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Mathematics

Goods/services are sold from Kota (Rajasthan) to Mumbai for ₹ 20,000 and then from Mumbai to Pune. If the rate of GST is 12% and the profit made at Mumbai is ₹ 5,000; find the net GST paid at Pune, if the dealer at Pune does not sell the goods further.

GST

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Answer

First transaction is an inter-state transaction

For dealer in Mumbai

C.P. = ₹ 20000

IGST = 12% of ₹ 20000 = ₹ 2400

Given,

Profit = ₹ 5000

S.P. = ₹ 20000 + ₹ 5000 = ₹ 25000.

Second transaction is an intra-state transaction

Now for dealer in Pune

C.P. = ₹ 25000

CGST = 6% of ₹ 25000 = ₹ 1500.

SGST = CGST = ₹ 1500.

∴ GST paid by end user at Pune is ₹ 1500 + ₹ 1500 = ₹ 3000.

Hence, GST paid by dealer at Pune is ₹ 3000.

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