Taxation - Income TaxQuestion 5605 of 146
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9. Amount of inter-state outward supply on which Sandeep shall pay tax is:

Options

A` 4,25,000
B` 5,70,000
C` 7,70,000
D` 3,45,000 (2 Marks)
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Correct Answer

✅ Option B — ` 5,70,000

All Options:

  • A` 4,25,000
  • B` 5,70,000 ✓
  • C` 7,70,000
  • D` 3,45,000 (2 Marks)

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Detailed Solution & Explanation

Correct Answer: Option **B** **Explanation:** Sandeep is a registered person in Pune, Maharashtra. We need to determine the place of supply and nature of tax for each outward supply:
1. **Training camps in Uttar Pradesh for the general public:** - The recipient of the service is the general public (unregistered persons). - Under Section 12(5)(b) of the IGST Act, 2017, the place of supply of services provided by way of training and performance appraisal to an unregistered person is the location where the services are actually performed. - Since the services are performed in Uttar Pradesh (other than Maharashtra, the supplier's state), this constitutes an **inter-state supply**. - Value of supply = ₹ 3,45,000.
2. **Training service to Arihant Pharma Limited:** - The recipient is a registered person under GST in Goa. - Under Section 12(5)(a) of the IGST Act, 2017, the place of supply of training services provided to a registered person is the location of such recipient. - Since Arihant Pharma Limited is registered in Goa, the place of supply is Goa (other than Maharashtra, the supplier's state). This constitutes an **inter-state supply**. - Value of supply = ₹ 2,25,000.
3. **Accommodation in residential property in Mumbai:** - Under Section 12(3)(b) of the IGST Act, 2017, the place of supply of services by way of lodging accommodation by a hotel, inn, guest house, homestay, club or campsite is the location where the immovable property is located. - Since the property is in Mumbai, Maharashtra (same as the supplier's location state), this constitutes an **intra-state supply**. - Value of supply = 20 employees ×\displaystyle \times ₹ 10,000 = ₹ 2,00,000.
4. **Total Inter-state Outward Supply:** Total Inter-state Outward Supply=Training camps in UP+Training to Arihant Pharma\text{Total Inter-state Outward Supply} = \text{Training camps in UP} + \text{Training to Arihant Pharma} Total Inter-state Outward Supply=₹3,45,000+₹2,25,000=₹5,70,000\text{Total Inter-state Outward Supply} = ₹ 3,45,000 + ₹ 2,25,000 = ₹ 5,70,000 Hence, **Option B** is the correct answer.

Key Concepts to Understand

Supply

Total amount of a good available to consumers.

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