Goods & Services Tax — Test Yourself

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.