Question

Anna Patil (Thane, Maharashtra) supplied vacuum cleaner to a shopkeeper in Vasai (Mumbai) for the taxable value of Rs 14,000, and GST rate of 28%. Shopkeeper sold it to the customer at the same GST rate for Rs16,800 (taxable value) Find the following – 

Amount of CGST and SGST charged by the shopkeeper in Vasai. 

Answer 1

Rate of GST is 28%

Input tax credit of shopkeeper in Vasai = 28% of Rs 14,000 =  \[\frac{28}{100} \times 14000\]  = Rs 3,920 

Output tax of shopkeeper in Vasai = 28% of Rs 16,800 = \[\frac{28}{100} \times 16800\]  = Rs 4,704

∴ CGST in tax invoice of shopkeeper in Vasai = SGST in tax invoice of shopkeeper in Vasai = \[\frac{\text{ Output tax of shopkeeper in Vasai }}{2} = \frac{4704}{2}\]  = Rs 2,352 

Thus, the amount of CGST and SGST charged by the shopkeeper in Vasai is Rs 2,352.