Question

A dealer in Jaipur supplies a TV worth ₹10,000 to a dealer in Udaipur. The dealer in Udaipur supplies the same TV to a dealer in Delhi at a profit of ₹6,000. Assuming that the dealer in Delhi is the end-user of the product and the rate of GST is 12%, find:

(iii) Net GST payable by the dealer in Udaipur

[1 mark]

• A. ₹600
• B. ₹1,360
• C. ₹720
• D. ₹1,920

Answer 1

The correct option is C ₹720

$\text{For the dealer in Udaipur,}$
$\text{Output GST}=₹1,920$
$\text{Input}GST=₹1,200\text{(input-tax credit)}$
$\therefore$ Net GST payable by the dealer in Udaipur = Output GST payable after adjusting input GST
$=₹1,920-₹1,200=₹720$