Question

A wholesaler purchased electric goods for the taxable amount of Rs 1,50,000. He sold it to the retailer for the taxable amount of Rs 1,80,000. Retailer sold it to the customer for the taxable amount of Rs 2,20,000. Rate of GST is 18%. Show the computation of GST in tax invoices of sales. Also find the payable CGST and payable SGST for wholesaler and retailer.

Answer 1

Rate of GST is 18%.

(1)
Input tax credit of wholesaler = 18% of Rs 1,50,000 = $\frac{18}{100}\times 150000$ = Rs 27,000

Output tax of wholesaler = 18% of Rs 1,80,000 = $\frac{18}{100}\times 180000$ = Rs 32,400

GST in tax invoice of wholesaler:

CGST in tax invoice of wholesaler = SGST in tax invoice of wholesaler = $\frac{\mathrm{Output}\mathrm{tax}\mathrm{of}\mathrm{wholesaler}}{2}=\frac{32400}{2}$ = Rs 16,200



Input tax credit of retailer = 18% of Rs 1,80,000 = $\frac{18}{100}\times 180000$ = Rs 32,400

Output tax of retailer = 18% of Rs 2,20,000 = $\frac{18}{100}\times 220000$ = Rs 39,600

​GST in tax invoice of retailer:

CGST in tax invoice of retailer = SGST in tax invoice of retailer = $\frac{\mathrm{Output}\mathrm{tax}\mathrm{of}\mathrm{retailer}}{2}=\frac{39600}{2}$ = Rs 19,800

(2)
GST payable by wholesaler = Output tax of wholesaler − Input tax credit of wholesaler = Rs 32,400 − Rs 27,000 = Rs 5,400

CGST payable by wholesaler = SGST payable by wholesaler = $\frac{\mathrm{GST}\mathrm{payable}\mathrm{by}\mathrm{wholesaler}}{2}=\frac{5400}{2}$ = Rs 2,700


GST payable by retailer = Output tax of retailer − Input tax credit of retailer = Rs 39,600 − Rs 32,400 = Rs 7,200

CGST payable by retailer = SGST payable by retailer = $\frac{\mathrm{GST}\mathrm{payable}\mathrm{by}\mathrm{retailer}}{2}=\frac{7200}{2}$ = Rs 3,600