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CA Intermediate · Taxation · Charge of GST

Anand Ltd, Pune, a registered person, sold goods in a month at a taxable value of Rs 10,00,000 (rate 18%). It also received Rs 2,00,000 as interest on delayed payment from a customer for these supplies, which is not otherwise included in the invoice value. The goods are sold within Maharashtra. What is the total CGST plus SGST payable on these facts?

The tax payable is Rs 2,16,000. Interest for delayed payment is part of the value of supply, so the taxable value is Rs 12,00,000. At 18%, the tax is Rs 2,16,000, split equally between CGST and SGST because the supply is within Maharashtra.

  1. ARs 1,80,000
  2. BRs 2,16,000Correct
  3. CRs 1,98,000
  4. DRs 3,60,000

Explanation

Interest or late fee for delayed payment of consideration is included in the value of supply. Value = Rs 10,00,000 + Rs 2,00,000 = Rs 12,00,000. Tax at 18% = Rs 2,16,000 (CGST 1,08,000 + SGST 1,08,000). Rs 1,80,000 wrongly excludes the interest.

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