Goods & Services Tax — Multiple Choice Questions

A retailer purchases a spectacles 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:

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

1. ₹1500
2. ₹1650
3. ₹1848
4. ₹1800

Answer

Given:

Cost price for retailer = ₹1500
Profit % of retailer on cost price = 10%

∴ Selling price of the spectacles by retailer (excluding tax) = Cost Price + Profit

$= 1500 + 10$

∴ Option 2 is the correct option.

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

1. ₹1650
2. ₹1800
3. ₹1848
4. ₹1830

Answer

From Question 1:
Selling price of the spectacles 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 spectacles to consumer for ₹1650, amount of GST collected by retailer from consumer(or paid by consumer):

CGST = 6% of 1650 = $\dfrac{6}{100}$ x 1650 = ₹99

SGST = 6% of 1650 = $\dfrac{6}{100}$ x 1650 = ₹99

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

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

= Cost price of spectacles for consumer + CGST paid by consumer + SGST paid by consumer
= 1650 + 99 + 99 = ₹1848

∴ Option 3 is the correct option.

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

1. ₹90
2. ₹9
3. ₹99
4. ₹180

Answer

Given:

Selling price (excluding tax) for wholesaler = ₹1500

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 spectacles to retailer for ₹1500, amount of GST collected by wholesaler from retailer (or paid by retailer):

CGST = 6% of 1500 = $\dfrac{6}{100}$ x 1500 = ₹90

SGST = 6% of 1500 = $\dfrac{6}{100}$ x 1500 = ₹90

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

∴ The tax (under GST) paid by the wholesaler to the Central Government is = CGST = ₹90

∴ Option 1 is the correct option.

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

1. ₹99
2. ₹9
3. ₹18
4. ₹198

Answer

From Question 1 and Question 3:

For Retailer:
Input SGST = 90
Output SGST = 99

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

Output SGST - Input SGST
= 99 - 90 = ₹9

∴ Option 2 is the correct option.

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

1. ₹18
2. ₹198
3. ₹90
4. ₹99

Answer

From Question 3:
The tax (under GST) paid by the wholesaler to the Central Government is = ₹90

From Question 4:
The tax (under GST) paid by the retailer to the State Government is = ₹9

as CGST = SGST
∴ The tax (under GST) paid by the retailer to the Central Government is = ₹9

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

∴ Option 4 is the correct option.

The cost of spectacles to the consumer inclusive of tax is

1. ₹1650
2. ₹1800
3. ₹1830
4. ₹1848

Answer

From Question 1:
Selling price of the spectacles 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 spectacles to consumer for ₹1650, amount of GST collected by retailer from consumer (or paid by consumer):

CGST = 6% of 1650 = $\dfrac{6}{100}$ x 1650 = ₹99

SGST = 6% of 1650 = $\dfrac{6}{100}$ x 1650 = ₹99

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

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

∴ Option 4 is the correct option.

A shopkeeper bought a machine from a distributor at a discount of 25% of the listed price of ₹32000. The shopkeeper sells the machine 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:

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

1. ₹32000
2. ₹24000
3. ₹28320
4. ₹26160

Answer

Given:
Listed price of machine = ₹32000
Discount given by distributor to shopkeeper = 25% of Listed price $= \Big(\dfrac{25}{100}\Big) \times 32000 \\[0.5em] = 0.25 \times 32000 \\[0.5em] = ₹8000$

Selling price for distributer excluding tax (or cost price for shopkeeper) = Listed Price - Discount
= 32000 - 8000
= ₹24000

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 machine to shopkeeper for ₹24000, amount of GST collected by distributor from shopkeeper(or paid by shopkeeper):

CGST = 9% of 24000 = $\dfrac{9}{100}$ x 24000 =₹2160

SGST = 9% of 24000 = $\dfrac{9}{100}$ x 24000 =₹2160

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

∴ The selling price of machine including tax (under GST) by the distributor = Selling Price + CGST + SGST
= 24000 + 2160+2160
= ₹28320

∴ Option 3 is the correct option.

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

1. ₹4320
2. ₹2160
3. ₹2880
4. ₹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 machine to shopkeeper for ₹24000, amount of SGST collected by distributor from shopkeeper (or paid by shopkeeper):

SGST = 9% of 24000 = $\dfrac{9}{100}$ x 24000 = ₹2160

∴ Option 2 is the correct option.

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

1. ₹720
2. ₹1440
3. ₹2880
4. ₹2160

Answer

Given:

Selling Price of shopkeeper without tax to consumer = Listed Price = ₹32000

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 machine to consumer for ₹32000, amount of SGST collected by shopkeeper from consumer(or paid by consumer):

SGST = 9% of 32000 = $\dfrac{9}{100}$ x 32000 = ₹2880

CGST = 9% of 32000 = $\dfrac{9}{100}$ x 32000 = ₹2880

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

From Question 7:

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

The tax (under GST) paid by the shopkeeper to the Central Government = Output CGST - Input CGST
= 2880 - 2160
= ₹720

∴ Option 1 is the correct option.

The tax (under GST) received State Government is

1. ₹5760
2. ₹4320
3. ₹1440
4. ₹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 by State Government = SGST paid by distributor + SGST paid by shopkeeper
= 2160 + 720
= ₹2880

∴ Option 4 is the correct option.

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

1. ₹28320
2. ₹37760
3. ₹34880
4. ₹32000

Answer

Given:

Listed price of machine = ₹32000

Selling price for shopkeeper excluding tax (or cost price for consumer) = Listed Price = ₹32000

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 machine to consumer for ₹32000, amount of GST collected by shopkeeper from consumer(or paid by consumer):

CGST = 9% of 32000 = $\dfrac{9}{100} \times$ 32000 = ₹2880

SGST = 9% of 32000 = $\dfrac{9}{100} \times$ 32000 = ₹2880

∴ The price including tax (under GST) of the machine paid by the consumer is = Cost Price + CGST + SGST
= 32000 + 2880 + 2880
= ₹37760

∴ Option 2 is the correct option.

For an Intra-state sale, the CGST paid by a dealer to the Central government is ₹120. If the marked price of the article is ₹2000, the rate of GST is:

1. 6%

2. 10%

3. 12%

4. 16.67%

Answer

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

Substituting values we get :

CGST% = $\dfrac{120}{2000} \times 100$ = 6%

GST% = 2 × CGST% = 2 × 6% = 12%.

Hence, Option 3 is the correct option.

An article which is marked at ₹ 1200 is available at a discount of 20% and the rate of GST is 18%. The amount of SGST is :

1. ₹ 216.00

2. ₹ 172.80

3. ₹ 108.00

4. ₹ 86.40

Answer

M.P. = ₹ 1200

Discount = 20% = $\dfrac{20}{100} \times 1200$ = ₹ 240

Price after discount = ₹ 1200 - ₹ 240 = ₹ 960.

GST = 18%

SGST = $\dfrac{GST}{2} = \dfrac{18}{2}$ % = 9%

= $\dfrac{9}{100} \times 960$

= 9 × 9.6

= ₹ 86.40

Hence, Option 4 is the correct option.