Answer :
To solve this problem, we need to understand the terms involved: GST outstanding refers to the amount of Goods and Services Tax that the business owes as of a particular date, which is Rs. 1,00,000 in this case. The problem states that 40% of this GST was paid before filing returns.
First, let's calculate the amount of GST paid:
- GST outstanding = Rs. 1,00,000
- Percentage of GST paid = 40%
To find the actual amount paid, we use the formula:
[tex]\text{GST Paid} = \text{GST Outstanding} \times \frac{\text{Percentage Paid}}{100} = 1,00,000 \times \frac{40}{100} = 40,000[/tex]
Now, to find the amount of GST that will be disallowed, we need to calculate the remaining amount after the 40% payment:
[tex]\text{GST Disallowed} = \text{GST Outstanding} - \text{GST Paid} = 1,00,000 - 40,000 = 60,000[/tex]
Therefore, the amount of GST disallowed is Rs. 60,000.
The correct option is B. 60000.
