Question

Anna Patil supplied a vacuum cleaner to a shopkeeper in Vasai for the taxable value of Rs 14,000 and GST rate of 28%. Shopkeeper sold it to the customer at the same GST rate of Rs 16,800 (taxable value). Find the following:
$\left( i \right)$ Amount of CGST and SGST shown in the tax invoice issued by Anna Patil.
$\left( {ii} \right)$ Amount of CGST and SGST charged by the shopkeeper in Vasai.

Answer 1

Hint: In this particular question use the concept that the GST is equally divided into CGST and SGST, so CGST = SGST = $\dfrac{{{\text{GST}}}}{2}$, and GST is calculated as taxable value multiplied by the rate of GST in percentage, so use these concepts to reach the solution of the question.

Complete step-by-step answer:
Anna Patil supplied a vacuum cleaner to a shopkeeper in Vasai for the taxable value of Rs 14,000 and GST rate of 28%.
And Shopkeeper sold it to the customer at the same GST rate of Rs 16,800 (taxable value).
$\left( i \right)$ Amount of CGST and SGST shown in the tax invoice issued by Anna Patil.
It is given that Anna Patil supplied a vacuum cleaner to a shopkeeper in Vasai for the taxable value of Rs 14,000 and GST rate of 28%.
Now as we all know that GST is calculated as taxable value multiplied by the rate of GST in percentage.
So net GST = $14000 \times \dfrac{{28}}{{100}} = 3920$Rs.
Now as we know that GST is equally divided into CGST and SGST,
So, CGST = SGST = $\dfrac{{{\text{GST}}}}{2}$,
$ \Rightarrow {\text{CGST = SGST = }}\dfrac{{3920}}{2} = 1960$ Rs.
So, the amount of CGST and SGST shown in the tax invoice issued by Anna Patil is Rs. 1960 each.
$\left( {ii} \right)$ Amount of CGST and SGST charged by the shopkeeper in Vasai.
It is given that the shopkeeper sold it to the customer at the same GST rate of Rs 16,800 (taxable value).
So net GST = $16800 \times \dfrac{{28}}{{100}} = 4704$Rs.
Now as we know that GST is equally divided into CGST and SGST,
So, CGST = SGST = $\dfrac{{{\text{GST}}}}{2}$,
$ \Rightarrow {\text{CGST = SGST = }}\dfrac{{4704}}{2} = 2352$ Rs.
So, the amount of CGST and SGST charged by the shopkeeper in Vasai is Rs. 2352 each.
So this is the required answer.

Note: Whenever we face such types of questions the key concept we have to remember is that always recall that GST is equally divided in to CGST and SGST, where GST refers to goods and service tax, CGST refers to central goods and service tax, SGST refers to state goods and service tax, so calculate GST for both of the cases as above, then divide it by 2 for both of the cases as above, we will get the required CGST and SGST for both of the cases.