Question

'Surya Electronics' purchased an AC having taxable value of ₹$35000$ and sold it to a consumer for ₹$40000$ (taxable value). Rate of GST is $18\%$. Find the GST payable by Surya Electronics.

• A. ₹$900$
• B. ₹$1000$
• C. ₹$500$
• D. ₹$1500$

Answer 1

The correct option is A ₹$900$

Rate of GST $=18\%$

$\therefore \text{Input Tax}=18\%\text{of}35000=\frac{18}{100}\times 35000$
$=₹6300$

$\Rightarrow$ Input Tax Credit = ₹$6300$

Now,
$\text{Output Tax}=18\%\text{of}40000=\frac{18}{100}\times 40000$
$=₹7200$

$\therefore$ GST payable $=$ Output Tax - Input Tax Credit =7200 - 6300 = ₹$900$

Thus, GST payable by Surya Electronics is ₹$900$.