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Mathematics

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

  1. ₹720
  2. ₹1440
  3. ₹2880
  4. ₹2160

GST

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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 = 9100\dfrac{9}{100} x 32000 = ₹2880

CGST = 9% of 32000 = 9100\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.

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