Page 82 - CA Final GST

Badlani Classes

Transport of defense equipment Exempt
Transport of books `20
Transport of organic manure is exempt: but, of chemical fertilizers `10
Transport of other goods (transport of household effects is taxable and `4,560
demurrage is includible in value)
Total taxable value `5,100

Que. Compute GST from following in respect of transport of goods by vessel (all sums
excluding taxes) [General rate of GST is 5%]-
Transport of goods from Dubai to Indian Customs Clearance Station `100 lakh
(freight is paid by Mr. Tom viz. foreign exporter to D’Costa Shipping viz. (freight)
foreign shipping lines).
CIF value of the goods is `900 lakh.
Transport by Inland waterways `30 lakh
Transport of foodgrains, pulses &mik in India (including `10 lakh `400 lakh
towards milk)
Transport of export goods from India to Dubai `400 lakh
Transport of goods in other cases (including `6 lakh ginned cotton @ `4 `410 lakh
lakh baled cotton)

Ans. Computation of taxable value
1- Transport of goods by vessel from Dubai to Indian Customs Clearance 100
Station is liable to GST in India. Even if service is provided by foreign
shipping lines’ (person located in non-taxable territory) to ‘foreign
exporter’ (person located in non-taxable territory), the service is not
exempt, GST is payable under reverse charge by Indian importer or
his agent/CHA.
Two options:
1. If actual value is available, pay GST on full value @ 5% i.e. 100 lakh
x 5% =5 lakh tax.
2. If value of service is not available, value=10% of CIF (900 Lacs) =90
Lacs,. Tax @ 5% i.e.4.5 lakh.
Here, actual value is available, hence even if it results in higher taxation,
same will be used.
2- Transport by Inland waterways: `30 lakh – Exempt Exempt
3- Transport of foodgrains, pulses & milk in India : `400 lakh – Exempt Exempt
4- Transport of export goods from India to Dubai: `400 lakh – Since Exempt
shipping line and exporter (both) are located in taxable territory,
hence, as per section 12(8), place of supply is location of registered
person (exporter) or, if exporter is unregistered, then, location of
handling over goods. In any case, PoS will fall in India. However, it
is exempted vide Entry 19B upto 30-9-2018.
However, if recipient of service is located outside India, then, as per
section 13(9), place of supply would be destination of goods- Dubai.
Further, it would amount to export and would be zero-rated.
5- Transport of goods in other cases 410
Total tax 510
GST @ 5% 25.50

Que. From the following information pertaining to month ending 30-09-2018, compute the
value of taxable supply if all charges are exclusive of GST-
(1) Renting of bus to state transport undertaking : `15 lakh
(2) Renting of goods vehicle to a goods transport agency: `25 lakh
(3) Renting of cars designed to carry passengers to a goods transport agency: `20 lakh Page81
(4) Renting of dumpers : `15 lakhs

Central Goods & Services Tax Act, 2017