A GST registered person purchased goods worth ₹1,18,000 (inclusive of GST @ 18%) and sold the same for ₹1,77,000 (inclusive of GST @ 18%). The net GST payable (output - input credit) is: MCQ with Answer and Explanation

Question

A GST registered person purchased goods worth ₹1,18,000 (inclusive of GST @ 18%) and sold the same for ₹1,77,000 (inclusive of GST @ 18%). The net GST payable (output - input credit) is:

A. ₹9,000

B. ₹10,800

C. ₹18,000

D. ₹27,000

Answer: Option A

Solution (By JKSSB Mock Tests)

Input GST = 1,18,000 * 18/118 = ₹18,000. Output GST = 1,77,000 * 18/118 = ₹27,000. Net payable = 27,000 - 18,000 = ₹9,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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The 'Set-off and Carry Forward' of losses is governed by:

A. Partnership Act

B. GST Act

C. Sections 70 to 80 of Income Tax Act

D. Companies Act

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Correct Answer: Option C

Explanation:
Provisions for set-off and carry forward of losses are contained in Sections 70-80.

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Question #2

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The 'Accounting for Taxes on Income' (AS 22) requires:

A. Only current tax

B. Deferred tax accounting for timing differences

C. Ignoring tax

D. Only MAT

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Correct Answer: Option B

Explanation:
AS 22 mandates recognition of deferred tax assets/liabilities for timing differences.

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Question #3

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The 'Alternate Minimum Tax' (AMT) applies to:

A. All companies

B. Foreign companies

C. Non-corporate taxpayers claiming deductions under certain sections

D. All individuals

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Correct Answer: Option C

Explanation:
AMT is for non-corporate assessees having adjusted total income exceeding ₹20 lakhs and claiming specified deductions.

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