Question

A wholeseller buys pens having taxable value ₹ 12,000 and sold it to the retailer for the taxable value ₹ 14,000. Rate of GST is 20%. Find the CGST and SGST payable by wholeseller.

Answer 1

Wholeseller taxable value = ₹ 12,000

∴ Input tax = `20/100 xx 12,000` = ₹ 2,400

Retailer taxable value= ₹ 14,000

∴ Output tax = `20/100 xx 14,000` = ₹ 2,800

GST payable = Output tax – Input tax

= ₹ (2,800 – 2,400)

= ₹ 400

Hence, CGST payable by wholeseller = ₹ 200 and SGST payable by wholeseller = ₹ 200.