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Question
A registered dealer M/s Aniket and Sons Ltd. purchased goods for ₹ 2400000 and sold them for ₹ 2750000, within the state. If the GST rate is 18%, find the net CGST and SGST payable by the dealer.
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Solution
Given:
Purchase price (inclusive/exclusive of GST not specified; assume purchases were taxable and dealer can claim input tax credit): ₹ 24,00,000
Sale price (taxable value): ₹ 27,50,000
GST rate: 18% (intra‑state → CGST + SGST, split equally)
Step-wise calculation:
1. Output GST on sale:
Total GST = 18% of ₹ 27,50,000
= 0.18 × 27,50,000
= ₹ 4,95,000
Split equally → Output CGST = Output SGST
= ₹ `(495000)/2`
= ₹ 2,47,500 each
2. Input GST on purchase (credit available):
Total GST on purchases = 18% of ₹ 24,00,000
= 0.18 × 24,00,000
= ₹ 4,32,000
Split equally → Input CGST = Input SGST
= ₹ `(432000)/2`
= ₹ 2,16,000 each
3. Net tax payable (dealer is registered so can set off input tax against output tax):
Net CGST = Output CGST – Input CGST
= ₹ 2,47,500 – ₹ 2,16,000
= ₹ 31,500
Net SGST = Output SGST – Input SGST
= ₹ 2,47,500 – ₹ 2,16,000
= ₹ 31,500
Total net GST payable = Net CGST + Net SGST
= ₹ 31,500 + ₹ 31,500
= ₹ 63,000
Notes
Net tax = Output GST – Input GST and for intra‑state supplies GST is split equally between CGST and SGST.
