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Mathematics

Three friends A, B and C live in Delhi. A sells medicine worth ₹ 50,000 to B, B sells the same medicine to C at profit of ₹ 6,000. If rate of GST is 12%, then :

(i) SGST paid by B is :

  1. ₹ 300

  2. ₹ 360

  3. ₹ 400

  4. ₹ 425

(ii) Total CGST is :

  1. ₹ 2,600

  2. ₹ 2,700

  3. ₹ 3,360

  4. ₹ 3,500

GST

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Answer

Given,

A sells medicine worth ₹ 50,000 to B.

Rate of GST = 12%

Since, the transaction is intrastate.

SGST rate = GST rate2\dfrac{\text{GST rate}}{2} = 6%

SGST paid by B = 6100×50,000\dfrac{6}{100} \times 50,000 = ₹ 3,000

Given,

B sells the same medicine to C at profit of ₹ 6,000.

Thus, B sells the medicine to C at ₹ 56,000.

SGST rate = GST rate2\dfrac{\text{GST rate}}{2} = 6%

SGST charged by B = 6100×56,000\dfrac{6}{100} \times 56,000 = ₹ 3,360

Net SGST paid by B = SGST charged by B - SGST paid by B

= ₹ 3,360 - ₹ 3,000

= ₹ 360.

Hence, option 2 is the correct option.

(ii) From part (i),

B sells the medicine to C (end-user) at ₹ 56,000.

CGST rate = GST rate2\dfrac{\text{GST rate}}{2} = 6%

CGST = 6100×56,000\dfrac{6}{100} \times 56,000 = ₹ 3,360.

Hence, option 3 is the correct option.

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