TEST SERIES FOR

SEPTEMBER ’25 EXAM

TEST 1
QUESTION PAPER
Tharun Raj

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 ca final test series sept’ 25 exam
test – 1

Portion Covered
Segment – 1: Introduction to GST
Segment – 2: Supply under GST
Segment – 3: Levy and Collection under CGST
Segment – 4: Levy and Collection under IGST
Segment – 5: Exemptions

Section – A: MCQ’S (8 Marks)

Manavtaa Trust (‘trust’) is a charitable trust registered under section 12AB of the Income-tax
Act, 1961. The trust is well known for its educational, charitable and religious activities. The trust
became liable to registration under GST in the
current financial year since it exceeded the threshold limit for registration and thus, registered
in the State of Gujarat in the month of May.

In the month of June, a multinational company, Dhruvtara Ltd., gifted 500 laptops worth ` 50
lakh to the trust free of cost for charitable purposes, without any intention of seeking any benefit
by way of business promotion from such activity. The trust distributed these laptops for free of
cost in the same month to the deprived students for assisting them in their higher studies.

The trust also runs a higher secondary school in the name of Manavtaa Higher Secondary School
in the state of Gujarat. In the month of July, the trust availed security personnel services from
‘Perfect Security Solutions’, Gujarat, a proprietorship concern, for security of the school premises
for a consideration of ` 2,00,000. It also received legal consultancy services from ‘Maya & Co.’,
a firm of advocates for the issues relating to the said school for ` 1,20,000, in the same month.

The trust furnished following information regarding the expenses incurred by it in the month of
August; all transactions being inter-State:
(i) Services received and used for supplying taxable outward supplies – ` 3,50,000.
(ii) Catering services received for students of Manavtaa Higher Secondary School – ` 2,00,000.
(iii) Bus purchased with seating capacity of 25 persons including driver – ` 10,50,000 (Bus was
delivered in the first week of September).

The trust provided the following information in respect of the services provided by it during the
month of August:
(i) It runs an old age home for citizens aged 65 years or more. Nominal monthly charges of `
15,000 for boarding, lodging and maintenance are charged from each member. The total
number of members is 20.
(ii) It rents out a community hall situated within the precincts of a temple managed by it on 15th
August for a religious function in the first half for ` 5,000 and for an art exhibition in second
half for ` 6,000.
(iii) It rents out the rooms in the precincts of said temple to the devotees for a rent of ` 950 per
room per day. Total rent collected in August amounts to ` 35,000.

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All the figures given above are exclusive of taxes wherever applicable. Aggregate turnover of the
trust for the preceding financial year was ` 15 lakh. All the conditions necessary for availment of
ITC are fulfilled subject to the information given. The trust intends to avail exemption from GST
wherever applicable.

Based on the facts of the case scenario given above, choose the most appropriate answer to
Q. Nos. 1 to 4-

1. Which of the following activities of the trust does not amount to supply under the GST law?
a) Free laptops distributed to the deprived students
b) Boarding, lodging and maintenance of the senior citizens by the old age home run by
the trust
c) Renting of community hall situated within the precincts of the temple managed by the
trust
d) Renting of rooms in the precincts of the temple managed by the trust
[2 MARKS]

2. Compute the value of inward supplies on which tax is payable by the trust under reverse
charge, for the month of July.
a) ` 2,00,000
b) ` 3,20,000
c) ` 1,20,000
d) Nil
[2 MARKS]

3. Compute the value of exempt supply made by the trust for the month of August.
a) ` 3,00,000
b) Nil
c) ` 3,35,000
d) ` 35,000
[2 MARKS]

4. Compute the value of taxable supply made by the trust for the month of August.
a) ` 3,00,000
b) ` 11,000
c) Nil
d) ` 35,000
[2 MARKS]

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 Section B: Descriptive (14 Marks X 3 Question = 42 Marks)
(Question No. 1 is compulsory and answer any 2 out of 3 given below)

QUESTION 1:
Galaxy Cube Private Ltd., a registered person in Bharuch, Gujarat, engaged in various lines of
business, provided the following details regarding its transactions made during the month of May
2025:
Particulars Amount
a) Supplied a latest technology laptop with touch screen option to Managing `60,000
Director's friend (Open market value as well as sale to unknown customers
was at ` 90,000)
b) Supplied printed letter cards to M K Industries, a registered person in `5,00,000
Gandhinagar, Gujarat. Logo design was supplied by M K Industries. Out of `
5,00,000, Materials cost was ` 4,00,000 and balance was Printing cost.
c) Provided services of transportation of passengers by an Omnibus through an 12,58,000
Electronic Commerce Operator (ECO).
d) Provided catering services to Excel University of Patna, Bihar, which is 2,12,000
recognized by UGC for granting recognised qualification
e) Provided commissioning services under pure labour contract to M/s. Raj 4,50,000
Builders for multi-storey residential complex.
f) Paid towards rent to Local Municipal Corporation for the shop taken on rent 1,00,000
at a Bus Terminal in Gujarat.
g) Stock transferred without consideration to its branch in Gujarat and branch 1,25,000
has the same GSTIN
h) Paid to Mr. Mahajan, whose residential house was taken on rent for MD of the 50,000
company for his residential use.
i) Paid as donation to a local old age home for setting a water cooler where the 4,50,000
name of the company is embedded on the water cooler to express their
support for the good cause
Additional Information :
(i) All the figures given above are exclusive of GST.
(ii) All inward and outward supplies are intra-state.
(iii) Subject to the information given above, all the conditions necessary for availing the ITC have
been fulfilled.
(iv) GST rates for goods are 6% CGST, 6% SGST and GST Rates for services are 9% CGST, 9%
SGST.
Compute the GST payable (FCM as well as RCM) by Galaxy Cube Private Ltd. for the month of
May 2025.
[14 MARKS]

QUESTION NO. 2(A):

Razor Online Pvt. Ltd., a company registered under GST in Maharashtra, is a Payment
Aggregator (PA) regulated by the Reserve Bank of India (RBI). It facilitates digital payments for
thousands of small merchants and e-commerce platforms.
Razor Online receives customer payments through credit cards, debit cards, and UPI, collects
the funds in an escrow account, and settles them to the merchants within the RBI-prescribed
timeline. It charges a nominal transaction fee for each payment processed.
In addition to that they Payment Gateway (PG) services (i.e., facilitating transaction routing and
security authentication for online payments, but not handling funds), and charges platform usage
fees to online merchants.

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In the month of May 2025, the following transactions were recorded:
Avg. Transaction Total No. of Fees Charged
Type of Service Provided
Value Transactions (Total)
Payment settlement (card
₹1,500 20,000 ₹4,00,000
transactions)
Payment settlement (UPI
₹2,500 10,000 ₹3,00,000
transactions)
Payment gateway charges
₹1,500 20,000 ₹3,60,000
(Card transactions)
Payment gateway charges (UPI
₹2,500 10,000 ₹2,60,000
transactions)
Compute the GST liability of Razor Online Pvt. Ltd. For the month of May 2025, if the applicable
rate of GST is 18% (Write relevant legal provisions supporting your answer)
[5 MARKS]

QUESTION NO. 2(B):

Vasudha Agro Exports Pvt. Ltd., a registered person in Madhya Pradesh, is engaged in the export
of various agricultural products including raw cotton (HSN 5201) and refined rice (HSN 1006).
For the month of November 2024, Vasudha undertakes the following exports:
Item Value of Method of Export Remarks
Exported Exports (FOB)
Raw Cotton ₹1.2 crore Export with payment of Raw cotton attracts export
IGST duty of 10% w.e.f. Oct 2024
Refined ₹1.5 crore Export under LUT Not subject to export duty
Rice (without payment of
IGST)
Refined ₹50 lakhs Export with payment of -
Rice IGST
The company applies for refund of ₹18 lakhs of IGST paid on raw cotton and ₹6 lakhs of IGST
paid on refined rice. They also apply for refund of accumulated ITC on input services used in
LUT-based exports of rice. Explain whether refund is available in the above cases.
[5 MARKS]

QUESTION NO. 2(C):

ABC Insurance Ltd., a registered insurer in Maharashtra, is engaged in providing insurance
services. During the current financial year, the company entered into following transactions:
(i) ABC Insurance Ltd. enters into a co-insurance agreement with XYZ Insurance Ltd. where
ABC Insurance Ltd. is the lead insurer. The insured – Gyaati Industries- pays a total premium
of ` 50,00,000 which is apportioned by the lead insurer - ABC Insurance Ltd. between itself
and XYZ Insurance Ltd. in the ratio of 60:40 for the insurance services jointly supplied by
them to Gyaati Industries. ABC Insurance Ltd. agrees to discharge the entire GST liability on
the full amount of premium received from Gyaati Industries.
(ii) A large industrial plant needs an insurance worth ` 500 crore. It approaches ABC Insurance
Ltd. for the same. However, since ABC Insurance Ltd. is unable to underwrite the entire risk
alone, it enters into a reinsurance agreement with a reinsurer – PQR Insurance Ltd. The total
premium charged is ` 50 lakh. The insurer - ABC Insurance Ltd. pays a reinsurance premium
of ` 20 lakh to PQR Insurance Ltd. This allows ABC Insurance Ltd. to manage its risk and
financial exposure. While paying this amount to PQR Insurance Ltd., ABC Insurance Ltd.
deducts a ceding commission of ` 1,00,000 which it has charged for the services it provides
to PQR Insurance Ltd. PQR Insurance Ltd. pays GST on the gross reinsurance premium
including the ceding commission.
Based on the provisions of Schedule III of the CGST Act, 2017, discuss whether the following
activities amount to supply:

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 a) Apportionment of co-insurance premium by ABC Insurance Ltd. To XYZ Insurance Ltd.
for the insurance services jointly supplied by them to Gyaati Industries.
b) Services by ABC Insurance Ltd. to PQR Insurance Ltd. for which ceding commission is
deducted from reinsurance premium paid by ABC Insurance Ltd. to PQR Insurance Ltd.
[4 MARKS]

QUESTION NO. 3(A):

M/s All-in-One, a partnership concern and a registered supplier under GST, is engaged in
providing various services under one roof. The concern provides the following information
pertaining to supply made/ input services availed by it during the month of March 2022:
Particulars `
(i) Provided security services to ABC P. Ltd. a registered Person under GST 60,000
(ii) Provided renting of motor vehicle to Amaze Tours Ltd. and supply value 75,000
included cost of fuel
(iii) Paid Sponsorship to Priti & Co. CA Firm for an event organised by them to 40,000
create GST awareness.
(iv) Availed representational service from PB and Co. a Law Firm towards a 70,000
Consumer Court case
(v) Imported cloud storage services from GOOGLE Inc. (US) for storing the data 60,000
Determine the GST liability of M/s All-in-One for the month of March, 2022 by giving necessary
explanations for treatment of various items. Rate of tax for both inward and outward supply is
CGST / SGST @ 9% each except renting a vehicle, for which CGST / SGST @ 2.5% each is
applicable. M/s All-in-One commenced its business from February, 2022. All the supplies are
intra-state unless specifically applicable.
[5 MARKS]
QUESTION NO. 3(B):
State whether GST payable in the following cases (provide explanations supporting your answers)
1) Service received by Government of India from a pollution consultant in Germany service
pertains to management of pollution control in and around NCR consideration paid by
Government of India is ` 12,00,000 out of which ` 3,00,000 is reimbursed by Delhi
Government.
2) Wanderlust Travels Pvt. Ltd. is a tour operator based in Mumbai that provides various travel
packages to domestic and international destinations. They offered a tour package to Mr.
Johnson (an Australian citizen) for `10,00,000 where the tour conducted in India is for 3
days 6 hrs and tour outside India is for 5 days 18 hrs.
3) Kerala Industrial development corporation gives an industrial plot of land to X ltd on lease
for a period of 85 years. One time salami is ` 30 lakhs and annual lease rental is ` 5 lakhs.
Such plot is utilized by X ltd for development of industry.
4) Skill Bridge Pvt. Ltd. signs an MoU with the National Skill Development Corporation (NSDC) to
act as an approved training partner under the Pradhan Mantri Kaushal Vikas Yojana
(PMKVY), a scheme implemented by NSDC. It conducts training on retail sales associate
skills aligned to NSQF Level 4 and receives ₹50 lakhs from NSDC for this purpose. However,
they are not training body accredited by NSDC.
5) Sure Life Insurance Ltd., a registered general insurance company contributes `50 lakhs
towards motor vehicle insurance fund maintained by Government of India under Section
164B of the Motor vehicles Act.
[5 MARKS]

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QUESTION NO. 3(C):
Determine the person liable to pay GST in the following cases as per Sec. 9(3) of CGST Act,
2017:
(i) Sale of tendu leaves by an agriculturist to M/s ABC P. Ltd. an unregistered person engaged
in trading the same
(ii) Sale of lottery tickets by Future gaming P. Ltd., a lottery organizer authorized by
Government of Maharashtra to Mr. Thakker, a lottery distributor
(iii) Sale of seized goods by State Government by way of auction to M/s PQR & Co, a registered
partnership firm engaged in sale of second hand goods
(iv) Sale of silk yarn by M/s. Vimal & Co., a trader of silk yarn to Mr. Pandu (Registered person)
[4 MARKS]

QUESTION NO. 4(A);

UrbanStay Pvt. Ltd. is an electronic commerce operator (ECO) facilitating short-term
accommodation services through its platform (a notified service under Section 9(5) of the CGST
Act). In the month of April 2025, it had the following transactions:
Outward supplies:
Amount (Excl. GST
Nature of Supply
GST) Rate
Booking charges for homestays provided by unregistered ₹10,00,000 12%
persons through platform
Platform usage fee charged to property owners (commission) ₹2,00,000 18%
Advertising space sold on website to brands ₹1,00,000 18%

Inward supplies:
Description Amount (Excl. GST) GST Rate
Google Ads and marketing services ₹1,00,000 18%
Office rent (commercial property) ₹70,000 18%
Laptop purchases for marketing team ₹1,20,000 18%
Food and catering for in-house training ₹20,000 5%
Cloud server subscription ₹60,000 18%
Determine the net GST payable in cash, after adjusting eligible ITC against liability. Clearly
bifurcate the amount payable under Section 9(5) and own supplies.
[5 MARKS]

QUESTION NO. 4(B)

Gamma Multiplex registered in the State of Punjab, gives the following offers for booking movie
tickets :
[Link]. Particulars Price Charged (Excl. GST)
1 Tickets only ` 200 per person
2 Combo offer ` 350 per person (which includes ` 200 for ticket and ` 150 for
snacks)
3 Snacks only ` 250 per token (snacks quantity will be more when compared to
combo offer)

For the month of April 2024, Gamma Multiplex situated in Punjab made the following supplies :
(i) 10,000 tickets under combo offer
(ii) 2,500 tickets only
(iii) 1,000 tokens of snacks only

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GST rates applicable are:
Rate of GST CGST SGST IGST
Supply of Snacks 2.5% 2.5% 5%
Supply of service of exhibition of cinema 9% 9% 18%

You are required to determine the following, by explaining the relevant provisions :
(i) Rate of GST to be applied when combo supply is made
(ii) Rate of GST to be applied when snacks are sold in Multiplex
(iii) Gross GST payable by Gamma Multiplex for the month of April, 2024.
[5 MARKS]

QUESTION NO. 4(C):

Bharuch Dahej Railway Company Ltd. (BDRCL), a Special Purpose Vehicle (SPV), has been tasked
with enhancing industrial connectivity in Gujarat by undertaking gauge conversion projects.
During the month of December 2024, the following transactions took place:
(i) Indian Railways used the converted broad-gauge line for passenger and freight
operations. BDRCL charged Indian Railways ₹15,00,000 for the infrastructure use under
the concession agreement.
(ii) Indian Railways carried out maintenance services, including track inspections and repair
work, for the converted line. The cost of these services was ₹6,00,000.
(iii) BDRCL leased commercial space at one of the railway stations on the converted line to
a private logistics company for ₹8,00,000 per month.
(iv) Indian Railways transported construction materials for BDRCL’s ongoing infrastructure
projects. The freight charges were ₹3,00,000.
Analyze the taxability of each transaction and provide supporting explanation for your answer.
[4 MARKS]

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