Mathematics

Mr. Batra, a registered dealer in Hisar (Haryana) purchased blankets worth ₹ 2,00,000. He sold 50% of these blankets to a dealer in Panipat (Haryana) for ₹ 1,30,000 and the rest of the goods remain in his stock. If the GST rate is 5%, find the excess credit of CGST and SGST to be carried forward.

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Given :

Purchase value of blankets for Mr. Batra = ₹ 2,00,000

GST rate = 5%

As the transaction is intra-state so CGST and SGST are applicable

CGST rate = SGST rate = $\dfrac{5\%}{2}$ = 2.5%

50% goods sold for ₹ 1,30,000. The rest (50%) remain in stock.

On purchase of ₹ 2,00,000.

Input CGST = 2.5% of ₹ 2,00,000

$= \dfrac{2.5}{100} \times 2,00,000$

= ₹ 5,000

Input SGST = 2.5% of ₹ 2,00,000

$= \dfrac{2.5}{100} \times 2,00,000$

= ₹ 5,000

GST on Sales (Output Tax)

Sales value = ₹ 1,30,000

Output CGST = 2.5% of ₹ 1,30,000

$= \dfrac{2.5}{100} \times 1,30,000$

= ₹ 3,250.

Output SGST = 2.5% of ₹ 1,30,000

$= \dfrac{2.5}{100} \times 1,30,000$

= ₹ 3,250

Excess CGST = Input CGST - Output CGST

= ₹ 5,000 - ₹ 3,250

= ₹ 1,750.

Excess SGST = Input SGST - Output SGST

= ₹ 5,000 - ₹ 3,250

= ₹ 1,750.

Hence, Excess credit to be carried forward: CGST= ₹ 1,750, SGST= ₹ 1,750.

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