Question

A wholesaler purchased electric goods for the taxable amount of Rs. 1,50,000. He sold it to the retailer for the taxable amount of Rs.1,80,000. Retailer sold it to the customer for the taxable amount of Rs.2,20,000. Rate of GST is 18%. Show the computation of GST in tax invoices of sales. Also find the payable CGST and payable SGST for wholesaler and retailer.

Answer 1

For Wholesaler: 

Output tax = 18% of Rs.1,80,000

                                  =  \(\frac{5400}{2}\) 

                                  = Rs. 2700

For Retailer : 

Statement of GST payable at each stage of trading :

Individual	GST payable	CGST payable	SGST payable
Wholesaler	Rs.5,400	Rs.2,700	Rs.2,700
Retailer	Rs.7,200	Rs.3,600	Rs.3,600
Total	Rs.12,600	Rs.6,300	Rs.6,300