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Mathematics

Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for ₹ 20,000 and then Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is ₹ 5,000, find :

The net GST payable by the dealer at Kanpur (GST received - GST paid).

GST

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Answer

When the goods are sold from Agra to Kanpur it is an intra-state transaction.

For dealer in Agra

S.P. = ₹ 20,000

CGST = 9% of ₹ 20,000 = ₹ 1800

SGST = CGST = ₹ 1800.

When the product is sold from Kanpur to Jaipur it is an intra-state transaction.

For dealer in Kanpur

Input-tax credit (ITC) = ₹ 1800 + ₹ 1800 = ₹ 3600.

C.P. (excluding GST) = ₹ 20000 + ₹ 5000 = ₹ 25000.

IGST = 18% of ₹ 25000 = ₹ 4500.

∴ Net GST payable at Kanpur = Output GST - Input-tax credit = ₹ 4500 - ₹ 3600 = ₹ 900.

Hence, the net GST payable at Kanpur is ₹ 900.

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