Q1 Goods Purchased from A LTD
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 5 | 1000 |
| CGST 2.5% | 25 | ||
| SGST 2.5% | 25 | ||
| TOTAL | 1050 |
Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 7 per kg
Make Sales Bill and Tax Computation Assuming he is a Normal Dealer
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Sales Bill
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 7 | 1400 |
| CGST 2.5% | 35 | ||
| SGST 2.5% | 35 | ||
| TOTAL | 1470 |
Tax Payable Under Normal Scheme
| PARTICULARS | AMT | CGST | SGST | TOTAL |
| OUTPUT GST | 1400 | 35 | 35 | 70 |
| LESS INPUT GST | 1000 | 25 | 25 | 50 |
| GST PAYABLE | 12 | 8 | 20 |
He is a Composition Dealer and Tax Rate is 1%
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Sales Bill
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 7 | 1400 |
| TOTAL | 1400 |
Tax Payable Under Composition Schem
| PARTICULARS | AMT | RATE | GST |
| OUTPUT GST | 1400 | 1% | 14 |
| LESS INPUT GST | N/A | ||
| GST PAYABLE | 14 |
In Which Option less GST is payable
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| Type of Dealer | GST Payable |
| Normal Dealer | 20 |
| Composition Dealer | 14 |
Less tax is payable under Composition Scheme
In Which Option Company earns more Profit
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| PARTICULARS | Sales Amt | Purchase Amt | Profit |
| Normal Dealer | 1400 | 1000 | 400 |
| Composition Dealer | 1388 | 1050 | 338 |
Company earns More Profit in Normal Scheme
Which option will buyer prefer if buyer is not Registered in GST?
View answer
In this Case,total amount including taxes is called Purchase Price
| PARTICULARS | Purchase Price |
| Normal Dealer | 1470 |
| Composition Dealer | 1400 |
Purchase from Composition Dealer is less expensive
Which option will buyer prefer if buyer is Registered in GST?
-a-
In this case,Purchase Price excluding taxes is Purchase Price
| PARTICULARS | Purchase Price |
| Normal Dealer | 1400 |
| Composition Dealer | 1400 |
Hence,it makes no difference to Buyer
-ea-
Q 2 Goods Purchased from A LTD
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 5 | 1000 |
| CGST 2.5% | 25 | ||
| SGST 2.5% | 25 | ||
| TOTAL | 1050 |
Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 300 Profit
Make Sales Bill and Tax Computation Assuming he is a Normal Dealer
View answer
Sales Bill
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 6.5 | 1300 |
| CGST 2.5% | 32.5 | ||
| SGST 2.5% | 32.5 | ||
| TOTAL | 1365 |
Tax Payable Under Normal Scheme
| PARTICULARS | AMT | CGST | SGST | TOTAL |
| OUTPUT GST | 1300 | 32.5 | 32.5 | 65 |
| LESS INPUT GST | 1000 | 25 | 25 | 50 |
| GST PAYABLE | 7.5 | 7.5 | 15 |
He is a Composition Dealer and Tax Rate is 1%
| Particular | Amount |
| Actual Purchase Price | 1050.00 |
| Profit Required | 300.00 |
| Total Price | 1350.00 |
| GST Amt (1/99) | 13.64 |
| Total Sales Price | 1363.64 |
View answer
Sales Bill
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 6.818182 | 1363.64 |
| TOTAL | 1363.636 |
Tax Payable Under Composition Scheme
| PARTICULARS | AMT | RATE | GST |
| OUTPUT GST | 1363.64 | 1% | 13.64 |
| LESS INPUT GST | N/A | ||
| GST PAYABLE | 13.64 |
In Which Option less GST is payable
View answer
| Type of Dealer | GST Payable |
| Normal Dealer | 15 |
| Composition Dealer | 13.64 |
Less tax is payable under Composition Scheme
In Which Option Company earns more Profit
View answer
| PARTICULARS | Sales Amt | Purchase Amt | Profit |
| Normal Dealer | 1300 | 1000 | 300 |
| Composition Dealer | 1350 | 1050 | 300 |
Company earns Equal Profit in Both Option
Which Option Will buyer prefer if buyer is not Registered in GST?
View answer
In this Case,total amount including taxes is called Purchase Price
| PARTICULARS | Purchase Price |
| Normal Dealer | 1365 |
| Composition Dealer | 1363.636 |
Purchase from Composition Dealer is less expensive
Which Option Will buyer prefer if buyer is Registered in GST?
View answer
In this Case,Purchase Price excluding taxes is Purchase Price
| PARTICULARS | Purchase Price |
| Normal Dealer | 1300 |
| Composition Dealer | 1363.636 |
Hence,it is cheaper to buyer from Normal Dealer under Composition Scheme.
Q 3 Goods Purchased from A LTD
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 5 | 1000 |
| CGST 2.5% | 25 | ||
| SGST 2.5% | 25 | ||
| TOTAL | 1050 |
Suppose Company Wants 50 Kg to Sell it to B LTD at Rs 100 Profit
Make Sales Bill and Tax Computation Assuming he is a Normal Dealer
View answer
Sales Bill
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 50 | 7 | 350 |
| CGST 2.5% | 8.75 | ||
| SGST 2.5% | 8.75 | ||
| TOTAL | 367.5 |
Tax Payable Under Normal Scheme
| PARTICULARS | AMT | CGST | SGST | TOTAL |
| OUTPUT GST | 350 | 8.75 | 8.75 | 17.5 |
| LESS INPUT GST | 1000 | 25 | 25 | 50 |
| GST PAYABLE | -32.5 | |||
| GST CREDIT | 16.25 | 16.25 |
He is a Composition Dealer and Tax Rate is 1%
| Particular | Amount |
| Actual Purchase Price | 262.50 |
| Profit Required | 100.00 |
| Total Price | 362.50 |
| GST Amt (1/99) | 3.66 |
| Total Sales Price | 366.16 |
View answer
Sales Bill
| PARTICULARS | QTY | RATE | AMT |
| PLASTIC (In Kg) | 200 | 1.830808 | 366.16 |
| TOTAL | 366.1616 |
Tax Payable Under Composition Scheme
| PARTICULARS | AMT | RATE | GST |
| OUTPUT GST | 366.16 | 1% | 3.66 |
| LESS INPUT GST | N/A | ||
| GST PAYABLE | 3.66 |
In Which Option less GST is payable
View answer
| Type of Dealer | GST Payable |
| Normal Dealer | -32.5 |
| Composition Dealer | 3.66 |
Less tax is payable under Composition Scheme
In Which Option Company earns more Profit
View answer
| PARTICULARS | Sales Amt | Purchase Amt | Profit |
| Normal Dealer | 350 | 250 | 100 |
| Composition Dealer | 362.5 | 262.5 | 100 |
Company earns Equal Profit in Both Option
Which Option Will buyer prefer if buyer is not Registered in GST?
View answer
In this Case,total amount including taxes is called Purchase Price
| PARTICULARS | Purchase Price |
| Normal Dealer | 367.5 |
| Composition Dealer | 366.1616 |
Purchase from Composition Dealer is less expensive
Which Option Will buyer prefer if buyer is Registered in GST?
View answer
In this Case,Purchase Price excluding taxes is Purchase Price
| PARTICULARS | Purchase Price |
| Normal Dealer | 350 |
| Composition Dealer | 366.1616 |
Hence,it Is cheaper to buyer under Composition Scheme