Page 64 - CA Final GST

Badlani Classes

been allotted to Mr. Ram Pyare (free of any other payment) on 31-3-2019. Balance 25
flats have been given to outside buyers against their booking made on 1-3-2019 at `60
lakhs per flat(including value of land) on the same date. Determine GST payable by Y
Ltd. Rate of GST is 18%.
Ans. As regards flats given to outside buyers, since a part of the payment was received prior to
completion certificate, hence, it is construction service and not mere sale of flat. Hence,
the gross value of construction services would be = `60 lakhs x 25 flats = ` 1,500 lakhs.

Flats to landowner:
- Construction services to landowner Mr. Ram Pyare are not ‘free’ and they are
against consideration by way of land development rights received from Mr. Ram
Pyare.
- Hence, value of construction services provided by Y Ltd, in 15 flats allotted to
land owner Mr. Ram Pyare=Open market value of similar flats [Rule 27] =15 flats
x `60 lakhs = `900 lakhs.
- Since the value of flat includes undivided share in land, 1/3 deduction would be
rd
rd
allowed towards value of land. Hence, effective value = (1500+900) -1/3 = 1,600
lakh. GST = 18% of 1,600=288 lakh.

Time of supply is March, 2019: The GST is payable on :(a) development rights given by
landowner Mr. Ram Pyare to Y Ltd. and (b) also on construction services provided by
builder Y Ltd. to landowner at the time of allotment. Hence, GST would be payable for
the month of March, 2018.
Que. Y Ltd. provided works contract services as per following details:
Particulars `
Installation of machinery 2,00,000
Completion and finishing service (plastering of a building) 1,00,000
Repairs of machinery 50,000
Additions to damaged structure 2,50,000
Installation of electrical fittings of immovable property 75,000
You are required to compute the taxable value of services and GST payable thereon.
Ans. Computation of value of taxable services
Installation of machinery 2,00,000
Additions to damaged structure 1,00,000
Completion and finishing service plastering of a building 50,000
Repairs of machinery 2,50,000
Installation of electrical fittings of immovable property 75,000
Total taxable value of service 6,75,000
GST payable @ 18% 1,21,500

Que. Compute GST liability (to be paid in cash) from the following particulars of services of
M/s, Utkarsh & Co. for the month of April ,GST is 18%-(CA Final May 2017, 5 Marks)
No. Particulars Amount
(`)
1. Construction of road for general public 16,75,000
2. Renovation service provided to Government relating to plant for 12,00,000
sewerage treatment.
3. Gross amount (excluding all taxes) charged for providing works 2,00,000
contract service.
4. GST paid on input services 3,000
5. GST on capital goods, purchased and used in provision of works 2,000
contract service Page63
6. GST paid on inputs used in the provision of works contract service 10,750

Ans. Computation of value of taxable service and GST payable

Central Goods & Services Tax Act, 2017