Question

A dealer X in Hapur (U.P.) supplies goods/services, worth Rs. 50,000 to some other dealer Y in the same city. Now the dealer Y supplies the same goods/services to dealer Z in Calcutta at a profit of Rs. 20,000. Find:

1. Output and input taxes for the dealer Y.
2. Net GST payable by dealer Y.
   [The rate of GST at each stage is 28%].

Answer 1

For the dealer X (intra-state transaction),

S.P. = Rs. 50,000

For the dealer Y (intra-state transaction),

C.P. = Rs. 50,000

CGST = 14% of 50,000 = Rs. 7,000

SGST = 14% of 50,000 = Rs. 7,000

Input tax for dealer Y = Rs. 14,000

Profit = Rs. 20,000

S.P. = Rs. 70,000

For the dealer Z (inter-state transaction),

C.P. = Rs. 70,000

IGST = 28 % of Rs. 70,000

= `28/100 xx 70,000`

= Rs. 19,600

i. Output tax for dealer Y = Rs. 19,600

Input tax for dealer Y = Rs. 14,000

ii. Net GST payable by dealer Y

= Output tax for Y - Input tax for Y

= 19,600 - 14,000

= Rs. 5,600