Advertisements
Advertisements
Question
The invoice value of a toy is 4,220 and rate of GST is 5%.
Statement (1): GST paid = 5% of ₹ 4,220
Statement (2): The taxable value of the toy = `100/105 xx ₹ 4,220`
Options
Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.
MCQ
Assertion and Reasoning
Advertisements
Solution
Statement 1 is false, and statement 2 is true.
Explanation:
The invoice value of ₹ 4,220 includes GST, so GST is not calculated directly as 5% of ₹ 4,220.
Taxable value = `100/105 xx ₹ 4,220`
= ₹ 4,019.05
GST = ₹ 4,220 − ₹ 4,019.05
= ₹ 200.95
shaalaa.com
Is there an error in this question or solution?
