Page 66 - CA Final GST

Badlani Classes

Maintenance charges to maintain building till the residential complex is Nil
handed over to Housing Society of members(These are not part of
construction service of flat. These are not part of ‘naturally bundled
services’)
Total Consideration charged for supply 48,00,000
Less: The value of land or undivided share of land i.e. 1/3 of the total 16,00,000
rd
amount charged
Taxable Value of supply 32,00,000
Computation of GST liability
Particulars CGST @ 9% SGST @ 9% TOTAL
GST payable 2,88,000 2, 88,000 5,76,000
Less ITC available 42,000 42,000 84,000
Net GST payable 2,46,000 2,46,000 4,92,000

Que. A customer ‘A’ who had booked the flat and paid `15 lakhs, subsequently cancelled his
booking. The builder refunded `14.50 lakhs and kept `0.50 lakh as cancellation charges.
Another customer who had booked a flat sold the flat to a third person and requested
builder to transfer the flat in name of the new buyer. The builder charged `50,000 as
transfer charges. Is tax payable on these amounts? Compute tax liability, if any.
Ans. Both the charges fall within the definition of ‘tolerating an act or situation’, which is
defined as a ‘deemed service’. Hence, these charges will be subject to tax at general rate
i.e. @18% .The tax liability will be determined as under-
Computation of value of taxable supply and GST liability:
Cancellation charges received from customer on cancellation of flat 50,000
booking
Transfer charges received from customer 50,000
Total Value of taxable supply 1,00,000
GST payable @ 18% 18,000

Que. Y Ltd. provided works contract services in Dec., 2017 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 for
the month of December, 2017 assuming rate of GST is 18% [Modified 4 Marks, Nov.
2016]
Ans. Computation of value of taxable supply of services and GST payable (amount in `)
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
Total Value of taxable supply 6,75,000 Page65
GST payable @ 18% 1,21,500

Central Goods & Services Tax Act, 2017