The printed price of an article is ₹50000. The wholesaler allows a discount of 10% to a shopkeeper. The shopkeeper sells the article to a consumer at 4% above the marked price. If the sales are intra-state and the rate of GST is 18%, find:

(i) the amount inclusive of tax (under GST) which the shopkeeper pays for the article.

(ii) the amount paid by the consumer for the article.

(iii) the amount of tax (under GST) paid by the shopkeeper to the Central Government.

(iv) the amount of tax (under GST) received by the State Government.

It is a case of intra-state transaction of goods and services:
SGST = CGST = $\dfrac{1}{2}$ x GST

Given:
Marked price of the article = ₹50000
Rate of discount for shopkeeper = 10%
Cost Price of article for shopkeeper = Marked Price - Discount

$= 50000 - \Big(\dfrac{10}{100} \times 50000\Big) \\[0.5em] = 50000 - 5000 \\[0.5em] = ₹45000$

As the sales are intra-state and the rate of GST is 18%, so GST comprises of 9% as CGST and 9% as SGST. Wholesaler sells the article to shopkeeper for ₹45000, amount of GST collected by wholesaler from shopkeeper(or paid by shopkeeper)

CGST = 9% of 45000 = $\dfrac{9}{100}$ x 45000 = ₹4050

SGST = 9% of 45000 = $\dfrac{9}{100}$ x 45000 = ₹4050

∴ Amount of Input GST of Shopkeeper:

Input CGST = ₹4050
Input SGST = ₹4050

Since the shopkeeper sells the article to customer at a premium of 4% on marked price, the selling price of article by shopkeeper ( or cost price for consumer) = Marked Price + Premium

$= 50000 + (\dfrac{4}{100}\times50000) \\[0.5em] = 50000 + 2000 \\[0.5em] = ₹52000$

The amount of GST collected by shopkeeper (or paid by consumer):

CGST = 9% of 52000 = $\dfrac{9}{100}$ x 52000 = ₹4680

CGST = 9% of 52000 = $\dfrac{9}{100}$ x 52000 = ₹4680

∴ Amount of output GST of Shopkeeper:

Output CGST = ₹4680
Output SGST = ₹4680

(i) the amount inclusive of tax (under GST) which the shopkeeper pays for the article.
= Cost price of article for Shopkeeper + CGST paid by shopkeeper + SGST paid by shopkeeper
= 45000 + 4050 + 4050 = ₹53100

(ii) the amount paid by the consumer for the article.
= Cost price of article for consumer + CGST paid by consumer + SGST paid by consumer
=52000 + 4680 + 4680 = ₹61360

(iii) the amount of tax (under GST) paid by the shopkeeper to the Central Government.
= Output CGST of Shopkeeper - Input CGST of Shopkeeper
= 4680 - 4050 = ₹630.

(iv) the amount of tax (under GST) received by the State Government.
= SGST paid by Wholesaler + SGST paid by Shopkeeper
= 4050 + 630 = ₹4680.