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Question

Look at the following transactions :
A provided goods to B priced at ₹50000. B sold these to C marking it at ₹65000. If the rate of GST charged at each stage is 12%, find the GST paid by B to the Central government, assuming all these transactions are Intra-state.

A
₹1800
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B
₹900
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C
₹1200
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D
₹600
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Solution

The correct option is B ₹900
Here the sale from A to B at ₹50000 and from B to C at ₹65000 indicates that B made a profit of ₹15000.

Net GST to be paid by B

= 12% of ₹15000

= 12100×15000

= ₹1800

This includes both SGST and CGST.

Hence CGST paid

= 122% of ₹15000

= 6% of ₹15000

= 6100×15000

= ₹900

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