Question 2
Advance Traders is a partnership firm in Jaipur, Rajasthan. The firm has obtained GST
registration at its Head Office (HO)in Jaipur. Further, the firm is having its depot for
storage for goods in other districts in Rajasthan. The depots are added as additional place
of business in the GST registration obtained at HO. Following details are provided about the
firm for the month of July 2020:
i) Advance Traders received goods worth Rs 5,00,000 for which GST is payable on
reverse charge basis. The goods were received on 25thJuly. The supplier issued an
invoice dated 24th July and payment for the same was made by Advance Traders on 30th
July.Due to the absence of accountant, the transaction was recorded in the books of accounts on
1
st August.
ii) In the month of July, Advance Traders issued vouchers worth Rs 2,00,000 to its
customers, which were eligible to be redeemed against identified goods. Also, certain set
of customers were issued vouchers worth Rs 5,00,000 which were eligible to be redeemed
against any supply of goods in next 6 months.
iii) Mr. X, a partner in the firm, booked a Hotel in Udaipur, Rajasthan for the wedding of his
daughter in the month of October. The advance amount of `5,00,000 for booking the hotel
was paid by way of online payment from the current account of Advance Traders in July.
The hotel charged GST on such booking at the rate of 28% (CGST @ 14% and SGST @ 14% or IGST @ 28%, as the case maybe) on the amount received as advance and issued a receipt
voucher.
iv) Advance Traders made a supply of goods worth Rs 25,00,000 during the month of
July. Out of the aforesaid supply, goods worth `5,00,000 were not liable to GST.
However, Advance Traders inadvertently charged GST on such goods and collected the same
from the customers.
The balance of input tax credit as on 1st July for the firm is nil for all the registrations.
GST is applicable in the aforesaid case scenario at the following rates unless otherwise
specified:
CGST -9%, SGST -9%, IGST -18%.
All the amounts given above are exclusive of GST, wherever applicable.
Basis the aforesaid case scenario, please answer the following questions:
(A) Compute the GST liability to be discharged from electronic cash ledger for the month of July
by Advance Traders.
(B) Compute the input tax credit available to Advance Traders against the hotel booking
expense. Would there be any change if the hotel is located outside Rajasthan?
(C) Compute the time of supply of goods in case when vouchers were issued to customers in
respect of identified and unidentified goods.
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