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.

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 machine 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