Question

Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for Rs. 20,000 and then from Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is Rs. 5000, find:

(i) the net GST payable by the dealer at Kanpur.

(ii) the cost of goods/services at Jaipur.

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Answer 1

1. 200

2. 300

hope you understand

Answer 2

Answer:

• (I) Rs. 900
• (II) Rs. 29,500

Step-by-step explanation:

From the question, when the product is sold from Agra to Kanpur (intra-state transaction)

For the dealer in Agra:

➡ S. P. in Agra = Rs. 20,000

➡ CGST = 9% of Rs. 20,000 = 9/ 100 x 20,000 = 1800

➡ SGST = 9% of Rs. 20,000 = 9/100 x 20,000 = 1800

Now, when the product is sold from Kanpur to Jaipur (inter-state transaction)

For the dealer in Kanpur

➡ Input-tax credit = 1800 + 1800 = Rs. 3600

➡ C. P. = Rs. 20,000 and Profit = Rs. 5000

➡ So, the S.P. = 20,000 + 5000 = Rs. 25,000

➡ IGST = 18% of 25,000 = Rs. 4500

Therefore,

(i) Net GST paid by the dealer at Kanpur

➡ Output GST – Input GST

➡ 4500 – 3600

➡ Rs. 900

(ii) The cost of goods/services at Jaipur

➡ S. P. in Agra + IGST

➡ 25,000 + 18% of 25000

➡ 25,000 + 4500

➡ Rs. 29,500