A shopkeeper buys a machine at a discount of 20% from the wholesaler. The printed price of the machine is ₹ 16,000 and the rate of GST is 8%. The shopkeeper sells it to the consumer at the printed price. Calculate :

(i) the price at which the machine is bought by the consumer

(ii) the CGST and the SGST payable by the shopkeeper to the Government assuming that all the transactions were intrastate.

Given :

Printed price = ₹ 16,000

Discount from wholesaler to shopkeeper = 20%

Discounted price = ₹ 16,000 - $\dfrac{20}{100} \times 16,000$

= ₹ 16,000 - ₹ 3,200

= ₹ 12,800.

C.P. for shopkeeper = ₹ 12,800

GST rate = 8%

Since, transaction is intrastate.

CGST = $\dfrac{8\%}{2}$ = 4%

SGST = $\dfrac{8\%}{2}$ = 4%

Shopkeeper sells at printed price, i.e., ₹ 16,000

(i) Cost price for consumer (excluding GST) = ₹ 16,000

GST = 8% of ₹ 16,000

= $\dfrac{8}{100} \times 16,000$

= ₹ 1,280

Final price paid by consumer = ₹ 16,000 + ₹ 1,280 = ₹ 17,280.

Hence, final price paid by consumer = ₹ 17,280.

(ii) Total GST collected by shopkeeper = ₹ 1,280

Since the transaction is intrastate, GST is divide equally between center and state.

Output CGST = $\dfrac{₹1,280}{2}$ = ₹ 640

Output SGST = $\dfrac{₹1,280}{2}$ = ₹ 640

C.P. for shopkeeper = ₹ 12,800

CGST paid (Input CGST) = 4% of ₹ 12,800

$= \dfrac{4}{100} \times 12,800$

= ₹ 512.

SGST paid (Input SGST) = 4% of ₹ 12,800

$= \dfrac{4}{100} \times 12,800$

= ₹ 512.

CGST payable = Output CGST - Input CGST = ₹ 640 - ₹ 512 = ₹ 128

SGST payable = Output CGST - Input CGST = ₹ 640 - ₹ 512 = ₹ 128.

Hence, net CGST payable = net SGST payable = ₹ 128.