CA Final · May 2026 · Paper 5
CA Final Indirect Tax Laws May 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1 | 14 | Net GST payable in cash for a vehicle dealer: blocked motor vehicle credits, margin valuation of used goods, warranty supplies and reverse charge imports | Input Tax Credit |
| 2(a) | 5 | Gross GST liability of a passenger transport and tour business covering exemptions, on-board supplies, fines, e-commerce supplies and reverse charge on sponsorship | Charge of GST |
| 2(b) | 5 | Gifts and complimentary benefits to clients, dealers and employees: when they are deemed supplies under Schedule I and their taxable value | Supply under GST |
| 2(c) | 4 | Assessable value of a machine imported by air: buyer-supplied materials, royalty-type charges, post-import costs and notional freight and insurance | Valuation under the Customs Act, 1962 |
| 3(a)(i) | 2 | Time of supply for residential rent taxed under reverse charge when payment is delayed beyond the invoice period | Time of Supply |
| 3(a)(ii) | 3 | Time of supply and invoicing deadline for a continuous supply of services paid in periodic instalments | Time of Supply |
| 3(b)(i) | 2 | Whether penal charges levied by a lender for missed loan instalments are consideration for a supply | Supply under GST |
| 3(b)(ii) | 3 | Manner of discharging tax by an e-commerce operator liable under section 9(5) and whether credit reversal is needed | Electronic Commerce Transactions |
| 3(c) | 4 | Taxable event and applicable rate of duty for warehoused goods when an exemption is withdrawn before clearance | Levy of and Exemptions from Customs Duty |
| 4(a) | 5 | Refund of unutilised credit on zero-rated export of goods under LUT, applying the cap linked to domestic value of like goods | Refunds |
| 4(b) | 5 | E-way bill validity, change of conveyance and cancellation timelines when movement is delayed | Accounts and Records; E-way Bill |
| 4(b) OR | 5 | Job work to an unregistered worker in a special category State: ITC-04 timing, e-way bill duty and registration threshold | Job Work |
| 4(c) | 4 | Interest payable on duty arising from finalisation of a provisional customs assessment | Importation and Exportation of Goods |
| 5(a) | 5 | Penalties, cancellation of registration and compounding eligibility for fake invoicing and wrongful availment of credit | Offences and Penalties and Ethical Aspects under GST |
| 5(b) | 5 | Conditions for producing additional evidence before the GST Appellate Tribunal | Appeals and Revision (GST) |
| 5(c) | 4 | Eligible exporters and eligible capital goods under the EPCG scheme | Foreign Trade Policy |
| 6(a) | 6 | Order of appropriation of sale proceeds of goods or conveyance when recovering dues or detention penalty | Demands and Recovery |
| 6(b) | 4 | Grounds for provisional assessment and time limits for provisional and final assessment orders | Assessment and Audit |
| 6(c) | 4 | Categories of units and exports that receive double weightage for One Star Export House status | Foreign Trade Policy |
What stood out
- The 30-mark case scenario section was GST-heavy: 13 of 15 MCQs were on GST, with input tax credit, composition levy and place of supply recurring most often.
- Question 1 (14 marks) was again a full net-liability computation, this time built around a car dealership, so blocked credits on motor vehicles and margin valuation carried high weight.
- Customs and FTP together accounted for about 20 marks in the descriptive part, covering valuation, provisional assessment interest, taxable event for warehoused goods, EPCG and export house status.
- Procedural GST (appeals, penalties, recovery, assessment, e-way bill) made up most of Questions 4 to 6, rewarding candidates who revised sections and rules rather than only computations.
- The amendment cut-off moved forward to 31.10.2025, and recent items such as the section 74A regime and the new customs provisional assessment regulations appeared.
Practise the chapters that carried the marks
Input Tax Credit, Charge of GST, Importation and Exportation of Goods: study guides and practice questions in the CA Final format.