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.
GST
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Question

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.

GST

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KnowledgeBoat · Accepted Answer

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 = = ₹ 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 = = ₹ 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 = = ₹ 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 = = ₹ 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.

Mathematics

GST

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Mathematics

GST

Related Questions

The full form of GST is :Government Service TaxGoods and Services TaxGovernment Sales TaxNone of these

IGST is charged on :interstate transactionintrastate transactionboth (1) and (2)none of these

The full form of GST is :
Government Service Tax
Goods and Services Tax
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None of these

IGST is charged on :
interstate transaction
intrastate transaction
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