Question

‘Chitra furnishings’ purchased tapestry (curtain cloth) for Rs. 2800000 and sold for Rs.4480000 Rate of GST is 5%.

Find,

i) Input Tax

ii) Output Tax

iii) ITC

iv) CGST and SGST

Answer 1

Given, that ‘Chitra furnishings’ purchased tapestry (curtain cloth) for ₹ 28,00,000 and the rate of GST is 5%

∴ Input tax = 5% of 28,00,000

= `5/100 xx 28,00,000`

= ₹ 1,40,000

The tapestry was sold at ₹ 44,80,000

∴ Output tax = 5% of 44,80,000

= `5/100 xx 44,80,000`

= ₹ 2,24,000

Now ITC = Input tax = ₹ 1,40,000

GST payable = Output tax – ITC

= 2,24,000 – 1,40,000

= ₹ 84,000

∴ CGST = SGST = `"GST Payable"/2`

= `(84,000)/2`

= ₹ 42,000

∴ CGST = SGST = ₹ 42,000