Question

Mr. Kumar a registered dealer purchased goods worth ₹ 40000 from a dealer (within the same state). If the rate of GST is 18%,

1. Calculate the Input CGST and the Input SGST.
2. If he sold these goods to Mr. Dev (within the state) for ₹ 50000, calculate Mr. Kumar’s output CGST and output SGST. 
3. Calculate the CGST and SGST payable by Mr. Kumar.

Answer 1

Given: Mr. Kumar a registered dealer purchased goods for ₹ 40,000 (intra‑state). GST rate = 18%. He later sold the goods (intra‑state) for ₹ 50,000.

Step-wise calculation:

1. Input tax on purchase ₹ 40,000 at 18%:

Total GST = 18% of 40,000

= 0.18 × 40,000

= ₹ 7,200

For intra‑state supplies GST is split equally into CGST and SGST, so Input CGST = Input SGST = 7,200 ÷ 2 = ₹ 3,600.

2. Output tax on sale ₹ 50,000 at 18%:

Total GST = 18% of 50,000

= 0.18 × 50,000

= ₹ 9,000

Output CGST = Output SGST

= 9,000 ÷ 2

= ₹ 4,500   ...(Intra‑state split)

3. Tax payable after input tax credit separately for CGST and SGST:

CGST payable = Output CGST – Input CGST 

= 4,500 – 3,600

= ₹ 900

SGST payable = Output SGST – Input SGST 

= 4,500 – 3,600

= ₹ 900