CA Intermediate · Taxation · Exemptions from GST
Ramesh, a registered dealer in Kerala, supplies the following in a month: fresh vegetables ₹2,00,000 and unbranded, unpacked wheat flour ₹3,00,000 (both nil rated or exempt), and packaged branded biscuits ₹5,00,000 (taxable at 18%). What is the output GST on these supplies?
Output GST is ₹90,000. Fresh vegetables and unbranded, unpacked flour are exempt as per the facts, so only the packaged branded biscuits worth ₹5,00,000 are taxable at 18%. Taxing the total ₹10,00,000 would wrongly give ₹1,80,000.
- A₹90,000Correct
- B₹1,80,000
- C₹0
- D₹36,000
Explanation
Fresh vegetables are exempt and unbranded, unpacked flour as given is exempt, so only biscuits are taxable. 18% of ₹5,00,000 = ₹90,000. Taxing all supplies ₹10,00,000 at 18% would give ₹1,80,000, which wrongly ignores the exemptions.
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