KnowledgeBoat Logo
|

Mathematics

A manufacturer sells a dish washer to a wholesaler for ₹ 18,000. The wholesaler sells it to a dealer at a profit of ₹ 1,500 and the dealer sells it to a consumer at a profit of ₹ 2,500. If the rate of GST is 12% and assuming that all transactions occur within the same state, calculate:

(i) the total amount of GST received by the central and the state governments on the sale of this dish washer from the manufacturer to the consumer.

(ii) the amount paid by the consumer for the dish washer.

GST

6 Likes

Answer

(i) Given :

Manufacturer's selling price = ₹ 18,000

Wholesaler's profit = ₹ 1,500

Dealer's profit = ₹ 2,500

GST rate = 12%

Wholesaler's selling price = ₹ 18,000 + ₹ 1,500 = ₹ 19,500

Dealer's selling price = ₹ 19,500 + ₹ 2,500 = ₹ 22,000

GST = 12% of ₹ 22,000

= ₹ 22,000 × 12100\dfrac{12}{100}

= ₹ 2,640

In case of intra-state transaction GST is equally divided between center and state.

CGST = SGST = 26402\dfrac{2640}{2} = ₹ 1,320.

Hence, CGST = SGST = ₹ 1,320.

(ii) Amount paid by the consumer = Cost price + Total GST

= ₹ 22,000 + ₹ 2,640 = ₹ 24,640.

Hence, amount paid by the consumer = ₹ 24,640.

Answered By

2 Likes


Related Questions