Question

What is the GST payable by the wholesaler if the output tax is \( \text{₹}576 \) and the input tax is \( \text{₹}480 \)?

Options

• \[ \text{₹}480 \]

• \[ \text{₹}96 \]

• \[ \text{₹}576 \]

• \[ \text{₹}48 \]

Answer 1

\[ \text{GST payable by wholesaler} = \text{Output tax} - \text{Input tax} = 576 - 480 = \text{₹}96 \]. Only the GST on the value added (\( \text{₹}4800 - \text{₹}4000 = \text{₹}800 \), i.e. \( 12\% \) of \( \text{₹}800 \)) is paid to the government.