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Question

Goods worth ₹40000 are transferred from Kolkata to Chennai at a GST rate of 18% 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
₹3600
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B
₹900
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C
₹1800
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D
₹2400
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Solution

The correct option is D ₹1800
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 received (Input Tax Credit) - IGST paid on purchase

= 18% of ₹50000 - (18% of ₹40000)

= 18% of ₹10000

= 18100×10000

= ₹1800

Mathematics

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