A dealer purchased a music system from the manufacturing company for ₹ 25000 and sold it to a consumer at a profit of 20%. If the rate of GST is 18%, calculate

(i) the amount of Input CGST and Input SGST for the dealer.

(ii) the amount of GST payable by dealer to the government.

(iii) the amount that the consumer had to pay for the music system.

[Assume that all the transactions take place in the same state]

Given:

Cost Price (CP) for the dealer = ₹ 25,000

GST rate = 18%

All transactions occur within the same state, so CGST and SGST are applicable.

CGST rate = SGST rate = $\dfrac{\text{GST rate}}{2} = \dfrac{18\%}{2}$ = 9%

The dealer makes a 20% profit while selling to consumer.

Selling Price (excluding GST) = ₹ 25,000 + 20% of ₹ 25,000

= ₹ 25,000 + $\dfrac{20}{100} \times 25,000$

= ₹ 25,000 + ₹ 5,000

= ₹ 30,000.

(i) For dealer :

On purchase price of ₹ 25,000.

Input CGST = 9% of ₹ 25,000 = $\dfrac{9}{100} \times 25,000$ = ₹ 2,250.

Input SGST = 9% of ₹ 25,000 = $\dfrac{9}{100} \times 25,000$ = ₹ 2,250.

Hence, for dealer input CGST = input SGST = ₹ 2,250.

(ii) Total input GST = ₹ 2,250 + ₹ 2,250 = ₹ 4,500.

Output GST (on dealer's sale)

On selling price of ₹ 30,000.

Output CGST = 9% of ₹ 30,000 = $\dfrac{9}{100} \times 30,000$ = ₹ 2,700

Output SGST = 9% of ₹ 30,000 = $\dfrac{9}{100} \times 30,000$ = ₹ 2,700

Total output GST = ₹ 2,700 + ₹ 2,700 = ₹ 5,400

GST payable by dealer to government = Output GST – Input GST

= ₹ 5,400 - ₹ 4,500

= ₹ 900.

Hence, GST payable by dealer to the government = ₹ 900.

(iii) Cost price for consumer = ₹ 30,000

GST for consumer = GST charged by dealer = ₹ 5,400

Total = ₹ 30,000 + ₹ 5,400 = ₹ 35,400.

Hence, amount consumer pays for the music system = ₹ 35,400.