True Sai Cars Pvt. Ltd., Tamil Nadu is a dealer in cars. They import cars from abroad and sell it to customers in India. On 20th March, 2018, they have imported cars from Japan, as per following details: Value of cars (A

CS Executive · Tax Laws · PYQS · December 2018
True Sai Cars Pvt. Ltd., Tamil Nadu is a dealer in cars. They import cars from abroad and sell it to customers in India. On 20th March, 2018, they have imported cars from Japan, as per following details: Value of cars (Assessable value) ₹ 4,00,00,000 Customs duty 10% IGST 28% Compensation cess 20% True Sai Cars Pvt. Ltd., are eligible to claim input tax credit (ITC). Their output IGST liability, before taking credit for ITC is ₹ 130 lakh. Compute the net liability towards customs duty and IGST.

Answer & Explanation:

Computation of Net GST Liability Particulars Amount (₹) Cost of cars 4,00,00,000 Customs duty at 10% (A) 40,00,000 Social welfare Surcharge at 10% of (A) (B) 4,00,000 Total customs duty (C) 44,00,000 Total cost inclusive of duty (D) 4,44,00,000 IGST at 28% of (D) (E) 1,24,32,000 Compensation Cess at 20% of (D) (F) 88,80,000 Output GST 1,30,00,000 Less: ITC [IGST] 1,24,32,000 Balance GST liability 5,68,000 Note: ITC cannot be claimed of Compensation Cess.

Topics: GST Law

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