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Goods and Services Tax

Mr. Rahul is ...

Question

Mr. Rahul is a retailer. He paid GST of ₹5500 at the time of purchase. He collected GST of ₹7500 at the time of sale.
(i) Find his input tax and output tax.
(ii) What is his Input tax credit?

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Solution

(i) Input tax (tax paid at the time of purchase) = ₹5500 and Output tax (tax collected at the time of sale) = ₹7500
(ii) Now ITC = ₹5500

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[2 Marks]

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= GST collected on selling (Input Tax Credit) – GST paid on purchasing

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Goods and Services Tax

Standard IX Economics

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