Question

9. A manufacture has entered into contract for supply of an machine.
The terms of contract are as follows : Rs. (Price of machine) 3,30,000
(Machine inspection) 6,400
(Packing charges) 16,500
(Transport cost for dispatch of finished machine)8,700
(Design and drawing charges included in price of machine)19,500
(G-ST payable) 12%
Find the taxable value and the GST payable. The manufacturer
used capital goods to manufacture the machine which include GST
Rs. 10,000. Besides input used during manufacturing consists GST
paid Rs. 7,900 to suppliers.
Mention special provisions relating to determine place of services
provided.​

Answer 1

Answer:

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Answer 2

Answer:

Balance sheet is created for the given data

Explanation:

Goods and Services Tax Network (GSTN) is a [Section 8 of the Companies Act, 2013, (i.e. not profit companies)], non-Government, private limited company. It is a technology backbone for GST in India. GST being a destination-based tax, the inter-state trade of goods and services (IGST) would need a robust settlement mechanism between the States and the Centre. This is possible only when there is a strong IT Infrastructure and Service back bone which enables the capture, processing, and exchange of information amongst the stakeholders

(including taxpayers, States, Central Governments, Accounting Offices, Banks, and RBI). As a result Goods and Services Tax Network (GSTN) has been set up. Functions of the GSTN (i.e. Role assigned to GSTN): Creation of common and shared IT infrastructure for functions facing taxpayers has been assigned to GSTN and these are:

• filing of the registration application,
• filing of the return,
• creation of challan for tax payment,
• settlement of IGST payment (like a clearing house),
• generation of business intelligence and analytics etc.
• All statutory functions to be performed by tax officials under GST like approval of registration,
• assessment, audit, appeal, enforcement, etc. will remain with the respective tax
• departments.

Scope of supply includes deemed supply given under Schedule II. Under Item 5(e) of  Schedule II, any consideration received for agreeing to the obligation to refrain from an act is subject to GST. Consideration received for a non-compete agreement is also a consideration for the supply of services. Consideration of ` 10 lakhs received on the promise of

Mr. P of not providing similar services to any other person is a consideration for supply which is chargeable to GST. Since GST is not separately collected, it will be assumed that it is included in ` 10 lakhs. Consequently, value of taxable supply will be ` 8,47,458 (i.e., `

10,00,000 × 100 ÷ 118). GST liability on ` 8,47,458 will be calculated as follows (it will be paid by Mr. P out of his pocket) –