Question

Mr. A of Maharashtra supplies goods to Mr. B of Gujarat. The value of goods is Rs. 100000/-. Calculate the Amount of GST payable @ 12%.

Answer 1

ANSWER :

• ❖ If Mr. A of Maharashtra supplies goods to Mr. B of Gujarat and the value of goods is Rs. 1,00,000/; then the Amount of GST payable @ 12% will be Rs. 12,000.

___________________________________________________________

SOLUTION :

❒ Given :-

• Mr. A of Maharashtra supplies goods to Mr. B of Gujarat.

• The value of goods is Rs. 1,00,000.

• Rate of GST is @ 12%

❒ To Calculate :-

• The Amount of GST payable = ?

❒ Note :-

• When Mr. A of Maharashtra supplies goods to Mr. B of Gujarat; it is an inter-state transaction. Hence, IGST @12% will be charged on the value of goods.

___________________________________________

❒ Calculation :-

It is given that,

• Value of goods supplied = Rs. 1,00,000

• Rate of GST = 12%

Hence,

• ✪ Amount of GST payable = Value of Goods × Rate of GST

➨ Amount of GST payable = Rs. 1,00,000 × 12%

➨ Amount of GST payable = $\tt{Rs. \bigg(1,00,000 \times \dfrac{12}{100}\bigg)}$

∴ Amount of GST payable = Rs. 12,000

So,

• An amount of Rs. 12,000 IGST is to be payable for the transaction.

___________________________________________________________

KNOW MORE :

⊚ Goods ans Services Tax (GST) :-

• ✎ According to Article 366 (12A) of Constitution of India, amended by 101st Constitutional Amendment Act, 2016 the Goods and Services Tax (GST) is defined "as a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption."

⊚ Types of GST :-

• ✎ Central Goods and Services Tax (CGST) : It is also known as Central tax and is levied on intra-state or intra-union territory without legislature supply of goods or services or both.

• ✎ State Goods and Services Tax (SGST) : It is also known as state tax and is levied on intra- state supply of goods or services or both.

• ✎ Union Territory Goods and Services Tax (UTGST) : It is also known as union territory tax and is levied on intra-union territory supply of goods or services or both.

• ✎ Integrated Goods and Services Tax (IGST) : It is also known as integrated tax and is levied on inter state/union territory supply of goods or services or both.

Answer 2

Given :-

• Mr. A of Maharashtra supplies goods to Mr. B of Gujarat.
• The value of goods is Rs. 1,00,000
• Rate of GST = 12%

To find :-

• The amount of GST playable

Solution :-

Whenever a transaction took place between inter-states, IGST is applicable on the transaction.

Since Mr. A of Maharashtra supplies goods to Mr. B of Gujarat, it is an inter state transaction and so, IGST @12% is applicable on the transaction.

Amount of GST = Rate of GST × Amount of goods

Amount of GST = 12% × 1,00,000

Amount of GST = 12/100 × 1,00,000

Amount of GST = 12 × 1,000

Amount of GST = 12,000

Hence the required amount of GST is 12,000.