Practice Set 4.2
- 'Chetana Store' paid total GST of Rs. 1,00,500 at the time of purchase and collected…
- Nazama is a proprietor of a firm, registered under GST. She has paid GST of Rs. 12,500…
- Amir Enterprise purchased chocolate sauce bottles and paid GST of Rs. 3800. He sold…
- Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for…
- M/s Beauty Products paid 18% GST on cosmetics worth Rs. 6000 and sold to a customer for…
- Prepare Business to Consumer (B2C) tax invoice using given information. Write the name…
- Prepare Business to Business (B2B) Tax Invoice as per the details given below. name of…
Practice Set 4.2
'Chetana Store' paid total GST of Rs. 1,00,500 at the time of purchase and collected GST Rs. 1,22,500 at the time of sale during 1st of July 2017 to 31st July 2017. Find the GST payable by Chetana Stores.
Answer:
Output Tax (tax collected at the time of sale) = Rs. 1,22,500
Input Tax (tax paid at the time of purchase) = Rs. 1,00,500
∴ Input Tax Credit, ITC = Rs. 1, 00, 500
We know that GST Payable = Output Tax – ITC
⇒ GST Payable by Chetana stores = 1, 22, 500 – 1, 00, 500
= Rs. 22, 000
Question 2.
Nazama is a proprietor of a firm, registered under GST. She has paid GST of Rs. 12,500 on purchase and collected Rs. 14,750 on sale. What is the amount of ITC to be claimed? What is the amount of GST payable?
Answer:
Output Tax (tax collected at the time of sale) = Rs. 14,750
Input Tax (tax paid at the time of purchase) = Rs. 12,500
∴ Input Tax Credit, ITC = Rs. 12, 500
We know that GST Payable = Output Tax – ITC
⇒ GST Payable = 14, 750 – 12, 500
= Rs. 2, 250
Question 3.
Amir Enterprise purchased chocolate sauce bottles and paid GST of Rs. 3800. He sold those bottles to Akbari Bros. and collected GST of Rs. 4100. Mayank Food Corner purchased these bottles from Akabari Bros and paid GST of Rs. 4500. Find the amount of GST payable at every stage of trading and hence find payable CGST and SGST.
Answer:
Amir Enterprise:
Input GST = Rs.3800
Output GST = Rs. 4100
∴ GST Payable = Output Tax – ITC
= 4100 – 3800 = Rs. 300
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 300 = 2x
⇒ x = 150
∴ CGST, SGST = Rs. 150
Akbari Bros:
Input GST = Rs. 4100
Output GST = Rs. 4500
∴ GST Payable = Output Tax – ITC
= 4500 – 4100 = Rs. 400
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 400 = 2x
⇒ x = 200
∴ CGST, SGST = Rs. 200
Question 4.
Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for Rs. 24,500, and sold them to the local customers for Rs. 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.)
Answer:
Input Tax = 5% of 24,500
= Rs. 1225
Output Tax = 5% of 26, 500
= Rs. 1325
We know that GST Payable = Output Tax – ITC
∴ GST Payable = 1325 – 1225
= Rs. 100
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + UTGST
Let CGST and UTGST be x.
Then GST = x + x
⇒ 100 = 2x
⇒ x = 50
∴ CGST, UTGST = Rs. 50
Question 5.
M/s Beauty Products paid 18% GST on cosmetics worth Rs. 6000 and sold to a customer for Rs. 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued?
Answer:
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 18 = 2x
⇒ x = 9%
∴ CGST, SGST = 9%
CGST = 9% of 10, 000 = Rs. 900
∴ SGST = Rs. 900
Question 6.
Prepare Business to Consumer (B2C) tax invoice using given information. Write the name of the supplier, address, state, Date, invoice number, GSTIN etc. as per your choice. Supplier : M/s - - -- - Address- - - - - State - - - - - Date - - - - - - - Invoice No. - - - - - GSTIN - - - - - - - - - - - - - -
Particulars –
Rate of Mobile Battery - Rs. 200 Rate of GST 12% HSN 8507, 1 pc.
Rate of Headphone - Rs. 750 Rate of GST 18% HSN 8518, 1 pc.
Answer:
Mobile Battery:
Taxable Value = Rs. 200
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 12 = 2x
⇒ x = 6%
Hence CGST, SGST = 6%
We know that CGST = 
⇒ CGST = 
= Rs. 12
∵ CGST = SGST
∴ SGST = Rs. 12
We know that Total Value = Taxable value + CGST + SGST
∴ Total Value = 200 + 12 + 12 = Rs. 224
Headphone:
Taxable Value = Rs. 750
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 18 = 2x
⇒ x = 9%
Hence CGST, SGST = 9%
We know that CGST =
⇒ CGST = 
= Rs. 67.5
∵ CGST = SGST
∴ SGST = Rs. 67.5
We know that Total Value = Taxable value + CGST + SGST
∴ Total Value = 750 + 67.5 + 67.5 = Rs. 885
Question 7.
Prepare Business to Business (B2B) Tax Invoice as per the details given below. name of the supplier, address, Date etc. as per your choice.
Supplier - Name, Address, State, GSTIN, Invoice No., Date
Recipient - Name, Address, State, GSTIN,
Items :
(1) Pencil boxes 100, HSN - 3924, Rate - Rs. 20, GST 12%
(2) Jigsaw Puzzles 50, HSN 9503, Rate - Rs. 100 GST 12%.
Answer:
Pencil Box:
Taxable Value = Rs. 2000
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 12 = 2x
⇒ x = 6%
Hence CGST, SGST = 6%
We know that CGST =
⇒ CGST = 
= Rs. 120
∵ CGST = SGST
∴ SGST = Rs. 120
We know that Total Value = Taxable value + CGST + SGST
∴ Total Value = 2000 + 120 + 120 = Rs. 2240
Jigsaw puzzle:
Taxable Value = Rs. 5000
We know that CGST and SGST are components of GST.
CGST is always equal to SGST
i.e. GST = CGST + SGST
Let CGST and SGST be x.
Then GST = x + x
⇒ 12 = 2x
⇒ x = 6%
Hence CGST, SGST = 6%
We know that CGST =
⇒ CGST = 
= Rs. 300
∵ CGST = SGST
∴ SGST = Rs. 300
We know that Total Value = Taxable value + CGST + SGST
∴ Total Value = 5000 + 300 + 300 = Rs. 5600
