Tag: GST Computation

Problem 1: Computation of GST with ITC:

ABC Traders, a registered taxpayer in Maharashtra, provides the following information for August 2026:

Assume all purchases are eligible for ITC. Calculate:

1. Output GST liability
2. Available ITC
3. GST payable through cash

Solution

Step 1: Output GST

Intra State Sales = ₹8,00,000

CGST @ 9% = ₹72,000
SGST @ 9% = ₹72,000

Inter State Sales = ₹4,00,000

IGST @ 18% = ₹72,000

Therefore:

CGST = ₹72,000
SGST = ₹72,000
IGST = ₹72,000

Total Output GST = ₹2,16,000

Step 2: ITC on Purchases

Purchase within Maharashtra = ₹3,00,000

CGST ITC @ 9% = ₹27,000
SGST ITC @ 9% = ₹27,000

Inter State purchase = ₹2,00,000

IGST ITC @ 18% = ₹36,000

Total ITC:

CGST = ₹27,000
SGST = ₹27,000
IGST = ₹36,000

Total ITC = ₹90,000

Step 3: Set Off ITC

IGST liability = ₹72,000

IGST ITC = ₹36,000

Remaining IGST liability = ₹36,000

The remaining IGST liability is paid through cash.

CGST liability = ₹72,000
Less CGST ITC = ₹27,000

Cash CGST = ₹45,000

SGST liability = ₹72,000
Less SGST ITC = ₹27,000

Cash SGST = ₹45,000

Final Answer

GST payable through Electronic Cash Ledger = ₹1,26,000

Problem 2: Comprehensive GST Computation:

XYZ Ltd., registered in Karnataka, provides the following information:

All purchases are eligible for ITC and all goods are used exclusively for business purposes.

Calculate the net GST payable.

Solution

Step 1: Output Tax

Intra State taxable sales:

₹10,00,000 × 18% = ₹1,80,000

CGST = ₹90,000
SGST = ₹90,000

Inter State taxable sales:

₹6,00,000 × 18% = ₹1,08,000 IGST

Therefore:

CGST = ₹90,000
SGST = ₹90,000
IGST = ₹1,08,000

Total Output Tax = ₹2,88,000

Step 2: ITC

Intra State Purchases

₹4,00,000 × 18% = ₹72,000

CGST ITC = ₹36,000
SGST ITC = ₹36,000

Inter State Purchases

₹3,00,000 × 18% = ₹54,000 IGST ITC

Office Equipment

₹1,00,000 × 18% = ₹18,000

CGST ITC = ₹9,000
SGST ITC = ₹9,000

Therefore:

CGST ITC = ₹45,000
SGST ITC = ₹45,000
IGST ITC = ₹54,000

Total ITC = ₹1,44,000

Step 3: Set Off

IGST liability = ₹1,08,000

IGST ITC = ₹54,000

Remaining IGST liability = ₹54,000.

CGST liability = ₹90,000
CGST ITC = ₹45,000

Cash CGST = ₹45,000.

SGST liability = ₹90,000
SGST ITC = ₹45,000

Cash SGST = ₹45,000.

Final Answer

Net GST payable = ₹1,44,000

Problem 3: GST Computation with Different Tax Rates

A registered dealer makes the following sales during the month:

Purchases during the month:

All ITC is eligible. Calculate GST payable.

Solution

Output GST

Intra State supply at 18%:

₹5,00,000 × 18% = ₹90,000

CGST = ₹45,000
SGST = ₹45,000

Inter State supply at 12%:

₹3,00,000 × 12% = ₹36,000 IGST

Intra State supply at 5%:

₹2,00,000 × 5% = ₹10,000

CGST = ₹5,000
SGST = ₹5,000

Therefore:

CGST = ₹50,000
SGST = ₹50,000
IGST = ₹36,000

ITC

Intra State purchase at 18%:

₹2,00,000 × 18% = ₹36,000

CGST ITC = ₹18,000
SGST ITC = ₹18,000

Inter State purchase at 12%:

₹1,00,000 × 12% = ₹12,000 IGST ITC

Intra State purchase at 5%:

₹1,00,000 × 5% = ₹5,000

CGST ITC = ₹2,500
SGST ITC = ₹2,500

Total:

CGST ITC = ₹20,500
SGST ITC = ₹20,500
IGST ITC = ₹12,000

Set Off

IGST:

₹36,000 − ₹12,000 = ₹24,000 cash

CGST:

₹50,000 − ₹20,500 = ₹29,500 cash

SGST:

₹50,000 − ₹20,500 = ₹29,500 cash

Final Answer

Total GST payable through cash = ₹83,000

Problem 4: Full Problem Including Reverse Charge

PQR Ltd. has the following GST liabilities:

Available ITC:

Calculate the amount payable through cash.

Solution

The tax payable under Reverse Charge Mechanism must be paid through the prescribed mechanism and cannot simply be discharged using existing ITC.

First, output tax is considered.

IGST liability = ₹1,00,000
IGST ITC = ₹60,000

Remaining IGST = ₹40,000

CGST liability = ₹70,000
CGST ITC = ₹30,000

Remaining CGST = ₹40,000

SGST liability = ₹70,000
SGST ITC = ₹30,000

Remaining SGST = ₹40,000

RCM liability = ₹20,000

Therefore:

Cash IGST = ₹40,000
Cash CGST = ₹40,000
Cash SGST = ₹40,000
RCM = ₹20,000

Total Cash Payment = ₹1,40,000

Final Answer

GST payable through cash = ₹1,40,000

The taxpayer may subsequently claim eligible ITC of tax paid under RCM, subject to the conditions of Section 16 of the CGST Act, 2017.

Problem 5: Examination Oriented Comprehensive Problem

A registered taxpayer provides the following information for a tax period:

Calculate the net GST payable.

Solution

Step 1: Output Tax

Intra State sales @ 18%:

₹12,00,000 × 18% = ₹2,16,000

CGST = ₹1,08,000
SGST = ₹1,08,000

Inter State sales @ 18%:

₹8,00,000 × 18% = ₹1,44,000 IGST

Intra State sales @ 5%:

₹4,00,000 × 5% = ₹20,000

CGST = ₹10,000
SGST = ₹10,000

Therefore:

CGST = ₹1,18,000
SGST = ₹1,18,000
IGST = ₹1,44,000

Total Output GST = ₹3,80,000

Step 2: ITC on Current Purchases

Intra State purchases @ 18%:

₹5,00,000 × 18% = ₹90,000

CGST = ₹45,000
SGST = ₹45,000

Inter State purchases @ 18%:

₹3,00,000 × 18% = ₹54,000 IGST

Intra State purchases @ 5%:

₹2,00,000 × 5% = ₹10,000

CGST = ₹5,000
SGST = ₹5,000

Current ITC:

CGST = ₹50,000
SGST = ₹50,000
IGST = ₹54,000

Add eligible ITC brought forward = ₹30,000.

Assuming the brought forward credit is available as IGST credit:

Total IGST ITC = ₹84,000.

Step 3: Set Off

IGST liability = ₹1,44,000
IGST ITC = ₹84,000

Remaining IGST = ₹60,000

CGST liability = ₹1,18,000
CGST ITC = ₹50,000

Remaining CGST = ₹68,000

SGST liability = ₹1,18,000
SGST ITC = ₹50,000

Remaining SGST = ₹68,000

Final Answer

Net GST payable through cash = ₹1,96,000