CA Final May 2025 Suggested Answers Paper 5 Indirect Tax Laws

FOR CA FINAL EXAM PREPARATION

CA Final 2025
Suggested Answers ·
Paper 5 Indirect Tax
Laws
EXAM YEAR TYPE SUBJECT

CA Final 2025 Suggested Answers Paper 5 Indirect Tax Laws
DATE

May 2025

Notes · Sample Papers · Previous Year Papers · Mock Tests

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PAPER – 5: INDIRECT TAX LAWS
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o m PART – I Multiple Choice Questions c. o
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emthrough sea. The value of said consignment was ` 800 lakh and total gla s
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1. M/s Heart & Soul Private Limited imported a consignment of goods from

g a duty payable was ` 180 lakh. Company filed bill of entry for homea
lcustom
France

a consumption, but the goods got deteriorated after unloading and after
examination in India but before clearance for home consumption. The value
of the goods after deterioration comes down to ` 200 lakh and the same was
agreed by the proper officer.
The amount of total custom duty payable at the time of clearance of goods
will be:
(A) ` 180 lakh
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(B) ` Nil
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(C) ` 45 lakh
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(D) ` 135 lakh
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gsection 9 of the Customs Tariff Act, 1975 shall not
2. Countervailing duty under a
be levied unless it is determined that:
(i) Subsidy relates to use of domestic goods over imported goods in the
export article.
(ii) Subsidy relates to export performance.
(iii) Subsidy is conferred on all the persons engaged in the manufacture of
articles whether to be exported or to be consumed domestically.
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Choose the correct option:
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gla (C) (ii) and (iii) a
a (D) (i) (ii) and (iii)

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INDIRECT TAX LAWS

3. M/s Rise & Progress Medicare Clinic is a multispecialty hospital located at
Chennai, Tamil Nadu. It has provided the following services to one of its
patient:
(i) Air ambulance service provided to transport critically ill patient from
distinct location to the hospital and total fee charged by way of said
service ` 80,000 (exclusive of taxes)
(ii) Services by way of providing general ward room having room charges
exceeding ` 7,500 per day to the patient receiving health care services
and total fee charged by way of said services is ` 1,72,500 (exclusive of
taxes).
Total value of taxable outward supply provided to the patient by Rise &
Progress Medicare Clinic will be:
(A) ` 80,000
(B) ` 1,72,500
(C) ` 2,52,500
(D) ` NIL
Integrated Case Scenario - I:
M/s Far Sites (FS), a proprietorship firm registered under GST in Chandigarh and
deals in supply of variety of goods including electronic goods and repair &
maintenance thereof. FS furnishes following information for the month of
December 2024:
Outward supplies during the month of December 2024 are as under:
Supply of goods to unregistered persons in Chandigarh (Out of ` 10,00,000
the aforesaid supply, goods worth ` 1,00,000 were not liable to
GST.
However, FS inadvertently charged GST on such goods and
collected the same from the customers).
Supply of goods to registered suppliers located in Punjab ` 20,00,000
Repair & maintenance services provided to unregistered ` 5,00,000
persons located in Haryana

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FINAL EXAMINATION: MAY 2025

Inward supplies during the month of December 2024 are as under :
Purchase of TV sets from registered suppliers. During unloading ` 20,00,000
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of said TV sets, five LED TVs and two QLED TVs valued to
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` 2,00,000 got completely damaged, but the supplier refused to

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replace the same.
Purchasemof washing machine from unregistered suppliers a
s e supply) ` 5,00,000
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(Intra-State
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aTransportation charges paid to Sri Logistics (unregistered GTA) ` 1,00,000
Further, the following information is also provided related to December 2024 :
(1) FS received security services from M/s LML Limited Chandigarh amounting
to ` 50,000. M/s LML Limited is an unregistered supplier.
(2) Rent of Shop paid to Municipal Corporation of Chandigarh - ` 50,000
(3) Legal fee of ` 10,000 paid to Mr. Prakash, a Senior Advocate of Punjab and
Haryana High Court for providing legal advice.
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(4) FS issued vouchers worth ` 2,00,000 to its customers, which were eligible to

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be redeemed against identified goods. Also, certain customers were issued

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vouchers worth ` 5,00,000 and the same can be redeemed against any supply
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of goods till March 2025.
(5) FS procured old and used goods worth ` 5,00,000 on which GST is payable
on reverse charge basis. The goods were received on 25th December, 2024.
The supplier issued the invoice on 24th December, 2024 and payment for the
same was debited from the bank account of FS on 31st December, 2024. Due
to the leave of accountant, the transaction was recorded in the books of
accounts on 1st January, 2025.

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(6) FS received long term lease of an industrial plot from Chandigarh Housing

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Board (CHB) in auction against payment of an upfront amount as lease
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premium amounting to ` 20 lacs for a period of 50 years. The company paid

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prime location charges of ` 5 lacs in addition to the said premium.
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Net tax liability for the month of November 2024 wasa` 3,80,000.
(7) FS belatedly filed its GSTR-3B for the month of November

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Applicable rate of GST on all supplies was 18% except for transportation charges
for which the applicable GST rate is 5%. Ignore bifurcation of CGST, SGST and IGST.

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INDIRECT TAX LAWS

There is no opening ITC available for the relevant tax period in the electronic
credit ledger of FS.
Note: All the above amounts are exclusive of GST, except wherever explicitly stated.
Based on the facts of the case scenario given above, choose the correct
answer to Question Nos. 4 to 9 below:
4. The total value of inward supplies on which GST is payable by M/s Far Sites
under reverse charge for December 2024 is:
(A) ` 7,10,000
(B) ` 6,60,000
(C) ` 11,60,000
(D) ` 12,10,000
5. The amount of eligible input tax credit, ignoring reversal under rule 42 or 43
if any, that can be availed by M/s Far Sites for December 2024 is:
(A) ` 6,18,800
(B) ` 4,38,800
(C) ` 5,28,800
(D) ` 4,29,800
6. GST payable in cash by M/s Far Sites for the month of December 2024 is:
(A) ` 3,73,800
(B) ` 3,86,800
(C) ` 1,84,800
(D) ` 1,97,800
7. What is the time limit for issuance of show cause notice in respect of the GST
inadvertently charged and collected on the goods in December 2024
assuming that M/s Far Sites does not deposit the same with the Government?
(A) Within 2 years and 9 months from due date of filing annual return for
the financial year.
(B) Within 4 years and 6 months from due date of filing annual return for
the financial year.
(C) No time limit to issue the show cause notice.

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FINAL EXAMINATION: MAY 2025

(D) No show cause notice is required to be issued. The tax amount shall be
refunded to the customers if the customer demands the same.

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8. Which of the following statement(s) is correct with respect to interest liability

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of M/s Far Sites, for the month of December 2024? Consider the year to be of

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365 days.
m liability of M/s Far Sites is ` 1,686 and he can pay the same la
eeither
s from input tax credit available in electronic credit ledger or in g
(A) Interest

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a (B) Interest liability of M/s Far Sites is ` 1,686 and he cannot utilize the input
cash.

tax credit for the payment of interest. He needs to pay the interest in
cash.
(C) Interest liability of M/s Far Sites is ` 1,687 and he can pay the same from
input tax credit available in electronic credit ledger or in cash.
(D) Interest liability of M/s Far Sites is ` 1,687 and he cannot utilize the input

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tax credit for the payment of interest. He needs to pay the interest in
cash.

the opinion of M/s Far Sites: as
9. There has been dispute between M/s
em Far Sites and GST Department. As per
(i) The time of supply a
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ofgall vouchers as mentioned above is the date of
redemption.
(ii) The amount received as long term lease of an industrial plot from
Chandigarh Housing Board (CHB) in auction against payment of an
upfront amount as lease premium and paid prime location charges are
exempt.
The GST Department is of the view that :

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(iii) The time of supply of vouchers amounting to ` 2,00,000 is December
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2024 whereas the time of supply of vouchers amounting to ` 5,00,000 is

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the date of redemption.

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(iv) The amount received as long term lease of an industrial plot from

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Chandigarh Housing Board (CHB) in auction against payment of an a
a upfront amount as lease premium is exempt and amount of prime
location charges are taxable under reverse charge.
Based on the above views, which of the above statements are true:

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INDIRECT TAX LAWS

(A) (i) and (ii)
(B) (ii) and (iii)
(C) (i) and (iv)
(D) (ii) and (iv)
Integrated Case Scenario - II:
LLD & Co, a Partnership firm, is engaged in manufacturing of electric equipment’s
in the State of Gujarat. The firm became liable for registration on 14th April, 2024.
It applied for registration on 16th May, 2024 and was granted registration
certificate on 20th May, 2024.
The firm had opted for composition levy under section 10 of the CGST Act, 2017
at the time of registration.
Its turnover for the quarter ending June 2024 was ` 82 lakh, out of which taxable
supply was amounting to ` 80 lakh and exempt supply was amounting to ` 2
lakh. Its turnover crossed ` 150 lakh on 9th July, 2024 and LLD & Co had opted
for withdrawal of composition scheme on the said date.
The firm provided a supply of equipment to GGY Ltd. (an unrelated limited
company) on 20th July, 2024 having market value of ` 21 lakh, wholesale value
of ` 22 lakh and maximum retail price was ` 23 lakh. However, the transaction
was made at ` 18 lakh.
During the month of June, 2024, LLD & Co has received one taxable service
covered under reverse charge u/s 9(3) of CGST Act, 2017 from a registered
supplier Mr. Sachin Kumar in the course of intra-state supply. LLD & Co failed to
issue any document to Mr. Sachin Kumar relating to this transaction.
Other details for this particular inward service are as follows:
Particulars Date
Supply of service 03/06/2024
Invoice raised by Mr. Sachin Kumar 09/07/2024
Payment recorded in the books of LLD & Co 07/08/2024
Payment debited in the bank account of LLD & Co 14/08/2024
Payment recorded in the books of Mr. Sachin Kumar 08/08/2024
Payment credited in the bank account of Mr. Sachin Kumar 16/08/2024

LLD & Co has not opted QRMP Scheme.

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FINAL EXAMINATION: MAY 2025

All the amounts given above are exclusive of taxes, wherever applicable. All the
supplies referred above are intra-State and price is the sole consideration.

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Based on the information given above, choose the correct answer for the

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following Questions Number 10 to 15:

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10. The effective date of registration of LLD & Co is:

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(A) 14th May, 2024
l(B) 16 May, 2024 ag
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a (C) 14 April, 2024
th

th

(D) 20th May, 2024
11. LLD & Co needs to furnish a statement containing details of stock of inputs/
inputs contained in semi-finished / finished goods on the withdrawal of
composition scheme by:
(A) 23rd July 2024

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(B) 9th July 2024
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(C) 8th August 2024
(D) 7th August 2024
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a g under section 15(1) of CGST Act, 2017 made
12. The value of supply of equipment
by LLD & Co to GGY Ltd. will be
(A) ` 21 lakh
(B) ` 18 lakh
(C) ` 22 lakh
(D) ` 23 lakh

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13. The tax payable by LLD & Co for the quarter ending June, 2024 will be:

m (B) ` 41,000 each under CGST and SGST .co
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(A) ` 40,000 each under CGST and SGST
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las (C) ` 80,000 each under CGST and SGST
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ag (D) ` 82,000 each under CGST and SGST
14. Time of supply for the purpose of payment of tax, for transaction with
Mr. Sachin Kumar as per GST Laws will be:

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INDIRECT TAX LAWS

(A) 07/08/2024
(B) 09/07/2024
(C) 08/09/2024
(D) 08/08/2024
15. Which of the following document is mandatory to be issued by LLD & Co, in
relation to transaction with Mr. Sachin Kumar as per the GST Laws?
(A) Bill of supply
(B) Payment voucher
(C) Receipt Voucher
(D) Tax Invoice
Answer Key

MCQ Correct Option
1. A
2. A
3. B
4. B
5. D
6. No correct option*
7. C
8. D
9. B
10. D
11. C
12. B
13. B
14. A
15 B
*Correct answer is ` 3,42,000

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FINAL EXAMINATION: MAY 2025

PART – II: Descriptive Questions

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(i) Question paper comprises of 6 questions. Answer Question No. 1 which is

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compulsory and any 4 questions out of the remaining 5 questions.

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(ii) Working notes should form part of the answer.
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em should be answered on the basis of the position of (i) GST law a s
as samended by the Finance (No. 2) Act, 2024 including significant gl
(iii) All questions

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lnotifications and circulars and other legislative amendments made, whicha
a have become effective upto 31.10.2024 and (ii) Customs law as amended by
the Finance (No. 2) Act, 2024 and significant notifications and circulars and
other legislative amendments made, which have become effective upto
31.10.2024.

Question 1
M/s BBV Ltd. of Nagpur, registered under GST in the State of Maharashtra, is

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engaged in providing following types of outward supplies:

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(i) Manufacture of taxable product 'D'
(ii) Service of hiring of trucks
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(iii) Services on which tax payable under reverse charge
(iv) Other supplies
M/s BBV Ltd. has provided the following details related to the outward supplies
for the month of October, 2024:

S. Particulars Amount (`)
No.
(i) Export of product ‘D’ with payment of IGST 16,50,000
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(ii) Product ‘D’ supplied under a Letter of Undertaking 9,00,000
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(LUT) to M/s CFF Pvt. Ltd. located in a SEZ in the state

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of Maharashtra.

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Exprt of product ‘D’ under Letter of Undertaking (LUT)
Domestic outward supply turnover of product ‘D’a
11,00,000

ag (iv)
(v) Domestic Turnover of other outward services on which
46,00,000
8,00,000
tax is payable under reverse charge

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INDIRECT TAX LAWS

(vi) Sale of securities (Purchased at ` 36,00,000 in the 42,00,000
month of January,2024)
(vii) Outward supply of Hiring of trucks to M/s ABB, a 7,00,000
Goods Transport Agency for transportation of goods.
(viii) Sale of land (excluding stamp duty value of ` 2,80,000, 1,25,00,000
being 2% of value considered for the purpose of stamp
duty)
(Land was purchased in the month of November,2023)
(ix) Interest received on investment in fixed deposits with 2,51,000
a public sector bank.

Details of inward supplies for the month of October, 2024:

S. No. Particulars Amount (`)
(i) Common inputs and input services used for outward 28,00,000
supply of goods and services mentioned above:
(a) Inputs - ` 20,00,000;
(b) Inputs services - ` 8,00,000
Nothing has been used for any non-business
purpose.
(ii) Freight paid in relation to product ‘D’ to an 75,000
unregistered Goods Transport Agency, used in
relation to taxable supply only.

Note:
(1) All the amounts given above are exclusive of GST, wherever applicable.
There is no opening balance of any input tax credit. Assume that all the
conditions necessary for availing the input tax credit have been fulfilled
including that details of GST paid on inward supplies are available in
GSTR 2B.
(2) Assume that all the domestic transactions of company are inter-State and
that rate of IGST on goods and services are 12% and 18% respectively;
however rate for goods transport agency service to be considered as 5%.

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FINAL EXAMINATION: MAY 2025

(3) Company is not covered under any of the exception provided in rule 86B of
the CGST Rules, 2017 regarding restriction on use of available input tax
credit.
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Compute the net minimum GST liability of M/s BBV Ltd., to be paid in cash

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if any, after utilizing Input tax credit if any, for the month of October, 2024.
Note:m
s e Legal explanations for each point should form part of your answer. gla
g la (14 Marks)a
aAnswer
Computation of minimum net GST liability of M/s BBV to be paid in cash
for the month of October, 2024

S. Particulars Amount IGST
No. (`) (`)
Output tax payable under forward charge

o m16,50,000
c
(i) Export of product ‘D’ with 1,98,000
payment of tax
m. [16,50,000 x 12%]

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[Since exports are inter-State

g l a on
supplies, IGST is payable
them’.]
a
(ii) Product ‘D’ supplied to SEZ under -
LUT
[Supply to a SEZ unit is a zero-
rated supply. Further, no tax is
payable since goods are supplied
under LUT.]
(iii) Export of product ‘D’ under LUT
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[Export is a zero-rated supply.
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Further, no tax is payable since

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goods are supplied under LUT.]

las (iv) Domestic outward supply of 46,00,000
a g 5,52,000

ag Product ‘D’ [46,00,000 x 12%]
(v) Outward services taxable under -
reverse charge

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INDIRECT TAX LAWS

[No tax is payable since recipient
is liable to pay tax.]
(vi) Sale of securities -
[Since securities are neither
goods nor services, sale of
securities is not a supply.]
(vii) Supply of hiring of trucks to GTA -
[Exempt, since services by way of
giving on hire to a GTA, a means
of transportation of goods, are
exempt.]
(viii) Sale of land -
[Sale of land is neither supply of
goods nor supply of services, as
it is covered in Schedule III. Thus,
it is not a supply.]
(ix) Interest received on investments -
[Services by way of extending
deposits in so far as the
consideration is represented by
way of interest are exempt.]
Total output tax 7,50,000
Less: Input tax credit [Refer (1,39,523)
working note below.]
[ITC of IGST is being utilized for
set-off of IGST liability.]
Net GST payable 6,10,477
Since the value of supply in
October month exceeds ` 50 lakh,
at least 1% of output tax liability
is to be paid in cash, in terms of
rule 86B. However, since in the
given question, ITC available is
much less than 99% of the output

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FINAL EXAMINATION: MAY 2025

tax liability, there is no need for
any adjustment of amount utilized
from electronic credit ledger.
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Add: Tax on services received by 75,000 3,750 c. o
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the
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seunregistered GTA is payable l
registered recipient from

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a Minimum net GST payable in 6,14,227
cash

Working note - Computation of eligible ITC available for set off

Particulars IGST (`)
Common credit on inputs 20,00,000 2,40,000

om 1,44,000
[20,00,000 × 12%]
Common credit on input 8,00,000
c. [8,00,000
em
services 3,84,000
s
× 18%]

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[Since used exclusively for g
Freight paid 3,750

available.]
a taxable supply, ITC is fully [75,000 × 5%]

Less: Common credit attributable to exempt supplies (2,48,227)
(rounded off)
= Common credit on inputs and input services x (Exempt
turnover during the period / Total turnover during the
period)
= ` 3,84,000 x ` 1,55,42,000 / ` 2,40,43,000
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m Exempt turnover = ` 1,55,42,000 and
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c. o Total turnover = ` 2,40,43,000
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gla Total ITC eligible for set-off
a 1,39,523

a

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INDIRECT TAX LAWS

Notes:
1. Computation of Exempt turnover
Particulars Amount (`)
Exempt turnover
includes –
(i) supply of hiring of trucks to GTA 7,00,000
(ii) services taxable under reverse charge 8,00,000
(iii) sale of securities 42,000
(Value of exempt supply in respect of security is
1% of the sale value of such security) and
(iv) sale of land 1,40,00,000
(Value of exempt supply in respect of land is the
value adopted for paying stamp duty)

excludes interest received on investments (`
2,51,000)
Exempt Turnover 1,55,42,000

2. Computation of Total turnover = ` (16,50,000 + 9,00,000 + 11,00,000 +
46,00,000 + 8,00,000 + 42,000 + 7,00,000 + 1,40,00,000 + 2,51,000)
= ` 2,40,43,000
Question 2
(a) M/s. JLM & Sons, a partnership firm, is registered under GST at Bengaluru in
the State of Karnataka. It has provided the following information related to
the month of October, 2024:
S. Particulars Amount (`)
No.
(i) Amount charged for composite supply of goods and 8,50,000
services by way of milling of wheat into wheat flour,
along with fortification to Tamil Nadu Government
for distribution of such wheat flour under Public
Distribution System (PDS) in Tamil Nadu.

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FINAL EXAMINATION: MAY 2025

(The value of supply of goods in the above supply
constitutes 49% of the value of composite supply).

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(ii) Taxable supply of direct selling agent services to a 4,00,000

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local branch of a public sector Bank.

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(iii) Supply of tobacco leaves as agriculturist to M/s Ram 1,05,000

s e & Sons, a sole proprietorship firm registered at Hubli
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l (iv) Amount received for services provided to State
(Karnataka).
a
a Government in relation to training of drivers at
1,05,000

Karnataka during the road safety week celebration
of the Karnataka Government. (79.50% of the total
expenditure is borne by the Government)
(v) JLM & Sons got the permission from the municipal 26,00,000
authorities to build an 8 floors building in the

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Bengaluru. But it agreed to build only 4 floors

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building and received ` 26,00,000 as compensation

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from Sunil Constructions Ltd., a neighbouring

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housing project which wants to protect its sunlight.
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Based on the information given above, calculate the taxable value of supply
under GST law on which tax to be paid by M/s JLM & Sons and also calculate
tax payable for each item separately for the month of October, 2024.
All the above amounts are exclusive of GST, if any.
Assume rate of CGST and SGST @ 9% each and IGST @ 18% for all the
supplies covered including services of obligation to refrain from an act or to
tolerate an act. (5 Marks)
(b) M/s VRM Ltd. is a registered job worker in the State of Haryana under GST
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and providing various job work services related to metal products. On
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c. o 30th April, 2024, VRM Ltd. received steel cabinets worth ` 48 lakh under a
se
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delivery challan with e-way bill for the purpose of job work from M/s Vijay

las Pvt. Ltd., a registered manufacturer in Haryana.
g
a on a metal frame
ag The scope of job work included mounting the steel cabinets
and sending back the mounted cabinets to Vijay Pvt. Ltd. The metal frames
are to be supplied by M/s VRM Ltd. along with services relating to job work.

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INDIRECT TAX LAWS

VRM Ltd. has agreed to charge total consideration of ` 6.50 lakh for the entire
mounting job work activity including the value of metal frames. During the
course of mounting activity, metal waste is generated out of metal frames,
which is sold by M/s VRM Ltd. for ` 52,000. VRM Ltd. sent back the steel
cabinets mounted on the metal frame to Vijay Pvt. Ltd. on 13th October, 2024
under a delivery challan with e-way bill.
You are required to compute taxable value and the GST liability of M/s VRM
Ltd. related to this transaction in any tax period.
Assume GST rate for metal frame as 28%, for metal waste as 12% and for
services as 18%. Also, give reason(s) for inclusion or exclusion of the value of
cabinets in the job charges for the purpose of payment of GST by VRM Ltd.
(5 Marks)
(c) DEF Ltd. imported a packaging machine from USA. DEF Ltd. paid ` 56,000 as
charges for development activities for work done in India with respect to the
imported machine.
Further, the following particulars are furnished and you are required to
compute the assessable value for the purpose of customs duty payable:

S. No. Particulars Amount ($)
1. Price of the machine 20,000
2. Freight (Air) 5,000
3. Design charges paid to a firm in USA 300
4. Licence fee relating to imported goods payable 10% of Price
by the buyer as a condition of sale of Machine
5. Buying commission paid by the buyer to his 200
agent in USA
Amount (`)
6. Materials and components supplied by the buyer 50,000
free of cost
7. Insurance paid to the insurer in India 6,000

Other Particulars:
(i) The commission payable with respect to sales to the local agent of the
exporter is 5% of cost of the machine.

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FINAL EXAMINATION: MAY 2025

(ii) Materials and components supplied by the buyer free of cost are valued
at ` 50,000.

m
c. o
(iii) Inter-bank exchange rate as arrived by the authorized dealer is ` 82.50

m
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per $.

. em
e m
(iv) CBIC had notified for purpose of Section 14 of the Customs Act, 1962,

l a s
s g
exchange rate of 83 per $. (4 Marks)

l a a
a(a)g Computation of taxable value of supply on which tax is to be paid by
Answer

M/s JLM & Sons and tax payable thereon
Particulars Value CGST SGST IGST
@ 9% @ 9% @ 18%
(`) (`) (`) (`)
(i) Amount 8,50,000 1,53,000
charged from
m
Tamil Nadu
. co
em
Government
[Taxable since
l a s
composite
supply of service a g
of milling of
wheat into flour
and fortification
for distribution
by State
Governments

m
under PDS is

m .co
exempt from

c. o m
GST only if value

em
of goods

la se
las supplied in said
a g
g
supply:

a does not
exceed/ is upto
25% of the total
value of
56

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INDIRECT TAX LAWS

composite
supply.
Further, it’s an
inter-State
supply since
place of supply
is location of
recipient, i.e.,
Tamil Nadu.]
(ii) Direct selling 4,00,000 36,000 36,000
agent (DSA)
services to bank
[DSA services
are not being
provided by an
individual direct
selling agent,
but by a
partnership firm.
Therefore, tax is
not payable
under reverse
charge, but is
payable under
forward charge.
Further, it’s an
intra-State
supply since
place of supply
is location of
recipient, i.e.,
Karnataka.]
(iii) Supply of - - -
tobacco leaves
[Tax on supply
of tobacco

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FINAL EXAMINATION: MAY 2025

leaves by an
agriculturist to a
registered
m
person
m
is
c. o
.co
payable by
s em
e m recipient under
l a
l a s reverse charge.
ag
ag
So, tax is not
payable by M/s
JLM & Sons. 1]
(iv) Services - - -
provided to
State
Government
[Services
provided to the
m
State
. co
em
Government
under any
l a s
training
programme for a g
which 75% or
more of the total
expenditure is
borne by the
State
Government is
exempt under
m
co
GST.]
m .
c. o se
m
s em g l a as per section
la 2(7) of the CGST Act, 2017, only an individual or HUF qualifies asaan "agriculturist". Thus,
It is important to note that in accordance with the definition of agriculturist
1

ag alternatively, it is also possible to interpret that since JLM & Sons is a partnership firm, it is
not an agriculturist. In that case, CGST and SGST @ 9% each will be payable under forward
charge by JLM & Sons, i.e. ` 9,450 – CGST and ` 9,450 – SGST.

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INDIRECT TAX LAWS

(v) Compensation
from Sunil
Construction
Ltd.
[Service of
agreeing to the
obligation to
refrain from an
act is being
provided.
Further, it’s an
intra-State 26,00,000 2,34,000 2,34,000
supply since
place of supply
is location of
recipient, i.e.,
Bengaluru.]
Taxable value 38,50,000
of supply on
which tax is to
be paid by M/s
JLM & Sons
(b)
Particulars Amount 2 Rate GST
(`) (`)
Job charges 6,50,000 18% 1,17,000
[Since mounting steel cabinets on
metal frames by a job worker is
treated as a service (even though the
metal frames are also supplied as a
part of the mounting activity) in
terms of Schedule II to the CGST Act,
tax is payable @ 18%.

2
It has been most logically assumed that amounts given are exclusive of GST. However, it is
also possible to assume the amounts to be inclusive of GST and solve accordingly.

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FINAL EXAMINATION: MAY 2025

Value of steel cabinets supplied by
the principal will be excluded from
the job charges since supply of
m
m
cabinets does not fall within the
c. o
.co
scope of supply to be made by job
s em
e m
worker -
l a
a sM/s VRM Ltd.]
l Sale of metal waste ag
g
a [Since M/s VRM Ltd. is registered, the
52,000 12% 6,240

tax on the supply of metal waste
being goods will be payable by it
@ 12%.]
Total taxable value and GST
payable 7,02,000 1,23,240

(c) Computation of assessable value
m
. co
em
Particulars Amount

s
($)
Price of the machine
g l a 20,000
a
Add: Design charges paid in USA 300
[Includible since it is undertaken elsewhere than in India.]
Add: Licence fee payable by the buyer as a condition of sale
[10% of ` 20,000]
[Includible in assessable value.] 2,000
Add: Buying commission

m
[Not includible in assessable value.]

m c. o
c. o
Add: Commission to local agent
m
se 1,000
[5% of ` 20,000]

s em [Includible in assessable value.]
g la
gla Total
a 23,300
a Amount
(`)
Value in Indian currency 19,33,900

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INDIRECT TAX LAWS

[$ 23,300 x ` 83]
[Rate of exchange notified by the CBIC shall be
considered.]
Add: Materials and components supplied by the buyer free 50,000
of cost
[Includible in assessable value.]
Customs FOB 19,83,900
Add: Air Freight 3,96,780
[If the goods are imported by air, the freight cannot exceed
20% of FOB price]
Add: Insurance paid to the insurer in India 3
[Includible in assessable value.] 6,000
CIF value/ Assessable value 23,86,680

Note: Development work undertaken in India is not includible since it is
undertaken in India.
Question 3
(a) Determine the 'place of supply’ along with explaining the correct provision
of law for the following independent cases:
(i) Mr. Prakash Kumar (unregistered person under GST law) is a resident of
Surat, Gujarat. He places an order on 'E-SHOPPE' (an e-commerce
platform) for supply of laptop, which is to be delivered to his sister
Ms. Ridhima at Mumbai, Maharashtra. Mr. Prakash, while placing the
order on the above e-commerce platform, provides the billing address of
his residence located in Surat, Gujarat,

3
It has been most logically assumed that the insurance charges paid to insurer in India
in Indian Rupees pertain to the insurance of goods till the place of importation and thus,
have been included in the CIF value of goods.
However, it is also possible to assume that since such charges are paid to insurer in India,
they pertain to the insurance of goods post importation. In that case, they shall not be
included in assessable value at all; further, since insurance charges till the place of
importation become unascertainable, insurance @ 1.125% of Customs FOB shall be
added while computing the CIF value/ assessable value.

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FINAL EXAMINATION: MAY 2025

(ii) Ms. Ritu is proprietor of 'G n F Center', situated at Lucknow and
registered under GST law in Uttar Pradesh. Her client Ms. Neha
(unregistered person under GST law) located at Delhi, requests her to
m
m
provide personal grooming & fitness services at her home at Delhi.
c. o
.co
Ms. Ritu provides her grooming & fitness services at client's home at
s em
em
Delhi.
l a
l a s
(iii) Decor n Décor, an interior decorator firm located at Dehradun,
ag
ag
Uttarakhand, enters into a contract with Mr. Diego of Italy to provide
interior decoration services in respect two immovable properties of
Mr. Diego, one located at Dehradun, Uttarakhand and another located
at Italy.
(iv) SQR Mills Private Limited of Kolkata, registered under GST law in West
Bengal, gives a contract to LQR Private Limited of Varanasi, registered
under GST law in Uttar Pradesh to supply a machine which is required
to be assembled at a printing plant of SQR Mills Private Limited located

m
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at Bhopal, Madhya Pradesh. (5 Marks)

.
em
(b) M/s Vijay Communication Ltd., a registered telecom operator, is planning to bid

s
for securing the right to use spectrum offered by the Government under the

l a
spectrum allocation model followed by Department of Telecommunications (DoT).
gas advisor to give advice when the liability of
Company appointed you a
payment of GST will arise in the following independent situations:
(i) In case where full upfront payment is made.
(ii) In case where deferred payment is made by the telecom operator in
18 monthly instalments.
Give your advice by explaining the relevant legal provisions with reference to
the liability to pay GST, issue of invoice and time of supply. (5 Marks)
m
m
(c) M/s Falcon Ltd. imported capital goods worth ` 3 crore after payment of
.co
c. o m
customs duty of ` 30 lakh on 10th September, 2024 and the duty concession

em la
of ` 15 lakh was availed under Customs (Import of Goods at Concessional
se
las Rate of Duty or for Specified End Use) Rules, 2022.
g
a purpose as per
ag Imported capital goods started being used for the specified
the exemption notification with effect from 3rd January 2025. M/s X Ltd.
cleared the above said imported capital goods after having been used for the
specified purpose on 15th April 2025.

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INDIRECT TAX LAWS

You are required to calculate the differential duty payable being difference
between the duty leviable on such goods on clearance for which the
exemption was availed at the time of importation and that already paid,
along with interest payable at the rate fixed by the notification issued under
section 28AA of the Customs Act, 1962. Differential duty has been paid on
30th April, 2025. Step by step working should be part of your answer.
The applicable rate of customs duty is @ 15% (ignore any other cess or duty).
(4 Marks)
Answer
(a) (i) In cases involving supply of goods to an unregistered person,
where the billing address and delivery address are different, the
delivery address shall be the place of supply.
Thus, place of supply is Mumbai, Maharashtra.
(ii) The place of supply of personal grooming and fitness services is the
location where the services are actually performed.
Thus, place of supply is Delhi.
(iii) Where any services directly in relation to an immovable property are
supplied at more than one location, including a location in the taxable
territory, its place of supply shall be the location in the taxable territory.
Thus, place of supply is Dehradun, Uttarakhand in respect of interior
decoration services provided in relation to the immovable properties
located in Dehradun and Italy.
(iv) Where the goods are assembled at site, place of supply shall be the
place of such assembly.
Thus, place of supply is Bhopal, Madhya Pradesh.
(b) The GST is to be discharged on the supply of spectrum allocation services
by the recipient of services (the telecom operator) on reverse charge basis
(RCM).
(i) In case where full upfront payment is made by the telecom operator,
GST would be payable when the payment of the said upfront amount
is made or is due, whichever is earlier.

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FINAL EXAMINATION: MAY 2025

(ii) In case where deferred payment is made by the telecom operator in 18
monthly installments, supply shall be considered as 'continuous supply
of services', since the services are being supplied continuously for a
m
m
period exceeding 3 months with periodic payment obligations.
c. o
.co
Since the due date of payment is ascertainable from the contract, the
s em
e m
invoice shall be issued on or before such due date of payment as per
l a
l a s the option exercised by the telecom operator. Thus, in this case, GST
ag
ag
would be payable as and when the payments are due or made,
whichever is earlier 4.
(c) In the given case, differential duty payable by M/s Falcon Ltd. will be
computed as follows:
(I) Duty leviable on goods on clearance for which exemption was availed
will be computed on depreciated value allowed in straight line method,
inter alia, @ 4% for every quarter in the first year (part of quarter taken
as full quarter).

o m
c
Depreciation value will be: 8% of. ` 3 crore = ` 24 lakh
Depreciation % will be = 4% x 2 quarters = 8%

s emcapital goods is
l a
Depreciated value of imported
g
` 3 crore – ` 24 lakha
= ` 276 lakh
=` 276 lakh x 15% = ` 41,40,000
(II) Duty already paid = ` 30 lakh 5
Differential duty payable = (I) –(II)
= ` 11,40,000, payable alongwith interest under section 28AA of the
Customs Act, 1962.
o m
m .c
c. o s em
em l a
s g before
In above answer, it has been assumed that the due date of payment is ascertainable
4
from

l a a
the contract. However, it is also possible to assume that the due date of payment is NOT

ag
ascertainable from the contract. In that case, the invoice shall be issued or at the time
when the supplier of service -DoT receives the payment. Thus, GST would be payable as and
when the payments are made.
5
It is also possible to alternatively interpret that ‘Duty already paid’ is to be computed on the
depreciated value of imported capital goods.

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INDIRECT TAX LAWS

Question 4
(a) M/s XYZ, registered in the State of Maharashtra under GST, made the
following supplies during the last week of October 2024. Considering the
below mentioned independent supplies your advice is sought with
appropriate reasoning for applicability of TDS provisions on the supplies
made by XYZ along with quantification of the amount of TDS, if applicable.
Value of supply is exclusive of GST unless otherwise stated. The applicable
rate of GST on outward supplies made is CGST 9%, SGST 9% and IGST 18%.
(i) Provided taxable supply worth ` 20,000 & exempted supply worth
` 40,000/- in an invoice to the Government of NCT of Delhi at New Delhi
where a contract for supply is for ` 5,00,000/- (out of which
` 2,60,000 is for taxable supply including GST and ` 2,40,000 is for
exempted supply).
(ii) Provided supply of taxable goods amounting to ` 20,00,000 to Mumbai
office of National Housing Bank, a society established by Government of
India under the Societies Registration Act, 1860.
(iii) Provided taxable services worth ` 5,00,000 to the Government
Department of Himachal Pradesh (registered in Himachal Pradesh only)
directly in relation to the property located at Nagpur in the State of
Maharashtra and being managed by the Government of Himachal
Pradesh.
(iv) Provided supply of taxable goods valued at ` 1,00,000 (Contract value
` 2,50,000) to Government of Chhattisgarh.
(v) Provided supply of taxable iron scrap valued at ` 3,00,000/- to M/s GGS
Private Limited, a non-Government private company and registered
under GST in Mumbai, Maharashtra. (5 Marks)
(b) (i) RRY Ltd. has two registered places of business, one in the State of Tamil
Nadu and another in the State of Karnataka. Aggregate turnover during
the previous financial year 2023-2024 for both the places of business
was ` 3.27 crore and ` 1.47 crore respectively for Tamil Nadu and
Karnataka. RRY Ltd. wishes to opt for 'Quarterly Return Monthly
Payment' scheme popularly known as QRMP for one of its place of
business in the current financial year 2024-25 and wants to continue
with regular return filing scheme and to file return on monthly basis for
its other place of business.

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FINAL EXAMINATION: MAY 2025

You are required to examine the above case and answer that can RRY
Ltd. do so? Explain with reasons with reference to GST law. (3 Marks)

m
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(ii) Examine the statement, "Once the E-Commerce operator (ECO) has

m
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complied with the dynamic QR code requirements for issuing invoices,

. em
s
the suppliers using such e-commerce portal for B2C supplies will not be
m
eComment on the validity of the above statement with reference to GST g
required to comply with the requirement of dynamic QR code".
l a
a s
l law. a
g
a(c) Sarah of Germany, a person of foreign origin, has come to India on a tour on
(2 Marks)

travel visa. She carries with her the following as part of baggage:

S. No. Particulars Value in (`)
(i) 140 sticks of cigarettes of ` 120 each 16,800
(ii) Travel souvenir 75,000
(iii)
m
Other articles caried on in person 1,25,500
(iv) Fire arm with 110 cartridges
value of cartridges at @m
.co(value includes the 1,10,000
s e ` 510 per cartridge).

g l a
Determine with short explanations where required, customs duty payable on
concessional baggage, ifathe effective rate of customs duty on baggage is
38.50% inclusive of social welfare surcharge. Ignore any other applicable cess
or duty. (4 Marks)
Answer
(a)

S. Particulars 6 Tax to be deducted at source

m
No.
o
CGST SGST IGST

m @ 1% (`) @ 1% (`)
c
. - @ 2% (`)

c. o (i) Taxable supply to Government - -m
se
s em of NCT of Delhi
g la
gla [Since the total value of
a
a taxable supply [` 2,20,339
(` 2,60,000 x 100/118)] under

6
Tax will be deducted at source at the time of making payment to M/s XYZ.

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INDIRECT TAX LAWS

the contract for both taxable
and exempted supply does
not exceed ` 2,50,000, tax is
NOT required to be deducted]
(ii) Supply of taxable goods to 20,000 20,000
Mumbai office of National
Housing Bank
[Since total contract value
exceeds ` 2,50,000, tax is
required to be deducted on
intra-State supply.]
(iii) Taxable services to - - -
Government Department of
Himachal Pradesh.
[No TDS will be deducted
since the location of supplier
and place of supply (being
location of immovable
property) is in Maharashtra
which is different from State of
registration of recipient
(Himachal Pradesh).]
(iv) Supply of taxable goods to - - -
Chhattisgarh Government
[Since total contract value
does not exceed ` 2,50,000, no
TDS will be deducted.]
(v) Supply of taxable iron scrap 3,000 3,000
[Any registered person
receiving supplies of iron
scrap from other registered
person is notified person to
deduct TDS where total
contract value exceeds
` 2,50,000.]

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FINAL EXAMINATION: MAY 2025

(b) (i) Since the aggregate annual turnover (PAN based) of RRY Ltd. in
preceding financial year does not exceed ` 5 crore, it can opt for the
QRMP scheme.
m
m c. o
co
Further, QRMP scheme is GSTIN wise. Since distinct persons can avail

. em
s
QRMP scheme for one or more GSTINs, RRY Ltd. can opt for QRMP

e m l a
s
scheme for one of its places of business and continue with regular

l a return filing scheme for its other place of business.
a g
ag (ii) The given statement is not correct.
Dynamic QR code requirements apply to each supplier separately, if
such person is liable to issue invoices with Dynamic QR Code for B2C
supplies.
In case, the supplier is making supply through the e- commerce portal
or application, and the said supplier gives cross references of the
payment received in respect of the said supply on the invoice, then

m
such invoices would be deemed to have complied with the

.
requirements of Dynamic QR Code.
c o
In cases other than pre-paid m
s e the supplier shall provide Dynamic QR
supply i.e. where payment is made after

Code on the invoice. l a
generation/ issuance of invoice,
g
a
(c) Computation of customs duty payable
`
Cigarettes [100 sticks can be accommodated in General 12,000
Free Allowance (GFA)]
Travel souvenir [Allowed duty free] Nil
Articles carried on in person 1,25,500

m
Firearms cartridge [50 cartridges can be accommodated in om
c. 25,500
c. o GFA]
m
se 1,63,000
em la
Baggage that can be accommodated in GFA

las Less: GFA
a g 15,000

ag Baggage on which duty is payable 1,48,000
Duty payable @ 38.50% (inclusive of social welfare 56,980
surcharge)

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INDIRECT TAX LAWS

Question 5
(a) Mr. X, a registered person under GST, issued invoice without actual supply of
goods for taxable value amounting to ` 20 crore. Central GST authority issued
a show cause notice under section 74 by demanding following:
CGST & SGST 18% - ` 3.60 crore
Penalty under section 74 amounting to 100% of tax due - ` 3.60 crore
Interest @ 18% per annum
You are required to answer the following:
(i) Can the amount of tax be demanded in such cases?
(ii) Is it a cognizable offence?
(iii) Quantum of punishment if Mr. X has been convicted.
(iv) Amount of penalty leviable on Mr. X, if any.
(v) Amount of penalty leviable on the person who aids or abets the above
offence. (5 Marks)
(b) M/s Karim Associates (supplier) was issued show cause notice under
section 74 of the CGST Act, 2017 by the Adjudicating Authority (AA). In the
final order dated 30-08-2024 issued to M/s Karim Associates, the Additional
Commissioner of Central Tax (AA) confirmed the tax demand of ` 60,00,000.
Demand on account of penalty of equal amount and interest amounting to
` 16,00,000 was also confirmed.
However, the Revisional Authority (RA), using the powers under section 108
of the CGST Act, on its own motion called for the records and found that the
order passed by the AA is erroneous in so far as it is prejudicial to the interest
of revenue and enhanced the tax demand to ` 70,00,000, penalty of equal
amount and interest amounting to ` 20,00,000 by order dated 15-11-2024.
The supplier admitted tax demand of ` 20,00,000, interest amounting to
` 5,00,000 and penalty for ` 20,00,000 and deposited the admitted tax,
interest and penalty on 30-11-2024. For the balance amount, the supplier
decided to file an appeal and appointed a Chartered Accountant for this
purpose. The appeal was filed with the necessary pre deposit of the amount
and the same was decided in favour of M/s Karim Associates on dated
28-02-2025.

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FINAL EXAMINATION: MAY 2025

The application for refund of pre-deposit was made on 01-03-2025 and
refund was granted on 14-03-2025.

m
c. o
Considering the above facts, you are required to answer the following:

m
co m
(1) The appellate authority to which M/s Karim Associates would be required

m .
to file the appeal against the order of RA.
s e
(2) eThe amount of pre-deposit required to be deposited along with the above l
s appeal. g a
l a a
ag (3) Compute the amount of interest payable on refund of such pre-deposit
under section 115 of the CGST Act, 2017.
(4) The amount of pre-deposit required assuming if the appeal is to be filed
against the orders of appellate authority with original demand and after
considering the same amount of payment of admitted demand deposited
on 30-11-2024. (5 Marks)
(c) Mr. Ankush imported the goods from France and applied for warehousing of
m
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the said goods. The Proper officer made an order permitting the deposit of
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the goods on 21st May, 2024. Mr. Ankush deposited goods in warehouse on

s
the same day. These goods were re-exported without payment of duty on
15th October, 2024.
l a
g to levy interest @ 15% per annum on duty
The Custom Departmentawants
deferred as goods remain in a warehouse beyond a period of 90 days from
the date on which the order permitting deposit of goods in a warehouse under
section 60(1) was made. With reference to the Customs Act, 1962 and
relevant case law, discuss whether any interest is payable by Mr. Ankush in
such case. (4 Marks)
Answer

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(a) (i) Since issuance of tax invoice without the underlying supply does not

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qualify as “supply” under GST, no tax liability would arise against Mr. X.
Thus, tax is NOT required to be demanded from Mr. X. em
em l a sthe amount of
las agthe refund claimed
(ii) In the given case, the offence is non-cognizable since

ag tax evaded or ITC availed/utilised wrongly, or
fraudulently, does not exceed ` 500 lakh.
(iii) In cases where the amount of tax evaded or the amount of input tax
credit wrongly availed or utilised or the amount of refund wrongly

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INDIRECT TAX LAWS

taken exceeds ` 200 lakh but does not exceed ` 500 lakh, with
imprisonment for a term which may extend to 3 years and with fine.
In the given case, the amount involved is ` 3.6 crore (together under
CGST and SGST). So, the quantum of punishment will be 3 years and
fine.
(iv) Penalty is higher of the following amounts: -
(a) ` 10,000 (under CGST/SGST) or
(b) 100% of tax evaded or ITC availed of or passed on/distributed
irregularly, or the refund claimed fraudulently.
So, in the given case, penalty would be ` 3.60 crore (` 1.80 crore under
CGST and ` 1.80 crore under SGST)
(v) The amount of penalty leviable on a person, who aids or abets the
above offence would be ` 25,000 each under CGST and SGST.
So, in the given case, the total amount of penalty would be ` 50,000
(` 25,000 under CGST + ` 25,000 under SGST).
(b) (1) M/s Karim Associates would be required to file an appeal against the
order of Revisional Authority to the Appellate Tribunal (GSTAT).
(2) The amount of pre-deposit is computed as under-
(a) full amount of tax (` 20 lakh), interest (` 5 lakh) and penalty (` 20
lakh) admitted, i.e. ` 45 lakh and
(b) 20% of the remaining amount of tax in dispute [` 10 lakh (20% of
` 50 lakh)],
Thus, amount of pre-deposit would be ` 55 lakh (45+10).
(3) Interest on refund of pre-deposit shall be payable @ 9% per annum
from the date of payment (30-11-2024) till the date of refund of such
amount (14-03-2025), i.e. for 104 days, as under:
= ` 10,00,000 × 9% × 104/365
= ` 25643.84
` 25,644 (rounded off)]
(4) In this case, the appeal should be filed to Appellate Authority and the
amount of pre-deposit is computed as under-

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FINAL EXAMINATION: MAY 2025

(i) Full amount of tax, interest and penalty admitted, i.e., ` 45 lakh
(ii) 10% of the tax in dispute, i.e. ` 4 lakh (10% of ` 40 lakh)
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Therefore, amount of pre-deposit to be made is ` 49 lakh (` 45 lakh +

o m m
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4 lakh).
(c) If goods.remain in a warehouse beyond a period of 90 days from the date e
em the order permitting deposit in warehouse is made, interest is gla s
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a @ 15% on the amount of duty payable at the time of clearance ofa
on which
lthe
g payable
a of payment
goods, for the period from the expiry of the said 90 days till the date
of duty on the warehoused goods.
Further, the facts of the given case are similar to the landmark judgement
of Pratibha Processors v. UOI 1996 (88) ELT 12 by Supreme Court. In this
case, the Apex Court observed that:
(i) if the warehoused goods are cleared beyond specified time, interest is
payable on the amount of duty “payable or due” on the warehoused

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goods.

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(ii) In this case, on the date of clearance of the goods, no duty is payable.

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Thus, the goods are not exigible or eligible to duty at the time of
clearance.
g l a
a
In view of the above observations, the Supreme Court held that since the
principal amount for computing interest is the amount of duty payable on
clearance of goods, which is nil, interest payable is also nil. The interest is
necessarily linked to the duty payable and if no duty is payable, there will
be no liability of interest. The liability to pay interest is solely dependent
upon the exigibility or actual liability to pay duty. Thus, in case where the
liability to pay duty is nil, the interest will also be nil.

m
Thus, in view of the above, since in given case, Mr. Ankush has exported

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the goods from warehouse without payment of duty, no interest is payable
.co
c. o Question 6 m
by him.

em l aRuling (AAR) and se
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a to section 105
(a) State the power and procedure of Authority for Advance

ag Appellate Authority for Advance Ruling (AAAR) with reference
and 106 of the CGST Act, 2017. (6 Marks)
(b) Write short note on the 'Assessment of Non-filer of returns' under section 62
of the CGST Act, 2017. (4 Marks)
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INDIRECT TAX LAWS

OR
(b) Under what circumstances, special audit under section 66 of the CGST Act,
2017 may be directed? Is the special audit provision applicable even if the
accounts of the registered person have already been audited under any other
provisions of the GST law? (4 Marks)
(c) With reference to customs law, state the mandatory documents required for
(any two for each):
(i) Export of goods
(ii) Import of goods (4 Marks)
Answer
(a) Power and procedure of Authority of Advance Ruling (AAR) and Appellate
Authority of Advance Ruling (AAAR):
Both the AAR and AAAR are vested with the powers of a civil court under
Code of Civil Procedure, for:-
(a) discovery and inspection,
(b) enforcing the attendance of a person and examining him on oath,
(c) issuing commissions and compelling production of books of account
and other records.
Both the authorities are deemed to be a civil court for the purposes of
section 195 of the Code of Criminal Procedure, but NOT for the purpose of
Chapter XXVI of the Code of Criminal Procedure.
Any proceeding before the authority shall be deemed to be judicial
proceeding under the Indian Penal Code (IPC).
The AAR and AAAR also have the power to regulate their own procedure.
(b) Best Judgment Assessment
Assessment of non-filer of returns under section 62 of the CGST Act, 2017:
Notwithstanding anything to the contrary contained in section 73 or
section 74,
where a registered person−
• fails to furnish the monthly/quarterly return under section 39 or
• fails to furnish the final return under section 45

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FINAL EXAMINATION: MAY 2025

• even after service of a notice requiring him to furnish the return within a
period of 15 days,

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the proper officer may assess the tax liability of said person to the best of
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his judgement taking into account all the relevant material which is

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available or which he has gathered.
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The eassessment
l a
s order shall be issued within a period of 5 years from the
a the tax not paid relates.
lwhich a g
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date specified for furnishing of the annual return for the financial year to

a Where the registered person furnishes a valid return within 60 days of
service of the assessment order passed above, the said assessment order
shall be deemed to have been withdrawn but the liability for payment of
interest /late fee shall continue.
Otherwise, he may furnish the same within a further period of 60 days on
payment of an additional late fee of ` 100 for each day of delay beyond 60

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days of the service of the said assessment order. In such case, said order

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shall be deemed to have been withdrawn, but the liability to pay

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interest/late fee shall continue.
(b) Alternative Answer
l a s
a g in which special audit may be directed:
Following are the circumstances
If at any stage of scrutiny, inquiry, investigation or any other proceedings
before him, any officer not below the rank of Assistant Commissioner,
having regard to the nature and complexity of the case and the interest of
revenue, is of the opinion that –
• the value has not been correctly declared; or
• the credit availed is not within the normal limits,
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he may, with the prior approval of the Commissioner, issue a direction to

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the registered person by a communication in writing to get his records

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including books of account examined and audited by a chartered
la se
las accountant or a cost accountant as may be nominated by the
a g
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Commissioner.

a Yes, the provisions of special audit shall have effect even if the accounts of
the registered person have been audited under any other provisions of the
GST law.

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INDIRECT TAX LAWS

(c) (i) Mandatory documents for export of goods: The following
documents are mandatory-
1. Bill of Lading/Airway Bill/Lorry Receipt/ Railway Receipt/Postal
Receipt
2. Commercial Invoice cum Packing List (or separate invoice and
packing list)
3. Shipping Bill/Bill of Export/ Postal Bill of Export
(ii) Mandatory documents for import of goods: The following
documents are mandatory-
1. Bill of Lading/Airway Bill/Lorry Receipt/ Railway Receipt/Postal
Receipt
2. Commercial Invoice cum Packing List (or separate invoice and
packing list)
3. Bill of Entry

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