FINAL EXAMINATION SET - 1

MODEL QUESTION PAPER TERM – DECEMBER 2023

PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)

1. Choose the correct option: [15 x 2 =30]

(i) Under GST Act a supply of assortment of sweets, chocolates and firecrackers
packed in gift hamper is
a. Joint supply
b. Composite supply
c. Mixed supply
d. Assorted supply

(ii) What happens if the turnover of a registered person paying taxes under composition
scheme during the year 2022-23 crosses threshold limit?
a. He can continue under composition scheme till the end of the financial year.
b. He will be liable to pay tax at normal rates of GST on the entire turnover for
the financial year 2022-23
c. He will cease to remain under the composition scheme with immediate effect
d. He will cease to remain under the composition scheme from the quarter
following the quarter in which the aggregate turnover exceeds threshold limit

(iii) Mr. A has started intra-state supply of goods from Delhi. He is required to obtain
registration if his aggregate turnover exceeds___________ during a financial year.
a. ` 10 lakh
b. ` 20 lakh
c. ` 30 lakh
d. ` 40 lakh

(iv) Kesar Maharaj, a registered supplier, gave a classical dance performance in an

auditorium. The consideration charged for the said performance is ` 1,60,000. Such
performance is not for promotion of any product/services. Rate of CGST and SGST
on such services is 9% each. Assuming the services supplied by him to be intra
State supplies, which of the following statement are ture?
a. GST liability of Kesar Maharaj is Nil
b. Kesar Maharaj is liable to pay CGST and SGST of ` 14,400 and ` 14,400
respectively.
c. Kesar Maharaj is liable to pay CGST and SGST of `900 and `900
respectively.
d. None of the above.

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2023
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE

(v) Calculate Free on Board value from following: Ex-factory price of exporter- `
10,000; Expenses upto loading of goods by foreign exporter- ` 12,000. Post
importation cost- ` 8000:
a. ` 30,000
b. ` 22,000
c. ` 18,000
d. ` 22,250.

vi) Is E-way bill mandatory in case of transport of the handicraft goods from one State
to another State by a person who has been exempted from the requirement of
obtaining registration?
a. E-way Bill is not required as the supplier is exempt from the requirement of
obtaining registration.
b. E- way Bill is mandatory only if the value of consignment is more than
`50,000
c. E-way Bill is mandatory even if the value of consignment does not exceed
`50,000
d. None of the above

(vii) Mr. A purchase redeemable vouchers worth INR 8000/- on 1st January. The
vouchers are redeemable against purchase of any goods. The vouchers are valid till
30th June. What will be the time of supply in case of such vouchers?
a. 1st January
b. 30th June
c. The date of redemption of vouchers
d. None of the above.

(viii) What is the time limit for taking ITC on invoices pertaining to a financial year?
a. 180 days
b. 1 year
c. Due date of filling return for the month of September of the next financial
year or the date of filling annual return, whichever is earlier
d. No limit

(ix) Mr. Ram registered in Chennai has supplied goods to Kochi Fisheries Department,
for total contract value of ` 2,65,000 inclusive of 18% IGST. The tax to be deducted
at sources is (TDS on GST):
(a) Nil
(b) ` 2,650
(c) ` 5,300
(d) None of these

(x) The due date for filling GSTR – 6 (Return for input Service distribution) is _______
of the succeeding month.

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2023
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
a. 10
b. 13
c. 18
d. 20

(xi) GST is payable by the recipient under reverse charge on:

a. Sponsorship services
b. Transport of good by rail
c. Transport of passengers by air
d. All of the above

(xii) If any doubt arises in respect of interpretation of FTP, the said doubt should be
forwarded to __________:
a. CBIC
b. DGFT
c. Government
d. Courts.

(xiii) What is the General Free Allowance for passengers coming from Nepal by land
route?
a. Nil
b. ` 50,000
c. ` 15,000
d. ` 25000.

(xiv) At present manufacture, and other operations in which bonded warehouse is not
allowed?
a. Public Bonded Warehouse
b. Special Bonded warehouses
c. Only Private Bonded warehouse
d. Both (a) and (b).

(xv) Value of inputs covered by Advanced authorization ₹25 lakh. Export must be of
__________________ minimum value addition:
a. 100%
b. 15%
c. 20%
d. 50%

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2023
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
SECTION-B
(Answer any five questions out of seven questions given. Each question carries 14 Marks.)

2. (a) Explain the provisions relating to tax liability on Composite supply and mixed
supply. [7]

(b) Discuss non-resident taxable person? Analyze the provision relating to filling of
returns by non-resident taxable persons. [7]

3. (a) Well-Being Nursing Home has received the following amounts in the month of Jan
2023 in lieu of various services rendered by it in the same month. You are required
to determine its GST liability from the details furnished below:
Sl. Particulars (₹ in lakh)
No.
(i) Palliative care for terminally ill patients at patient’s home 30
(Palliative care is given to improve the quality of life of
patients who have a serious or life-threatening disease but
the goal of such care is not to cure the disease)
(ii) Services provided by cord blood bank unit of the nursing 24
home by way of preservation of stem cells
(iii) Hair transplant services 100
(iv) Ambulance services to transport critically ill patients from 12
various locations to nursing home
(v) Transportation of patients in an ambulance on behalf of the 10
State Governments against
consideration
(vi) Naturopathy treatments. 80
Such treatment is a recognized system of medicine in terms
of section 2(h) of the Clinical Establishments Act, 2010
(vii) Plastic surgery to restore anatomy of a child affected due 30
to an accident.
(viii) Pranic healing treatments. Such treatment is not a 120
recognized system of medicine in terms of section 2(h) of
the Clinical Establishments Act, 2010
(ix) Mortuary services 10

Note: All the amounts given above are exclusive of GST. Further, Well-Being
Nursing Home is registered person under GST. Applicable rate of GST 18%. All
transactions are at intra-State level. [7]

(b) Ram & Co., being a registered person under GST supplied the following in the
month of January 2023:
Particulars Value in ₹
Taxable supply of goods 20,00,000
Exempted supply of goods 5,00,000

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2023
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Sale of land 12,50,000
Recovery Agent services supplied to OK Bank 2,50,000
Deposit on which interest received 2,00,000
Total 42,00,000

Common inputs for the relevant tax period is ₹2,00,000.

GST applicable rate on outward supply of goods @ 28%
Compute the GST liability. [7]

4. (a) Briefly explain the concept of TDS and TCS under GST Law. [7]

(b) Explain “Related persons” and “distinct persons” under GST. [7]

5. (a) The Times Group being an event organizer located at New Delhi organized Miss
India 2022 beauty pageant in India in the following Cities for M/s Femina Miss
India a registered person located in Mumbai:

City No. of Days Fee in ₹

New Delhi 12 12 crores
Chennai 18 18 crores
Mumbai 20 20 crores
Total 50 50 crores

Determine the place of supply of service if contract specifies clear details.

Also determine the place of supply of service if contract specifies lump sum amount
of ₹48 crores. [7]

(b) M/s. Money Express Ltd., Jaipur is an authorized money changer registered under
FEMA, 1999. It enters into the following transactions of money changing:
(1) Sold 10,000 US $ @1 US $= ₹71
(2) Purchased 1,000 Euro @ 1 Euro = ₹ 7
(3) Purchased 1,000 GBP @ 1 GBP = ₹ 99
(4) Sold 50,000 units of currency ABC @ 1 ABC = ₹ 15
(5) Sold 9680 US $ for 6,8000 GBP
(6) RBI reference rate for the various currencies at the relevant time:
1US $ = ₹70
1 Euro = ₹ 71
1 GBP = ₹ 100
You are required to calculate value of taxable supply of service and tax thereon if
all charges are excusive GST. Applicable GST rate – 18%. [7]

6. (a) Briefly discuss Remission of Duties and Taxes on Export Promotion scheme
[RODTEP]. [7]

(b) Analyze the Concept of “Deemed exports” with reference to Foreign Trade Policy.
[7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2023
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE

7. (a) Mrs. A, a person of India origin, aged 40 years came to India to tour along with her
baby aged 1½ years. She carried with her following goods:
(1) Personal effects like clothes of Mrs. A valued at ₹ 40,000
(2) Used personal effects of infant valued at ₹ 60,000
(3) Laptop worth ₹ 65,000
(4) Travel souvenirs valued at ₹ 25,000
(5) 1 liter wine worth ₹ 5,000
(6) Mobile worth ₹ 20,000
(7) Digital camera ₹ 60,000
(8) Cigars 20 worth ₹ 1,340
Compute the customs duty payable. [7]

(b) Compute the assessable value and Custom duty payable from the following
information:
(i) FOB value of machine – 8,000 UK Pounds
(ii) Freight paid (air)- 2,500 UK Pounds
(iii) Design and development charges paid in UK – 500 UK Pounds
(iv) Commission payable to local agent @ 2% of FOB in Indian ₹
(v) Date of bill of entry – 24-10-2022 (Rate BCD 10%, Exchange rate as notified
by CBIC ₹90 per UK Pound)
(vi) Date of arrival of aircraft – 20-10-2022 (Rate BCD 18%, Exchange rate as
notified by CBIC ₹ 85 per UK Pound)
(vii) Integrated tax leviable under Section 3(7) of CTA, 1975 - @12%
(viii) Insurance charge actually paid but details not available. [7]

8. (a) Multi-Level Marketing (MLM) is a marketing strategy in which the distributor is

compensated for the sales of the other salespeople that they recruit. This recruited
sales force is referred to as the participant’s “downline”, and can provide multiple
levels of compensation. In this model, distributors sell products directly to
consumers by means of relationship referrals or by encouraging others to join the
company as a distributor. In this model, usually three kinds of incentives/rewards
are earned by the distributor-
 Profit margin earned on sale of goods purchased from the MLM company
(hereafter referred to as “company”);
 Incentive received for buying certain quantum of goods; and
 Consideration for identification of persons who can further be appointed as
distributors.
Justify. [7]

(b) Sundar Motors is a car dealer selling cars of an international car company. It also
provides maintenance and repair services of the cars sold by it as also of other cars.
It seeks your advice on availability of input tax credit in respect of the following
expenses incurred by it during the course of its business operations:

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2023
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE

(i) Cars purchased from the manufacturer for making further supply of such
cars. Two of such cars are destroyed in accidents while being used for test
drive by potential customers.

(ii) Works contract services availed for constructing a car washing shed in its
premises. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)
1. Choose the correct option: [15 x 2 =30]

(i) Who is eligible to claim input tax credit under GST?

a. Only registered businesses
b. Only individuals
c. Only government entities
d. Any person irrespective of registration status
(ii) In GST, aggregate turnover does not include-
a. Inward supplies on which tax is payable on reverse charge basis
b. Exempt supplies
c. Export of goods or services or both
d. Inter-State supplies of persons having the same PAN number
(iii) In which of the following cases, old rate will not be applicable with respect to
change in rate of supply of goods?
a. Supply was completed before the change of rate and payment was also
received but the invoice is issued after the change in rate of tax.
b. Invoice was issued before the change in rate and payment was also received
but the supply was made after change in rate of tax.
c. Payment was received before change in rate of tax but the sales were made
after the change in rate of tax and subsequently the invoice was issued after
the completion of sale.
d. Supply was completed before change of tax and the invoice was also issued
but the payment was received after the change in rate.
(iv) Zero rated supply does not includes:
a. Export of goods or/and services;
b. Supply of goods or/and services to SEZ;
c. Supply of goods or/and services by SEZ
d. Both B and C

(v) Mr. Oberoi from Ahmedabad hires an aircraft from a company of Vietnam for a
business tour. However, they board the aircraft from Mumbai. The place of supply
of service will be:
a. Location of supplier
b. Location of recipient
c. Location where service is performed.

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
d. Location where passenger embarks the journey.

(vi) Supplier X makes a supply worth ₹11,800 (inclusive of GST) to a Municipality

where the contract for supply is for ₹15,00,00. The rate of GST is 18%. The supplier
and the deductor are in the same State. What would be the Net payment to Supplier
X after deducting TDS?
a. ₹11,000
b. ₹11,800
c. ₹10,000
d. ₹11,600

(vii) In GST, refund shall not be paid to the applicant if the amount of refund is less
than:
a. ₹8,000
b. ₹1,000
c. ₹5,000
d. ₹10,000

(viii) M/s Ashok Enterprise sells mineral water bottles, with MRP ₹22 per bottle.
However, customers availing the discount of ₹5 per bottle. In the month of April
2024, M/s Ashok Enterprise sold 2,500 bottles. Applicable rate of GST 18%. What
will be the invoice price?
a. ₹37,760
b. ₹50,150
c. ₹42,500
d. ₹55,000

(ix) In which of the following cases, E-way Bill is required?

a. The mode of transport is non-motor vehicle.
b. Goods transported under Customs supervision or under customs seal
c. Transit cargo transported to or from Nepal or Bhutan
d. None of the above

(x) If a person is arrested for a cognizable offence, then he must be produced before a
magistrate within:
a. 24 hours of his arrest
b. 48 hours of his arrest
c. 24 hours of his warrant
d. 48 hours of his warrant
(xi) Calculate Cost of transport/handling under Rule 10(2)(a) if total of FoB and
insurance cost is $5000.
a. $2,500
b. $6,000

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
c. $1,000
d. None of the above

(xii) The protective duties are levied by the______ upon the recommendation made to
it by the Tariff Commission and upon it being satisfied that circumstances exist
which render it necessary to take immediate action to provide protection to any
industry established in India.
a. Central Board of Indirect Taxes & Customs
b. Central government
c. Supreme court
d. None of the above
(xiii) Countervailing duty shall not be levied unless it is determined that:
a. The subsidy relates to export performance
b. The subsidy relates to the use of domestic goods over imported goods in the
export article
c. The subsidy has been conferred on a limited number of persons engaged in
the manufacture, production, or export of articles
d. All the above

(xiv) Only those projects having a minimum investment of ____________ in plant &
machinery shall be considered for establishment as EOUs.
a. ₹1 crore
b. ₹10 crores or above
c. Below ₹5 crores
d. ₹100 crore or above
(xv) When an SEZ supplies goods/services to a Domestic Tariff Area (DTA), it is
exempt from paying taxes, although the receiver in the DTA has to pay:
a. IGST under reverse charge mechanism (RCM).
b. CGST and SGST under reverse charge mechanism (RCM).
c. CGST and UTGST under reverse charge mechanism (RCM).
d. IGST under forward charge

SECTION-B
(Answer any five questions out of seven questions given. Each question carries 14 Marks.)
[5x14=70]

2. (a) Discuss E-Way Bill and also discuss when it should be issued and who should
generate the same. [7]

(b) Discuss the penal provisions for return filing. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
3. (a) Well-Being Nursing Home has received the following amounts in the month of Jan
2024 in lieu of various services rendered by it in the same month. You are required
to calculate its GST liability from the details furnished below:
Sl. Particulars (₹ in
No. lakh)
(i) Palliative care for terminally ill patients at patient’s home 30
(Palliative care is given to improve the quality of life of patients
who have a serious or life-threatening disease but the goal of
such care is not to cure the disease)
(ii) Services provided by cord blood bank unit of the nursing home 24
by way of preservation of stem cells
(iii) Hair transplant services 100
(iv) Ambulance services to transport critically ill patients from 12
various locations to nursing home
(v) Transportation of patients in an ambulance on behalf of the 10
State Governments against consideration
(vi) Naturopathy treatments. 80
Such treatment is a recognized system of medicine in terms
of section 2(h) of the Clinical Establishments Act, 2010
(vi) Plastic surgery to restore anatomy of a child affected due to an 30
accident.
(vii) Pranic healing treatments. Such treatment is not a recognized 120
system of medicine in terms of section 2(h) of the Clinical
Establishments Act, 2010
(ix) Mortuary services 10
All the amounts given above are exclusive of GST. Further, Well-Being Nursing
Home is registered person under GST. Applicable rate of GST is 18%. All
transactions are at intra-State level. [7]

(b) M/s Lips Ltd., manufactures four types of ‘Nail Polishes’, namely Sweety, Pretty,
Beauty, Tweety. The Company has taken input tax credit of ₹3,00,000 on the
common inputs used in the manufacture of ‘Nail Polishes’. Common inputs also
used partly for non-business purposes. During the financial year the company
manufactured 1000 litres of each type of ‘Nail Polishes’. The Company was not in
a position to maintain separate set of records with regards to inputs used for final
products. GST payable on final goods @12%.

You are required to calculate the net GST payable by M/s Lips Ltd. for the year
from the following data:

Sale price (Exclusive of

GST)
Description

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Product
Name
Sweety Sale to Domestic Tariff Area ₹30 per 20ml. bottle
Pretty Sale to a Special Economic Zone (SEZ) ₹40 per 20ml. bottle
Beauty Sale to A Ltd. of USA ₹50 per 20ml. bottle
Tweety Sale to Defence Canteen(Exempted from ₹60 per 20ml. bottle
GST)
[7]

4. (a) Explain the conditions under which TDS should be deducted and also identify the
situations where it is not necessary to deduct TDS. [7]

(b) Describe who can be considered as a 'related person' under Section 15 of the CGST
Act, 2017?" [7]

5. (a) Cunning Ltd. furnishes the following expenditure incurred by them to find the
transaction value for the purpose of paying GST.
i. Direct material cost per unit inclusive of IGST at 18% ₹10,620
ii. Direct wages ₹2,500
iii. Other direct expenses ₹1,050
iv. Indirect materials ₹705
v. Factory overheads ₹2,500
vi. Research and development cost ₹5,000
vii. Administrative overhead (45% relating to production capacity) ₹1,000
viii. Selling and distribution expense ₹1,500
ix. Quality control ₹250
x. Sale of scrap realised ₹255
xi. Actual profit margin 25%
Calculate the value for payment of GST as per Rule 30 of the CGST Rules, 2017.
[7]
(b) Calculate the GST liability of Mr. A, an air travel agent, for the quarter ended March
31, 2024 using the following details: -
Particulars Amount (ͅ₹)
Basic air fare collected for domestic booking of tickets 65,00,000
Basic air fare collected for international booking of tickets 90,00,000
Commission received from the airlines on the sale of domestic 5,50,000
and international tickets

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Year ending bonus received from airlines 90,000

In the above case, would the GST liability of Mr. A be reduced if he opts for the
special provision for payment of GST as per Rule 32(3) of the CGST Rules, 2017?
The applicable rate of GST is 18%. [7]

6. (a) Discuss various Trade Facilitation Measures taken by Indian Customs. [7]
(b) Identify the supplies which are to be considered as deemed exports and also
describe the benefits of deemed exports. [7]

7. (a) X Ltd has exported following goods to USA. Discuss whether any duty drawback
is admissible under section 75 of the Customs Act, 1962.

FOB Value of
Product rate Market Price of Duty drawback
Exported goods (₹)
Goods (₹)
A 2,50,000 1,80,000 30% of FOB
B 1,00,000 50,000 0.75% of FOB
C 8,00,000 8,50,000 3.50% of FOB
D 2,000 2,100 1.50% of FOB
Note: Imported value of product C is ₹9,50,000. [7]

(b) ABC Technologies Ltd., has imported certain equipment from Japan at an FOB cost
of 2,00,000 Yen (Japanese). The other expenses incurred by M/s. ABC
Technologies in this connection are as follows:
(i) Freight from Japan to India Port 20,000 Yen
(ii) Insurance paid to Insurer in India ₹10,000
(iii) Designing charges paid to Consultancy firm in Japan 30,000 Yen
(iv) M/s. ABC Technologies had expended ₹1,00,000 in India for certain
development activities with respect to the imported equipment
(v) ABC Technologies had incurred road transport cost from Mumbai port to
their factory in Karnataka ₹30,000
(vi) The Central Board of Indirect Taxes and Customs had notified for purpose of
section 14(3) of the Customs Act, 1962 exchange rate of 1 Yen = ₹0.3948.
The interbank rate was 1 Yen = ₹0.40
(vii) M/s ABC Technologies had effected payment to the Bank based on exchange
rate 1 Yen = ₹0.4150

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
(viii) The commission payable to the agent in India was 5% of FOB cost of the
equipment in Indian Rupees.
Calculate the assessable value under the Customs Act, 1962 providing brief notes
wherever required with appropriate assumptions. [7]

8. (a) Maruti Traders, a dealer in furniture, located in Maharashtra, receives an order

from Bhagavan Traders, also located in Maharashtra. The order is for the supply
of 250 Tables, with an instruction to ship the Tables to Bhakta Hardware’s, located
in Tamil Nadu. Bhakta Hardware’s is a customer of Bhagavan Traders.
Suggest the place of supply and levy of GST in the hands of Maruti Traders as well
as Bhagavan Traders. [7]

(b) Ram & Co., being a registered person under GST supplied the following in the
month of January 2024:
Particulars Value in ₹
Taxable supply of goods 20,00,000
Exempted supply of goods 5,00,000
Sale of land 12,50,000
Recovery Agent services supplied to OK Bank 2,50,000
Deposit on which interest received 2,00,000
Total 42,00,000
Common inputs for the relevant tax period is ₹2,00,000.
GST applicable rate on outward supply of goods @28%. Calculate the GST
liability. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)
1. Choose the correct option: [15 x 2 =30]

(i) The maximum rate of IGST as per IGST Act is:

a) 20%
b) 30%
c) 40%
d) None of the above

(ii) Who is required to file the Annual Return under GST?

a) Every registered person
b) Registered person having annual turnover of ₹2 crores and above
c) Registered person having annual turnover of ₹1.5 crores and above
d) None of the above

(iii) In GST, assessment means a process of determining the tax liability in accordance with the
provisions of the Act, which includes:
a) Provisional Assessment
b) Self-assessment
c) Reassessment
d) All of the above

(iv) For the year 2023-24 due date of filling of annual return is 31.12.2024. As per CGST Act,
2017, the books and records of 2023-24 must be maintained till -
a) 31.03.2024
b) 31.12.2024
c) 31.12.2026
d) 31.12.2030

(v) Under GST Act the term UIN stands for:

a) User Identification Number
b) Utility Identification Name
c) Unique Identification Number
d) Unique Individual Number

(vi) Under GST, inspection, as well as search, can be carried out only after authorization by a
proper officer not below:
a) the rank of Commissioner
b) the rank of Assistant Commissioner
c) the rank of Principal Commissioner.
d) the rank of Joint Commissioner.

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL QUESTION PAPER TERM – DECEMBER 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
(vii) If the Show Cause Notice mentions the tax as ₹ 1,11,156.30 and penalty as ₹ 572.6, then
what is the amount payable as per section 170 of the CGST Act?
a) ₹ 1,11,800
b) ₹1,11,728.9
c) ₹ 1,11,700
d) ₹ 1,11,729

(viii) Where a desk-top printer is sold for ₹10,000 along with the exchange of an old printer and
if the price of the new desk-top printer without exchange is ₹12,500, the taxable value for
GST purpose would be -
a) ₹10,000
b) ₹12,500
c) Either (A) or (B)
d) ₹10,000 for the supplier and ₹2,500 for the customer

(ix) The time limit to pay the value of supply with taxes to avail input tax credit is:
a) Three months
b) Six months
c) One hundred and eighty days
d) Till the date of filing annual return or 30th September of following year whichever is
earlier

(x) A manufacturer who is a registered person under GST has purchased 10,000 kgs of raw
material during February, 2024, on which IGST of ₹1,00,000 has been paid. He has taken 100
kgs for personal use. 200 kgs were stolen from the factory. Only 80% of the raw materials
were consumed during the month for production. The input tax credit available to him for
February, 2024 is:
a) ₹99,000
b) ₹97,000
c) ₹80,000
d) ₹1,00,000

(xi) Mr. Raj, resident of India, returned back to India from London after 2 years of stay and brought
jewellery ₹42,000 (18 grams). Duty payable by Mr. Raj:
a) ₹770
b) ₹2,000
c) ₹2,200
d) Nil.

(xii) Who among the following grants the permission for manufacturing or other operations in the
bonded facility?
a) Assistant Commissioner of Customs
b) Deputy Commissioner of Customs
c) Additional Commissioner of Customs
d) Commissioner of Customs

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 FINAL EXAMINATION SET - 2
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INDIRECT TAX LAWS & PRACTICE
(xiii) In the context of Indian Customs law, ICEGATE means -
a) Indian Customs Electronic Data Exchange Gateway
b) Indian Customs Electronic Gateway
c) Inter Continental Electronic Gateway
d) None of the above
(xiv) Which of the following is a document not required to be filled for claiming of duty drawback
on re-export?
a) Import Invoice
b) Evidence of payment of duty at the time of import
c) Export bill with packing list
d) Permission from CBEC authorizing re-export of goods

(xv) Which of the following is/ are duty exemption scheme(s) under FTP?
1) Advance Authorisation Scheme
2) Duty-Free Import Authorisation Scheme
3) Merchandise Export from India Scheme
4) Service Export from India Scheme
a) Only 1
b) Both 1 & 2
c) Both 3 & 4
d) All of the above

SECTION-B
(Answer any five questions out of seven questions given. Each question carries 14 Marks.)
[5×14=70]

2. (a) Analyse the provisions of consolidated E-Way Bill. [7]

(b) Discuss the salient features of Quarterly Return filing & Monthly Payment of Taxes
(QRMP)scheme. [7]

3. (a) Calculate the taxable value for transport of goods by rail within India (all sums exclusive
of all taxes):-
(1) Transport of postal mails and postal bags: ₹ 55 lakhs;
(2) Transportation of household effects: ₹ 50 lakhs
(3) Transport of petroleum products: ₹ 25 lakhs;
(4) Transport of relief materials to flood affected areas: ₹ 25 lakhs;
(5) Transport of newspapers and magazines registered with registrar of newspapers: ₹15
lakhs
(6) Transport of milk: ₹ 15 lakhs;
(7) Transport of alcoholic beverages: ₹ 7 lakhs:
(8) Transport of defence and military equipments: ₹ 40 lakhs;
(9) Transport of chemical fertilizers: ₹ 90 lakhs;
(10) Transport of other taxable goods: ₹ 200 lakhs (including ₹ 20 lakhs demurrages).
[7]
(b) Praja Industries is a manufacturing company registered under GST. It manufactures two taxable
products ‘X’ and ‘Y’ and one exempt product ‘Z’. The turnover of ‘X’, ‘Y’ and ‘Z’ in the month
of April, 2024 was ₹2,00,000, ₹10,00,000 and ₹12,00,000. Praja Industries is in possession of

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL QUESTION PAPER TERM – DECEMBER 2024
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INDIRECT TAX LAWS & PRACTICE
certain machines and purchases more of them. Useful life of all the machines is considered as
5 years.
From the following particulars furnished by it, calculate the amount to be credited to the
electronic credit ledger of Praja Industries and amount of common credit attributable towards
exempted supplies, if any, for the month of April, 2024.
Particulars GST paid
(₹)
Machine ‘A’ purchased on 01.04.2024 for being exclusively used for non- 19,200
business purposes
Machine ‘B’ purchased on 01.04.2024 for being exclusively used in 38,400
manufacturing zero-rated supplies
Machine ‘C’ purchased on 01.04.2024 for being used in manufacturing all the 96,000
three products– X, Y and Z
Machine ‘D’ purchased on 01.04.2022 for being exclusively used in 1,92,000
manufacturing product Z. From 01.04.2024, such machine will also be used for
manufacturing products X and Y.
Machine ‘E’ purchased on 01.04.2021 for being exclusively used in manufacturing 2,88,000
products X and Y. From 01.04.2024, such machine will also be used for
manufacturing product Z.
[7]

4. (a) Prepare a checklist to conduct audit under GST. [7]

(b) Analyse Whether GST is applicable on services or assistance rendered by the Court
receiver appointed by the Court. [7]

5. (a) Identify the time of supply if supply involves movement of goods:

S.No. Date of removal of Date of issue of Date when goods Date on which
goods invoice made available to the payment received.
recipient
1. 16-08-2024 17-08-2024 18-08-2024 07-09-2024
2. 18-08-2024 16-08-2024 19-08-2024 07-09-2024
3. 19-10-2024 19-10-2024 21-10-2024 07-09-2024

[7]
(b) LIC of India provides you the following information for the month of April 2024. You
are required to calculate the GST payable by the company if the company has opted to pay
GST as per Rule 32(4) of CGST Rules, 2017:
(1) General policies: Total premiums collected ₹12,000 lakhs (Out of which 1st year
premium is ₹5,000 lakhs)
(2) Only Risk Cover Policies: Premiums collected ₹500 lakhs.
(3) Variable Insurance Policies: Premiums collected ₹8,000 lakhs. (80% of the amount is
allocated for investments on behalf of policy holder for which policy holder is given
separate break up in premium receipts).
Note: Applicable rate of GST 18%. For all transaction’s location of supplier and place of
supply is within the same State. [7]

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INDIRECT TAX LAWS & PRACTICE

6. (a) Analyse the provisions of warehousing bond u/s 59 and owner’s right to deal with the
warehoused goods. [7]
(b) Discuss the provisions related to Special Economic Zones and various incentives available to
the SEZs. [7]

7. (a) Mr. Vijay, an Indian entrepreneur, went to London to explore new business opportunities
on 01.04.2023. His wife also joined him in London on 01.12.2023. The following details are
submitted by them with the Customs authorities on their return to India on 30.04.2024.
(1) used personal effects worth ₹80,000
(2) a music system worth ₹35,000
(3) Jewellery brought by Mr. Vijay for ₹48,000 and Gold Bars (i.e. other than ornaments)
brought by his wife worth ₹20,000
Examine their eligibility with regard to duty free allowance. [7]

(b) From the particulars given below, calculate the assessable value of the imported goods under
the Customs Act,1962.
US $

(i) Cost of the machine at the factory of the exporting country 10,000

(ii) Transport charges incurred by the exporter from his factory to the port for 500
shipment.

(iii) Handling charges paid for loading the machine in the ship 50

(iv) Buying commission paid by the importer 50

(v) Freight charges from exporting country to India 1,000

(vi) Exchange Rate to be considered 1$ = ₹75

[7]

8. (a) Kamal & Co. manufactures customized products at its unit situated in Rajasthan. Cost of
production for Kamal & Co for 1000 products is ₹20,00,000. These products require further
processing before sale, and for this purpose products are transferred from its Rajasthan unit to
its another unit in Punjab. The Punjab unit, apart from processing its own products, engages in
processing of similar products of other persons who supply the products of the same kind and
quality and thereafter sells these processed products to wholesalers. There are no other
factories in the neighboring area which are engaged in the same business as that of its Punjab
unit. Products of the same kind and quality are supplied in lots of 1000 each time by another
manufacturer located in Punjab. The price of such goods is ₹19,00,000. Calculate the value of
1000 products supplied by Kamal & Co. to its Punjab unit as per the provisions of CGST Act,
2017. [7]

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INDIRECT TAX LAWS & PRACTICE

(b) ABC Ltd. India has received an order for supply of services amounting to $5,00,000/- to
a US based client. ABC Ltd. India is unable to supply the entire services from India and asks
XYZ Ltd. Mexico (who is not merely an establishment of a distinct person viz. ABC Ltd. India,
in accordance with the Explanation 1 in Section 8 of the IGST Act) to supply a part of the
services (say 40% of the total contract value). Identify exporter, importer and value of exports
and imports from the above? [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)

1. Choose the correct option: [15 x 2 =30]

(i) Flow of consideration is not a mandatory requirement under supply, in case of:
a. imports
b. Activities specified under Schedule I of the CGST Act
c. Both
d. None of the above

(ii) What is the threshold limit of turnover in the preceding financial year for opting to
pay tax under composition scheme for States other than special category States?
a. ₹ 20 lakh
b. ₹ 10 lakh
c. ₹ 50 lakh
d. ₹ 150 lakh

(iii) Mr. A has started intra-state supply of services from Delhi. He is required to obtain
registration if his aggregate turnover exceeds___________ during a financial year.
a. ₹ 10 lakh
b. ₹ 20 lakh
c. ₹ 30 lakh
d. ₹ 40 lakh

(iv) Levy of GST on Priority Sector Lending Certificate (PSLC) under:

a. Exempted supply of goods
b. Reverse Charge Mechanism (RCM)
c. Partial Reverse Charge Mechanism
d. Forward Charge

(v) Which of following deductions is allowed from value of imported goods vide rule
7 (deductive value) —
a. commission on sales in India;
b. transport from foreign port;
c. Both of the above
d. None of the above

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(vi) In case proper officer checks the goods in movement, then what document shall be
required apart from delivery challan to satisfy the proper officer where the value of
goods exceeds ₹ 50,000?
a. E-way Bill
b. Voucher
c. Invoice
d. None of the above.

(vii) Mr. A entered into a contract with Mr. B & agreed to make the payment by 30th
Sep 2023. If the payment is not made in time, then he shall pay late fees @ ₹ 200
per day. No payment of late fees has been made so far. What shall be the time of
supply in respect of the late fees due on Mr. A?
a. Sept 2023
b. Oct 2023
c. Time of supply has not arisen
d. None of the above.

(viii) Is it mandatory to capitalize the capital goods in books of Accounts?

a. Yes
b. No
c. Optional
d. None of the above

(ix) Is there any threshold limit for applying the provisions of Section 52 for collecting
tax at source?
a. TCS applies if net value of taxable supplies exceeds ₹ 10,00,000/-
b. TCS applies if net value of taxable supplies exceeds ₹ 15,00,000/-
c. TCS applies if net value of taxable supplies exceeds ₹ 20,00,000/-
d. No such limit prescribed, tax should always be collected at source if the
conditions envisaged u/s 52 are met.

(x) The due date for filling GSTR – 7 is _______ of the succeeding month.
a. 10
b. 13
c. 18
d. 20

(xi) Out of the following transaction, which is not considered as supply under GST?
a. High sea sale
b. Payment of salary by the employer to his employee

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INDIRECT TAX LAWS & PRACTICE
c. Sale of land
d. All of the above

(xii) Minimum value addition required to be achieved under DFIA is ___________.

a. 10%
b. 15%
c. 20%
d. 5%

(xiii) Mr. Raj resident of India, returned back to India from London after 2 years of stay
and brought jewellery ₹ 42,000 (18 grams). Duty payable by Mr. Raj is:
a. ₹ 770
b. ₹ 2,000
c. ₹ 2,200
d. Nil

(xiv) ____________ grants the permission for manufacturing or other operations in the
bonded facility.
a. Assistant Commissioner of Customs
b. Deputy Commissioner of Customs
c. Additional Commissioner of Customs
d. Commissioner of Customs

(xv) In case, the developer submit the proposal to the State Government for The SEZ
approval, then state government forwards this proposal to the Board of Approval
(BoA) along with its recommendation within.
a. 5 days
b. 15 days
c. 30 days
d. 45 days

SECTION-B
(Answer any five questions out of seven questions given. Each question carries 14 Marks.)
[5x14=70]

2. (a) (i) R Ltd. a manufacturer of cosmetic products supplied a package consisting of

Body oil (GST 18%), Body lotion (GST 28%), Shampoo (GST 28%) and Soap
(GST 12%). The price per package is ₹ 750 (exclusive of GST). 15,000 packages
were supplied by the company to its dealers. Determine the nature of supply and
its GST liability.

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Directorate of Studies, The Institute of Cost Accountants of India
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INDIRECT TAX LAWS & PRACTICE
(ii) A hotel provides 3 days and 2 nights package wherein the facility of breakfast
and dinner is provided along with the room accommodation free of cost. Determine
whether it is composite supply or mixed supply?
(iii) A toothpaste company has offered a scheme of free toothbrush of ₹ 25 along
with the purchase of toothpaste of ₹ 248/-. Classify whether it is composite supply
or mixed supply. [7]
(b) Prepare a list of the contents of Form GSTR 3B. [7]

3. (a) Agro Farm Limited registered under GST furnishes the following details with
respect to the activities undertaken by them in the month of May, 2023 –
S.N. Particulars ₹
1) Receipts from Supply of farm labour 85,000
2) Charges for seed testing 65,000
3) Charges for soil testing of farm land 35,000
4) Charges for warehousing of potato chips 85,000
5) Commission received on sale of wheat 75,000
6) Charges for training of farmers on use of new pesticides and 10,000
fertilizers developed through scientific research
7) Renting of vacant land to a stud farm 1,85,000
8) Leasing of vacant land to a cattle farm 83,500
9) Charges for warehousing of rice 1,50,000
10) Charges for warehousing of cotton fabrics 2,00,000
11) Retail packing and labelling of fruits and vegetables 5,00,000
Compute the value of taxable supply of Agro Farm Limited for the month of May,
2023 if all the above amounts are exclusive of GST. [7]
(b) Mr. Akhil registered person provides the following information for the month of
March 2024:
Particulars Amount
Input tax credit in respect of inward supply ₹2,00,000
Taxable supply (Excluding zero rated supply) ₹10,00,000
Export i.e., zero-rated supply ₹ 5,00,000
Exempt supplies ₹ 3,00,000
Inward supplies on which he is liable to pay tax on reverse ₹ 2,00,000
charge basis
Compute ITC available to him for the month of March 2024 [7]

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 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
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INDIRECT TAX LAWS & PRACTICE

4. (a) Briefly summarize the provisions relating to TDS under GST Law. [7]

(b) Explain Online information and database access retrieval service (OIDAR)?
Identify few services which are notified under section 9(5) of CGST Act. [7]

5. (a) Mr. Hogle, an event organiser located in Singapore, undertakes to organize comedy
shows of Mr. Bhrami of Hyderabad and Mr. Vadivelu of Chennai in India. The
comedy shows are hosted in Telangana, Andhra Pradesh, Tamil Nadu and
Pondicherry.
Gross value of contract is ₹ 60 crores.
State No. of Days Recipient of Service
Telangana 20 Mr. Bhrami
Andhra Pradesh 15 Mr. Bhrami
Tamil Nadu 14 Mr. Vadivelu
Pondicherry 01 Mr. Vadivelu
Total 50
Determine the place of supply of services, value of service and person liable to pay
tax. [7]

(b) Smart Ltd. exported some goods to LG Inc. of USA. It received US $ 9,000 as
consideration for the same and sold the foreign currency @ ₹ 71 per US dollar.
Compute the value of supply of money changing service under GST law and rules
made thereunder in the following cases:
(A) RBI reference rate for US dollar at that time is ₹ 72 per US dollar
(B) RBI reference rate for US dollars is not available.
Calculate the value of supply if US $9,000 are converted into UK £ 4,500. RBI
reference rate at that time for US $ is ₹ 73 per US dollar and for UK £ is ₹ 101 per
UK Pound. [7]

6. (a) Demonstrate various Trade Facilitation Measures taken by Indian Customs. [7]

(b) Analyze the Advance Authorization Scheme with reference to Foreign Trade
Policy. [7]

7. (a) Mr. Brown of foreign origin has come on travel visa, to tour in India. He carries
with him, as part of baggage, the following:

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
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INDIRECT TAX LAWS & PRACTICE
Particulars Value in ₹
Travel Souvenir 1,85,000
Other articles carried on in person 1,50,000
120 sticks of cigarettes of ₹ 100 each 12,000
Fire arm with 100 cartridges (value includes the value of 100,000
cartridges at ₹ 500 per cartridge)
Determine Customs Duty payable on baggage @ 38.50% inclusive of social
welfare surcharge. [7]

(b) ABC Industries Ltd. of Mumbai imported one machine through vessel from Japan,
in the month of November. The following particulars are made available for
computation of customs duty:

Amount
S.N Particulars in JPY
(¥)
(i) Cost upto port of exportation incurred by exporter 6,00,000
(ii) Loading charges at port of exportation 25,000
(iii) Freight charges from port of export to port of import in India. 1,00,000
Following additional amounts paid by ABC Industries Ltd:-
(i) Designing charges, necessary for the machine, paid to 8,00,000
consultancy firm in Delhi
(ii) Commission paid (not buying commission) to the local agent 1,25,000
of exporter
(iii) Actual landing charges paid at the place of importation. 15,000
(iv) Actual insurance charges paid to the place of importation is not
ascertainable
(v) Lighterage charges paid at the port of importation 20,000
Other information
(i) Rate of basic customs duty 10%
(ii) Rate of social welfare surcharge 10%
(iii) Integrated tax 18%
(iv) Ignore GST compensation cess.
(v) Rate of exchange to be taken 1 Japanese Yen (¥) = ₹ 0.71

Compute the assessable value and customs duty payable. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS & PRACTICE

8. (a) Chandana Traders in Karnataka receives an order from M/s A Inc. in USA to deliver
100 cell phones at Odiar Dealers in Karnataka. On application of section 10(1)(b)
place of supply will be USA. The question arises will this transaction be taxed even
if the place of supply is USA? Discuss with reason. [7]

(b) Mr. Bhagirath has taken a loan from the bank on 15-07-2023 worth ₹ 2 crore and
purchased a machine. Subsequently, he defaulted in paying the loan amount along
with interest. Hence, the bank repossessed the machine from him on 1st Jan 2024.
The banker sells the said goods on 26th April 2024. Compute the value of taxable
supply of goods in the hands of banker in the following two independent cases:
Case 1: machine sold for ₹ 1,90,00,000.
Case 2: machine sold for ₹ 1,70,00,000.
Note: Applicable rate of IGST 18%. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET 1
MODEL QUESTION PAPER TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)

1. Choose the correct option: [15×2 = 30]

(i) While repairing the factory shed, few goods were also supplied along with the labour service. Whether it is
a:
a. Composite Supply
b. Mixed Supply
c. Works Contract Service
d. None of the above
(ii) Mr. Dhoni a registered person from Mumbai, received certain architectural services from one of its
associates from UAE for his personal purpose free of cost. The same was worth $5,000. Does the import of
service qualify as supply?
a. Yes. Being made from related party
b. No. since, not made in course or furtherance of business
c. Yes, but only on prior approval of Government
d. None of the above
(iii) Stylish a modelling agency, registered in Mumbai having 10 models entered into a contact for beauty
treatment of their models with Fair & Lovely in Delhi but the beauty treatment was done before a fashion
show in the city of Hyderabad. What is the place of supply?
a. Mumbai
b. Delhi
c. Chennai
d. Hyderabad
(iv) Mr. OBAMA of USA came to Chennai for personal visit and booked a room in Taj Hotel of Chennai. What
GST is liable to pay by Taj Hotel of Chennai where payment received in US Dollars?
a. CGST + SGST
b. IGST
c. Zero rate of GST
d. None of the above
(v) Rule 30 of the CGST Rules 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.
a. 100
b. 10
c. 110
d. 120

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INDIRECT TAX LAWS AND PRACTICE
(vi) The term “used in the course or furtherance of business” means —
a. It should be directly co-related to output supply
b. It is planned to use in the course of business
c. It is used or intended to be used in the course of business
d. It is used in the course of business for making outward supply

(vii) Levy of GST on Priority Sector Lending Certificate (PSLC) is under:

a. Exempted supply of goods
b. Reverse Charge Mechanism (RCM)
c. Forward Charge
d. Partial Reverse Charge Mechanism

(viii) When an e-commerce operator is required to register under GST?

a. When he is required to collect tax at source u/s 52
b. When his aggregate turnover exceeds the threshold limit
c. It is mandatory to register irrespective of the threshold limit.
d. When he is required to collect tax at source u/s 52 and his aggregate turnover exceeds the threshold
limit.

(ix) Which document is to be issued by the consignor instead of tax invoice for transportation of goods for job
work?
a. E-Way Bill
b. Delivery Challan
c. Debit Note
d. Receipt Voucher

(x) E-Way bill generation facility of a person paying tax under regular scheme will be blocked if he has not
furnished the returns for a consecutive period of ______________.
a. 2 months
b. 2 tax periods
c. 3 tax periods
d. 6 tax periods

(xi) Determine price to be taken for computing deductive value in rule 7: Sale quantity- 80 units @ ₹90, 50
units @ ₹95, 25 units @ ₹105, 40 units @ ₹100:
a. ₹105
b. ₹100
c. ₹95
d. ₹90

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INDIRECT TAX LAWS AND PRACTICE
(xii) A person, who is engaged in a profession abroad, or is transferring his residence to India after stayed abroad
more than 2 years can bring, used household items without payment of duty up to:
a. ₹50,00,000
b. ₹25,00,000
c. ₹5,00,000
d. ₹50,000.

(xiii) Once a _________ is cleared for home consumption, the bond submitted by the importer gets debited
automatically in the customs automated system and the details shall be made available electronically to the
Jurisdictional Custom Officer.
a. Bill of Entry
b. Shipping Bill
c. Entry inwards
d. Entry outwards

(xiv) Full form of IIN is:

a. Import of goods at concessional rate of duty Identification Number
b. Import of Goods at Concessional Rate Identification Number
c. Import of Goods Identification Number
d. Import at Concessional Rate Identification Number

(xv) ____________ grants the permission for manufacturing or other operations in the bonded facility.
a. Assistant Commissioner of Customs
b. Deputy Commissioner of Customs
c. Additional Commissioner of Customs
d. Commissioner of Customs

Section – B
(Answer any five questions out of seven questions given. Each question carries 14 Marks)
[5 x 14 = 70]

2. (a) Examine how pre-packaged and labelled goods will be treated in GST. [7]

(b) Discuss the details to be provided in the form GSTR – 9. [7]

3. (a) Indian railways has provided following services—

(1) Transport of passengers by general class: ₹25,00,000;
(2) Transport of passengers by sleeper class: ₹20,00,000;
(3) Transport of passengers by 1st Class air conditioned coach: ₹6,00,00,000;
(4) Transport of passengers by 2 tier air conditioned coach: ₹22,00,00,000;

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INDIRECT TAX LAWS AND PRACTICE
(5) Transport of passengers by 3-tier air conditioned coach: ₹30,00,00,000;
Calculate value of taxable supplies and GST liability. Applicable GST rate is 5%. [7]

(b) The goods manufactured by Ansh Ltd. have been exempted from GST with effect from 15th January 2025.
Earlier these goods were liable to tax @ 18%. Its inputs were liable to GST @ 12%. Following information
is supplied on 15th January 2025:
(i) The inputs costing ₹1,84,720 are lying in stock.
(ii) The inputs costing ₹97,184 are in process.
(iii) The finished goods valuing ₹5,82,400 are in stock, the input cost is 50% of the value.
Ansh Ltd. also purchased capital goods for ₹5,00,000 by paying GST 28% (invoice dated 10th July 2024)
The balance in electronic credit ledger account shows credit balance of ₹2,79,104.
The department has asked Ansh Ltd. to reverse the credit taken on inputs referred above. However, Ansh
Ltd. contends that credit once validly taken is indefeasible and not required to be reversed.
Calculate the amount payable by Ansh Ltd. if the balance in electronic credit ledger receivable account as
on 15th January 2025 were ₹29,104. [7]

4. (a) Explain the provision of special audit as per CGST Act, 2017. Also discuss the process of how special audit
is conducted. [7]

(b) Analyse the provisions related to Distinct persons as per CGST Act, 2017. [7]

5. (a) Determine the time of supply from the following particulars:

8th September Community hall booked for a marriage, Sum agreed ₹ 11,20,000, Advance ₹ 1,20,000
recorded in the books of account.
10th September Advance amount credit in bank account
2nd November Marriage held in Community Hall
18th December Invoice issued for ₹ 11,20,000 indicating the balance of ₹ 10,00,000 payable
22nd December Balance ₹ 10,00,000 recorded in the books of account.
24th December Payment ₹ 10,00,000 credit to the bank account
[7]
(b) Srinidhi Ltd. exported some goods to LG Inc. of USA. It received US $ 9,000 as consideration for the same
and sold the foreign currency @ ₹ 71 per US dollar. Calculate the value of supply of money changing
service under GST law and rules made thereunder in the following cases:
(i) RBI reference rate for US dollar at. That time is ₹ 72 per US dollar
(ii) RBI reference rate for US dollars is not available.

Calculate the value of supply if US $9,000 are converted into UK £ 4,500? RBI reference rate at that time
for US $ is ₹ 73 per US dollar and for UK £ is ₹ 101 per UK Pound. [7]

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 FINAL EXAMINATION SET 1
MODEL QUESTION PAPER TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
6. (a) Distinguish between Pilferage of goods and loss or destruction of goods as per Customs Act, 1962. [7]

(b) Discuss some incentives to Special Economic Zone (SEZ) units. [7]

7. (a) Mrs. & Mr. Kapoor visited Germany and brought following goods while returning to India after 6 days stay
abroad on 8th January 2025.
(i) Their personal effects like clothes, etc., valued at ₹1,35,000.
(ii) A personal computer bought for ₹1,36,000.
(iii) A laptop computer bought for ₹95,000.
(iv) Two liters of liquor bought for ₹1,600.
(v) A new camera bought for ₹87,400.
(vi) Plasma T.V. for ₹1,25,000
Calculate the amount of customs duty payable. [7]

(b) BSA & Company Ltd have imported a machine from U.K. From the following particulars furnished by
them, Calculate the assessable value for the purpose of customs duty payable:
(i) F.O.B. cost of the machine 10,000 U.K. Pounds
(ii) Freight (air) 3,000 U.K. Pounds
(iii) Engineering and design charges paid to a firm in U.K. 500 U.K. Pounds
(iv) License fee relating to imported goods payable by the buyer as a condition 20% of F.O.B. Cost
of sale
(v) Materials and components supplied by the buyer free of cost valued ₹20,000
(vi) Insurance paid to the insurer in India ₹6,000
(vii) Buying commission paid by the buyer to his agent in U.K. 100 U.K. Pounds

Other Particulars:
(i) Inter-bank exchange rate as arrived by the authorized dealer: ₹72.50 per U.K. Pound.
(ii) CBIC had notified for purpose of Section 14 of the Customs Act, 1962, exchange rate of ₹70.25 per
U.K. Pound.
(iii) Importer paid ₹5,000 towards demurrage charges for delay in clearing the machine from the Airport.
(Make suitable assumptions wherever required and show workings with explanations) [7]

8. (a) Asha Ltd. supplies raw material to a job worker Kareena Ltd. After completing the job-work, the finished
product of 5,000 packets are returned to Asha Ltd. putting the retail sale price as ₹20 on each packet. The
product in the packet is covered under MRP provisions. Calculate the transaction value in the hands of
Kareena Ltd. under GST law from the following details:
Particulars Value in ₹
Cost of raw material supplied 30,000
Job worker’s charges including profit 10,000
Transportation charges for sending the raw material to the job worker 3,000
Transportation charges for returning the finished packets to Asha Ltd. 4,500

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 FINAL EXAMINATION SET 1
MODEL QUESTION PAPER TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
Asha Ltd. paid certain technology transfer fees to ‘Reena Ltd’, so that ‘Kareena Ltd’ can 22,500
use the said technology in the given jobwork operation. This technology owned by Asha
Ltd. for subsequent use as well.
Note: Kareena Ltd offered discount ₹2,000, provided full payment is made at the time of raising invoice
and the same is mentioned in the invoice. Asha Ltd. made full payment at the time of issue of invoice.
[7]
(b) M/s XYZ, a registered supplier, supplies the following goods and services for construction of buildings and
complexes—
~ excavators for required period at a per hour rate
~ manpower for operation of the excavators at a per day rate
~ soil-testing and seismic evaluation at a per sample rate.
The excavators are invariably hired out along with operators. Similarly, excavator operators are supplied
only when the excavator is hired out.
M/s XYZ receives the following services:
~ Annual maintenance services for excavators;
~ Health insurance for operators of the excavators;
~ Scientific and technical consultancy for soil testing and seismic evaluation.
For a given month, the receipts (exclusive of GST) of M/s XYZ are as follows:
~ Hire charges for excavators - ₹ 18,00,000
~ Service charges for supply of manpower for operation of the excavator - ₹ 20,000
~ Service charges for soil testing and seismic evaluation at three sites - ₹ 2,50,000
The GST paid during the said month on services received by M/s XYZ is as follows:
~ Annual maintenance for excavators - ₹ 1,00,000
~ Health insurance for excavator operators - ₹ 2,11,000
~ Scientific and technical consultancy for soil testing and seismic evaluation - ₹ 1,00,000
Calculate the net GST payable by M/s XYZ for the given month.
Assume the rates of GST to be as under:
Hiring out of excavators – 12% Supply of manpower services and soil-testing and seismic evaluation
services – 18%
Note: Opening balance of input tax credit of GST is nil. [7]

Directorate of Studies, The Institute of Cost Accountants of India 6

 FINAL EXAMINATION SET - 2
MODEL ANSWERS TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)
1) Choose the correct option: [15 × 2=30]
(i) Aggregate turnover does not include:
a) Inward supplies on which tax is payable on reverse charge basis
b) Exempt supplies
c) Export of goods or services or both
d) Inter-State supplies of persons having the same PAN number

(ii) What action should be taken by an assessee to satisfy with anti-profiteering provision?
a) Reduce rate of tax on any supply of goods or services, if such assessee has got the benefit of
such reduced rate
b) Pass on the benefit of input tax credit, if such assessee has got such input tax credit
c) Both (a) and (b)
d) none of the above

(iii) As per section 69(2) of CGST Act, 2017, where a person is arrested under sub-section (1) for an
offence specified under sub- section (5) of section 132, the officer authorised to arrest the person
shall inform such person of the grounds of arrest and produce him before a Magistrate within
_________ hours:
a) 12 hours
b) 24 hours
c) 48 hours
d) 36 hours

(iv) Whether penalties under any other provisions of the Act be imposed in respect of adjudication
proceedings under section 73 or 74?
a) Yes
b) No
c) At proper officer’s discretion
d) None of the above

(v) Period for Retention of Accounts under GST is:

a) 72 months from the due date of furnishing of annual return for the year pertaining to such
accounts and records.
b) 60 months from the due date of furnishing of annual return for the year pertaining to such
accounts and records.
c) 180 days from the due date of furnishing of annual return for the year pertaining to such
accounts and records.

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL ANSWERS TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
d) 365 days from the due date of furnishing of annual return for the year pertaining to such
accounts and records.

(vi) Determine the amount of GST in case of supply of service of ₹10,00,000 on 4th February 2025 and
invoice has also been issued on the same date. The date of payment is 31st January 2025. The
CGST rate has been increased from 5% to 12% w.e.f. 1st February 2025.
a) ₹50,000
b) ₹1,00,000
c) ₹70,000
d) ₹1,20,000

(vii) Mr. Ram a second-hand car dealer purchased a second hand car for ₹2,50,000. He sold the same
car to Mr. Lakshman for ₹3,00,000. Determine value of supply?
a) ₹3,00,000
b) ₹2,50,000
c) ₹50,000
d) None of the above

(viii) Mr. Ajay purchased goods from Mr. Chethan, a composition dealer worth ₹100,000. Since Mr.
Chethan was trader so he was supposed to pay only 1% of his turnover as his tax. The item so
purchased was otherwise taxable at 12%. What is the amount of credit which Mr. Ajay is eligible
to take?
a) ₹990
b) ₹12,000
c) ₹1,000
d) Not eligible to claim credit

(ix) Annual Return is summary of:

a) GSTR-1
b) GSTR-3B
c) GSTR-4
d) All of the above.

(x) Refund shall not be paid to the applicant if the amount of refund is less than –
a) ₹1000
b) ₹5000
c) ₹7000
d) ₹10000

(xi) Calculate Free on Board value from following: Ex-factory price of exporter- ₹10,000; Expenses
upto loading of goods by foreign exporter- ₹12,000. Post importation cost- ₹8000:
a) ₹30,000
b) ₹22,000
c) ₹18,000
d) ₹20,000

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL ANSWERS TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
(xii) Bona fide baggage means:
a) used personal effects, travel souvenirs and articles other than those mentioned in
Annexure I.
b) used personal effects, travel souvenirs and articles other than those mentioned in
Annexure II.
c) used personal effects, travel souvenirs and articles other than those mentioned in
Annexure III.
d) None of the above.

(xiii) _________ grants the permission for manufacturing or other operations in the bonded facility.
a) Assistant Commissioner of Customs
b) Deputy Commissioner of Customs
c) Additional Commissioner of Customs
d) Commissioner of Customs

(xiv) Once a ______________ is cleared for home consumption, the bond submitted by the importer
gets debited automatically in the customs automated system and the details shall be made
available electronically to the Jurisdictional Custom Officer.
a) Bill of Entry
b) Shipping Bill
c) Entry inwards
d) Enty outwards

(xv) Trading Units undertaking to export may be set up under EOU, EHTP, STP or BTP Scheme for:
a) Rendering of services
b) Agriculture including agro-processing
c) bio-technology
d) None of these.

SECTION – B

Answer any 5 questions out of 7 questions given. Each question carries 14 marks. [5 × 14 = 70]

2) (a) Discuss the cases in which it is not necessary to generate an E-Way Bill under the GST framework. [7]
(b) Analyse the contents of form GSTR-3B. [7]

3) (a) From the following information calculate the value of taxable supply and GST payable thereon if all
charges are exclusive of GST.
(1) Hiring of bus (capacity to carry 10) to APSRTC (a state transport undertaking): ₹22 lakhs
(2) Hiring of goods vehicle to a goods transport agency: ₹12 lakhs
(3) Hiring of cars designed to carry passengers to a goods transport agency: ₹22 lakh
(4) Renting of dumpers: ₹15 lakhs
(5) Hiring of audio visual equipment’s for an event: ₹15 lakhs
(6) Hiring of pandal or shamiana for organizing functions/events: ₹30 lakhs
(7) Hiring of agro machinery for use in agriculture: ₹11 lakh
Assessee willing to avail the exemption benefits if any. Assume applicable rate of GST is 5%. Location
of supplier and place of supply in the same State. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL ANSWERS TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE

(b) Ram & Co., being a registered person under GST supplied the following in the month of January 2025:

Particulars Value in ₹

Taxable supply of goods 20,00,000

Exempted supply of goods 5,00,000

Sale of land 12,50,000

Recovery Agent services supplied to OK Bank 2,50,000

Deposit on which interest received 2,00,000

Total 42,00,000

Common inputs for the relevant tax period is ₹2,00,000. GST applicable rate on outward supply of
goods @28% Calculate the GST liability? [7]

4) (a) Identify the persons or entities who are liable to deduct TDS under the GST law. [7]
(b) Analyse who can be considered as a 'related person' under Section 15 of the CGST Act, 2017? [7]
.
5. (a) Hari Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to Santhi Traders and
Peace Motors Ltd. located in Ahmedabad (Gujarat) and Pune (Maharashtra) respectively. Hari Ltd.
has furnished the following details for the current month:

Sl. No. Particulars Santhi Traders Peace Motors Ltd.

(₹) (₹)
(i) Price of the goods (excluding GST) 20,000 15,000
(ii) Packing charges 600
(iii) Commission 400
(iv) Weighment charges 1,000
(v) Discount for prompt payment (recorded in the invoice) 500
Items given in points (ii) to (v) have not been considered while arriving at price of the goods given in
point (i) above.
Calculate the GST liability [CGST & SGST or IGST, as the case may be] of Hari Ltd. for the given
month. Assume the rates of taxes to be as under:

Particulars Rate of tax

Central tax (CGST) 9%
State Tax (SGST) 9%
Integrated tax (IGST) 18%
Make suitable assumptions, wherever necessary. [7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL ANSWERS TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE
(b) Arihant Life Insurance Company Ltd. (ALICL) has started its operations in the year 2025-26 (w.e.f. 1-
7-2023). During the year 2025-26, Arihant Life Insurance Company Ltd. (ALICL) has charged gross
premium of ₹180 lakhs from policy holders with respect to life insurance policies; out of which ₹100
lakhs have been allocated for investment on behalf of the policy holders.
Compute the GST liability of ALICL for the year 2025-26 under rule 32(4) of the CGST Rules, 2017
(i) if the amount allocated for investment has been intimated by ALICL to policy holders at the time
of providing service.
(ii) if the amount allocated for investment has not been intimated by ALICL to policy holders at the
time of providing of service.
(iii) if the gross premium charged by ALICL from policy holders is only towards risk cover. Applicable
rate of GST 18%. [7]

6. (a) Briefly explain the Remission of Duties and Taxes on Exported Products (RODTEP) Scheme Operating
Principles. [7]
(b) Describe Advance Authorisation Scheme. Who are the eligible applicants, and what supplies are eligible
under the scheme? [7]

7. (a) ‘A’ exported a consignment under drawback claim consisting of the following items -

Particulars Chapter FOB Drawback rate

Heading value ₹
200 pieces of pressure stores mainly made of 74.04 16,000 4% of FOB
beans @ ₹80/piece
200 Kgs. Brass utensils @ ₹200 per Kg. 74.13 40,000 ₹24/Kg.
200 Kg. Artware of brass @ ₹300 per Kg. 74.22 60,000 17.50% of FOB subject to a
maximum of ₹38 per Kg.
On examination in docks, weight of brass Artware was found to be 190 Kgs. and was recorded on
shipping bill. Compute the drawback on each item and total drawback admissible to the party. [7]

(b) From the particulars given below, calculate the assessable value of the imported goods under the
Customs Act,1962.
US $

(i) Cost of the machine at the factory of the exporting country 10,000

(ii) Transport charges incurred by the exporter from his factory to the port for 500
shipment.

(iii) Handling charges paid for loading the machine in the ship 50

(iv) Buying commission paid by the importer 50

(v) Freight charges from exporting country to India 1,000

(vi) Exchange Rate to be considered 1$ = ₹75

[7]

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Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 2
MODEL ANSWERS TERM – JUNE 2025
PAPER – 19 SYLLABUS 2022
INDIRECT TAX LAWS AND PRACTICE

8. (a) M/s. X Ltd. of Chennai, engaged in various businesses has provided the following services, whose values
are listed below. Calculate its GST liability:
(1) Service of interior decoration in respect of immovable property located in Jammu: ₹5 lakhs;
(2) Service of renting of commercial buildings in Delhi: ₹15 lakhs;
(3) Architectural services to an Indian Hotel Chain which has business establishment in Mumbai for
its newly acquired property in Sydney: ₹25 lakhs;
(4) Services provided as an Indian agent undertaking marketing in India of goods of a foreign seller:
₹51 lakhs;
(5) Services provided as travel agent undertaking marketing in India of services of a foreign seller: ₹1
lakh.
Applicable rate of GST 18%. [7]

(b) X Ltd., a unit in SEZ, received services from various service providers in relation to authorized
operations in SEZ during the month January 2025. The following details are furnished for the month
January, 2025:
(i) Value of Taxable services used exclusively for authorised operations within SEZ: ₹5,00,000
(exemption from GST availed).
(ii) Value of Taxable Services used by SEZ units and DTA units: ₹8,00,000. GST paid @18%.
(iii) Value of Taxable Service used wholly for DTA units: ₹3,00,000. GST paid @18%.
(iv) Export Turnover of SEZ Unit: ₹1,00,00,000
(v) Turnover of DTA Unit: ₹60,00,000
Calculate the ITC and amount of refund if any?
Note: All input services used by SEZ for its authorized operations only. [7]

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Directorate of Studies, The Institute of Cost Accountants of India