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Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for ₹ 24,500, and sold them to the local customers for ₹ 26,500. Find the GST to be paid at the rate of 5% and hence the CGST and UTGST to be paid for this transaction. (For Union Territories there is UTGST instead of SGST.)

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Given :
            Trading chain

          Rate of GST paid = 5%
To find :
(i) GST payable               (ii) CGST paid                 (iii) UTGST paid

Sol.
(i) For Malik as Agency :
Input Tax (GST on Purchase) = 5% of ₹24500

                                               = \({24500}*{5\over 100}\)

                                               = ₹1225

(ii) Output tax (GST on Sale) = 5% of ₹26500

                                              = \({26500}*{5\over 100}\)

                                              = ₹1325
(iii)                   GST payable = Output tax – Input tax
                                              = 1325 – 1225
∴                      GST payable = ₹100
(iv) We know that, CGST and UTGST are similar for the article. The net GST amount is
divided into two equal parts for this.

∴ CGST paid = \(100\over2\)    = ₹50      and       ∴     UTGST paid =  \(100\over2\)  = ₹50

Financial Planning for Math I September 19 , 2018 0 Comments 83 views