Question

Consultancy services, worth Rs. 50,000, are transferred from Delhi to Kolkata at the rate of GST 18% and then from Kolkata to Nainital (with profit = Rs. 20,000) at the same rate of GST. Find the output tax at:

1. Delhi
2. Kolkata
3. Nainital

Answer 1

i. Output tax in Delhi (inter-state):

IGST = `50,000 xx 18/100` = Rs. 9,000

Output tax in Delhi = Rs. 9000

ii. Output tax in Kolkata:

C.P. in Kolkata = Rs. 50,000 and Profit = Rs. 20,000

S.P. in Kolkata = 50,000 + 20,000 = Rs. 70,000

IGST = `70,000 xx 18/100` = Rs. 12,600

Output tax in Kolkata = Rs. 12,600

iii. For Nainital:

The dealer in Nainital does not sell the product.

Output GST (tax on sale) = Rs. 0