening balance of
input tax credit for the relevant tax period of SR Associates is Nil. Subject to the information given
above, assume that all the other conditions necessary for availing ITC have been fulfilled.
Assume that there is no other outward or inward supply transaction apart from aforesaid transactions,
in the months of July and August.
GST is applicable in the aforesaid case scenario at the following rates unless otherwise specified:
I. Intra-State supply – 9% CGST and 9% SGST
II. Inter-State supply – 18% IGST
Based on the facts of the case scenario given above, choose the most appropriate answer:

11. Compute the taxable value of inward supply of commodity X for SR Associates in the
month of July.
(a) ₹ 5,00,000
(b) ₹ 5,50,000
(c) ₹ 5,55,000
(d) ₹ 5,05,000

12. Compute the value of outward supply made by SR Associates in the month of August.
(a) Nil
(b) ₹ 5,55,000
(c) ₹ 5,60,000
(d) ₹ 5,00,000

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13. What is the time of supply for subscription of AI based platform by SR Associates?
(a) July 1
(b) August 31
(c) August 20
(d) July 31

14. Compute the net GST payable in cash by SR Associates for the month of August.
(a) Nil
(b) ₹ 2,700
(c) ₹ 81,000
(d) ₹ 9,000

15. Compute the input tax credit balance available with SR Associates for the month of July.
(a) ₹ 9,000
(b) ₹ 16,200
(c) ₹ 97,200
(d) ₹ Nil

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 PART – II (Descriptive Answers)
This part comprises 6 questions. Question No. 1 is compulsory. Attempt any
4 questions out of the remaining 5 questions.

1 The details of transactions of J Ltd., Vadodara (Gujarat), a registered taxable 14

person, during the month of February, 20XX, are as under:

S.N Particulars
.
1. Purchased goods from a manufacturer in Maharashtra as a merchant
exporter (on payment of 0.1% IGST) and exported the same directly to an
importer of Spain under LUT. FOB value is ₹ 7,00,000. Invoice for the supply
to J Ltd. was received on 5.2.20XX and payment was made on 8.2.20XX.
2. Imported goods from China with CIF value of ₹ 5,00,000. The goods were
sold for ₹ 5,10,000 as high sea sales to an Indian party on 21.2.20XX.
3. Purchased goods from a party in Taiwan. Sold the goods to a party in
Turkey without bringing the goods to India. Purchase value was ₹ 5,00,000
and the sale price was ₹ 7,00,000. J Ltd paid sales commission of ₹ 50,000 to
Mrs. T (located in Turkey), their agent in connection with this transaction.
The transaction was completed in the third week of February. (The figures
in rupees have been given after conversion though transaction was in
convertible foreign currency).
4. J Ltd. has agreed to provide technical services to Mr. K of Ahmedabad who is
an unregistered person in connection with the manufacturing operations to
be undertaken by him for a consideration of ₹ 5,00,000 and has received an
advance of ₹ 1,00,000 for the same on 2.2.20XX.
5. It has imported raw materials from China. CIF value of the goods for the
purpose of Customs included ₹ 1,00,000 as ocean freight paid by J Ltd. The
value for the purpose of levy of IGST worked out by Customs was ₹
6,00,000. Clearance of the goods took place on 4.2.20XX.
6. Locally purchased taxable raw material stored in the factory got spoiled due
to rain water in the factory and became unusable. J Ltd. claimed and
received on insurance amount of ₹ 60,000 for the same. Value of the raw
material at the time of receipt was ₹ 70,000. Raw material was purchased
from a party in Gujarat on 3.2.20XX and payment was made on 7.2.20XX.
7. Company purchased a three-wheeler having capacity of 2 persons including
driver (engine capacity 20CC) at a cost of ₹ 2,50,000 from a dealer in
Gujarat which is being used for transportation of staff of company from
residence to factory and back. The vehicle was received on 5.2.20XX and
payment was made on the same date.
8. It has paid inward transportation expense of ₹ 30,000 to Mr. Z, a tempo
owner who has not issued any consignment notes. He has issued a
consolidated bill only on 3.2.20XX and payment was made on 4.2.20XX.
9. It has supplied goods of value of ₹ 50,00,000 to V Ltd. Padra, Gujarat
(includes ₹ 10,00,000 supplied to SEZ unit of V Ltd under LUT).
10. It has purchased goods from X Impex Ltd. Kadi, Gujarat for use as raw
materials in its factory. The value of the goods ₹ 30,00,000. Invoice is dated

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 2.2.20XX.
11. It has availed supply of manpower security services from Y Ltd. Vadodara,
Gujarat, a registered taxable person. The amount paid is ₹ 1,00,000. The
invoice was received on 1.2.20XX and payment was made on the same day.

Assume the CGST and SGST rates to be 9% each and IGST rate to be 18% except
the supply received as a merchant exporter. Ignore compensation cess. J Ltd. had
an opening balance of ITC of CGST of ₹ 20,000 and SGST of ₹ 20,000 as on
1.2.20XX. In respect of all the inward supplies, suppliers have uploaded their
invoices in respective Form GSTR-1 and the supplies are reflected in GSTR-2B. All
the figures given above are exclusive of GST, wherever applicable.
Work out the admissible ITC and GST liability [CGST, SGST or IGST, as the case
may be] payable in cash, by J Ltd, Vadodara (Gujarat), for February, 20XX.

2 (a) Kaushal Manufacturers Ltd., registered in Delhi, is a manufacturer and supplier of 9

electronic home appliances. It is paying tax under regular scheme. It supplies the
electronic home appliances in the domestic as well as overseas market. For
supplies in other States of India, the company has appointed consignment agents
in each such State, except Gurgaon, Haryana and Noida, Uttar Pradesh, where the
goods are supplied directly from its Delhi warehouse.
In the month of January, consignments of electronic home appliances were sent to
Cardinal Electricals Pvt. Ltd. and Rochester Technos – agents of Kaushal
Manufacturers Ltd. in Punjab and Madhya Pradesh respectively. Cardinal
Electricals Pvt. Ltd. and Rochester Technos supplied these electronic home
appliances under their invoices to the stores located in their respective States for
₹ 40,00,000 and ₹ 70,00,000 respectively. Open market value of such appliances is
not available.
Further, in January, electronic home appliances have been supplied to Ronn
Technomart – a wholesale dealer of electronic home appliances in Noida, Uttar
Pradesh for consideration of ₹ 23,00,000, from its Delhi warehouse. Kaushal
Manufacturers Ltd. owns 75% shares of Ronn Technomart. Open market value of
the electronic home appliances supplied to Ronn Technomart is ₹ 30,00,000.
Further, Ronn Technomart is not eligible for full input tax credit.
Kaushal Manufacturers Ltd. also provides repair and maintenance services to
electronic appliance manufacturers located in India.
The company has also furnished the following information for the month of
January:

Particulars ₹
Supply of electronic home appliances to wholesale dealers of such 84,00,000
appliances in Delhi
Electronic home appliances supplied to Anchor Electricals Inc., 1,26,00,000
USA under LUT [Consideration received in convertible foreign
exchange]
Repair and maintenance services provided to Unitech Ltd., an 8,40,000
electronic appliance manufacturer, located in Delhi
Advance received towards repair and maintenance services to be 7,00,000

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 provided to Orelec Ltd., an electronic appliance manufacturer,
located in Delhi
[Repair and maintenance services have been provided in February
and invoice is issued on 28th February]
Advance received for electronic home appliances to be supplied to 8,40,000
Novick Electricals, a wholesale dealer of such appliances in
Gurgaon, Haryana
[Invoice for the goods is issued at the time of delivery of the
electronic appliances in March]

You are required to determine the gross GST liability [CGST & SGST and/or IGST]
of Kaushal Manufacturers Ltd. for the month of January.
Note:
(i) All the given amounts are exclusive of GST, wherever applicable.
(ii) Assume the rates of GST to be as under:

Goods/services supplied CGST SGST IGST

Electronic home appliances 2.5% 2.5% 5%
Repair and maintenance services 9% 9% 18%

You are required to make suitable assumptions, wherever necessary.

2 (b) PCB Limited has imported printed circuit boards for sale in India from Country X, 5
which are liable for anti-dumping duty. You are provided with the following
details.
(i) Country X does not sell these goods in its domestic market.
However, it exports the same printed circuit boards at USD 200 per piece to
another third country.
(ii) The printed circuit board is sold in domestic industry @ USD 175 per piece.
(iii) PCB Limited has imported the printed circuit boards at USD 100 per piece.
(iv) Landed value of the printed circuit boards is USD 125 per piece.
Compute the anti-dumping duty payable by PCB Limited for 1,000 pieces of
printed circuit boards it has imported during the year assuming conversion rate
@ ₹ 75 per USD.

3 (a) Swasthya Nursing Home, a clinical establishment, offers the following services: 5
(i) Rooms provided to the in-patients where the room charges per day are ₹
6,500.
(ii) Plastic surgery conducted to repair cleft lip of a new born baby.
(iii) Air ambulance services to transport critically ill patients from distant
locations to Swasthya Nursing Home.
(iv) Supply of food to the in-patients as per the advice of the doctor/nutritionist
from its restaurant – Annapurna Bhawan - located in the basement of
Swasthya Nursing Home. The food is prepared by its employees and nothing
is outsourced to any third-party vendors.

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 (v) Homeopathic medical treatment.
Swasthya Nursing Home also operates a cord blood bank which provides services
in relation to preservation of stem cells.
Determine whether GST is payable in respect of each of the above services
provided by Swasthya Nursing Home.

3 (b) Yash Shoppe, a registered supplier of Jaipur, is engaged in supply of various goods 4
and services exclusively to Government departments, agencies, local authority
and persons notified under section 51.
You are required to briefly explain the provisions relating to tax deduction at
source under section 51 and also determine the amount of tax, if any, to be
deducted from each of the receivables given below (independent cases) assuming
that the payments as per the contract values are made on 31st October. The rates
of CGST, SGST and IGST may be assumed to be 6%, 6% and 12% respectively.
(1) Supply of computer stationery to Public Sector Undertaking (PSU) located in
Mumbai. Total contract value is ₹ 2,72,000 (inclusive of GST)
(2) Supply of air conditioner to GST department located in Delhi. Total
contract value is ₹ 2,55,000 (exclusive of GST)
(3) Supply of generator renting service to Municipal Corporation of Jaipur. Total
contract value is ₹ 3,50,000 (inclusive of GST)

3 (c) Radheysham is engaged in manufacture of goods in Rajasthan. It imported certain 5

goods for using in the manufacture of the finished goods in the month of May.
However, it did not clear the goods from the port for home consumption. Instead,
it presented an ‘ínto bond’ bill of entry on 14th May. Assessable value on that date
was US$ 2,35,000. The order permitting the deposit of goods in warehouse for 4
months was issued on 21st May. Radheysham deposited the goods in warehouse
on the same day, but did not clear the imported goods even after the warehousing
period got over on 21st September.
A notice was issued under section 72 of the Custom Act, 1962, demanding duty
and interest. Radheysham cleared the goods on 14th October. Customs duty paid
on removal of the goods is ₹ 8,28,000.
You are required to compute interest payable on such removal, explaining the
provisions of Customs Act, 1962 assuming that imported goods are not meant for
being used in an 100% EOU, STP unit, EHTP unit.

4 (a) In the month of April 20XX, Z started supply of goods in his proprietary firm and 5
also set up a one-man company named Z Ltd. He needs your assistance to work
out his aggregate turnover for the purpose of GST registration. The turnover
details up to the month of July, 20XX are as under:

S.N Particulars of supplies ₹ in lakh (excl.

. GST)
i. Supplies of taxable goods of his firm 31.50

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 ii. Supplies of taxable goods to a 100% EOU of his firm 1.50
iii Exports of taxable goods of his firm 2.60
iv. Exempt supplies of his firm 2.40
v. Supplies of non-taxable goods of his firm 3.00
vi. Supplies of taxable goods by the one-man company set 2.70
up in his name
vii. Value of supplies on which Z is liable to pay tax under 0.80
reverse charge mechanism (RCM)

Note: All his supplies are intra-State except export.

4 (b) Explain in what cases, assessment order passed by proper officer may be 4
withdrawn under CGST Act, 2017?

4 (c) Dhruvtaara Enterprises imported a machine from Japan in January for ₹ 48.75 5
lakh. However, the machine was exported back in June for repairs. The supplier
had agreed to carry out the repairs as the machine was still in warranty period.
The fair cost of the repairs would cost ₹ 8.90 lakh. Since repair process was
expected to take a time of 6 months, Dhruvtaara Enterprises requested the
supplier to provide it another machine so that it could carry out its operations
without hindrance in the meantime.
Acceding to the request, the supplier provided it with another machine which was
imported in a vessel during October. The value of the new machine (FOB value)
was ₹ 49.50 lakh. Freight charges incurred from load port to port of importation
were ₹ 1.80 lakh. You are required to compute the assessable value and total duty
payable on the replaced machine received by Dhruvtaara Enterprises.
Note – Rates of customs duty is 10% and IGST is 12%. Social Welfare Surcharge to
be taken at 10%. Ignore GST compensation cess and agriculture infrastructure
and development cess.

5 (a) Super Engineering Works, a registered supplier in Haryana, is engaged in supply 5

of taxable goods within the State. Given below are the details of the turnover and
applicable GST rates of the final products manufactured by Super Engineering
Works as also the input tax credit (ITC) availed on inputs used in manufacture of
each of the final products and GST rates applicable on the same, during a tax
period:
Products Turnover Output ITC availed Input GST
(excluding GST) (₹) GST Rates (₹) Rates
A 500,000 5% 54,000 18%
B 350,000 5% 54,000 18%
C 100,000 18% 10,000 18%
Determine the maximum amount of refund of the unutilized input tax credit that
Super Engineering Works is eligible to claim under section 54(3)(ii) provided that
Product B is notified as a product, in respect of which no refund of unutilised

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 input tax credit shall be allowed under said section.

5 (b) In an order dated 20th August issued to GH (P) Ltd., the Joint Commissioner of 4
CGST has confirmed IGST demand of ₹ 280 crore. The company is disputing the
entire demand of IGST and wants to know the amount of pre-deposit it has to
make under the IGST Act for filing an appeal before the Appellate Authority
against the order of the Joint Commissioner.
Assuming that the Appellate Authority also confirms the order of the Joint
Commissioner and the company wants to file an appeal before the Appellate
Tribunal against the order of the Appellate Authority, determine the amount of
pre-deposit to be made by the company for filing the said appeal.

5 (c) Two exporters namely, Red Sky Pvt. Ltd. and Black Night Pvt. Ltd. have achieved 5
the status of Status Holders (One Star Export House) in the current financial year.
Both the exporters have been regularly exporting goods (other than Gems and
Jewellery) every year. What would have been the minimum export performance of
the two exporters to achieve such status?
Both the exporters want to establish export warehouses in accordance with the
applicable guidelines. What should be their export turnover to enable them to
establish export warehouses?

6 (a) State the prosecution, arrest and bail implications, if any, in respect of the 5
following independent cases pertaining to June:
(i) ‘Ashuram’ fraudulently avails input tax credit of ₹ 200 lakh without any
invoice or bill. However, he is yet to utilize the same.
(ii) ‘Bahubali’ fraudulently avails the refund of tax of ₹ 550 lakh. The said tax
has been recovered from the buyer also.
(iii) ‘Chintamani’ knowingly supplies false information sought by the CGST
Officer. The amount of tax involved is ₹ 250 lakh.
(iv) ‘Deendayal’ collects ₹ 650 lakh as tax in January from its clients but has
deposited only ₹ 50 lakh with the Central Government till date.
Note: Assume that in all above cases, offence, if any, has been committed for the
first time.

6 (b) Discuss the amount of tax and penalty to be paid, if any, in the following 4
independent cases where show cause notices are issued under section 74 of the
CGST Act, 2017.
S. Date on Amount of Present status
N. which credit ITC taken
was taken wrongly (₹
wrongly in lakh)
1 31st January, 200 Adjudication order passed on 26th July,
2021 2023 demanding the entire amount of credit

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 with interest and imposing amount equal to
the credit as penalty.
2 30th June, 250 Adjudication order passed on 26th August,
2021 2023 demanding the entire amount of credit
with interest and imposing amount equal to
the credit as penalty.
3 30th October, 120 Show cause notice has been issued on 5th
2021 September, 2023 demanding entire amount
of credit with interest and proposing
penalty equal to 100% of the credit taken.
4 30th January, 50 Statement of the Managing Director has
2022 been recorded on 6th September, 2023
wherein he has admitted the non-receipt of
the inputs and availing the credit wrongly.
Show cause notice has not been issued yet.

Note: In all the cases, assessee wants to pay the amount on 20.09.2023.

6 (c) GER Ltd. of Germany supplies luxurious car worth ₹ 1 crore to IND Ltd. of India. 5
Before the car reached Indian port but after crossing of the territorial waters of
India, IND Ltd. sells it to T1 Ltd. by way of transfer of documents of title.
T1 Ltd. clears the said car for warehousing and stores said goods in customs
bonded warehouse.
T1 Ltd. sells the said car from warehouse to T2 Ltd., and T2 Ltd. clears the said car
from the customs bonded warehouse.
Answer the following with brief reasons:
(i) Is GST leviable on import of goods from GER Ltd. by IND Ltd.?
(ii) Is GST leviable on supply of goods by IND Ltd. to T1 Ltd.?
(iii) Is GST leviable on supply of goods by T1 Ltd. to T2 Ltd.?
(iv) Is GST leviable on clearance of goods by T2 Ltd. from the customs bonded
warehouse?

MOCK TEST SERIES – By CA Atul & Ajay Agarwal (AIR-1)

AIR1CA Career Institute (ACI)
Page 12