Question

Smt. Malhotra purchased solar panels for the taxable value of Rupees 85,000. She sold them for Rupees 90,000. The rate of GST is 5%. Find the ITC of Smt. Malhotra. What is the amount of GST payable by her ? Solve the word problem

Answer 1

Answer:

ITC of Smt. Malhotra = Rs 4250

GST payable by Smt. Malhotra = Rs 250

Step-by-step explanation:

Smt. Malhotra purchased solar panels for the taxable value of Rupees 85,000

GST Rate = 5 %

GST = (5/100) * 85000  = Rs 4250

She Sold solar palnels for Rs 90000

GST = (5/100) * 90000 = Rs 4500

ITC ( Input Tax Credit)  of Smt. Malhotra = Rs 4250  ( GST included while purcahsing)

GST payable by Smt Malhotra = 4500 - 4250 = Rs 250

Answer 2

Answer:

ITC = 4250 Rs.

GST paid = 250 Rs.

Step-by-step explanation:

In the question,

Purchased taxable value of solar panels by Smt. Malhotra = 85,000 Rs.

Rate of GST = 5 %

So,

$GST = \frac{5}{100}\times 85000= 4250\ Rs.$

Now,

Selling Price of Solar Panels, SP = 90000 Rs.

Therefore, GST on this will be,

$\frac{5}{100}\times 90000=4500$

Therefore,

We know that ITC (Input Tax Credit) is given by = 4250 Rs.

Therefore,

GST paid by Malhotra = Total GST - ITC

GST paid = 4500 - 4250 = 250 Rs.