Question:

Nazama is a proprietor of a firm, registered under GST. She has paid GST of Rs. 12,500 on purchase and collected Rs. 14,750 on sale. What is the amount of ITC to be claimed? What is the amount of GST payable?

Answer:

Given
Output Tax (tax collected at the time of sale) = Rs. 14,750
Input Tax (tax paid at the time of purchase) = Rs. 12,500
∴ Input Tax Credit, ITC = Rs. 12, 500
We know that GST Payable = Output Tax – ITC
⇒ GST Payable = 14, 750 – 12, 500
= Rs. 2, 250

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Nazama is a proprietor of a firm, registered under GST. She has paid GST of Rs. 12,500 on purchase and collected Rs. 14,750 on sale. What is the amount of ITC to be claimed? What is the amount of GST payable?

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