Dinesh Chemicals paid Rupees 1,80,500 GST for purchase of some chemicals and collected Rupees 2,50,000 GST of at the time of sale. Find the amount of GST payable by Dinesh Chemicals. Complete the activity to get the answer.

Explanation

The tax collected at the time of sale is called output tax.
`:. Square` tax in this example is Rupees 2,50,000.
The tax paid at the time of purchase is called input tax.
`:.` input tax in this example is Rupees `square `
`:. ITC = ` Rupees 1,80,000
GST payable by Dinesh Chemicals = Output tax-ITC
`= `Rupees `square - `Rupees 1,80,000 = Rupees ` square`
Activity `:` The tax collected at the time of sale is called output tax.
`:.` Output tax in this example is Rupees 2,50,000
The tax paid at the time of purchase is called input tax.
`:. `input tax in this example is Rupees 1,80,000.
`:. ` ITC = Rupees 1,80,000
GST payable by Dinesh Chemicals = Output tax -ITC
= Rupees - Rupees 1,80,000 = Rupees 70,000