The tax collected at the time of sale is called output tax.
`:. Square` tax in this example is Rupees 2,50,000.
The tax paid at the time of purchase is called input tax.
`:.` input tax in this example is Rupees `square `
`:. ITC = ` Rupees 1,80,000
GST payable by Dinesh Chemicals = Output tax-ITC
`= `Rupees `square - `Rupees 1,80,000 = Rupees ` square`
Activity `:` The tax collected at the time of sale is called output tax.
`:.` Output tax in this example is Rupees 2,50,000
The tax paid at the time of purchase is called input tax.
`:. `input tax in this example is Rupees 1,80,000.
`:. ` ITC = Rupees 1,80,000
GST payable by Dinesh Chemicals = Output tax -ITC
= Rupees - Rupees 1,80,000 = Rupees 70,000