Question

Mr. Batra, a registered dealer in Hisar (Haryana) purchased blankets worth ₹ 200000. He sold 50% of these blankets to a dealer in Panipat (Haryana) for ₹ 130000 and the rest of the goods remain in his stock. If the GST rate is 5%, find the excess credit of CGST and SGST to be carried forward.

Answer 1

Given:

Purchase (exclusive of tax) = ₹ 200,000.

Sale of 50% of goods (intra‑state) = ₹ 130,000.

GST rate = 5% → CGST 2.5% + SGST 2.5%.

Step-wise calculation:

1. Input tax on purchase (5% of ₹ 200,000)

Total input GST = ₹ 10,000.

Input CGST = ₹ 5,000; input SGST = ₹ 5,000   ...(Intra‑state GST splits equally into CGST and SGST)

2. Output tax on the sale (5% of ₹ 130,000)

Total output GST = ₹ 6,500.

Output CGST = ₹ 3,250; output SGST = ₹ 3,250.

3. Set‑off of input credit against output tax

Under GST, the dealer uses available input CGST to set off output CGST and input SGST to set off output SGST, so each component is reduced by the corresponding component of output tax. The net tax payable is Output – Input (tax on value addition).

CGST: input ₹ 5,000 – output ₹ 3,250

= Balance input CGST carried forward ₹ 1,750.

SGST: input ₹5,000 – output ₹3,250

= Balance input SGST carried forward ₹ 1,750.