**Chapter 4 Financial Planning Set 4.2**

## Chapter 4 Financial Planning Set 4.2

**Question 1. ‘Chetana Store’ paid total GST of ₹ 1,00,500 at the time of purchase and collected GST ₹ 1,22,500 at the time of sale during 1 ^{st} of July 2017 to 31^{st} July 2017. Find the GST payable by Chetana Stores.**

Answer:

Output tax (Tax collected at the time of sale)

= ₹ 1,22,500

Input tax (Tax paid at the time of purchase)

= ₹ 1,00,500

ITC (Input Tax credit) = ₹ 1,00,500.

GST payable = Output tax – ITC

= 1,22,500 – 1,00,500

= ₹ 22,000

GST payable by Chetana stores is ₹ 22,000.

**Question 2. Nazama is a proprietor of a firm, registered under GST. She has paid GST of ₹ 12,500 on purchase and collected ₹ 14,750 on sale. What is the amount of ITC to be claimed? What is the amount of GST payable?Solution:**
Output tax = ₹ 14,750

Input tax = ₹ 12,500

∴ ITC for Nazama = ₹ 12,500.

∴ GST payable = Output tax – ITC

= 14750 – 12500

= ₹ 2250

∴ Amount of ITC to be claimed is ₹ 12,500 and amount of GST payable is ₹ 2250.

**Question 3. Amir Enterprise purchased chocolate sauce bottles and paid GST of ₹ 3800. He sold those bottles to Akbari Bros, and collected GST of ₹ 4100. Mayank Food Corner purchased these bottles from Akbari Bros, and paid GST of ₹ 4500. Find the amount of GST payable at every stage of trading and hence find payable CGST and SGST.Solution:**

For Amir Enterprise:

Output tax = ₹ 4100

Input tax = ₹ 3800

ITC for Amir enterprise = ₹ 3800.

∴ GST payable = Output tax – ITC

= 4100 – 3800

= ₹ 300

For Akbari Bros.:

Output tax = ₹ 4500

Input tax = ₹ 4100

ITC for Akbari Bros = ₹ 4100.

GST payable = Output tax – ITC

= 4500 – 4100 = ₹ 400

∴ Statement of GST payable at every stage of trading:

**Question 4. 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.)Solution:**

For Malik Gas Agency:

Output tax = 5% of 26500

= × 26500

= ₹ 1325

Input tax = 5% of 24500

= × 24500

= ₹ 1225

ITC for Malik Gas Agency = ₹ 1225.

∴ GST payable = Output tax – ITC

= 1325 – 1225

= ₹ 100

∴ CGST = UTGST = ₹ 50

∴ The GST to be paid at the rate of 5% is ₹ 100 and hence, CGST and UTGST paid for the transaction is ₹ 50 each.

**Question 5.M/s Beauty Products paid 18% GST on cosmetics worth ₹ 6000 and sold to a customer for ₹ 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued?Solution:**

Output tax = 18% of 10,000

= × 10,000

= ₹ 1800

∴ Amount of CGST and SGST shown in the tax invoice issued is ₹ 900 each.

**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 _______ParticularsRate of Mobile Battery ₹ 200 Rate of GST 12% HSN 8507 1 PCRate of Headphone ₹750 Rate of GST 18% HSN 8518 1 PcSolution:**

Rate of Mobile Battery = ₹200

CGST = 6% of 200

= × 200

= ₹ 12

∴ CGST = SGST = ₹ 12

Rate of Headphone = ₹ 750

COST = 9% of 750

= × 750

= ₹ 67.5

∴ CGST = SGST = ₹ 67.5

**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., DateRecipient – Name, Address, State, GSTIN,Items:i. Pencil boxes 100, HSN – 3924, Rate – ₹ 20, GST 12%ii. Jigsaw Puzzles 50, HSN 9503, Rate – ₹ 100 GST 12%.Solution:**

Cost of 100 Pencil boxes

= 20 × 1oo

= ₹ 2000

CGST = 6% of 2000

= × 2000

= ₹ 120

∴ CGST = SGST = ₹ 120

Cost of 50 Jigsaw Puzzles = 100 × 50

= ₹ 5000

CGST = 6% of 5000

= × 5000

= ₹ 300

CGST – SGST = ₹ 300

**Question 1.Suppose a manufacturer sold a cycle for a taxable value of ₹ 4000 to the wholesaler. Wholesaler sold it to the retailer for ₹ 4800 (taxable value). Retailer sold it to a customer for ₹ 5200 (taxable value). Rate of GST is 12%. Complete the following activity to find the payable CGST and SGST at each stage of trading. (Textbook pg. no. 92)Solution:**

GST payable by manufacturer = ₹ 480

Output tax of wholesaler

= 12% of 4800 = × 4800 = ₹ 576

∴ GST payable by wholesaler

= Output tax – Input tax

= 576 – 480

= ₹ 96

Output tax of retailer = 12% of 5200

**Question 2. Suppose in the month of July the output tax of a trader is equal to the input tax, then what is his payable GST?(Textbook pg. no. 93)Answer:**

Here, output tax is same as input tax.

∴ Trader payable GST will be zero.

**Question 3.Suppose in the month of July output tax of a trader is less than the input tax then how to compute his GST? (Textbook pg. no. 93)Answer:**
If output tax of a trader in a particular month is less than his input tax, then he won’t be able to get entire credit for his input tax. In such a case his balance credit will be carried forward and adjusted against the subsequent transactions.