Mathematics

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 tax (under GST) paid by the wholesaler to the Central Government is
₹90
₹9
₹99
₹180

GST

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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.

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