Question

Nazama is a proprietor of a firm, registered under GST. She has paid GST of Rs 12,500 on purchase and collected Rs 14,750 on sale. What is the amount of ITC to be claimed ? What is the amount of GST payable ?

Answer 1

Tax collected at the time of purchase = Rs 12,500

∴ Amount of ITC to be claimed by Nazama = Rs 12,500

Tax collected at the time of sale = Rs 14,750

∴ GST payable = Tax collected at the time of sale − Tax collected at the time of purchase = Rs 14,750 − Rs 12,500 = Rs 2,250

Thus, the amount of GST payable by Nazama is Rs 2,250.