A registered dealer purchased garments worth ₹ 2,50,000 from a manufacturer in the same state. The value of his supplies in interstate transactions was ₹ 30,000. He sold the remaining stock for ₹ 2,60,000 within the state. Find the net IGST, CGST and SGST payable by him, if the GST rate is 12%.

Given,

GST Rate = 12%

For interstate transactions: IGST = 12%

For intrastate transactions: CGST = 6%, SGST = 6%

Input Tax Credit (ITC) from Purchases:

The dealer purchased garments from a manufacturer in the same state. This means the dealer paid CGST and SGST on this purchase.

Value of purchase within the state: ₹ 2,50,000

CGST paid on purchase (Input CGST): 6% of ₹ 2,50,000

= $\dfrac{6}{100} \times 2,50,000$

=₹ 15,000.

SGST paid on purchase (Input SGST): 6% of ₹ 2,50,000

= $\dfrac{6}{100} \times 2,50,000$

= ₹ 15,000

So, the dealer has an Input Tax Credit (ITC) of ₹ 15,000 (CGST) and ₹ 15,000 (SGST).

Output Tax from Supplies (Sales):

The dealer has two types of outward supplies (sales):

Interstate Transactions (Sales):

Value of interstate supplies: ₹ 30,000

IGST charged on interstate supplies (Output IGST): 12% of ₹ 30,000

= $\dfrac{12}{100} \times 30,000$

= ₹ 3,600.

Intrastate Transactions (Sales):

The dealer sold the remaining stock for ₹ 2,60,000 within the state. This is an intrastate transaction.

Value of intrastate supplies: ₹ 2,60,000

CGST charged on intrastate supplies (Output CGST): 6% of ₹ 2,60,000

= $\dfrac{6}{100} \times 2,60,000$

= ₹ 15,600

SGST charged on intrastate supplies (Output SGST): 6% of ₹ 2,60,000

= $\dfrac{6}{100} \times 2,60,000$

= ₹ 15,600

The order of ITC utilization is :

CGST ITC is used first against CGST liability, then against IGST liability.

SGST ITC is used first against SGST liability, then against IGST liability.

IGST ITC (if any) is used first against IGST liability, then CGST, then SGST.

Available ITC:

Input CGST ITC = ₹ 15,000

Input SGST ITC = ₹ 15,000

Output Tax Liabilities:

Output IGST = ₹ 3,600

Output CGST = ₹ 15,600

Output SGST = ₹ 15,600

ITC utilization :

1. Against Output CGST:

Output CGST liability = ₹ 15,600

Input CGST ITC available = ₹ 15,000

Use Input CGST ITC = ₹ 15,000

Net CGST payable (before adjustment for IGST if needed) = ₹ 15,600 - ₹ 15,000 = ₹ 600

Remaining Input CGST ITC = ₹ 0

2. Against Output SGST:

Output SGST liability = ₹ 15,600

Input SGST ITC available = ₹ 15,000

Use Input SGST ITC = ₹ 15,000

Net SGST payable (before adjustment for IGST if needed) = ₹ 15,600 - ₹ 15,000 = ₹ 600

Remaining Input SGST ITC = ₹ 0

3. Against Output IGST:

Output IGST liability = ₹ 3,600

Remaining Input CGST ITC = ₹ 0

Remaining Input SGST ITC = ₹ 0

Since there are no IGST, CGST, or SGST input credits remaining after setting off the respective CGST and SGST liabilities, the entire Output IGST needs to be paid in cash.

Net IGST payable = ₹ 3,600

Hence, Net IGST payable = ₹ 3,600, Net CGST payable = ₹ 600, Net SGST payable = ₹ 600.