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Question
A wholeseller buys pens having taxable value ₹ 12,000 and sold it to the retailer for the taxable value ₹ 14,000. Rate of GST is 20%. Find the CGST and SGST payable by wholeseller.
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Solution
Wholeseller taxable value = ₹ 12,000
∴ Input tax = `20/100 xx 12,000` = ₹ 2,400
Retailer taxable value= ₹ 14,000
∴ Output tax = `20/100 xx 14,000` = ₹ 2,800
GST payable = Output tax – Input tax
= ₹ (2,800 – 2,400)
= ₹ 400
Hence, CGST payable by wholeseller = ₹ 200 and SGST payable by wholeseller = ₹ 200.
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