Question

A trading company paid 18% GST on its product worth ₹ 15,000 and sold it to a customer for ₹ 21,000. What are the amounts of CGST and SGST shown in the tax invoice issued?

Answer 1

Input tax = 18% of ₹ 15,000

= `18/100 xx 15,000`

= ₹ 2,700

Output tax = 18% of ₹ 21,000

= `18/100 xx 21,000`

= ₹ 3,780

GST payable = Output tax – Input tax

= 3,780 – 2,700

= ₹ 1,080

So CGST = SGST = `1/2` GST = `1/2` × 1080 = ₹ 540