Question

‘Tiptop Electronics’ supplied an AC of 1.5 ton to a company. Cost of the AC supplied is Rs. 51,200 (with GST). Rate of CGST on AC is 14%. Then find the following amounts as shown in the tax invoice.
A) Rate of SGST
B) Rate of GST on AC
C) Taxable value of AC
D) Total amount of GST
E) Amount of CGST
F) Amount of SGST

Answer 1

Hint: Find out the total GST rates and after that find out all the rest of the parts by simple relation:
Taxable value (1 + GST) = Total cost. The Formula is derived from the concept that on applying GST to the base value or the taxable value we obtain the total cost. So, total cost = taxable value + GST applied on taxable value.
Complete step-by-step answer:
Total cost of the A.C = 51,200.
We have Central GST = 14%
CGST = SGST
So, the rate of SGST = 14%.
GST = CGST + SGST
GST = 28 %.
Now we find the taxable value. To find that we use the formula Taxable value (1 + GST) = Total cost.
Since, GST = 28% we put the value of GST in the formula as 0.28. The Formula is derived from the concept that on applying GST to the base value or the taxable value we obtain the total cost
So, total cost = taxable value + GST applied on taxable value.
Total cost = Taxable value (1+0.28) = 51,200.
Taxable value = $\dfrac{51,200}{1.28}$
So, the taxable value of the AC is 40,000.
The amount of GST is 40,000(0.28)
                   =400(28)
                                      =11,200.
Now the Rate of CGST is 14%,
So, CGST is = 40,000(.14),
           = 400(14),
          = 5600.
The value of CGST on the AC is 5,600 Rs.
Now the Rate of SGST is 14%,
So, SGST is = 40,000(.14),
          = 400(14),
          = 5600.
The value of SGST on the AC is 5,600 Rs.

Note: Since we know that the General sales tax consists of equal share of both state and central sales tax so instead of calculating separately for both CGST and SGST we can directly divide our GST in half and that will be equal to both our CGST and SGST.