Patel of Surat, Gujarat supplied goods to Patil of Mumbai, Maharashtra for ₹1,20,000 (excluding GST) but after adding 30% profit margin (on cost). Patil is also a taxable person. IGST rate is 18%. The amount of input tax

CS Executive · Tax Laws and Practice · PYQS · December 2018
Patel of Surat, Gujarat supplied goods to Patil of Mumbai, Maharashtra for ₹1,20,000 (excluding GST) but after adding 30% profit margin (on cost). Patil is also a taxable person. IGST rate is 18%. The amount of input tax credit that can be availed and the maximum time limit for availing such input tax credit by Patil of Mumbai, Maharashtra as per CGST Act, 2017 is
(A) ₹28,080 and within 6 months from the date of issue of tax invoice
(B) ₹7,020 and within next quarter from the date of issue of tax invoice
(C) ₹21,600 and within 1 year from the date of issue of tax invoice
(D) None of the above

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: GST

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