Profit and Loss, Discount and Tax — Exercise 7(D)

In an intrastate transaction, goods worth ₹ 16,000 are bought. If the rate of GST is 5%. Find the amount of the bill.

Answer

Given:

Value of the goods = ₹ 16,000 and Rate of GST = 5%

GST = 5% of ₹ 16,000 = ₹ $\Big(\dfrac{5}{100} \times 16000\Big)$ = ₹ 800.

Amount of the bill = ₹ (16,000 + 800) = ₹ 16,800.

Hence, the amount of the bill is ₹ 16,800.

A customer buys a suitcase from a dealer at a discount of 8% on the marked price of ₹ 5,000. If the rate of GST is 12%, calculate:

(i) the tax (GST) that the customer has to pay for the purchase.

(ii) the total amount that the customer has to pay for the suitcase.

Answer

Given:

Marked price of the suitcase = ₹ 5,000, Discount = 8%, Rate of GST = 12%

Discount = 8% of ₹ 5,000 = ₹ $\Big(\dfrac{8}{100} \times 5000\Big)$ = ₹ 400.

Price after discount = ₹ (5,000 - 400) = ₹ 4,600.

(i) GST = 12% of ₹ 4,600 = ₹ $\Big(\dfrac{12}{100} \times 4600\Big)$ = ₹ 552.

Hence, the tax (GST) that the customer has to pay is ₹ 552.

(ii) Total amount paid by the customer = ₹ (4,600 + 552) = ₹ 5,152.

Hence, the total amount that the customer has to pay for the suitcase is ₹ 5,152.

A dealer in Jaipur sells a monitor to a customer in Jaipur at ₹ 7,200. If the rate of GST is 18%, find:

(i) IGST

(ii) CGST

(iii) SGST

(iv) the amount paid by the customer for the monitor.

Answer

Given:

Sale price of the monitor = ₹ 7,200 and Rate of GST = 18%

Since the dealer and the customer are both in Jaipur, it is a case of intrastate transaction.

(i) Since it is the case of intrastate transaction, so IGST = 0.

Hence, IGST = 0.

(ii) GST rate = 18%

⇒ CGST rate = 9% and SGST rate = 9%.

CGST = 9% of ₹ 7,200

= ₹ $\Big(\dfrac{9}{100} \times 7200\Big)$

= ₹ 648.

Hence, CGST = ₹ 648.

(iii) GST rate = 18%

SGST = 9% of ₹ 7,200

= ₹ $\Big(\dfrac{9}{100} \times 7200\Big)$

= ₹ 648.

Hence, SGST = ₹ 648.

(iv) Amount paid by the customer = Sale price + CGST + SGST

= ₹ (7,200 + 648 + 648) = ₹ 8,496.

Hence, the amount paid by the customer for the monitor is ₹ 8,496.

In an interstate transaction, goods worth ₹ 42,000 are bought at 25% discount. If the rate of GST is 12%, find:

(i) IGST

(ii) the amount of the bill.

Answer

Given:

Marked price of the goods = ₹ 42,000, Discount = 25%, Rate of GST = 12%

Discount = 25% of ₹ 42,000 = ₹ $\Big(\dfrac{25}{100} \times 42000\Big)$ = ₹ 10,500.

Price after discount = ₹ (42,000 - 10,500) = ₹ 31,500.

Since it is a case of interstate transaction, the whole GST is charged as IGST.

(i) IGST = 12% of ₹ 31,500 = ₹ $\Big(\dfrac{12}{100} \times 31500\Big)$ = ₹ 3,780.

Hence, IGST = ₹ 3,780.

(ii) Amount of the bill = ₹ (31,500 + 3,780) = ₹ 35,280.

Hence, the amount of the bill is ₹ 35,280.

An AC mechanic in Mumbai charges repairing cost from three different customers in Mumbai as below:

If the rate of GST is 18%, find:

(i) IGST

(ii) CGST

(iii) SGST

(iv) total amount of bill paid by each customer.

Answer

Given:

Rate of GST = 18%

Since the mechanic and all the three customers are in Mumbai, it is a case of intrastate transaction.

Let us first find the repairing cost of each customer after discount.

For Customer I:

Discount = 10% of ₹ 3,000 = ₹ $\Big(\dfrac{10}{100} \times 3000\Big)$ = ₹ 300.

Cost after discount = ₹ (3,000 - 300) = ₹ 2,700.

For Customer II:

Discount = 5% of ₹ 4,000 = ₹ $\Big(\dfrac{5}{100} \times 4000\Big)$ = ₹ 200.

Cost after discount = ₹ (4,000 - 200) = ₹ 3,800.

For Customer III:

Discount = 8% of ₹ 2,500 = ₹ $\Big(\dfrac{8}{100} \times 2500\Big)$ = ₹ 200.

Cost after discount = ₹ (2,500 - 200) = ₹ 2,300.

Total cost after discount = ₹ (2,700 + 3,800 + 2,300) = ₹ 8,800.

(i) Since it is the case of intrastate transaction, so IGST = 0.

Hence, IGST = 0.

(ii) GST rate = 18%

⇒ CGST rate = 9% and SGST rate = 9%.

CGST = 9% of ₹ 8,800

= ₹ $\Big(\dfrac{9}{100} \times 8800\Big)$

= ₹ 792.

Hence, CGST = ₹ 792.

(iii) GST rate = 18%

SGST = 9% of ₹ 8,800

= ₹ $\Big(\dfrac{9}{100} \times 8800\Big)$

= ₹ 792.

Hence, SGST = ₹ 792.

(iv) For Customer I:

CGST = 9% of ₹ 2,700 = ₹ 243 and SGST = 9% of ₹ 2,700 = ₹ 243.

Amount of the bill = ₹ (2,700 + 243 + 243) = ₹ 3,186.

For Customer II:

CGST = 9% of ₹ 3,800 = ₹ 342 and SGST = 9% of ₹ 3,800 = ₹ 342.

Amount of the bill = ₹ (3,800 + 342 + 342) = ₹ 4,484.

For Customer III:

CGST = 9% of ₹ 2,300 = ₹ 207 and SGST = 9% of ₹ 2,300 = ₹ 207.

Amount of the bill = ₹ (2,300 + 207 + 207) = ₹ 2,714.

Hence, the total amount of bill paid is ₹ 3,186 by Customer I, ₹ 4,484 by Customer II and ₹ 2,714 by Customer III.

A wholesaler in Agra (U.P) bought goods from a dealer in Ranchi (Jharkhand). He bought:

(a) 50 rings, marked ₹ 4,000 each, at a discount of 40%.

(b) 40 necklaces, marked ₹ 2,400 each, at a discount of 25%.

If the rate of GST on both the items is 18%, how much will the wholesaler at Agra pay to the dealer in Ranchi?

Answer

Given:

Rate of GST = 18%

Since Agra (U.P.) and Ranchi (Jharkhand) are in different states, it is a case of interstate transaction. So, the whole GST is charged as IGST.

For the rings:

Marked price of 50 rings = ₹ (4,000 × 50) = ₹ 2,00,000.

Discount = 40% of ₹ 2,00,000 = ₹ $\Big(\dfrac{40}{100} \times 200000\Big)$ = ₹ 80,000.

Price after discount = ₹ (2,00,000 - 80,000) = ₹ 1,20,000.

For the necklaces:

Marked price of 40 necklaces = ₹ (2,400 × 40) = ₹ 96,000.

Discount = 25% of ₹ 96,000 = ₹ $\Big(\dfrac{25}{100} \times 96000\Big)$ = ₹ 24,000.

Price after discount = ₹ (96,000 - 24,000) = ₹ 72,000.

Total price after discount = ₹ (1,20,000 + 72,000) = ₹ 1,92,000.

IGST = 18% of ₹ 1,92,000 = ₹ $\Big(\dfrac{18}{100} \times 192000\Big)$ = ₹ 34,560.

Amount of the bill = ₹ (1,92,000 + 34,560) = ₹ 2,26,560.

Hence, the wholesaler at Agra will pay ₹ 2,26,560 to the dealer in Ranchi.