Question

For the given trading chain prepare the tax invoice I, II, III, GST at the rate of 12% was charged for the article supplied.

Prepare the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government.

Answer 1

GST in Tax Invoice of Wholesaler:
Taxable value of article = ₹ 5,000
Rate of GST = 12%
GST payable = 12% of ₹ 5,000 =  \[\frac{12}{100} \times 5000\]  = ₹ 600

CGST payable = SGST payable =  \[\frac{\text{ GST payable} }{2} = \frac{600}{2}\]  = ₹ 300

GST in Tax Invoice of Distributor:
Taxable value of article = ₹ 6,000
Rate of GST = 12%
GST payable = Output tax − Input credit tax = 12% of ₹ 6,000 − 12% of ₹ 5,000 =  \[\frac{12}{100} \times \left( 6000 - 5000 \right) = \frac{12}{100} \times 1000\]  = ₹ 120

CGST payable = SGST payable =  \[\frac{\text{ GST payable} }{2} = \frac{120}{2}\]  = ₹ 60

GST in Tax Invoice of Retailer:

Taxable value of article = ₹ 6,500
Rate of GST = 12%
GST payable = Output tax − Input credit tax = 12% of ₹ 6,500 − 12% of ₹ 6,000 =  \[\frac{12}{100} \times \left( 6500 - 6000 \right) = \frac{12}{100} \times 500\]  = ₹ 60

CGST payable = SGST payable =  \[\frac{\text{ GST payable} }{2} = \frac{60}{2}\]  = ₹ 30

The following table shows the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government:

	CGST payable	SGST payable	GST payable
Wholesaler	₹ 300	₹ 300	₹ 600
Distributor	₹ 60	₹ 60	₹ 120
Retailer	₹ 30	₹ 30	₹ 60
Total tax	₹ 390	₹ 390	₹ 780