Since the seller and the consumer are in the same state (West Bengal), the transaction is an Intra-State supply.

For an Intra-State supply, the GST is divided equally into Central GST (CGST) and State GST (SGST).

$$\text{Total GST Rate}=12\%$$ $$\text{SGST Rate}=\frac{12\%}{2}=6\%$$ $$\text{SGST Amount}=6\%\text{of}40,000$$ $$\text{SGST Amount}=\frac{6}{100}\times 40,000=\text{₹}2400$$

Since the seller is in Gujarat and the buyer is in Maharashtra, the transaction occurs between two different states. Therefore, it is an Inter-State supply.

For an Inter-State supply, Integrated GST (IGST) is levied by the Central Government.

$$\text{IGST Rate}=18\%$$ $$\text{IGST Amount}=18\%\text{of}1,50,000$$ $$\text{IGST Amount}=\frac{18}{100}\times 1,50,000=\text{₹}27,000$$

$$\text{Input GST (Paid on purchase)}=5\%\text{of}20,000$$ $$\text{Input GST}=\frac{5}{100}\times 20,000=\text{₹}1000$$

$$\text{Output GST (Collected on sale)}=5\%\text{of}30,000$$ $$\text{Output GST}=\frac{5}{100}\times 30,000=\text{₹}1500$$

$$\text{Net GST Payable}=\text{Output GST}-\text{Input GST}$$ $$\text{Net GST Payable}=1500-1000=\text{₹}500$$

1. Purchase Transaction (Inter-State):
$$\text{Input IGST}=18\%\text{of}1,00,000=\text{₹}18,000$$

2. Sale Transaction (Intra-State):
The sale is within Punjab, so GST is divided into CGST and SGST (9% each).
$$\text{Output CGST}=9\%\text{of}1,50,000=\text{₹}13,500$$ $$\text{Output SGST}=9\%\text{of}1,50,000=\text{₹}13,500$$

3. Setting off Input Tax Credit (ITC):
Rule: Input IGST must first be used to pay off Output IGST (which is 0 here). The remaining balance is used to pay Output CGST, and then any further remaining balance is used to pay Output SGST.
$$\text{Available Input IGST}=\text{₹}18,000$$ $$\text{Use Input IGST to pay Output CGST:}\text{₹}13,500$$ $$\text{Remaining Input IGST}=18,000-13,500=\text{₹}4,500$$ $$\text{Use remaining Input IGST to pay Output SGST.}$$ $$\text{Net SGST Payable in cash}=\text{Total Output SGST}-\text{Remaining Input IGST}$$ $$\text{Net SGST Payable}=13,500-4,500=\text{₹}9,000$$

(i) Original Price:
Let the original price (before GST) be $x$. $$\text{Original Price}+\text{GST}=\text{Marked Price}$$ $$x+18\%\text{of}x=59,000$$ $$x+0.18x=59,000$$ $$1.18x=59,000$$ $$x=\frac{59,000}{1.18}=50,000$$

(ii) GST Amount Charged:
$$\text{GST Amount}=\text{Marked Price}-\text{Original Price}$$ $$\text{GST}=59,000-50,000=\text{₹}9,000$$

(iii) CGST and SGST amounts:
For an intra-state transaction, GST is divided equally into CGST and SGST. $$\text{CGST}=\text{SGST}=\frac{9,000}{2}=\text{₹}4,500$$

$$\text{Gross Total Income}=\text{₹}6,50,000$$ $$\text{Standard Deduction (for Salaried)}=\text{₹}75,000$$ $$\text{Taxable Income}=6,50,000-75,000=\text{₹}5,75,000$$

Since the taxable income ($\text{₹}5,75,000$) is less than the threshold of $\text{₹}12,00,000$, he is eligible for a full tax rebate under Section 87A.

$$\text{Income from Salary}=\text{₹}7,80,000$$ $$\text{Less: Standard Deduction}=\text{₹}75,000$$ $$\text{Net Salary Income}=7,80,000-75,000=\text{₹}7,05,000$$

$$\text{Income from other sources (FD Interest)}=\text{₹}65,000$$ $$\text{Total Taxable Income}=7,05,000+65,000=\text{₹}7,70,000$$

Since the taxable income ($\text{₹}7,70,000$) is less than the threshold of $\text{₹}12,00,000$, she receives a full rebate under Section 87A.

Step 1: Calculate Total Taxable Income
$$\text{Gross Salary}=\text{₹}12,50,000$$ $$\text{Standard Deduction}=-\text{₹}75,000$$ $$\text{Net Salary}=\text{₹}11,75,000$$ $$\text{Other Income}=30,000+15,000=\text{₹}45,000$$ $$\text{Total Taxable Income}=11,75,000+45,000=\text{₹}12,20,000$$

Step 2: Calculate Income Tax (New Regime)
Since income > $\text{₹}12,00,000$, no direct rebate under 87A.

• Up to $\text{₹}4,00,000$: Nil
• $\text{₹}4,00,001$ to $\text{₹}8,00,000$ (5% of $4\text{Lakhs}$): $\text{₹}20,000$
• $\text{₹}8,00,001$ to $\text{₹}12,00,000$ (10% of $4\text{Lakhs}$): $\text{₹}40,000$
• $\text{₹}12,00,001$ to $\text{₹}12,20,000$ (15% of $20,000$): $\text{₹}3,000$

Step 3: Marginal Relief
Income is slightly above the threshold of $\text{₹}12,00,000$.
$$\text{Excess income above 12L}=12,20,000-12,00,000=\text{₹}20,000$$ Under marginal relief, tax payable is the lower of:
1. Normal tax calculated: $\text{₹}63,000$
2. Excess income above $\text{₹}12,00,000$: $\text{₹}20,000$
$$\text{Tax Payable after Marginal Relief}=\text{₹}20,000$$

Step 4: Add Health and Education Cess (4%)
$$\text{Cess}=4\%\text{of}20,000=\text{₹}800$$ $$\text{Total Tax Liability}=20,000+800=\text{₹}20,800$$

Step 1: Calculate Taxable Income
$$\text{Gross Salary}=\text{₹}58,00,000$$ $$\text{Standard Deduction}=-\text{₹}75,000$$ $$\text{Net Salary}=\text{₹}57,25,000$$ $$\text{Other Income}=2,50,000+80,000=\text{₹}3,30,000$$ $$\text{Total Taxable Income}=57,25,000+3,30,000=\text{₹}60,55,000$$

Step 2: Calculate Base Income Tax

• 0 to 4L: 0
• 4L to 8L (5% of 4L): $20,000$
• 8L to 12L (10% of 4L): $40,000$
• 12L to 16L (15% of 4L): $60,000$
• 16L to 20L (20% of 4L): $80,000$
• 20L to 24L (25% of 4L): $1,00,000$
• Above 24L (30% of $36,55,000$): $10,96,500$

Step 3: Add Surcharge
Since income exceeds $\text{₹}50,00,000$, a 10% surcharge applies on the tax. $$\text{Surcharge}=10\%\text{of}13,96,500=\text{₹}1,39,650$$ $$\text{Tax + Surcharge}=13,96,500+1,39,650=\text{₹}15,36,150$$

Step 4: Add Health and Education Cess
$$\text{Cess}=4\%\text{of}15,36,150=\text{₹}61,446$$ $$\text{Total Tax Liability}=15,36,150+61,446=\text{₹}15,97,596$$

Step 1: Calculate Taxable Income
$$\text{Gross Salary}=\text{₹}10,80,000$$ $$\text{Standard Deduction}=-\text{₹}75,000$$ $$\text{Net Salary}=\text{₹}10,05,000$$

Income from Other Sources:
• Bank deposits interest: $\text{₹}95,000$
• Gift from friend: $\text{₹}75,000$ (Taxable since it exceeds $\text{₹}50,000$)
• Gift from brother: $\text{₹}0$ (Gifts from relatives are fully exempt from tax)
$$\text{Total Other Income}=95,000+75,000=\text{₹}1,70,000$$

$$\text{Total Taxable Income}=10,05,000+1,70,000=\text{₹}11,75,000$$

Since the taxable income ($\text{₹}11,75,000$) is less than the threshold of $\text{₹}12,00,000$, he is eligible for a full tax rebate under Section 87A.

$$\text{Fixed Charge}=150\times 12=\text{₹}1800$$ $$\text{Energy Charge}=1250\times 9.50=\text{₹}11875$$ $$\text{Total Base Charges}=1800+11875=\text{₹}13675$$

$$\text{Surcharge}=5\%\text{of}13675=\text{₹}683.75$$ $$\text{Energy Tax}=8\%\text{of}13675=\text{₹}1094.00$$

$$\text{Total before GST}=13675+683.75+1094=\text{₹}15452.75$$

$$\text{GST}=5\%\text{of}15452.75=\text{₹}772.6375$$ $$\text{Final Bill}=15452.75+772.6375=\text{₹}16225.3875$$

$$\text{Units Consumed}=2565-1895=670\text{units}$$

Fixed Charges:
Since load > 2 kW, Fixed Charge = $75\times 4=\text{₹}300$

Energy Charges (Slab-wise):

• First 150 units: $150\times 4.50=\text{₹}675$
• Next 100 units (151-250): $100\times 5.25=\text{₹}525$
• Next 250 units (251-500): $250\times 6.30=\text{₹}1575$
• Remaining 170 units (501-670): $170\times 7.10=\text{₹}1207$

Additional Charges:
$$\text{Energy Duty}=670\times 0.10=\text{₹}67$$ $$\text{Arrears}=\text{₹}500$$ $$\text{Total Bill}=300+3982+67+500=\text{₹}4849$$

1. Water Consumption Charges (Slab-wise for 62 kL):

• 0-10 kL (10 units): $10\times 5.50=\text{₹}55$
• 11-25 kL (15 units): $15\times 11.00=\text{₹}165$
• 26-50 kL (25 units): $25\times 20.00=\text{₹}500$
• >50 kL (12 units): $12\times 32.00=\text{₹}384$

2. Sewerage & Fixed Charges:
$$\text{Sewerage}=65\%\text{of}1104=\text{₹}717.60$$ $$\text{Fixed Charge}=\text{₹}75$$ $$\text{Total Current Charge}=1104+717.60+75=\text{₹}1896.60$$

3. GST & Arrears:
$$\text{GST (5\% on current charges)}=5\%\text{of}1896.60=\text{₹}94.83$$ $$\text{Arrears}=\text{₹}580$$ $$\text{Late Payment Surcharge}=3\%\text{of}580=\text{₹}17.40$$

$$\text{Total Amount Payable}=1896.60+94.83+580+17.40=\text{₹}2588.83$$

1. Water Consumption Charges (Slab-wise for 58 m³):

• 0-15 m³ (15 units): $15\times 3.50=\text{₹}52.50$
• 15-25 m³ (10 units): $10\times 9.00=\text{₹}90.00$
• 25-50 m³ (25 units): $25\times 16.00=\text{₹}400.00$
• >50 m³ (8 units): $8\times 25.00=\text{₹}200.00$

2. Sewerage & Meter Rent:
$$\text{Sewerage Charge}=25\%\text{of}742.50=\text{₹}185.625$$ $$\text{Meter Rent}=\text{₹}40$$

$$\text{Total Water Bill}=742.50+185.625+40=\text{₹}968.125$$

Since the problem provides a single flat rate, we calculate the bill by directly multiplying the total consumption by the flat rate.

$$\text{Gas Consumption}=72\text{SCM}$$ $$\text{Rate}=\text{₹}28.55\text{per SCM}$$ $$\text{Total Bill}=72\times 28.55=\text{₹}2055.60$$

1. (b) Availability of deductions like 80C and HRA - The new tax regime offers lower tax rates by forgoing most deductions and exemptions available in the old regime.

2. (d) IGST only - Integrated GST is collected by the Centre on inter-state sales.

3. (b) ` 4500 - For intra-state, GST is split equally. CGST = 9% of 50,000 = 4,500.

4. (b) Progressive rates that increase with higher consumption

5. (d) Standard cubic metres (SCM)

6. (c) 4% - Applied on the base tax + surcharge.

7. (a) Harmonized System of Nomenclature

8. (b) Reduce tax liability by claiming credit for tax paid on purchases

The total consumption is 220 units. We break this into slabs:

• First slab (0 - 150 units): $150\times 3.50=\text{₹}525$
• Remaining units for the next slab: $220-150=70\text{units}$
• Second slab: $70\times 5.00=\text{₹}350$

$$\text{Total Energy Charge}=525+350=\text{₹}875$$

Under the new tax regime, a salaried employee is eligible for a Standard Deduction.

$$\text{Gross Annual Income}=\text{₹}9,50,000$$ $$\text{Less: Standard Deduction}=\text{₹}75,000$$ $$\text{Taxable Income}=9,50,000-75,000=\text{₹}8,75,000$$

(i) Input GST Paid (on purchases):
$$\text{Input GST}=12\%\text{of}50,000=\frac{12}{100}\times 50000=\text{₹}6,000$$

(ii) Output GST Collected (on sales):
$$\text{Output GST}=12\%\text{of}70,000=\frac{12}{100}\times 70000=\text{₹}8,400$$

(iii) Net GST Payable:
$$\text{Net GST}=\text{Output GST}-\text{Input GST}$$ $$\text{Net GST}=8400-6000=\text{₹}2,400$$

$$\text{Water Consumed}=\text{Current Reading}-\text{Previous Reading}$$ $$\text{Water Consumed}=278-245=33\text{kL}$$

Applying Slab Rates:

• First 20 kL: $20\times 12=\text{₹}240$
• Remaining 13 kL (33 - 20): $13\times 18=\text{₹}234$

1. Gas Consumption Charges:
Total consumption = 94 SCM.

• First 50 SCM: $50\times 31.50=\text{₹}1575$
• Remaining 44 SCM: $44\times 45.80=\text{₹}2015.20$

2. Network Tariff & Tax:
$$\text{Network Tariff}=12\%\text{of}3590.20=0.12\times 3590.20=\text{₹}430.824$$ $$\text{Total Base Amount}=3590.20+430.824=\text{₹}4021.024$$ $$\text{GST}=5\%\text{of}4021.024=\text{₹}201.0512$$ $$\text{Total Bill}=4021.024+201.0512=\text{₹}4222.0752$$

1. Water Consumption Charges (156 kL):

• 0-8 kL (8 units): $8\times 6=\text{₹}48$
• 9-25 kL (17 units): $17\times 12=\text{₹}204$
• 26-50 kL (25 units): $25\times 22=\text{₹}550$
• Above 50 kL (106 units): $106\times 38=\text{₹}4028$

2. Additional Charges:
$$\text{Sewerage}=30\%\text{of}4830=\text{₹}1449$$ $$\text{Total Bill}=\text{Water Charge}+\text{Sewerage}+\text{Meter Rent}+\text{Fixed Charge}$$ $$\text{Total Bill}=4830+1449+65+85=\text{₹}6429$$

1. Energy Charges:

• First 200 units: $200\times 3.00=\text{₹}600$
• Next 200 units: $200\times 4.50=\text{₹}900$
• Remaining 50 units (450 - 400): $50\times 7.00=\text{₹}350$

2. Electricity Duty & Total Bill:
$$\text{Electricity Duty}=5\%\text{of}1850=\text{₹}92.50$$ $$\text{Total Bill}=\text{Fixed Charge}+\text{Energy Charge}+\text{Duty}$$ $$\text{Total Bill}=100+1850+92.50=\text{₹}2042.50$$

1. Calculate Taxable Income:
$$\text{Gross Salary}=\text{₹}14,50,000$$ $$\text{Less: Standard Deduction}=\text{₹}75,000$$ $$\text{Net Salary}=\text{₹}13,75,000$$ $$\text{Other Income}=85,000+45,000=\text{₹}1,30,000$$ $$\text{Total Taxable Income}=13,75,000+1,30,000=\text{₹}15,05,000$$

2. Calculate Income Tax (New Slabs):
Since income > 12 Lakhs, there is no rebate.

• Up to $\text{₹}4,00,000$: Nil
• $\text{₹}4,00,001$ to $\text{₹}8,00,000$ (5% of $4\text{Lakhs}$): $\text{₹}20,000$
• $\text{₹}8,00,001$ to $\text{₹}12,00,000$ (10% of $4\text{Lakhs}$): $\text{₹}40,000$
• $\text{₹}12,00,001$ to $\text{₹}16,00,000$ is 15%. Thus, 15% of $(15,05,000-12,00,000)$ = 15% of $3,05,000$: $\text{₹}45,750$

3. Health and Education Cess:
$$\text{Cess}=4\%\text{of}1,05,750=\text{₹}4,230$$ $$\text{Total Tax Liability}=1,05,750+4230=\text{₹}1,09,980$$

Transaction A (Mumbai to Mumbai):
(i) Since it is within the same state, it is an Intra-State supply. CGST + SGST applies.
(ii) Total GST = 18%.
$$\text{CGST}=9\%\text{of}60,000=\text{₹}5,400$$ $$\text{SGST}=9\%\text{of}60,000=\text{₹}5,400$$ (iii) Total Invoice = $60000+5400+5400=\text{₹}70,800$

Transaction B (Mumbai to Delhi):
(i) Since it is across states, it is an Inter-State supply. IGST applies.
(ii) Total GST = 18%.
$$\text{IGST}=18\%\text{of}25,000=\text{₹}4,500$$ (iii) Total Invoice = $25000+4500=\text{₹}29,500$

1. Calculate Taxable Income:
$$\text{Gross Salary}=\text{₹}14,50,000$$ $$\text{Less: Standard Deduction}=\text{₹}75,000$$ $$\text{Net Salary}=\text{₹}13,75,000$$ $$\text{Other Income}=85,000+40,000=\text{₹}1,25,000$$ $$\text{Total Taxable Income}=13,75,000+1,25,000=\text{₹}15,00,000$$

2. Calculate Income Tax (New Slabs):
Since income > 12 Lakhs, there is no rebate.

• Up to $\text{₹}4,00,000$: Nil
• $\text{₹}4,00,001$ to $\text{₹}8,00,000$ (5% of 4 Lakhs): $\text{₹}20,000$
• $\text{₹}8,00,001$ to $\text{₹}12,00,000$ (10% of 4 Lakhs): $\text{₹}40,000$
• $\text{₹}12,00,001$ to $\text{₹}15,00,000$ (15% of 3 Lakhs): $\text{₹}45,000$

3. Health and Education Cess:
$$\text{Cess}=4\%\text{of}1,05,000=\text{₹}4,200$$ $$\text{Total Tax Liability}=1,05,000+4200=\text{₹}1,09,200$$

(i) Cost for the first 20 kL:
$$20\text{kL}\times \text{₹}6=\text{₹}120$$

(ii) Cost for the next slab (20-40 kL):
The slab is 20 kL (40 - 20). $$20\text{kL}\times \text{₹}10=\text{₹}200$$

(iii) Sewerage charge:
Remaining consumption > 40 kL = $45-40=5\text{kL}$. $$\text{Cost}=5\text{kL}\times \text{₹}15=\text{₹}75$$ $$\text{Total Volumetric Charge}=120+200+75=\text{₹}395$$ $$\text{Sewerage}=50\%\text{of}395=\text{₹}197.50$$

(iv) Total Bill:
$$\text{Total}=\text{Volumetric}+\text{Sewerage}+\text{Meter Rent}$$ $$\text{Total}=395+197.50+100=\text{₹}692.50$$

(i) Mr. Sharma's Taxable Income:
$$\text{Gross Salary}=16,80,000$$ $$\text{Less: Std Deduction}=75,000$$ $$\text{Net Salary}=16,05,000$$ $$\text{Taxable Income}=16,05,000+40,000=\text{₹}16,45,000$$

(ii) Mrs. Sharma's Gross Total Income:
$$\text{Income}=11,20,000+3,60,000+55,000=\text{₹}15,35,000$$

(iii) Mr. Sharma's Tax Liability:
Taxable Income = $16,45,000$

• 0-4L: Nil
• 4L-8L (5% of 4L): $20,000$
• 8L-12L (10% of 4L): $40,000$
• 12L-16L (15% of 4L): $60,000$
• 16L-16.45L (20% of 45K): $9,000$

(iv) Marginal Relief:
No, marginal relief applies only when the taxable income slightly crosses the threshold of $\text{₹}12,00,000$ (or $\text{₹}12.75\text{Lakhs}$ for salaried individuals). Both incomes are well above the threshold, so marginal relief is not applicable.

(i) Karnataka Sales (Intra-state):
GST = 18%, so CGST = 9% and SGST = 9%. $$\text{CGST}=9\%\text{of}8,00,000=\text{₹}72,000$$ $$\text{SGST}=9\%\text{of}8,00,000=\text{₹}72,000$$

(ii) Tamil Nadu Sales (Inter-state):
$$\text{Output IGST}=12\%\text{of}5,00,000=\text{₹}60,000$$

(iii) Purchases (Inter-state):
$$\text{Input IGST}=18\%\text{of}6,00,000=\text{₹}1,08,000$$

(iv) Net IGST Payable:
$$\text{Net IGST}=\text{Output IGST}-\text{Input IGST}$$ $$\text{Net IGST}=60,000-1,08,000=-48,000$$ Since Input is greater than Output, the net payable is Nil, and the company has an IGST credit of $\text{₹}48,000$.

22. (a) Both A and R are true and R is the correct explanation of A.
IGST is explicitly charged on inter-state sales. It is collected by the Centre and shared with the destination state.

23. (d) A is false but R is true.
Fixed charges in an electricity bill depend on the sanctioned load (kW), not on the number of units consumed. Variable charges, however, are proportional to consumption.

24. (d) A is false but R is true.
CGST credit cannot be utilized towards the payment of SGST liabilities. The Reason correctly states the utilization rule.

25. (d) A is false but R is true.
Income tax is a Direct Tax, paid directly to the government by the individual, and the burden cannot be shifted. The Reason correctly defines Indirect taxes.