Question

Reddy Gas Agency (Puducherry Union Territory) purchased some gas cylinders for industrial use for ₹44,445, and sold them to the local customers for ₹50,000. The GST is to be paid at the rate of 5%. The UTGST to be paid for this transaction is ₹_____. (for Union Territories there is UTGST instead of SGST.)

• A. 138.5
• B. 138.875
• C. 277
• D. 277.75

Answer 1

The correct option is B 138.875

Input tax (tax paid at the time of purchase)
= 5% of ₹44,445

= $\frac{5}{100}\times 44445$

= ₹2,222.25

Output tax (tax paid at the time of sale)
= 5% of ₹50,000

=$\frac{5}{100}\times 50000$

= ₹2,500

∴ GST payable
= Output tax − Input tax
= ₹2,500 − ₹2,222.25
= ₹277.75

Thus, the GST payable by Reddy Gas Agency is ₹277.75.

CGST payable = UTGST payable
=$\frac{277.75}{2}$= ₹138.875

Thus, the CGST payable by Reddy Gas Agency is ₹138.875 and ​the UTGST payable by Reddy Gas Agency is ₹138.875.