A cycle manufacturer in Ghaziabad (UP) sold a cycle to a dealer in Agra (UP) for Rs. 16000 . This cycle was then sold to a dealer in Ujjain (M.P) for Rs. 17500 . If the GST rate for the cycle is 12% , Calculate:

A) The net GST payable at Agra

B) Input Tax Credit for the dealer in Ujjain.

Sub Grade: 9

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1920 and 2100

160 and 3200

170 and 6500

180 and 9500

answer is A.

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Detailed Solution

We have Ghaziabad (UP) to Agra (UP) with some state
GST = CGST+SGST
⇒ CGST = SGST = GST/2 = 12/2 6 %
⇒ Price = 16000
⇒ CGST = GST = (6/100) 16000 ⇒ Rs. 960
⇒ GST =960+960 = 1920 Rs.
⇒ Het GST payable at Agra = 1920 rupees
Sold to dealer in Ujjain (MP) for 17500
IGST as different state
IGST = GST = 12%
IGST = 12/100 x 17500 = Rs. 2100
Hence, option 1 is correct.

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