Page 70 - CA Final GST

Badlani Classes

(3) Rent earned from an inn (tariff per day `900 ) – EXEMPT as Exempt
tariff is below `1,000 per day
(4) Rent earned from another inn- Not exempt as tariff is exactly 2,00,000
`1,000 i.e., not below `1,000
(5) Renting of residential dwelling for use as residence Exempt
(6) Renting of non-residential building for use as residence- 5,00,000
taxable, not exempt because building is non-residential
(7) Renting of residential dwelling for commercial purposes: Not 6,00,000
exempt
(8) Renting of Building located at Jammu and Kashmir- Taxable 2,00,000
(9) Renting of vacant land for agricultural purposes – Exempt Exempt
(10) Renting of land for circus- Taxable 4,00,000
(11) Permitting placement of vending machines at premises- 1,00,000
Taxable
(12) Allowing mobile tower to be placed at rooftop: Taxable 4,00,000
Total 48,00,000

Que. Renting of immovable property: ABC Ltd. is engaged in business of renting of immovable
property. During the month of March, its receipts are as follows-
Receipts Amount
Rent of the commercial building (including property tax of `2,00,000) 11,00,000
Vacant land, given on lease for construction of building at a later stage 8,00,000
(such building would be used for commercial purposes)
Let out vacant land for agricultural purposes 10,00,000
A land was let out to Bombay circus 3,25,000
Compute the amount of GST payable by ABC Ltd. assuming the rent is exclusive of GST
in each case. Make suitable assumptions.
Ans. Computation of GST payable by ABC Ltd. for the month of March
Rent of the commercial building[No deduction will be allowed of 11,00,000
property tax]
Vacant land, given on lease for construction of building at a later 8,00,000
stage to be used for commercial purpose –Taxable
Let out vacant land for agricultural purposes [Exempt vide Entry Exempt
54 of Notification No. 12/2017-CT (Rate)]
land let out to Bombay circus-Taxable 3,25,000
Value of taxable supply 22,25,000
Total GST payable @ 18% 4,00,500

EXEMPTION : ENTERTAINMENT/AMUSEMENT-RECREATIONAL,
CULTURAL AND SPORTING SERVICES
Entry 78 Services by an artist by way of a performance in folk or classical art forms of-
(d) music, or
(e) dance, or
(f) theatre,
if the consideration charged for such performance is not more than Rs.1,50,000.
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However, the exemption shall not apply to service provided by such artist as a brand
ambassador.

Central Goods & Services Tax Act, 2017