Question

Anna Patil (Thane, Maharashtra) supplied vacuum cleaner to a shopkeeper in Vasai (Mumbai) for the taxable value of $₹14,000$, and GST rate of $28\%$. Shopkeeper sold it to the customer at the same GST rate for $₹16,800$ (taxable value). Find the following:
i. Amount of CGST and SGST shown in the tax invoice issued by Anna Patil.
ii. Amount of CGST and SGST charged by the shopkeeper in Vasai.
iii. What is the CGST and SGST payable by shopkeeper in Vasai at the time of filing the return.

Answer 1

i. For Anna Patil:
Output tax $=28\%$ of 14,000
$$\begin{array}{cc}& =\frac{18}{100}\times 14000\\ & =₹3920\\ & \therefore \text{CGST}=\text{SGST}=\frac{GST}{2}\\ & =\frac{3920}{2}\\ & =₹1960\end{array}$$
$\therefore$ Amount of CGST and SGST shown in the tax invoice issued by Anna Patil is ₹ 1960 each.
ii. For Shopkeeper in Vasai:
Output tax $=28\%$ of 16,800
$$\begin{array}{cc}& =\frac{28}{100}\times 16,800\\ & =₹4704\\ & \therefore \text{CGST}=\text{SGST}=\frac{GST}{2}\\ & =\frac{4704}{2}\\ & =₹2352\end{array}$$
$\therefore$ Amount of CGST and SGST charged by the shopkeeper in Vasai is $₹2352$ each.
iii. ITC = ₹ 3920
GST payable by shopkeeper in Vasai
= Output tax - ITC
$=4704-3920$
$=₹784$
$$\begin{array}{cc}\therefore \text{CGST}=\text{SGST}& =\frac{\text{GST payable}}{2}\\ & =\frac{784}{2}\\ & =₹392\end{array}$$
$\therefore$ CGST and SGST payable by shopkeeper in Vasai at the time of filing the return is ₹ 392 each.