A hardware company located at Ashok Vihar, Delhi supplies some hardware items worth 75,000 to a shop in Patna, Bihar. Which of the three forms (CGST, SGST or IGST) of GST will be applicable for the company? Also, calculate the amount of GST, whichever is applicable, if the rate of GST is 18%.
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Answer:
Amount of GST = 13,500.
Applicable GST = IGST.
Step-by-step explanation:
Since the supplying of hardware is happening across different states, there will be no SGST. The 18% GST will be taken as IGST, which will go fully to the Central Government. There is no CGST or SGST. IGST is levied on goods that are sold outside the state they are made in.
GST % × Cost of the Item = Amount of GST.
Percentage is expressed as the number divided by 100.
0.18 x 75,000 = 13,500.
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