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June 2026Q. 6(b)5 marksSyllabus 2022
(b)Shri Keshri Pvt, Ltd., a registered supplier from Rajasthan, furnishes the following information relating to goods sold by it to Shri Balaji Pvt. Ltd. in Rajasthan, during the month of December, 2025 :
S. No.
Particulars
Amount (₹)
(i)
Price of the goods other than below item
1,00,000
(ii)
Installation and testing charges for goods, not included in price
25,000
(iii)
Freight charges from the Showroom of Keshri Pvt. Ltd. to warehouse of Shri Balaji Pvt. Ltd., included in price mentioned in Point No. (i) above.
12,000
(iv)
Shri Keshri Pvt. Ltd. provides additional discount @ 1% at year end, based on additional purchase of other machinery for which adjustment is made at the end of the financial year without any change in individual transactions.
—
(v)
Late fees for delayed payment inclusive of GST [Shri Balaji Pvt. Ltd. paid the late fees. However, these charges were ultimately waived by Shri Keshri Pvt. Ltd. and the amount was refunded to Shri Balaji Pvt. Ltd. during the same month]
7,500
(vi)
Weighment charges [Such charges were paid by Shri Balaji Pvt. Ltd. to Radhe Pvt. Ltd. on behalf of Shri Keshri Pvt. Ltd.]
6,000
Compute the value of taxable supply made by Shri Keshri Pvt. Ltd. to Shri Balaji Pvt. Ltd. for the month of December, 2025.
Computation of value of taxable supply made by Shri Keshri Pvt. Ltd. to Shri Balaji Pvt. Ltd. for the month of December, 2025
Particulars
Amount (₹)
Price of the goods other than below item
1,00,000
Installation and testing charges [Any amount charged for anything done by the supplier in respect of the supply of goods at the time of/before delivery of goods is includible in the value of supply in terms of section 15(2) (c).]
25,000
Less: Freight Charges [Though the freight charges are included in Invoice. Hence it is includable in the value of supply in term of section 15(2) (c). So do not deduct from the price of goods.
Nil
Less: Additional 1% discount at year end [Though the additional discount is established before/at the time of supply, it is not deductible from the value of supply in terms of section 15(3)(b) as the same is not linked to any specific transaction and is adjusted by the parties at the end of the financial year.]
Nil
Late fees for delayed payment [Not includible since the same is waived off]
Nil
Weighment charges paid to Radhe Pvt. Ltd. on behalf of Shri Keshri Pvt. Ltd. [Any amount that the supplier is liable to pay in relation to the supply but has been incurred by the recipient and not included in the price actually paid or payable for the goods, is includible in the value of supply in terms of section 15(2)(b)]
6,000
Value of taxable supply
1,31,000
Source: ICSI Guideline Answers, June 2026, Q. 6(b) (Syllabus 2022).
December 2025Q. 6(a)5 marksSyllabus 2022
(a)Keshav Ltd., a registered supplier, has supplied machinery to Ganesh Ltd. (a supplier registered in the same State). Determine the value of taxable supply made by Keshav Ltd. to Ganesh Ltd. on the basis of the following information :
S. No.
Particulars
Amount (₹)
(i)
Price of machinery (exclusive of taxes and discounts)
6,00,000
(ii)
Part fitted in the machinery at the premises of Ganesh Ltd. [Amount has been paid by Ganesh Ltd. directly to the supplier. However, it was Keshav Ltd.’s liability to pay the said amount. The said amount has not been recorded in the invoice issued by Keshav Ltd.]
30,000
(iii)
Installation and testing charges for machinery, not included in price
20,000
(iv)
Discount @ 2% on price of the machinery mentioned at S. No. (i) above (recorded in the invoice)
(v)
Keshav Ltd. provides additional discount @ 1% at year end, based on additional purchase of other machinery for which adjustment is made at the end of the financial year without any change in individual transactions.
Computation of value of taxable supply made by Keshav Ltd. to Ganesh Ltd.
Particulars
Amount (₹)
Price of machinery (exclusive of taxes and discounts)
6,00,000
Amount paid by Ganesh Ltd. directly to the supplier for the part fitted in the machinery [Any amount that the supplier is liable to pay in relation to a supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods is includible in the value of supply in terms of section 15(2)(b).
30,000
Installation and testing charges [Any amount charged for anything done by the supplier in respect of the supply of goods at the time of/before delivery of goods is includible in the value of supply in terms of section 15(2)(c).
20,000
Less: Discount @ 2% on the price of machinery [6,00,000 x 2%] [Since discount is given at the time of supply of machinery and recorded in the invoice, the same is deductible from the value of the supply in terms of section 15(3) (a).
(12,000)
Less: Additional 1% discount at year end [Though the additional discount is established before/at the time of supply, it is not deductible from the value of supply in terms of section 15(3)(b) as the same is not linked to any specific transaction and is adjusted by the parties at the end of the financial year.]
NIL
Value of taxable supply
6,38,000
Source: ICSI Guideline Answers, December 2025, Q. 6(a) (Syllabus 2022).
Mr. X sells a product to Mr. Y for ₹ 25,000. Mr. Y provided free consultancy to Mr. X for ₹ 4,000. The normal value of the product is not available. The value of supply in this case will be :
VVIP Global Limited registered supplier of Maharashtra has provided the following details for the supply of one machine :
S. No.
Particulars
Amount (₹)
1
List price of Machine supplied
1,20,000
2
Cost of protective Packing for safe transportation of machine charged separately in the invoice
15,000
3
Maintenance Charges compulsory for first year (not included in above list price)
20,000
4
Installation charges of machinery (not included in above list price)
2,500
5
Third party Inspection charges (these charges are not recorded in the invoice; these charges are directly paid by buyer to third party inspection agency)
4,000
6
Price link subsidy received from Government of Maharashtra in relation to Supply of such machinery (The price of ₹ 1,20,000 above is after considering the subsidy of ₹ 30,000)
30,000
7
Tax Levied by Local Authority on sale of such machine (not included in above list price)
3,500
During the month of March, 2024 VVIP Global Limited supplied three machines in the state of Maharashtra and one machine in the state of Gujarat to the registered dealers.
The aggregate annual turnover of the company during the financial year 2022-23 was ₹ 8 crore. However aggregate annual turnover of current financial year 2023-24 was ₹ 4 crore only.
VVlP Global Limited also purchased some machines from registered dealer as well as unregistered dealer during the month of March, 2024. The details of inward supplies during the month of March, 2024 were as follows :
S.
Particulars
Amount
No.
( ₹ )
1
Two Machines purchased from a Dealer who is registered under Regular Scheme in the state of Uttar Pradesh (each machine value ₹ 75,000)
1,50.000
2
One Machine purchased from a Dealer who is registered under Composition Scheme in the state of Maharashtra
76,000
3
One Machine purchased from Moon Limited registered under Regular Scheme in the state of Gujrat (Invoice is received and payment is made in the month of March, 2024 but Machine is received in the month of April, 2024)
68,000
4
Insurance charges, paid to XYZ Insurance Company registered in Pune (Maharashtra) for trucks used for transportation of Machinery for two years (Insurance Premium ₹ 60,000 per year)
1,20,000
Balance available in electronic credit ledger of VVIP Global Limited at the beginning of March, 2024 :
CGST
₹ 15,000
SGST
₹ 10,000
IGST
₹ 5,000
Additional Information :
(1)On 26 March, 2024 Moon Limited transported above mentioned one machine to VVIP Global Limited by road, the distance between registered places of business from Moon Limited to VVIP Global Limited is 375 kilometers.
(2)Rate of CGST, SGST and IGST to be charged 9%, 9% and 18% respectively.
(3)Both inward and outward supplies given above are exclusive of taxes, wherever applicable.
(4)All the conditions necessary are availing the ITC have been fulfilled except mentioned above.
Based on the above case scenario and information, you are required to answer the following questions with reference to GST Law :
(a)Compute the Taxable Value of Supply of each machine for the month of March, 2024 for VVIP Global Limited.
Computation of Taxable Value of Supply
Particulars
Amount
List price of Machine supplied
1,20,000
Cost of protective Packing for safe transportation of machine charged separately in the Invoice (Included in Value of supply as per section 15)
15,000
Maintenance Charges (Included in Value of supply as per section 15)
20,000
Installation charges of machinery (Included in Value of supply as per section 15)
2,500
Third party Inspection charges (Included in Value of supply as per section 15)
4,000
Subsidy received from State Government in relation to supply of such machinery. (Subsidy from State Govt. or Central Govt., are not includible in the value of supply u/s 15)
--
Tax Levied by Local Authority on sale of such machine (Tax other than GST, if charged separately, are includible in the value in terms of section 15]
3,500
Value of taxable supply
1,65,000
Source: ICSI Guideline Answers, December 2024, Q. 5(a) (Syllabus 2022).
June 2024Q. 6A(i)5 marksSyllabus 2022
(i)(a) Abdut & Co is engaged in manufacture of plastic items supplied 10,000 units to Khan & Co. It gave usually 1% discount in respect of supplies upto 5,000 units and 2% discount for supplies above 5,000 units to 10,000 units. As a special case, it gave 4% discount to Khan & Co since the order was placed in one lot for 10,000 units. This discount was based on the agreement entered into between the parties and after completion of total supply of units. It was not shown in the invoice. Explain how the supplier and receiver i.e., Abdul & Co and Khan & Co respectively should deal with the discount with regard to supply.
(b)Deepak supplied biscuits to Arnold & Co regularly. It supplied 10,000 packets @ ₹ 20 per packet in the month of June 2023. Due to financial crises Arnold & Co could not make payment to Deepak. Later, it was negotiated and the parties agreed the price @ ₹ 19 per packet. Arnold & Co make the payment accordingly on 10th September, 2023. Deepak issued a credit note on difference amount on same date. Assume the CST rate @ 18% determine the taxable value of supply of the transaction.
(a)
Particulars
Discount offered by suppliers to customers shall be excluded to determine the value of supply. This discount can either be given in the tax invoice itself or at later date through credit notes provided it satisfies the conditions under section 15(3) CGST Act.
The conditions for providing discount after the supply has been affected are —
i.such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and
ii.input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.
In the present case, Abdul & Co can offer discount through credit note as there is already an agreement entered between the parties towards such discount. Further, Khan & Co must reverse ITC while accounting the credit note towards the discount.
(b)
Particulars
In this case, since the discount is being allowed after the supply is affected and there is no agreement between the parties for allowing such discount on or before the supply, the value shall be computed without considering the discount.
These discounts shall not be excluded while determining the value of supply. There is no impact on the availability or otherwise of ITC in the hands of the supplier.
Therefore, the value of taxable supply shall be Rs. 2,00,000. (10000 packets @ Rs. 20) [Ignoring the discount given subsequently amounting to 10,000].
Source: ICSI Guideline Answers, June 2024, Q. 6A(i) (Syllabus 2022).
December 2023Q. 571 markMCQSyllabus 2017
Value of supply under Section 15(1) of the CGST Act is the :
(a)Rama Private Limited, Mumbai, a registered supplier, manufactures taxable goods. It provides the following details of taxable inter-State supply made by it during the month of March 2023 :
S. No.
Particulars
Amount (₹)
(i)
List price of taxable goods supplied inter-State (exclusive of taxes)
20,00,000
(ii)
Subsidy received from the Central Government for supply of taxable goods to government School {exclusively related to supply of goods included at S.No. (i)}
3,50,000
(iii)
Tax levied by Municipal Authority
20,000
(iv)
Special packing at the request of customer to be charged to the customer
15,000
(v)
Late fee paid by the recipient of supply for delayed payment of consideration (Recipient has agreed to pay ₹ 6,000 (plus GST @ 18%) in Lump Sum and no additional is payable by him over and above such amount)
7,080
The list price of the goods is net of the subsidies received. However, the other charges/ taxes/fee are charged to the customers over and above the list price. Rama Private Limited offers 3% discount on the list price of the goods which is separately shown in the invoice for the goods.
Calculate the total value of taxable supplies made by Rama Private Limited during the month of March, 2023 and assume the rate of IGST is 18%.
Computation of total value of Taxable Supplies made by Rama Private Ltd.
during the month of March 2023
Particulars
Amount (Rs.)
List Price of the Goods
20,00,000
Subsidy amounting to Rs.3,50,000 received from the Central Government [Since the subsidy is received from the Government, the same is not includible in the value in terms of Section 15(2)(e) of the Central Goods and Services Tax Act, 2017]
NIL
Tax levied by the Municipal Authority [Includible in the value as per Section 15(2)(a) of the Central Goods and Services Tax Act, 2017].
20,000
Packing charges [Being incidental expenses, the same are includible in the value as per section 15(2)(c) of the Central Goods and Services Tax Act, 2017]
15,000
Late fees paid by recipient of supply for delayed payment (Rs.7,080 x 100/118) [Includible in the value as per Section 15(2)(d) of the Central Goods and Services Tax Act, 2017]
6,000
Total
20,41,000
Less: Discount offered = 3% of List Price (Rs.20,00,000*3% ) Since discount is known at the time of supply, it is deductible from the value in terms of Section 15(3)(a) of the Central Goods and Services Tax Act, 2017.
(60,000)
Total Value of Taxable Supplies
19,81,000
Source: ICSI Guideline Answers, December 2023, Q. 6(a) (Syllabus 2022).
June 2023Q. 631 markMCQSyllabus 2017
Shishir a practicing company secretary was asked to handle legal work pertaining to incorporation of LMN (P) Ltd. He incurred registration fee ₹ 20,000 and name approval fee ₹ 1,000 paid to ROC. He recovered the above said amounts and his fee of ₹ 10,000. Determi ne the value of supply treating Shishir as pure agent.
BMC Enterprises made supply of goods to LPT & Co. for ₹ 6,00,000. Tax levied by municipal authorities on such sale ₹ 30,000. CGST a nd SGST chargeable on supply was 6% each. Packing charges not included in the price mentioned above amounted to ₹ 20,000. BMC enterprise received a subsidy of ₹ 60,000 from the Government which is not considered in the price mentioned above. Discount offered @ 2% on the invoice. Determine the value of supply.
PQR Agency of Delhi is engaged in supply of services in relation to booking of tickets for travel by air. During the month of December, 2022, it had booked tickets for domestic travel aggregating to basic fare of ₹ 42 lakh. How much is the value of supply of PQR Agency for the month of December, 2022?
As per Rule 32(2)(b) of the CGST Rules, 2017, the option to determine value in relation to supply of foreign currency, including Money Changing shall be deemed to be ......... for an amount exceeding ₹ 10,00,000.
(A)₹ 5,500 + 0.1% of the gross amount of currency exchanged
As per Section 15(2) of CGST Act, 2017, Interest on late fees or penalty for delayed payment of any consideration for any supply................. .
(A)Shall be included if amount exceeds ₹ 50,000
(B)Shall be included in the value of taxable supply only if the same is recovered from the recipient by the supplier
(C)Shall always be excluded from the value of taxable supply since it is consideration for delay in payment and not a consideration for supply of goods/ services
(D)Shall always be included in the value of taxable supply
Answer: (B) Shall be included in the value of taxable supply only if the same is recovered from the recipient by the supplier
A is an Air Travel agent. He collected ₹ 50,000 (Basic fare domestic booking) and ₹ 1,00,000 (Basic fare for International Booking). As per Rule 32 of CGST Rules, 2017, the value of supply under this case will be:
As per Rule 31A of CGST Rules, 2017, what shall be the value of supply in case of lottery run by the state government:
(A)100/112 of the face value of ticket
(B)Price as notified in the official gazette by the organising state
(C)100/114 of the face value of ticket
(D)100/112 of the face value of ticket or price as notified in the official gazette by the organising state, whichever is higher
ICSI did not treat any of the given options as correct.
ICSI's note: The value of supply of lottery shall be deemed to be 100/128 of the face value of ticket or of the prices as notified in the Official Gazette by the Organising State, whichever is higher.
Rule 30 of the CGST Rules, 2017, inter alia provides value of supply of goods or services or both based on cost shall be .......................... % of cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services.
Rajasthan State Government runs a Lottery “Dhan Varsha” draw of which to be made on Diwali, 2021. The tickets having face value of ₹ 100 each were supplied to agents for ₹ 95 each whereas the price as notified in the official Gazette of Rajasthan Government was ₹ 92 of each ticket. State the value of the ticket as per Rule 31A of the CGST Rules, 2017.
Compute the value of taxable service in the context of provisions of CGST Act, 2017 and rules framed thereunder from the following transactions made available by Anand Agro Ltd engaged in agriculture related services for the month of Sept. 2020.
Manked & Co. Delhi made supplies of ₹ 4,15,000 to Gupta & Co. of Noida (UP). Besides, it charged ₹ 10,000 towards packing charges. Mankad & Co. received ₹ 25,000 as subsidy from an NGO for such supply. It allowed discount @ 2% which is mentioned in the invoice. What is the value of supply ?
(A)₹ 4,06,700
(B)₹ 4,41,000
(C)₹ 4,16,500
(D)₹ 4,31,200
ICSI did not treat any of the given options as correct.
ICSI's note: Solution of the given question is Rs. 415000+10,000+25,000- 8300 (2% of 4,15,000) =Rs. 4,41,700.
Ascertain the value of taxable supply under GST with respect to the given independent services provided by the registered persons (1) Fee charged for yoga camp conducted by a charitable trust registered under section 12AA of the Income Tax Act, 1961 of ₹ 2,00,000 (2) Fee charged for services provided by commentator to a recognized sports body of ₹ 1,00,000 (3) Amount charged for service provided by way of vehicle parking to general public in a shopping mall of ₹ 60,000.
Section 15 of the CGST Act read with CGST Rules states that the value of taxable supply under GST is the transaction value. Further section 15(3) of the CGST Act defines items not to be included in the transaction value. Find from the following which shall not to be included in determination of the value of taxable supply.
Dhanvarsha is a lottery, authorized on 21 March, 2020 by the Rajasthan Government having face value of the ticket of ₹ 500 each. The draw of the lottery is scheduled to be held on the occasion of Diwali festival in November, 2020. The value of supply of one lottery ticket under Rule 31A of the CGST Rules, 2017 shall be taken at ₹ --------------- when the price of each of the ticket as notified in the Official Gazette by the Rajasthan Government is of ₹ 385.
Mishra Enterprises of Ahemdabad had made supplies of ₹ 3,50,000 to Beeta Enterprises of Ahemdabad. Municipal Authorities of Ahemdabad on such supplies levied the tax @ 10% of ₹ 35,000. CGST and SGST chargeable on the supply was of ₹ 42,000. Packing charges not included in the price of ₹ 3,50,000 amounted to ₹ 5,000. Subsidy of ₹ 20,000 was received from an NGO on the sale of such goods and the price charged of ₹ 3,50,000 is after taking in to account the amount of subsidy so received. Discount offered is @ 2% which was mentioned on the invoice. The value of supply in this case shall be -------
Baba Automobiles had supplied the goods to Gogia Automobiles in the month of March, 2020 of the invoice value of ₹ 4,72,000. The supply so made was inclusive of tax charged as CGST and SGST which on the products so sold as per rates prescribed under CGST Act, 2017 is of 18%. The value of supply as per rule 35 of the CGST Rules, 2017 of such supply shall be -------
WY (P) Ltd. sold goods to PR & Co. The list price was ₹ 1,40,000 for the goods besides (i) packing charges ₹ 6,000; (ii) interest for delayed payment ₹ 8,000;
(iii)transport charges ₹ 12,000 through own vehicle of WY (P) Ltd. The value of
Saran (P) Ltd. supplied goods to Ashwini (P) Ltd. The list price of goods was ₹ 3,60,000 excluding packing charges of ₹ 15,000. The supplier of goods i.e. Saran (P) Ltd. allowed discount of ₹ 20,000 for prompt payment made by the recipient of supply i.e. Ashwini (P) Ltd. The value of supply would be :
What will the value of supply of the mobile phone sold by Micromax to Anil Kumar for ₹ 35,000 in exchange with of his old mobile phone. The sale price of the new mobile phone without exchange is ₹ 40,000. The value of old mobile phone so exchanged was of ₹ 7,000.
Mishra Enterprises had made supplies of ₹ 5,50,000 to Bee Kay Enterprises. Municipal Authorities of Jaipur on such supplies levied the tax @ 10% of ₹ 55,000. CGST and SGST chargeable on the supply was of ₹ 66,000. Packing charges not included in the price of ₹ 5,50,000 amounted to ₹ 15,000. Subsidy of ₹ 25,000 was received from an NGO on the sale of such goods and the price of ₹ 5,50,000 is after taking in to account the amount of subsidy so received. Discount offered is @ 1% which was mentioned on the invoice. The value of supply in this case shall be ................... .
Babbur Automobiles of Jaipur has supplied the goods of ₹ 2,66,090 to Goel Automobiles of Ajmer in the month of March, 2019. The supply so made was inclusive of tax charged as CGST and SGST which on the products so sold as per rates prescribed under CGST Act, 2017 is @ 18% The value of supply as per Rule 35 of the CGST Rule, 2017 of such supply shall be .............. .
(ii)UPS Ltd. of Hyderabad supplied a power generator to TK Tyres Ltd., of Tamil Nadu and charged the following amounts to the supply :
₹
Price of generator before taxes and cash discount
9,00,000
Other charges not included in the above price :
Packing charges
15,000
Designing charges for the generator
18,000
Freight
12,000
Transit insurance
12,000
Following additional information are also furnished :
(a)Rate of GST – 18%
(b)A cash discount @ 3% on price is given to the customer at the time of supply and the same is also recorded in the invoice.
Calculate the value of supply and the GST payable.
Computation of Value of Supply
Particulars
Amount ( ₹ )
Price of generator
9,00,000
Add :
Packaging charges [Note 1]
15,000
Designing charges [Note 1]
18,000
Freight [Note 1]
12,000
Transit insurance [Note 1]
12,000
9,57,000
Less : Cash Discount @3% on price of ₹ 900000
[900000*3/100] [Note 2]
(27,000)
Value of supply
9,30,000
IGST@18% [930000*18/100]
1,67,400
Notes:
1.Incidental expenses like packing, designing, freight and insurance are the inclusions for the computation of value of supply.
2.Discount given before or at the time of supply and recorded in invoice is not to be included while computing the value of supply.
Source: ICSI Guideline Answers, June 2019, Q. 6A(ii) (Syllabus 2017).
December 2018Q. 841 markMCQOld syllabus
Subsidy given by the Central Government or a State Government while determining value of taxable supply under Goods and Service Tax (GST) as per section 15 of the CGST Act, 2017 :
(A)included in the transaction value i.e. (value of taxable supply)
(B)just ignored no treatment
(C)shall not be included in transaction value i.e. (value of taxable supply)
(D)deducted from the transaction value i.e. (value of taxable supply)
Answer: (C) shall not be included in transaction value i.e. (value of taxable supply)
(e)Nisha Enterprises had made supplies of ₹ 9,00,000 to D.K. Enterprises on which a tax of ₹ 90,000 was levied by Municipal Authorities. The CGST and SGST chargeable on the supply @ 5% was of ₹ 45,000. Packing charges of ₹ 25,000 are not being included in the price of supply value of ₹ 9,00,000.
Nisha Enterprises received a subsidy of ₹ 60,000 from an NGO on the sale of such goods and the price mentioned above of ₹ 9,00,000 is after taking into account the subsidy so received. A discount of 1% is also offered by Nisha Enterprises as being mentioned on the invoice.
Determine the value of supply as per the provision of the CGST Act, 2017.
The value of supply being made to DK Enterprises by Nisha Enterprises shall be as under:-
Particulars
Amount ( ₹ )
Price of supply charged
9,00,000
Add :
Tax charged by Municipal Authorities
90,000
Packing Charges
25,000
Subsidy from NGO
60,000
Total Value
10,75,000
Less : Discount @ 1% of 9,00,000/-
9,000
Value of Supply
10,66,000
Notes:
1.CGST and SGST is not to be included in the determination of value of supply since the tax is charged post determination of that value.
2.Subsidy since received from a non-government body is to be added back to determine the value of supply.
Source: ICSI Guideline Answers, December 2018, Q. 5(e) (Syllabus 2017).
December 2018Q. 6(d)3 marksSyllabus 2017
(d)Explain the meaning of the term “Pure agent” for CGST purposes.
The expression “pure agent” for CGST purposes means a person who :
(i)enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;
(ii)neither intends to hold nor holds any title to the goods or services or both so procured or supplied and does not use for his own interest such goods or services so procured; and
(iii)receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.
Source: ICSI Guideline Answers, December 2018, Q. 6(d) (Syllabus 2017).
June 2026Q. 6(a)5 marksSyllabus 2022
(a)Banshi Lal & Co., a firm of Tax Consultants, issued invoice for services rendered to Mr. Amit on 7th September, 2025. Determine the time of supply in the following independent cases in the context on CGST Act, 2017 :
(i)The provision of service was completed on 1st August, 2025 and payment was received on 28th September, 2025.
(ii)The provision of service was completed on 14th August, 2025 and payment was received on 29th September, 2025.
(iii)The provision of service was remaining to be completed. However. Mr. Amit made the advance payment on 13th August, 2025.
As per section 13, the time of supply of services taxable under forward charge is
(a)date of issue of invoice or date of receipt of payment, whichever is earlier, if the same is issued within 30 days from the date of supply of service; or
(b)date of provision of service or date of receipt of payment, whichever is earlier, if the invoice is not issued within 30 days from the date supply of service; or
(c)date of receipt of payment would be the earlier of the following in a case where the provisions of clause (a) or clause (b) do not apply. For date of receipt of payment date of credit in the bank account or the date of entry in the books of account, whichever is earlier.
In accordance with the aforesaid provisions, the time of supply in the three independent cases will be:
(1)
1st August, 2025 since the invoice is not issued within 30 days of supply of service.
(2)
7th September, 2025 since the invoice is issued within 30 days of supply of service and the payment is received after the issuance of invoice.
(3)
13th August, 2025 viz., earlier of date of issuance of invoice (7th September, 2025) or date of receipt of payment 13th August, 2025)
Source: ICSI Guideline Answers, June 2026, Q. 6(a) (Syllabus 2022).
June 2026Q. 6A(iii)5 marksSyllabus 2022
(iii)GST is payable on advance received for supply of goods and services taxable under forward charge. Explain this statement along with correct legal provisions as per GST Law.
The statement is not correct.
While GST is payable on advance received for supply of services taxable under forward charge, the same is not payable in case of advance received for supply of goods taxable under forward charge.
As per section 13, the time of supply of services taxable under forward charge is
(a)date of issue of invoice or date of receipt of payment, whichever is earlier, if the same is issued within 30 days from the date of supply of service; or
(b)date of provision of service or date of receipt of payment, whichever is earlier, if the invoice is not issued within 30 days from the date supply of service; or
(c)date of receipt of payment would be the earlier of the following in a case where the provisions of clause (a) or clause (b) do not apply:
–date of credit in the bank account or
–the date of entry in the books of account, whichever is earlier.
Thus, in case of services, if the supplier receives any payment before the provision of service or before the issuance of invoice for such service, the time of supply gets fixed at that point in time and the liability to pay tax such payment arises. However, the tax can be paid by the due date prescribed with reference to such time of supply.
As regards time of supply of goods taxable under forward charge concerned, Notification No. 66/2017 CT dated 15.11.2017 provides that registered person (excluding composition supplier and registered person making supply of specified actionable claims) should pay GST on the outward supply of goods at the time of supply as specified in section 12(2),
i.e. date of issue of invoice or the last date on which invoice ought to have been issued in terms of section 31
Therefore, in case of goods, tax is not payable on receipt of advance payment.
Source: ICSI Guideline Answers, June 2026, Q. 6A(iii) (Syllabus 2022).
December 2024Q. 701 markMCQSyllabus 2017
Date of Actual Provision of Service 10.12.2023, Date of Invoice 30.12.2023, Date on which the payment was received 15.12.2023. The time of supply under section 13(2) of CGST will be :
Mr. K has supplied goods to Mr. L on 24-12-2023. The invoice had already been raised on 22-12-2023. Mr. L has paid the due amount on 29-12-2023. The receipt was entered in the books of accounts by Mr. K on 30-12-2023. But the amount was credited in his bank on 02-01-2024. What is the time of supply in this case ?
( a )Determine the time of supply under the GST provisions in the following situations :
(i)X & Co., a registered supplier, rendered taxable service for ₹ 90,000 on 15-08-2023. Invoice was issued on 10-09-2023, 50% of Payment was received on 05-09-2023 and balance 50% received on 05-10-2023.
(ii)Lalit purchased some goods covered under reverse charge mechanism. The
(iii)goods received on 15-07-2023, date of invoice is 20-06-2023 and the payment is made on 25-07-2023.Sujata engineering services received advance of ₹ 50,000 from clients on 27-12-2023 for service to be rendered on 01-04-2024.
(iv)PQR Ltd entered into an arrangement with ₹ Fashion Mart’ and bought vouchers on 15-03-2024. It distributed these vouchers with denomination of ₹ 5,000 each to every employee on 20-03-2024 and the vouchers were valid till 30-04-2024 for purchase of any garment of their choice. The employees used the vouchers before the said date i.e., 30-04-2024.
(v)Manoj bought a voucher from Shoppers Paradise for ₹ 10,000 and gifted to Arun on 28-03-2024. The voucher was valid for purchase of any item in the shop but valid till 27-04-2024. Arun redeemed the vouchers at the nearby Shoppers Paradise on 20- 04-2024.
S.
Time of
Reason
No.
Supply
₹ TOS’
(i)
05.09.2023
For Payment of 50% i.e. Rs. 45,000 received on 05.09.2023
In this case Invoice is issued within 30 days from the date of providing service.
Hence Time of supply is (a) Date of Invoice, or (b) date of receipt of payment;
whichever is earlier.
10.09.2023
For Payment of 50% i.e. Rs. 45,000 received on 05.10.2023
In this case Invoice is issued within 30 days from the date of providing service.
Hence Time of supply is (a) Date of Invoice, or (b) date of receipt of payment;
whichever is earlier.
(ii)
15-07-2023
Time of supply in case of Reverse Charge Mechanism ₹ RCM’ is (a) date
of receipt of goods; or (b) date of payment; or (c) the date immediately
Date of
following 30 days from the date of issue of invoice whichever is earlier.
goods
received
(iii)
27-12-2023
Time of supply for advance exceed 1000 is on the date when advance money is actually received.
(iv)
15-03-2024
Time of supply for voucher: When the supply is identifiable at the point of issue of vouchers, the Time of supply of voucher is the date of issue of voucher. When the supply is not identifiable at the point of issue of vouchers, the Time of supply of voucher is the date of Redemption of voucher. Note: Questions says voucher can be redeemed against the purchase of any garments but does not specify which garments and different garments may have different GST Rates. So, it is assumed that the purchase of garments is identifiable.
(v)
20-04-2024
In this case, the supply was not identifiable at the point of issue of vouchers as Arun can purchase anything from Shoppers Paradise. Therefore, the time of supply would be the date of redemption of voucher.
Source: ICSI Guideline Answers, June 2024, Q. 6(a) (Syllabus 2022).
December 2023Q. 871 markMCQSyllabus 2017
In case of goods supplied on ‘‘approval for sale/return basis’’, the due date for issue of invoice is :
A an advocate provided legal consultancy services to B for a consideration of 50,000 on 14th August, 2023. There was a change in the rate of GST from 20th August, 2023. In this case, if the invoice and the payment for the supply were received after 20 th August, 2023, the time of supply shall be :
December 2023Q. 5(b)5 marksSyllabus 2022Law changed
Law changed after this attempt: GST rates were restructured with effect from 22 September 2025 (Notification No. 09/2025-Central Tax (Rate)), so the rates used here may have changed. (ICSI Supplement, December 2026). The answer below reflects the law as it stood for December 2023.
Show the facts common to all parts of Q. 5
MNO & Co, a Partnership firm, is engaged in the manufacturing of equipment in the State of Gujarat. The firm became liable for registration under GST on 14th July, 2022. It applied for registration on 14th August, 2022 and was granted registration certificate by department on 18th August, 2022.
MNO & Co. supplied goods to Vikram Ltd. The terms of the contract stipulated that goods are delivered to the factory of Vikram Ltd. Goods were removed from the factory of MNO & Co. on November 9, 2022 and were delivered to the factory of Vikram Ltd. on November 15, 2022. Invoice was issued on November 18, 2022 and payment was credited to MNO & Co’s account on December 20, 2022. However, the entry was made in the books when the cheque was received, that is on November 19, 2022.
MNO & Co, is dealing in taxable as well as exempted items. MNO & Co. has provided following information of a consignment which is to be supplied:
S. No.
Particulars
Amount (₹)
(i)
Taxable value of supplies indicated on tax invoice
28,000
(ii)
Value of exempted supplies shown separately in tax invoice in S No. (i) above
13,000
(iii)
Value of goods to be sent to job worker on delivery challan
16,000
MNO & Co. has also exported some equipment by air. The FOB price of goods exported is US $ 60000. The shipping bill was presented electronically on 17th October, 2022 and proper officer passed order permitting clearance and loading of goods for export (Let Export Order) on 29th November, 2022. The rate of exchange notified by Central Board of Indirect taxes and Customs (CBIC) on 17th October, 2022 and 29th November, 2022 are 1 US $ = ₹ 78 and 1 US $ = ₹ 77 respectively. Other details are as follows :
Particulars
Date
Rate of Duty
Presentation of shipping bill
17th October, 2022
12%
Let Export Order
29th November, 2022
10%
Based on the facts of the case scenario given above, answer the following questions with reference to GST law and Custom Law :
(b)With reference to transaction with Vikram Ltd., determine the Time of Supply for the purpose of payment of Tax.
Particulars
As per Section 12(1) of Central Goods and Services Tax Act, 2017, the time of supply of goods shall be the earlier of the following dates, namely:—
a)the date of issue of invoice by the supplier or the last date on which he is required to issue invoice under section 31 of Central Goods and Services Tax Act, 2017;
b)The date on which the supplier receives the payment with respect to the supply.
However, advance received in respect of supply of goods is not liable to be taxed at the time of receipt vide Notification No. 66/2017 Central Tax dated 15.11.2017. Therefore, the date of payment in respect of supply of goods shall not be relevant for determining the time of supply.
Further, Section 31 of the Central Goods and Services Tax Act, 2017 provides that a registered person supplying taxable goods shall issue a tax invoice, before or at the time of, —
(a)removal of goods for supply to the recipient, where the supply involves movement of goods;
(b)Delivery of goods or making available thereof to the recipient, in any other case.
As per the above scenario, various dates are as under:
Actual date of issue of invoice
: November 18, 2022
Due date for issue of invoice
: November 09, 2022
(as supply involves movement of goods)
Date of receipt of payment
: November 19, 2022
(earlier of entry in books of accounts and credit made in the bank account)
Therefore, the time of supply would be the earliest of the above dates, that is, November 09, 2022.
Source: ICSI Guideline Answers, December 2023, Q. 5(b) (Syllabus 2022).
December 2022Q. 591 markMCQSyllabus 2017
The relief of not paying GST at the time of receipt of advance under forward charges is available in case of:
Domino’s Ltd. sold Pizza voucher worth ₹ 5,000 to its customer on 10th August, 2021, this voucher is not convertible into cash and only usable at Domino’s pizza outlet within one year. Customer redeems ₹ 3,500 of this voucher on 14th February, 2022 and balance ₹ 1,500 on 31st March, 2022 at Domino’s outlet. The time of supply in this case is :
(A)10th August, 2021 for ₹ 5,000
(B)14th February, 2022 for ₹ 5,000
(C)14th February, 2022 for ₹ 3,500 and 31st March, 2022 for ₹ 1,500
Where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, then what is the time of supply as per section 14 of the CGST Act, 2017?
(A)The time of supply will be date of receipt of payment or the date of issue of invoice, whichever is earlier
(B)Date of issue of invoice
(C)Date of receipt of payment
(D)None of the above
ICSI accepted any of these answers: (B) Date of issue of invoice; (C) Date of receipt of payment
Surya Enterprises received advance amount of ₹ 2,00,000 on 12-09-2020 from Ravi Kant against which invoice for the value of goods of ₹ 1,90,000 was issued on 16-09-2020. Balance amount of ₹ 10,000 on the request of Ravi Kant was to be adjusted in the next bill which was issued by Surya Enterprises on 03-10- 2020. The time of supply (TOS) for the amount of ₹ 10,000 under GST shall be.............................
Ajay Chandra an agriculturist supplies rawcotton to Bhilwara Textiles, manufacturers of Cotton Shirts. Details of events with date taken place in this transaction are :
Event
Date
(i) Placement of order for 2 Ton of Cotton
02.4.21
(ii) Bhilwara Textiles received goods
12.5.21
(iii) Invoice issued by Ajay Chandra
15.5.21
(iv)Payment by cheque made by buyer by recording in books of accounts 20.5.21
(v)Amount credited in bank account of Ajay Chandra and debited in bank of buyer 24.5.21
Time of supply (TOS) as per provisions of CGST Act, 2017 in this case would be ..........................
Determine the time of supply from the following particulars :
7th May
Booking of banquet hall, sum agreed ₹ 25,000
advance of ₹ 4,000 received
16th September
Function held in banquet hall
28th October
Invoice issued for ₹ 25,000, indicating balance of
₹ 21,000 payable
4th November
Balance payment of ₹ 21,000 received
(A)The time of supply of service to the extent of advance amount received is 7th May and the time of supply of service to the extent of the balance amount is 16th September
(B)The time of supply is 16th September for the all amount
(C)The time of supply is 28th October
(D)The time of supply is 4th November
Answer: (A) The time of supply of service to the extent of advance amount received is 7th May and the time of supply of service to the extent of the balance amount is 16th September
Q Ltd, Kanpur supplied goods to R Ltd. of Delhi. The goods were removed on 20.10.2020 and were delivered on 23.10.2020. The invoice was issued on 02.11.2020 and the payment for supply was received on 31.12.2020. What is the time of supply ?
Under section 14 of the CGST Act, 2017 where the payment has been received before the change in rate of tax but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the ----------
(A)date of issue of invoice
(B)date of receipt of payment
(C)(A) & (B) whichever is later
(D)date of supply of goods or services
ICSI accepted any of these answers: (A) date of issue of invoice; (B) date of receipt of payment
ATOZ Ltd supplied goods from its factory at Bikaner to PQR Ltd under a contract for the goods to be delivered at the factory of PQR Ltd located at Udaipur. The goods were removed on 9th September, 2019 from the factory of ATOZ Ltd and were delivered to the factory of PQR Ltd located at Udaipur on 15th September, 2019.
The invoice was issued on 18th September, 2019 and the payment was credited to the bank account of ATOZ Ltd on 20th October, 2019 for which the entry in the books was made on 19th Sept. 2019 when the cheque was received. The time of supply in this case will be ------
An advance of ₹ 75,000 was received on 25th August, 2019 against the services rendered on 12th September, 2019 for the total value of ₹ 3,00,000. Invoice was also issued on the same day being 12th September, 2019 and the balance payment of ₹ 2,25,000 was received on 18th September, 2019. The time of supply and the value of supply under CGST Act, 2017 shall be :
ICSI's note: The time of supply is earliest of issuance of invoice or receipt of payment. Therefore, in case of advance received for any supply, time of supply is fixed at the point when advance is received i.e. 25th August, 2019.
Nandita buys a voucher from Shoppers Stop on 14 February, 2020 for a value of ₹ 11,000 for giving as a gift to her brother having validity of the voucher for encashment till 03 March, 2020. The gift voucher so given by Nandita to her brother was redeemed by him on 1st March, 2020. The time of supply in this case shall be -----------
December 2020Q. 711 markMCQSyllabus 2017Law changed
Law changed after this attempt: GST rates were restructured with effect from 22 September 2025 (Notification No. 09/2025-Central Tax (Rate)), so the rates used here may have changed. (ICSI Supplement, December 2026). The answer below reflects the law as it stood for December 2020.
A machine which is taxable under GST at the rate of 18% was supplied on 10- 06-2019 for which invoice was issued by the supplier on 03-08-2019 and payment was received on 10-08-2019. The rate of tax on the machine meanwhile was changed to 12% wef 01-08-2019. The supply of machine shall be charged to tax under GST at the rate of ---------
(A)12%
(B)15%
(C)(18-12) = 6%
(D)18%
Answer: (A) 12%
ICSI's note: The rate of tax on the machine on August 01, 2019 will be considered in this case.
Mani dispatched goods to Prasad on 31-10-2018. The invoice is dated 30-10- 2018. The goods were received by Prasad on 3-11-2018. The amount towards supply was received by Mani on 1-10-2018. The time of supply would be :
What is the time of supply of service in the following case :
Date of issue of invoice 31-12-2018; Date of receipt of payment by supplier of service 20-12-2018; Date of provision of service 25-11-2018; and date of order 30-12-2018.
ABC Ltd., supplied goods to XYZ Ltd. under a contract for the goods to be delivered to the factory of XYZ Ltd. The goods were removed from the factory of ABC Ltd. on 9th September, 2018 and the goods were delivered to the factory of XYZ Ltd. on 15th September, 2018.
The invoice was issued on 18th September, 2018 and the payment was credited to ABC’s account on 20th Oct., 2018 although the entry in the books was made on 19th Sept., 2018 when the cheque was received. The time of supply in this case will be :
ABC Ltd. of Mumbai supplied goods to XYZ Ltd. of Delhi under a contract for the goods to be delivered at the factory of the buyers. Goods removed from the factory of ABC Ltd. on 09-08-2018 and were delivered in the factory of XYZ Ltd. of Delhi on 16-08-2018. Invoice for the supplies was raised by ABC Ltd. on 18- 08-2018. Payment of the bill was received on 20-09-2018. The time of supply in this case under GST be taken as :
The time of supply ‘‘where goods or services or both have been supplied in a situation where the invoice issued before the change in the rate of tax but payment received after the change in rate of tax’’ as per section 14 of the CGST Act, 2017 shall be :
(A)Date of issue of invoice
(B)Date of receipt of payment or the date of issue of invoice whichever is earlier
(C)Date of receipt of payment
(D)None of the above
ICSI accepted any of these answers: (A) Date of issue of invoice; (C) Date of receipt of payment
ICSI's note: If the actual time of supply is before the change in rate of tax, then option A is correct whereas if actual time of supply falls after the change in rate of tax, then option C is correct.
(ii)Samodia Trading Company, a registered supplier, is liable to pay GST under forward charge mechanism. Determine the time of supply from the following information furnished by the firm Samodia Trading Company :
(a)Goods supplied on 3rd May, 2018;
(b)Invoice issued on 3rd May, 2018;
(c)Payment received on 9th May, 2018;
Provisions involved are to be explained briefly.
As per section 12 of CGST Act, 2017, the time of supply of goods, tax on which is payable under forward charge, is the earlier of the following two dates:
Date of issue of invoice or last date on which the invoice is required to be issued.
A registered person is further required to issue a tax invoice before or at the time of removal of goods for supply to the recipient. Thus, in the given case, the invoice for supply of goods should have been issued on or before the removal of goods i.e. on 03.05.2018.
Thus, the time of supply of the goods will be 03.05.2018.
Source: ICSI Guideline Answers, December 2018, Q. 6A(ii) (Syllabus 2017).
December 2025Q. 6(b)5 marksSyllabus 2022
(b)Ramesh, a registered supplier in Delhi, enters into a contract to supply and install an air conditioning system in a Royal Garden Hotel located in Punjab. The air conditioning system is assembled at the site using various components, and installation requires civil work, wiring, and testing. The total value of the contract is ₹ 12,00,000.
Accountant of Ramesh argues that since he is supplying goods (air conditioning units), the supply should be treated as an Inter-State supply of goods from Delhi to Punjab, and IGST should be charged. As a tax consultant you are required to determine whether this transaction is a supply of goods or supply of services ? Also determine the place of supply and nature of the supply for the above transaction under GST Law.
(i)Nature of Supply: Goods or Services?
This is a works contract involving supply of goods along with installation, testing, and civil work, which makes it a composite supply.
As per Section 2(119) of the CGST Act, a works contract involving immovable property is treated as supply of services. Hence, this is a supply of service.
(ii)Place of Supply:
As per Section 12(3) (a) of the IGST Act, when the supply involves immovable property, the place of supply is the location of the immovable property.
Here, the hotel (immovable property) is located in Punjab. So, the place of supply is Punjab.
(iii)Nature of Supply and Tax to be Charged:
Mr. Ramesh is registered in Delhi and the place of supply is Punjab. Since supplier and place of supply are in different States, this is an inter-State supply. Therefore, IGST is chargeable.
Source: ICSI Guideline Answers, December 2025, Q. 6(b) (Syllabus 2022).
June 2025Q. 6(a)6 marksSyllabus 2022
( a )Determine the place of supply with reference to the GST Law in the following independent cases :
(i)Mr. Joy Jacob, an unregistered person of Asansol, West Bengal sends a courier through Kolkata, West Bengal based Mohan Bhai Courier Agency to his sister in Mumbai, Maharashtra.
(ii)Mr. Mitin, an unregistered person, resides at Bhopal, Madhya Pradesh books a two-way air journey ticket from Prayagraj, Uttar Pradesh to Jaipur, Rajasthan on 6th September and back. He leaves Prayagraj on 11th September in a morning flight and lands in Jaipur the same day. He leaves Jaipur on 15th September in a late-night flight and lands in Prayagraj on the next day.
(iii)Rim Shum Pvt. Ltd., located at Lucknow, Uttar Pradesh, purchases a manufacturing machine from Manavsri Steel Industries Ltd., located at Jaipur, Rajasthan, for being installed in its factory located at Haridwar, Uttarakhand.
S. No.
Particulars
(i)
The place of supply of services by way of transportation of goods by courier provided to an unregistered person is the location at which such goods are handed over for their transportation. Therefore, the place of supply, in the given case is Kolkata, West Bengal.
(ii)
The place of supply of passenger transportation service to an unregistered person is place where the passenger embarks on the conveyance for a continuous journey. Further, as per explanation, in case of continuous journey, the return journey is treated as a separate journey, even if the tickets for onward and return journey is issued at the same time. Therefore, the place of supply for the outward and return journey are the locations where Mr. Mitin embarked on the conveyance for the continuous journey. Therefore, the place of supply in first case is Prayagraj, Uttar Pradesh for outward journey, and Jaipur, Rajasthan, for return journey.
(iii)
If the supply involves goods which are to be installed at site, the place of supply is the place of such installation. Therefore, the place of supply, in the given case is Haridwar, Uttarakhand.
Source: ICSI Guideline Answers, June 2025, Q. 6(a) (Syllabus 2022).
December 2024Q. 961 markMCQSyllabus 2017
ABC Consultants, registered at Delhi provides GST training to employees of Sanjay & Co. at Mathura, Uttar Pradesh. Sanjay & Co. is unregistered under GST Act. In this case, which is the place of supply?
(i)With reference to GST law, determine the place of supply with reasons in the following independent circumstances :
(a)TJ Mart is a famous super market, a registered supplier in Hubli, Karnataka. On 18th March, 2024, Kunal, a walk-in-customer not registered under the GST law, has purchased goods and has arranged for transport of these to Maharashtra. The practice of the taxpayer is not to record the full address of walk-in-customers, but to issue cash invoice for the supply.
(b)HJ Bank, Trivandrum Branch, Kerala, having core banking services, has issued two demand drafts (DD) to two customers and has collected GST from them : One J, located at Chennai, an existing customer of Chennai branch, and K, a walk-in-customer.
Place of supply
(a)As per the IGST (Amendment) Act, 2023, where supply is made by a registered person to an unregistered person, the place of supply shall be the address as recorded in the invoice and where no address is recorded, the location of the registered person.
Hence in the given situation, the place of supply will be Karnataka. The goods were moved to Maharashtra, is immaterial.
(b)Where a bank has supplied goods to a customer, the place of supply will be as per the records of the bank. In case there is no record pertaining to such customer, the place of supply will be the location of the registered office of the bank.
Since Mr. J is an existing customer and his address is available with the bank, the place of supply will be the location of the customer. Hence it will be Tamil Nadu (Chennai).
Mr. K being a walk-in-customer, since there will be no records, the place of supply will be Kerala (Trivandrum Branch).
Source: ICSI Guideline Answers, December 2024, Q. 6A(i) (Syllabus 2022).
June 2024Q. 521 markMCQSyllabus 2017
Mr. P is travelling from Kolkata to Andaman through flight. He watches a movie on demand on payment basis. The place of supply under GST Law will be :
Mr. Y purchases a machine from Mr. Z (both are from Delhi) the machine however needs to be installed in Haryana, the place of supply under GST in this case shall be :
Nathan is a resident of Chennai working in Hyderabad travelled to Cochin for business purposes and booked a ticket for an event there in Cochin performed by a team from Delhi. In this case the place of supply is :
(iv)GMEGA Events, an event management company registered under CGST Act, 2017 at Mumbai, organizes a marriage function for Rakesh of Hubli (Karnataka). Determine the place of supply as per IGST Act, 2017 in the following independent cases :
(i)If Rakesh is registered at Hubli (Karnataka) and function held at London.
(ii)If Rakesh is registered at Hubli (Karnataka) and function held at New Delhi.
(iii)If Rakesh is unregistered person and function held at New Delhi.
(iv)If Rakesh is unregistered person and function held at London.
Sr. No.
Place of Supply
Provisions
(i)
Hubli
For supplies related to organization of events or
(Karnataka)
assigning sponsorship to such events, when such service
is provided to a registered person, the place of supply is
location of recipient. Since recipient is registered at Hubli, the place of supply shall be Hubli (Karnataka).
(ii)
Hubli
If Recipient is registered, the place of supply is location
(Karnataka)
of recipient. So the place of supply shall be Hubli
(Karnataka), here event is not relevant.
(iii)
New Delhi
When it is provided to an unregistered person, the place of supply is the location where the event is actually held in India. The recipient being an unregistered person, the place of supply is the location where the event is held i.e., New Delhi.
(iv)
Hubli
When it is provided to an unregistered person, and if the
(Karnataka)
event is held outside India, the place of supply is the
location of recipient.
The recipient being an unregistered person and the event
held outside India, the place of supply is the location of
the recipient i.e., Hubli (Karnataka) and not the location
Source: ICSI Guideline Answers, December 2023, Q. 6A(iv) (Syllabus 2022).
June 2023Q. 641 markMCQSyllabus 2017
James Co. Ltd., Cochin solicited the catering services of Jindal Caterers of Mumbai for the silver jubilee celebrations organized at Delhi. Jindal Caterers having branch in Chennai and Bengaluru deputed those staff for supply of service. Where does the place of supply happen in this case?
Mega Ltd, of Mumbai solicited the services of Jai & Co. of Delhi being the interior decorators for the new office building located at Chennai. The branch of Jai & Co., Kolkata deputed the staff for executing the work. Where does the place of supply remain in respect of the transaction?
Indigo Airlines sells various products of packed food, chocolate etc. to its passengers on board during the flights. The flight originates from Delhi, halts at Mumbai and finally lands in Chennai. What would be the place of supply of such product as per Section 10 of IGST Act, 2017?
(A)Delhi
(B)Chennai
(C)Location where passengers buying goods disembark
(D)Location where goods were taken on board
Answer: (D) Location where goods were taken on board
Srikar of Hyderabad, purchased goods for ₹ 12,00,000 from Arnav of Mumbai and hold the goods at the location of supplier at Delhi. Which shall be the place of supply in such a case :
Tanishqa of Delhi provides repair and maintenance services of machinery to Harika in Goa. Harika was registered in Orissa. What shall be the place of supply in respect of repair and maintenance services :
What is the place of supply of services, in case of services by way of admission to a culture, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto under section 12 of the Integrated GST Act, 2017 ?
JCC Professional Services is a firm constituted by Company Secretaries having office at Jaipur has been engaged by PQR International Ltd Mumbai for providing training to its employees working in Nagpur office. The place of supply (POS) in this case shall be ....................... and tax would be charged by JCC Professional Services under.............. . (Assuming that the client was unregistered)
Madhu Sudan of Kota an unregistered person engages Wedding Event Company registered at Delhi for a destination marriage of her daughter Radhika to be solemnized in November, 2021 at Royal Palace of Jam Nagar, Gujarat. State and find out the place of services (POS) as per provisions of IGST Act, 2017 in this case.
Mrs. Mallick, an unregistered person, from Mumbai, has an account with a bank at Mumbai. She is on a vacation in Rajasthan and visits a bank for getting a demand draft made. The place of supply in such case shall be _________.
Dhoni & Co., Delhi placed order with Rahul Trade LLP., Bengaluru for supply of 40 laptops to be delivered to its branch at Chennai. The supplier Rahul Trade LLP directed its branch in Coimbatore to deliver the same. What is the place of supply in this case ?
Note : Chennai and Coimbatore are in the same State of Tamil Nadu.
Chennai Branch of BA Trainers Ltd rendered training to employees of CD Co. Ltd. of Hyderabad at Lonawala near Pune (Maharashtra). The head office of BA Trainers is located in Kolkata. Where is the place of supply of services ?
The place of supply (POS) as per section 10 of the IGST Act, 2017 in case of where supply not involving movement of goods whether by the supplier or the recipient shall be ------------.
(A)location of such goods at the time at which the movement of goods terminates for delivery to the recipient
(B)deemed that the third person has received such goods and principal place of business of such person shall be the place of supply
(C)location at which such goods are taken on conveyance
(D)location of such goods at the time of the delivery to the recipient
Answer: (D) location of such goods at the time of the delivery to the recipient
Ramiz Ahmed, unregistered person based in Lucknow engages the services of an Event Management Company based in Delhi for his son marriage planned as a destination wedding at a Palace located in Jaipur. The place of supply in this case shall be ---- and tax to be charged under ---------
The place of supply (POS), in the case of passenger transportation services as defined in section 12(9) of the IGST Act, 2017 provided to a registered person shall be the ------
(A)location of service provider
(B)location of such registered person
(C)place where the passenger disembarks from the conveyance
(D)place where the passenger embarks on the conveyance
Answer: (D) place where the passenger embarks on the conveyance
Ram & Company of Delhi has taken a contract to supply of food in New Delhi- Mumbai Rajdhani Express and the supplies of food in the train are being taken on board at Kota in Rajasthan from Agarwal Food & Caterers. The place of supply in such case shall be ............................ .
Mr. Ravi Raj a registered person based in Ahmedabad solicits the services of an Event Management Company based in Mumbai for his daughter’s marriage planned as a destination wedding at a Palace located in Udaipur. The place of supply in this case shall be ....................... and tax to be charged under...................... .
(b)Determine the place of supply of goods/services in the following cases as per the provisions of the Integrated Goods and Services Tax (IGST) Act, 2017 :
(i)X Ltd., of Mumbai assembles its machinery for Z of Chennai at Bengaluru.
(ii)JJ Paints Ltd., exported paints to London from Ahmadabad.
(iii)HRD Ltd., Hyderabad provides training and performance appraisal services at Varanasi to the employees of KK Ltd., an unregistered entity located in Patna.
(iv)Y of Rajasthan sells car to ABC Ltd. at Surat of Gujarat.
Place of Supply of goods/ services
(i)As per section 10(1)(d) of IGST Act, 2017 where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly.
In this case, as the machinery is assembled at Bengaluru, therefore, the place of supply is Bengaluru.
(ii)As per section 11(b) of IGST Act, 2017 the place of supply of exported goods from India shall be the location outside India.
In the present case, as JJ Paints Ltd., exported paints to London, therefore, the place of supply is London.
(iii)As per section 12(5) of IGST Act, 2017 the place of supply of services in relation to training and performance appraisal to a person other than a registered person, shall be the location where the services are actually performed.
In the present case, as training and performance appraisal service is provided at Varanasi, therefore, the place of supply is Varanasi.
(iv)As per section 10(1)(a) of IGST Act, 2017 the place of supply of goods, where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient.
In the present case as the goods are delivered at Surat, therefore, the place of supply is Surat.
Source: ICSI Guideline Answers, June 2019, Q. 4(b) (Syllabus 2017).
December 2025Q. 5(a)6 marksSyllabus 2022Law changed
Law changed after this attempt: GST rates were restructured with effect from 22 September 2025 (Notification No. 09/2025-Central Tax (Rate)), so the rates used here may have changed. Individual life and health insurance services were exempted from GST from 22 September 2025 (Notification No. 16/2025-Central Tax (Rate)). (ICSI Supplement, December 2026). The answer below reflects the law as it stood for December 2025.
Show the facts common to all parts of Q. 5
M/s Optitech Solutions Pvt. Ltd., a registered supplier in Mumbai, Maharashtra, is engaged in manufacturing electronic appliances and providing IT support services. The company furnishes the following details for the month of August, 2025.
PART A : Outward Supplies
1.Supply of AC units worth ₹ 12,00,000 to a registered dealer in Gujarat. Freight of ₹ 70,000 was also charged in Invoice separately for delivery (arranged by Optitech). GST Rate on AC is 28% and GST Rate on Freight is 18%.
2.Supplied a combo pack of :
l Smart TV ( ₹ 25,000) - GST @ 18%
l Bluetooth Speaker ( ₹ 4,000) - GST @ 18%
l Wall Mount Kit ( ₹ 1,000) - GST @ 12%
Sold as a combo for ₹ 28,000 in Maharashtra (no separate prices).
3.Provided software support services to a client in USA. Service value : ₹ 5,00,000. Exported under LUT without payment of tax. Amount received in convertible foreign exchange.
4.Supplied diagnostic equipment worth ₹ 2,00,000 to a Government Hospital in Mumbai without any consideration under CSR. ITC on such goods was claimed earlier.
5.Provided IT consulting services in Delhi worth ₹ 3,50,000. GST @ 18%. The client deducted TDS under Income Tax Act while paying.
6.Supplied laptops value ₹ 4,00,000 to an SEZ unit in Tamil Nadu against bond without payment of tax. GST Rate on laptop is 18%.
PART B : Inward Supplies
1.Purchased raw materials from a registered supplier in Maharashtra worth ₹ 5,00,000. GST @ 18%. Goods received and recorded in books on 25th August, 2025.
2.Purchased a car for ₹ 8,00,000 + 28% GST for director’s official and personal use.
3.Rent paid to registered supplier in Mumbai of ₹ 1,50,000 for commercial premises in Mumbai. GST @ 18%.
4.Paid ₹ 80,000 for legal services received from an unregistered Individual advocate located in Mumbai. No GST charged by him.
5.Procured health insurance for all factory employees, payment being optional, it is not mandatory under any law; Premium paid ₹ 60,000 + 18% GST.
Additional Information :
(1)Both the inward and outward supplies given above are exclusive of GST unless stated otherwise.
(2)Rate of CGST, SGST and IGST is to be charged 9%, 9% and 18% respectively where no specific rate is provided.
(3)All the conditions necessary for availing the ITC have been fulfilled except mentioned above.
Based on the above information, you are required to answer the following questions with reference to GST Law :
(a)Compute the value of Taxable Outward Supplies under the GST for M/s Optitech Solutions Pvt. Ltd. for the month of August, 2025.
Computation of Value of Taxable Outward Supply for August, 2025
Particulars
Amount (₹)
Supply of AC along with Freight (Freight included in value as composite supply)
12,70,000
Supplied a combo pack (Treated as Mixed Supply)
28,000
Software support services provided in USA (Export of service under LUT treated as zero rated supply)
Nil
Particulars
Amount (₹)
Supplied diagnostic equipment under CSR (Since ITC Claimed, it is deemed supply)
2,00,000
Provided IT consulting services in Delhi
3,50,000
Supplied laptops to an SEZ unit (Supply to SEZ without payment of tax, treated as zero rated supply)
Nil
Taxable Outward Supply
18,48,000
Source: ICSI Guideline Answers, December 2025, Q. 5(a) (Syllabus 2022).
December 2024Q. 601 markMCQSyllabus 2017
Mr. X sells good to Mr. Y for ₹ 70,000 on 01.08.2024 with a term that payment will be done on 15.08.2024. The condition was imposed that if Mr. Y did not able to pay by 15.08.2024 he will be liable to pay a penalty of ₹ 15 per day basis. Mr. Y made the payment on 28.08.2024 which was accepted by Mr. X. What will be the value of this transaction under GST ?
June 2026, Q. 5(a) · Compute the value of Output Tax Liability under GST for M/s Khatri Electronics Pvt. (Ch. 18)
June 2025, Q. 6(c) · Ravindra Rao, a registered person in Indore, Madhya Pradesh has provided the following information regarding outward transactions made durin… (Ch. 20)
December 2024, Q. 63 · In case of continuous supply of service where the payment is linked to the completion of the event, the invoice must be issued : (Ch. 19)
June 2024, Q. 6(c) · Determine the Value of Supply with reference to the provisions of the CGST Act, 2017 for the following independent cases : (Ch. 16)
June 2024, Q. 53 · Mr. P supplies raw cotton (under Reverse Charge of GST) to Mr. (Ch. 16)
December 2023, Q. 79 · In IGST Act a supply of service is considered as ‘‘Import of Service’’ when : (Ch. 16)
December 2023, Q. 88 · AVM Sounds Ltd. entered into a contract to purchase the copyright of a music album of Priyam, a music composer. (Ch. 16)
June 2023, Q. 76 · Moon Ltd purchased cotton from agriculturists in respect of which it has to pay GST under reverse charge mechanism. (Ch. 16)
December 2022, Q. 81 · Rajendra is registered dealer under GST, supplied the exempted goods to his customer within state, in this case he shall issue: (Ch. 19)
December 2021, Q. 86 · Determine the time of supply in the following case assuming that GST is payable under reverse charge : (Ch. 16)
June 2021, Q. 61 · What is the time of supply in the case of reverse charge mechanism ? (Ch. 16)
June 2019, Q. 6(c) · Discuss valuation rules under section 14 of the Customs Act, 1962. (Ch. 20)
June 2019, Q. 74 · When an unregistered dealer supplied goods to a registered dealer, the time of supply under reverse charge shall be earliest of the : (Ch. 16)