Question 1

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 1st of July 2017 to 31st July 2017. Find the GST payabl

Accepted 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

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 th

Accepted Answer

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

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 bott

Accepted Answer

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

Question 4

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 pa

Accepted Answer

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

Question 5

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?

Accepted Answer

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

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. Supplie

Accepted Answer

Rate of Mobile Battery = ₹200 CGST = 6% of 200 = × 200 = ₹ 12 ∴ CGST = SGST = ₹ 12

Question 7

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,

Accepted Answer

Cost of 100 Pencil boxes = 20 × 1oo = ₹ 2000 CGST = 6% of 2000 = × 2000 = ₹ 120 ∴ CGST = SGST = ₹ 120

Question 8

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 f

Accepted Answer

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 9

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)

Accepted Answer

Here, output tax is same as input tax. ∴ Trader payable GST will be zero.

Question 10

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)

Accepted 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.

Chapter 4 Financial Planning Practice Set 4.2 Solutions