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Question

Look at the following transactions :
A provided goods to B priced at ₹5000. B sold these to C marking it at ₹ 6500.If the rate of GST charged at each stage is 18%, find the GST paid by B to the Central government, assuming all these transactions are Intra-state.

A
₹270
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B
₹90
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C
₹150
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D
₹135
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Solution

The correct option is D ₹135
Here the sale from A to B at ₹5000 and from B to C at ₹6500 indicates that B made a profit of ₹1500.
Net GST to be paid by B = 18% of ₹1500 = 18100×1500 = ₹270. This includes both SGST and CGST.
Hence CGST paid = 182 = 9% of ₹1500 = 9100×1500 or 2702 = ₹135.

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