Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for Rs. 20,000 and then from Kanpur to Jaipur (Rajasthan). If the rate of GST is $18\%$ and the profit made at Kanpur is Rs. 5000, find:
(i) the net GST payable by the dealer at Kanpur.
(ii) the cost of goods/services at Jaipur.

Answer 1

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> From the question, when the product is sold from Agra to Kanpur (intra-state transaction)
For the dealer in Agra:
S. P. in Agra $=$ Rs. 20,000
CGST $=9\%$ of Rs. $20,000=9/100\times 20,000=1800$
$SGST=9\%$ of Rs. $20,000=9/100\times 20,000=1800$
Now, when the product is sold from Kanpur to Jaipur (inter-state transaction)
For the dealer in Kanpur
Input-tax credit $=1800+1800=$ Rs. 3600
C. P. $=$ Rs. 20,000 and Profit $=$ Rs. 5000
So, the S.P. $=20,000+5000=$ Rs. 25,000
IGST $=18\%$ of $25,000=$ Rs. 4500
Therefore,
(i) $\begin{array}{cc}& \text{Net GST paid by the dealer at Kanpur}\\ & =\text{Output GST - Input GST}\\ & =4500-3600\\ & =\text{Rs.}900\\ \text{(ii)}& \text{The cost of goods/services at Jaipur}\\ & =S.\text{P. in Agra}+\text{IGST}\\ & =25,000+18\%\text{of}25000\\ & =25,000+4500\\ & =\text{Rs.}29,500\end{array}$