Page 10 - Chapter 1

CH 1 ITC of SGST to be carry forward in next month ` 10,000 Computation of IGST payable by B to Central Government in cash
Particular 9,900 `
Note:-
ITC of SGST has been used to pay SGST & IGST, As per order prescribed.
Introduction of GST A makes intra-State supply of goods valued at ` 50,000 to B within State of Less: Credit of CGST 4,500
IGST payable
CCP 01.12.25.00

Less: Credit of SGST

4,500
IGST payable to Central Government in cash

900
Karnatake. B makes inter-State supply to X Ltd. (located in Telangana) after
Credit of CGST and SGST can be used to pay IGST [Section 49(5) of the CGST
adding 10% as its margin. Thereafter, X Ltd. sells it to Y in Telangana (Intra-
State sale) after adding 10% as his margin.
Assume that the rate of GST chargeable is 18% (CGST 9% plus SGST 9%) and Act, 2017]. Karnataka Government will transfer SGST credit of ` 4,500 utilised in
the payment of IGST to the Central Government.
IGST chargeable is 18%. Calculate tax payable at each stage of the transactions III. Intra -State supply of goods by X Ltd. to Y
detailed above. Wherever input tax credit is available and can be utilized, Particular `
calculate the net tax payable in cash. At each stage of the transaction, indicate Value charged for supply of goods (` 55,000 x 110%) 60,500
which Government will receive the tax paid and to what extent. (CA Final Add: CGST @ 9% 5,445
Suggested Nov 18 Old ) Add: SGST @ 9% 5,445
Answer:- I. Intra-State supply of goods by A to B Total price charged by X Ltd. from Y 71,390

Particular `
Computation of CGST and SGST payable X Ltd in cash
Value charged for supply of goods 50,000
Particular `
Add: CGST @ 9% 4,500
CGST payable 5,445
Add: SGST @ 9% 4,500
Less: Credit of IGST 5,445
Total price charged by A from B 59,000
CGST payable to Central Government in cash Nil
A is the first stage supplier of goods and hence, does not have credit of CGST, SGST
SGST payable 5,445
or IGST. Thus, the entire CGST (` 4,500) & SGST (` 4,500) charged will be paid in
Less: Credit of IGST [` 9,900 - ` 5,445] 4,455
cash by A to the Central Government and Karnataka Government respectively.
SGST payable to Telangana Government in cash 990
II. Inter-State supply of goods by B to X Ltd. - Margin @10%
Credit of IGST can be used first in IGST, then in CGST and SGST in any order
Particular ` [Section 49(5) of the CGST Act, 2017]. Central Government will transfer IGST of

Value charged for supply of goods(` 50,000 x 110%) 55,000 ` 4,455 utilised in the payment of SGST to Telangana Government
Add: IGST @ 18% 9,900

Total price charged by B from X Ltd. 64,9000

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CA Final GST Questioner