Question

Smt. Malhotra purchased solar panels for the taxable value of Rs. 85,000. She sold them for Rs. 90,000. The rate of GST is 5%. Find the ITC of Smt. Malhotra. What 5 100 is the amount of GST payable by her?

Answer 1

Output tax = 5% of 90000 

= (5/100) × 90000 

= Rs.4500 Input tax = 5% of 85000 

= (5/100) × 85000 

= Rs. 4250 

ITC = Rs.4250. 

∴ GST payable = Output tax – ITC 

= 4500 – 4250 

GST payable = Rs.250 

∴ ITC of Smt. Malhotra is Rs.4250 and amount of GST payable by her is Rs.250.