A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being ₹18000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the sales are intra-state and the rate of GST is 12%, find:

(i) the price inclusive of tax (under GST) at which the shopkeeper bought the machine.

(ii) the price which the consumer pays for the machine.

(iii) the tax (under GST) paid by the wholesaler to the State Government.

(iv) the tax (under GST) paid by the shopkeeper to the State Government.

(v) the tax (under GST) received by the Central Government.

It is a case of intra-state transaction of goods and services:

SGST = CGST = $\dfrac{1}{2} \times$ GST

Given:
Printed price of the washing machine = ₹18000
Rate of discount for shopkeeper = 20%
Cost Price of washing machine for shopkeeper = Printed Price - Discount

$= 18000 - \Big(\dfrac{20}{100} \times 18000 \Big) \\[0.5em] = 18000 - 3600 \\[0.5em] = ₹14400$

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 washing machine to shopkeeper for ₹14400, amount of GST collected by wholesaler from shopkeeper (or paid by shopkeeper)

CGST = 6% of 14400 = $\dfrac{6}{100} \times$ 14400 = ₹864

SGST = 6% of 14400 = $\dfrac{6}{100} \times$ 14400 = ₹864

∴ Amount of Input GST of Shopkeeper:

Input CGST = ₹864
Input SGST = ₹864

Since the shopkeeper sells the article to consumer at a discount of 10% on printed price, the selling price of article by shopkeeper ( or cost price for consumer) = Printed Price - Discount

$= 18000 - \Big(\dfrac{10}{100}\times18000\Big) \\[0.5em] = 18000 - 1800 \\[0.5em] = ₹16200$

The amount of GST collected by shopkeeper (or paid by consumer):

CGST = 6% of 16200 = $\dfrac{6}{100} \times$ 16200 = ₹972

SGST = 6% of 16200 = $\dfrac{6}{100} \times$ 16200 = ₹972

∴ Amount of output GST of Shopkeeper:

Output CGST = 972
Output SGST = 972

(i) the price inclusive of tax (under GST) at which the shopkeeper bought the machine
= Cost price of washing machine for Shopkeeper + CGST paid by shopkeeper + SGST paid by shopkeeper
= 14400 + 864 + 864
= ₹16128

(ii) the price which the consumer pays for the machine
= Cost price of washing for consumer + CGST paid by consumer + SGST paid by consumer
= 16200 + 972 + 972
= ₹18144

(iii) the tax (under GST) paid by the wholesaler to the state Government.

Calculated above:

= ₹864.

(iv) the tax (under GST) paid by the shopkeeper to the State Government.
= Output SGST of Shopkeeper - Input SGST of Shopkeeper
= 972 - 864 = ₹108.

(v) the tax (under GST) received by the Central Government.
= CGST paid by Wholesaler + CGST paid by Shopkeeper
= 864 + 108 = ₹972.