Question

A registered dealer purchased garments worth ₹ 250000 from a manufacturer in the same state. The value of his supplies in interstate transactions was ₹ 30000. He sold the remaining stock for ₹ 260000 within the state. Find the net IGST, CGST and SGST payable by him, if the GST rate is 12%.

Answer 1

Given:

Purchase (intra‑state) from manufacturer = ₹ 2,50,000

Value of interstate supplies = ₹ 30,000

Value of intra‑state sale (remaining stock) = ₹ 2,60,000

GST rate = 12% (i.e. CGST 6% + SGST 6% on intra‑state; IGST 12% on inter‑state).

Step-wise calculation:

1. Input tax on purchase (intra‑state, so CGST + SGST):

Input CGST = 6% of 2,50,000

= 0.06 × 2,50,000

= ₹ 15,000

Input SGST = 6% of 2,50,000

= ₹ 15,000

2. Output tax on supplies:

Output IGST on interstate supplies

= 12% of 30,000 

= 0.12 × 30,000

= ₹ 3,600

Output CGST on intra‑state sale

= 6% of 2,60,000 

= 0.06 × 2,60,000

= ₹ 15,600

Output SGST on intra‑state sale

= 6% of 2,60,000 

= ₹ 15,600

3. Apply set‑off as per GST set‑off priority: IGST liability is first discharged by IGST credit, then CGST, then SGST; CGST/SGST liabilities can be adjusted similarly. Using the available input credits (no input IGST, only CGST and SGST):

Use CGST input to offset IGST output: reduce CGST input by ₹ 3,600

CGST input remaining = 15,000 – 3,600 

= ₹ 11,400

IGST payable ₹ 0.

CGST output 15,600 is then offset by remaining CGST input 11,400. 

CGST payable = 15,600 – 11,400 

= ₹ 4,200

SGST output 15,600 is offset by SGST input 15,000

⇒ SGST payable = 15,600 – 15,000

= ₹ 600