Page 28 - Ch_10 ITC

CCP 10.08.34.00
Zeon Ltd., a GST registered supplier located in Ranchi, Jharkhand, is engaged in the manufacturing of

washing machines & mixer grinders. It provides you the details of various activities undertaken during
the month of September, 20XX as follows
S.No. Particulars Amount (₹)

(1) Outward supplies made during the month
a Within Jharkhand 24,00,000
b Outside Jharkhand 5,00,000 29,00,000
(2) Purchase of raw materials from registered dealers within Jharkhand which includes 7,00,000
materials worth ₹ 2,00,000 purchased from Mr. Krishna, a registered person who

is paying tax under composition scheme
(3) Bus purchased from a registered dealer in Tatanagar, Jharkhand. Bus used to ferry 12,00,000
its 25 workers to and from factory.

Assume the rates of GST applicable on various supplies as follows:
Nature of supply CGST SGST IGST
Composition supplies 0.5% 0.5% -

Bus 14% 14% 28%
Raw materials 6% 6% 12%
Washing machines & mixer grinders 9% 9% 18%

Assume the rates of GST applicable on various supplies as follows:

CGST 20,000
SGST 5,000
IGST 95,000
Note:

(i) All the figures mentioned above are exclusive of taxes.
(ii) Both inward & outward supplies within the State of Jharkhand are to be considered intra-State
supplies and outside the State of Jharkhand are inter-State supplies.
(iii) Subject to information given above, all the other conditions necessary for availing ITC have been
fulfilled.

Calculate the amount of net minimum GST payable in cash by Zeon Ltd. for the month of Sep, 20XX
Brief and suitable notes should form part of your answer. (CA Inter May 22 Exam)
Answer:

(A) Calculation of Total Tax Liability:-
Particulars Value(`) IGST @ 18% (`) CGST @ 9% (`) SGST @ 9% (`)
Intra-State supply of goods 24,00,000 - 2,16,000 2,16,000
Inter-State supply of goods 5,00,000 90,000 - -
Total Tax Liability (A) - 90,000 2,16,000 2,16,000

(B) Calculation of Total Input Tax Credit (ITC):-
Particulars Value(`) IGST @ 18% (`) CGST @ 9% (`) SGST @ 9% (`)

Opening Balance (Given) 95,000 20,000 5,000

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