Question

‘Tiptop Electronics’ supplied an AC of 1.5 ton to a company. Cost of the AC supplied is Rs 51,200 (with GST). Rate of CGST on AC is 14%. Then find the following amounts as shown in the tax invoice of Tiptop Electronics.

(1) Rate of SGST	(2) Rate of GST on AC
(3) Taxable value of AC	(4) Total amount of GST
(5) Amount of CGST	(6) Amount of SGST

Answer 1

(1) Rate of SGST on AC = Rate of CGST on AC = 14%

(2) Rate of GST on AC = Rate of CGST on AC + Rate of SGST on AC = 14% + 14% = 28%

(3) Let the taxable value of AC be Rs x.

Taxable value of AC + Amount of GST = Rs 51,200

$$\begin{gathered} \therefore x+\frac{28}{100}\times x=51200 \\ \Rightarrow \frac{128}{100}x=51200 \\ \Rightarrow x=\frac{100}{128}\times 51200=40000 \end{gathered}$$
So, the taxable value of AC is Rs 40,000.

(4) Total amount of GST = Cost of the AC with GST − Taxable value of AC = Rs 51,200 − Rs 40,000 = Rs 11,200

(5) Amount of CGST = $\frac{1}{2}$ × Total amount of GST = $\frac{1}{2}\times 11200$ = Rs 5,600

(6) Amount of SGST = $\frac{1}{2}$ × Total amount of GST = $\frac{1}{2}\times 11200$ = Rs 5,600