Goods/services are sold from Nashik to Mumbai for ₹ 20,000 and then from Mumbai to Pune. If the rate of GST is 12% and the profit made at Mumbai is ₹ 5000; find: i) the net GST payable by the dealer at Mumbai ii) the net GST paid at Pune, if the dealer at Pune is the end-user.
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Answer:
From the question, we have
For the dealer in Mumbai (inter-state transaction)
CP = Rs. 20,000
IGST = 12% of Rs. 20,000 = 12/100 x 20,000 = Rs. 2400
Given, Profit = Rs. 5000
SP = Rs. 25,000
Now, for the dealer in Pune (intra-state transaction)
CP = Rs. 25,000
CGST = 6% of 25,000 = Rs. 1500
SGST = 6% of 25,000 = Rs. 1500
Thus, the GST payable by the end user at Pune is (1500 + 1500)Rs = Rs. 3000
Step-by-step explanation:
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