Question

A dealer supplied automobile spare parts worth ₹ 700000 in interstate transactions and worth another ₹ 500000 in transactions within the state. The total value of his receipts of spare parts in interstate transactions was ₹ 1100000. Find the net IGST, CGST and CGST payable by him, if the rate of GST is 28%.

Answer 1

Given:

Interstate supplies (output) = ₹ 7,00,000

Intra‑state supplies (output) = ₹ 5,00,000

Interstate receipts (purchases/input) = ₹ 11,00,000

GST rate = 28% (so for intra‑state tax splits equally into CGST 14% + SGST 14%; for inter‑state IGST = 28%).

Step‑wise calculation:

1. Compute output taxes:

Output IGST on interstate sales

= 28% of ₹ 7,00,000 

= 0.28 × 7,00,000

= ₹ 1,96,000

Output CGST on intra‑state sales

= 14% of ₹ 5,00,000

= 0.14 × 5,00,000

= ₹ 70,000

Output SGST on intra‑state sales

= 14% of ₹ 5,00,000

= ₹ 70,000

2. Compute input tax credit from interstate receipts:

Input IGST on purchases

= 28% of ₹ 11,00,000 

= 0.28 × 11,00,000

= ₹ 3,08,000   ...(Inter‑state purchases are charged IGST which becomes input credit for the dealer)

3. Netting/Utilisation of input credit:

Use input IGST credit first against output IGST:

Remaining IGST credit

= 3,08,000 – 1,96,000 

= ₹ 1,12,000

Per utilisation order, remaining IGST credit can be used against CGST first, then SGST:

Use ₹ 70,000 to clear CGST

CGST net payable

= ₹ 70,000 – 70,000 

= ₹ 0

Remaining credit

= 1,12,000 – 70,000 

= ₹ 42,000

Use remaining ₹ 42,000 against SGST

SGST net payable

= ₹ 70,000 – 42,000 

= ₹ 28,000

After these adjustments IGST outstanding = ₹ 0   ...(Net liability = Output – Input where applicable)