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Mathematics

Consultancy services, worth ₹ 50000 are transferred from Delhi to Kolkata at the rate of GST 18% and then Kolkata to Nainital (with profit = ₹ 20000) at the same rate of GST. Find the output tax at

(i) Delhi

(ii) Kolkata

(iii) Nainital

GST

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Answer

(i) Delhi to Calcutta (Transaction is an inter state transaction)

IGST = 18% of ₹ 50000 = 18100×50000\dfrac{18}{100} \times 50000 = ₹ 9000.

Hence, the output tax in Delhi = ₹ 9000.

(ii) For Calcutta,

C.P. = ₹ 50000

Profit in sending to Nainital = ₹ 20000

S.P. = ₹ 50000 + ₹ 20000 = ₹ 70000.

Transaction is an inter state transaction

IGST = 18100×70000\dfrac{18}{100} \times 70000 = ₹ 12600

Hence, the output tax in Calcutta = ₹ 12600.

(iii) Since, the dealer in Nainital does transfer the services further

Hence, output tax = ₹ 0

Hence, the output tax in Nainital = ₹ 0.

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