Question

Anna Patil (Thane, Maharashtra) supplied vacuum cleaner to a shopkeeper in Vasai (Mumbai) for the taxable value of Rs. 14,000, and GST rate of 28% . Shopkeeper sold it to the customer at the same GST rate for Rs.16,800 (taxable value). Find the following: 

i. Amount of CGST and SGST shown in the tax invoice issued by Anna Patil. 

ii. Amount of CGST and SGST charged by the shopkeeper in Vasai. 

iii. What is the CGST and SGST payable by shopkeeper in Vasai at the time of filing the return.

Answer 1

i. For Anna Patil: 

Output tax = 28% of 14,000 

= (18/100) × 14000 

= Rs. 3920

∴ CGST = SGST = GST/2

= 3920/2

= Rs.1960 

∴ Amount of CGST and SGST shown in the tax invoice issued by Anna Patil is Rs.1960 each. 

ii. For Shopkeeper in Vasai: 

Output tax = 28% of 16,800 

= (28/100)× 16,800 

= Rs.4704 

∴ CGST = SGST = GST/2

= 4704/2

= Rs.2352 

∴ Amount of CGST and SGST charged by the shopkeeper in Vasai is Rs.2352 each. 

iii. ITC = Rs.3920 

GST payable by shopkeeper in Vasai 

= Output tax – ITC

= 4704 – 3920 

= Rs. 784

∴ CGST = SGST = (GST payable)/2

= 784/2

= Rs. 392

∴ CGST and SGST payable by shopkeeper in Vasai at the time of filing the return is Rs. 392 each.