Goods & Services Tax — Exercise 1

An article is marked at ₹15000. A dealer sells it to a consumer at 10% profit. If the rate of GST is 12%, find:

(i) the selling price (excluding tax) of the article.

(ii) the amount of tax (under GST) paid by the consumer.

(iii) the total amount paid by the consumer.

Answer

Marked price of the article = ₹15000
Profit = 10%
Rate of GST = 12%

(i) Selling price of the article (excluding tax) = Marked Price + Profit

$= 15000 + \Big(\dfrac{10}{100} \times 15000\Big) \\[0.5em] = 15000 + 1500 \\[0.5em] = \bold{₹16500}$

(ii) The amount of tax (under GST) paid by the consumer

$= 12$

(iii) The total amount paid by the consumer = Selling price of the article + GST paid by the consumer
= ₹16500 + ₹1980
= ₹18480

A shopkeeper buy goods worth ₹4000 and sells these at a profit of 20% to a consumer in the same state. If GST is charged at 5%, find:

(i) the selling price (excluding tax) of the goods.

(ii) CGST paid by the consumer.

(iii) SGST paid by the consumer.

(iv) the total amount paid by the consumer.

Answer

Purchase price of goods = ₹4000
Profit Percentage = 20%
Rate of GST = 5%

As the sales are intra-state and the rate of GST is 5%, so GST comprises of CGST at 2.5% and SGST at 2.5%

(i) The selling price (excluding tax) of the goods = Purchase price + Profit

$= 4000 + \Big(\dfrac{20}{100} \times 4000\Big) \\[0.5em] = 4000 + 800 \\[0.5em] = \bold{₹4800}$

(ii) CGST = 2.5% of 4800 = $\dfrac{2.5}{100}$ x 4800 = ₹120

(iii) SGST = 2.5% of 4800 = $\dfrac{2.5}{100}$ x 4800 = ₹120

(iv) The total amount paid by the consumer = Selling price of the goods + GST paid by the consumer
= ₹4800 + CGST paid by the consumer + SGST paid by the consumer
= ₹4800 + ₹120 + ₹120
= ₹5040

Mr. Bedi visits the market and buys the following articles :

Medicines costing ₹950, GST @ 5%

A pair of shoes costing ₹3000, GST @ 18%

A laptop bag costing ₹1000 with a discount of 30%, GST @ 18%

(i) Calculate the total amount of GST paid .

(ii) The total bill amount including GST paid by Mr. Bedi.

Answer

(i) Given,

Cost of medicines = ₹ 950

GST amount for medicines = 5% of ₹ 950

= $\dfrac{5}{100} \times 950$

= $\dfrac{4750}{100}$

= ₹ 47.5

Cost of shoes = ₹ 3,000

GST amount for shoes = 18% of ₹ 3000

= $\dfrac{18}{100} \times 3000$

= $\dfrac{54000}{100}$

= ₹ 540

Cost of laptop bag = ₹ 1,000

Discount on laptop bag = 30% of ₹ 1,000

= $\dfrac{30}{100} \times 1000$

= ₹ 300.

Amount applicable for GST = ₹ 1,000 - ₹ 300 = ₹ 700.

GST amount for laptop bag = 18% of ₹ 700

= $\dfrac{18}{100} \times 700$

= ₹ 126.

Total amount of GST paid = ₹ 47.5 + ₹ 540 + ₹ 126 = ₹ 713.50

Hence, total amount of GST paid = ₹ 713.5.

(ii) The total bill amount including GST paid by Mr. Bedi = Cost of medicines + Cost of pair of shoes + Cost of laptop bag + Total amount of GST paid

= ₹ 950 + ₹ 3,000 + ₹ 700 + ₹ 713.50

= ₹ 5363.50

Hence, total bill amount including GST paid by Mr. Bedi = ₹5363.5.

A shopkeeper buys an article from a wholesaler for ₹20000 and sells it to a consumer at 10% profit. If the rate of GST is 12%, find the tax liability of the shopkeeper.

Answer

Purchase price of the article = ₹20000
Profit = 10%
Rate of GST = 12%

Amount of GST paid by the shopkeeper to the wholesaler

$= 12$

∴ Input GST of the shopkeeper = ₹2400

Selling price of the article (excluding tax) = Purchase Price + Profit

$= 20000 + \Big(\dfrac{10}{100} \times 20000\Big) \\[0.5em] = 20000 + 2000 \\[0.5em] = \bold{₹22000}$

Amount of GST collected by the shopkeeper from the consumer

$= 12$

∴ Output GST of the shopkeeper = ₹2640

Tax liability of the shopkeeper = Output GST - Input GST
= ₹2640 - ₹2400
= ₹240

A dealer buys an article for ₹6000 from a wholesaler. The dealer sells the article to a consumer at 15% profit. If the sales are intra-state and the rate of GST is 18%, find

(i) input CGST and input SGST paid by the dealer.

(ii) output CGST and output SGST collected by the dealer.

(iii) the net CGST and SGST paid by the dealer.

(iv) the total amount paid by the consumer.

Answer

Purchase price of the article = ₹6000
Profit = 15%
Rate of GST = 18%

As the sales are intra-state and the rate of GST is 18%, so GST comprises of CGST at 9% and SGST at 9%.

(i) Input CGST paid by the dealer

$= 9$

Input SGST paid by the dealer

$= 9$

(ii) Selling price of the article (excluding tax) = Purchase Price + Profit

$= 6000 + \Big(\dfrac{15}{100} \times 6000\Big) \\[0.5em] = 6000 + 900 \\[0.5em] = \bold{₹6900}$

Output CGST collected by the dealer

$= 9$

Output SGST collected by the dealer

$= 9$

(iii) Net CGST paid by the dealer = Output CGST - Input CGST
= ₹(621 - 540)
= ₹81

Net SGST paid by the dealer = Output SGST - Input SGST
= ₹(567 - 540)
= ₹81

(iv) The total amount paid by the consumer = Selling price of the article + GST paid by the consumer
= ₹6900 + CGST collected by the dealer + SGST collected by the dealer
= ₹6900 + ₹621 + ₹621
= ₹8142

A manufacturer buys raw material worth ₹7500 paying GST at the rate of 5%. He sells the finished product to a dealer at 40% profit. If the purchase and the sale both are intra-state and the rate of GST for the finished product is 12%, find:

(i) the input tax (under GST) paid by the manufacturer.

(ii) the output tax (under GST) collected by the manufacturer.

(iii) the tax (under GST) paid by the manufacturer to the Central and State Governments.

(iv) the amount paid by the dealer for the finished product.

Answer

Value of raw material = ₹7500
Rate of GST on raw material = 5%
Profit on finished product = 40%
Rate of GST on finished product = 12%

(i) The input tax (under GST) paid by the manufacturer:

As the purchase is intra-state and the rate of GST is 5%, so GST comprises of CGST at 2.5% and SGST at 2.5%.

Input CGST paid by the manufacturer

$= 2.5$

Input SGST paid by the manufacturer

$= 2.5$

(ii) The output tax (under GST) collected by the manufacturer:

Selling price of the product (excluding tax) = Purchase Price + Profit

$= 7500 + \Big(\dfrac{40}{100} \times 7500\Big) \\[0.5em] = 7500 + 3000 \\[0.5em] = \bold{₹10500}$

As the sale is intra-state and the rate of GST is 12%, so GST comprises of CGST at 6% and SGST at 6%.

Output CGST collected by the manufacturer

$= 6$

Output SGST collected by the manufacturer

$= 6$

(iii) The tax (under GST) paid by the manufacturer to the Central and State Governments:

Net CGST paid by the manufacturer = Output CGST - Input CGST
= ₹(630 - 187.5)
= ₹442.5

Net SGST paid by the manufacturer = Output SGST - Input SGST
= ₹(630 - 187.5)
= ₹442.5

∴ Amount of tax paid by the manufacturer to the Central and State Governments:

CGST = ₹442.5 to the Central government and

SGST = ₹442.5 to the State government

(iv) The amount paid by the dealer for the finished product
= Selling price of the finished product + GST paid by the dealer
= ₹10500 + CGST collected by the manufacturer + SGST collected by the manufacturer
= ₹10500 + ₹630 + ₹630
= ₹11760

A manufacturer sells a mobile phone 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 mobile phone

Answer

It is a case of intra-state transaction of goods and services:
SGST = CGST = $\dfrac{1}{2}$ x 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 = 6% of 18000 = $\dfrac{6}{100}$ x 18000 = ₹1080

SGST = 6% of 18000 = $\dfrac{6}{100}$ x 18000 = ₹1080

∴ Amount of Input GST of dealer:

Input CGST = ₹1080
Input SGST = ₹1080

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 = ₹19500.

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

CGST = 6% of 19500 = $\dfrac{6}{100}$ x 19500 = ₹1170

SGST = 6% of 19500 = $\dfrac{6}{100}$ x 19500 = ₹1170

∴ Amount of output GST of dealer:

Output CGST = ₹1170
Output SGST = ₹1170

(i) Amount of GST paid by dealer to the State Government
= SGST paid by dealer to the State Government
= Output SGST - Input SGST = 1170 - 1080 = ₹90.

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

(iii) Amount of GST received by the State Government:
= SGST paid by Manufacturer + SGST paid by Dealer
= 1080 + 90 = ₹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 = ₹21840

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 = $\dfrac{1}{2}$ x GST

Given:
Printed price of the camera = 1600
Rate of discount shopkeeper = 20%
Cost Price of camera for shopkeeper = Printed Price - Discount

$= 1600 - \Big(\dfrac{20}{100} \times 1600\Big) \\[0.5em] = 1600 - 320 \\[0.5em] = ₹1280$

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 = 6% of 1280 = $\dfrac{6}{100}$ x 1280 = ₹76.80

SGST = 6% of 1280 = $\dfrac{6}{100}$ x 1280 = ₹76.80

∴ Amount of Input GST of Shopkeeper:

Input CGST = ₹76.80
Input SGST = ₹76.80

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

CGST = 6% of 1600 = $\dfrac{6}{100}$ x 1600 = ₹96

SGST = 6% of 1600 = $\dfrac{6}{100}$ x 1600 = ₹96

∴ Amount of output GST of shopkeeper:
Output CGST = ₹96
Output SGST = ₹96

(i) GST paid by shopkeeper to the Central Government
= CGST paid by shopkeeper to the Central Government
= Output CGST - Input CGST = 96 - 76.80 = ₹19.20

(ii) GST received by the Central Government:
= CGST paid by Wholesaler + CGST paid by Shopkeeper
=76.80 + 19.20 = ₹96

(iii) GST received by the State Government:
= SGST paid by Wholesaler + SGST paid by Shopkeeper
=76.80 + 19.20 = ₹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 = ₹1792

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 = $\dfrac{1}{2}$ x GST

Given:
Marked price of the article = ₹6000
Rate of discount for dealer = 30%
Cost Price of article for dealer = Marked Price - Discount

$= 6000 - \Big(\dfrac{30}{100} \times 6000\Big) \\[0.5em] = 6000 - 1800 = ₹4200$

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 = 2.5% of 4200= $\dfrac{2.5}{100}$ x 4200 = ₹105

SGST = 2.5% of 4200= $\dfrac{2.5}{100}$ x 4200 = ₹105

∴ Amount of Input GST of dealer:

Input CGST = ₹105
Input SGST = ₹105

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):
= Marked Price - Discount $= 6000 - \Big(\dfrac{10}{100}\times6000\Big) \\[0.5em] = 6000 - 600 \\[0.5em] = ₹5400$

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

CGST = 2.5% of 5400= $\dfrac{2.5}{100}$ x 5400 = ₹135

SGST = 2.5% of 5400= $\dfrac{2.5}{100}$ x 5400 = ₹135

∴ Amount of output GST of dealer:

Output CGST = ₹135
Output SGST = ₹135

(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 = ₹5670

(ii) the tax (under GST) paid by the dealer to the State Government.
= Output SGST of dealer - Input SGST of dealer
=135 - 105 = ₹30

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

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 = $\dfrac{1}{2}$ x GST

Given:
Marked price of the article = ₹50000
Rate of discount for shopkeeper = 10%
Cost Price of article for shopkeeper = Marked Price - Discount

$= 50000 - \Big(\dfrac{10}{100} \times 50000\Big) \\[0.5em] = 50000 - 5000 \\[0.5em] = ₹45000$

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 = 9% of 45000 = $\dfrac{9}{100}$ x 45000 = ₹4050

SGST = 9% of 45000 = $\dfrac{9}{100}$ x 45000 = ₹4050

∴ Amount of Input GST of Shopkeeper:

Input CGST = ₹4050
Input SGST = ₹4050

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) = Marked Price + Premium

$= 50000 + (\dfrac{4}{100}\times50000) \\[0.5em] = 50000 + 2000 \\[0.5em] = ₹52000$

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

CGST = 9% of 52000 = $\dfrac{9}{100}$ x 52000 = ₹4680

CGST = 9% of 52000 = $\dfrac{9}{100}$ x 52000 = ₹4680

∴ Amount of output GST of Shopkeeper:

Output CGST = ₹4680
Output SGST = ₹4680

(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 = ₹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 = ₹61360

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

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

A retailer buys a machine from a wholesaler for ₹40000. He marks the price of machine 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 machine

(ii) the amount which the consumer pays for the machine

(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 = $\dfrac{1}{2}$ x GST

Given:
Cost Price of machine for retailer = ₹40000
Premium percentage by retailer = 15%
Marked price of the T.V by retailer = Cost Price + Premium

$= 40000 + \Big(\dfrac{15}{100}\times40000\Big) \\[0.5em] = 40000 + 6000 \\[0.5em] = ₹46000$

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 machine to retailer for ₹40000, amount of GST collected by wholesaler from retailer(or paid by retailer)

CGST = 6% of 40000 = $\dfrac{6}{100}$ x 40000 = ₹2400

SGST = 6% of 40000 = $\dfrac{6}{100}$ x 40000 = ₹2400

∴ Amount of Input GST of retailer:

Input CGST = ₹2400
Input SGST = ₹2400

Since the retailer sells the machine to consumer at a discount of 5% on marked price, the selling price of machine by retailer (or cost price for consumer) = Marked Price - Discount

$= 46000 - (\dfrac{5}{100}\times46000) \\[0.5em] = 46000 - 2300 \\[0.5em] = ₹43700$

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

CGST = 6% of 43700 = $\dfrac{6}{100}$ x 43700 = ₹2622

SGST = 6% of 43700 = $\dfrac{6}{100}$ x 43700 = ₹2622

∴ Amount of output GST of retailer:

Output CGST = ₹2622
Output SGST = ₹2622

(i) the marked price of the machine
= ₹46000

(ii) the amount which the consumer pay for the machine
= Cost price of machine for consumer + CGST paid by consumer + SGST paid by consumer
=43700 + 2622 + 2622 = ₹48944

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

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

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. 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 article.

(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 = $\dfrac{1}{2}$ x GST

Given:
Cost Price of article for shopkeeper = ₹12000
Premium percentage by shopkeeper = 25%
Marked price of the T.V by shopkeeper = Cost Price + Premium $= 12000 + \Big(\dfrac{25}{100}\times12000\Big) \\[0.5em] = 12000 + 3000 \\[0.5em] = ₹15000$

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 article to shopkeeper for ₹12000, amount of GST collected by manufacturer from shopkeeper(or paid by shopkeeper)

CGST = 6% of 12000 = $\dfrac{6}{100}$ x 12000 = ₹720

SGST = 6% of 12000 = $\dfrac{6}{100}$ x 12000 = ₹720

∴ Amount of Input GST of shopkeeper:

Input CGST = ₹720
Input SGST = ₹720

Since the shopkeeper sells the article to consumer at a discount of 10% on marked price, and further off season discount of 5% on balance, the selling price of article by shopkeeper (or cost price for consumer) = Balance = Marked Price - Discount

$= 15000 - \Big(\dfrac{10}{100}\times15000\Big) \\[0.5em] = 15000 - 1500 \\[0.5em] = ₹13500$

Selling Price by shopkeeper (or cost price for consumer) = Balance Price - Off season discount

$= 13500 - (\dfrac{5}{100}\times13500) \\[0.5em] = 13500 - 675 \\[0.5em] = ₹12825$

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

CGST = 6% of 12825 = $\dfrac{6}{100}$ x 12825 = ₹769.50

SGST = 6% of 12825 = $\dfrac{6}{100}$ x 12825 = ₹769.50

∴ Amount of output GST of shopkeeper:

Output CGST = ₹769.50
Output SGST = ₹769.50

(i) the price inclusive of tax (under GST) which the consumer pays for the article
= Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer
= 12825 + 769.50 + 769.50 = ₹14364

(ii) the amount of tax (under GST) paid by the shopkeeper to the State Government.
= Output SGST of shopkeeper - Input SGST of shopkeeper
= 769.50 - 720 = ₹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 = ₹769.50

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 = Printed Price-Discount

$= 40000 - \Big(\dfrac{10}{100} \times 40000\Big) \\[0.5em] = 40000 - 4000 \\[0.5em] = ₹36000$

Amount of IGST collected by manufacturer from wholesaler(or paid by wholesaler to manufacturer)
IGST=18% of 36000 = $\dfrac{18}{100}$ x 36000 = ₹6480

∴ Amount of Input GST of wholesaler:

Input IGST = ₹6480

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= ₹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) = Printed Price + Premium

$= 40000 +(\dfrac{5}{100}\times40000) \\[0.5em] = 40000 + 2000 \\[0.5em] = ₹42000$

Amount of IGST collected by wholesaler from retailer(or paid by retailer to wholesaler)
IGST=18% of 42000 = $\dfrac{18}{100}$ x 42000 = ₹7560

∴ Amount of Output GST of wholesaler:

Output IGST = ₹7560

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= ₹49560

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

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

A dealer in Delhi buys fertiliser for ₹16000 from a wholesaler in Delhi. He sells it to a farmer in Rajasthan at a profit of 25%. If the rate of GST is 5%, find:

(i) the tax (under GST) paid by the wholesaler to Governments.

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

(iii) the amount which the farmer pay for the fertiliser.

Answer

(i) As the dealer in Delhi buys the fertiliser for ₹16000 from a wholesaler in Delhi, so this sale is intra-state.
Rate of GST is 5%. So GST comprises of CGST at 2.5% and SGST at 2.5%

CGST collected by the wholesaler = 2.5% of 16000 = $\dfrac{2.5}{100}$ x 16000 = ₹400

SGST collected by the wholesaler = 2.5% of 16000 = $\dfrac{2.5}{100}$ x 16000 = ₹400

∴ Amount of tax paid by the wholesaler to the Central and State Governments:

CGST = ₹400 to the Central government and

SGST = ₹400 to the Delhi government

(ii) Selling price of the fertiliser by the dealer to the farmer = Purchase price + Profit

$= 16000 + \Big(\dfrac{25}{100} \times 16000\Big) \\[0.5em] = 16000 + 4000 \\[0.5em] = \bold{₹20000}$

As the dealer sells the fertiliser to a farmer in Rajasthan, so this sale is inter-state.
Rate of GST is 5%. So, on this sale IGST is levied at 5%.

IGST collected by the dealer from the farmer = 5% of 20000 = $\dfrac{5}{100}$ x 20000 = ₹1000

Input GST of the dealer = CGST + SGST = ₹400 + ₹400 = ₹800

Output GST of the dealer = IGST = ₹1000

Net tax liability of the dealer = Output GST - Input GST
= ₹1000 - ₹800 = ₹200

∴ The dealer pays ₹200 IGST to the Central Government.

(iii) The total amount paid by the farmer = Selling price of the fertiliser + GST paid by the farmer
= ₹20000 + IGST collected by the dealer
= ₹20000 + ₹1000
= ₹21000

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=12% of 24000 = $\dfrac{12}{100}$ x 24000 = ₹2880

∴ Amount of Input IGST of shopkeeper:

Input IGST = ₹2880

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= ₹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) = Cost Price + Premium

$= 24000 + \Big(\dfrac{15}{100}\times24000\Big) \\[0.5em] = 24000 + 3600 \\[0.5em] = ₹27600$

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 = $\dfrac{6}{100}$ x 27600 = ₹1656

SGST = 6% of 27600 = $\dfrac{6}{100}$ x 27600 = ₹1656

∴ Amount of Output GST of shopkeeper:

Output CGST = ₹1656
Output SGST = ₹1656

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 = ₹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
= 2880 - 1656 = ₹1224

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
= 1656 - 1224 = ₹432

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

A dealer in Maharashtra buys an article from a wholesaler in Mumbai at a discount of 20%, the printed price of the article being ₹ 20,000. He sells the article to a customer in Telangana at a discount of 10% on the printed price. If the rate of GST is 12%, find :

(i) The tax (under GST) paid by wholesaler to the Government.

(ii) The tax (under GST) paid by the dealer to the Government.

(iii) The amount which the consumer pays for the article.

Answer

(i) As the dealer in Maharashtra buys an article from a wholesaler in Maharashtra, so this sale is intra-state.

Rate of GST is 12%. So GST comprises of CGST at 6% and SGST at 6%.

Printed price of the article = ₹ 20,000

Discount = 20%

Purchase price of the article for the dealer = Printed price - Discount

= ₹ 20,000 - 20% of ₹ 20,000

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

= ₹ 20,000 - ₹ 4,000

= ₹ 20,000 - ₹ 4,000

= ₹ 16,000

CGST collected by the wholesaler = 6% of 16000 = $\dfrac{6}{100}$ x 16000 = ₹ 960

SGST collected by the wholesaler = 6% of 16000 = $\dfrac{6}{100}$ x 16000 = ₹ 960.

Hence, tax paid by the wholesaler to the government is CGST = ₹ 960 and SGST = ₹ 960.

(ii) The dealer sells the article at a discount of 10% on the printed price.

∴ Selling price of the article by the dealer to the consumer = Printed price - Discount

= ₹ 20,000 - 10% of ₹ 20,000

= ₹ 20,000 - $\dfrac{10}{100} \times 20,000$

= ₹ 20000 - ₹ 2,000

= ₹ 18,000

As the dealer in Maharashtra sells the article to a consumer in Telengana, so this sale is inter-state.

Rate of GST is 12%. So, on this sale IGST is levied at 12%.

IGST collected by the dealer from the consumer = 12% of ₹ 18,000

= $\dfrac{12}{100}$ x ₹ 18,000

= ₹ 2160.

Input GST of the dealer = CGST + SGST = ₹ 960 + ₹ 960 = ₹ 1,920

Output GST of the dealer = IGST = ₹ 2,160

Net tax liability of the dealer = Output GST - Input GST

= ₹ 2,160 - ₹ 1,920 = ₹ 240

Hence, the dealer pays ₹ 240 IGST to the Central Government.

(iii) The total amount paid by the consumer = Selling price of the article + GST paid by the consumer

= ₹ 18,000 + ₹ 2,160

= ₹ 20,160

Hence, the amount which the consumer pays for the article = ₹ 20,160.

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 = 18%
Rebate(or discount) = 10% on Marked Price

Let the marked price be P
Cost price of the article = Marked Price - Discount

$= \text{P} - 10$

Amount of GST on cost price of article = 18% of 0.9P

Amount paid by Kiran = Cost Price + GST = 5310

$\Rightarrow 0.9\text{P} + \Big(\dfrac{18}{100}\times0.9\text{P}\Big) = 5310 \\[0.5em] \Rightarrow 0.9\text{P} + 0.162\text{P} = 5310 \\[0.5em] \Rightarrow 1.062\text{P} = 5310 \\[0.5em] \Rightarrow \text{P} = \dfrac{5310}{1.062} = \bold{₹5000}$

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 $x$%

Cost price of article for shopkeeper = List Price - Discount

$= 8000 - \Big(\dfrac{x}{100}\times8000\Big) \\[0.5em] = 8000 - 80x$

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 $8000 - 80x$, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST = $9$% of $(8000 - 80x)$ = $\dfrac{9}{100}\times(8000 - 80x)$ = $(720 - 7.2x)$

SGST = $9$% of $(8000 - 80x)$ = $\dfrac{9}{100}\times(8000 - 80x)$ = $(720 - 7.2x)$

∴ Amount of Input GST of shopkeeper:

Input CGST = $720 - 7.2x$
Input SGST = $720 - 7.2x$

Cost Price for Consumer = List Price of the article (as given in question) = 8000

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

CGST = 9% of 8000 = $\dfrac{9}{100}$ x 8000 = ₹720

SGST = 9% of 8000 = $\dfrac{9}{100}$ x 8000 = ₹720

∴ Amount of Output GST of shopkeeper:

Output CGST = ₹720
Output SGST = ₹720

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

$\Rightarrow 720 - (720 - 7.2x) = 72. \\[0.5em] \Rightarrow 7.2x = 72 \\[0.5em] \Rightarrow x=\dfrac{72}{7.2} =\bold{10}$