Question

1 Lot Amar, Ram and Rahim be three dealers belonging
to different states. Dealer Amar sells some
products/services to dealer Ram for Rs 1000 and
dealer Ram sells the same products/ services to
dealer Rahim at a profit of Rs 300. Calculate the tax
liability of Ram, if the rate of GST is 12%.
​

Answer 1

Given : Amar, Ram and Rahim be three dealers belonging  different states.

Dealer Amar sells some  products services to dealer Ram for Rs 1000

dealer Ram sells the same products/services to  dealer Rahim at a profit of Rs 300.

To Find :  tax  liability of Ram,

Solution:

Different State

so GST will IGST

Dealer Amar sells some  products services to dealer Ram for Rs 1000

IGST Charged = (12/100)1000 = Rs 120

Ram sells the same products/services to  dealer Rahim at a profit of Rs 300.

Selling Price = 1000 + 300 = Rs 1300

IGST Charged = (12/100)1300 = Rs 156

tax  liability of Ram = IGST Collected - ITC

ITC = Input Tax credit = Rs 120

IGST Collected by Ram = Rs  156

tax  liability of Ram = 156 - 120  = Rs  36

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