A shopkeeper in Delhi buys an article at the printed price of ₹24000 from a wholesaler in Mumbai. The shopkeeper sells the article to a consumer in Delhi at a profit of 15% on the basic cost price. If the rate of GST is 12%, find:
(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.
(ii) The amount which the consumer pays for the article.
(iii) The amount of tax (under GST) received by the State Government of Delhi.
(iv) The amount of tax (under GST) received by the Central Government.

Question

A shopkeeper in Delhi buys an article at the printed price of ₹24000 from a wholesaler in Mumbai. The shopkeeper sells the article to a consumer in Delhi at a profit of 15% on the basic cost price. If the rate of GST is 12%, find:
(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.
(ii) The amount which the consumer pays for the article.
(iii) The amount of tax (under GST) received by the State Government of Delhi.
(iv) The amount of tax (under GST) received by the Central Government.

KnowledgeBoat · Accepted Answer

(i) Given: The printed price of article is 24000. The rate of GST on sale or purchase of article is 15%. Here the sales from wholesaler to shopkeeper is inter-state, so IGST is levied on that sale at 12%. Amount of IGST collected by wholesaler from shopkeeper(or paid by shopkeeper to wholesaler) IGST=12% of 24000 = x 24000 = 2880 Amount of Input IGST of shopkeeper: Input IGST = 2880 The amount inclusive of tax (under GST) at which the wholesaler bought the article: = Cost price of article for wholesaler + IGST paid by wholesaler = 24000 + 2880= ₹26880 (ii) As shopkeeper sells the article to consumer at 15% above the basic cost price. The selling price of article by shopkeeper(or cost price of article for consumer) = Cost Price + Premium As the shopkeeper sells the article to consumer in Delhi, so the sale is intra-state GST will be applied which as CGST at 6% and SGST at 6%. The amount of GST collected by shopkeeper (or paid by consumer): CGST = 6% of 27600 = x 27600 = 1656 SGST = 6% of 27600 = x 27600 = 1656 Amount of Output GST of shopkeeper: Output CGST = 1656 Output SGST = 1656 The amount which the consumer pays for the article: = Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer = 27600 + 1656 + 1656 = ₹30912 (iii) Since the transactions include both IGST and GST we need to apply input GST credit rules: First set off Input IGST against Output CGST: Balance Input IGST = Input IGST - Output CGST = 2880 - 1656 = 1224 Then set off Balance Input IGST against output SGST The amount of tax (under GST) received by the State Government of Delhi: Output SGST - Balance Input IGST = 1656 - 1224 = ₹432 (iv) The amount of tax (under GST) received by the Central Government. = IGST received from wholesaler + CGST received from shopkeeper = 2880 + 0 = ₹2880

Mathematics

GST

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