GST [Goods and Services Tax]

The marked price of an article is ₹ 1500 and discount on it is 20%. How much money will be paid for this article, if rate of GST is 18% ?

1. ₹ 2124

2. ₹ 1416

3. ₹ 1770

4. ₹ 216

Answer

Given,

M.P. = ₹ 1500

Discount = 20%

Rate of G.S.T. = 18%

Discounted price = M.P. - Discount

= 1500 - $\dfrac{20}{100} \times 1500$

= 1500 - 300

= ₹ 1200.

G.S.T. on discounted price

= $\dfrac{G.S.T.}{100}$ % $\times \text{Discounted price} = \dfrac{18}{100} \times 1200$ = ₹ 216.

Money paid for article = Discounted price + G.S.T.

= ₹ 1200 + ₹ 216 = ₹ 1416.

Hence, Option 2 is the correct option.

The following bill shows the GST rates and the marked price of articles A and B.

The total amount to be paid for the above bill is :

1. ₹ 490

2. ₹ 290

3. ₹ 3290

4. ₹ 3510

Answer

For article A :

M.P. = ₹ 1000

Rate of G.S.T. = 5%

G.S.T. = $\dfrac{G.S.T.}{100}$ % $\times M.P. = \dfrac{5}{100} \times 1000$ = ₹ 50.

Amount = M.P. + G.S.T. = ₹ 1000 + ₹ 50 = ₹ 1050.

For article B :

M.P. = ₹ 2000

Rate of G.S.T. = 12%

G.S.T. = $\dfrac{G.S.T.}{100}$ % $\times M.P. = \dfrac{12}{100} \times 2000$ = ₹ 240.

Amount = M.P. + G.S.T. = ₹ 2000 + ₹ 240 = ₹ 2240.

Total bill for article A and B = ₹ 1050 + ₹ 2240 = ₹ 3290.

Hence, Option 3 is the correct option.

The GST of an article is reduced from 12% to 5% and due to this, the price paid for the article is cut down by ₹ 14. The original price of the article is:

1. ₹ 50

2. ₹ 98

3. ₹ 100

4. ₹ 200

Answer

Let the original price of the article (excluding GST) be x.

The price paid when the GST is 12% = x + 12% of x

= x + $\dfrac{12x}{100}$

= x + 0.12x

= 1.12x

The price paid when the GST is 5% = x + 5% of x

= x + $\dfrac{5x}{100}$

= x + 0.05x

= 1.05x

Given,

The difference in the price paid is ₹ 14.

1.12x - 1.05x = 14

0.07x = 14

x = $\dfrac{14}{0.07}$

x = 200.

The original price of the article is ₹ 200.

Hence, Option 4 is the correct option.

A dealer in Rajasthan supplies goods and services to a dealer in Punjab. If the rate of G.S.T. is 28%. then the rate of SGST is :

1. 28%

2. 14%

3. 0%

4. none of these

Answer

The transaction from Rajasthan to Punjab is an inter-state transaction.

In inter-state transaction :

SGST = Nil = 0%.

Hence, Option 3 is the correct option.

In case of inter-state sales of goods or services, if GST rate is 18%, then :

1. IGST = 9%

2. SGST = 9%

3. CGST = 9%

4. IGST = 18%

Answer

In case of inter-state sales of goods or services, if GST rate is 18%, then :

SGST = 0%

CGST = 0%

IGST = 18%

Hence, Option 4 is the correct option.

The marked price of an article is ₹ 1,375. If the CGST is charged at rate of 4%, then the price of the article including GST is :

1. ₹ 55

2. ₹ 110

3. ₹ 1,430

4. ₹ 1,485

Answer

Given,

Marked price of an article = ₹ 1,375

CGST Rate: 4%

CGST = 4% of 1,375

= $\dfrac{4}{100} \times 1375$

= ₹ 55

SGST = 4% of 1,375

= $\dfrac{4}{100} \times 1375$

= ₹ 55

Total GST of article = CGST + SGST = ₹ 55 + ₹ 55 = ₹ 110.

Total Price including GST of an article = Marked price + GST

= ₹ 1,375 + ₹ 110 = ₹ 1,485.

Hence, Option 4 is the correct option.

The marked price of an article is ₹ 2,000. The G.S.T. on the article is 12% and discount is ₹ 500, the total amount to be paid is :

1. ₹ 2800

2. ₹ 1680

3. ₹ 1370

4. ₹ 1740

Answer

Given,

M.P. = ₹ 2000

Discount = ₹ 500

Rate of G.S.T. = 12%

Discounted price = M.P. - Discount

= ₹ 2000 - ₹ 500

= ₹ 1500.

G.S.T. on discounted price

= $\dfrac{G.S.T.}{100}$ % $\times \text{Discounted price} = \dfrac{12}{100} \times 1500$ = ₹ 180.

Money paid for article = Discounted price + G.S.T.

= ₹ 1500 + ₹ 180 = ₹ 1680.

Hence, Option 2 is the correct option.

For the following transaction within Delhi, fill in the blanks to find the amount of bill :

MRP = ₹12,000

Discount = 30%

GST% = 18%

Discount = ...............

Discounted value = ...............

CGST = ...............

SGST = ...............

IGST = ...............

Amount of bill = ...............

Answer

Given,

M.R.P. = ₹12,000

Discount = 30%

∴ Discount = $\dfrac{30}{100} \times ₹12000$ = ₹ 3600.

Discounted value = ₹ 12000 - ₹ 3600 = ₹ 8400.

Given, GST% = 18%, so

CGST = 9% and SGST = 9%.

Since, transactions are within a particular state i.e., Delhi so, IGST = Nil.

∴ CGST = $\dfrac{9}{100} \times ₹ 8400$ = ₹ 756.

∴ SGST = $\dfrac{9}{100} \times ₹ 8400$ = ₹ 756.

Amount of bill = Discounted price + CGST + SGST = ₹ 8400 + ₹ 756 + ₹ 756 = ₹ 9912.

Hence, Discount = ₹ 3600, Discounted value = ₹ 8400, CGST = ₹ 756 and SGST = ₹ 756, IGST = ₹ 0, Amount of bill = ₹ 9912.

For the following transaction from Delhi to Jaipur, fill in the blanks to find the amount of bill :

MRP = ₹ 50,000

Discount = 20%

GST = 28%

Discount = ...............

Discounted value = ...............

CGST = ...............

SGST = ...............

IGST = ...............

Amount of bill = ...............

Answer

Given,

M.R.P. = ₹50,000

Discount = 20%

∴ Discount = $\dfrac{20}{100} \times ₹50000$ = ₹ 10000.

Discounted value = ₹ 50000 - ₹ 10000 = ₹ 40000.

Since transactions are inter state hence,

CGST = Nil and SGST = Nil.

IGST = 28%.

∴ IGST = $\dfrac{28}{100} \times ₹ 40000$ = ₹ 11200.

Amount of bill = Discounted price + IGST = ₹ 40000 + ₹ 11200 = ₹ 51200.

Hence, Discount = ₹ 10000, Discounted value = ₹ 40000, CGST = SGST = ₹ 0, IGST = ₹ 11200, Amount of bill = ₹ 51200.

Find the amount of bill for the following intra-state transaction of goods/services.

Answer

Discount value % = 100 % - Discount %

CGST = SGST.

Construct the table as under :

Hence, the total amount = ₹ 43420.

For the data given above in question no. 4, find the amount of bill for the inter-state transaction.

Answer

Discount value % = 100 % - Discount %

IGST = 2CGST%

Construct the table as under :

Hence, the total amount = ₹ 43420.

A dealer in Mumbai supplied some identical items at the following prices to a dealer in Delhi. Find the total amount of bill.

Answer

Discounted% = 100% - Discount%.

IGST% = 2SGST%

Hence, the amount of bill = ₹ 20897.80

M/s Unique traders, Delhi, provided the following services to M/s Geeta Trading Company in Agra (U.P.). Find the amount of bill :

Answer

Construct the table as under :

Hence, the amount of bill = ₹ 20607.20

Find the total amount of the following :

Note : 20% discount is allowed on an article if 80 or more such articles are purchased.

Answer

For article A,

Given, M.P. = ₹ 180

Quantity purchased = 120

Quantity 120 > 80, 20% discount is allowed

Discount on each article = $\dfrac{20}{100} \times 180$ = ₹ 36

Selling price = ₹ 180 - ₹ 36 = ₹ 144

Total value = ₹ 144 × 120 = ₹ 17,280

GST = 5% of ₹ 17,280

= $\dfrac{5}{100} \times 17,280 = ₹ 864$.

Total amount = Total value + GST

= ₹ 17,280 + ₹ 864 = ₹ 18,144.

For article B,

Given, M.P. = ₹ 120

Quantity purchased = 50

Quantity 50 < 80, No discount allowed.

Total value = ₹ 120 × 50 = ₹ 6,000

GST = 12% of ₹ 6,000

= $\dfrac{12}{100} \times 6,000 = ₹ 720$.

Total amount = Total value + GST

= ₹ 6,000 + ₹ 720 = ₹ 6,720.

Final bill = ₹ 18,144 + ₹ 6,720 = ₹ 24,864

Hence, the amount of bill = ₹ 24,864.

The tax invoice of a telecom service in Surat shows cost of services provided by it as ₹ 750. If the GST rate is 18%, find the amount of the bill.

Answer

Cost of services = ₹ 750,

GST = 18%,

GST = $\dfrac{18}{100} \times 750$ = ₹ 135.

Amount = ₹ 750 + ₹ 135 = ₹ 885.

Hence, the amount of bill = ₹ 885.

Ms. Pratima took Health Insurance Policy for her family and paid ₹ 900 as SGST. Find the total annual premium, including GST, paid by her for this policy. The rate of GST being 18%.

Answer

Given, GST = 18%,

∴ SGST = 9%.

Let annual premium be ₹ x.

Given, SGST = ₹ 900.

$\therefore 900 = \dfrac{9}{100} \times x \\[1em] \Rightarrow x = \dfrac{900 \times 100}{9} \\[1em] \Rightarrow x = 10000.$

We know that, CGST = SGST.

∴ Amount = Premium + CGST + SGST = ₹ 10000 + ₹ 900 + ₹ 900 = ₹ 11800.

Hence, the annual premium including GST = ₹ 11800.

Mr. Malik went on a tour of Goa. He took a room in a hotel for two days at the rate of ₹ 5000 per day. On the same day, his friend John also joined him. The hotel provided an extra bed charging ₹ 1000 per day for the bed. How much GST, at the rate of 28% is charged by the hotel in the bill to Mr. Malik, for both the days?

Answer

Total charge of room for one day = ₹ 5000 + ₹ 1000 = ₹ 6000.

Charge for 2 days = 2 × 6000 = ₹ 12000.

GST = 28%,

∴ GST = $\dfrac{28}{100} \times 12000$ = ₹ 3360.

Hence, the amount of GST charged in the bill = ₹ 3360.

Under G.S.T. 'value addition' refers to :

1. cost plus tax plus profit

2. cost plus tax

3. expense plus profit

4. tax plus profit

Answer

Under G.S.T. 'value addition' refers to expense plus profit.

Hence, Option 3 is the correct option.

If the rate of GST is 18%, the IGST for an inter-state sale is:

1. 9%

2. 18%

3. 6%

4. 12%

Answer

Option 2 is the correct option.

Reason

In the case of inter-state sale, rate of GST = rate of IGST

⇒ IGST = 18%

Hence, the IGST for an inter-state sale = 18%.

If a dealer supplies goods worth ₹ 3,000 to another local dealer with 28% GST, then the tax levied under CGST is:

1. ₹ 270

2. ₹ 540

3. ₹ 840

4. ₹ 420

Answer

Option 4 is the correct option.

Reason

Cost of goods = ₹ 3,000

GST rate = 28%

Since, it is a local (intra-state) supply, the GST is equally divided between CGST and SGST.

CSGT = SGST = $\dfrac{GST}{2} = \dfrac{28}{2}$% = 14%

The tax levied under CGST = 14% of ₹ 3,000

= $\dfrac{14}{100} \times 3,000$

= 14 x 30 = ₹ 420

Hence, the tax levied under CGST = ₹ 420.

For a registered dealer, if the input tax is ₹ x and output tax is ₹ y, then the tax liability on the dealer is:

1. ₹ x

2. ₹ (x - y)

3. ₹(y - x)

4. ₹ y

Answer

Option 3 is the correct option.

Reason

Given, input tax = ₹ x

output tax = ₹ y

Tax liability = Output tax - Input tax

= ₹ (y - x)

Hence, the tax liability on the dealer is ₹ (y - x).

John sells goods worth ₹ 2,000 to Manish belonging to the same state. John gives a discount of 20% and charges GST = 5%. Then John gets :

1. ₹ 20

2. ₹ 850

3. ₹ 1,680

4. ₹ 2,250

Answer

Option 3 is the correct option.

Reason

Given, Marked price of goods = ₹ 2,000

Discount = 20%

Discount(₹) on good = $\dfrac{20}{100} \times 2,000 = ₹ 400$

Discounted value = Marked price - Discount price

= 2,000 - 400

= ₹ 1,600

GST = 5% of 1600

= $\dfrac{5}{100}$ × 1,600 = ₹ 80.

Total amount John Gets = 1,600 + 80 = ₹ 1,680

Hence, the amount John Gets = ₹ 1,680.

Fill in the blanks :

When the goods/services are sold for ₹ 15,000 under intra-state transaction from station A to station B and the rate of GST is 12%.

As per GST system

(a) S.P. (excluding GST) at station A = ..........

(b) CGST = ................

     SGST = ................

(c) C.P. (excluding GST) at station B = ............

(d) If profit = ₹ 5,000

S.P. at station B = .............

Now the same goods/services are moved under inter state transaction from station B to station C and the rate of tax is 12%.

(e) GST = ..........

(f) C.P. (excluding GST) at station C = ..........

Answer

When the goods/services are sold for ₹ 15000 under intra-state transaction from station A to station B and the rate of GST is 12%.

As per GST system

(a) S.P. (excluding GST) at station A = ₹ 15000

(b) CGST = 6% of 15000 = $\dfrac{6}{100} \times 15000$ = ₹ 900

     SGST = 6% of 15000 = $\dfrac{6}{100} \times 15000$ = ₹ 900.

(c) C.P. (excluding GST) at station B = ₹ 15000

(d) If profit = ₹ 5000

S.P. at station B = ₹ 15000 + ₹ 5000 = ₹ 20000.

(e) GST = 12% of ₹ 20000 = $\dfrac{12}{100} \times 20000$ = ₹ 2400.

(f) C.P. (excluding GST) at station C = ₹ 20000.

Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for ₹ 20,000 and then Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is ₹ 5,000, find :

The net GST payable by the dealer at Kanpur (GST received - GST paid).

Answer

When the goods are sold from Agra to Kanpur it is an intra-state transaction.

For dealer in Agra

S.P. = ₹ 20,000

CGST = 9% of ₹ 20,000 = ₹ 1800

SGST = CGST = ₹ 1800.

When the product is sold from Kanpur to Jaipur it is an intra-state transaction.

For dealer in Kanpur

Input-tax credit (ITC) = ₹ 1800 + ₹ 1800 = ₹ 3600.

C.P. (excluding GST) = ₹ 20000 + ₹ 5000 = ₹ 25000.

IGST = 18% of ₹ 25000 = ₹ 4500.

∴ Net GST payable at Kanpur = Output GST - Input-tax credit = ₹ 4500 - ₹ 3600 = ₹ 900.

Hence, the net GST payable at Kanpur is ₹ 900.

A is a dealer in Banaras (U.P.). He supplies goods/services, worth ₹ 8000 to a dealer B in Agra (U.P.) Dealer B in turn, supplies the same goods/services to a dealer C in Patna (Bihar) at a profit of ₹ 1200. Find the input and output taxes for the dealer C under GST system; if the rate of GST is 18% and C does not sells his goods/services further.

Answer

According to question,

For dealer A (intra-state transaction)

S.P. = ₹ 8000

For dealer B

C.P. = ₹ 8000

CGST = 9% of ₹ 8000 = ₹ 720

SGST = 9% of ₹ 8000 = ₹ 720

Given, Profit = ₹ 1200

S.P. = ₹ 8000 + ₹ 1200 = ₹ 9200.

For dealer C (inter-state transaction)

C.P. = ₹ 9200

IGST = 18% of ₹ 9200 = $\dfrac{18}{100} \times 9200$ = ₹ 1656.

∴ Input tax = ₹ 1656.

As the dealer in Patna does not sell product,

∴ Output tax = ₹ 0.

Hence, the input tax = ₹ 1656 and output tax = ₹ 0.

A is a dealer in Meerut (UP). He supplies goods/services, worth ₹ 15000 to dealer B in Ratlam (MP). Dealer B, in turn, supplies the same goods/services to dealer C in Jabalpur (MP) at a profit of ₹ 3000. If the rate of tax (under the GST system) is 18%, find :

(i) the cost (excluding GST) of goods/services to the dealer C in Jabalpur (assuming that the dealer C does not sell the goods/services further).

(ii) net tax payable by dealer B.

Answer

For A (case of inter-state transaction)

S.P. in Meerut = ₹ 15000

IGST = 18% of 15000 = $\dfrac{18}{100} \times ₹ 15000$ = ₹ 2700.

Input tax for B = ₹ 2700.

Given profit on selling to C = ₹ 3000

∴ S.P. in Ratlam = ₹ 15000 + ₹ 3000 = ₹ 18000.

For C (case of intra-state transaction)

C.P. = ₹ 18000

CGST = 9% of ₹ 18000 = $\dfrac{9}{100} \times 18000$ = ₹ 1620

SGST = CGST = ₹ 1620.

(i) Cost for dealer C = S.P. for dealer in Ratlam + GST = ₹ 18000 + ₹ 1620 + ₹ 1620 = ₹ 21240.

Hence, the cost of goods/services for dealer C = ₹ 21240.

(ii) Output tax for B = CGST + SGST = ₹ 1620 + ₹ 1620 = ₹ 3240

∴ Net GST payable by dealer B = Output tax - Input tax = ₹ 3240 - ₹ 2700 = ₹ 540.

Hence, the net tax payable by dealer = ₹ 540.

A dealer X in Hapur (UP) supplies goods/services, worth ₹ 50,000 to some other dealer Y in the same city. Now the dealer Y supplies the same goods/services to dealer Z in Calcutta at a profit of ₹ 20,000. Find :

(i) Output and input taxes for the dealer Y

(ii) Net GST payable by dealer Y.

[The rate of GST at each stage is 28%]

Answer

According to question we have,

For dealer X (intra-state transaction)

SP = ₹ 50000

For dealer Y (intra-state transaction)

CP = ₹ 50000

CGST = 14% of 50000 = $\dfrac{14}{100} \times 50000$ = ₹ 7000

SGST = 14% of 50000 = $\dfrac{14}{100} \times 50000$ = ₹ 7000

Input tax = ₹ 7000 + ₹ 7000 = ₹ 14000

Profit of dealer Y = ₹ 20000

S.P. of dealer Y = ₹ 50000 + ₹ 20000 = ₹ 70000.

For dealer Z (inter-state transaction)

CP = ₹ 70000

IGST = 28% of ₹ 70000 = $\dfrac{28}{100} \times 70000$ = ₹ 19600

(i) Output tax for Y = Input tax for Z = ₹ 19600.

Input tax of dealer Y = ₹ 14000.

Hence, for dealer Y, Output tax = ₹ 19600 and Input tax = ₹ 14000.

(ii) Net GST payable by dealer Y = Output tax - Input tax

= ₹ 19600 - ₹ 14000 = ₹ 5600.

Hence, net GST payable for Y = ₹ 5600.

Consultancy services, worth ₹ 50000 are transferred from Delhi to Kolkata at the rate of GST 18% and then Kolkata to Nainital (with profit = ₹ 20000) at the same rate of GST. Find the output tax at

(i) Delhi

(ii) Kolkata

(iii) Nainital

Answer

(i) Delhi to Calcutta (Transaction is an inter state transaction)

IGST = 18% of ₹ 50000 = $\dfrac{18}{100} \times 50000$ = ₹ 9000.

Hence, the output tax in Delhi = ₹ 9000.

(ii) For Calcutta,

C.P. = ₹ 50000

Profit in sending to Nainital = ₹ 20000

S.P. = ₹ 50000 + ₹ 20000 = ₹ 70000.

Transaction is an inter state transaction

IGST = $\dfrac{18}{100} \times 70000$ = ₹ 12600

Hence, the output tax in Calcutta = ₹ 12600.

(iii) Since, the dealer in Nainital does transfer the services further

Hence, output tax = ₹ 0

Hence, the output tax in Nainital = ₹ 0.

For a trader, marked price of a refrigerator = ₹ 15,680 exclusive of GST, (GST is 12%). Gagan, a customer for this refrigerator, asks the trader to reduce the marked price of the refrigerator to such an extent that its reduced price plus GST on it is equal to marked price of the refrigerator. Find the required reduction.

Answer

Let the new M.P. of refrigerator be ₹ x.

According to question,

$\Rightarrow x + 12$

Reduction in price = ₹ 15680 - ₹ 14000 = ₹ 1680.

Hence, the required reduction in price = ₹ 1680.

A retailer purchased an item for ₹ 8,000 from a wholesaler and sells to a customer at 15% profit. The sales are intra-state and the rate of GST is 10%. The amount of GST paid by the customer is :

1. ₹ 460

2. ₹ 920

3. ₹ 1840

4. ₹ 92

Answer

Given,

Cost price for retailer = ₹ 8000

Profit % = 15%

Selling price for retailer = C.P. + Profit

= ₹ 8000 + ₹ $\dfrac{15}{100} \times 8000$

= ₹ 8000 + ₹ 1200

= ₹ 9200.

For intra -state transaction :

S.G.S.T. = C.G.S.T. % = $\dfrac{G.S.T.}{2} = \dfrac{10}{2}$ = 5%

S.G.S.T. = C.G.S.T. = $\dfrac{5}{100} \times S.P. = \dfrac{5}{100} \times 9200$ = ₹ 460.

Total G.S.T. paid by customer = S.G.S.T. + C.G.S.T. = ₹ 460 + ₹ 460 = ₹ 920.

Hence, Option 2 is the correct option.

The cost of certain services is ₹ 10,000, excluding GST = ₹ 1800. The rate of GST is :

1. 12%

2. 5%

3. 18%

4. 28%

Answer

Given,

C.P. of articles = ₹ 10,000

We know that,

GST = $\dfrac{\text{Rate of G.S.T.}}{100} \times C.P.$

Substituting values we get :

$\Rightarrow 1800 = \dfrac{\text{Rate of G.S.T.}}{100} \times 10000 \\[1em] \Rightarrow \text{Rate of G.S.T.} = \dfrac{1800 \times 100}{10000} \\[1em] \Rightarrow \text{Rate of G.S.T.} = 18$

Hence, Option 3 is the correct option.

Manu purchases some goods for ₹ 2000 and sells them for ₹ 2500. If the rate of GST is 18%, the tax liability on Manu is :

1. ₹ 360

2. ₹ 450

3. ₹ 90

4. ₹ 900

Answer

Given,

For Manu :

C.P. = ₹ 2000

S.P. = ₹ 2500

Tax paid by Manu = $\dfrac{G.S.T.}{100} \times C.P. = \dfrac{18}{100} \times 2000$ = ₹ 360.

Tax charged by Manu = $\dfrac{G.S.T.}{100} \times S.P. = \dfrac{18}{100} \times 2500$ = ₹ 450.

Tax liability on Manu = Tax charged - Tax paid = ₹ 450 - ₹ 360 = ₹ 90.

Hence, Option 3 is the correct option.

The SGST paid by a customer to the shopkeeper for an article which is priced at ₹ 500 is ₹ 15. The rate of GST charged is :

1. 1.5%

2. 3%

3. 5%

4. 6%

Answer

Price of an article = ₹ 500

SGST paid = ₹ 15

SGST (%) = $\dfrac{15}{500} \times 100$ = 3%

CGST (%) = SGST (%) = 3%.

Total GST rate = CGST rate + SGST rate = 3% + 3% = 6%

The rate of GST charged is 6%.

Hence, Option 4 is the correct option.

Reena buys a certain goods for ₹ 4000 and sells them to Ashok at a profit of ₹ 500. If Ashok des not sell the goods further and rate of GST = 5%, the output GST for Ashok is :

1. ₹ 225

2. ₹ 175

3. ₹ 25

4. ₹ 00

Answer

Cost price for Reena = ₹ 4000

Input G.S.T. for Reena = $\dfrac{G.S.T.}{100}$ % $\times$ C.P. for Reena

= $\dfrac{5}{100} \times 4000$ = ₹ 200.

Profit made by Reena on selling = ₹ 500

Cost price for Ashok = S.P. for Reena = ₹ 4000 + ₹ 500 = ₹ 4500.

Output G.S.T. means GST charged on the sales made by a dealer.

Output G.S.T. for Reena = $\dfrac{G.S.T.}{100}$ % $\times$ S.P. for Reena

= $\dfrac{5}{100} \times 4500$ = ₹ 225.

This ₹225 is output GST for Reena and input GST for Ashok.

The question says that Ashok does not sell the goods further

Since Ashok makes no sale, he does not charge any GST to anyone.
So, his output GST = ₹0.

Hence, Option 4 is the correct option.

The marked price of an article is ₹ 1,000, which is available at a discount of 20% with GST rate 12%.

Assertion (A): The GST on the sale = 12% of discounted value.

Reason (R): The GST on the transaction = (100 - 20 + 12)% of marked price.

1. A is true, R is false.

2. A is false, R is true.

3. Both A and R are true and R is the correct reason for A.

4. Both A and R are true and R is the incorrect reason for A.

Answer

Option 1 is the correct option.

Reason

Given, MP = ₹ 1,000

Discount = 20%

GST = 12%

Discount = 20% of ₹ 1,000

= $\dfrac{20}{100}$ x 1,000 = ₹ 200

Price after discount = ₹ 1,000 - 200 = ₹ 800

GST on the discounted price = 12% of price after discount

= $\dfrac{12}{100}$ x 800 = ₹ 96

∴ Assertion (A) is true.

The GST on the transaction = (100 - 20 + 12)% of marked price

= 92% of marked price

= $\dfrac{92}{100}$ x 1,000 = ₹ 920

As, ₹ 96 ≠ ₹ 920

∴ Reason (R) is false.

Hence, A is true, R is false.

For a trader X, GST paid is ₹ 600 and GST collected is ₹ 720.

Assertion (A): GST paid by the trader to the Government is ₹ 120.

Reason (R): GST deposited with the Government
= Output Tax - Input tax
= GST collected - GST paid

1. A is true, R is false.

2. A is false, R is true.

3. Both A and R are true and R is the correct reason for A.

4. Both A and R are true and R is incorrect reason for A.

Answer

Option 3 is the correct option.

Reason

Given,

Output tax = ₹720

Input tax = ₹600

Tax liability = Output tax - Input tax

= ₹ (720 - 600) = ₹ 120

Hence, Both A and R are true and R is the correct reason for A.

The invoice value of a toy is ₹ 4,220 and rate of GST is 5%.

Statement (1): GST paid = 5% of ₹ 4,220

Statement (2): The taxable value of the toy = $\dfrac{100}{105}$ × ₹ 4,220

1. Both the statements are true.

2. Both the statements are false.

3. Statement 1 is true, and statement 2 is false.

4. Statement 1 is false, and statement 2 is true.

Answer

Option 4 is the correct option.

Reason

Given,

Invoice value = ₹ 4,220

GST = 5%

According to statement 1, GST paid = 5% of ₹ 4,220

Invoice value includes the GST. Therefore, GST is not calculated on ₹ 4,220 directly.

So, statement 1 is false.

According to statement 2, the taxable value of the toy = $\dfrac{100}{105}$ × ₹ 4,220

Let the taxable value of the toy be $x$.

Since, invoice value includes the GST,

Invoice value = $x$ + 5% of $x$

= $x + \dfrac{5}{100} \times x$

= $x + 0.05x$

= $1.05x$

Given, Invoice Value = ₹ 4,220, we have,

$1.05x = 4220 \\[1em] x = \dfrac{1}{1.05} \times 4220 \\[1em] x = \dfrac{100}{105} \times 4220$

∴ Taxable value of the toy = $\dfrac{100}{105} \times ₹ 4220$

∴ Statement 2 is true.

Hence, statement 1 is false, and statement 2 is true.

A dealer in Indore (M.P.) sells goods worth ₹ 75,000 to a dealer in Jaipur (Rajasthan) and the rate of GST is 18%.

Statement (1): The CGST share of Rajasthan is 9% of ₹ 75,000.

Statement (2): In inter-state transaction, GST is 18% of the whole transaction.

1. Both the statements are true.

2. Both the statements are false.

3. Statement 1 is true, and statement 2 is false.

4. Statement 1 is false, and statement 2 is true.

Answer

Statement (1) is false because in interstate transaction the rate of CGST = Nil.

Statement (2) is true because it is given that in an inter-state transaction, the GST rate is 18% of the whole transaction value.

Hence, Option 4 is the correct option.

Mrs. Sharma bought the following articles from a departmental store.

Find the :

(i) total GST paid

(ii) total billing amount including GST.

Answer

By formula,

Discount = $\dfrac{\text{Discount}}{100}$ % $\times M.P.$

Discounted price = M.P. - Discount

GST = $\dfrac{\text{Rate of GST}}{100} \times$ Discounted price

(i) From table,

Total G.S.T. = ₹ 36.96 + ₹ 36 + ₹ 33.21 = ₹ 106.17

Hence, total GST paid = ₹ 106.17

(ii) From table,

Total discounted price = ₹ 308 + ₹ 720 + ₹ 184.5 = 1212.50

Total bill = Total Discounted price + Total GST = ₹ 1212.50 + ₹ 106.17 = ₹ 1318.67

Hence, total bill = ₹ 1318.67

Ashraf went to see a movie. He wanted to purchase a movie ticket for ₹ 80. As the ticket for ₹ 80 was not available, he purchased a ticket for ₹ 120 of upper class. How much extra GST did he pay for the ticket? (GST for a ticket below ₹ 100 is 18% and for a ticket above ₹ 100 is 28%).

Answer

GST on ₹ 80 ticket = $\dfrac{18}{100} \times 80$ = ₹ 14.40

GST on ₹ 120 ticket = $\dfrac{28}{100} \times 120$ = ₹ 33.60

Difference between GST = ₹ 33.60 - ₹ 14.40 = ₹ 19.20

Hence Ashraf paid ₹ 19.20 extra GST for the ticket.

A shopkeeper sells an AC to Ms. Alka for ₹ 31200 including GST at the rate of 28%. If the shopkeeper and Ms. Alka both are from the same city, find for the shopkeeper :

(i) total amount of GST

(ii) taxable value of A.C.

(iii) amount of CGST

(iv) amount of SGST

Answer

(i) Let S.P. of A.C. be x.

According to question,

$\Rightarrow x + \dfrac{28}{100} \times x = 31200 \\[1em] \Rightarrow \dfrac{100x + 28x}{100} = 31200 \\[1em] \Rightarrow \dfrac{128x}{100} = 31200 \\[1em] \Rightarrow x = \dfrac{31200 \times 100}{128} \\[1em] \Rightarrow x = ₹ 24375.$

GST = S.P.(including GST) - S.P.(excluding GST) = ₹ 31200 - ₹ 24375 = ₹ 6825.

Hence, the total amount of GST = ₹ 6825.

(ii) From part (i) we get,

The taxable value of A.C. = ₹ 24375.

(iii) Given, GST = 28%.

∴ CGST = 14%.

$\Rightarrow \dfrac{14}{100} \times 24375 = ₹ 3412.50$

Hence, CGST = ₹ 3412.50

(iv) Given, GST = 28%.

∴ SGST = 14%.

$\Rightarrow \dfrac{14}{100} \times 24375 = ₹ 3412.50$

Hence, SGST = ₹ 3412.50

A wholesaler dealing in electric goods, sells an article at its printed price of ₹ 45,000 to a dealer at 10% discount. The dealer sells the same article to a consumer at a discount of 4% on its printed price. If the sales are intra-state and the rate of GST is 18%, find :

(i) the amount of tax, under GST, paid by the dealer to the central and state governments.

(ii) the amount of tax, under GST, received by central and state governments.

(iii) the total amount, inclusive of tax, paid by the consumer for the article.

Answer

For wholesaler :

Marked price = ₹ 45000

Discount = 10% = $\dfrac{10}{100} \times 45000$ = ₹ 4500

S.P. = M.P. - Discount = ₹ 45000 - ₹ 4500 = ₹ 40500.

For dealer :

C.P. = ₹ 40500

Discount = 4% = $\dfrac{4}{100} \times 45000$ = ₹ 1800

S.P. = M.P. - Discount = ₹ 45000 - ₹ 1800 = 43200.

(i) Tax paid by dealer under GST = Output tax - Input tax

= Tax on S.P. - Tax on C.P.

= 18% of 43200 - 18% of 40500

= $\dfrac{18}{100} \times 43200 - \dfrac{18}{100} \times 40500$

= ₹ (7776 - 7290)

= ₹ 486.

CGST = SGST = $\dfrac{\text{GST}}{2}$ = $\dfrac{486}{2}$ = ₹ 243

Hence, the tax paid by dealer to central government = ₹ 243 and to state government = ₹ 243.

(ii) GST paid by dealer = 18% of ₹ 43200 = $\dfrac{18}{100} \times 43200$ = ₹ 7776

∴ GST received by government = ₹ 7776

CGST = SGST = $\dfrac{\text{GST}}{2}$ = $\dfrac{7776}{2}$ = ₹ 3,888

Hence, amount of tax received by central government = ₹ 3,888 and by state government = ₹ 3,888.

(iii) For consumer :

C.P. = S.P. for dealer = ₹ 43200

GST paid by the consumer = 18% of 43200 = ₹ 7776

∴ Total amount paid by consumer = ₹ 43200 + ₹ 7776 = ₹ 50976.

Hence, the total amount paid by consumer = ₹ 50976.

A retailer buys a T.V. from a manufacturer for ₹ 25000. He marks the price of the T.V. 20% above his cost price and sells it to a consumer at 10% discount on the, marked price. If the sales are inter-state and rate of GST is 12%, find :

(i) the marked price of the TV.

(ii) consumer's cost price of TV inclusive of tax under GST.

(iii) GST paid by the retailer to the Central and State Governments.

Answer

(i) Given,

Retailer marks the price of the T.V. 20% above his cost price

∴ M.P. = ₹ 25000 + 20% of ₹ 25000

= ₹ 25000 + $\dfrac{20}{100} \times 25000$

= ₹ 25000 + ₹ 5000 = ₹ 30000.

Hence, the marked price of the TV = ₹ 30000.

(ii) M.P. = ₹ 30000

Discount = 10%

C.P. (without tax) = ₹ 30000 - 10% of ₹ 30000

= ₹ 30000 - ₹ 3000 = ₹ 27000.

GST paid by consumer = 12% of ₹ 27000 = $\dfrac{12}{100} \times 27000$ = ₹ 3240

∴ Consumer's cost price of TV inclusive of tax = ₹ 27000 + ₹ 3240 = ₹ 30240.

Hence, consumer's cost price of TV inclusive of tax under GST = ₹ 30240.

(iii) For retailer :

Input tax = 12% of ₹ 25000 = $\dfrac{12}{100} \times 25000$ = ₹ 3000

Output tax = 12% of ₹ 27000 = $\dfrac{12}{100} \times 27000$ = ₹ 3240

GST paid by retailer = Output tax - Input tax = ₹ 3240 - ₹ 3000 = ₹ 240.

Hence, GST paid by the retailer to the Central Government = ₹ 240 and state government = ₹ 0.

A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ₹ 6,000. The dealer sells it to a consumer at a discount of 10% on the marked price. If the sales are intra-state and rate of GST is 5%, find :

(i) the total amount paid by the consumer for the article.

(ii) the tax under GST paid by the dealer to the state government.

(iii) the amount of tax under GST received by the central government.

Answer

(i) For consumer,

M.P. = ₹ 6000

Discount = 10%

C.P. = M.P. - 10% of M.P. = ₹ 6000 - 10% of ₹ 6000 = ₹ 6000 - ₹ $\dfrac{10}{100} \times 6000$ = ₹ 6000 - ₹ 600 = ₹ 5400.

GST paid by consumer = 5% of ₹ 5400 = $\dfrac{5}{100} \times 5400$ = ₹ 270.

Amount = ₹ 5400 + ₹ 270 = ₹ 5670.

Hence, the total amount paid by consumer for the article = ₹ 5670.

(ii) For dealer :

M.P. = ₹ 6000

Discount = 30%

C.P. = M.P. - 30% of M.P. = ₹ 6000 - 30% of ₹ 6000 = ₹ 6000 - $\dfrac{30}{100} \times ₹ 6000$ = ₹ 6000 - ₹ 1800 = ₹ 4200.

Input tax = 5% of ₹ 4200 = $\dfrac{5}{100} \times 4200$ = ₹ 210.

Output tax = GST paid by consumer = ₹ 270

Tax paid by dealer = Output tax - Input tax = ₹ 270 - ₹ 210 = ₹ 60.

SGST = $\dfrac{\text{GST}}{2}$ = $\dfrac{60}{2}$ = ₹ 30

Hence, tax paid by dealer to state government = ₹ 30.

(iii) GST received by government = GST paid by consumer = ₹ 270.

CGST = $\dfrac{\text{GST}}{2}$ = $\dfrac{270}{2}$ = ₹ 135.

Hence, amount of tax received by central government = ₹ 135.

A shopkeeper in Punjab buys an article at a printed price of ₹ 20,000 from a wholesaler in Delhi. The shopkeeper sells the article to a customer in Punjab at a profit of 25% on the cost price. If the rate of GST is 18%, find :

(i) the price of the article (inclusive of GST) for the shopkeeper.

(ii) the amount of tax under GST received, paid by the shopkeeper to the government.

Answer

(i) M.P. = ₹ 20,000

For shopkeeper,

Cost price = ₹ 20,000

GST = 18% of ₹ 20,000 = $\dfrac{18}{100} \times 20,000$ = ₹ 3,600.

Price of article = ₹ 20,000 + ₹ 3,600 = ₹ 23,600.

Hence, the price of the article (inclusive of GST) for the shopkeeper is ₹ 23,600.

(ii) For consumer,

Cost price = ₹ 20,000 + 25% of ₹ 20,000

= ₹ 20,000 + $\dfrac{25}{100} \times 20000$

= ₹ 20,000 + ₹ 5000

= ₹ 25000.

GST paid by consumer = 18% of ₹ 25000

= $\dfrac{18}{100} \times 25000$

= ₹ 4500.

Output tax for shopkeeper = Tax paid by consumer = ₹ 4500.

Input tax for shopkeeper = ₹ 3600.

∴ Tax paid by shopkeeper to government = Output tax - Input tax = ₹ 4500 - ₹ 3600 = ₹ 900.

Hence, the amount of tax under GST paid by shopkeeper to government = ₹ 900.

A shopkeeper bought an A.C. from a distributor at a discount of 25% on the list price of ₹ 64,000. The shopkeeper sells the A.C. to a consumer at the list price. If the sales are intra-state and the rate of GST is 18%, then find :

(i) the S.P. of the A.C., including GST by the distributor.

(ii) the tax paid by the distributor to the State government.

(iii) the tax under GST paid by the shopkeeper to the Central government.

(iv) the tax under GST received by the state government.

(v) The price including tax under GST of the A.C. paid by the customer.

Answer

M.P. of A.C. = ₹ 64000

(i) For distributor

S.P. of A.C. (without GST) = ₹ 64000 - ₹ 25% of ₹ 64000 = ₹ 64000 - $\dfrac{25}{100} \times 64000$ = ₹ 64000 - ₹ 16000 = ₹ 48000.

GST = 18% of ₹ 48000 = $\dfrac{18}{100} \times 48000$ = ₹ 8640.

S.P. (with GST) = ₹ 48000 + ₹ 8640 = ₹ 56640.

Hence, the S.P. = ₹ 56640.

(ii) GST paid by distributor = ₹ 8640.

Tax paid by distributor to State government = $\dfrac{8640}{2}$ = ₹ 4320.

Hence, the tax paid by distributor to State government = ₹ 4320.

(iii) For shopkeeper :

C.P. = S.P. for distributor = ₹ 48000

Input tax = 18% of ₹ 48000 = $\dfrac{18}{100} \times 48000$ = ₹ 8640.

Output tax = Tax paid by consumer

C.P. for consumer = ₹ 64000

GST paid by consumer = 18% of ₹ 64000 = $\dfrac{18}{100} \times 64000$ = ₹ 11520.

Output tax = ₹ 11520.

Tax paid by shopkeeper under GST to government = Output tax - Input tax = ₹ 11520 - ₹ 8640 = ₹ 2880

CGST = $\dfrac{\text{GST}}{2}$ = $\dfrac{2880}{2}$ = ₹ 1440.

Hence, the tax under GST paid by the shopkeeper to the Central government = ₹ 1440.

(iv) Tax received by state government = SGST paid by consumer

= $\dfrac{\text{GST paid by consumer}}{2}$

= $\dfrac{11520}{2}$ = ₹ 5760.

Hence, the tax received by State government = ₹ 5760.

(v) The price including tax under GST of the A.C. paid by the customer

= C.P. for customer + GST paid by consumer

= ₹ 64000 + 18% of ₹ 64000

= ₹ 64000 + ₹ 11520

= ₹ 75520.

Hence, the price including tax under GST of the A.C. paid by the customer = ₹ 75520.

Jagmohan bought the following items (named A, B and C) as shown below:

Calculate:

(i) Total GST paid

(ii) Total bill amount

Answer

(i) For item A,

M.P. = ₹ 800

Discount = 20%

Quantity of item A purchased = 15

Discount = $\dfrac{20}{100} \times 800$ = ₹ 160

Selling price = 800 - 160 = ₹ 640

Total value = ₹ 640 × 15 = ₹ 9,600

GST = 5% of ₹ 9,600 = 0.05 × 9,600 = ₹ 480

Total amount paid for item A = ₹ 9,600 + ₹ 480 = ₹ 10,080

For item B,

M.P = ₹ 1,500

Discount = 30%

Quantity of item B purchased = 20

Discount = $\dfrac{30}{100} \times 1500$ = ₹ 450

Selling price = 1500 - 450 = ₹ 1,050

Total value = ₹ 1,050 × 20 = ₹ 21,000

GST = 12% of ₹ 21,000 = 0.12 × 21,000 = ₹ 2,520

Total amount paid for item B = ₹ 21,000 + ₹ 2,520 = ₹ 23,520

For item C,

M.P = ₹ 30

Quantity of item C purchased = 20

Total value = ₹ 30 × 20 = ₹ 600

GST = 18% of ₹ 600 = 0.18 × 600 = ₹ 108

Total amount paid for item C = ₹ 600 + ₹ 108 = ₹ 708

Total GST paid: ₹ 480 + ₹ 2,520 + ₹ 108 = ₹ 3,108

Hence, total GST paid = ₹ 3,108.

(ii) Total bill amount: ₹ 10,080 + ₹ 23,520 + ₹ 708 = ₹ 34,308

Hence, total bill amount = ₹ 34,308.

The printed price of a machine is ₹ 90,000. The wholesaler allows a discount of 10% (on the printed price) to a shopkeeper. The shopkeeper sells this machine to a consumer at a discount of 5% on the printed price. The GST is charged at the rate of 12% at every stage. Find:

(i) GST paid by the shopkeeper.

(ii) The total amount paid by the customer.

Answer

(i) Marked price of machine = ₹ 90,000

GST rate = 12%

Given,

Wholesaler gives 10% discount on printed price = $\dfrac{10}{100} \times 90,000 = 9,000$

Price of machine after discount = ₹ 90,000 - ₹ 9,000 = ₹ 81,000

Now GST at 12% on ₹ 81,000

GST = $\dfrac{12}{100} \times 81,000$ = ₹ 9,720.

Hence, GST paid by the shopkeeper = ₹ 9,720.

(ii) Discount given to customer = $\dfrac{5}{100} \times 90,000$

= ₹ 4,500

Selling price = ₹ 90,000 − ₹ 4,500

= ₹ 85,500

GST charged to customer :

= $\dfrac{12}{100} \times 85,500$

= ₹ 10,260

The total amount paid by the customer = ₹ 85,500 + ₹ 10,260 = ₹ 95,760.

Hence, total amount paid by the customer = ₹ 95,760.

Find the total amount of following bill.

Note:

(i) 20% discount is applicable, if 50 or more articles are purchased

(ii) 10% discount is applicable only if the number of articles purchased is 30 or more but less than 50.

(iii) 5% discount is applicable on the purchase of less than 30 articles.

GST on all the articles is 12%

Answer

Construct the table as under :

GST on all the articles is 12% = $\dfrac{12}{100} \times 58050 = ₹ 6966$

Final bill amount = 58050 + 6966 = ₹ 65,016.

Hence, final bill amount = ₹ 65,016.

Case study

(i) Peter visited a site of a builder to purchase a flat for his residential purpose. At the site, he examined ready-to-move (completed flats) as well as under-construction flats.

All the flats were not of same size.

(I) 2 BHK under-construction flats were to cost ₹ 45 lakhs or less (GST payable 1%)

(II) The bigger under-construction flats, (3 BHK or more) were to cost more than ₹ 45 lakhs (GST payable 3%)

(III) The completed, ready-to-move-in flats were available for purchase with GST exempted (GST 0%)

Using the above information, find GST on :

1. an under-construction flat with cost
(a) ₹ 40,20,000
(b) ₹ 79,32,000

2. a completed (ready-to-move-in) flat with cost ₹ 89,00,000

(ii) Peter decided to purchase an under-construction flat costing ₹ 96,84,000. After bargaining, the builder offered a discount of ₹ 4,50,000.

How much will Peter pay if he purchases that flat?

Answer

(i)

1. (a) An under-construction flat with cost ₹ 40,20,000.

Since ₹ 40,20,000 < ₹45 lakh

GST = 1%

GST = $\dfrac{1}{100} \times 40,20,000$ = ₹ 40,200.

Hence, GST on an under-construction flat with cost ₹ 40,20,000 is ₹ 40,200.

(b) An under-construction flat with cost ₹ 79,32,000.

Since ₹ 79,32,000 > ₹45 lakh

GST = 3%

GST = $\dfrac{3}{100} \times 79,32,000$ = ₹ 2,37,960.

Hence, GST on an under-construction flat with cost ₹ 79,32,000 is ₹ 2,37,960.

2. Completed flat cost = ₹ 89,00,000

Completed flats have GST = 0%

Hence, GST on completed flats with cost ₹ 89,00,000 = ₹ 0.

(ii) Cost of an under-construction flat = ₹ 96,84,000

Discount offered = ₹ 4,50,000

Price after discount = ₹ 96,84,000 - ₹ 4,50,000 = ₹ 92,34,000

Since ₹ 92,34,000 > ₹45 lakh

GST = 3%

GST = $\dfrac{3}{100} \times 92,34,000$ = ₹ 2,77,020.

Final amount to be paid = ₹ 92,34,000 + ₹ 2,77,020 = ₹ 95,11,020

Hence, final amount to be paid = ₹ 95,11,020.