A shoe manufacturer purchases goods worth 90,000
from the markets within the state. He sells his product
in the neighbourhood market for *78,000. If the
common rate of GST is @ 18%, find the GST payable/
GST credit for the above transaction.
Answers
Answered by
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input GST = 18 % on raw materials = 18%
of 90000 = 90000x 18/100 16200
output GST =18% on final product (shoes)
18% of 78000 = 78000 x18/100 =14040
here,
input GST is more than out put GST
THUS, GST credit = input GST - output
GST 16200-14040 =Rs.21600
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