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.

Answer 1

Rate of GST \(=18\%\)

\(\therefore \text{Input Tax} =18\% ~\text{of}~35000\\=\frac{18}{100}\times35000\)
\( = ₹6300\)

\(\Rightarrow\) 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 ₹\(900\).