Question

c) A jeweller X in Lucknow sold three Y diamond necklaces having marked prices *5,00,000, 36,00,000and 10,00,000 to another jeweller Y in Lucknow. Jeweller X incurred shipping charges of 10,000 pernecklace and provided a Diwali discount of 1%. If the rate of GST is 28%, then find (i) IGST (ii) CGST(i) SGST​

Answer 1

i) IGST is 28%, ii) 14% is the CGST, and iii) 14% is the SGST

Given:

3 Y diamond necklaces of price:

5,00,000, 36,00,000 and 10,00,000

Shipping charge:

10,000 per necklace

Discount = 1%

GST = 28%

To find:

IGST, CGST, and SGST

Solution:

IGST numerically equals= CGST+SGST.

Therefore let us first find the CGST and SGST

CGST is the central goods and service tax, and is given by the formula:

$\frac{GST}{2} = \frac{28}{2}$

= 14%

Now to find the SGST

SGST is the state goods and service tax and is given by the formula:

=  $\frac{GST}{2} = \frac{28}{2}$

= 14%

= 14%

Both SGST and CGST will be half of GST.

Now to find IGST,

IGST is the Integrated goods and service tax, which is a tax levied on interstate purchases, it is given by the formula:

IGST = CGST +SGST

IGST = 14 + 14

IGST = 28%

Therefore IGST is 28%, CGST is 14% and SGST is 14%

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