Mrs Riya has a leather coat manufacturer unit in state A. She buys raw materials worth 80000 from a supplier in state B at a discount of 10%. She sells her product worth rupees 220000 outside the state. If the rate of cgst@ 2.5%, find the IGST payable/credit of Mr riya
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Answer:
Discount on the raw material = 80,000(1 - 10/100)
9/10
= 80,000 ×
= 72,000
CGST on the selling price = 2,20,000 × 2.5/100
2,2000 × 2.5
2200 × 25
55,000
SGST = 55,000
Total GST = 55,000 + 55,000
= 1,10,000
therefore GST credit = 0
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