Goods & Services Tax — Exercise 1

A dealer X in Meerut (UP) sold a table for ₹ 12,000 to a consumer in Agra (UP). If the GST rate is 18% calculate.

(i) the IGST

(ii) the CGST

(iii) the SGST

Answer

Since both places are in the same state (intra-state), GST is split into CGST and SGST.

Given,

GST rate = 18%

∴ CGST rate = $\dfrac{18}{2}$ = 9%

and

SGST rate = $\dfrac{18}{2}$ = 9%

(i) Since transaction is not inter-state, so IGST is not applicable.

Hence, IGST = ₹ 0.

(ii) CGST = 9% of ₹ 12,000

$= \dfrac{9}{100} \times 12000$

= ₹ 1,080

Hence, CGST = ₹ 1,080.

(iii) SGST = 9% of ₹ 12,000

$= \dfrac{9}{100} \times 12000$

= ₹ 1,080

Hence, SGST = ₹ 1,080.

A wholesaler A sells a machine to a retailer B for ₹ 5,000 and retailer B sells it to a consumer at a profit of ₹ 1,000. If the GST rate is 12%, calculate the tax liability of the retailer B.

Answer

Given:

Retailer B's cost = ₹ 5,000

Profit for retailer B = ₹ 1,000

Selling Price of Retailer B = ₹ 5,000 + ₹ 1,000 = ₹ 6,000

GST charged by Retailer B = 12% of ₹ 6,000

= $\dfrac{12}{100}$ x 6,000

= ₹ 720

GST paid by Retailer B = 12% of ₹ 5,000

= $\dfrac{12}{100}$ x 5,000

= ₹ 600

Tax Liability of Retailer B = GST charged - GST paid

= ₹ 720 - ₹ 600

= ₹ 120.

Hence, tax liability of the retailer B = ₹ 120.

A microwave oven having a market price of ₹ 22,000 was sold by a dealer in Patna (Bihar) to a consumer in Gaya (Bihar) at a discount of 25%. If the rate of GST is 18%, calculate the IGST CGST and SGST charged from the consumer. Also determine the total amount of Bill.

Answer

Given:

Market price = ₹ 22,000

Discount percentage = 25%

GST Rate = 18%

CGST rate = SGST rate = $\dfrac{\text{GST rate}}{2} = \dfrac{18}{2}$% = 9%

As the transaction is intra-state (within Bihar), so IGST is not applicable and GST is split equally into CGST and SGST.

Discount = 25% of ₹ 22,000 = $\dfrac{25}{100}$ x 22,000 = ₹ 5,500

Price after discount = ₹ 22,000 - ₹ 5,500 = ₹ 16,500

IGST = ₹ 0 (∵ Intra-state transaction)

CGST = 9% of ₹ 16,500 = $\dfrac{9}{100} \times 16,500$ = ₹ 1,485.

SGST = 9% of ₹ 16,500 = $\dfrac{9}{100} \times 16,500$ = ₹ 1,485.

Total GST = CGST + SGST = ₹ 1,485 + ₹ 1,485 = ₹ 2,970.

Total Amount = Price after discount + GST

= ₹ 16,500 + ₹ 2,970 = ₹ 19,470

Hence, IGST = ₹ 0, CGST = ₹ 1,485, SGST = ₹ 1,485 and Total Bill Amount = ₹ 19,470.

A dealer in Mumbai sold a telescope to an end-user in Bangalore. The marked price of the telescope was ₹ 25000 and the dealer offered a discount of 20%. If the rate of GST is 28%, calculate the IGST, CGST and SGST charged from the end-user. Also determine the total amount of bill.

Answer

Given :

Marked price = ₹ 25,000

Discount percentage = 20%

GST rate = 28%

As the transaction is inter-state, so only IGST is applicable.

Discount = 20% of ₹ 25,000

= ₹ 25,000 × $\dfrac{20}{100}$ = ₹ 5,000

Discounted price = ₹ 25,000 - ₹ 5,000 = ₹ 20,000

IGST = 28% of ₹ 20,000

= 20,000 × $\dfrac{28}{100}$ = ₹ 5,600

Total bill amount = ₹ 20,000 + ₹ 5,600 = ₹ 25,600

Hence, IGST = ₹ 5,600, CGST = ₹ 0, SGST = ₹ 0 and Total Bill Amount = ₹ 25,600.

A dealer purchased a music system from the manufacturing company for ₹ 25000 and sold it to a consumer at a profit of 20%. If the rate of GST is 18%, calculate

(i) the amount of Input CGST and Input SGST for the dealer.

(ii) the amount of GST payable by dealer to the government.

(iii) the amount that the consumer had to pay for the music system.

[Assume that all the transactions take place in the same state]

Answer

Given:

Cost Price (CP) for the dealer = ₹ 25,000

GST rate = 18%

All transactions occur within the same state, so CGST and SGST are applicable.

CGST rate = SGST rate = $\dfrac{\text{GST rate}}{2} = \dfrac{18}{2}$% = 9%

The dealer makes a 20% profit while selling to consumer.

Selling Price (excluding GST) = ₹ 25,000 + 20% of ₹ 25,000

= ₹ 25,000 + $\dfrac{20}{100} \times 25,000$

= ₹ 25,000 + ₹ 5,000

= ₹ 30,000.

(i) For dealer :

On purchase price of ₹ 25,000.

Input CGST = 9% of ₹ 25,000 = $\dfrac{9}{100} \times 25,000$ = ₹ 2,250.

Input SGST = 9% of ₹ 25,000 = $\dfrac{9}{100} \times 25,000$ = ₹ 2,250.

Hence, for dealer input CGST = input SGST = ₹ 2,250.

(ii) Total input GST = ₹ 2,250 + ₹ 2,250 = ₹ 4,500.

Output GST (on dealer's sale)

On selling price of ₹ 30,000.

Output CGST = 9% of ₹ 30,000 = $\dfrac{9}{100} \times 30,000$ = ₹ 2,700

Output SGST = 9% of ₹ 30,000 = $\dfrac{9}{100} \times 30,000$ = ₹ 2,700

Total output GST = ₹ 2,700 + ₹ 2,700 = ₹ 5,400

GST payable by dealer to government = Output GST – Input GST

= ₹ 5,400 - ₹ 4,500

= ₹ 900.

Hence, GST payable by dealer to the government = ₹ 900.

(iii) Cost price for consumer = ₹ 30,000

GST for consumer = GST charged by dealer = ₹ 5,400

Total = ₹ 30,000 + ₹ 5,400 = ₹ 35,400.

Hence, amount consumer pays for the music system = ₹ 35,400.

A registered computer engineer provides computer maintenance services to five different companies. He offers different discounts to different companies depending upon their payment terms.

If the rate of GST is 18%, calculate the output GST for the computer engineer.

Answer

C₁ :

Service cost = ₹ 8,200

Discount rate = 30%

Discounted cost = ₹ 8,200 - $\Big(8,200 \times \dfrac{30}{100}\Big)$

= ₹ 8,200 - ₹ 2,460

= ₹ 5,740

C₂ :

Service cost = ₹ 12,100

Discount = 25%

Discounted cost = ₹ 12,100 - $\Big(12,100 \times \dfrac{25}{100}\Big)$

= ₹ 12,100 - ₹ 3,025

= ₹ 9,075

C₃ :

Service cost = ₹ 13,600

Discount = 20%

Discounted cost = ₹ 13,600 - $\Big(13,600 \times \dfrac{20}{100}$)

= ₹ 13,600 - ₹ 2,720

= ₹ 10,880.

C₄ :

Service cost = ₹ 8,000

Discount = 15%

Discounted cost = ₹ 8,000 - $\Big(8,000 \times \dfrac{15}{100}\Big)$

= ₹ 8,000 - ₹ 1,200

= ₹ 6,800.

C₅ :

Service cost = ₹ 12,500

Discount = 10%

Discounted cost = ₹12500 - $\Big(12,500 \times \dfrac{10}{100}\Big)$

= ₹ 12,500 - ₹ 1,250

= ₹ 11,250

Total service cost (after discount) = ₹ 5,740 + ₹ 9,075 + ₹ 10,880 + ₹ 6,800 + ₹ 11,250 = ₹ 43,745

Total Output GST = 18% of ₹ 43745

= $\dfrac{18}{100} \times 43745$

= ₹ 7874.10

Hence, total output GST for engineer = ₹ 7,874.10

Mr. Kumar a registered dealer purchased goods worth ₹ 40,000 from a dealer (within the same state). If the rate of GST is 18%,

(i) Calculate the Input CGST and the Input SGST

(ii) If he sold these goods to Mr. Dev (within the state) for ₹ 50,000, calculate Mr. Kumar’s output CGST and output SGST

(iii) Calculate the CGST and SGST payable by Mr. Kumar

Answer

Given:

Purchase amount = ₹ 40,000

Selling amount = ₹ 50,000

GST rate = 18% (i.e., CGST = 9%, SGST = 9%)

Transactions are within the same state.

(i) Calculating,

Input CGST = 9% of ₹ 40,000

= ₹ 40,000 × $\dfrac{9}{100}$

= ₹ 3,600

Input SGST = 9% of ₹ 40,000

= ₹ 40,000 × $\dfrac{9}{100}$

= ₹ 3,600

Hence, input CGST = ₹ 3,600 and input SGST = ₹ 3,600.

(ii) Mr. Kumar sells the goods to Mr. dev for ₹ 50,000.

Output CGST = 9% of ₹ 50,000

= ₹ 50,000 $\times \dfrac{9}{100}$

= ₹ 4,500

Output SGST = 9% of ₹ 50,000

= ₹ 50,000 × $\dfrac{9}{100}$

= ₹ 4,500

Hence, output CGST = ₹ 4,500 and output SGST = ₹ 4,500.

(iii) Calculating,

Net CGST payable = Output CGST – Input CGST

= ₹ 4,500 – ₹ 3,600 = ₹ 900.

Net SGST payable = Output SGST – Input SGST

= ₹ 4,500 – ₹ 3,600 = ₹ 900.

Hence, net CGST payable = net SGST payable = ₹ 900.

A shopkeeper buys a machine at a discount of 20% from the wholesaler. The printed price of the machine is ₹ 16,000 and the rate of GST is 8%. The shopkeeper sells it to the consumer at the printed price. Calculate :

(i) the price at which the machine is bought by the consumer

(ii) the CGST and the SGST payable by the shopkeeper to the Government assuming that all the transactions were intrastate.

Answer

Given :

Printed price = ₹ 16,000

Discount from wholesaler to shopkeeper = 20%

Discounted price = ₹ 16,000 - $\dfrac{20}{100} \times 16,000$

= ₹ 16,000 - ₹ 3,200

= ₹ 12,800.

C.P. for shopkeeper = ₹ 12,800

GST rate = 8%

Since, transaction is intrastate.

CGST = $\dfrac{8}{2}$% = 4%

SGST = $\dfrac{8}{2}$% = 4%

Shopkeeper sells at printed price, i.e., ₹ 16,000

(i) Cost price for consumer (excluding GST) = ₹ 16,000

GST = 8% of ₹ 16,000

= $\dfrac{8}{100} \times 16,000$

= ₹ 1,280

Final price paid by consumer = ₹ 16,000 + ₹ 1,280 = ₹ 17,280.

Hence, final price paid by consumer = ₹ 17,280.

(ii) Total GST collected by shopkeeper = ₹ 1,280

Since the transaction is intrastate, GST is divide equally between center and state.

Output CGST = $\dfrac{₹1,280}{2}$ = ₹ 640

Output SGST = $\dfrac{₹1,280}{2}$ = ₹ 640

C.P. for shopkeeper = ₹ 12,800

CGST paid (Input CGST) = 4% of ₹ 12,800

$= \dfrac{4}{100} \times 12,800$

= ₹ 512.

SGST paid (Input SGST) = 4% of ₹ 12,800

$= \dfrac{4}{100} \times 12,800$

= ₹ 512.

CGST payable = Output CGST - Input CGST = ₹ 640 - ₹ 512 = ₹ 128

SGST payable = Output CGST - Input CGST = ₹ 640 - ₹ 512 = ₹ 128.

Hence, net CGST payable = net SGST payable = ₹ 128.

A wholesaler buys a machine from the manufacturer for ₹ 25,000. He marks the price of the machine 20% above his cost price and sells it to a retailer at 10% discount on the marked price. If the rate of GST is 18% and assuming that all transactions occur within the same state, calculate :

(i) the marked price of the machine.

(ii) retailers cost price inclusive of GST.

(iii) the CGST and SGST payable by the wholesaler to the government.

Answer

Given :

Wholesaler's cost price = ₹ 25,000

Markup = 20%

Discount to retailer = 10% on marked price

GST rate = 18%

As the transaction is intra-state so CGST and SGST are applicable.

CGST rate = SGST rate = $\dfrac{\text{GST rate}}{2} = \dfrac{18}{2}$% = 9%.

(i) Marked Price = Cost Price + 20% of Cost Price

= ₹ 25,000 + (20% of ₹ 25,000)

= ₹ 25,000 + $\dfrac{20}{100} \times 25,000$

= ₹ 25,000 + ₹ 5,000

= ₹ 30,000.

Hence, marked price for the machine = ₹ 30,000.

(ii) Given,

Retailer gets 10% discount on marked price.

Discount = $\dfrac{10}{100} \times 30,000$ = ₹ 3,000

Cost price for retailer (before GST)

= M.P. - Discount

= ₹ 30,000 - ₹ 3,000 = ₹ 27,000

GST = 18% of ₹ 27,000

$= \dfrac{18}{100} \times 27000$

= ₹ 4,860.

Retailer's cost price inclusive of GST = ₹ 27,000 + ₹ 4,860 = ₹ 31,860.

Hence, cost price for retailer inclusive of GST = ₹ 31,860.

(iii) C.P. for wholesaler = ₹ 25,000

Input CGST of the wholesaler = 9% of ₹ 25,000

= $\dfrac{9}{100} \times 25000$

= ₹ 2,250

Input SGST of the wholesaler = 9% of ₹ 25,000

= $\dfrac{9}{100} \times 25000$

= ₹ 2,250

S.P. for wholesaler = ₹ 25,000

Output CGST of the wholesaler = 9% of ₹ 27,000

= $\dfrac{9}{100} \times 27000$

= ₹ 2,430

Output SGST of the wholesaler = 9% of ₹ 27,000

= $\dfrac{9}{100} \times 27000$

= ₹ 2,430

Net CGST payable = Output CGST – Input CGST

= ₹ 2,430 - ₹ 2,250

= ₹ 180

Net SGST payable = Output SGST – Input SGST

= ₹ 2,430 - ₹ 2,250

= ₹ 180

Hence, net CGST payable = net SGST payable = ₹ 180.

A manufacturer sells a dish washer to a wholesaler for ₹ 18,000. The wholesaler sells it to a dealer at a profit of ₹ 1,500 and the dealer sells it to a consumer at a profit of ₹ 2,500. If the rate of GST is 12% and assuming that all transactions occur within the same state, calculate:

(i) the total amount of GST received by the central and the state governments on the sale of this dish washer from the manufacturer to the consumer.

(ii) the amount paid by the consumer for the dish washer.

Answer

(i) Given :

Manufacturer's selling price = ₹ 18,000

Wholesaler's profit = ₹ 1,500

Dealer's profit = ₹ 2,500

GST rate = 12%

Wholesaler's selling price = ₹ 18,000 + ₹ 1,500 = ₹ 19,500

Dealer's selling price = ₹ 19,500 + ₹ 2,500 = ₹ 22,000

GST = 12% of ₹ 22,000

= ₹ 22,000 × $\dfrac{12}{100}$

= ₹ 2,640

In case of intra-state transaction GST is equally divided between center and state.

CGST = SGST = $\dfrac{2640}{2}$ = ₹ 1,320.

Hence, CGST = SGST = ₹ 1,320.

(ii) Amount paid by the consumer = Cost price + Total GST

= ₹ 22,000 + ₹ 2,640 = ₹ 24,640.

Hence, amount paid by the consumer = ₹ 24,640.

A shopkeeper bought an air conditioner at a discount of 20% from a wholesaler, the printed price of the air conditioner being ₹ 28,000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the GST rate is 18%, find

(i) the CGST and SGST payable by the shopkeeper to the Government.

(ii) the total amount paid by the consumer for the air conditioner.

[Assume that all transactions occurred in the same state]

Answer

Given :

Marked Price (Printed Price) = ₹ 28,000

Shopkeeper gets 20% discount from wholesaler.

Discount given by wholesaler = 20% of ₹ 28,000

= $\dfrac{20}{100}$ x 28000

= ₹ 5,600

(i) Cost Price (CP) of the Shopkeeper = ₹ 28,000 - ₹ 5,600 = ₹ 22,400.

Since, transaction is intra-state, CGST and SGST are applicable.

CGST rate = SGST rate = $\dfrac{\text{GST rate}}{2} = \dfrac{18}{2}$% = 9%

Input CGST of the Shopkeeper = 9% of ₹ 22,400

= $\dfrac{9}{100} \times 22,400$

= ₹ 2,016

Input SGST of the Shopkeeper = 9% of ₹ 22,400

= $\dfrac{9}{100} \times 22,400$

= ₹ 2,016

Discount given by Shopkeeper = 10% of ₹ 28,000

= $\dfrac{10}{100}$ x 28,000

= ₹ 2,800

Selling Price of the Shopkeeper excluding tax = ₹ 28,000 - 2,800 = ₹ 25,200.

Output CGST of the Shopkeeper = 9% of ₹ 25,200

= $\dfrac{9}{100} \times 25,200$

= ₹ 2,268

Output SGST of the Shopkeeper = 9% of ₹ 25,200

= $\dfrac{9}{100} \times 25,200$

= ₹ 2,268

Net CGST payable = Output CGST – Input CGST

= ₹ 2,268 - ₹ 2,016

= ₹ 252.

Net SGST payable = Output SGST – Input SGST

= ₹ 2,268 - ₹ 2,016

= ₹ 252

Hence, the CGST and SGST payable by the shopkeeper to the Government = ₹ 252 each.

(ii) Total Amount Paid by the Consumer = S.P. of shopkeeper (excluding tax) + CGST charged by shopkeeper + SGST charged by shopkeeper

= ₹ 25,200 + ₹ 2,268 + ₹ 2,268

= ₹ 29,736.

Hence, amount paid by the consumer = ₹ 29,736.

Rohan bought the following eatables for his friends :

Sohan Sweet Mart : Bill

Calculate :

(i) Total GST paid.

(ii) Total bill amount including GST.

Answer

For Laddu :

Total cost = ₹ 500 × 2 = ₹ 1000

GST = $\dfrac{5}{100}$ × 1000 = ₹ 50

Total amount (including GST) = 1000 + 50 = ₹ 1050.

For pastries :

Total cost = ₹ 100 × 12 = ₹ 1200

GST = $\dfrac{18}{100}$ × 1200 = ₹ 216

Total amount (including GST) = 1200 + 216 = ₹ 1416.

(i) Total GST paid = ₹50 + ₹216 = ₹266.

Hence, total GST paid = ₹266.

(ii) Total bill (including GST) = ₹ 1050 + ₹ 1416 = ₹ 2466.

Hence, total bill = ₹ 2466.

Refer to the given bill.

A customer paid ₹ 2000 (rounded off to the nearest ₹10) to clear the bill.

Note: 5% discount is applicable on an article if 10 or more such articles are purchased.

Check whether the total amount paid by the customer is correct or not. Justify your answer with necessary working.

Answer

For Article A,

M.P. = ₹ 190, Quantity = 6

Total M.P. = ₹ 190 × 6 = ₹ 1,140

G.S.T. = 12%

G.S.T. amount = 12% of ₹ 1,140

= $\dfrac{12}{100}$ × 1140 = ₹ 136.80

Total amount = ₹ 1,140 + ₹ 136.80 = ₹ 1,276.80

For Article B,

M.P. = ₹ 50, Quantity = 12

(Discount 5% applicable as quantity > 10)

Total M.P. = ₹ 50 × 12 = ₹ 600

Discount = 5% of ₹ 600

= $\dfrac{5}{100}$ × 600 = ₹ 30

Taxable value = ₹ 600 - ₹ 30 = ₹ 570

G.S.T. = 18%

G.S.T. amount = 18% of ₹ 570

= $\dfrac{18}{100}$ × 570 = ₹ 102.60

Total amount = ₹ 570 + ₹ 102.60 = ₹ 672.60

Total bill = ₹ 1,276.80 + ₹ 672.60 = ₹ 1,949.40

Rounded off to the nearest ₹10 then bill= ₹ 1,950

The customer paid ₹ 2,000, which is ₹ 50 extra (₹ 2,000 - ₹ 1,950).

Hence, the customer paid ₹ 50 extra.

A dealer in Delhi supplied several items to another dealer in Delhi and these items fall into different GST slabs. Find the total amount of bill if the details of the supplied items are as given below:

Answer

Item A :

Quantity = 40

Rate per piece = ₹ 100

Discount = 15%

GST = 8%

Price per piece after discount = ₹ 100 - $\Big(\dfrac{15}{100} \times 100\Big)$

= ₹ 100 - ₹ 15

= ₹ 85.

Total Cost = Quantity x Price per piece after discount

= 40 × ₹ 85 = ₹ 3,400.

GST = 8% of ₹ 3,400

$= \dfrac{8}{100} \times 3400$

= ₹ 272.

Total amount = Total cost + GST = ₹ 3,400 + ₹ 272 = ₹ 3,672.

Item B :

Quantity = 50

Rate per piece = ₹ 80

Discount = 20%

GST = 12%

Price per piece after discount = ₹ 80 - $\Big(\dfrac{20}{100} \times 80\Big)$

= ₹ 80 - ₹ 16

= ₹ 64

Total Cost = Quantity x Price per piece after discount

= 50 × ₹ 64 = ₹ 3,200.

GST = 12% of ₹ 3,200

$= \dfrac{12}{100} \times 3,200$

= ₹ 384.

Total amount = Total cost + GST

Total amount = ₹ 3,200 + ₹ 384 = ₹ 3,584

Item C :

Quantity = 150

Rate per piece = ₹ 40

Discount = 10%

GST = 18%

Price per piece after discount = ₹ 40 - $\Big(\dfrac{10}{100} \times 40\Big)$

= ₹ 40 - ₹ 4

= ₹ 36

Total cost = Quantity x Price per piece after discount

= 150 × ₹ 36 = ₹ 5,400

GST = 18% of ₹ 5,400

$= \dfrac{18}{100} \times 5400$

= ₹ 972

Total amount = Total cost + GST

= ₹ 5,400 + ₹ 972

= ₹ 6,372

Item D :

Quantity = 160

Rate per piece = ₹ 50

Discount = 5%

GST = 5%

Price per piece after discount = ₹ 50 - $\Big(\dfrac{5}{100} \times 50\Big)$

= ₹ 50 - ₹ 2.50

= ₹ 47.50

Total cost = Quantity x Price per piece after discount

= 160 × ₹ 47.50 =

= ₹ 7,600

GST = 5% of ₹ 7,600

= $\dfrac{5}{100} \times 7600$

= ₹ 380

Total amount = Total cost + GST

= ₹ 7,600 + ₹ 380 = ₹ 7,980

Total Bill Amount = ₹ 3,672 + ₹ 3,584 + ₹ 6,372 + ₹ 7,980 =

Hence, total bill = ₹ 21,608.

A cycle manufacturer in Ghaziabad (UP) sold a cycle to a dealer in Agra (UP) for ₹ 16,000. This cycle was then sold to a dealer in Ujjain (M.P) for ₹ 17,500. If the GST rate for cycle is 12%, calculate

(i) the net GST payable at Agra

(ii) Input Tax Credit for the dealer in Ujjain

Answer

(i) Given:

Cost price of cycle for dealer in Agra = ₹ 16,000

Selling price of cycle for Dealer in Agra = ₹ 17,500

GST rate = 12%

GST on purchase for dealer in Agra (intra-state) :

CGST = 6% of ₹ 16,000

$= \dfrac{6}{100} \times 16,000$

= ₹ 960

SGST = 6% of ₹ 16,000

$= \dfrac{6}{100} \times 16,000$

= ₹ 960

Total GST paid by Agra dealer = ₹ 960 + ₹ 960 = ₹ 1,920

GST on sale for Agra dealer (inter-state)

Value = ₹ 17,500

IGST = 12% of ₹ 17,500

= $\dfrac{12}{100} \times 17,500$

= ₹ 2,100

Total GST charged by Agra dealer = ₹ 2,100.

Net GST Payable at Agra = GST charged - GST paid

= ₹ 2,100 - ₹ 1,920

= ₹ 180.

Hence, Net GST payable at Agra = ₹ 180.

(ii) Dealer in Ujjain bought the cycle for ₹ 17,500 and paid ₹ 2,100 IGST.

This IGST paid on the purchase becomes the Input Tax Credit (ITC) for the dealer in Ujjain.

Hence, Input Tax Credit for the dealer in Ujjain = ₹ 2,100.

In a GST chain, a dealer Mr. Shah purchases an article for ₹ 50,000 and supplies it to another dealer Mr. Paresh at a profit of ₹ 6,000. Mr. Paresh sells it to a consumer Mrs. Gupta at a profit of ₹ 4,000. If the rate of GST is 18% and if all transactions were intrastate, calculate

(i) ITC for Mr. Shah

(ii) Input Tax payable by Mr. Paresh

(iii) Total cost price of the article for Mrs. Gupta

(iv) Output GST for Mrs. Gupta

Answer

Given :

Cost price of the article for Mr. Shah is = ₹ 50,000

Profit of Mr.Shah = ₹ 6,000

Selling price of Mr. Shah = ₹ 50,000 + ₹ 6,000 = ₹ 56,000

Cost price of Mr. Paresh (excluding tax) = ₹ 56,000

Profit of Mr. Paresh = ₹ 4,000

Selling price of Mr. Paresh = ₹ 56,000 + ₹ 4,000 = ₹ 60,000

Cost price of the article for Mrs. Gupta (excluding tax) = ₹ 60,000

GST rate = 18%

As the transaction is intra-state so CGST and SGST are applicable

CGST rate = SGST rate = $\dfrac{18}{2}$ = 9%

(i) ITC for Mr. Shah = 18% of ₹ 50,000

$= \dfrac{18}{100} \times 50,000$

= ₹ 9,000.

Hence, ITC for Mr, Shah = ₹ 9,000.

(ii) Cost price for Mr. Paresh (excluding tax) = ₹ 56,000

Input tax paid by Mr. Paresh = 18% of ₹ 56,000

$= \dfrac{18}{100} \times 56,000$

= ₹ 10,080.

Hence, input tax paid by Mr. Paresh = ₹ 10,080.

(iii) Cost price of the article for Mrs. Gupta before tax = ₹60,000.

GST = 18% of ₹ 60,000

$= \dfrac{18}{60,000} \times 60,000$

= ₹ 10,800.

Total cost price for Mrs. Gupta = Cost price + GST

= ₹ 60,000 + ₹ 10,800

= ₹ 70,800.

Hence, cost price for Mrs. Gupta including tax = ₹ 70,800.

(iv) Mrs. Gupta is the end consumer, so no output GST is paid by her.

Hence, Output GST for Mrs. Gupta = ₹ 0.

A retailer purchased an air conditioner (A.C.) for ₹30,000. He marked up its price by 20% and then allows a discount of 10% on the marked price to a customer. If the sale is intra-state and the rate of GST is 28%, find the:

(i) marked price of A.C.

(ii) total amount paid by the customer including GST.

(iii) tax collected by the central and the state governments respectively.

Answer

Given,

(i) Given,

Cost price = ₹30,000

Markup = 20%

Markup amount = 20% of cost price

= $\dfrac{20}{100}$ × 30000

= ₹ 6,000

Marked price = Cost price + Markup amount

= 30,000 + 6,000

= ₹ 36,000

Hence, marked price = ₹ 36,000.

(ii) Given,

Discount = 10%

Discount amount = 10% of marked price

= $\dfrac{10}{100}$ × 36000

= ₹ 3,600

Selling price = Marked price - Discount

= 36000 - 3600

= ₹ 32,400

GST = 28%

GST amount = 28% of selling price

= $\dfrac{28}{100}$ × 32400

= ₹ 9,072.

Total amount paid by customer = Selling price + GST

= ₹ 32,400 + ₹ 9,072

= ₹ 41,472.

Hence, total amount paid by the customer = ₹ 41,472.

(iii) From part (b),

Total GST = ₹ 9,072

GST = 28%

CGST= SGST = $\dfrac{GST}{2} = \dfrac{9072}{2}$ ​ = ₹ 4,536.

Hence, tax collected by central government = ₹ 4,536 and tax collected by state government = ₹ 4,536.

Mr. Batra, a registered dealer in Hisar (Haryana) purchased blankets worth ₹ 2,00,000. He sold 50% of these blankets to a dealer in Panipat (Haryana) for ₹ 1,30,000 and the rest of the goods remain in his stock. If the GST rate is 5%, find the excess credit of CGST and SGST to be carried forward.

Answer

Given :

Purchase value of blankets for Mr. Batra = ₹ 2,00,000

GST rate = 5%

As the transaction is intra-state so CGST and SGST are applicable

CGST rate = SGST rate = $\dfrac{5}{2}$% = 2.5%

50% goods sold for ₹ 1,30,000. The rest (50%) remain in stock.

On purchase of ₹ 2,00,000.

Input CGST = 2.5% of ₹ 2,00,000

$= \dfrac{2.5}{100} \times 2,00,000$

= ₹ 5,000

Input SGST = 2.5% of ₹ 2,00,000

$= \dfrac{2.5}{100} \times 2,00,000$

= ₹ 5,000

GST on Sales (Output Tax)

Sales value = ₹ 1,30,000

Output CGST = 2.5% of ₹ 1,30,000

$= \dfrac{2.5}{100} \times 1,30,000$

= ₹ 3,250.

Output SGST = 2.5% of ₹ 1,30,000

$= \dfrac{2.5}{100} \times 1,30,000$

= ₹ 3,250

Excess CGST = Input CGST - Output CGST

= ₹ 5,000 - ₹ 3,250

= ₹ 1,750.

Excess SGST = Input SGST - Output SGST

= ₹ 5,000 - ₹ 3,250

= ₹ 1,750.

Hence, Excess credit to be carried forward: CGST= ₹ 1,750, SGST= ₹ 1,750.

A wrist watch was sold by a wholesaler from Mumbai (Maharashtra) to a dealer in Indore (MP) for ₹ 22,000. The dealer in Indore sold it to an end-user in Gwalior (MP) at a profit of ₹ 5,000. If the rate of GST is 18%, calculate :

(i) the net IGST, CGST and SGST payable by the dealer in Indore.

(ii) the cost price of the watch for the end-user.

Answer

A wrist watch was sold by a wholesaler from Mumbai (Maharashtra) to a dealer in Indore (MP) for ₹ 22,000

This is an interstate sale. Therefore, IGST will be levied.

Selling Price (from Wholesaler to Dealer): ₹ 22,000

IGST charged by Wholesaler : 18% of ₹ 22,000

= $\dfrac{18}{100}$ × 22,000

= ₹ 3,960

This ₹ 3,960 IGST becomes the Input Tax Credit (ITC) for the dealer in Indore.

Dealer (Indore, MP) sold it to an end-user in Gwalior (MP) at a profit of ₹ 5,000.

This is an intrastate sale. Therefore, CGST and SGST will be levied. The GST rate of 18% is split equally: 9% for CGST and 9% for SGST.

Cost Price for Dealer in Indore : ₹ 22,000

Profit for Dealer in Indore : ₹ 5,000

Selling Price (from Dealer to End-user): ₹ 22,000 + ₹ 5,000 = ₹ 27,000

CGST charged by Dealer : 9% of ₹ 27,000

= $\dfrac{9}{100}$ × ₹ 27,000

= ₹ 2,430.

SGST charged by Dealer : 9% of ₹ 27,000

= $\dfrac{9}{100}$ × ₹ 27,000

= ₹ 2,430.

(i) The dealer in Indore has an output GST liability from the sale to the end-user (CGST and SGST) and has an IGST input tax credit from the initial purchase.

Output GST for the dealer in Indore :

Output CGST = ₹ 2,430

Output SGST = ₹ 2,430

Input Tax Credit (ITC) available for the dealer in Indore:

IGST ITC = ₹ 3,960

Utilization of ITC:

According to GST rules, IGST credit can be used to offset IGST liability first, then CGST, and then SGST.

Offsetting Output CGST:

Output CGST = ₹ 2,430

IGST ITC used against CGST = ₹ 2,430

Remaining IGST ITC = ₹ 3,960 - ₹ 2,430 = ₹ 1,530

Net CGST payable by dealer = ₹ 0

Offsetting Output SGST:

Output SGST = ₹ 2,430

Remaining IGST ITC available = ₹ 1,530

IGST ITC used against SGST = ₹ 1,530

Net SGST payable by dealer = ₹ 2,430 - ₹ 1,530 = ₹ 900

Net IGST payable by dealer: Since there was no output IGST for the dealer in Indore (their sale was intrastate) and all their input IGST was utilized, the net IGST payable is zero.

Net IGST payable = ₹ 0.

Hence, net IGST payable = ₹ 0, net CGST payable = ₹ 0 and net SGST payable = ₹ 900.

(ii) Selling price of watch for dealer in Indore to end user (excluding tax) = ₹ 27,000

GST = 18% of ₹ 27,000

$= \dfrac{18}{100} \times 27,000$

= ₹ 4,860.

Cost for end user = ₹ 27,000 + ₹ 4,860 = ₹ 31,860.

Hence, cost for end user = ₹ 31,860.

A wholesaler of clocks in Jaipur (Rajasthan) purchased a vintage clock for ₹ 2,000 and supplied it to a dealer in Ratlam (MP) for ₹ 2,400. This clock was sold by the Ratlam dealer to an end-user in Delhi for ₹ 3,000. If the rate of GST is 18%, calculate:

(i) the net IGST, CGST and SGST payable by Ratlam dealer

(ii) the total cost of the clock for the end-user in Delhi

Answer

Transaction 1 : Wholesaler (Jaipur, Rajasthan) to Dealer (Ratlam, MP)

This is an interstate sale. Therefore, IGST will be levied.

Selling Price (from Wholesaler to Ratlam Dealer): ₹ 2,400

IGST charged by Wholesaler: 18% of ₹ 2,400

= $\dfrac{18}{100} \times 2,400$

= ₹ 432.

This ₹ 432 IGST paid by the Ratlam dealer becomes their Input Tax Credit (ITC).

Transaction 2: Dealer (Ratlam, MP) to End-user (Delhi)

This is also an interstate sale. Therefore, IGST will be levied.

Selling Price (from Ratlam Dealer to End-user): ₹ 3,000

IGST charged by Ratlam Dealer (Output Tax): 18% of ₹ 3,000

= $\dfrac{18}{100} \times 3,000$

= ₹ 540

(i) The Ratlam dealer has an output IGST liability from the sale to the end-user and has an IGST input tax credit from the initial purchase.

Output GST for the Ratlam dealer :

Output IGST = ₹ 540

Input Tax Credit (ITC) available for the Ratlam dealer:

Input IGST ITC = ₹ 432

Net GST Payable by Ratlam Dealer:

Net IGST payable = Output IGST - Input IGST ITC

= ₹ 540 - ₹ 432

= ₹ 108.

Net CGST payable = ₹ 0 (No CGST involved in these interstate transactions for the dealer's output or input in this chain).

Net SGST payable = ₹ 0 (No SGST involved in these interstate transactions for the dealer's output or input in this chain).

Hence, net IGST payable = ₹ 108, net CGST payable = ₹ 0 and net SGST payable = ₹ 0.

(ii) Price of the clock for End-user (before GST): ₹ 3,000

GST Paid by End-user (IGST) : 18% of ₹ 3,000

= $\dfrac{18}{100} \times 3,000$

= ₹ 540

Total Cost for the End-user = Price of clock + IGST paid

= ₹ 3,000 + ₹ 540

= ₹ 3,540.

Hence, total Cost for the End-user = ₹ 3,540.

A registered dealer purchased garments worth ₹ 2,50,000 from a manufacturer in the same state. The value of his supplies in interstate transactions was ₹ 30,000. He sold the remaining stock for ₹ 2,60,000 within the state. Find the net IGST, CGST and SGST payable by him, if the GST rate is 12%.

Answer

Given,

GST Rate = 12%

For interstate transactions: IGST = 12%

For intrastate transactions: CGST = 6%, SGST = 6%

Input Tax Credit (ITC) from Purchases:

The dealer purchased garments from a manufacturer in the same state. This means the dealer paid CGST and SGST on this purchase.

Value of purchase within the state: ₹ 2,50,000

CGST paid on purchase (Input CGST): 6% of ₹ 2,50,000

= $\dfrac{6}{100} \times 2,50,000$

=₹ 15,000.

SGST paid on purchase (Input SGST): 6% of ₹ 2,50,000

= $\dfrac{6}{100} \times 2,50,000$

= ₹ 15,000

So, the dealer has an Input Tax Credit (ITC) of ₹ 15,000 (CGST) and ₹ 15,000 (SGST).

Output Tax from Supplies (Sales):

The dealer has two types of outward supplies (sales):

Interstate Transactions (Sales):

Value of interstate supplies: ₹ 30,000

IGST charged on interstate supplies (Output IGST): 12% of ₹ 30,000

= $\dfrac{12}{100} \times 30,000$

= ₹ 3,600.

Intrastate Transactions (Sales):

The dealer sold the remaining stock for ₹ 2,60,000 within the state. This is an intrastate transaction.

Value of intrastate supplies: ₹ 2,60,000

CGST charged on intrastate supplies (Output CGST): 6% of ₹ 2,60,000

= $\dfrac{6}{100} \times 2,60,000$

= ₹ 15,600

SGST charged on intrastate supplies (Output SGST): 6% of ₹ 2,60,000

= $\dfrac{6}{100} \times 2,60,000$

= ₹ 15,600

The order of ITC utilization is :

CGST ITC is used first against CGST liability, then against IGST liability.

SGST ITC is used first against SGST liability, then against IGST liability.

IGST ITC (if any) is used first against IGST liability, then CGST, then SGST.

Available ITC:

Input CGST ITC = ₹ 15,000

Input SGST ITC = ₹ 15,000

Output Tax Liabilities:

Output IGST = ₹ 3,600

Output CGST = ₹ 15,600

Output SGST = ₹ 15,600

ITC utilization :

1. Against Output CGST:

Output CGST liability = ₹ 15,600

Input CGST ITC available = ₹ 15,000

Use Input CGST ITC = ₹ 15,000

Net CGST payable (before adjustment for IGST if needed) = ₹ 15,600 - ₹ 15,000 = ₹ 600

Remaining Input CGST ITC = ₹ 0

2. Against Output SGST:

Output SGST liability = ₹ 15,600

Input SGST ITC available = ₹ 15,000

Use Input SGST ITC = ₹ 15,000

Net SGST payable (before adjustment for IGST if needed) = ₹ 15,600 - ₹ 15,000 = ₹ 600

Remaining Input SGST ITC = ₹ 0

3. Against Output IGST:

Output IGST liability = ₹ 3,600

Remaining Input CGST ITC = ₹ 0

Remaining Input SGST ITC = ₹ 0

Since there are no IGST, CGST, or SGST input credits remaining after setting off the respective CGST and SGST liabilities, the entire Output IGST needs to be paid in cash.

Net IGST payable = ₹ 3,600

Hence, Net IGST payable = ₹ 3,600, Net CGST payable = ₹ 600, Net SGST payable = ₹ 600.

A furniture dealer in Delhi supplied goods worth ₹ 4,50,000 to a dealer in Chennai and sold goods worth ₹ 6,00,000 in retail with in Delhi. The total value of his receipts was ₹ 8,00,000. If he purchases his entire stock from a manufacturer in Delhi, then find the net IGST, CGST and SGST payable by him. The rate of GST is 12%.

Answer

Input Tax Credit (ITC) from Purchases :

The dealer purchases his entire stock from a manufacturer in Delhi. This is an intrastate transaction.

Total value of receipts (purchases) within Delhi : ₹ 8,00,000

CGST paid on purchases (Input CGST): 6% of ₹ 8,00,000

= $\dfrac{6}{100} \times 8,00,000$

= ₹ 48,000.

SGST paid on purchases (Input SGST): 6% of ₹ 8,00,000

= $\dfrac{6}{100} \times 8,00,000$

= ₹ 48,000.

So, the dealer has an Input Tax Credit (ITC) of ₹ 48,000 (CGST) and ₹ 48,000 (SGST).

Output Tax from Supplies (Sales):

The dealer has two types of outward supplies (sales):

Interstate Transactions (Sales):

The dealer supplied goods worth ₹ 4,50,000 to a dealer in Chennai. This is an interstate transaction (Delhi to Chennai).

Value of interstate supplies: ₹ 4,50,000

IGST charged on interstate supplies (Output IGST): 12% of ₹ 4,50,000

= $\dfrac{12}{100} \times 4,50,000$

= ₹ 54,000

Intrastate Transactions (Sales):

The dealer sold goods worth ₹ 6,00,000 in retail within Delhi. This is an intrastate transaction.

Value of intrastate supplies: ₹ 6,00,000

CGST charged on intrastate supplies (Output CGST): 6% of ₹ 6,00,000

= $\dfrac{6}{100} \times 6,00,000$

= ₹ 36,000.

SGST charged on intrastate supplies (Output SGST): 6% of ₹ 6,00,000

= $\dfrac{6}{100} \times 6,00,000$

= ₹ 36,000

Calculating Net GST Payable (Utilizing ITC):

The order of ITC utilization is critical:

IGST ITC (if any) is used first against IGST liability, then CGST, then SGST.

CGST ITC is used first against CGST liability, then against IGST liability.

SGST ITC is used first against SGST liability, then against IGST liability.

Available ITC:

Input CGST ITC = ₹ 48,000

Input SGST ITC = ₹ 48,000

Output Tax Liabilities:

Output IGST = ₹ 54,000

Output CGST = ₹ 36,000

Output SGST = ₹ 36,000

ITC utilization:

1. Utilize CGST ITC against Output CGST:

Output CGST liability = ₹ 36,000

Input CGST ITC available = ₹ 48,000

Use Input CGST ITC = ₹ 36,000

Net CGST payable (at this stage) = ₹ 36,000 - ₹ 36,000 = ₹ 0

Remaining Input CGST ITC = ₹ 48,000 - ₹ 36,000 = ₹ 12,000

2. Utilize SGST ITC against Output SGST:

Output SGST liability = ₹ 36,000

Input SGST ITC available = ₹ 48,000

Use Input SGST ITC = ₹ 36,000

Net SGST payable (at this stage) = ₹ 36,000 - ₹ 36,000 = ₹ 0

Remaining Input SGST ITC = ₹ 48,000 - ₹ 36,000 = ₹ 12,000

3. Utilize remaining CGST and SGST ITC against Output IGST:

Output IGST liability = ₹ 54,000

Remaining Input CGST ITC = ₹ 12,000 (can be used against IGST)

Remaining Input SGST ITC = ₹ 12,000 (can be used against IGST)

Total ITC available for IGST = Remaining CGST ITC + Remaining SGST ITC

Total ITC for IGST = ₹ 12,000 + ₹ 12,000 = ₹ 24,000

Net IGST payable = Output IGST liability - Total ITC available for IGST

Net IGST payable = ₹ 54,000 - ₹ 24,000 = ₹ 30,000

Hence, net IGST payable : ₹54,000, net CGST payable : ₹0, and net SGST payable: ₹0.

A dealer supplied goods/services worth ₹ 20,000 in interstate transactions and worth another ₹ 3,000 in transactions within the state. The total value of his receipts of goods/services within the state was ₹ 18,000. Find the net IGST, CGST and SGST payable by the dealer, if the rate of GST is 18%.

Answer

Input Tax Credit (ITC) from Receipts (Purchases):

The dealer's receipts (purchases) were within the state. This means the dealer paid CGST and SGST on these purchases.

Value of receipts (purchases) within the state: ₹ 18,000

CGST paid on receipts (Input CGST): 9% of ₹ 18,000

= 0.09×18,000

=₹ 1,620

SGST paid on receipts (Input SGST): 9% of ₹ 18,000

= $\dfrac{9}{100} \times 18,000$

= ₹ 1,620.

So, the dealer has an Input Tax Credit (ITC) of ₹ 1,620 (CGST) and ₹ 1,620 (SGST).

Output Tax from Supplies (Sales):

The dealer has two types of outward supplies (sales):

Interstate Transactions (Sales):

Value of interstate supplies: ₹ 20,000

IGST charged on interstate supplies (Output IGST): 18% of ₹ 20,000

= $\dfrac{18}{100} \times 20,000$

= ₹ 3,600.

Intrastate Transactions (Sales):

Value of intrastate supplies: ₹ 3,000

CGST charged on intrastate supplies (Output CGST): 9% of ₹ 3,000

= $\dfrac{9}{100} \times 3,000$

= ₹ 270.

SGST charged on intrastate supplies (Output SGST): 9% of ₹ 3,000

= $\dfrac{9}{100} \times 3,000$

= ₹ 270.

Calculating Net GST Payable (Utilizing ITC):

We will utilize the available CGST and SGST ITC against the output tax liabilities. The order of ITC utilization is crucial:

CGST ITC is used first against CGST liability, then against IGST liability.

SGST ITC is used first against SGST liability, then against IGST liability.

IGST ITC (if any) is used first against IGST liability, then CGST, then SGST.

Available ITC:

Input CGST ITC = ₹ 1,620

Input SGST ITC = ₹ 1,620

Output Tax Liabilities:

Output IGST = ₹ 3,600

Output CGST = ₹ 270

Output SGST = ₹ 270

ITC utilization:

1. Utilize CGST ITC against Output CGST:

Output CGST liability = ₹ 270

Input CGST ITC available = ₹ 1,620

Use Input CGST ITC to cover Output CGST = ₹ 270

Net CGST payable = ₹ 270 - ₹ 270 = ₹ 0

Remaining Input CGST ITC = ₹ 1,620 - ₹ 270 = ₹ 1,350

2. Utilize SGST ITC against Output SGST:

Output SGST liability = ₹ 270

Input SGST ITC available = ₹ 1,620

Use Input SGST ITC to cover Output SGST = ₹ 270

Net SGST payable = ₹ 270 - ₹ 270 = ₹ 0

Remaining Input SGST ITC = ₹ 1,620 - ₹ 270 = ₹ 1,350

3. Utilize remaining CGST and SGST ITC against Output IGST:

Output IGST liability = ₹ 3,600

Remaining Input CGST ITC = ₹ 1,350 (can be used against IGST)

Remaining Input SGST ITC = ₹ 1,350 (can be used against IGST)

Total ITC available for IGST = Remaining CGST ITC + Remaining SGST ITC

Total ITC for IGST = ₹ 1,350 + ₹ 1,350 = ₹ 2,700

Net IGST payable = Output IGST liability - Total ITC available for IGST

Net IGST payable = ₹ 3,600 - ₹ 2,700 = ₹ 900.

Hence, net Payable IGST = ₹900, net Payable CGST = ₹0, net Payable SGST = ₹ 0.

A dealer supplied electrical items worth ₹ 17,00,000 in interstate transactions and worth another ₹ 3,00,000 in transactions within the state. The total value of his receipts of goods in interstate transactions was ₹ 15,00,000. If the rate of GST is 18%, calculate the net IGST, CGST and SGST payable by the dealer.

Answer

Given,

GST Rate = 18%

For interstate transactions (IGST) = 18%

For intrastate transactions (CGST + SGST) = 18%, meaning CGST = 9% and SGST = 9%.

Input Tax Credit (ITC) from Receipts (Purchases):

The dealer's receipts (purchases) were in interstate transactions. This means the dealer paid IGST on these purchases.

Value of receipts (purchases) in interstate transactions : ₹ 15,00,000

IGST paid on receipts (Input IGST): 18% of ₹ 15,00,000

= $\dfrac{18}{100} \times 15,00,000$

= ₹ 2,70,000.

So, the dealer has an Input Tax Credit (ITC) of ₹ 2,70,000 (IGST).

Output Tax from Supplies (Sales):

The dealer has two types of outward supplies (sales):

Interstate Transactions (Sales):

Value of interstate supplies: ₹ 17,00,000

IGST charged on interstate supplies (Output IGST): 18% of ₹ 17,00,000

= $\dfrac{18}{100} \times 17,00,000$

= ₹ 3,06,000

Intrastate Transactions (Sales) :

Value of intrastate supplies : ₹ 3,00,000

CGST charged on intrastate supplies (Output CGST): 9% of ₹ 3,00,000

= $\dfrac{9}{100} \times 3,00,000$

= ₹ 27,000.

SGST charged on intrastate supplies (Output SGST): 9% of ₹ 3,00,000

= $\dfrac{9}{100} \times 3,00,000$

= ₹ 27,000.

Calculating Net GST Payable (Utilizing ITC):

We will utilize the available IGST ITC against the output tax liabilities. The order of utilization for IGST ITC is:

First against IGST liability, Then against CGST liability, Finally, against SGST liability.

Available ITC:

IGST ITC = ₹ 2,70,000

Output Tax Liabilities:

Output IGST = ₹ 3,06,000

Output CGST = ₹ 27,000

Output SGST = ₹ 27,000

ITC utilization :

Against Output IGST :

Output IGST liability = ₹ 3,06,000

IGST ITC available = ₹ 2,70,000

Use all available IGST ITC (₹ 2,70,000) against Output IGST.

Net IGST payable = ₹ 3,06,000 - ₹ 2,70,000 = ₹ 36,000

Remaining IGST ITC = ₹ 0 (all utilized)

Against Output CGST :

Output CGST liability = ₹ 27,000

Remaining IGST ITC = ₹ 0

Net CGST payable = ₹ 27,000 (since no IGST ITC is left to offset it, and there's no CGST ITC from purchases mentioned)

Against Output SGST :

Output SGST liability = ₹ 27,000

Remaining IGST ITC = ₹ 0

Net SGST payable = ₹ 27,000 (since no IGST ITC is left to offset it, and there's no SGST ITC from purchases mentioned)

Hence, Net IGST payable = ₹ 36,000, Net CGST payable = ₹ 27,000, Net SGST payable = ₹ 27,000.

A dealer supplied automobile spare parts worth ₹ 7,00,000 in interstate transactions and worth another ₹ 5,00,000 in transactions within the state. The total value of his receipts of spare parts in interstate transactions was ₹ 11,00,000. Find the net IGST, CGST and CGST payable by him, if the rate of GST is 28%.

Answer

For interstate transactions : IGST = 28%

For intrastate transactions : CGST = 14%, SGST = 14%

Input Tax Credit (ITC) from Receipts:

The dealer's receipts were in interstate transactions. This means the dealer paid IGST on these purchases.

Value of receipts in interstate transactions : ₹ 11,00,000

IGST paid on receipts (Input IGST): 28% of ₹ 11,00,000

= $\dfrac{28}{100} \times 11,00,000$

= ₹ 3,08,000.

So, the dealer has an Input Tax Credit (ITC) of ₹ 3,08,000 (IGST).

Output Tax from Supplies (Sales):

The dealer has two types of outward supplies:

(a) Interstate Transactions (Sales):

Value of interstate supplies: ₹ 7,00,000

IGST charged on interstate supplies (Output IGST): 28% of ₹ 7,00,000

= $\dfrac{28}{100} \times 7,00,000$

= ₹ 1,96,000.

(b) Intrastate Transactions (Sales):

Value of intrastate supplies: ₹ 5,00,000

CGST charged on intrastate supplies (Output CGST): 14% of ₹ 5,00,000

= $\dfrac{14}{100} \times 5,00,000$

= ₹ 70,000.

SGST charged on intrastate supplies (Output SGST): 14% of ₹ 5,00,000

= $\dfrac{14}{100} \times 5,00,000$

= ₹ 70,000.

Available ITC:

IGST ITC = ₹ 3,08,000

IGST credit is used in the following order:

First against IGST liability, Then against CGST, Then against SGST.

Output Tax Liabilities:

Output IGST = ₹ 1,96,000

Output CGST = ₹ 70,000

Output SGST = ₹ 70,000

Against Output IGST:

Output IGST = ₹ 1,96,000

Use IGST ITC = ₹ 1,96,000

Net IGST payable = ₹ 1,96,000 - ₹ 1,96,000 = ₹ 0

Remaining IGST ITC = ₹ 3,08,000 - ₹ 1,96,000 = ₹ 1,12,000

Against Output CGST:

Output CGST = ₹ 70,000

Use remaining IGST ITC = ₹ 70,000 (since IGST ITC can be used for CGST)

Net CGST payable = ₹ 70,000 - ₹ 70,000 = ₹ 0

Remaining IGST ITC = ₹ 1,12,000 - ₹ 70,000 = ₹ 42,000

Against Output SGST:

Output SGST = ₹ 70,000

Use remaining IGST ITC = ₹ 42,000 (since IGST ITC can be used for SGST)

Net SGST payable = ₹ 70,000 - ₹ 42,000 = ₹ 28,000

Remaining IGST ITC = ₹ 0

Hence, Net IGST payable = ₹ 0, Net CGST payable = ₹ 0, Net SGST payable = ₹ 28,000.

A manufacturing company in Faridabad (Haryana) marks a machine at ₹ 2,40,000. It sells a machine to a dealer in Delhi at a discount of 25% on the marked price. The dealer sells it to a consumer in Kerala at a discount of 10% on the marked price. If the rate of GST is 12%, calculate the net IGST, CGST and SGST payable by the dealer.

Answer

Given:

Marked price = ₹ 2,40,000

Manufacturer (Haryana) sells to dealer in Delhi. This is an interstate transaction, thus IGST is levied.

Discount offered by manufacturer = 25% of M.P.

= 25% of ₹ 2,40,000

= $\dfrac{25}{100} \times 2,40,000$

= ₹ 60,000.

S.P. for maufacturer to Dealer = Marked Price - Discount = ₹ 2,40,000 - ₹ 60,000 = ₹ 1,80,000

IGST charged by Manufacturer (Input Tax for Dealer): 12% of ₹ 1,80,000

= $\dfrac{12}{100}\times 1,80,000$

= ₹ 21,600

This ₹ 21,600 IGST becomes the Input Tax Credit (ITC) for the dealer in Delhi.

Transaction 2: Dealer (Delhi) to Consumer (Kerala)

This is also an interstate sale (Delhi to Kerala). Therefore, IGST will be levied.

Marked Price: ₹ 2,40,000

Discount offered by Dealer : 10% of Marked Price

= 10% of ₹ 2,40,000

= $\dfrac{10}{100} \times 2,40,000$

= ₹ 24,000

Selling Price from Dealer to Consumer (Taxable Value): Marked Price - Discount

= ₹ 2,40,000 - ₹ 24,000

= ₹ 2,16,000.

IGST charged by Dealer (Output Tax) : 12% of ₹ 2,16,000

= $\dfrac{12}{100} \times 2,16,000$

= ₹ 25,920

Output GST for the Dealer:

Output IGST = ₹ 25,920

Output CGST = ₹ 0 (since it's an interstate sale)

Output SGST = ₹ 0 (since it's an interstate sale)

Input Tax Credit (ITC) for the Dealer:

Input IGST ITC = ₹ 21,600

Input CGST ITC = ₹ 0 (from the previous interstate purchase)

Input SGST ITC = ₹ 0 (from the previous interstate purchase)

Net GST Payable by the Dealer:

Since both the output tax and the available input tax credit are IGST.

Net IGST Payable = Output IGST - Input IGST ITC

= ₹ 25,920 - ₹ 21,600

= ₹ 4,320

Net CGST Payable = ₹ 0

Net SGST Payable = ₹ 0.

Hence, IGST payable by dealer: ₹ 4,320, CGST = ₹ 0, and SGST = ₹ 0.