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%.

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.