CA Final IDT Question Paper Nov 2020

CA Final IDT Question Paper Nov 2020 – CA Final IDT Study Material is designed strictly as per the latest syllabus and exam pattern.

CA Final Indirect Tax Question Paper Nov 2020

Question 1.
Mr. Rishi, a registered supplier under GST in the State of Maharashtra, provides the following information for the month of January 2020:

Particulars Amount in ₹
(i) Supplied computers (which were purchased from a unregistered supplier) without any consideration to his Brother-in-law in Ranchi (market value of supply was ₹ 62,000) Nil
(ii) Supplied a consignment of 10 Laptops to M/s NK & Co. in the State of Maharashtra at the instruction of third person being M/s. ZX Computers of Tamilnadu. 6,00,000
(iii) Provided stock counting service to M/s XY Impex registered with GST in the State of Gujarat, whereas the place where the stock counting was carried out was at the Godown located in Mumbai. 80,000
(iv) Provided renting service of his service apartment in Mumbai at a daily rent of ₹ 1500 for residential purposes. 30,000
(v) Recovery agent services provided to M/s. Apex Finance Ltd., an NBFC located in Delhi. 2,00,000
(vi) Advance received during the month for future intra-State supply. 9,00,000
(i) Imported computer accessories from Korea and the goods landed in Mumbai Port and reached at his registered premises on 31.01.2020. 5,00,000
(ii) Availed GTA services from M/s. Speed Trans of Kolkata with regard to transport of traded goods where rate of CGST/SGST @ 2.5% each/IGST @ 5% was applicable. 1,00,000
(iii) Apart from the above, received 15 invoices involving IGST of Rs. 1,00,000 during the current month. ———

Mr. Rishi provided the following additional information:

(a) Turnover for the previous financial year was ₹ 21 Lakhs.

(b) He had availed services in an inter-State transaction with a taxable value of ₹ 4,00,000 and a tax rate of 18%. This transaction was liable to tax under reverse charge. Payment for the same to the supplier was not made till the current month (overdue for 181 days as at 01.01.2020). However, tax due under the said transaction was paid to Government and credit availed in the month of transaction itself.
* ‘Part I consist of Multiple Choice Questions are not available in Public Domain.

(c) Out of the 15 invoices as per above, 12 invoices involving IGST of Rs. 95,000 was uploaded by the suppliers in their GSTR-1 Return. All the invoices are eligible for claiming as ITC.

(d) He had sent goods valued Rs. 1,00,000 to his job worker in the state of Kerala, who further processed the said goods and made direct supply on 31.01.2020 from Kerala to a buyer in the State of Maharashtra.

(e) Out of advance received for future supply, Rs. 5,00,000 related to supply of goods and the rest related to service.

(f) Rate of CGST, SGST and IGST are 996, 9% and 1896 respectively for both inward and outward supply of goods and services. Same rate is also applicable for inward supplies received, except where otherwise provided.

(g) All the amounts given are exclusive of taxes wherever applicable.

From the information given above, you are required to compute the net GST liability payable in cash (CGST, SGST or IGST as the case may be) for the month of January, 2020. Assessee wants to make the cash payment of GST under SGST head as far as possible.
Computation of Net GST Liability for the month of January 2020

Particulars IGST CGST SGST
(1) GST payable on OUTWARD Supplies (under For­ward Charge Mechanism) [Working Note-1] 1,22,400 47,700 47,700
(2) GST payable on INWARD Supplies (under Reverse Charge Mechanism) [Working Note-2] 5,000 —— ——-
Total GST payable before adjustment of ITC 1,27,400 47,700 47,700
(-) Adjustment of ITC of IGST [calculated in working Note-3]
Towards IGST (1,27,400)
Towards CGST (47,700)
Towards SGST (24,800)
Net GST payable in Cash Nil Nil 22,900

Working Note-1 Computation of GST Payable on Outward supplies for the month of January 2020

Value of Supply IGST CGST SGST
1. Supply of computers without con­sideration to brother in law Nil ——- —— ——–
2. Supply of 10 Laptops under “Bill To Ship To” 6,00,000 1,08,000 ——- ———
3. Provided stock counting service 80,000 14,400 ——– ———
4. Provided renting service of service apartment 30,000 ——— 2,700 2,700
5. Recovery agent services provided to NBFC 2,00,000 ——- ——- ——-
6. Advance received for future intra­State supply.
(a) For Goods Nil ———- ———- ————
(b) For Services 4,00,000 ———– 36,000 36,000
7. Supply of goods from the place of job worker directly 1,00,000 ———— 9,000 9,000
GST payable on outward supplies 14,10,000 1,22,400 47,700 47,700

Working Note-2 GST Payable on Inward supplies under RCM

Value of Supply IGST CGST SGST
Availed GTA services under reverse charge 1,00,000 5,000 —— ——-

Working Note-3 Computation of ITC available

1. Import of Computer [Working Note-4] 99,900 ——- ——–
2. ITC in respect of invoices uploaded by supplier 95,000 ———– ———
3. For invoices not uploaded [Working Note-5] 5,000 ——— ———
GST payable on outward supplies 1,99,900 Nil Nil

CA Final IDT Question Paper Nov 2020

Working Note-4 IGST paid on import of Computer

             Assessable Value (Given) 5,00,000
Add: Basic Customs Duty @ 10% of ₹ 5,00,000 50,000
Add: Social Welfare Surcharge @ 10% of ₹ 50,000 5,000
Total 5,55,000
Add: IGST @ 18% of ₹ 5,55,000 99,900
Landed Value 6,54,900

IGST paid on import (available as ITC) = ₹ 99,900.
Assumption: It has been assumed that ₹ 5,00,000 is the Assessable Value.

Working Note-5 ITC in respect of Invoices not uploaded

A        ITC on invoices uploaded 95,000
B         ITC on invoices NOT uploaded (as per books) 5,000
C        As per Rule 36(4), ITC on invoices not uploaded is restricted to 10% of

ITC on invoices uploaded (10% of A)

Admissible ITC on invoices NOT uploaded (B or C, whichever is less) 5,000

Question 2(a).
M/s All-in-One, a partnership concern and a registered supplier under GST, is engaged in providing various services under one roof. The concern provides the following information pertaining to supply made/input services availed by it during the month of March 2020:

(i) Provided Direct Selling Agent service to Y Bank Ltd. 4,00,000
(ii) Provided security services to ABC P. Ltd. a registered Person under GST 60,000
(iii) Provided security services to PSR Trust, an unregistered Person under GST 1,00,000
(iv) Provided renting of motor vehicle to Amaze Tours Ltd. and supply value included cost of fuel 75,000
(v) Provided renting of motor vehicle to Priti & Co., CA Firm and supply value included cost of fuel 40,000
(vi) Availed representational service from PB and Co., a Law Firm towards a Consumer Court case 70,000

Determine the GST liability of M/s All-in-One for the month of March, 2020 by giving necessary explanations for treatment of various items. Rate of tax for both inward and outward supply is CGST/SGST @ 9% each except renting a vehicle, for which CGST/SGST @ 2.5% each is applicable. M/s All-in-One commenced its business from February, 2020. All the supplies are intra-State only.
GST Liability of M/s All-In-One for the month of March 2020

Value of Supply CGST SGST
1. Direct Selling Agent service to Y Bank Ltd. 4,00,000 36,000 36,000
2. Provided security services RCM ———– ———
3. Provided security Services to PSR Trust 1,00,000 9,000 9,000
4. Provided renting of motor vehicle to Amaze Tours Ltd. RCM ——- ———
5. Provided renting of motor vehicle to Priti & Co. CA Firm 40,000 3,600 3,600
6. Availed representational service from PB and Co. Exempt ——— ———
GST payable on outward supplies 48,600 48,600

CA Final IDT Question Paper Nov 2020

Question 2(b).
M/s Global Travels is providing money changer and air travel agent services to various clients. From the information provided below, you are required to calculate the value of taxable supply for the month of March 2020 :
(i) It had converted US $ 6,000 into Singapore Dollar 9,000. RBI reference rate at that time was ₹ 72 per US $ and for Singapore Dollar, it was ₹ 52.
(ii) It had booked domestic ticket value of ₹ 7,00,000 and International ticket value of ₹ 15,00,000.

Additional information:
The concern has not opted to value the money change under Rule 32(2)(b) of CGST Rules. Basic Air Fare component under both domestic and international ticket value is 70% and 60% respectively.

Value of supply
(i) Conversion of USD into SGD
Value1 = 6,000 × ₹ 72 = ₹ Rs. 4,32,000
Value2 = 9,000 × ₹ 52 = ₹ 4,68,000
Value of Supply = 1% of lower amount (ie. ₹ 4,32,000) 4,320
(ii) Booking of Tickets
Domestic = 7,00,000 × 70% × 5% 24,500
International = 15,00,000 × 60% × 10% 90,000
Total Value of Supply 1,18,820

Question 2(c).
M/s Detox Ltd. wants to import customized machine to be used in its business. M/s Detox Limited provides the following further details :

Particulars Amount
(i) Cost of the machine USD 15,000
(ii) Charges paid to Canalising Agent in India Rs. 25,000
(iii) Freight charges (Air) USD 1,500
(iv) Insurance charges USD 250
(v) Basic Customs Duty 10% on 12-6-2020 and 15% on 15-6­2020
(vi) Social Welfare Surcharge 10%
(vii) Integrated GST 12%
(viii) Date of Bill of Entry: 12-6-2020 Rate notified

By CBIC – ₹ 75 per USD
By RBI – ₹ 76 per USD

(ix) Date of arrival of aircraft: 15-6-2020 Rate notified

By CBIC – ₹ 77 per USD
By RBI – ₹ 78 per USD

You are required to compute the customs duty and integrated tax payable by M/s Detox Ltd. on above import.
Computation of Customs Duty & IGST

Cost of machine (Given) [15,000 × ₹ 75] 11,25,000
Add: Charges paid to canalising agent 25,000
FOB 11,50,000
Add: Air Freight [Lower of actual and 20% of FOB]
Actual = 1,500 × ₹ 75 = 1,12,500
20% of FOB = 20% of ₹ 11,50,000 = 2,30,000 1,12,500
Add: Insurance charges [Actual: 250 × 75] 18,750
Assessable Value 12,81,250
Add: Basic Customs Duty @ 15% of ₹ 12,81,250 1,92,188
Add: Social Welfare Surcharge @ 10% of ₹ 1,92,188 19,219
Total 14,92,657
Add: IGST @ 18% of 7 14,92,657 1,79,119
Landed Value 16,71,776

Question 3(a).
M/s Housefull Convention Hall is in the business of letting out its halls for functions. It provides you with the following information for determining the amount of refund out of advance received based on time of supply for one of its clients.

Particulars Date Rs.
1. Advance paid at the time of booking the hall for a function from 1st to 3rd Nov., 2019 16-07-2019 1,00,000
2. Additional deposit paid 18-08-2019 2,00,000
3. Function is held as scheduled 1st to 3rd Nov., 2019
4. Invoice is issued (Taxable value) 25-11-2019 2,50,000
5. Consider that there is a change in the rate of tax on 15th October, 2019 from (CGST 2.5% and SGST 2.5%) to (CGST 9% and SGST 9%)

What would be the amount of refund payable to the Client?
Determination of Rate of GST

Activity Before Change After Change
Issue of Invoice
Comment: As per section 14, in this case, the date of invoice shall be the time of supply. Accordingly, new GST rate is applicable.
Taxable Value 2,50,000
Add: GST @ 18% 45,000

Total amount due from customer

Less: Advance (1,00,000 + 2,00,000) 3,00,000

Refund due to customer


CA Final IDT Question Paper Nov 2020

Question 3(b).
M/s Joinder Drills of Australia exports rough rock cutting diamonds to M/s Ankit Enterprises of India, a registered supplier in the state of Haryana. M/s Ankit Enterprises is expected to process them into tools and export the same to the supplier in Australia. The process does not involve any sophisticated process other than cutting polishing and finishing. M/s Ankit Enterprises requests M/s Joinder Drills for use of such tools for his business in India for 3 months, which is agreed to by the supplier. He then exports it to the Australian supplier, invoicing it for ₹ 12,00,000 for processing it into the required tool.

M/s Ankit Enterprises is of the assumption that it is an export transaction and therefore entitled to treat it as a zero-rated supply and decides that no tax is payable under LUT although the rate applicable to such services for domestic supplies is CGST 9%, SGST 9% and IGST 18%.
State the provisions relating to the above supply of service and explain whether the stand taken by M/s Ankit Enterprises is correct and also determine the tax, if applicable, as the goods are now moving out of Haryana.

  • Refer section 13(2)/(3)& Circular No. 103/22/2019
  • Location of Supplier (LOS) is Haryana
  • Place of Supply (POS) is Haryana
  • Nature of Supply= Intra-State
  • Thus, it is not export transaction & GST is applicable @ 9% CGST and @ 9% SGST

Question 3(c).
M/s PCB Limited has imported printed circuit boards for sale in India from Country X, which are liable for anti-dumping duty. You are provided with the following details.

  1. 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.
  2. The printed circuit board is sold in domestic Industry @ USD 175 per piece.
  3. PCB Limited has imported the printed circuit boards at USD 100 per piece.
  4. Landed value of the printed circuit boards is USD 125 per piece.

Compute the Anti-dumping duty payable by M/s PCB Limited for 1,000 pieces of printed circuit boards it has imported during the year assuming conversion rate @ Rs. 75 per USD.
Dumping Margin = Normal Value (USD 200) – Export Value (USD 100) = USD 100
Injury Margin = Domestic Price (USD 175) – Landed Price (USD 125) = USD 50
Lower is Anti-Dumping duty ie. @ USD 50
Anti-Dumping Duty = 50 × 75 × 1000 = ₹ 37,50,000

Question 4(a).
Input Service Distributor (ISD) of a company is registered separately in the state of Kerala and is distributing Input Tax Credit (ITC) to other units in the company. Following details are furnished for a particular month, and you are required to help the ISD department in distributing the ITC to other units that are carrying on manufacturing, supplying goods and services to customers.

Turnover in the relevant month of each of the units:

Particulars Amount in Lakhs
1. Mumbai (Maharashtra) 12.00
2. Bangalore (Karnataka) 60.00
3. Hyderabad (Andhra Pradesh) 36.00
4. Trivandrum (Kerala) 72.00
5. Total ITC available during the month with the ISD (includes CGST/SGST & IGST) on account of supplies received during the month. 48.00
6. From the above, ITC exclusive to Bangalore unit, available as IGST credit. 12.00
7. From the above, ITC exclusive to Trivandrum and Hyderabad units (CGST and SGST of 13.00 lakhs each). 6.00
8. Rest of the credits available is allocable as common credit to all the units and is received from local suppliers in Kerala.
9. Basic value of a Debit Note received during the month, in respect of a previous supply, with rate of tax @12% IGST being charged and shown separately. 50.00
10. Total value in the Credit Note received, during the month, applicable exclusively to Kerala unit, taxed at the rate of CGST 9% and SGST 9%, which is charged and indicated separately. 118.00

Also make your comments regarding the amount of ITC in Credit Notes, if exceeds the ITC from Invoices and Debit Notes in a particular month for all or any of the units.
Distribution of ITC by Input Service Distributor

Particulars Total Mumbai
(Andhra Pradesh)
1. Exclusive to Bangalore Unit 12.00 12.0
2. Exclusive to Trivandrum/ Hyderabad Unit(1) 6.00 2.0 2.0 2.0
3. Balance Common ITC in 1:5:3:6 (2) 30.00 2.0 10.0 6.0 6.0 6.0
4. Debit Note (IGST) (3) 6.00 0.4 2.0 1.2 2.4
5. Credit Note (Exclusively in Kerala) (4) (18) (9) (9)
Net Distribution 36 2.4 24.0 9.2 2.4 (1) (1)

Working Notes:
(1) As per section 20(2)(b), the credit of tax attributable as input service to more than one unit shall be pro rata on the basis of turnover of such units. Therefore, ITC of ₹ 6 Lakhs has been distributed among Trivandrum and Hyderabad units in 72:36 i.e. 2:1.
Trivandrum = Rs. 6 × 2/3 = ₹ 4 Lakhs (As CGST and IGST)
Hyderabad = Rs. 6 × 1/3 = ₹ 2 Lakhs (As IGST because recipient is in different state)

(2) The balance common ITC = ₹ 48 – (12 + 6) = Rs. 30 Lakhs
Distributed among all in the ratio of turnover during relevant period ie. Turnover ratio = Mumbai (12): Bangalore (60): Hyderabad (36): Trivandrum (72) or 1:5:3:6
Further the credit to Trivandrum is as CGST & SGST but to other units as IGST since these units are in other states.

(3) The Basic value of debit note is ₹ 50 Lakhs with IGST @ 18%. IT means the IGST to be distributed is equal to 18% of ₹ 50 Lakhs ie. ₹ 6 Lakhs. It has been distributed to all the units on the basis of turnover in the relevant period.

(4) The total value of credit note is ₹ 118 lakhs with GST @ 18%. It means the given amount is inclusive of GST. Thus
GST Component =118 × 18/118 = ₹ 18 Lakhs
There shall be reduction on account of issue of credit note. Since it is exclusively related with Kerala, the same is deducted from Kerala unit as ₹ 9 CGST & ₹ 9 SGST.

CA Final IDT Question Paper Nov 2020

Question 4(b).
(i) A Central Government department located at Uttar Pradesh is registered with the Commercial Tax department UP State for deducting GST. It enters into a contract with a Public Sector Undertaking (PSU), registered under GST in the State of Delhi, for supplying goods valued Rs. 3,50,000. The PSU argues that no tax is deductible on this supply by the Central Government Department as it is located outside the State of Uttar Pradesh and therefore not liable to tax under CGST and SGST as it is a local levy and IGST tax deduction is not applicable if it is located in another State, other than the State in which the department is registered. You are required to comment on this.

(ii) Would there be any difference, if instead of the PSU if it was an entity in the private sector. Applicable tax rate for deduction is 1% CGST, 1% SGST and 2% IGST.

(iii) If the private sector entity undertakes works contract, for the above department in New Delhi. What would be the position of tax deduction when the contract value is ₹ 5,00,000.

(iv) The disbursing officer has not paid the tax deducted in the month of February 2019, amounting to ₹ 2,00,000 under CGST and 2,00,000 under SGST, to the Government’s account on the relevant due date, but has paid it on 14th May, 2019. Further, return for that month is also filed on that date and the certificate is also issued, simultaneously. What are the consequences, on such failures, to the disbursing officer under the GST law?
(i) No TDS : Refer 4th Proviso to section 51(1)

(ii) 2% IGST : It is inter-State supplies, assuming goods are sent from Delhi

(iii) NO TDS : Refer 1st Proviso to section 51(1)
LOS: Delhi
POS: Delhi

(iv) Interest & Penalty :

  • Interest @ 18% p.a.
  • Penalty for:

Late filing: ₹ 100 per day (Max. ₹ 5,000)
TDS Certificate: ₹ 100 per day (Max. ₹ 5,000)

Question 4(c).
Times Graphics Ltd. has imported a machine from its holding company in Japan on 12-01 -2018 after paying customs duty of ₹ 15,00,000 for use in its factory and is re-exported on 10-102018. You are required to advise Times Graphics Limited regarding duty drawback that will be available to the Company, when it sends back the machinery to its holding company after completion of the project.
Period of Use = 8 months + 29 Days
Duty Drawback = 75% of ₹ 15,00,000 = ₹ 11,25,000

Question 5(a).
M /s Fly-by-Night, tour operators availed input tax credit in respect of certain transactions where no such supplier was existent or from a person not doing any business from the registered place of business.
Jurisdictional Deputy Commissioner of GST wants to restrict the utilization of the credit by the M/s Fly-by-Night. You have been approached by M/s Fly-by-Night to give your advice on the following questions raised by it.
(i) Is it possible for the department to restrict the utilization of credit which is already availed?
(ii) If yes, under what circumstances this can be done by the Department?
Yes, it is possible for the department to restrict the utilization of ITC. Refer Rule 86A.

Question 5(b).
Mr. Jagjeevan has filed the GSTR Form 3B return after the due date prescribed for filing it. The Adjudicating Authority is of the opinion that penalty has to be levied under section 73(9) & (11) of the CGST Act, 2017 and has decided to pass an order for levying penalty of 10% of the tax or 1,10,000, whichever is higher, on the grounds that amount collected as tax has not been paid within a period of 30 days from the due date of payment of tax. Discuss the decision of the Adjudication Authority as to its correctness or otherwise.
Also, discuss the law of limitation period for issuing the show cause notice and passing the adjudication order under section 73 of the CGST Act, 2017.

  • Refer Circular 76/50/2018
  • General penalty under section 125 can be levied up to ₹ 25,000 (CGST) & ₹ 25,000 (SGST).
  • Notice to be issued at 3 months prior to the limitation under section 73(10). ie. 2 years + 9 months

Question 5(c).
List out the conditions for eligibility for duty Credit scrip entitlement under Service Exports from India Scheme (SEIS) and determine whether the following cases are eligible for benefit under SEIS.
(i) Mr. Raj has received USD 12,500 as consideration for services provided, during the year. He has also paid USD 3,000 towards services received from abroad. He has also received USD 4,000 towards employment rendered abroad during the year.
(ii) M/s Services Ltd. has received the USD 16,000 as foreign exchange during the year towards share capital.
(iii) Mrs. Anita has received USD 15,000 as consideration for services provided, during the year.
Assume that except for in case (iii) above, others have an active IEC.

(i) Mr. Raj : Not eligible as Net Free Foreign Exchange is less than $ 10,000 in the year of rendering service.
(ii) M/s Services : Not eligible
(iii) Mrs. Anita : Although otherwise eligible on the basis of NFFE (being > $ 10,000), but not eligible for DCS as there is no active IEC.

CA Final IDT Question Paper Nov 2020

Question 6(a).
Mr. Mahendran is aggrieved by the order of the Revisional Authority (RA) and wants to make an appeal to the First Appellate Authority. While commenting on the decision of Mr. Mahendran, you are also required to state the powers of the Revisional Authority to revise the orders passed by the subordinate officers under section 108 of the CGST Act, 2017.
What is the time period for the Revisional Authority to exercise the power of revision?

Question 6(a)
Who are the members of the GST Council? Enumerate any two recommendations that can be made by the GST Council.

Question 6(b).
Decide with reason whether the Registration is required under CGST Act, 2017 in the following independent cases:
(i) A Casual taxable person (CTP) has provided inter-State supply of notified Products being Textiles hand printing amounting to ₹ 19.25 Lakhs during the month of January, 2020. Those products were made by craftsmen by both hand and machines equally. CTP had obtained PAN and generated e-way bill for supply.
(ii) Mr. Bantu of Delhi doing trading business across India and his intra-State turnover details are as below:
(1) Taxable supplies made from Delhi – Rs. 18 Lakhs.
(2) Exempt supplies made from Andhra Pradesh – Rs. 10 Lakhs.
(3) Both taxable and Exempt supplies made from Tamilnadu – Rs. 5,00,000 and Rs. 6,00,000 respectively.
(i) CTP

  • Under section 24, CTP is required to take registration compulsorily.
  • But there is exception vide NN 56/2018 CT. The exception requires that the product to be made predominantly by hand even though some machinery may also be used in the process.
  • In the given case, the products are made by both hand and machines equally, which implies that use of hand is not predominantly.
  • Thus, in the given case the benefit of NN 56/2018 CT is not available. The CTP is required to take registration.

(ii) Mr. Bantu

  • Aggregate Turnover = ₹ 39,00,000
  • Applicable threshold limit= ₹ 40 Lakhs
  • Since, all the supplies are intra-State only and Aggregate Turnover is less than Rs. 40 lakhs, the registration is not required.

Question 6(c).
Mr. X has imported some items from abroad. Since he was unable to make a self-assessment, he has sought for provisional assessment pending technical testing on 29.04.2020. The technical report was received on 05.05.2020. Discuss about the time limit available to the officer for finalizing the provisional assessment as per law and guide Mr. X as of when his provisional assessment will be finalized. [5 Marks]
In case of testing, 2 months from the date of receipt of testing + 3 months extension

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