GSTAND CUSTOMS LAW | Ritika Gupta
VALUE OF SUPPLY - PRACTICE QUESTION
1. Black and White Pvt. Ltd. has provided the following particulars relating to goods sold by it toColorful Pvt. Ltd.
Particulars Amount
List price of the goods (exclusive of taxes and discounts) 50000
Tax levied by Municipal Authority on the sale of such goods 5000
CGST and SGST chargeable on the goods 10440
Packing charges (not included in price above) 1000
Black and White Pvt. Ltd. received Rs 2000 as a subsidy from an NGO on sale of such goods. Theprice of Rs
50,000 of the goods is after considering such subsidy.Black and White Ltd. offers 2% discount on the list price
of the goods which is recorded in the invoice for the goods. Determine the value of taxable supply made by
Black and White Pvt. Ltd.
2. Samriddhi Advertisers conceptualized and designed the advertising campaign for a new product launched by New
Moon Pvt Ltd. for a consideration of Rs 5,00,000. Samriddhi Advertisers owed Rs 20,000 to one of its vendors in
relation to the advertising service provided by it to New Moon Pvt Ltd. Such liability of Samriddhi Advertisers was
discharged by New Moon Pvt Ltd. New Moon Pvt Ltd. delayed the payment of consideration and thus, paid Rs
15,000 as interest. Assume the rate of GST to be 18%. Determine the value of taxable supply made by Samriddhi
Advertisers.
3. Red Pepper Ltd., Delhi, a registered supplier, is manufacturing taxable goods. It provides the following details of
taxable inter-State supply made by it for the month of March, 20XX.
Particulars Amount (Rs)
List price of goods supplied inter-state (exclusive of taxes) 15,00,000
Subsidy received from Central Government for supply of taxable goods to 2,10,000
Government School.
Subsidy received from a NGO for supply of taxable goods to an old age 50,000
Home
Tax levied by Municipal Authority 20,000
Packing charges 15,000
Late fee paid by the recipient of supply for delayed payment of invoice 6,000
The list price of the goods takes into account the two subsidies received. However, the other charges/taxes/fee
are charged to the customers over and above the list price. Calculate the valueof taxable supply made by M/s
Red Pepper Ltd. for the month of March, 20XX. Rate of IGST is 18%.
4. A manufacturer of machinery supplied a special machine to Modern Furnishers. Following detailsare provided in
relation to amounts charged:
S. No. Particulars Rs.
(i) Price of machinery excluding taxes (before cash discount) 5,00,000
Additional charges not included above:-
(ii) Freight 13,000
(iii) Packing charges 10,000
(iv) Charges for designing the machine 17,000
CS Ritika Gupta, Assistant Professor, Department of Commerce, Satyawati College (Eve.)
Contact: ritikagupta.commerce@satyawatie.du.ac.in 1
GSTAND CUSTOMS LAW | Ritika Gupta
Other information furnished is -
Cash discount @ 2% on price of machinery has been allowed to the customer at the time ofsupply and also
recorded in invoice.
GST rate – 18%.
Calculate value of supply of the special machine.
5. Candy Blue Ltd., Mumbai, a registered supplier, is manufacturing Chocolates and Biscuits. It provides the
following details of taxable inter-state supply made by it for the month of October, 2017.
Particulars Amount in
(Rs)
The list price of goods supplied inter-state 12,40,000
Items already adjusted in the price given in (i) above:
a) Subsidy from CG for the supply of biscuits to theGovernment School. 1,20,000
b) Subsidy from the Trade Association for the supply of quality biscuits.Items
not adjusted in the price given in (i) above: 30,000
c) Tax levied by Municipal Authority 24,000
d) Packing Charges 12,000
e) Late fee paid by the recipient of supply for delayed payment ofaninvoice 5,000
Calculate the value of taxable supply made by M/s Candy Blue Ltd. for the month of October2017.
6. Vayu Ltd. provides you the following particulars relating to goods supplied by it to Agni Ltd.:
Particulars Rs
List price of the goods (exclusive of Taxes and discounts). 76,000
Special packing at the request of customer to be charged to the customer. 5,000
Duty levied by local authority on the sale of such goods. 4,000
CGST and SGST charged in invoice. 14,400
Subsidy received from an NGO (The price of Rs 76,000 given above is 5,000
after considering the subsidy)
Vayu Ltd. offers 3% discount of the list price of the goods which is recorded in the invoice for the goods.
Determine the value of taxable supplies made by Vayu Ltd.
7. Dev Enterprises is the supplier of water coolers. Dev Enterprises supplied water coolers to an unrelated party,
Vimal Traders for consideration of ₹ 2,95,000 (inclusive of GST @ 18%). Vimal Traders also gave some materials to
Dev Enterprises [valuing ₹ 10,000 (exclusive of GST)] as consideration for such supply. At the same time, Dev
Enterprises has supplied the same goods to another unrelated person at price of ₹ 2,97,360 (inclusive of
GST@18%). You are required to:
a) Determine the value of goods supplied by Dev Enterprises to Vimal Traders.
b) What would your answer be if price of ₹ 2,97,360 is not available at the time of supply of goods to Vimal
Traders? Explain briefly.
CS Ritika Gupta, Assistant Professor, Department of Commerce, Satyawati College (Eve.)
Contact: ritikagupta.commerce@satyawatie.du.ac.in 2
GSTAND CUSTOMS LAW | Ritika Gupta
8. Calculate the value of supply of machine by a trader for following particulars:
Amounts (Rs.)
Invoice price (Exclusive of taxes and payments mentioned below) 55,000
Duty and cess levied by municipal authority (Other than GST) 5,500
Insurance charges for dispatch of final product 275
Packing charges 1200
Miscellaneous incidental expenses incurred by supplier before delivery 3225
Subsidy from private trust (but not passed on to buyer) 3000
Subsidy from NGO (passed on to buyer) 2000
Subsidy received from government (passed on to buyer) 6000
You are required to determine the value considering the provision of sec 15 of CGST Act, 2017.
[Ans: value of supply = Rs.67,200]
9. A Ltd. Export some goods to Wilson Inc. of USA. It received US $ 9000 as consideration for same and sold the
foreign currency @ Rs61 per US dollar. Compute the value of taxable supply of service if:
a) RBI reference rate for US Dollar is Rs.62 per dollar
b) RBI reference rate for US Dollar is not available.
[Ans: a) Rs.9000 b) Rs.5490]
10. The US $ 9000 are converted into UK £ 6200. The RBI reference rate at that time for US $ IS Rs.70 per US Dollar
and for UK £ is Rs. 100 per UK pound. Determine the Time of supply.
[Ans: vos = Rs.6200]
11. Mr. Ankit sells foreign currency to Money Charger Ltd. He converts US $20000 @ Rs 65 per US dollar to Indian
rupees. Compute the value of taxable supply of services under CGST rules 2017 if RBI reference rate for US dollar
is Rs 64.10 per US dollar.
[Rs. 18000][B.Com (H), 2018]
12. US$3000 are converted into UK £2,200. The RBI reference rate at that time for US$ is Rs.65 per US dollar and for
UK £ is Rs.85 per UK pound. What will be the value of supply?
[Rs.1870][B.Com (H), 2018]
13. LIC of India provides you with following information for the month of July 2018. You are required to compute value
of supply of service:
a) General policies : Total premium collected Rs. 12,000 lakhs (out of which 1st year premium is Rs5,000 lakhs)
b) Only risk cover policies : Premium Collected Rs. 500 lakhs
c) Variable Insurance Policies: Premium collected Rs.8000 lakhs. (80% of the amount allocated for investments
on behalf of policy holder for which policy holder is given separate break up in premium receipts).
[VOS (in lakhs): a) 2125, b) 500 c) 1600]
14. X Pvt. Ltd., a money changer, has exchanged US $ 10,000 to Indian rupees @ ₹ 74 per US $. X Pvt. Ltd. wants to
value the supply in accordance with rule 32(2)(b) of CGST Rules. Determine the value of supply made by X Pvt. Ltd.
15. Dua travels have sold air tickets for transport of passengers from various domestic flights during the month of
April 2018. The total amount charged is Rs.72,50,000 on the flight out of which Rs.7,20,000 is towards passengers
taxes. Determine the taxable supply?
CS Ritika Gupta, Assistant Professor, Department of Commerce, Satyawati College (Eve.)
Contact: ritikagupta.commerce@satyawatie.du.ac.in 3
