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.
GST
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Question

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.

GST

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KnowledgeBoat · Accepted 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 = = ₹ 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 = = ₹ 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 = = ₹ 27,000. SGST charged on intrastate supplies (Output SGST): 9% of ₹ 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.

Mathematics

GST

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