Question

Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for Rs 24,500, and sold them to the local customers for Rs 26,500. Find the GST to be paid at the rate of 5% and hence the CGST and UTGST to be paid for this transaction. (for Union Territories there is UTGST instead of SGST.)

Answer 1

Input tax (tax paid at the time of purchase) = 5% of  Rs 24,500 =  \[\frac{5}{100} \times 24500\]  = Rs 1,225

Output tax (tax paid at the time of sale) = 5% of Rs 26,500 =  \[\frac{5}{100} \times 26500\]  = Rs 1,325

∴ GST payable = Output tax − Input tax = Rs 1,325 − Rs 1,225 = Rs 100
Thus, the GST payable by Malik Gas Agency is Rs 100.
CGST payable = UTGST payable =  \[\frac{100}{2}\]  = Rs 50 

Thus, the CGST payable by Malik Gas Agency is Rs 50 and ​the UTGST payable by Malik Gas Agency is Rs 50.