Maharashtra Board Class 10 Maths Chapter 4 Financial Planning Set 4.2 Solutions

Question 1. 'Chetana Store' paid total GST of Rs. 1,00,500 at the time of purchase and collected GST Rs. 1,22,500 at the time of sale during 1st of July 2017 to 31st July 2017. Find the GST payable by Chetana Stores.
Answer: Output tax (Tax collected at the time of sale) = Rs. 1,22,500 Input tax (Tax paid at the time of purchase) = Rs. 1,00,500 ITC (Input Tax credit) = Rs. 1,00,500. GST payable = Output tax - ITC = 1,22,500 - 1,00,500 = Rs. 22,000 GST payable by Chetana stores is Rs. 22,000.
In simple words: To find the GST payable, subtract the Input Tax Credit (GST paid on purchases) from the Output Tax (GST collected on sales). The difference is the amount of GST the business needs to pay to the government.

🎯 Exam Tip: Remember that ITC is the GST already paid on purchases, which can be claimed against the GST collected on sales to reduce the final tax liability.

Question 2. 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: Solution: Output tax = Rs. 14,750 Input tax = Rs. 12,500 Therefore, ITC for Nazama = Rs. 12,500. Therefore, GST payable = Output tax - ITC = 14750 - 12500 = Rs. 2250 Therefore, Amount of ITC to be claimed is Rs. 12,500 and amount of GST payable is Rs. 2250.
In simple words: Nazama can claim the GST she paid on purchases (Rs. 12,500) as Input Tax Credit. Her net GST payable is the difference between the GST she collected on sales (Rs. 14,750) and her ITC, which is Rs. 2250.

🎯 Exam Tip: Clearly identify Input Tax, Output Tax, and ITC. The GST payable is always (Output Tax - ITC). If ITC is more than Output Tax, no GST is payable, and the excess ITC can be carried forward.

Question 3. Amir Enterprise purchased chocolate sauce bottles and paid GST of Rs. 3800. He sold those bottles to Akbari Bros, and collected GST of Rs. 4100. Mayank Food Corner purchased these bottles from Akbari Bros, and paid GST of Rs. 4500. Find the amount of GST payable at every stage of trading and hence find payable CGST and SGST.
Answer: Solution: For Amir Enterprise: Output tax = Rs. 4100 Input tax = Rs. 3800 ITC for Amir enterprise = Rs. 3800. Therefore, GST payable = Output tax - ITC = 4100 - 3800 = Rs. 300 For Akbari Bros.: Output tax = Rs. 4500 Input tax = Rs. 4100 ITC for Akbari Bros = Rs. 4100. GST payable = Output tax - ITC = 4500 - 4100 = Rs. 400 Therefore, Statement of GST payable at every stage of trading:

In simple words: Calculate the GST payable for each trader by subtracting their input GST from their output GST. CGST and SGST are typically half of the total GST payable, as GST is split equally between central and state governments.

🎯 Exam Tip: For intra-state transactions, CGST and SGST are always half of the total GST. Ensure you calculate the GST payable for each stage of the supply chain separately to get the total picture.

Question 4. Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for Rs. 24,500, and sold them to the local customers for Rs. 26,500. Find the GST to be paid at the rate of 5% and hence the CGST and UTGST to be paid for this transaction, (for Union Territories there is UTGST instead of SGST.)
Answer: Solution: For Malik Gas Agency: Output tax = 5% of 26500 = \( \frac{5}{100} \times 26500 \) = Rs. 1325 Input tax = 5% of 24500 = \( \frac{5}{100} \times 24500 \) = Rs. 1225 ITC for Malik Gas Agency = Rs. 1225. Therefore, GST payable = Output tax - ITC = 1325 - 1225 = Rs. 100 CGST = UTGST = \( \frac{\text{GST payable}}{2} = \frac{100}{2} \) Therefore, CGST = UTGST = Rs. 50 Therefore, The GST to be paid at the rate of 5% is Rs. 100 and hence, CGST and UTGST paid for the transaction is Rs. 50 each.
In simple words: First, calculate the output tax (GST on sales) and input tax (GST on purchases). Subtract input tax from output tax to get the GST payable. Since it's a Union Territory, the GST payable is split equally into CGST and UTGST.

🎯 Exam Tip: Pay close attention to the type of territory (State vs. Union Territory). In UTs, SGST is replaced by UTGST, but the principle of splitting GST equally remains the same.

Question 5. M/s Beauty Products paid 18% GST on cosmetics worth Rs. 6000 and sold to a customer for Rs. 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued?
Answer: Solution: Output tax = 18% of 10,000 = \( \frac{18}{100} \times 10,000 \) = Rs. 1800 Therefore, CGST = SGST = \( \frac{\text{Output tax}}{2} \) = \( \frac{1800}{2} \) = Rs. 900 Therefore, Amount of CGST and SGST shown in the tax invoice issued is Rs. 900 each.
In simple words: The question asks for CGST and SGST on the sale price. First, calculate the total GST collected (output tax) on the Rs. 10,000 sale. Then, divide this total GST by two to find the individual amounts for CGST and SGST.

🎯 Exam Tip: Read the question carefully to determine if it asks for GST payable (after ITC) or just the GST components on a particular transaction (like in a tax invoice). Here, it's about the invoice, so output tax is key.

Question 6. Prepare Business to Consumer (B2C) tax invoice using given information. Write the name of the supplier, address, state, Date, Invoice number, GSTIN etc. as per your choice.
Supplier: M/s ______ Address ______ State ______ Date ______ Invoice No. ______ GSTIN ______ Particulars
Rate of Mobile Battery Rs. 200 Rate of GST 12% HSN 8507 1 PC
Rate of Headphone Rs. 750 Rate of GST 18% HSN 8518 1 Pc
Answer: Solution: Rate of Mobile Battery = Rs. 200 CGST = 6% of 200 = \( \frac{6}{100} \times 200 \) = Rs. 12 Therefore, CGST = SGST = Rs. 12 Rate of Headphone = Rs. 750 COST = 9% of 750 = \( \frac{9}{100} \times 750 \) = Rs. 67.5 Therefore, CGST = SGST = Rs. 67.5

In simple words: To create a B2C invoice, you need to calculate the CGST and SGST for each item based on its rate and the applicable GST percentage. The invoice should clearly list the item, HSN code, quantity, price, taxable amount, and the calculated CGST and SGST.

🎯 Exam Tip: When preparing invoices, ensure all mandatory fields like GSTIN, HSN codes, and the split of GST into CGST and SGST are accurately represented. Double-check calculations for each item and the totals.

Question 7. Prepare Business to Business (B2B) Tax Invoice as per the details given below, name of the supplier, address, Date etc. as per your choice.
Supplier - Name, Address, State, GSTIN, Invoice No., Date
Recipient - Name, Address, State, GSTIN,
Items:
(i) Pencil boxes 100, HSN - 3924, Rate - Rs. 20, GST 12%
(ii) Jigsaw Puzzles 50, HSN 9503, Rate - Rs. 100 GST 12%.
Answer: Solution: Cost of 100 Pencil boxes = 20 × 100 = Rs. 2000 CGST = 6% of 2000 = \( \frac{6}{100} \times 2000 \) = Rs. 120 Therefore, CGST = SGST = Rs. 120 Cost of 50 Jigsaw Puzzles = 100 × 50 = Rs. 5000 CGST = 6% of 5000 = \( \frac{6}{100} \times 5000 \) = Rs. 300 CGST - SGST = Rs. 300

In simple words: A B2B tax invoice requires details of both the supplier and the recipient, including their GSTINs. Calculate the total value of each item, then split the GST into CGST and SGST based on the applicable rate, and sum up the totals to form the invoice.

🎯 Exam Tip: For B2B invoices, correctly filling in the supplier and recipient GSTINs is crucial. Remember to calculate GST for each item separately and then sum them up for the final invoice total.

Question 1. Suppose a manufacturer sold a cycle for a taxable value of Rs. 4000 to the wholesaler. Wholesaler sold it to the retailer for Rs. 4800 (taxable value). Retailer sold it to a customer for Rs. 5200 (taxable value). Rate of GST is 12%. Complete the following activity to find the payable CGST and SGST at each stage of trading.
Answer: Solution: Trading chain:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह आरेख एक व्यापारिक श्रृंखला को दर्शाता है जहाँ एक निर्माता एक थोक व्यापारी को, थोक व्यापारी एक खुदरा विक्रेता को, और खुदरा विक्रेता अंततः एक ग्राहक को वस्तु बेचता है। इसमें प्रत्येक चरण पर वस्तु के मूल्य (₹4000, ₹4800, ₹5200) और GST की दर (12%) को दर्शाया गया है, जिससे GST के प्रभाव को समझा जा सके। Output tax of manufacturer = 12% of 4000 = \( \frac{12}{100} \times 4000 = \text{Rs. } 480 \) GST payable by manufacturer = Rs. 480 Output tax of wholesaler = 12% of 4800 = \( \frac{12}{100} \times 4800 = \text{Rs. } 576 \) Therefore, GST payable by wholesaler = Output tax - Input tax = 576 - 480 = Rs. 96 Output tax of retailer = 12% of 5200 = \( \frac{12}{100} \times 5200 = \text{Rs. } 624 \) GST payable by Retailer = Output tax of retailer - ITC of retailer = 624 - 576 = Rs. 48 Statement of GST payable at each stage of trading:

In simple words: Calculate the GST paid by each intermediary (wholesaler, retailer) as their Input Tax Credit and the GST collected as their Output Tax. The GST payable at each stage is the difference. CGST and SGST are half of the total GST at each stage.

🎯 Exam Tip: This type of question tests your understanding of the GST chain. Ensure you correctly identify Input Tax Credit (ITC) for each stage and subtract it from the Output Tax to find the net GST payable.

Question 2. Suppose in the month of July the output tax of a trader is equal to the input tax, then what is his payable GST?
Answer: Here, output tax is same as input tax. Therefore, Trader payable GST will be zero.
In simple words: If a trader's output tax (GST collected on sales) is equal to their input tax (GST paid on purchases), then after claiming the Input Tax Credit, their net GST payable to the government will be zero.

🎯 Exam Tip: This is a conceptual question. Understand that GST payable is (Output Tax - Input Tax Credit). If these are equal, the net liability is zero, indicating no further tax is due for that period.

Question 3. Suppose in the month of July output tax of a trader is less than the input tax then how to compute his GST?
Answer: If output tax of a trader in a particular month is less than his input tax, then he won't be able to get entire credit for his input tax. In such a case his balance credit will be carried forward and adjusted against the subsequent transactions.
In simple words: If a trader has paid more GST on purchases than they collected on sales, they will have excess Input Tax Credit. This excess credit cannot be claimed as a refund immediately but is carried forward to offset future GST liabilities.

🎯 Exam Tip: Understand the concept of 'carry forward' of ITC. It's a key mechanism in GST, ensuring that excess input tax credit isn't lost but can be utilized in future periods.