Question

Nazama is a proprietor of film, regenerated under $GST$. She has paid $GST$ of $Rs12,500$ on purchase and collected $Rs14,750$ on sale what is amount of $ITC$ to claimed? What is amount of $GST$ payable?

Answer 1

Given that,

GST paid by Nazama on purchase = Input tax = $Rs12500$

GST collected by Nazama on sale = Output tax = $Rs14,750/-$

(i) We know that

Input tax credit is GST paid on

Purchase = input tax = $Rs12,500$

$\therefore$ Amount of ITC to be claimed = $Rs12,500/-$

(ii) Now, Amount of GST payable = out put tax - ITC

$=14,750-12,500$

$=Rs2250$

Then,

Amount of GST payable = $Rs2250/-$