Question

A company provided Z-security services for the taxable value of Rs 64,500. Rate of GST is 18%. Company had paid GST of Rs 1550 for laundry services and uniforms etc. What is the amount of ITC (input Tax Credit) ? Find the amount of CGST and SGST payable by the company.

Answer 1

Input tax credit = GST paid by the company for laundry services and uniforms etc = Rs 1,550

Taxable value for the services paid by the company = Rs 64,500

Rate of GST = 18%

∴ Output tax = 18% of Rs 64,500 = $\frac{18}{100}\times 64500$ = Rs 11,610

GST payable = Output tax − Input credit tax = Rs 11,610 − Rs 1,550 = Rs 10,060

∴ CGST payable = SGST payable = $\frac{\mathrm{GST}\mathrm{payable}}{2}=\frac{10060}{2}$ = Rs 5,030

Thus, the amount of CGST payable by the company is Rs 5,030 and the SGST payable by the company is Rs 5,030.