CS Professional December 2025 Question Paper Goods and Services Tax (GST) and Corporate Tax Planning

FOR CS PROFESSIONAL EXAM PREPARATION

CS Professional 2025
Question Paper ·
Goods and Services
Tax (GST) and
Corporate Tax
Planning
EXAM YEAR TYPE

CS Professional 2025 Question Paper
SUBJECT

Goods and Services Tax (GST) and Corporate Tax Planning
DATE

December 2025

Notes · Sample Papers · Previous Year Papers · Mock Tests

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NEW SYLLABUS
552
Roll No. ..................................... : 1 :

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OPEN BOOK EXAMINATION

Time allowed : 3 hours
.c om Maximum marks : 100
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l of questions : 6 a g
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Total number Total number of printed pages : 16

NOTE : 1. Answer All Questions.

2. All the references to section in Part I of the question paper relates to the provision

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of GST Laws.

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3. All the references to section in Part-II of the Question Paper relates to the Income-

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tax Act, 1961 and relevant Assessment Year 2025-26 unless stated otherwise.

4.
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Wherever necessary, suitable assumption can be made and the same to be stated

clearly in the answer.

5. Working notes should form part of the answer.

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PPART–I

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. They provide
c. o1. (a)
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Amit Solutions LLP a registered person under GST in Jaipur, Rajasthan.

s em following details of Inward and Outward supplies madela
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during the period :

(1) It received services of Nitin Kumar & Associates (firm of Advocates) for

legal matter of recovery from one of its debtors on 05.10.2024 for ` 12,75,000.

2/2025/GSTCTP/OBE P.T.O.

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Invoice raised on 10.10.2024 by Nitin Kumar & Associates.

Particulars Amit Nitin Kumar &
Solutions LLP Associates
Payment debited and credited
into Bank respectively 16.12.2024 17.12.2024
Recorded in books of account 25.12.2024 20.12.2024
(2) Amit Solutions LLP provided services of a business facilitator to HSPL Bank
for ` 1,57,500 in Jaipur.
(3) Services provided to Z Ltd. registered in Jodhpur, Rajasthan of ` 18,95,000.
(4) Amit Solutions LLP paid ` 2,56,000 for the health insurance of its staff, following
the internal policy of the firm.
(5) Amit Solutions LLP paid ` 4,25,000 for sponsorship of an event organized
in Bikaner, Rajasthan to Mr. Srihari an individual.
(6) Amit Solutions LLP paid ` 1,24,500 for goods purchased from NM Ltd a
registered dealer.
All figures mentioned above are exclusive of tax, wherever applicable.
All inward and outward supplies are intra-state supplies except where specifically
mentioned. All inward supplies are used for taxable goods and services only.
Applicable GST rates are 18% IGST and 9% CGST and SGST each.
Based on information provided above case study in the context of CGST Act, 2017,
you are required to :
(i) Time of supply for services received from Nitin Kumar & Associates for
payment of tax.

2/2025/GSTCTP/OBE Contd. ........

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omrelated to above supplies. . co
(ii) Determine the value of GST and tax to be paid under RCM by Amit Solutions

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ag Determine the net minimum GST liability of Amit Solutions LLP related to

above supplies.

(b) In case of BTL Ltd, Summary Assessment under Section 64 of the CGST

Act, 2017 is initiated. According to GST Officer, BTL Ltd. has provisional GST

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Liability.

e m to provisionally attach the Cash Credit Account
BTL Ltd. has availed Cash Credit facility from Bank. GST Officer, without any approval

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from higher authority, passed an order

for two years.
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Discuss whether action of GST Officer is justified ?

(c) KBN Inc., a readymade garment manufacturing company based in UK, intends to

launch its new fashion collection products in India. However, the company wishes

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purpose, KBN lnc. has approached MNR Consultants, Ahmedabad .(Gujarat) to carry
to know the fashion sense of Indians before launching its products in India. For this

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out a survey in India to enable it to make changes, if any, in its products to suit

Indian fashion industries.

The survey is to be solely based on the oral replies of the surveyees. They will

not be provided any sample by KBN Inc. to wear.

2/2025/GSTCTP/OBE P.T.O.

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MNR Consultants will be paid in convertible foreign exchange for the assignment.

With reference to the provisions of GST law, determine the place of supply of the

service. Also, explain whether the said supply will amount to export of service ?

2. (a) Harit Medicare Hospital is a multi-specialty hospital in Jamnagar, Gujarat. It is a registered

person under GST.

Following services provided by Harit Medicare Hospital during the month of

October 2024 :

Sr. Particulars Amount

No. (`)

1. Income from Intensive Care Unit (ICU)

(Charges ` 15000 per day) 5,25,000

2. Received Room rent for inhouse patients

(Charges ` 5850 per day) 3,91,950

3. Provided services of preserving stem cells

from inhouse Cord Blood Bank 2,98,000

4. Income from IVF (In vitro fertilization) Unit 3,00,000

5. Services of plastic surgery provided to children

who born with birth defects 7,42,500

6. Fees collected from final year students of

Nursing and Psychology for imparting practical

training 3,50,000

2/2025/GSTCTP/OBE Contd. ........

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Determine the value of taxable supply of Harit Medicare Hospital for the month of

c. o2024 in the context of CGST Act, 2017. s e m
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October,

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a(b)g Ravindra Spinners Ltd. authorized Mr. N, GST Practitioner (GSTP) by filing FORM
GST PCT-05 to file GSTR-9 for FY 2023-24. Mr. N missed the due date of

31.12.2024. As a result, the company was levied late fees of ` 25,000 and an

audit notice under Section 65 :

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(a) Can Ravindra Spinners Ltd. shift the liability to the GSTP ?

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(b) Is there any legal remedy or relief available to the company ?

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(c) ag by way of transportation of passengers by a radio taxi in
Suresh providing services

Mumbai through an electronic commerce operator – ‘SHREE QRR TRIPS’. Suresh

is not liable to get registered as per the provisions of section 22(1) of the CGST

Act, 2017.

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You are required to provide answer of the following questions in the context of CGST

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Act, 2017 :

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(a) Who is the person liable to pay GST in this case ?

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Would your answer be different if SHREE QRR TRIPS’ does not have a

physical presence in India and also nobody representing it in India ?

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3. (a) EET Pvt Ltd has been issued a show cause notice (SCN) on 28th March, 2024

under section 73(1) of the CGST Act, 2017 on account of short payment of tax

for the month of April, 2022. EET Pvt Ltd contends that the show cause notice

is time-barred in law.

You are required to examine the technical veracity of the contention of EET Pvt.

Limited as per CGST Act, 2017.

(b) Briefly explain the manner of dealing with difference in ITC available in auto-generated

statement containing the details of ITC and that availed in return prescribed in terms

of rule 88D of the CGST Rules, 2017.

(c) Lalit Enterprise is a registered person under composition scheme of GST in Kolhapur,

Maharashtra, manufacturer of goods. Turnover of taxable supplies of Lalit Enterprise

in the preceding financial year is ` 90 Lakh. In the current financial year, they want

to enter the service sector also, being service provider for services other than restaurant

services (not supplying alcoholic liquor for human consumption). Their GST consultant

advised them to exit composition scheme if they want to provide services mentioned

above. Whether the advice given by GST consultant is correct and also give comment

as per the provisions of section 10 of The CGST Act 2017.

2/2025/GSTCTP/OBE Contd. ........

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Attempt all parts of either Q. No. 4 or Q. No. 4A.

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4. (a)
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‘‘There are cases where the original equipment manufacturer offers warranty for the
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la sgoods supplied by him to the customer and provides replacement of parts
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and/or

ag repair services to the customer during the warranty period, without separately charging
any consideration at the time of such replacement repair services.’’

(i) Whether GST would be payable on such replacement of parts or supply of

repair services, without any consideration from the customer, as part of

warranty ?

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(ii) Whether in such cases, the manufacturer is required to reverse the input tax

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credit in respect of such replacement of parts or supply of repair services

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as part of warranty, in respect of which no additional consideration is charged

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from the customer

(b) The Appellate Authority passed an order against BHG Pvt. Ltd. demanding IGST

of ` 1,100 crores + interest ` 50 crores + Penalty ` 100 crores. BHG Pvt. Ltd.

wishes to file an appeal against the order of the Appellate Authority

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The company admits the tax liability of Appellate Authority ` 100 crores but wishes

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to litigate the balance demand amount and thus, files an appeal to the Appellate Tribunal.

s g ladetermine the amount of
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You are required to explain the related legal provision and

the pre-deposit, which is required to be paid by BHG Private Ltd. for filing the

appeal as per CGST Act, 2017.

2/2025/GSTCTP/OBE P.T.O.

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(c) Deepak Enterprise a proprietary concern reached the turnover of ` 40 Lakh on

20th July, 2024 and applied for registration under GST on 23rd July, 2024. The

proper officer wants for physical verification of place of business of Deepak Enterprise

and insisted on visit the same in the presence of proprietor Mr. Deepak.

(i) Whether the action taken by proper officer is correct ?

(ii) Explain the procedure to be followed by proper officer if he decides to do

physical verification of place of business of Deepak Enterprise after the grant

of registration as per the provisions of Rule 25 of CGST Rules 2017.

OR (Alternate to Q No. 4)

4A. (i) Navina Textbook Society a registered society under GST and it has been formed

under Gujarat State Government for preparation, printing and distribution of all

Government approved school textbooks. It has given contract to Devi Printers for

printing of textbooks where content belongs to the Society and physical inputs belong

to the printer. Navina Textbook Society seek Advance ruling for the below matter :

(i) Whether the above service is subject to Nil Rated GST ?

(ii) Whether GST registration of Society should be retained or surrendered ?

Explain the validity of the above issues under GST law.

2/2025/GSTCTP/OBE Contd. ........

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(ii)
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With reference to GST law discuss the following issues :
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o the activity of providing personal guarantee by the Director of a company em
(i) .cWhether
e m to the bank/financial institutions for sanctioning of credit facilities to the said
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ag company without any consideration will be treated as a supply of service or
not and whether the same will attract GST or not ?

(ii) Whether the activity of providing corporate guarantee by a person on behalf
of another related person, or by the holding company for sanction of credit
facilities to its subsidiary company, to the bank/financial institutions, even when

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made without any consideration will be treated as a taxable supply of service

m. be the valuation of such supply of services ?
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or not, and if taxable, what would

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(iii) Rise Builders Ltd. launched a housing project in July 2024. All prices were inclusive
of taxes. In October 2024, the GST rate on affordable housing was reduced from
8% to 1%, but the builder continued to collect the same installment amounts from
homebuyers. One buyer complained to the antiprofiteering authority.

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You are required to provide answer of the following questions in the context of CGST

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Act, 2017 :

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las (i) Assess the liability of Rise Builders Ltd.
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(ii) What are the remedies for the buyers ?

2/2025/GSTCTP/OBE P.T.O.

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PART–II

5. (a) M/s ATS Fun Ltd wants to raise ` 100 Lakh as capital for investments in a proposed
project for setting up of an amusement park. The company expects earnings before
interest and taxes (EBIT) ` 40 Lakh per annum. The management is considering the
following alternatives for raising the capital :

(a) Issue 10,00,000 equity shares of ` 10 each.

(b) Issue 5,00,000 equity shares of ` 10 each and 50,000 12% preference shares
of ` 100 each.

(c) Issue 5,00,000 equity shares of ` 10 each and 10% Debentures of ` 50,00,000.

The company approached CS Natarajan, legal advisor of the company to advise on
the best alternative to be used for raising capital keeping in mind the object of maximizing
the profits of the company, assuming corporate tax rate of 30%.

(b) Explain with supporting reasons whether the following instances pertain of which of
the tax planning, tax avoidance, tax evasion or tax management :

(a) Sunny directly paid for a property purchased in the name of Harpreet, his
cousin sister.

(b) Jatin filed his ITR beyond due date of filing and to avoid further late filing
fees.

(c) B Limited merged its one of the units, running into losses, to C Limited, a
profit-making company to transfer the claim of business losses against a cash
consideration.

2/2025/GSTCTP/OBE Contd. ........

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(d) Metro Fashion, running into the Non SEZ area is in the process of shifting

.c to SEZ area by importing the machines required.
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la s (e) Ram, highest slab tax paying individual, transferred his one residential property
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earning rental income of ` 50,000 per month to his wife Urmila and started
filing her ITR.

(c) IFD Bank established an offshore banking unit (OBUs) in Special Economic Zones
in GIFT City, Gujarat in FY 2019-20. Its details of income and expenses were as

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follows :

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(Rs. in Crores)

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Particulars FY FY
a 31.03.2025 31.03.2024

(6th year) (5th year)

Incomes :

Income from IFSC operations 23 10

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Other Income (Non-IFSC) 5

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Expenses (IFSC operations) :
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a7g 14

Depreciation 1 2

Net Profit/(Loss) for the year 20 (3)

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From the above information, compute the following :

(a) The amount of business loss of 5th year which can be carried forward to

6th year for set off.

(b) The income eligible for deduction in the 6th year (AY 2025-26) under section

80LA of the Income Tax Act.

Attempt all parts of either Q No 6 or Q. No. 6A

6. (a) Vinit has been engaged in the plying, hiring and leasing of goods carriage business

for the last 20 years with the name of Vinit Enterprises and Sanjay is engaged in

the business of textiles. Due to the continuous loss in the business, Sanjay wants

to shut down the business. Vinit and Sanjay want to form a partnership firm with

the name of SS Enterprises and want to start the business of leasing and hiring goods

carriage from on 1st May 2024.

On 1st May 2024 each contributes ` 30,00,000 to the business and planning to

purchase 6 nos. heavy goods vehicles (whose gross weight is 14 MT) and 4 nos.

other than heavy goods vehicles. On the basis of experience of Vinit, the estimated

Receipts will be ` 1,23,00,000.

2/2025/GSTCTP/OBE Contd. ........

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Estimated expenses as under :
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Nature of expenses Amount
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a Drivers Salary
(`)

35,00,000

Repairs and Maintenance 3,57,000

Interest on bank loan 7,40,000

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Diesel 12,40,000

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Other allowed expenses 2,60,000

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Depreciation (Allowed as per Income Tax Act, 1961) 50,40,000

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Interest to partners on capital @ 12% (As per section

40(b)) 6,60,000

Remuneration paid to partners as per section 40(b) 4,40,000

Advise, whether firm opt for section 44AE of the Income Tax Act, 1961 or not,

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by comparing the taxable income of the firm for the assessment year 2025-26 under

c. o both the options.

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(b) ‘‘In case of Demerger no concession or incentive provided to resulting company.’’
Discuss briefly the validity of the above statement.

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(c) BNN Telecom Ltd. engaged in the business of telecommunication service, now BNN

Telecom Ltd. wants to obtain a telecommunication license for 5G service. BNN Telecom

Ltd approaches the acquired license and finds that the license cost will be ` 15

crores for a period of 10 years and there are two options to make the payment.

(i) The entire license fee is to be made at the time of obtaining the license i.e.,

18.07.2022.

(ii) ` 6.90 crores paid at the time of obtaining and the remaining ` 8.10 crores

paid in equal two instalments in the next 2 years.

Before the commencement of business BNN Telecom Ltd, acquired all the information

so BNN Telecom Ltd. find out all the pros and cons of the business.

Expert says that after at least two years if you are not in the position to run the

business then you can sell the license either for :

(i) ` 11 crores or

(ii) ` 16.25 crores.

BNN Telecom Ltd. approached you to give the report in which include all the taxation

aspects for the financial year 2022-23 to financial year 2024-25.

You are required to prepare a report in respect of section 35ABB of the Income

Tax Act, 1961.

2/2025/GSTCTP/OBE Contd. ........

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OR (Alternate to Q. No. 6)

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6A. (i)
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RRY LLP has an income of ` 70,00,000 under the head ‘profits and gains of business

la sor profession’. One of its businesses is eligible for deduction @ 100% of aprofits
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ag under section 80-IB. The profit from such business included in the business income
is ` 55,00,000.

Compute the tax payable by the RRY LLP for the Assessment Year 2025-26, assuming

that it has no other income during the previous year 2024-25.

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(ii) RRW Limited registered during the financial year in special economic zones (SEZ),

g l financial year 2024-25, following information was provided
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providing services. During the

by the company :

Particulars Amount (` in crore)

Export Turnover 180

Total turnover 300
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Profit 48

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What is the amount of deduction that RRW Limited can claim for the assessment

year 2025-26 ?

2/2025/GSTCTP/OBE P.T.O.

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(iii) Niketan Ltd., a domestic company, purchases its own unlisted shares on 13th August,
2024. The consideration for buyback amounted to ` 16 lakhs, which was paid on
the same day. Niketan Ltd. had received ` 12 lakhs on issue of these shares one
year back.

Compute the additional income-tax payable by Niketan Ltd. Further, determine the
interest, if any, payable if such tax is paid to the credit of the Central Government
on 12th November, 2024.

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2/2025/GSTCTP/OBE Contd. ........

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