Beruflich Dokumente
Kultur Dokumente
10,000/- and
incurred expenses to produce final saleable
goods. Basic Customs Duty @ 10 % was
chargeable on imported goods. These
manufactured goods were sold within the state
at Rs. 45,000 plus applicable GST. Rate of CGST
and SGST is 5% and 7% respectively. Compute
Cost, Sale value and tax payable for the
transaction.
Solution: Calculation of Net cost of imported goods
Amount
Particulars
(Rs)
Cost of Goods imported 10,000
Add: Basic Customs Duty
1,000
@ 10%
Cost of imported goods
11,000
(including BCD)
Add: CGST on Import @
550
5%
Add: SGST on Import @
770
7%
Cost of imported goods
(including BCD & GST) 12,320
Calculation of Sale value after import
Particulars Amount(Rs)
Sale Value (before tax) 45,000
Add: CGST on Import @
2,250
5%
Add: SGST on Import @
3,150
7%
Sales Value 50,400
Tax Payable Calculation
CGST SGST
Particulars
(Rs.) (Rs.)
Output tax 2,250 3,150
Less: Input
– –
tax credit
CGST 550 –
SGST – 770
Net tax
1,700 2,380
payable
Note: Please note that GST shall be levied including Basic Customs
Duty considering.
Example- (Export)
Amount
Particulars
(Rs)
Cost of Imported Goods(from
50,400
above example)
Add: Margin and Modification
10,000
Amt.
Sale Value 60,400
Add: CGST on Export @ 5% –
Add: SGST on Export @ 7% –
Export Value 60,400
Refund Calculation
Amount
Particulars
(Rs)
Basic Customs
Duty(BCD, from above 1,000.00
example)
Refund Factor 0.80
Refund amount of BDC 800.00
Add: CGST(from above
550.00
example)
Add: SGST(from above
770.00
example)
Total Refund amount 2,120.00
The above example withstand two basic
principles of Taxation Laws i.e. Exports are
zero rated and the incidence of tax will
follow the destination principle (The taxes
will remain with the state where the goods
are used, however use factor can be
prescribed by the law)
Functioning of GST
Retailer: Similarly, when a retailer sells the same goods after a value
addition of (say) Rs. 10, he pays net CGST of only Re.1, after
setting-off Rs.15 from his gross GST of Rs. 16 and net SGST of only
Rs. 0.5, after setting-off of Input Tax Credit of Rs. 7.5, from the
gross SGST of Rs. 8/- paid to wholesaler.
Gross Value:160 on that CGST 16/- and SGST 8/-
Input Credit: CGST 15-/ and SGST 7.5/-
Net Liability: Rs. 1 + 0.5 = 1.5/-
Manufacturer : Let us suppose that CGST rate is 10% and SGST rate is 5% , with the
manufacturer making value addition of Rs.30 on his purchases worth Rs.100 of
input of goods CGST paid @10%) and services used in the manufacturing process.
The manufacturer will then pay net CGST of Rs. 3 after setting-off Rs. 10 as CGST
paid on his inputs (i.e. Input Tax Credit) from gross CGST of Rs. 13 and Rs, 6.5 as
SGST.
Gross Value:130 on that CGST 13/- and SGST 6.5/-
Input Credit: CGST 10-/ and SGST NIL/-
Net Liability: Rs. 3 + 6.5 = 9.5/-
Wholesaler: The manufacturer sells the goods to the wholesaler. When the
wholesaler sells the same goods after making value addition of (say), Rs. 20, he pays
net CGST of only Rs. 2, after setting-off of Input Tax Credit of Rs. 13, from the
gross CGST of Rs. 15 and net SGST of only Rs. 1, after setting-off of Input Tax
Credit of Rs. 6.5, from the gross SGST of Rs. 7.5 to the manufacturer.
Gross Value:150 on that CGST 15/- and SGST 7.5/-
Input Credit: CGST 13-/ and SGST 6.5/-
Net Liability: Rs. 2 + 1 = 3/-
Continued…….
Download Source- www.taxguru.in
Functioning of GST
Retailer: Similarly, when a retailer sells the same goods after a value
addition of (say) Rs. 10, he pays net CGST of only Re.1, after
setting-off Rs.15 from his gross GST of Rs. 16 and net SGST of only
Rs. 0.5, after setting-off of Input Tax Credit of Rs. 7.5, from the
gross SGST of Rs. 8/- paid to wholesaler.
Gross Value:160 on that CGST 16/- and SGST 8/-
Input Credit: CGST 15-/ and SGST 7.5/-
Net Liability: Rs. 1 + 0.5 = 1.5/-