A product is sold from Surat(Gujrat) to Ahmedabad(Gujrat) for ₹5000 and then from Ahmedabad to Jaipur(Rajasthan) at a profit of ₹1000. If the rate of GST is 12% , find the net GST payable at Ahmedabad.
[3 Marks]

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Solution

When the product is sold from Surat to Ahmedabad (It is an intra-state transaction).
For the Dealer in Surat, SP = ₹5000
CGST = SGST = 6% of ₹5000 = ₹300 [1 Mark]

When the product is sold from Ahmedabad to Jaipur(It is an Inter-state transaction).

For the Dealer in Ahmedabad :
Input Tax Credit(ITC) = ₹300 + ₹300 = ₹600
CP = ₹5000.
Profit = ₹1000.
SP = CP + Profit = ₹5000 + ₹1000 = ₹6000 [1 Mark]

IGST = 12% of ₹6000 = $\frac{12}{100} \times 6000$ = ₹720

$∴$ Net GST payable at Ahmedabad = Output Tax - ITC
= ₹720 - ₹600 = ₹120. [1 Mark]

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A product is sold from Surat(Gujrat) to Ahmedabad(Gujrat) for ₹5000 and then from Ahmedabad to Jaipur(Rajasthan) at a profit of ₹1000. If the rate of GST is 12% , find the net GST payable at Ahmedabad. [3 Marks]

A product is sold from Surat(Gujrat) to Ahmedabad(Gujrat) for ₹5000 and then from Ahmedabad to Jaipur(Rajasthan) at a profit of ₹1000. If the rate of GST is 12% , find the net GST payable at Ahmedabad.
[3 Marks]