Goods worth ₹40000 are transferred from Kolkata to Chennai at a GST rate of 12% and then from Chennai to Ahmedabad (with profit of ₹10000) at the same rate of GST. Find the Net Tax liability of the dealer at Chennai.
A
₹980
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B
₹2400
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C
₹1800
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D
₹1200
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Solution
The correct option is D ₹1200 Since the transaction is from Kolkata to Chennai and then Ahmedabad,it is a case of Inter-state transactions, the GST charged will be IGST.
Net Tax liability of the dealer at Chennai = IGST on Output (in Ahmedabad) - IGST on Input (ITC) = 12% of ₹50000 - 12% of ₹40000 = 12% of ₹10000 =12100×10000 =₹1200.