Question

For the given trading chain prepare the tax invoice I, II, III, GST at the rate of 12% was chanrged for the article supplied.

(1) Prepare the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government.
(2) At the end what amount is paid by the consumer ?
(3) Write which of the invoices issued are B2B and B2C ?

Answer 1

(1)
GST in Tax Invoice of Wholesaler:

Taxable value of article = ₹ 5,000

Rate of GST = 12%

GST payable = 12% of ₹ 5,000 = $\frac{12}{100}\times 5000$ = ₹ 600

CGST payable = SGST payable = $\frac{\mathrm{GST}\mathrm{payable}}{2}=\frac{600}{2}$ = ₹ 300

GST in Tax Invoice of Distributor:

Taxable value of article = ₹ 6,000

Rate of GST = 12%

GST payable = Output tax − Input credit tax = 12% of ₹ 6,000 − 12% of ₹ 5,000 = $\frac{12}{100}\times \left(6000-5000\right)=\frac{12}{100}\times 1000$ = ₹ 120

CGST payable = SGST payable = $\frac{\mathrm{GST}\mathrm{payable}}{2}=\frac{120}{2}$ = ₹ 60

GST in Tax Invoice of Retailer:

Taxable value of article = ₹ 6,500

Rate of GST = 12%

GST payable = Output tax − Input credit tax = 12% of ₹ 6,500 − 12% of ₹ 6,000 = $\frac{12}{100}\times \left(6500-6000\right)=\frac{12}{100}\times 500$ = ₹ 60

CGST payable = SGST payable = $\frac{\mathrm{GST}\mathrm{payable}}{2}=\frac{60}{2}$ = ₹ 30

The following table shows the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government:

	CGST payable	SGST payable	GST payable
Wholesaler	₹ 300	₹ 300	₹ 600
Distributor	₹ 60	₹ 60	₹ 120
Retailer	₹ 30	₹ 30	₹ 60
Total tax	₹ 390	₹ 390	₹ 780

(2)
Amount paid by the consumer for the article

= Taxable value of article to the retailer + GST payable by retailer

= ₹ 6,500 + ₹ 780

= ₹ 7,280

(3)
The invoice issued from wholesaler to distributor and the invoice issued from distributor to retailer are B2B invoices whereas the invoice issued from retailer to consumer is B2C invoice.