Question

Mr. Rohit is a retailer. He paid GST of ₹6,500 at the time of purchase. He collected GST of ₹8,000 at the time of sale.

1.  Find his input tax and output tax.
2. What is his input tax credit?
3. Find his payable GST.
4. Hence find the payable CGST anti payable SGST.

Answer 1

(a) Input tax (Tax paid at the time of purchase) = ₹6500

Output tax (Tax collected at the time of sale) = ₹8000

(b) Input tax (Tax collected at the time of purchase) = ₹6500

∴ Input Tax Credit (ITC) = ₹6500

(c) GST payable = Output tax − ITC

= ₹(8000 − 6500)

= ₹1500

(d) Payable CGST = payable SGST

= `1/2 xx "GST"`

= `1/2 xx 1500`

= ₹750