CA Final September 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

September 2025

Notes · Sample Papers · Previous Year Papers · Mock Tests

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PAPER – 5: INDIRECT TAX LAWS
m
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em Ltd.,(ISD)having a s
s only under GST. It has three units in different cities namely gl
1. M/s TRV its Head Office at Delhi, is registered as Input Service

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l'Jodhpur',
Distributor
'Indore' and 'Delhi' which are operational in the current financiala
a year.
It has to distribute total input tax credit amounting to ` 18,00,000 for the
month of January, 2025. Out of this amount, an invoice involving tax amount
of ` 3,00,000 pertains to Delhi unit only.
Total turnover of the units (excluding tax, if any) for the preceding financial
year are as follows:

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Particular Turnover (`)
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Turnover of Jodhpur unit (Registered) 10,00,000

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Turnover of Indore unit (Registered) 5,00,000
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a units
Total Turnover of all three 30,00,000

Note: Delhi unit is unregistered and provides only exempted services.
Amount of the credit to be distributed by M/s TRV Ltd. to each of the eligible
units will be:
(A) ` 6,00,000 to Jodhpur Unit, ` 3,00,000 to Indore Unit and ` 9,00,000 to
Delhi Unit.

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(B) ` 5,00,000 to Jodhpur Unit, ` 2,50,000 to Indore Unit and ` 10,50,000 to
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Delhi Unit.
(C) ` 10,00,000 to Jodhpur Unit, ` 5,00,000 to Indore Unit s
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and

las Unit.
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a Unit and Nil to
ag (D) ` 12,00,000 to Jodhpur Unit, ` 6,00,000 to Indore
Delhi Unit. (2 Marks)

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FINAL EXAMINATION: SEPTEMBER 2025

2. M/s Vinit Overseas Ltd. exported some goods (which are leviable to export
duty) to USA by air for an FOB price of US $ 3,00,000. Other relevant details
are as follows:

Particulars Date Rate of Assume Assume
duty rate of rate of
exchange exchange
notified by prescribed
CBIC by RBI
Presentation of 09.02.2025 10% 1 US$ = 84 1 US$ = 83
Shipping Bill
Let export order 11.02.2025 12% 1 US$ = 82 1 US$ = 81

The Export duty payable by M/s Vinit Overseas Ltd. will be:
(A) ` 30,24,000
(B) ` 29,52,000
(C) ` 29,88,000
(D) ` 24,60,000 (2 Marks)
3. Ajay and Co. imported certain goods into India by land mode and vehicle
importing the goods reached the land customs station on 12.01.2025 at 16:00
hrs. The timeline by which the person in charge of the vehicle should deliver
the Import Report to proper officer will be:
(A) at any time prior to arrival of the vehicle
(B) by 12.01.2025 - 20:00 hrs.
(C) by 13.01.2025 - 04:00 hrs.
(D) by 13.01.2025 - 16:00 hrs. (2 Marks)
Integrated case scenario - I
Mr. Suraj Rao of Bhilwara (Rajasthan) is a registered person under GST and is
filing monthly returns. His turnover for the financial year 2023-24 was
` 1.25 crores. He is engaged in the business of various goods and services. He
provided the details of following transactions/supplies undertaken by him during
the month of February 2025:

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(i) He executed a hedging contract for a commodity with NCDEX at a price of
` 1,100 per unit for 600 units. Original contract of purchase of the commodity
was made @ ` 1,000 per unit. On the date of expiry of future contract i.e.
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28th February 2025, the rate of commodity was ` 900 per unit. He squared
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off the contract without physical delivery of the commodity. He paid ` 2,000
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each at the time of entry and exit off the future contract.
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(ii) He provided repair and maintenance service related to generator to
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Mr. Rajendra on 05th February, 2025 involving both supply of goods being
spare parts and supply of service being labour charges. He disclosed the value
of goods at ` 10,800 and value of service at ` 25,000 separately in the invoice
issued in this regard.
Details of inward supplies during the month:
(i) Purchase of goods for ` 20,00,000 from a registered person (it includes
` 5,00,000 towards purchase of goods which are exempted).

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(ii) Purchased a truck for ` 8,00,000 for transportation of goods for delivery
to customers. No depreciation was claimed on GST portion.

s emportion)of office
(iii) Incurred ` 3,50,000 on renovation
expenses (excluding the aGST
building and debited the

gl head.
in the Profit and Loss account

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under repair and maintenance
(iv) Mr. Suraj Rao went to Surat, Gujarat for a business meeting which was
mandatory under a law for the time being in force in February 2025 and
stayed in a GST registered hotel named "A One Hotel" for few days. Room
accommodation charges for ` 50,000 (taxable value) was paid for the
stay.
Other information

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(i) Due to the accountant on leave, GSTR-3B for the month of
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February, 2025 could not be filed on due date prescribed i.e.

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20th March, 2025. It was filed on 31st March, 2025.

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g 2024. However,
(ii) Suraj Rao collected an advance payment of ` 2,00,000 plus applicable

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GST for provision of service in the month of September,
a no tax was deposited on such advance money to the Government even
though 5 months has elapsed.
All amounts given above are exclusive of taxes, wherever applicable.

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FINAL EXAMINATION: SEPTEMBER 2025

All supplies are intra-State except otherwise mentioned. All the supplies of
goods and services are chargeable to GST @ 9% each under CGST & SGST
and @ 18% under IGST except spare parts which are chargeable @ 2.5% each
under CGST & SGST and @ 5% under IGST.
Examine the above case scenario and based on the information given above,
choose the correct and most appropriate answer to Questions Nos. 4 to 9
below:
4. Value of outward supply of the contract executed with NCDEX will be:
(A) ` 6,00,000
(B) ` 5,40,000
(C) ` 6,60,000
(D) Nil (2 Marks)
5. The amount of input tax credit that can be availed for stay in 'A One Hotel',
Surat will be:
(A) ` 9,000-CGST & ` 9,000-SGST
(B) ` 9,000-IGST
(C) No input tax credit available
(D) ` 4,500-CGST & ` 4,500-SGST (2 Marks)
6. The amount of total eligible input tax credit (ITC) for the month of
February, 2025, will be:
(A) ` 4,86,000
(B) ` 4,77,000
(C) ` 4,23,000
(D) ` 4,14,000 (2 Marks)
7. The nature of supply and rate applicable for service provided to
Mr. Rajendra will be:
(A) mixed supply and chargeable at the highest rate.
(B) composite supply and chargeable at the rate of principal supply.

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(C) individual supply and chargeable at total of CGST and SGST at 5% for
supply of spare parts and at 18% for supply of service.

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(D) neither supply of goods nor supply of service. (2 Marks)
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8. The amount of late fee to be paid while filing GSTR-3B for the month

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February, 2025 under the GST Law (Total of CGST and SGST) will be:

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l(B) ` 500 ag
(A) ` 2,000

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(C) ` 550
(D) ` 1,100 (2 Marks)
9. The amount of penalty which may be levied under section 122 of the CGST
Act, 2017 for failure to deposit the tax on advance payment received (Total
of CGST and SGST) will be:
(A) ` 50,000
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(B) ` 36,000
(C) ` 20,000
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(D) ` 25,000
a g (2 Marks)
Integrated case scenario - II
M/s Jose & Co. (Firm) is a partnership firm registered under GST regular scheme
in the State of Kerala. Firm is an original equipment manufacturer of motor
pumps and engaged in supply of related goods and services all over India and
having its agents network also.

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During the month of August 2024, the firm made following outward transactions:

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(i) Supplied moulds and dies owned by it to unrelated component
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e free of cost;
manufacturers free of cost; market value of the same was ` 65,000.

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las (ii) Provided free training on e-invoice and e-way bill to all
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its agents

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value of such training was 1,00,000.
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`
Provided the following services during the month of September 2024, and
received payment subject to deduction of GST TDS, as applicable:

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FINAL EXAMINATION: SEPTEMBER 2025

(a) Water supply services provided to Kerala Water Resources Management
Board, a Government Authority in which 85% of control was held by Kerala
Government; total consideration was ` 2,50,000
(b) Composite supply of goods and services provided to Kerala Government, in
respect of an activity entrusted to a municipality under Article 243W of the
Constitution, in which value of service constituted 25% of the value of said
composite supply; total consideration was ` 3,00,000
(c) Conducted training program for rain water harvesting for a consideration of
` 4,00,000. This service was provided to Central Government and 76% of the
total expenditure of this program was borne by the Central Government.
During the month of October 2024, the firm made a supply to its related concern
valued under invoice at ` 5,00,000; whereas the market value was ` 8,00,000 and
the recipient was eligible for full ITC. Value of like kind of supply was ` 7,00,000.
Recipient intended to consume the supply for production purposes.
The firm entered into a contract for service of 100 pump motors on 15.11.2024
for an amount of ` 5,00,000. Deadline for completing the contract was
15.01.2025. However, due to some misunderstanding the contract was terminated
on 20.12.2024 when only 50% of the work was completed.
The firm received a show-cause notice under section 74A of the CGST Act, 2017
on 31.01.2025 for short payment tax due to clerical error. IGST demanded in the
said notice was ` 20,000. Since the owner was hospitalized, the payment for
demand was made belatedly on 25.03.2025 for tax and interest, but before any
order was passed.

All the amounts given above are exclusive of taxes wherever applicable. All the
supply referred above is intra-State unless specified otherwise.
Based on the information given above, choose the correct and most appropriate
answer to Questions Nos. 10 to 15 below:
10. In respect of outward transactions made during the month of August 2024,
which of the following value will be treated as supply?

(A) ` 65,000

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(B) ` 1,00,000
(C) ` 1,65,000
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(D) Nil
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11. In respect of services provided during the month of September 2024, the value

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of exempt supply will be:

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l(A) ` 2,50,000
a (B) ` 3,00,000
(C) ` 4,00,000

(D) ` 7,00,000 (2 Marks)
12. The amount of GST TDS that will be deducted each under CGST and SGST
against the supply made during the month of September 2024 will be:

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(A) ` 7,000

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(B) ` 5,500
(C) ` 3,000
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(D) ` 2,500 a g (2 Marks)
13. The value of supply made to related concern during the month of October
2024 will be:

(A) ` 5,00,000
(B) ` 6,30,000
(C) ` 7,00,000

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m (D) ` 8,00,000
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.which was (2 Marks)

c. o 14. Due date for issue of invoice against pump motors service contract
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terminated on 20.12.2024 will be:

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(A) 15.12.2024
(B) 20.12.2024
(C) 20.01.2025

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FINAL EXAMINATION: SEPTEMBER 2025

(D) 15.02.2025 (2 Marks)
15. Penalty which could be levied in respect of SCN issued under section 74A will
be:
(A) Nil
(B) ` 2,000
(C) ` 10,000
(D) ` 20,000 (2 Marks)
Answer Key

MCQ No. Correct Option
1. B
2. A
3. C
4. D
5. C
6. B
7. C
8. C
9. B
10. D
11. C
12. C
13. A
14. B
15 A

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Part II - Descriptive Questions
(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 by the Finance (No. 2) Act, 2024 including significant notifications gla
(iii) All questions should be answered on the basis of position of (i) GST law as
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land
amended

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a effective up to 28.02.2025 and (ii) Customs law as amended by the Finance
(No. 2) Act, 2024 including significant notifications and circulars and other
legislative amendments made, which have become effective up to
28.02.2025.
Question 1
Sakura Impex Limited (SIL), a registered supplier in the State of Andhra Pradesh,
provides the following details of transactions undertaken in the month of January
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2025:
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Sl. Particulars Amount in `
No.
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Outward transactions:
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(i) Received an order for printing books from a publisher 7,00,000
who owned the content. Paper, ink and printing
activities were undertaken by SIL and books were
supplied as ordered.
(ii) Received rent from a GST registered limited company 1,20,000
for use of SIL’s commercial building at Andhra Pradesh,
used for the purpose of residential quarters for the

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employees of the tenant company.
m (iii) Provided printing related consultancy services to m20,00,000
.
c. o M/s. Tay Hung & Co, a resident of South Korea, for the e
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l as new market potential for South Korea, for the new
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market potential for its lasts Hi-teach printing
machine. Market study involving demo of machine
working was conducted in Japan, Indonesia and State
of Andhra Pradesh, India. Out of consideration of

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FINAL EXAMINATION: SEPTEMBER 2025

` 20 lakhs, ` 14 lakhs were apportioned to study done
abroad.
(iv) Provided a corporate guarantee to a related person 70,000
located in India, who was not eligible for full ITC.
(v) Received an advance for supply of services related to 1,00,000
footwear sector.
(vi) Supplied an old machinery used in manufacture of 4,00,000
taxable goods to Mr. Prasadh of Karnataka on the
instruction of Mr. Subba Rao registered in Vizag,
Andhra Pradesh.
Inward transactions:
(vii) Paid consideration to Andhra Pradesh Government 60,000
towards grant of certification relating to safety of
workers at the workplace as required by the local laws.

The following additional information be taken into consideration:
(a) Wherever details for determination of place of supply are not given in the
question, it shall be taken as inter-State transaction.
(b) Out of total consideration received for printing of books, ` 3,00,000 was
related to paper and ink.
(c) SIL had filed Letter of Undertaking for zero-rated supplies to make exports
without payment of tax.
(d) Corporate guarantee was given for grant of term loan by a PSU Bank for
solar panel installation amounting to ` 20 Lakhs with a term of 5 years. The
related party availed only ` 15 lakhs since it could manage the balance funds
through its internal sources.
(e) Supply of service as well as invoice for footwear sector supply was made on
14th February 2025. There was a change in rate of tax from 12% (by a
notification issued in January 2025) to 18%, with effect from 1st February
2025.
(f) SIL had purchased the machine referred in Sl. No (vi) above in the month of
January 2024 at a cost of ` 6,00,000 excluding GST. Since invoice was also
issued in January 2024, ITC was eligible and claimed during the same month.

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(g) Except as otherwise stated, rates of CGST, SGST and IGST are 6%, 6% and
12% respectively for paper and ink and 9%, 9% and 18% respectively for all
other inward and outward supply of goods and/or services.
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(h) All the amounts given above are exclusive of taxes wherever applicable.

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All the conditions applicable for availing ITC have been complied with,
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subject to the information given above and the said ITC were exclusively used

g the information given above, you are required to compute the net GST
for taxable outward supply only.
aFrom
liability payable in cash (CGST, SGST or IGST as the case may be) for the month
of January 2025. Brief reason for the treatment of each item should form part of
the answer. (14 Marks)
Answer
Computation of minimum net GST liability payable in cash for
the month of January 2025
m CGST
S. Particulars
. c(`)o
Value SGST IGST
No.
m
e7,00,000
(`) (`) (`)
(i)
l
Order for printing of books
a s 1,26,000 1

agthe
[Printing of books with only [7,00,000
content being supplied by x 18%]
publisher is a composite
supply wherein supply of
printing service is the
principal supply.]
(ii) Renting of commercial 1,20,000 10,800 10,800 -
building [1,20,000 [1,20,000

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[Since renting of only x 9%] x 9%]

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residential dwelling for use as
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residence is exempt, renting

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of commercial buildings for

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use as residence is not exempt

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and is thus, taxable. Further,
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ag tax is payable under forward
charge and not under reverse

1
It is specifically mentioned in the question that wherever details of place of supply are not
given in the question, it shall be treated as inter-State transaction.

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FINAL EXAMINATION: SEPTEMBER 2025

charge since supplier - SIL – is
registered.
It is an intra-State supply
since place of supply of
services in relation to
immovable property is the
location of such property, i.e.
Andhra Pradesh.]
(iii) Consultancy services 20,00,000 1,80,000 1,80,000 -
provided to a resident of [20,00,000 [20,00,000
South Korea x 9%] x 9%]
[Intra-State supply since
where services supplied in
respect of goods required to
be made physically available
by the recipient to supplier
are supplied at more than one
location, including a location
in the taxable territory, place
of supply is the location in the
taxable territory, i.e., Andhra
Pradesh.]
(iv) Corporate guarantee on 1,00,000 18,000 2
behalf of a related person in [1,00,000
India x 18%]
[Value of supply of corporate
guarantee service for 5 years
is higher of the following:-
(a) 1% per annum of amount
of such guarantee
offered [and not amount
of loan actually
disbursed to the
recipient] multiplied by 5
years [1% x ` 20,00,000 x
5 years = ` 1,00,000]

2
It is specifically mentioned in the question that wherever details of place of supply are not
given in the question, it shall be treated as inter-State transaction.

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INDIRECT TAX LAWS

or
(b) Actual consideration i.e.
` 70,000
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i.e. ` 1,00,000.]
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(v)
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Supply of services related to - - -
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[Inecase of change in rate of
footwear sector
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ag invoice
tax, if supply and issue of
(14 February, 2025)
th

are after the change in such
rate (1st February, 2025),
payment is received before
change in rate, date of issue
of invoice [14th February,
2025] is the time of supply.
Therefore, advance is not

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taxable in the month of
January, 2025.]
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[Intra-State supply since in se
(vi) Supply of old machinery
m 40,500 40,500 -

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a
case of “Bill to Ship to” supply,
where goods are delivered by
the supplier to the recipient at
the instruction of a third
person, place of supply is
principal place of business of
third person i.e. Andhra
Pradesh.
Further, refer working note 2

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below for computation of

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amount to be paid on supply
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of old machinery on which ITC

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has been taken.]

las Total output tax liability 2,31,300
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2,31,300 1,44,000

ag Less: Input tax credit [Refer
working note 1 below.]
- -

Minimum net GST payable 2,31,300 2,31,300 1,44,000
in cash

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FINAL EXAMINATION: SEPTEMBER 2025

Working note 1- Computation of eligible ITC available for set off

S. Particulars Amount CGST SGST IGST
No. (`) (`) (`) (`)
(vii) Grant of certification relating to - - -
safety of workers
[Services provided by State
Government by way of
certification relating to safety of
workers required under any law
is exempt under GST. Since no
tax is payable, no ITC is available
on the same.]
Total ITC available - - -

Working note 2- Computation of amount to be paid on sale of old
machinery

Particulars Amount (`) Amount (`)
If capital goods/plant and machinery on which ITC has been taken are
supplied by a registered person, higher of the following amounts is to be
paid:

(a) ITC taken on machinery (` 6,00,000 x 18%) 1,08,000 40,500**
Less: 5% per quarter or part thereof from the
date of issue of invoice for machinery
[(` 6,00,000 x 18% x 5% x 5 quarters)] (27,000)
81,000
OR OR
(b) Tax on transaction value [` 4,00,000 x 9%] 36,000
Amount to be paid (each under CGST & 40,500
SGST)
**` 40,500 [each under CGST & SGST (` 81,000/2)]

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Question 2
(a) Mr. Viswas is registered under GST in the State of Karnataka. He is engaged
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in providing multiple types of services and provides the following information
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related to his business for the month of February 2025:

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e Provided security services to various concerns (Out
Particulars Amount in `
l a s
a s
l of ` 5,00,000, services provided to unregistered
(a) 5,00,000
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ag persons were ` 1,00,000)
(b) Provided services for organizing an entertainment 15,00,000
event to Wonderful Fims Limited, registered in the
State of Telangana, for launch of their new movie.
Event was held in the State of Karnataka.
(c) Provided training services in a program organized 2,00,000
by National Skill Development Corporation, even
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through Mr. Viswas was a not a training partner.
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(d) Availed tax consultation services form his CA 30,000
(Registered)

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(e) Availed various input services in relation to
organizing entertainment event as in point (b)
4,00,000

above form registered persons.
(f) Sold his old godown used for the purposes of his 20,00,000
business (stamp value was ` 14,00,000)

Following additional information is also provided by Mr. Viswas:
(i) Wherever details for determination of place of supply are not given in

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the question, it shall be taken as intra-State transaction.

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(ii) Imported consultation services in the course of his business from his

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father-in-law in Australia, without a consideration and valued at

s em ` 1,20,000.
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(iii) All the amounts given above are exclusive of tax, wherever applicable.
a (iv) Assume the rate of tax for CGST/SGST/IGST as 9%/9%/18% respectively
for both inward and outward supplies.

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FINAL EXAMINATION: SEPTEMBER 2025

(v) Subject to the information given above, Mr. Viswas fulfilled all the
conditions required for availing ITC.
You are required to determine the value of taxable supply and net GST
liability payable in cash by Mr. Viswas for the month of February 2025.
Reason for treatment of each items needs to be given in the answer.
(10 Marks)
(b) ABT Ltd. provided the following details of the one of its recent transaction of
import of a machine through vessel from Japan in the month of January,
2025:

S. Particulars Amount in
No. Japanese Yen
(¥)
(i) Cost upto port of exportation incurred by 5,00,000
exporter
(ii) Loading charges at the port of exportation 15,000
(iii) Freight charges from port of export to port of 1,15,000
import in India
(iv) Actual insurance charge paid to the place of 20,000
importation

Following additional amount was also paid by ABT Ltd.:

S. Particulars Amount in
No Indian (`)
(i) Designing charges paid to consultancy firm in 6,00,000
New Delhi, which was necessary for such
machine
(ii) Commission paid (not buying commission) to 1,20,000
local agent of exporter

Other Information:

1 Bill of entry: Dated 20.01.2025
On that day:

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(a) Basic custom duty (BCD) rate was 10%
(b) Exchange rate as notified by CBIC

m
c. o
1 Yen = ` 0.65

o m m
c
(c) The inter – bank rate was 1 Yen = ` 0.67

m . inward: Dated 25.01.2025 s e
e a
2 Entry
s l
l a ag
On that day:

ag (a) Basic custom duty (BCD) rate was 15%
(b) Exchange rate as notified by CBIC
1 Yen = ` 0.66
(c) The inter-bank rate was 1 Yen = ` 0.68

From the above particulars, company wants you to calculate the assessable
value and basic custom duty (BCD) payable with appropriate working notes
under the Customs Act, 1962. (4 Marks)

o m
c
Answer

m . and net GST liability payable
e
(a) Computation of value of taxable supply
in cash by Mr. Vishwas
a s
lAmount
S. Particulars
No. a g (`)
CGST SGST IGST
(`) (`) (`)
(a) Security services to 1,00,000 9,000 3 9,000 -
unregistered [` 1,00,000 [` 1,00,000
persons x 9%] x 9%]
[On ` 1,00,000, tax is
payable under
forward charge and

m
co
not under reverse

m .
charge since

c. o security services are

se
m
em la
provided to

las unregistered

a g
g
persons.]

a
3
It is specifically mentioned in the question that wherever details of place of supply are not
given in the question, it shall be treated as intra-State transaction.

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FINAL EXAMINATION: SEPTEMBER 2025

Security services to - - -
registered persons
[On ` 4,00,000, tax is
payable under
reverse charge by
the recipient since
security services are
provided by a non-
body corporate or
by an individual to
registered persons.]
(b) Organisation of 15,00,000 2,70,000
entertainment event [` 15,00,000
[Inter-State supply, x 18%]
since place of supply
of services provided
by way of
organisation of
entertainment event
to a registered
recipient is the
location of recipient,
i.e. Telangana.]
(c) Training services in 2,00,000 18,000 4 18,000 -
a program [` 2,00,000 [` 2,00,000
organized by x 9%] x 9%]
National Skill
Development
Corporation (NSDC)
[Taxable, since
services provided by
only a training
partner approved by
NSDC, in relation to
the National Skill
Development

4
It is specifically mentioned in the question that wherever details of place of supply are not
given in the question, it shall be treated as intra-State transaction.

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Programme are
exempt.]

m
c. o
(d) Sale of old godown - - - -

m
co
[Since sale of

.
building (godown)
em
e m
is neither supply of
l a s
l a s goods nor supply of

ag
ag
services as it is
covered in Schedule
III of the CGST Act,
2017. Thus, sale of
godown is not a
supply
(e) Import of - - - -
consultation
services from father-

m
in law
[Since father-in-law
. co
em
is not a related
person, import of

l a s
g
services from him,
though in the course
of business shall not a
be deemed as
supply since it is
made without
consideration.]
Value of taxable 22,00,000
supply 5

m
Total output tax 27,000 27,000 2,70,000

m
Less: Input tax credit (27,000) (27,000)
c o
. CGST
(10,350)

c. o [Refer working note CGST SGST

s
m
e (10,350)
em gla
below.]

las
Since the question simply mentions the value of taxable supply, it a
ag 5
includes (i) value on which
tax is payable by Mr. Vishwas as well as (ii) value on which tax is payable by the recipient of
supply. However, alternatively, it is also possible to compute value of supply as only the value
on which tax is payable by Mr. Vishwas only and not value on which tax is payable by the
recipient of supply.

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FINAL EXAMINATION: SEPTEMBER 2025

[ITC of CGST is SGST
being used to pay
CGST liability first
and then remaining
for payment of IGST.
ITC of SGST is being
used to pay SGST
liability first and
then remaining for
payment of IGST.]
Minimum net GST Nil Nil 2,49,300
payable in cash

Working note - Computation of eligible ITC available for set off
Particulars Value CGST SGST IGST
(`) (`) (`) (`)
Input services availed in 4,00,000 36,000 6
36,000
relation to organizing [4,00,000 [4,00,000
entertainment event × 9%] × 9%]
[Since used exclusively for
taxable supply, ITC is fully
available.]
Tax consultation services 30,000 2,700 2,700
received from CA [` 30,000 [` 30,000
[ITC is available since used x 9%] x 9%]
in course or furtherance of
business.
Further, it is commonly used
for making taxable and
exempt supplies.]
Less: Common credit (1,350) (1,350)
attributable to exempt
supplies
= Common credit x (Exempt
turnover / Total turnover)

6
It is specifically mentioned in the question that wherever details of place of supply are not
given in the question, it shall be treated as intra-State transaction.

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= ` 2,700 x ` 18,00,000 /
` 36,00,000

m
Exempt turnover =
` 18,00,000
m c. o
.co em
Total turnover =

m
` 36,00,000
e l a s
a s
[Refer Notes 1 and 2 below]

l ITC eligible for set-off ag
g Total
a Note 1:
37,350 37,350

Exempt turnover includes-
(i) security services
taxable under reverse
charge (` 4,00,000),
and
(ii) sale of godown

m
[` 14,00,000

co
[value adopted for
.
em
paying stamp duty]

s
= ` 18,00,000
Note 2:
g l a
Total turnover
= ` (5,00,000 + 15,00,000 +
a
2,00,000 + 14,00,000)
= ` 36,00,000

(b) Computation of assessable value and basic customs duty (BCD)

Particulars Amount in
Japanese Yen

m
Cost upto port of exportation om
c. 15,000
5,00,000

c. o Add: Loading charges at the port of exportation
se
m
s em [Includible in assessable value]
g la
gla Total
a 5,15,000

a Rate of exchange
[Converted @ ` 0.65 per Japanese Yen
`0.65

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FINAL EXAMINATION: SEPTEMBER 2025

Rate of exchange notified by CBIC as prevalent on the
date of filing of bill of entry is the applicable rate.]
Particulars Amount in (₹)
Total (`) 3,34,750
Add: Commission paid to local agent of exporter 1,20,000
[Includible in assessable value since it’s not a buying
commission.]
FOB value as per customs 4,54,750
Add: Freight charges from port of export to port of 74,750
import in India
[1,15,000 × 0.65]
[Includible in assessable value]
Add: Actual Insurance charges [20,000 × 0.65] 13,000
[Includible in assessable value]
Assessable Value 5,42,500
Add: Basic customs duty @ 15% of
` 5,42,500 81,375
[Rate of duty would be the rate as prevalent on the
date of filing of bill of entry or entry inwards,
whichever is later.]

Note-Design and engineering work is includible in the assessable value
only when the same is undertaken elsewhere than in India and necessary
for the production of the imported goods. Thus, design and engineering
work in New Delhi (or India) is not includible in assessable value.
Question 3
(a) Examine the following independent scenarios and answer the questions given
thereon:
(i) M/s Sea Foods Limited, registered in the State of Tamilnadu, made a
supply of goods to M/s Eat Well Limited, registered in State of
Maharashtra. The supply was made in the territorial waters, where
appropriate baseline was situated within 4 nautical miles from the State

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of Kerala and 12 nautical miles from the State of Tamilnadu. Determine
the place of supply with proper reasoning.

m
c. o
(ii) M/s Speed Logistics gave on hire its tipper lorries to M/s ABC, a mining
m
co
firm for transporting minerals from mining pit head to railway siding.

. em
s
Vehicle was given with driver but fuel cost was to be borne by the

em l a
s
recipient. M/s Speed Logistics considered this transaction as exempt

l a ag
supply since it was covered under the entry of transportation of goods

ag
by road except by GTA in the exemption notification. Examine the
correctness of this treatment. (5 Marks)
(b) M/s Murty and Sons Ltd (MSL) is dealing in property business and is registered
under GST since 2021 in Bengaluru, Karnataka having turnover of ` 2 crores
in Financial Year 2023-24. MSL has taken legal service from Mr. Sachin, a
junior advocate on 10th December, 2024. MSL paid ` 80,000 for this service
on 18th February, 2025 through NEFT and the whole transaction was entered
in the books on this day only.
m
. co
In this case you are required to determine time of supply of service provided

em
by Mr. Sachin to MSL in the following independent situations for the purpose

l a s
of payment of tax under GST law along with explanations for the same:

S.
No.
If Mr. Sachin is:
a g Invoice issued by: Invoice issued on:
1. An unregistered person M/s Murty and 8th January,2025
Sons
2. An unregistered person M/s Murty and 13th January,2025
Sons
3. An unregistered person No invoice Issued No invoice Issued
4. A registered person Mr. Sachin
o m 6th January, 2025
c
m Ignore the panel provision for late or non-issuance of invoices. m(5. Marks)
c. o (c) M/s DMP Overseas Ltd. imports goods from USA and intends s e to avail the
em l a 25(1) of the
las g
asince it does not have
benefit of an exemption notification issued under section

ag Customs Act, 1962 with regard to said goods. However,
a manufacturing facility at all, it needs to send the goods so imported for job
work to a third party job worker Mr. Raju.

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FINAL EXAMINATION: SEPTEMBER 2025

The accountant of M/s DMP Overseas Ltd. advised it that as per the Customs
(Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules,
2022, M/s DMP Overseas Ltd. is not permitted to send such goods to third
party for job work.
You are required to advise M/s DMP Overseas Ltd. on the said issue elaborating
the relevant legal provisions under the customs law. (4 Marks)
Answer
(a) (i) Where the place of supply is in the territorial waters, the place of supply
shall be deemed to be in the coastal State or Union territory where the
nearest point of the appropriate baseline is located.
Since in the given case, appropriate baseline is located within 4 nautical
miles from Kerala and 12 nautical miles from Tamil Nadu, place of
supply is Kerala.
(ii) In case of hiring of vehicle, the person taking vehicle on rent defines
how and when the vehicles will be operated, determines schedules,
routes and other operational considerations. Therefore, the person
giving the vehicles on rent with operator for a specified period of time
cannot be considered to be supplying the service by way of transport
of goods by road; he is supplying service of renting of transport
vehicles with operator, which is not exempt.
Thus, in the given case, treatment done by M/s Speed Logistics is not
correct since services provided by M/s Speed Logistics are not exempt;
they are taxable.
(b) Tax on legal services provided by individual advocate - Mr. Sachin - to
business entity -MSL - is payable under reverse charge.
The time of supply of service on which GST is payable on reverse charge
basis is earlier of:
(a) Date of payment, as entered in the books of account of the recipient
or the date on which the payment is debited in his bank account,
whichever is earlier or
(b) Date immediately following 60 days (or 61st day) from the date of issue
of invoice by the supplier, in cases where invoice is to be issued by the
supplier or

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(c) Date of issue of invoice by the recipient in cases where invoice is to be
issued by the recipient

m
c. o
However, where it is not possible to determine the time of supply under
m
co
clause (a) or clause (b) or clause (c), the time of supply shall be the date

. e m
s
of entry in the books of account of the recipient of supply.
m
ewould be: l a
l a s In accordance with above provisions, time of supply in the given cases
a g
g
a 1. 8 January, 2025
th

Since supplier is unregistered, recipient - MSL issued the self-
invoice. Thus, time of supply will be date of issue of invoice since
it is earlier than date of payment (18th February)
2. 13th January, 2025
Since supplier is unregistered, MSL issued the self-invoice. Thus,

m
time of supply will be date of issue of invoice since it is earlier than

c o
. to take following view:
date of payment (18th February).

m
e MSL issued the self-invoice. Time
Alternatively, it is also possible

a s
l of date of issue of invoice (13 January) or
Since supplier is unregistered,

a g
of supply will be earlier
last date on which invoice should have been issued, i.e., 30 day
th

th

of receipt of service, i.e. 9th January). Thus, time of supply is
9th January, 2025
3. 18th February, 2025
Since supplier is unregistered and MSL has not issued self-invoice
at all, hence it is not possible to determine the time of supply from

m
the normal provisions, so the time of supply will be the date of

m .co
entry in books of accounts of the recipient of supply.

c. o 4. 18th February, 2025
se
m
s em Since it is earlier of:
g la
gla (i) the date of payment (18th February)
a
a Or
(ii) 61st day (or date immediately following 60 days) from the date
of issue of invoice by the supplier (8th March).

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FINAL EXAMINATION: SEPTEMBER 2025

(c) The advice of the accountant is not correct. The importer- M/s DMP
Overseas Ltd. is permitted to send the imported goods to a job worker
provided following conditions as laid down by the Customs (Import of
Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022
are being fulfilled:
1. The importer shall maintain a record of goods sent for job work during
the month and mention the same in the quarterly statement.
2. The goods shall be sent to job worker under invoice or through an e-
way bill, mentioning their description and quantity.
3. The maximum period for which the goods can be sent to the job worker
is one year from the date of invoice/ e-way bill.
4. In case the importer is unable to establish that the goods sent for job
work have been used as per the specified particulars, the jurisdictional
customs officer shall take necessary action against the importer.
Conditions for job worker
1. Job worker shall maintain account of goods received, manufacturing
process undertaken and waste generated, if any.
2. Job worker shall produce account details before jurisdictional customs
officer on demand.
3. Job worker shall, after completion of job work return processed goods
to importer or send them to another job worker as directed by importer
for remaining process, under invoice or e-way bill.
Question 4
(a) M/s Seagull and Co. filed the GST return under section 39 for the month of
December 2024 with a delay of 73 days. Total tax paid in the said return was
` 60,000. Out of which ` 40,000 was set off from e-credit ledger and the
balance ` 20,000 was set off from e-cash ledger. E-cash ledger had a balance
of ` 6,000 since 1st December 2024.
You are required to determine with explanations:
(i) Interest, if any, payable under section 50(1) of the CGST Act, 2017 in
respect of delayed payment of tax by Seagull and Co.

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(ii) Suppose if, all facts remaining the same, except that the said return was
filed after the issue of notice under section 74A, determine the interest,
if any, payable under section 50(1) of the CGST Act, 2017. (5 Marks)
m
m c. o
co
(b) Comment and discuss with explanations the validity of the below statements

. e m
s
with reference to provisions related to registration under GST law:
m
(i) e"There is no need of registration at all if a person is engaged in supply
l a
a s services (intra-State and/or inter-State) only through an E-Commerce g
l Operator (ECO)." a
ag
(ii) "There is no requirement of the physical verification of business
premises."
(iii) "There is no requirement to provide the details of bank account at the
time of application of registration." (5 Marks)
(c) Ms. Veronica, a UK Citizen, aged 17 years, visited India on tourist visa on
01.02.2025. She brought with her the following items on her visit,

o m
(A) Travel souvenir worth ` 60,000
. c
e m
insperson worth ` 75,000
(B) Laptop computer valued ` 40,000
(C) Other articles carried on a
l
ag Rules, 2016, determine the value of baggage
With reference to the Baggage
liable to customs duty. (4 Marks)
Answer
(a) (i) The interest on delayed payment under section 50 payable in respect
of supplies made and declared in the return for a tax period furnished
after the due date is levied only on that portion of tax which is paid by

m
debiting electronic cash ledger.

m Further, any amount credited to Electronic Cash Ledger on/before the
.co
c. o due date of return and is later used/debited to pay tax while filing
se
m
em la
return after due date will not be considered (i.e. interest not to be paid

las g
on that amount) while calculating above interest provided said amount
a
ag remained in the ledger from the due date until its debit while filing
return.
Accordingly, in the given case, interest payable under section 50 is:
on ` 14,000 (` 60,000 – ` 40,000 – ` 6,000)
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FINAL EXAMINATION: SEPTEMBER 2025

Applicable rate of interest will be 18%
Number of days of delay = 73 days
= ` 14000 × 18% × 73/365
= ` 504 (` 252 CGST + ` 252 SGST)
(ii) In case where return is filed after issue of notice under section 74A, the
interest would be payable on total amount of tax of ` 60,000 that is
paid from electronic cash ledger as well as from electronic credit
ledger.
However, amount lying in e-cash ledger on or before the due date of
filing said return i.e. ` 6,000 shall not be considered while calculating
such interest (i.e. interest not to be paid on that amount).
Accordingly, in the given case, interest payable under section 50 is:
on ` 54,000 (` 60,000 – ` 6,000)
= 54000 × 18% × 73 /365
= ` 1,944 (` 972 CGST and ` 972 SGST)
(b) (i) The statement is partially valid/not valid.
Person who is engaged in supply of services only through ECO who is
required to collect TCS under section 52 is required to obtain
registration compulsorily.
Exceptions:
(i) Such persons having an aggregate turnover not exceeding ` 20
lakh (` 10 lakh in case of specified Special Category States) in a FY,
are exempt from obtaining compulsory registration.
(ii) Persons making notified supplies through an ECO.
(ii) The statement is partially valid/not valid
Physical verification of business premises for grant of registration
under GST law is not required.
However, if the proper officer is satisfied that physical verification is
necessary after grant of registration, he may get verification of place
of business done.

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In case of failure to undergo/opt for aadhaar authentication, where
identified on the common portal based on data analysis and risk
parameters, or where proper officer deems it necessary, physical
m
m
verification is required to be conducted before the grant of registration.
c. o
.co
After verification, proper officer shall upload verification report along
s em
em
with other documents, including photographs, in the prescribed form
l a
l a s within specified time.
a g
ag (iii) After
The statement is valid/partially valid.
the grant of registration, the registered person is allowed to
furnish his bank account details:
(i) within 30 days from date of grant of registration,
or
(ii) before furnishing

m
(a) the details of outward supplies under section 37
OR c. o
(b) GSTR-1/using IFF
s em
whichever is earlier.
g la
a is not available to those granted registration
However, this relaxation
as TDS deductor/TCS collector or suo-motu registration.
(c) Computation of value of baggage liable to customs duty

Particulars `
Travel Souvenir Nil
[Allowed to be brought free of duty.]

m
c. o
Laptop computer 40,000
m
c. o m
[Not exempt, since one laptop computer is exempt only

em se 75,000
when imported into India by a passenger ≥ 18 years of age.]

s Other articles carried on in person
g la
gla Baggage that can be accommodated in GFA a 1,15,000
a Less: General Duty free baggage allowance in case of tourist
of foreign origin (15,000)
Value of baggage liable to customs duty 1,00,000

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FINAL EXAMINATION: SEPTEMBER 2025

Question 5
(a) M/s Balaji Electronics Pvt. Ltd. of Chennai, Tamilnadu, handed over certain
goods to transporter M/s Super Fast Roadways on 15th December, 2024 to be
delivered to M/s Anna Electronics in Vellore, Tamilnadu amounting to
` 3,00,000. The said goods were chargeable to tax @ 18% GST (9% CGST &
9% SGST). The proper officer intercepted the vehicle under section 68 of the
CGST Act, in transit and seized the goods on 16th December, 2024.
No one came forward to release the consignment till 31st December, 2024, so
the proper officer issued a penalty order under section 129(3) of the CGST
Act. M/s Balaji Electronics Pvt. Ltd. did not admit to the entire penalty amount
specified in the order and hence filed an appeal to the Appellate Authority
(AA) against the said order.
From the above information given above, calculate:
(i) The amount of pre-deposit required to be deposited for filing appeal to
AA under section 107(6) of the CGST Act against the order passed under
section 129(3) of the CGST Act.
(ii) The amount to be paid by M/s Super Fast Roadways for release of its
conveyance under section 129 of the CGST Act.
Your answer should include explanations with necessary provisions in brief.
(5 Marks)
(b) M/s True and Co. (Firm) filed its GST return for the month of January 2025
and in the said return, tax was short paid inadvertently due to a mistake
committed in filing the return. Due date for filing of annual return for the
financial year 2024-25 is 31.12.2025. The firm asks your opinion with brief
legal provisions on the following issues:
(i) What is the latest date by which show cause notice (SCN) under section
74A can be issued by the proper officer in the above situation?
(ii) What is the timeline to pass order for the above said SCN?
(iii) What would be your answer for point (i) and (ii) in case the reason of
short payment was as a result of wilful-misstatement?
Assume that no extension of time will be provided by the appropriate
authority for passing the order in the above situation. (5 Marks)

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(c) Section 26A of the Customs Act, 1962 provides that the import duty paid on
clearance of imported goods for home consumption capable of being easily
identified shall be refunded to the person by whom or on whose behalf such
m
m
duty was paid subject to the fulfillment of certain conditions. You are required
c. o
c. o
to list those conditions with explanation.
e m
(4 Marks)
s
Answer m
s e g l a
g la payable
(a) (i) Since no one came forward to release the consignment, penaltya
a under section 129(3) is as follows:
(a) 50% of value of goods [` 1,50,000 (` 3,00,000 × 50%)]
or
(b) 200% of tax payable on goods [` 54,000 (` 3,00,000 × 9% × 200%)]
whichever is higher,
i.e. penalty will be:

o m
c
` 3,00,000 (` 1,50,000 each under CGST and SGST)

m . for filing an appeal to AA against
e 129(3) is as follows:
Pre-deposit required to be deposited

a s
an order passed under section

a gl section 129(3) [as above]
= 25% of the penalty under
= 25% of ` 1,50,000
i.e. pre-deposit will be :
= `, 75,000 (` 37,500 each under CGST and SGST)
(ii) Amount to be paid by M/s Super Fast Roadways for release of its
conveyance under section 129 is as follows:

m
(a) Penalty under section 129(3) (as computed in above) [` 1,50,000]

m or
.co
c. o (b) ` 1,00,000
se
m
s em whichever is less,
g la
gla a
a
i.e., pre-deposit will be :
` 2,00,000 (` 1,00,000 each under CGST and SGST)
(b) (i) The proper officer can issue a show cause notice within 42 months from
the due date of furnishing the annual return (31.12.2025) for relevant

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FINAL EXAMINATION: SEPTEMBER 2025

financial year to which short payment relates to, i.e. upto 30.06.2029 in
the given case.
(ii) The time-limit to pass the order for the above SCN is upto 12 months
from the date of issuance of said SCN. This can be extended by a
maximum 6 months is special circumstances
(iii) Answers to (i) and (ii) above will remain same in case the reason of the
short-payment was a result of willful mis-statement.
(c) Section 26A provides that the import duty paid on clearance of imported
goods for home consumption capable of being easily identified shall be
refunded to the person by whom or on whose behalf such duty was paid
subject to the fulfillment of the following conditions:
(a) Goods are defective or not as per agreed specifications.
(b) Goods are not worked upon/repaired/used after import except to
discover the defects/ non-conformity with specifications.
(c) Goods are identified as the goods which were imported.
(d) Importer does not claim drawback.
(e) Within 30 days (extendable up to 3 months) from order for the
clearance of imported goods for home consumption, goods are either–
(i) exported,
(ii) title is relinquished and goods abandoned to customs, by
importer, or
(iii) destroyed/rendered valueless in presence of customs officer.
(f) No offence has been committed with respect to such goods.
(g) Application for refund has been made upto 6 months from the relevant
date.
(h) Goods are not perishable goods or goods which have exceeded their
shelf life or their recommended storage-before-use period.
(i) Any other condition specified by the Board.

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Question 6
(a) 'Generally, appellant is not allowed to produce any additional evidence at
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c. o
the appeal stage.’ Examine this statement with reference to rule 112 of the
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CGST Rules, 2017 and discuss in brief, the provisions related to production of

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s
additional evidence before the Appellate Authority or the Appellate Tribunal.

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s
(6 Marks)

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(b) Section 160 of the CGST Act, 2017 provides that the assessment proceedings
shall not be invalid on certain grounds. You are required to list such grounds
along with type of proceedings covered with explanation. (4 Marks)
OR
(b) What is meant by 'commencement of audit' with reference to section 65 of
the CGST Act, 2017? Also state the time limit for the completion of the audit
in such cases. (4 Marks)
(c) Who has the authority to place an entity in Denied Entity List (DEL) and what

o m
c
are the restrictions imposed on the entity placed in DEL?

m. placed under DEL be removed from
e
Also enumerate when can the name once
DEL?
a s (4 Marks)
Answer
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(a) The statement is correct.
Generally, the appellant is not allowed to produce any additional evidence
at the appeal stage.
However, production of additional evidence at appeal stage is allowed:
(i) where adjudicating authority/ Appellate Authority (hereinafter referred

m
as AA) refused to admit evidence ought to be admitted

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(ii) where appellant was prevented by sufficient cause from producing

c. o evidence:
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(a) called upon to produce by adjudicating authority/AA
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gla (b) relevant to any ground of appeal
a
a (iii) where the order appealed against was made without giving sufficient
opportunity to the appellant to adduce evidence relevant to any
ground of appeal.

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FINAL EXAMINATION: SEPTEMBER 2025

Any additional evidence shall not be admitted unless:
(i) reasons for admitting such evidence are recorded in writing.
(ii) a reasonable opportunity is allowed:
(a) to examine the evidence/document or to cross-examine any
witness produced.
(b) to produce any evidence/witness in rebuttal of additional evidence
produced.
This rule do not affect the power of AA/Tribunal to direct production of any
document or examination of witness, to enable it to dispose off the appeal.
(b) The type of proceedings covered are:
• assessment
• re-assessment
• adjudication
• review
• revision
• appeal
• rectification
• notice
• summons
• other proceedings
The assessment proceedings shall not be invalid or deemed to be invalid
merely by reason of any:
• mistake
• defect
• omission therein,
if such assessment proceedings are in substance and effect in conformity
with/according to the intents, purposes and requirements of GST law or any
earlier law.

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(b) Alternative
Commencement of audit means:
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(i)
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the date on which records and other documents, called for by tax
c. o
c. o or m
authorities, are made available by the registered person

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lwhichever is later.
(ii) the date of actual institution of audit at the place of business,
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The audit is required to be completed within 3 months (further extendable
by maximum 6 months) from the date of commencement of audit.
(c) An entity may be placed under DEL, by the concerned Regional Authority
(or RA) of the DGFT.
In such a case:

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(i) firm may be refused grant or renewal of a licence/ authorization/

.
certificate/ scrip/ any instrument bestowing financial/ fiscal benefits,

em
and

l a s
(ii) all new licences, authorisations, scrips, certificates, instruments etc. will

a g
be blocked from printing/ issue/ renewal.
A firm’s name can be removed from DEL, by the concerned RA for reasons
if the firm completes Export Obligation/ pays penalty/fulfils requirement of
demand notice(s) issued by the RA/submits documents required by the RA.

m
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gla a
a

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