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CMA Final · Indirect Tax Laws and Practice · Walkthrough of GSTN Portal

Nair Pharma's GSTR-3B for a month shows tax liability of Rs 3,00,000 (all CGST/SGST/IGST combined). Its electronic credit ledger permits utilisation of Rs 2,20,000 under the rules, and the cash ledger balance is Rs 50,000. If the return is filed only after it is offset, what additional cash must be deposited before the liability can be fully discharged?

Additional cash of Rs 30,000 is needed. Liability of Rs 3,00,000 less usable credit of Rs 2,20,000 leaves Rs 80,000 payable in cash; the existing cash balance of Rs 50,000 covers part of it, leaving a shortfall of Rs 30,000 to be deposited.

  1. ARs 30,000Correct
  2. BRs 80,000
  3. CRs 1,30,000
  4. DRs 0

Explanation

Liability Rs 3,00,000 less credit Rs 2,20,000 leaves Rs 80,000 payable in cash. Cash ledger already has Rs 50,000, so the shortfall is Rs 80,000 - Rs 50,000 = Rs 30,000. Rs 80,000 ignores the existing cash balance; Rs 1,30,000 wrongly adds it.

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