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.
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