Question

A trader of Madhya Pradesh purchases goods worth ₹ 12,00,000 from a trader of Gwalior (M.P.) on which CGST rate is 12% and SGST rate is 6%. The trader sells 1/3 of the goods to a trader of Giijarat for ₹ 6,00,000 and charged IGST @ 15%. Remaining goods he sells to a trader of Gwalior (M.P.) for ₹ 12,00,000 on which 12% CGST and 6% SGST is payable. Calculate the tax payable.

Answer 1

(1) GST on account of purchase of the trader on the invoice of purchase will be as follows :

Particulars	Amount
Purchases Add : CGST @ 12% Add : SGST @ 6%	12,00,000 1,44,000 72,000
Total Amount Paid	14,16,000

(2) The GST in the tax invoice of sales by the trader will be calculated as under :

Particulars	Intra State Sales (₹)	Intra State Sales (₹)
Sales Add : CGST @ 12% Add : SGST @ 6% Add : IGST @ 15%	12,00,000 1,44,000 72,000        -	6,00,000            -            - 90,000
Total Amount	14,16,000	6,90,000

(3) Trader tax liability under GST will be :

Particulars	(₹) CGST	(₹) SGST	(₹) IGST
GST on sales	1,44,000	72,000	90,000
Less : GST on Purchases Amount of tax Payable	1,44,000   -	72,000   -	- 90,000