SAI VIDYA INSTITUTE OF TECHNOLOGY
Format for computation of transaction value (taxable value) under section 15 of CGST act, 2017
and SGST act, 2017
Details
Rs
Rs
Price of goods supplies (excluding GST) if price included GST should be
Xxx
converted in to excluding GST (price/100+GST*100) E.g 8500/118*100 =7203
Xxx
Add: Charges separately (not included in the above price)
(a) Material purchased
XXX
i. Within the state (exclusive of CGST,SGST &IGST)
XXX
ii. From other state (exclusive of IGST)
XXX
iii. From a registered person who opted for composition scheme (no right to
XXX
charge tax)
XXX
iv. From SEZ units / from SEZ developers (exclusive of IGST)
XXX
v. Goods from the state or from outside the state)
XXX
vi. Imported from other country (inclusive of BCD & exclusive of IGST)
XXX
(b) Installation and erection expenses
XXX
(c) Packing charges (primary and secondary) Special packing charges
XXX
(d) Designing and engineering charges
XXX
(e) Pre-delivery inspection charges
XXX
(f) penalty for delay in making payment by the buyer more than 180 days
XXX
(g) Subsidy from NGOs directly linked to price
XXX
(i) Freight &insurance charges (including outward freight)
XXX
(j) (k) Selling expenses, publicity charges, Advertising charges
XXX
(l) Loading & handling charges, Transport charges
XXX
(m) Warranty Charges
(xxx)
xxx
xx
Less: exclusive from the transaction
Cash Discount allowed by the supplier
Xxx
Cost of durable and returnable container packing (exempted)
xxx
Transactional Value/ Invoice price
(xxx)
xxx
Format for Computation of Output Tax Liability
Output tax
R UMESH
Department of MBA
SVIT-Rajanukunte
Amount in Rs
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SAI VIDYA INSTITUTE OF TECHNOLOGY
CGST (Transaction value X rate of CGST)
Xxx
SGST (Transaction value X rate of SGST)
Xxx
Total CGST and SGST output tax liability
Xxx
1. Laxmi Ltd of Bhopal (MP) is supplies of machinery. Laxmi Ltd has supplied machinery to PQR
enterprises in Indore (MP) on 1st October 2022; the invoice for the same was raised on the same
date. The supplier and recipient are not related. Following information is provides,
a. Basic price of machinery excluding all taxes but including design and engineering charges
of Rs.10000 and loading charges of Rs.20000 - Rs.2000000
b. Additional warranty charges Rs.100000
c. Consultancy charges in relation to pre-installation planning Rs.10000
d. Freight and insurance charges from place of removal to recipient premises Rs.20000
e. Subsidy received from central government for the machine Rs.50000
f. A cash discount of 1% on the basic price of the machinery is offered at the time of supply,
if PQR Ltd agrees to make payment within 30 days of the receipt of the machinery at his
premises. Discount @ 1% was given to PQR enterprises as it agreed to make the payment
with in 30 days.
g. The machinery attracts CGST & SGCT @ 18% (9%+9%) and IGST @18%.
Compute the CGST & SGST or IGST payable as the case may be.
2. Compute the transaction value of goods from the following information and GST payable .
Selling price (including IGST of ₹5000 )₹80000
The following items are not included in the above price
a. Secondary packaging cost ₹3000.
b. cost of special packaging ₹2000
c. cost of durable and returnable packaging ₹5000
d. freight charged separately by the supplier ₹2500
e. insurance on Freight paid By the supplier charged separately ₹800
f. trade discount 10%
g. Rate of GST 18%
R UMESH
Department of MBA
SVIT-Rajanukunte
Page 2
SAI VIDYA INSTITUTE OF TECHNOLOGY
3. Compute the actual GST payable from a manufacturer who prepared the invoice as under price
of goods (excluding CGST at 9% and SGST at 9%)₹5,00,000
The items are not included in the above selling price ,
a. selling expenses 30,000 rupees
b. publicity charges 40,000 rupees
c. advertising charges 50,000 rupees
d. loading and handling charges 11,000 rupees
e. discount at 10% on the price of the goods shown in the invoice
f. outward fright and insurance at the request of the buyer 22000
PROBLEMS ON VALUE OF SUPPLY UNDER COST PLUS METHOD
1. Mr. Komal dealer submits the following information in relation to manufacturer and selling of
drilling machine. Compute the net GST liability from the following information.
PARTICULARS
Import of raw material. (Exclusive 10% of BCD on import and 12% IGST)
AMOUNT
2,40,000
Raw materials purchased from Karnataka. (Including CGST at 14% & SGST 2,81,000
14%)
Raw material purchased form Goa including IGST at 5%
63,000
Subsidy received from an NGO which was directly related to price of the goods.
13,000
Penalty levied by Mr. Satish for delayed payment
575
Subsidy received from central Government which was directly linked to the price 34,000
of the product.
Additional incentives paid to the employees of sales department
5,000
Warranty charges
8,500
Manufacturing expenses
6,000
Service received from a registered dealer to manufacture a machinery rate of GST 23,000
applicable to these service 12%
Along with the machine he supplied 3 different components at a fixed price of Rs. 25,000 each
of these components are not naturally bundled with the supply of the machine. The GST rate of the
3 product is 5% , 12% and 28% respectively.
Mr. Komal sold the machine to Mr. Shankar a registered dealer in Delhi at a profit of 15% on the
cost of production and the rate of GST on such sales is 28%.
R UMESH
Department of MBA
SVIT-Rajanukunte
Page 3
SAI VIDYA INSTITUTE OF TECHNOLOGY
2. Compute the Net GST liability of Mr.Guru, a registered dealer in Chennai from the following
information.

Raw material imported from srilanka – Rs.40000
(excluding BCD at 10% and IGST at 12%)

Raw material purchased from Coimbatore (including GST at 5%) Rs90300

Raw material purchased from Bangalore (including IGST at 12% ) Rs.43000

Storage, transportation cost & insurance Rs.76000

Other manufacturing expenses incurred Rs.25000

Profit margin of manufacturer is 10 % on the selling price.
Mr. guru sold 30 % of the finished goods to a SEZ in Hosur and the balance to a dealer in
Chennai. GST rate on sale of such goods is 12%.
3. Mr. Shashidhar a dealer submits the following information in relation to manufacture and selling
of drilling machine. Compute the net GST liability form the following information.
PARTICULARS
AMOUNT
Import of raw material (excluding 10% of BCD on import)
1,40,000
rate of IGST at 15%
Raw material purchased from Karnataka
5,12,000
(Including CGST at 14% & SGST at 14%)
Raw materials purchased from Kerala excluding IGST at 5%
40,000
Subsidy received from a NGO which was directly related to price of goods
13,000
Manufacturing goods
3,800
Subsidy received from central Government which was directly linked to the price 14,000
of the product.
Additional incentives paid to the employees of sales department
3,000
Warranty charges
9,600
Exempted service received in connection with the manufacture
6,600
Along with the machine he supplied 3 components at fixed price Rs. 15,000 each of these
components are naturally bundled with the supply of the machine. The GST rate of the 3 products
is 28%, 5% and 12% respectively.
Mr. Shashidhar sold the machine to Ms. Preethi at a profit of 15% on the cost of production and the
rate of GST on such sales is 18%.
R UMESH
Department of MBA
SVIT-Rajanukunte
Page 4
SAI VIDYA INSTITUTE OF TECHNOLOGY
4. Mr. Raja a resident of Bangalore submits the following information
Goods “A” purchased within the state ((inclusive of GST @ 5%)
630000
Goods “B” purchased within the state ((Exclusive of GST @12%)
612500
Goods “C” purchased unregistered dealer GST@ 12%)
60000
Goods “D” purchased from local market un reg. dealer GST 12 %)
608000
Goods “E” purchased within the state Composite dealer
668050
Goods “F” Imported from HP Excluding IGST 18%)
60000
Goods “G” purchased from AP (inclusive of GST 5%)
63000
Goods “H” Imported from USA including BCD (Exclusive IGST 18%)
650000
Goods “I” Imported from Thailand inclusive of BCD & GST 18%)
618000
Goods “J” purchased at zero (0) rate
2000000
Goods “K” purchased Exempt from GST
500000
Goods “L” purchased SEZ (inclusive of IGST 5%)
210000
Labour charges
63950
Transportation charges
80000
Mr. Raja sold entire stock to Mr. Prasad a resident of Mysore at a profit of 16% on the cost
Compute (1) Transaction value (2) output Tax @ 18% (3) input Tax (4) adjust ITC
5. Mr.Madan a dealer submits the following information in relation to manufacture and selling of
water pumps. Compute the transaction value from the following information.
a. Import of raw material (excluding 20% BCD & 12% IGST) Rs. 420000
b. Raw material purchased from Karnataka (including CGST at 14% and SGST at 14%)
Rs.481600
c. Subsidy received from an NGO which was releted to price of the goods Rs.11000
d. Raw material from Goa including GST at 5% Rs.84000
e. Penalty levied by Mr. Madan for delayed payment Rs.1000
f. Subsidy received from central government which was directly linked to the price of the
product Rs.34000
g. Additional incentives paid to the employees Rs.9000
h. Warranty and manufacturing charges Rs.40000
i.
Service received from a registered dealer to manufacture the machinery, rate of GST
applicable to this services is 12% Rs.25000
R UMESH
Department of MBA
SVIT-Rajanukunte
Page 5
SAI VIDYA INSTITUTE OF TECHNOLOGY
Along with the machine he supplied three different necessary components at a fixed price of
Rs.40000 each.
Mr.Madan is registered dealer and he sold the machine at a profit of 10%
PROBLEMS ON MULTIPLE SUPPLIES
1. Mr..Shyam a resident of Bangalore submits the following information.
Particulars
RS
Goods “A” Sold within the state (GST @ 5%)
600000
Goods “B” Sold within the state (GST @12%)
612500
Goods “C” Sold unregistered dealer GST@ 12%)
60000
Goods “D” Sold to local market un reg. dealer GST 12 %)
600000
Goods “E” Sold within the state Composite dealer @ 12%
668000
Goods “F” Exported to UK GST 18%)
60000
Goods “G” sold to AP ( GST 5%)
60000
Goods “H” Exported to USA (Exclusive IGST 18%)
650000
Goods “I” Exported to Thailand GST 18%)
618000
Goods “J” Sold to Tumakur at zero (0) rate
2000000
Goods “K” Sold Exempt GST to shivamogga
500000
Goods “L” Sold to SEZ in Balagavi ( IGST 5% if it is sold to Mysore)
210000
2. Mr.Vikas is a registered person in Bangalore provides the following information for the
month of April 2020. Compute the value of taxable turnover and the output tax.
a. Supply to a dealer in Pune GST 12 % for Rs.800000
b. Supply to a dealer in Delhi Rs.200000 (nil rate)
c. Sale to a dealer in Mangalore Rs.980000 (GST 5%)
d. Exported to Denmark Rs.1500000 (GST 12%)
e. Supply to dealer in Haryana Rs. 200000 (GST 12%)
f. Sold to an unregistered dealer in mysore Rs.1500000 (GST 12%)
g. Supply to SEZ developer in Udupi Rs.800000 (GST 5%)
h. Exempted goods supplied to a delaer in rajastan Rs. 400000
i.
Sale to a dealer in Hassan who has registered under composition scheme (12 % GST for
Rs.500000)
R UMESH
Department of MBA
SVIT-Rajanukunte
Page 6