wiz-icon
MyQuestionIcon
MyQuestionIcon
13
You visited us 13 times! Enjoying our articles? Unlock Full Access!
Question

Smt. Malhotra purchased solar panels for the taxable value of Rs 85,000. She sold them for Rs 90,000. The rate of GST is 5%. Find the ITC of Smt. Malhotra. What is the amount of GST payable by her ?

Open in App
Solution


Taxable purchase value of the solar panels = Rs 85,000

Rate of GST = 5%

∴ Input tax credit (ITC) = 5% of Rs 85,000 = 5100×85000 = Rs 4,250

Selling price of the solar panels = Rs 90,000

∴ Output tax = 5% of Rs 90,000 = 5100×90000 = Rs 4,500

Amount of GST payable = Output tax − Input tax (ITC) = Rs 4,500 − Rs 4,250 = Rs 250

Thus, the amount of ITC is Rs 4,250 and the amount of GST payable by Smt. Malhotra is Rs 250.

flag
Suggest Corrections
thumbs-up
46
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Sources of Finance II
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon