Question

A trader from Surat, Gujarat sold cotton clothes to a trader in Rajkot, Gujarat. The taxable value of cotton clothes is Rs 2.5 lacs. What is the amount of GST at 5% paid by the trader in Rajkot ?

Answer 1

Taxable value of cotton clothes = Rs 2.5 lacs = Rs 2,50,000

Rate of GST = 5%

∴ Amount of GST paid by the trader = 5% of Rs 2,50,000 =  \[\frac{5}{100} \times 250000\]  = Rs 12,500

Thus, the amount of GST paid by the trader is Rs 12,500.