Home › ICSE Class 10 › mathematics › Value Added Tax › Input Tax Credit (ITC) lets a dealer claim credi…
Input Tax Credit (ITC) lets a dealer claim credit for
AGST paid on inputs against GST collected on outputs
BIncome tax paid in advance on profits earned
CCustoms duty paid on imports of raw goods
DEducation cess paid on personal income tax
Answer & Solution
Correct answer: A. GST paid on inputs against GST collected on outputs
1. GST is a value-added tax at every supply stage.
2. Dealers pay GST on inputs and collect GST on outputs.
3. ITC allows offset of input tax against output tax.
4. So option A is correct.
_Source: Selina Concise Mathematics Class 10, Ch on Value Added Tax / GST (Mistral OCR'd PDF), section on input tax credit_
Related questions
Shopkeeper sells an article at Rs 4480 inclusive of 12% GST. Taxable value isTrader buys at Rs 10000 + 5% GST and sells at Rs 11000 + 5% GST in same state. Net GST paySelling price including 18% GST is Rs 2360. The price excluding GST isRestaurant bill Rs 1200 with 5% GST. Total payable isShopkeeper buys at Rs 4000 + 12% GST and sells within state at Rs 5000 + 12% GST. Net SGSTMarked price Rs 20000, discount 15%, then 18% GST. Amount payable isChennai dealer sells goods worth Rs 6000 to a Bengaluru dealer at 28% GST. IGST isTwo articles cost Rs 800 and Rs 1200 each at 5% GST. Total amount payable is