Question

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

Answer 1

Rate of GST is 28%.

(1)
Output tax of Anna Patil = 28% of Rs 14,000 = $\frac{28}{100}\times 14000$ = Rs 3,920

∴ CGST in tax invoice of Anna Patil = SGST in tax invoice of Anna Patil = $\frac{\mathrm{Output}\mathrm{tax}\mathrm{of}\mathrm{Anna}\mathrm{Patil}}{2}=\frac{3920}{2}$ = Rs 1,960

Thus, the amount of CGST and SGST shown in the tax invoice issued by Anna Patil is Rs 1,960.

(2)
Input tax credit of shopkeeper in Vasai = 28% of Rs 14,000 = $\frac{28}{100}\times 14000$ = Rs 3,920

Output tax of shopkeeper in Vasai = 28% of Rs 16,800 = $\frac{28}{100}\times 16800$ = Rs 4,704

∴ CGST in tax invoice of shopkeeper in Vasai = SGST in tax invoice of shopkeeper in Vasai = $\frac{\mathrm{Output}\mathrm{tax}\mathrm{of}\mathrm{shopkeeper}\mathrm{in}\mathrm{Vasai}}{2}=\frac{4704}{2}$ = Rs 2,352

Thus, the amount of CGST and SGST charged by the shopkeeper in Vasai is Rs 2,352.

(3)
GST payable by shopkeeper in Vasai = Output tax of shopkeeper in Vasai − Input tax credit of shopkeeper in Vasai = Rs 4,704 − Rs 3,920 = Rs 784

∴ CGST payable by shopkeeper in Vasai = SGST payable by shopkeeper in Vasai = $\frac{\mathrm{GST}\mathrm{payable}\mathrm{by}\mathrm{shopkeeper}\mathrm{in}\mathrm{Vasai}}{2}=\frac{784}{2}$ = Rs 392

Thus, the CGST and SGST payable by shopkeeper in Vasai at the time of filing the return is Rs 392.