'Axe Trade', an unregistered supplier under GST, purchased material from Vye Ltd. which is registered supplier under GST. During the month of June…

'Axe Trade', an unregistered supplier under GST, purchased material from Vye Ltd. which is registered supplier under GST. During the month of June 2024, the Axe Traders has purchased a lot of 5,000 units on credit from Vye Ltd. The information related to the purchase are as follows: Listed price of one lot of 5,000 units 2,50,000 Trade discount @ 10% on listed price CGST and SGST (Credit available) 18% (9% CGST + 9% SGST) Cash discount @ 10% (Will be given only if payment is made within 30 days.) Toll Tax paid 5,000 Freight and Insurance 17,220 Demurrage paid to transporter 5,000 Commission and brokerage on purchases 10,000 Amount deposited for returnable containers 30,000 Amount of refund on returning the container 20,000 Other Expenses @2% of total cost A 20% shortage in material on receipt is expected considering the nature of the raw material. The payment to the supplier was made within 21 days of the purchases.