Question

Heena Enterprise sold cosmetics worth Rs. 25000 to Leena traders, a retailer. Leena Traders sold it further to Meena Beauty Products for Rs. 30000. Meena Beauty Product sold it further to the customers for Rs. 40000. The rate of GST is 18%

Find

i) GST Payable by each party

ii) CGST and SGST

Answer 1

The trading chain,

∴ Output tax for Heena Enterprises = 18% of 25,000

= `18/100 xx 25,000`

= ₹ 4,500

∴ GST payable by Heena Enterprises

Now output tax for Leena traders

= 18% of 30,000 = `18/100 xx 30,000 = ₹ 5,400`

∴ GST payable by Leena traders

= Output tax – Input tax

= 5,400 – 4,500

= ₹ 900

∴ Output tax for Meena beauty products

= 18% × 40,000

= `18/100 xx 40,000`

=  ₹ 7,200

∴ GST payable by Meena beauty products

= Output tax – Input tax

= 7,200 – 5,400

= ₹ 1,800

ii. Now, CGST = SGST = `"GST"/2 = 9%`

∴ Statement of GST payable at each stage can be tabulated as:

Party	GST payable	CGST payable	SGST payable
Heena Enterprises	₹ 4,500	₹ 2,250	₹ 2,250
Leena traders	₹ 900	₹ 450	₹ 450
Meena beauty products	₹ 1,800	₹ 900	₹ 900