A manufacturing company in Faridabad (Haryana) marks a machine at ₹ 2,40,000. It sells a machine to a dealer in Delhi at a discount of 25% on the marked price. The dealer sells it to a consumer in Kerala at a discount of 10% on the marked price. If the rate of GST is 12%, calculate the net IGST, CGST and SGST payable by the dealer.

Given:

Marked price = ₹ 2,40,000

Manufacturer (Haryana) sells to dealer in Delhi. This is an interstate transaction, thus IGST is levied.

Discount offered by manufacturer = 25% of M.P.

= 25% of ₹ 2,40,000

= $\dfrac{25}{100} \times 2,40,000$

= ₹ 60,000.

S.P. for maufacturer to Dealer = Marked Price - Discount = ₹ 2,40,000 - ₹ 60,000 = ₹ 1,80,000

IGST charged by Manufacturer (Input Tax for Dealer): 12% of ₹ 1,80,000

= $\dfrac{12}{100}\times 1,80,000$

= ₹ 21,600

This ₹ 21,600 IGST becomes the Input Tax Credit (ITC) for the dealer in Delhi.

Transaction 2: Dealer (Delhi) to Consumer (Kerala)

This is also an interstate sale (Delhi to Kerala). Therefore, IGST will be levied.

Marked Price: ₹ 2,40,000

Discount offered by Dealer : 10% of Marked Price

= 10% of ₹ 2,40,000

= $\dfrac{10}{100} \times 2,40,000$

= ₹ 24,000

Selling Price from Dealer to Consumer (Taxable Value): Marked Price - Discount

= ₹ 2,40,000 - ₹ 24,000

= ₹ 2,16,000.

IGST charged by Dealer (Output Tax) : 12% of ₹ 2,16,000

= $\dfrac{12}{100} \times 2,16,000$

= ₹ 25,920

Output GST for the Dealer:

Output IGST = ₹ 25,920

Output CGST = ₹ 0 (since it's an interstate sale)

Output SGST = ₹ 0 (since it's an interstate sale)

Input Tax Credit (ITC) for the Dealer:

Input IGST ITC = ₹ 21,600

Input CGST ITC = ₹ 0 (from the previous interstate purchase)

Input SGST ITC = ₹ 0 (from the previous interstate purchase)

Net GST Payable by the Dealer:

Since both the output tax and the available input tax credit are IGST.

Net IGST Payable = Output IGST - Input IGST ITC

= ₹ 25,920 - ₹ 21,600

= ₹ 4,320

Net CGST Payable = ₹ 0

Net SGST Payable = ₹ 0.

Hence, IGST payable by dealer: ₹ 4,320, CGST = ₹ 0, and SGST = ₹ 0.