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%.
GST
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Question

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%.

GST

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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 = = ₹ 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 = = ₹ 3,600. Intrastate Transactions (Sales): Value of intrastate supplies: ₹ 3,000 CGST charged on intrastate supplies (Output CGST): 9% of ₹ 3,000 = = ₹ 270. SGST charged on intrastate supplies (Output SGST): 9% of ₹ 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.

Mathematics

GST

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