Question

5.A retailer buys an article from the wholesaler at ₹80 and the
wholesaler charges a sales tax
(under GST)at the prescribed rate of 5%. The retailer fixes the
price at ₹100 and charges sales tax at the same rate. If the sales
are intra-state ,apply GST system of sales tax for the calculation
to answer the following:
(i) What is the price that a consumer has to pay to buy the article?
(i) Find the input and ouput GST for the retailer.
(iii) How much GST does the retailer pay to the Central and State
Governments?
I​

Answer 1

The different slabs for GST are 5%, 12%, 18% and 28%. GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs.