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Chapter 1

Goods and Services Tax

Class 10 - ML Aggarwal Understanding ICSE Mathematics


Exercise 1

Question 1

A manufacturer sells a T.V. to a dealer for ₹18000 and the dealer sells it to a consumer at a profit of ₹1500. If the sales are intra-state and the rate of GST is 12%, find:
(i) the amount of GST paid by the dealer to the State Government.
(ii) the amount of GST received by the Central Government.
(iii) the amount of GST received by the State Government.
(iv) the amount that the consumer pays for the T.V.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Manufacturer sells the TV to dealer for ₹18000, amount of GST collected by manufacturer from dealer(or paid by dealer)

CGST=6CGST = 6% of 18000=(6100)×18000=18000 = (\frac{6}{100})\times18000 =10801080
SGST=6SGST = 6% of 18000=(6100)×18000=18000 = (\frac{6}{100})\times18000 =10801080

∴ Amount of Input GST of dealer:

InputInput CGST=CGST =10801080
InputInput SGST=SGST =10801080

Manufacturer will pay 1080 as CGST and 1080 as SGST.

Since the dealer sells the TV to a consumer at a profit of 1500, the selling price of TV by dealer (or cost price of TV to the consumer)
= 18000+1500=18000 + 1500 =1950019500.

The amount of GST collected by dealer (or paid by consumer):
CGST=6CGST = 6% of 19500=(6100)×19500=19500 = (\frac{6}{100})\times19500 =11701170
SGST=6SGST = 6% of 19500=(6100)×19500=19500 = (\frac{6}{100})\times19500 =11701170

∴ Amount of output GST of dealer:

OutputOutput CGST=CGST =11701170
OutputOutput SGST=SGST =11701170

(i) Amount of GST paid by dealer to the State Government
= SGST paid by dealer to the State Government
= OutputOutput SGSTInputSGST - Input SGST=11701080=SGST = 1170 - 1080 = 90\bold{90}.

(ii) Amount of GST received by the Central Government:
= CGST paid by Manufacturer + CGST paid by Dealer
=1080+90=1080 + 90 = 1170\bold{1170}

(iii) Amount of GST received by the State Government:
= SGST paid by Manufacturer + SGST paid by Dealer
= 1080+90=1080 + 90 = 1170\bold{1170}

(iv) The amount which the consumer pays for the TV
= Cost price of TV + CGST paid by consumer + SGST paid by consumer
= 19500+1170+1170=19500 + 1170 + 1170 =21840\bold{21840}

Question 2

A shopkeeper buys a camera at a discount of 20% from a wholesaler, the printed price of the camera being ₹1600. The shopkeeper sells it to a consumer at the printed price. If the sales are intra-state and the rate of GST is 12%, find:
(i) GST paid by the shopkeeper to the Central Government.
(ii) GST received by the Central Government.
(iii) GST received by the State Government.
(iv) the amount at which the consumer bought the camera.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Printed price of the camera = 1600
Rate of discount shopkeeper = 20%
Cost Price of camera for shopkeeper = PrintedPrinted PriceDiscountPrice - Discount
= 1600(20100×1600)=1600 - (\frac{20}{100}\times1600) =12801280

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Wholesaler sells the camera to shopkeeper for ₹1280, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST=6CGST = 6% of 1280=(6100)×1280=1280 = (\frac{6}{100})\times1280 =76.8076.80
SGST=6SGST = 6% of 1280=(6100)×1280=1280 = (\frac{6}{100})\times1280 =76.8076.80

∴ Amount of Input GST of Shopkeeper:

InputInput CGST=CGST =76.8076.80
InputInput SGST=SGST =76.8076.80

Since the Shopkeeper sells the camera to a consumer at printed price, the amount of GST collected by shopkeeper (or paid by consumer):

CGST=6CGST = 6% of 1600=(6100)×1600=1600 = (\frac{6}{100})\times1600 =9696
SGST=6SGST = 6% of 1600=(6100)×1600=1600 = (\frac{6}{100})\times1600 =9696

∴ Amount of output GST of shopkeeper:
OutputOutput CGST=CGST =9696
OutputOutput SGST=SGST =9696

(i) GST paid by shopkeeper to the Central Government
= CGST paid by shopkeeper to the Central Government
= OutputOutput CGSTInputCGST - Input CGST=9676.80=CGST = 96 - 76.80 = 19.20\bold{19.20}

(ii) GST received by the Central Government:
= CGST paid by Wholesaler + CGST paid by Shopkeeper
=76.80+19.20=76.80 + 19.20 = 96\bold{96}

(iii) GST received by the State Government:
= SGST paid by Wholesaler + SGST paid by Shopkeeper
=76.80+19.20=76.80 + 19.20 = 96\bold{96}

(iv) The amount which the consumer pays for the camera
= Cost price of camera + CGST paid by consumer + SGST paid by consumer
=1600+96+96=1600 + 96 + 96 = 1792\bold{1792}

Question 3

A manufacturer sells a washing machine to a wholesaler for ₹15000. The wholesaler sells it to a trader at a profit of ₹1200 and the trader sells it to a consumer at a profit of ₹1800. If all the sales are intra-state and the rate of GST is 12%, find:
(i) the amount of tax (under GST) received by the State Government from the wholesaler.
(ii) the amount of tax (under GST) received by the Central Government from the trader.
(iii) the amount that the consumer pays for the machine.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Cost price of washing machine for wholesaler = ₹15000

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Manufacturer sells the washing machine to wholesaler for 1500, amount of GST collected by manufacturer from wholesaler(or paid by wholesaler)

CGST=6CGST = 6% of 15000=(6100)×15000=15000 = (\frac{6}{100})\times15000 =900900
SGST=6SGST = 6% of 15000=(6100)×15000=15000 = (\frac{6}{100})\times15000 =900900

∴ Amount of Input GST of wholesaler:

InputInput CGST=CGST =900900
InputInput SGST=SGST =900900

Since the wholesaler sells the washing machine to trader at a profit of ₹1200, the selling price of washing machine by wholesaler:
=15000+1200=15000 + 1200 =1620016200

The amount of GST collected by wholesaler (or paid by trader):
CGST=6CGST = 6% of 16200=(6100)×16200=16200= (\frac{6}{100})\times16200 =972972
SGST=6SGST = 6% of 16200=(6100)×16200=16200= (\frac{6}{100})\times16200 =972972

∴ Amount of output GST of wholesaler:

OutputOutput CGST=CGST =972972
OutputOutput SGST=SGST =972972

Note: Since Wholesaler sells the washing machine to trader, so from trader's perspective, his/her input GST will be

CGST=6CGST = 6% of 16200=(6100)×16200=16200= (\frac{6}{100})\times16200 =972972
SGST=6SGST = 6% of 16200=(6100)×16200=16200= (\frac{6}{100})\times16200 =972972

∴ Amount of input GST of trader:

InputInput CGST=CGST =972972
InputInput SGST=SGST =972972

Since the trader sells the washing machine to consumer at a profit of ₹1800, the selling price of washing machine by trader (or cost price for consumer):
=16200+1800=16200 + 1800 =1800018000

The amount of GST collected by trader (or paid by consumer):

CGST=6CGST = 6% of 18000=(6100)×18000=18000= (\frac{6}{100})\times18000 =10801080
SGST=6SGST = 6% of 18000=(6100)×18000=18000= (\frac{6}{100})\times18000 =10801080

∴ Amount of output GST of trader:

OutputOutput CGST=CGST =10801080
OutputOutput SGST=SGST =10801080

(i) the amount of tax (under GST) received by the State Government from the wholesaler.
= Output SGST of wholesaler - Input SGST of wholesaler
972900=972 - 900 = 72\bold{72}

(ii) the amount of tax (under GST) received by the Central Government from the trader.
= Output CGST of trader - Input CGST of trader
=1080972=1080 - 972 = 108\bold{108}

(iii) The amount which the consumer pays for the washing machine
= Cost price of washing machine + CGST paid by consumer + SGST paid by consumer
=18000+1080+1080=18000 + 1080 +1080 = 20160\bold{20160}

Question 4

A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ₹6000. The dealer sells it to a consumer at a discount of 10% on the marked price. If the sales are intra-state and the rate of GST is 5%, find:
(i) the 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

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Marked price of the article = ₹60006000
Rate of discount for dealer = 3030%
Cost Price of article for dealer = MarkedMarked PriceDiscountPrice - Discount
= 6000(30100×6000)=6000 - (\frac{30}{100}\times6000) =42004200

As the sales are intra-state and the rate of GST is 5%, so GST comprises of 2.5% as CGST and 2.5% as SGST. Wholesaler sells the camera to dealer for ₹4200, amount of GST collected by wholesaler from dealer(or paid by dealer)

CGST=2.5CGST = 2.5% of 4200=(2.5100)×4200=4200= (\frac{2.5}{100})\times4200 =105105
SGST=2.5SGST = 2.5% of 4200=(2.5100)×4200=4200= (\frac{2.5}{100})\times4200 =105105

∴ Amount of Input GST of dealer:

InputInput CGST=CGST =105105
InputInput SGST=SGST =105105

Since the dealer sells the article to consumer at a discount of 10% on marked price, the selling price of article by dealer ( or cost price for consumer):
=MarkedMarked PriceDiscountPrice - Discount
= 6000(10100×6000)=6000 - (\frac{10}{100}\times6000) =54005400

The amount of GST collected by dealer (or paid by consumer):
CGST=2.5CGST = 2.5% of 5400=(2.5100)×5400=5400= (\frac{2.5}{100})\times5400 =135135
SGST=2.5SGST = 2.5% of 5400=(2.5100)×5400=5400= (\frac{2.5}{100})\times5400 =135135

∴ Amount of output GST of dealer:

OutputOutput CGST=CGST =135135
OutputOutput SGST=SGST =135135

(i) the amount paid by the consumer for the article.
= Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer
=5400+135+135=5400 + 135 +135 = 5670\bold{5670}

(ii) the tax (under GST) paid by the dealer to the State Government.
= Output SGST of dealer - Input SGST of dealer
=135105=135 - 105 = 30\bold{30}

(iii) the amount of tax (under GST) received by the Central Government.
= CGST paid by Wholesaler + CGST paid by dealer
=105+30=105 + 30 = 135\bold{135}

Question 5

The printed price of an article is ₹50000. The wholesaler allows a discount of 10% to a shopkeeper. The shopkeeper sells the article to a consumer at 4% above the marked price. If the sales are intra-state and the rate of GST is 18%, find:
(i) the amount inclusive of tax (under GST) which the shopkeeper pays for the article.
(ii) the amount paid by the consumer for the article
(iii) the amount of tax (under GST) paid by the shopkeeper to the Central Government.
(iv) the amount of tax (under GST) received by the State Government.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Marked price of the article = ₹5000050000
Rate of discount for shopkeeper = 1010%
Cost Price of article for shopkeeper = MarkedMarked PriceDiscountPrice - Discount
= 50000(10100×50000)=50000 - (\frac{10}{100}\times50000) =4500045000

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. Wholesaler sells the article to shopkeeper for ₹45000, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST=9CGST = 9% of 45000=(9100)×45000=45000 = (\frac{9}{100})\times45000 =40504050
SGST=9SGST = 9% of 45000=(9100)×45000=45000 = (\frac{9}{100})\times45000 =40504050

∴ Amount of Input GST of Shopkeeper:

InputInput CGST=CGST =40504050
InputInput SGST=SGST =40504050

Since the shopkeeper sells the article to customer at a premium of 4% on marked price, the selling price of article by shopkeeper ( or cost price for consumer):
= MarkedMarked Price+PremiumPrice + Premium
= 50000+(4100×50000)=50000 + (\frac{4}{100}\times50000) =5200052000

The amount of GST collected by shopkeeper (or paid by consumer):
CGST=9CGST = 9% of 52000=(9100)×52000=52000 = (\frac{9}{100})\times52000 =46804680
CGST=9CGST = 9% of 52000=(9100)×52000=52000 = (\frac{9}{100})\times52000 =46804680

∴ Amount of output GST of Shopkeeper:

OutputOutput CGST=CGST =46804680
OutputOutput SGST=SGST =46804680

(i) the amount inclusive of tax (under GST) which the shopkeeper pays for the article.
= Cost price of article for Shopkeeper + CGST paid by shopkeeper + SGST paid by shopkeeper
= 45000+4050+4050=45000 + 4050 + 4050 = 53100\bold{53100}

(ii) the amount paid by the consumer for the article.
= Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer
=52000+4680+4680=52000 + 4680 + 4680 = 61360\bold{61360}

(iii) the amount of tax (under GST) paid by the shopkeeper to the Central Government.
= Output CGST of Shopkeeper - Input CGST of Shopkeeper
= 46804050=4680 - 4050 = 630\bold{630}.

(iv) the amount of tax (under GST) received by the State Government.
= SGST paid by Wholesaler + SGST paid by Shopkeeper
= 4050+630=4050 + 630 = 4680\bold{4680}.

Question 6

A retailer buys a T.V. from a wholesaler for ₹40000. He marks the price of T.V. 15% above his cost price and sells it to a consumer at 5% discount on marked price. If the sales are intra-state and the rate of GST is 12%, find:
(i) the marked price of the T.V.
(ii) the amount which the consumer pays for the T.V.
(iii) the amount of tax (under GST) paid by the retailer to the Central Government.
(iv) the amount of tax (under GST) received by the State Government.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Cost Price of T.V. for retailer = ₹4000040000
Premium percentage by retailer = 1515%
Marked price of the T.V by retailer =
= CostCost Price+PremiumPrice + Premium
= 40000+(15100×40000)=40000 + (\frac{15}{100}\times40000) =4600046000

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Wholesaler sells the T.V. to retailer for ₹40000, amount of GST collected by wholesaler from retailer(or paid by retailer)

CGST=6CGST = 6% of 40000=(6100)×40000=40000 = (\frac{6}{100})\times40000 =24002400
SGST=6SGST = 6% of 40000=(6100)×40000=40000 = (\frac{6}{100})\times40000 =24002400

∴ Amount of Input GST of retailer:

InputInput CGST=CGST =24002400
InputInput SGST=SGST =24002400

Since the retailer sells the T.V. to consumer at a discount of 5% on marked price, the selling price of T.V. by retailer (or cost price for consumer):
= MarkedMarked PriceDiscountPrice - Discount
= 46000(5100×46000)=46000 - (\frac{5}{100}\times46000) =4370043700

The amount of GST collected by retailer (or paid by consumer):
CGST=6CGST = 6% of 43700=(6100)×43700=43700 = (\frac{6}{100})\times43700 =26222622
SGST=6SGST = 6% of 43700=(6100)×43700=43700 = (\frac{6}{100})\times43700 =26222622

∴ Amount of output GST of retailer:

OutputOutput CGST=CGST =26222622
OutputOutput SGST=SGST =26222622

(i) the marked price of the T.V.
= 46000\bold{46000}

(ii) the amount which the consumer pay for the T.V.
= Cost price of T.V. for consumer + CGST paid by consumer + SGST paid by consumer
=43700+2622+2622=43700 + 2622 + 2622 = 48944\bold{48944}

(iii) the amount of tax (under GST) paid by the retailer to the Central Government.
= Output CGST of retailer - Input CGST of retailer
=26222400=2622 - 2400 = 222\bold{222}

(iv) the amount of tax (under GST) received by the State Government.
= SGST paid by Wholesaler + SGST paid by retailer
= 2400+222=2400 + 222 = 2622\bold{2622}

Question 7

A shopkeeper buys an article from a manufacturer for ₹12000 and marks up its price by 25%. The shopkeeper gives a discount of 10% on the marked up price and he gives a further off-season discount of 5% on the balance to a customer of T.V. If the sales are intra-state and the rate of GST is 12%, find:
(i) the price inclusive of tax (under GST) which the consumer pays for the T.V.
(ii) the amount of tax (under GST) paid by the shopkeeper to the State Government.
(iii) the amount of tax (under GST) received by the Central Government.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Cost Price of T.V. for shopkeeper = ₹1200012000
Premium percentage by shopkeeper = 2525%
Marked price of the T.V by shopkeeper
= CostCost Price+PremiumPrice + Premium
= 12000+(25100×12000)=12000 + (\frac{25}{100}\times12000) =1500015000

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Manufacturer sells the T.V. to shopkeeper for ₹12000, amount of GST collected by manufacturer from shopkeeper(or paid by shopkeeper)

CGST=6CGST = 6% of 12000=(6100)×12000=12000 = (\frac{6}{100})\times12000 =720720
SGST=6SGST = 6% of 12000=(6100)×12000=12000 = (\frac{6}{100})\times12000 =720720

∴ Amount of Input GST of shopkeeper:

InputInput CGST=CGST =720720
InputInput SGST=SGST =720720

Since the shopkeeper sells the T.V. to consumer at a discount of 10% on marked price, and further off season discount of 5% on balance, the selling price of T.V. by shopkeeper (or cost price for consumer):
= Balance=MarkedBalance = Marked PriceDiscountPrice - Discount
= 15000(10100×15000)=15000 - (\frac{10}{100}\times15000) =1350013500

Selling Price by shopkeeper (or cost price for consumer):

= BalanceBalance PriceOffPrice - Off seasonseason discountdiscount
= 13500(2100×13500)=13500 - (\frac{2}{100}\times13500) =1282512825

The amount of GST collected by shopkeeper (or paid by consumer):
CGST=6CGST = 6% of 12825=(6100)×12825=12825 = (\frac{6}{100})\times12825 =769.50769.50
SGST=6SGST = 6% of 12825=(6100)×12825=12825 = (\frac{6}{100})\times12825 =769.50769.50

∴ Amount of output GST of shopkeeper:

OutputOutput CGST=CGST =769.50769.50
OutputOutput SGST=SGST =769.50769.50

(i) the price inclusive of tax (under GST) which the consumer pays for the T.V.
= Cost price of T.V. for consumer + CGST paid by consumer + SGST paid by consumer
=12825+769.50+769.50=12825 + 769.50 + 769.50 = 14364\bold{14364}

(ii) the amount of tax (under GST) paid by the shopkeeper to the State Government.
= Output SGST of shopkeeper - Input SGST of shopkeeper
=769.50720=769.50 - 720 = 49.50\bold{49.50}

(iii) the amount of tax (under GST) received by the Central Government.
= CGST paid by manufacturer + CGST paid by shopkeeper
=720+49.50=720 + 49.50 = 769.50\bold{769.50}

Question 8

A manufacturer marks an article at ₹5000. He sells it to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to a retailer at a discount of 15% on the marked price. The retailer sells it to a consumer at the marked price. If all the sales are intra-state and the rate of GST is 12%, find:
(i) The amount inclusive of tax (under GST) which the wholesaler pays for the article.
(ii) The amount inclusive of tax (under GST) which the retailer pays for the article.
(iii) The amount of tax (under GST) which the wholesaler pays to the Central Government.
(iv) The amount of tax (under GST) which the retailer pays to the State Government.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Marked Price of article by manufacturer = ₹50005000
Discount percentage given by manufacturer to wholesaler = 2525%
Cost Price for wholesaler = MarkedMarked PriceDiscountPrice - Discount
= 5000(25100×5000)=5000 - (\frac{25}{100}\times5000) =37503750

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Manufacturer sells the article to wholesaler for ₹3750, amount of GST collected by manufacturer from wholesaler(or paid by wholesaler)

CGST=6CGST = 6% of 3750=(6100)×3750=3750 = (\frac{6}{100})\times3750 =225225
SGST=6SGST = 6% of 3750=(6100)×3750=3750 = (\frac{6}{100})\times3750 =225225

∴ Amount of Input GST of wholesaler:

InputInput CGST=CGST =225225
InputInput SGST=SGST =225225

Since the wholesaler sells the article to retailer at a discount of 15% on marked price, the selling price of article by wholesaler (or cost price for retailer):
= MarkedMarked PriceDiscountPrice - Discount
= 5000(15100×5000)=5000 - (\frac{15}{100}\times5000) =42504250

The amount of GST collected by wholesaler (or paid by retailer):
CGST=6CGST = 6% of 4250=(6100)×4250=4250 = (\frac{6}{100})\times4250 =255255
SGST=6SGST = 6% of 4250=(6100)×4250=4250 = (\frac{6}{100})\times4250 =255255

∴ Amount of output GST of wholesaler(or input GST of retailer):

OutputOutput CGST=CGST =255255
OutputOutput SGST=SGST =255255

The amount of GST collected by retailer (or paid by consumer):
CGST=6CGST = 6% of 5000=(6100)×5000=5000 = (\frac{6}{100})\times5000 =300300
SGST=6SGST = 6% of 5000=(6100)×5000=5000 = (\frac{6}{100})\times5000 =300300

∴ Amount of output GST of retailer:

OutputOutput CGST=CGST =300300
OutputOutput SGST=SGST =300300

(i) The amount inclusive of tax (under GST) which the wholesaler pays for the article.
= Cost price of article for wholesaler + CGST paid by wholesaler + SGST paid by wholesaler
= 3750+225+225=3750 + 225 + 225 = 4200\bold{4200}

(ii) The amount inclusive of tax (under GST) which the retailer pays for the article.
= Cost price of article for retailer + CGST paid by retailer + SGST paid by retailer
= 4250+255+255=4250 + 255 + 255 = 4760\bold{4760}

(iii) The amount of tax (under GST) which the wholesaler pays to the Central Government.
= Output CGST of wholesaler - Input CGST of wholesaler
= 255225=255 - 225= 30\bold{30}

(iv) The amount of tax (under GST) which the retailer pays to the State Government.
= Output CGST of retailer - Input CGST of retailer
= 300255=300 - 255= 45\bold{45}

Question 9

The printed price of an article is ₹40000. A wholesaler in Uttar Pradesh buys the article from a manufacturer in Gujarat at a discount of 10% on the printed price. The wholesaler sells the article to a retailer in Himachal at 5% above the printed price. If the rate of GST on the article is 18%, find:
(i) The amount inclusive of tax (under GST) paid by the wholesaler for the article.
(ii) The amount inclusive of tax (under GST) paid by the retailer for the article.
(iii) The amount of tax (under GST) paid by the wholesaler to the Central Government.
(iv) The amount of tax (under GST) received by the Central Government.

Answer

Given: The printed price of article is ₹40000. The rate of GST on sale or purchase of article is 18%. Here both the sales from manufacturer to wholesaler and wholesaler to retailer are inter-state, so IGST is levied on these sales at 18%

(i) As the wholesaler buys the article from a manufacturer at 10% discount on the printed price,

∴ Cost price of the article for the wholesaler:

Cost Price for wholesaler = PrintedPrinted PriceDiscountPrice-Discount
= 40000(10100×40000)=40000-(\frac{10}{100}\times40000)=3600036000

Amount of IGST collected by manufacturer from wholesaler(or paid by wholesaler to manufacturer)
IGST=18IGST=18% of 36000=(18100)×36000=36000 = (\frac{18}{100})\times36000 =64806480

∴ Amount of Input GST of wholesaler:

InputInput IGST=IGST =64806480

The amount inclusive of tax (under GST) which the wholesaler pays for the article:
= Cost price of article for wholesaler + IGST paid by wholesaler
= 36000+6480=36000 + 6480= 42480\bold{42480}

(ii) As wholesaler sells the article to retailer at 5% above the printed printed price. The selling price of article by wholesaler(or cost price of article for retailer):
= PrintedPrinted Price+PremiumPrice+Premium
= 40000+(5100×40000)=40000+(\frac{5}{100}\times40000)=4200042000

Amount of IGST collected by wholesaler from retailer(or paid by retailer to wholesaler)
IGST=18IGST=18% of 42000=(18100)×42000=42000 = (\frac{18}{100})\times42000 =75607560

∴ Amount of Output GST of wholesaler:

OutputOutput IGST=IGST =75607560

The amount inclusive of tax (under GST) paid by the retailer for the article:
= Cost price of article for retailer + IGST paid by retailer
= 42000+7560=42000 + 7560= 49560\bold{49560}

(iii) The amount of tax (under GST) paid by the wholesaler to the Central Government:
= Output IGST of wholesaler - Input IGST of wholesaler
= 75606480=7560 - 6480 = 1080\bold{1080}.

(iv) The amount of tax (under GST) received by the Central Government:
= IGST paid by Manufacturer + IGST paid by wholesaler
= 6480+1080=6480 + 1080 = 7560\bold{7560}.

Question 10

A shopkeeper in Delhi buys an article at the printed price of ₹24000 from a wholesaler in Mumbai. The shopkeeper sells the article to a consumer in Delhi at a profit of 15% on the basic cost price. If the rate of GST is 12%, find:
(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.
(ii) The amount which the consumer pays for the article.
(iii) The amount of tax (under GST) received by the State Government of Delhi.
(iv) The amount of tax (under GST) received by the Central Government.

Answer

(i) Given:
The printed price of article is ₹24000. The rate of GST on sale or purchase of article is 15%. Here the sales from wholesaler to shopkeeper is inter-state, so IGST is levied on that sale at 12%.

Amount of IGST collected by wholesaler from shopkeeper(or paid by shopkeeper to wholesaler)
IGST=12IGST=12% of 24000=(12100)×24000=24000 = (\frac{12}{100})\times24000 =28802880

∴ Amount of Input IGST of shopkeeper:

InputInput IGST=IGST =28802880

The amount inclusive of tax (under GST) at which the wholesaler bought the article:
= Cost price of article for wholesaler + IGST paid by wholesaler
= 24000+2880=24000 + 2880= 26880\bold{26880}

(ii) As shopkeeper sells the article to consumer at 15% above the basic cost price. The selling price of article by shopkeeper(or cost price of article for consumer):
= CostCost Price+PremiumPrice+Premium
= 24000+(15100×24000)=24000+(\frac{15}{100}\times24000)=2760027600

As the shopkeeper sells the article to consumer in Delhi, so the sale is intra - state

∴ GST will be applied which as CGST at 6% and SGST at 6%.

The amount of GST collected by shopkeeper (or paid by consumer):
CGST=6% of 27600=(6100)×27600=CGST = 6\%\space of\space 27600 = (\frac{6}{100})\times27600 =16561656
SGST=6% of 27600=(6100)×27600=SGST = 6\%\space of\space 27600 = (\frac{6}{100})\times27600 =16561656

∴ Amount of Output GST of shopkeeper:

OutputOutput CGST=CGST =16561656
OutputOutput SGST=SGST =16561656

The amount which the consumer pays for the article: = Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer
= 27600+1656+1656=27600 + 1656 + 1656 = 30912\bold{30912}

(iii) Since the transactions include both IGST and GST we need to apply input GST credit rules:

First set off Input IGST against Output CGST:

Balance Input IGST = Input IGST - Output CGST
= 28801656=2880 - 1656 =12241224

Then set off Balance Input IGST against output SGST

∴ The amount of tax (under GST) received by the State Government of Delhi:

Output SGST - Balance Input IGST
= 16561224=1656 - 1224 = 432\bold{432}

(iv) The amount of tax (under GST) received by the Central Government.
= IGST received from wholesaler + CGST received from shopkeeper = 2880+0=2880 + 0 = 2880\bold{2880}

Question 11

Kiran purchases an article for Rs 5310 which includes 10% rebate on the marked price and 18% tax (under GST) on the remaining price. Find the marked price of the article.

Answer

Given:
Rate of GST = 1818%
Rebate(or discount) = 1010% on Marked Price

Let the marked price be be P
Cost price of the article = MarkedMarked PriceDiscountPrice -Discount
= P10P - 10% ofof PP
= P(10100)×PP - (\frac{10}{100}) \times P
= (90P100)(\frac{90P}{100})
=0.9P0.9P

Amount of GST on cost price of article = 1818% ofof 0.9P0.9P

Amount paid by Kiran = CostCost Price+GSTPrice + GST = 53105310
=0.9P+(18100×0.9P)0.9P+(\frac{18}{100}\times0.9P) = 53105310
=0.9P+0.162P0.9P+ 0.162P = 53105310
= 1.062P1.062P = 53105310
= P=53101.062P = \dfrac{5310}{1.062} = 5000\bold{5000}

Question 12

A Shopkeeper buys an article whose list price is ₹8000 at some rate of discount from the wholesaler. He sells the article to a consumer at the list price. The sales are intra-state and the rate of GST is 18%. If the shopkeeper pays a tax (under GST) of ₹72 to the State Government, find the rate of discount at which he bought the article from the wholesaler.

Answer

Given:
List Price of the Article = ₹8000
Let discount rate be xx%

Cost price of article for shopkeeper = ListList PriceDiscountPrice - Discount
= 8000(x100×8000)8000-(\frac{x}{100}\times8000)
= 800080x8000 - 80x

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. wholesaler sells the article to shopkeeper for 800080x8000 - 80x, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST=9CGST = 9 % of (800080x)=(9100)×(800080x)=(7207.2x)(8000 - 80x) = (\frac{9}{100})\times(8000 - 80x) = (720 - 7.2x)
SGST=9SGST = 9 % of (800080x)=(9100)×(800080x)=(7207.2x)(8000 - 80x) = (\frac{9}{100})\times(8000 - 80x) = (720 - 7.2x)

∴ Amount of Input GST of shopkeeper:

InputInput CGST=7207.2xCGST = 720 - 7.2x
InputInput SGST=7207.2xSGST = 720 - 7.2x

Cost Price for Consumer = List Price of the article (as given in question) = 80008000

The amount of GST collected by shopkeeper (or paid by consumer):
CGST=9CGST = 9% of 8000=(9100)×8000=8000 = (\frac{9}{100})\times8000 =720720
SGST=9SGST = 9% of 8000=(9100)×8000=8000 = (\frac{9}{100})\times8000 =720720

∴ Amount of Output GST of shopkeeper:

OutputOutput CGST=CGST =720720
OutputOutput SGST=SGST =720720

As the shopkeeper pays a tax (under GST) of ₹72 to the State Government:

Tax paid to state government by shopkeeper:
= Output SGST of shopkeeper - Input SGST of shopkeeper = ₹72
= 720(7207.2x)=72720 - (720 - 7.2x) = 72.
= 7.2x=727.2x = 72
= x=727.2=10x=\frac{72}{7.2} =\bold{10}%

Multiple Choice Questions

A retailer purchases a fan for ₹1500 from a wholesaler and sells it to a consumer at 10% profit. If the sales are intra-state and the rate of GST is 12%, then choose the correct answer from the given four options for question 1 to 6:

Question 1

The selling price of the fan by the retailer (excluding tax) is

(a) ₹1500
(b) ₹1650 ✓
(c) ₹1848
(d) ₹1800

Answer

Given:

Cost price for retailer = ₹15001500
Profit % of retailer on cost price = 1010%

∴ selling price of the fan by retailer(excluding tax):
= CostCost Price+ProfitPrice+Profit
= 1500+101500+10 % of 1500=1500+((10100)×1500)1500 = 1500+ ((\frac{10}{100})\times1500)
= 1500+150=1500+ 150= 1650\bold{1650}

Question 2

The selling price of the fan including tax(under GST) by the retailer is

(a) ₹1650
(b) ₹1800
(c) ₹1848 ✓
(d) ₹1830

Answer

From Question 1:
Selling price of the fan for retailer or cost price of the article for consumer = ₹1650

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Retailer sells the fan to consumer for ₹1650, amount of GST collected by retailer from consumer(or paid by consumer):

CGST=6CGST = 6% of 1650=(6100)×1650=1650 = (\frac{6}{100})\times1650 =9999
SGST=6SGST = 6% of 1650=(6100)×1650=1650 = (\frac{6}{100})\times1650 =9999

∴ The Output Tax(under GST) for retailer:
OutputOutput CGST=99CGST = 99
OutpurOutpur SGST=99SGST = 99

∴ The selling price of the fan including tax(under GST) by the retailer is

= Cost price of fan for consumer + CGST paid by consumer + SGST paid by consumer
= 1650+99+99=1650 + 99+99= 1848\bold{1848}

Question 3

The tax (under GST) paid by the wholesaler to the Central Government is

(a) ₹90 ✓
(b) ₹9
(c) ₹99
(d) ₹180

Answer

Given:

Selling price(excluding tax) for wholesaler = 15001500

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Wholesaler sells the fan to retailer for ₹1500, amount of GST collected by wholesaler from retailer(or paid by retailer):

CGST=6CGST = 6% of 1500=(6100)×1500=1500 = (\frac{6}{100})\times1500 =9090
SGST=6SGST = 6% of 1500=(6100)×1500=1500 = (\frac{6}{100})\times1500 =9090

∴ The Input Tax(under GST) for retailer:
InputInput CGST=90CGST = 90
InputInput SGST=90SGST = 90

∴ The tax (under GST) paid by the wholesaler to the Central Government is
=CGST=CGST = 90\bold{90}

Question 4

The tax (under GST) paid by the retailer to the State Government is

(a) ₹99
(b) ₹9 ✓
(c) ₹18
(d) ₹198

Answer

From Question 1 and Question 3:

For Retailer:
InputInput SGST=90SGST = 90
OutputOutput SGST=99SGST = 99

The tax (under GST) paid by the retailer to the State Government is

Output SGST - Input SGST
= 9990=99 - 90 = 9\bold{9}

Question 5

The tax (under GST) received by the Central Government is

(a) ₹18
(b) ₹198
(c) ₹90
(d) ₹99 ✓

Answer

From Question 3:
The tax (under GST) paid by the wholesaler to the Central Government is = ₹9090

From Question 4:
The tax (under GST) paid by the retailer to the State Government is = ₹99

as CGST = SGST
∴ The tax (under GST) paid by the retailer to the Central Government is = ₹99

The tax (under GST) received by the Central Government is
= CGST paid by the wholesaler + CGST paid by the retailer
= 90+9=90 + 9 = 99\bold{99}

Question 6

The cost of fan to the consumer inclusive of tax is

(a) ₹1650
(b) ₹1800
(c) ₹1830
(d) ₹1848 ✓

Answer
From Question 1:
Selling price of the fan for retailer or cost price of the article for consumer = ₹1650

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Retailer sells the fan to consumer for ₹1650, amount of GST collected by retailer from consumer(or paid by consumer):

CGST=6CGST = 6% of 1650=(6100)×1650=1650 = (\frac{6}{100})\times1650 =9999
SGST=6SGST = 6% of 1650=(6100)×1650=1650 = (\frac{6}{100})\times1650 =9999

∴ The cost of fan to the consumer including of tax is

= Cost price of fan for consumer + CGST paid by consumer + SGST paid by consumer
= 1650+99+99=1650 + 99+99= 1848\bold{1848}

A shopkeeper bought a TV from a distributor at a discount of 25% of the listed price of ₹32000. The shopkeeper sells the TV to a consumer at listed price. If the sales are intra-state and the rate of GST is 18%, then choose the correct answer from the given four options for questions 7 to 11:

Question 7

The selling price of TV including tax(under GST) by the distributor is

(a) ₹32000
(b) ₹24000
(c) ₹28320 ✓
(d) ₹26160

Answer

Given:
Listed price of TV =₹3200032000
Discount given by distributor to shopkeeper = 2525% of Listed price:
= (25100)×32000=(\frac{25}{100})\times32000 =80008000

Selling price for distributer excluding tax(or cost price for shopkeeper) = ListedListed PriceDiscountPrice-Discount
= 32000800032000-8000 = ₹2400024000

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. Distributor sells the TV to shopkeeper for ₹24000, amount of GST collected by distributor from shopkeeper(or paid by shopkeeper):

CGST=9CGST = 9% of 24000=(9100)×24000=24000 = (\frac{9}{100})\times24000 =21602160
SGST=9SGST = 9% of 24000=(9100)×24000=24000 = (\frac{9}{100})\times24000 =21602160

∴ The Input Tax(under GST) for shopkeeper:
InputInput CGST=2160CGST = 2160
InputInput SGST=2160SGST = 2160

∴ The selling price of TV including tax(under GST) by the distributor is
SellingSelling Price+CGST+SGSTPrice + CGST+SGST
=24000+2160+216024000 + 2160+2160 = 28320\bold{28320}

Question 8

The tax (under GST) paid by the distributor to the State Government is

(a) ₹4320
(b) ₹2160 ✓
(c) ₹2880
(d) ₹720

Answer

From Question 7:

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. Distributor sells the TV to shopkeeper for ₹24000, amount of SGST collected by distributor from shopkeeper(or paid by shopkeeper):

SGST=9SGST = 9% of 24000=(9100)×24000=24000 = (\frac{9}{100})\times24000 = 2160\bold{2160}

Question 9

The tax (under GST) paid by the shopkeeper to the Central Government is

(a) ₹720 ✓
(b) ₹1440
(c) ₹2880
(d) ₹2160

Answer

Given:

Selling Price of shopkeeper without tax to consumer = Listed Price = ₹3200032000

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. shopkeeper sells the TV to consumer for ₹32000, amount of SGST collected by shopkeeper from consumer(or paid by consumer):

SGST=9SGST = 9% of 32000=(9100)×32000=32000 = (\frac{9}{100})\times32000 =28802880
CGST=9CGST = 9% of 32000=(9100)×32000=32000 = (\frac{9}{100})\times32000 =28802880

The Output Tax(under GST) for shopkeeper:
OutputOutput CGST=2880CGST = 2880
OutputOutput SGST=2880SGST = 2880

From Question 7:

The Input Tax(under GST) for shopkeeper:
InputInput CGST=2160CGST = 2160
InputInput SGST=2160SGST = 2160

The tax (under GST) paid by the shopkeeper to the Central Government is
= Output CGST - Input CGST
= 28802160=2880-2160=720\bold{720}

Question 10

The tax (under GST) received State Government is

(a) ₹5760
(b) ₹4320
(c) ₹1440
(d) ₹2880 ✓

Answer

From Question 7:

Amount of tax(under GST) paid by distributor to the State Government = ₹2160

From Question 9L

The tax (under GST) paid by the shopkeeper to the Central Government = ₹720
As CGST = SGST
The tax (under GST) paid by the shopkeeper to the State Government = ₹720

The tax (under GST) received State Government is
SGST paid by distributor + SGST paid by shopkeeper
=2160+720=2160+720=2880\bold{2880}

Question 11

The price including tax(under GST) of the TV paid by the consumer is

(a) ₹28320
(b) ₹37760 ✓
(c) ₹34880
(d) ₹32000

Answer

Given:
Listed price of TV =₹3200032000

Selling price for shopkeeper excluding tax(or cost price for consumer) = ListedListed PricePrice
= ₹3200032000

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. Shopkeeper sells the TV to consumer for ₹32000, amount of GST collected by shopkeeper from consumer(or paid by consumer):

CGST=9CGST = 9% of 32000=(9100)×32000=32000 = (\frac{9}{100})\times32000 =28802880
SGST=9SGST = 9% of 32000=(9100)×32000=32000 = (\frac{9}{100})\times32000 =28802880

∴ The price including tax(under GST) of the TV paid by the consumer is
=CostCost Price+CGST+SGSTPrice + CGST+SGST
=32000+2880+288032000 + 2880+2880 = 37760\bold{37760}

Chapter Test

Question 1

A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being ₹18000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the sales are intra-state and the rate of GST is 12%, find:
(i) the price inclusive of tax (under GST) at which the shopkeeper bought the machine.
(ii) the price which the consumer pays for the machine.
(iii) the tax (under GST) paid by the wholesaler to the State Government.
(iv) the tax (under GST) paid by the shopkeeper to the State Government.
(v) the tax (under GST) received by the Central Government.

Answer

It is a case of intra-state transaction of goods and services:
SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Printed price of the washing machine = ₹18000
Rate of discount for shopkeeper = 20%
Cost Price of washing machine for shopkeeper = PrintedPrinted PriceDiscountPrice - Discount
= 18000(20100×18000)=18000 - (\frac{20}{100}\times18000) =1440014400

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. Wholesaler sells the washing machine to shopkeeper for ₹14400, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST=6CGST = 6% of 14400=(6100)×14400=14400 = (\frac{6}{100})\times14400 =864864
SGST=6SGST = 6% of 14400=(6100)×14400=14400 = (\frac{6}{100})\times14400 =864864

∴ Amount of Input GST of Shopkeeper:

InputInput CGST=CGST =864864
InputInput SGST=SGST =864864

Since the shopkeeper sells the article to consumer at a discount of 10% on printed price, the selling price of article by shopkeeper ( or cost price for consumer):
= PrintedPrinted PriceDiscountPrice - Discount
= 18000(10100×18000)=18000 - (\frac{10}{100}\times18000) =1620016200

The amount of GST collected by shopkeeper (or paid by consumer):
CGST=6CGST = 6% of 16200=(6100)×16200=16200 = (\frac{6}{100})\times16200 =972972
SGST=6SGST = 6% of 16200=(6100)×16200=16200 = (\frac{6}{100})\times16200 =972972

∴ Amount of output GST of Shopkeeper:

OutputOutput CGST=972CGST = 972
OutputOutput SGST=972SGST = 972

(i) the price inclusive of tax (under GST) at which the shopkeeper bought the machine.
= Cost price of washing machine for Shopkeeper + CGST paid by shopkeeper + SGST paid by shopkeeper
= 14400+864+864=14400 + 864 + 864 = 16128\bold{16128}

(ii) the price which the consumer pays for the machine.
= Cost price of washing for consumer + CGST paid by consumer + SGST paid by consumer
=16200+972+972=16200 + 972 + 972 = 18144\bold{18144}

(iii) the tax (under GST) paid by the wholesaler to the state Government.

Calculated above:

= 864\bold{864}.

(iv) the tax (under GST) paid by the shopkeeper to the State Government.
= Output SGST of Shopkeeper - Input SGST of Shopkeeper
= 972864=972 - 864 = 108\bold{108}.

(v) the tax (under GST) received by the Central Government.
= CGST paid by Wholesaler + CGST paid by Shopkeeper
= 864+108=864 + 108 = 972\bold{972}.

Question 2

A manufacturer listed the price of his goods at ₹1600 per article. He allowed a discount of 25% to a wholesaler who in turn allowed a discount of 20% on the listed price to a retailer. The retailer sells one article to a consumer at a discount of 5% on the listed price. If all the sales are intra-state and the rate of GST is 5%, find:
(i) the price per article inclusive of tax (under GST) which the wholesaler pays.
(ii) the price per article inclusive of tax (under GST) which the retailer pays.
(iii) the amount which the consumer pays for the article.
(iv) the tax (under GST) paid by the wholesaler to the State Government for the article.
(v) the tax (under GST) paid by the retailer to the Central Government for the article.
(vi) the tax (under GST) received by the State Government.

Answer

It is a case of intra-state transaction of goods and services:

SGST=CGST=(12)×GSTSGST = CGST = (\frac{1}{2})\times GST

Given:
Listed Price of article by manufacturer = ₹1600
Discount percentage given by manufacturer to wholesaler = 25%
Cost Price for wholesaler = ListedListed PriceDiscountPrice - Discount
= 1600(25100×1600)=1600 - (\frac{25}{100}\times1600) =12001200

As the sales are intra-state and the rate of GST is 5%, so GST comprises of 2.5% as CGST and 2.5% as SGST. Manufacturer sells the article to wholesaler for ₹1200, amount of GST collected by manufacturer from wholesaler(or paid by wholesaler)

CGST=2.5CGST = 2.5% of 1200=(2.5100)×1200=1200 = (\frac{2.5}{100})\times1200 =3030
SGST=2.5SGST = 2.5% of 1200=(2.5100)×1200=1200 = (\frac{2.5}{100})\times1200 =3030

∴ Amount of Input GST of wholesaler:

Input CGST=Input\ CGST =3030
Input SGST=Input\ SGST =3030

Since the wholesaler sells the article to retailer at a discount of 20% on listed price, the selling price of article by wholesaler (or cost price for retailer):
= ListedListed PriceDiscountPrice - Discount
= 1600(20100×1600)=1600 - (\frac{20}{100}\times1600) =12801280

The amount of GST collected by wholesaler (or paid by retailer):
CGST=2.5CGST = 2.5% of 1280=(2.5100)×1280=321280 = (\frac{2.5}{100})\times1280 = 32
SGST=2.5SGST = 2.5% of 1280=(2.5100)×1280=321280 = (\frac{2.5}{100})\times1280 = 32

∴ Amount of output GST of wholesaler(or input GST of retailer):

OutputOutput CGST=32CGST = 32
OutputOutput SGST=32SGST = 32

Since the retailer sells the article to consumer at a discount of 5% on listed price, the selling price of article by retailer (or cost price for consumer):
= ListedListed PriceDiscountPrice - Discount
= 1600(5100×1600)=1600 - (\frac{5}{100}\times1600) =15201520

The amount of GST collected by retailer (or paid by consumer):
CGST=2.5CGST = 2.5% of 1520=(2.5100)×1520=381520 = (\frac{2.5}{100})\times1520 = 38
SGST=2.5SGST = 2.5% of 1520=(2.5100)×1520=381520 = (\frac{2.5}{100})\times1520 = 38

∴ Amount of output GST of retailer:

OutputOutput CGST=38CGST = 38
OutputOutput SGST=38SGST = 38

(i) the price per article inclusive of tax (under GST) which the wholesaler pays.
= Cost price of article for wholesaler + CGST paid by wholesaler + SGST paid by wholesaler
= 1200+30+30=1200 + 30 + 30 = 1260\bold{1260}

(ii) the price per article inclusive of tax (under GST) which the retailer pays.
= Cost price of article for retailer + CGST paid by retailer + SGST paid by retailer
= 1280+32+32=1280 + 32 + 32 = 1344\bold{1344}

(iii) the amount which the consumer pays for the article.
= Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer
=1520+38+38=1520 + 38 + 38 = 1596\bold{1596}

(iv) the tax (under GST) paid by the wholesaler to the State Government for the article.
= Output SGST of wholesaler - Input SGST of wholesaler
= 3230=32 - 30= 2\bold{2}

(v) the tax (under GST) paid by the retailer to the Central Government for the article.
= Output CGST of retailer - Input CGST of retailer
= 3832=38 - 32= 6\bold{6}

(vi) the tax (under GST) received by the State Government.
= SGST paid by the manufacturer + SGST paid by the wholesaler + SGST paid by the retailer
= 30+2+6=30 + 2 + 6= 38\bold{38}

Question 3

Mukerjee purchased a movie camera for ₹25488, which includes 10% rebate on the list price and 18% tax (under GST) on the remaining price. Find the marked price of the camera.

Answer

Given:
Rate of GST = 18%
Rebate(or discount) = 10% on Marked Price

Let the marked price be be P
Cost price of the article = MarkedMarked PriceDiscountPrice -Discount
= P10P - 10% ofof PP
= P(10100)×PP - (\frac{10}{100}) \times P
= (90P100)(\frac{90P}{100})
=0.9P0.9P

Amount of GST on cost price of article = 1818% ofof 0.9P0.9P

Amount paid by Mukerjee = CostCost Price+GSTPrice + GST = 2548825488
=0.9P+(18100×0.9P)0.9P+(\frac{18}{100}\times0.9P) = 2548825488
=0.9P+0.162P0.9P+ 0.162P = 2548825488
= 1.062P1.062P = 2548825488
= P=254881.062P = \frac{25488}{1.062} =24000\bold{24000}

Question 4

The marked price of an article is ₹7500. A shopkeeper buys the article from a wholesaler at some discount and sells it to a consumer at the marked price. The sales are intra-state and the rate of GST is 12%. If the shopkeeper pays ₹90 as tax (under GST) to the State Government, find:
(i) the amount of discount.
(ii) the price inclusive of tax (under GST) of the article which the shopkeeper paid to the wholesaler.

Answer

Given:
Marked Price of the article = ₹7500
Let discount rate be xx%

Cost price of article for shopkeeper = MarkedMarked PriceDiscountPrice - Discount
= 7500(x100×7500)7500-(\frac{x}{100}\times7500)
= 750075x7500 - 75x

As the sales are intra-state and the rate of GST is 12%, so GST comprises of 6% as CGST and 6% as SGST. wholesaler sells the article to shopkeeper for 750075x7500 - 75x, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST=6CGST = 6 % of (750075x)=(6100)×(750075x)=(4504.5x)(7500 - 75x) = (\frac{6}{100})\times(7500 - 75x) = (450 - 4.5x)
SGST=6SGST = 6 % of (750075x)=(6100)×(750075x)=(4504.5x)(7500 - 75x) = (\frac{6}{100})\times(7500 - 75x) = (450 - 4.5x)

∴ Amount of Input GST of shopkeeper:

InputInput CGST=4504.5xCGST = 450 - 4.5x
InputInput SGST=4504.5xSGST = 450 - 4.5x

Cost Price for Consumer = Marked Price of the article (as given in question) = 75007500

The amount of GST collected by shopkeeper (or paid by consumer):
CGST=6CGST = 6% of 7500=(6100)×7500=7500 = (\frac{6}{100})\times7500 =450450
SGST=6SGST = 6% of 7500=(6100)×7500=7500 = (\frac{6}{100})\times7500 =450450

∴ Amount of Output GST of shopkeeper:

OutputOutput CGST=CGST =450450
OutputOutput SGST=SGST =450450

As the shopkeeper pays a tax (under GST) of ₹90 to the State Government:

Tax paid to state government by shopkeeper:
= Output SGST of shopkeeper - Input SGST of shopkeeper = ₹90
= 450(4504.5x)=90450 - (450 - 4.5x) = 90
= 4.5x=904.5x = 90
= x=904.5=20x=\frac{90}{4.5} =20%

(i) the amount of discount.
= Rate of discount x Marked Price
=2020% of MarkedMarked PricePrice
= (20100)×(7500)(\frac{20}{100})\times(7500) = 1500\bold{1500}

(ii) the price inclusive of tax (under GST) of the article which the shopkeeper paid to the wholesaler.
= Cost price of article for shopkeeper + CGST paid by shopkeeper + SGST paid by shopkeeper
= (750075x)+(4504.5x)+(4504.5x)(7500 - 75x) + (450 - 4.5x) + (450 - 4.5x)
= (7500(75×20))+(450(4.5×20))+(450(4.5×20))(7500 - (75\times20)) + (450 - (4.5\times20)) + (450 - (4.5\times20))
= 6000+360+360=6000 + 360 + 360= 6720\bold{6720}

Question 5

A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10% on the printed price but due to competition in the market, he allows a discount of 5% on the marked price to a buyer. If the rate of GST is 12% and the buyer pays ₹468.16 for the article inclusive of tax (under GST), find
(i) the printed price of the article.
(ii) the profit percentage of the retailer.

Answer

Given:
Rate of GST = 12%
Discount for retailer = 15% on Printed Price

Let the printed price be be P
Cost price of the article for retailer = Printed Price - Discount

=P15% of P =P(15100)×P=(85P100)=0.85P= P - 15\% \text{ of P } \\ = P - (\dfrac{15}{100}) \times P \\ = (\dfrac{85P}{100}) \\ = 0.85P \\

Amount of GST on cost price of article paid by retailer(or collected by the wholesaler)
= 1212% ofof 0.85P0.85P = 12100×0.85P\dfrac{12}{100}\times{0.85P}
=0.102P0.102P

Since the retailer marks the price at 10% premium on printed price:
MarkedMarked Price=PrintedPrice= Printed Price+PremiumPrice + Premium
= P+10P + 10% ofof PP
= P+(10100)×PP + (\dfrac{10}{100}) \times P
= (110P100)(\dfrac{110P}{100})
= 1.1P1.1P

Discount given by retailer on marked price to the buyer = 5%
= 55% of MarkedMarked PricePrice
= 55% of 1.1P1.1P
= (5100)×1.1P(\dfrac{5}{100})\times{1.1P}
= (5.5P100)(\dfrac{5.5P}{100})
=0.055P0.055P

Cost Price of the article for the buyer:
MarkedMarked PriceDiscountPrice- Discount
= 1.1P0.055P1.1P- 0.055P
= 1.045P1.045P

Amount of GST on cost price of article paid by buyer(or collected by the retailer)
= 1212% ofof 1.045P1.045P = 12100×1.045P\dfrac{12}{100}\times{1.045P}
=0.1254P0.1254P

(i) the printed price of the article.

Amount paid by buyer for the article:
= CostCost Price+GSTPrice + GST = 468.16468.16
=1.045P+0.1254P1.045P+0.1254P = 468.16468.16
= 1.1704P1.1704P = 468.16468.16
= P=468.161.1704P = \dfrac{468.16}{1.1704} =400\bold{400}

(ii) the profit percentage of the retailer.

Cost Price of the article for the buyer = 1.045P1.045P
=1.045×4001.045\times400 = ₹418418

Cost Price of the article for the retailer = 1.045P1.045P
=0.85P0.85P
=0.85×4000.85\times400 = ₹340340

Profit of the retailer = Selling Price of the article for the retailer (or cost price of buyer) - Cost price of the article for the retailer
= 418340418 - 340 = ₹7878

Profit % of the retailer: = ProfitCost×100\dfrac{Profit}{Cost}\times{100}
= 78340×100=39017=221617\dfrac{78}{340}\times{100} = \dfrac{390}{17} =\bold{22\dfrac{16}{17}} %

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