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 distributor to the State Government is
₹4320
₹2160
₹2880
₹720

Question

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 distributor to the State Government is
₹4320
₹2160
₹2880
₹720

KnowledgeBoat · Accepted 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 = x 32000 = 2880 CGST = 9% of 32000 = 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.

Mathematics

GST

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