Question

Purchased motor car from Tata & company worth₹ 200000 at 18% GST. Find out GST amount

Answer 1

Answer:

1) GST Amount Rate is exclusive  =  36000 i.e. (200000 × 18%)

2) GST Amount Rate is inclusive = 30508 i.e.(200000×18÷118)

Explanation:

Given:

1. Motor Car Value = Rs.200000
2. Rate of GST = 18%
3. GST Amount = (1) × (2) i.e. 200000 × 18% =36000

If GST is inclusive then, GST amount is 200000×18÷118 =30508

Journal Entry (GST is inclusive) :

Motor car A/c------------Dr           169492

GST A/c--------------------Dr             30508

          To Tata & Company A/c                      200000

(Being Motor Car purchased)

Journal Entry (GST is exclusive) :

Motor car A/c------------Dr           200000

GST A/c--------------------Dr              36000

          To Tata & Company A/c                     236000

(Being Motor Car purchased)