Question

Goods/services are sold from Agra(UP) to Kanpur(UP) for Rs.20000 and then from Kanpur to Pune. If the rate of GST is 18% and the profit made at Kanpur is Rs.5000;
find:-
the net GST payable by the dealer at Kanpur.
​

Answer 1

Given:–

• Rate of GST = 18%
• Profit at Kanpur = Rs.5000
• Goods sold = Rs.20000

To find:–

• $\text{Net GST}$

Formulas used:–

• $\boxed{\text{Net GST = Output tax - Input tax}}$

Step by step explaination:-

★ Here, in the question Agra and Kanpur are in the same state which is UP , so it is an case of Intra-state transaction whereas, after that goods are sold from Kanpur to Jaipur which is in Rajasthan, so it is an case of inter-state transaction.

★ In general , the tax which is collected from public intra-state transaction of goods is shared equally between the central government and the state government

★ Solving~

As the tax is divided equally so SGST will be as follows:-

⟹ SGST = 9% of 20000

⟹ SGST = 9/100 × 20000

Reducing to their lowest terms.

⟹ SGST = 9×200

⟹ SGST = 1800

As the tax is divided equally so CGST will be as follows:-

⟹ CGST = 9% of 20000

⟹ CGST = 9/100 × 20000

Reducing to their lowest terms

⟹ CGST = 9×200

⟹ CGST = 1800

Input total = 1800 + 1800

Input total = 3600

★ CP of Kanpur = 20000

Profit = 5000

S.P. of Kanpur = 2000+5000 = 25000

Output tax of Kanpur:-

• 18% of 25000
• 18/100 × 25000
• 4500

★ At last calculating Net GST:-

⟹ 4500 - 3600

⟹ Rs.900

Conclusion:–

Net GST payable by the dealer is Rs.900

Answer 2

Step-by-step explanation:

Given:–

Rate of GST = 18%

Profit at Kanpur = Rs.5000

Goods sold = Rs.20000

To find:–

\text{Net GST}Net GST

Formulas used:–

\boxed{\text{Net GST = Output tax - Input tax}}

Net GST = Output tax - Input tax

Step by step explaination:-

★ Here, in the question Agra and Kanpur are in the same state which is UP , so it is an case of Intra-state transaction whereas, after that goods are sold from Kanpur to Jaipur which is in Rajasthan, so it is an case of inter-state transaction.

★ In general , the tax which is collected from public intra-state transaction of goods is shared equally between the central government and the state government

★ Solving~

As the tax is divided equally so SGST will be as follows:-

⟹ SGST = 9% of 20000

⟹ SGST = 9/100 × 20000

Reducing to their lowest terms.

⟹ SGST = 9×200

⟹ SGST = 1800

As the tax is divided equally so CGST will be as follows:-

⟹ CGST = 9% of 20000

⟹ CGST = 9/100 × 20000

Reducing to their lowest terms

⟹ CGST = 9×200

⟹ CGST = 1800

Input total = 1800 + 1800

Input total = 3600

★ CP of Kanpur = 20000

Profit = 5000

S.P. of Kanpur = 2000+5000 = 25000

Output tax of Kanpur:-

18% of 25000

18/100 × 25000

4500

★ At last calculating Net GST:-

⟹ 4500 - 3600

⟹ Rs.900

Conclusion:–

Net GST payable by the dealer is Rs.900