Question

For a trader X, GST paid is ₹ 600 and GST collected is ₹ 720. 

Assertion (A): GST paid by the trader to the Government is ₹ 120. 

Reason (R): GST deposited with the Government = Output Tax - Input tax = GST collected - GST paid

Options

• A is true, R is false.

• A is false, R is true.

• Both A and R are true and R is the correct reason for A.

• Both A and R are true and R is the incorrect reason for A.

Answer 1

Both A and R are true and R is the correct reason for A.

Explanation:

GST paid (Input Tax) = ₹600 and GST collected (Output Tax) = ₹720.

GST payable = ₹ 720 − ₹ 600 

= ₹120