Question

A dealer buys an article for Rs. 4000 and sells it to a customer at a profit of 30%. Find his input fax, output tax and net tax paid to the government if GST is charged at 5% and the sale is intra-state. What is the total amount paid by the customer ?

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Answer 1

Step-by-step explanation:

Given :-

• Cost price = Rs. 4000
• Profit = 30%
• GST charged = 5%

To find :-

• Total amount paid by the customer

Formulae being use :-

${\large{\red{✠ \: \: \: \: \: \: \: \: \: \: }}}{\bold{\underline{\boxed{\rm{CGST \: = \: \frac{1}{2} × \frac{R}{100} × SP}}}}}$

${\large{\red{✠ \: \: \: \: \: \: \: \: \: \: }}}{\bold{\underline{\boxed{\rm{SGST \: = \: \frac{1}{2} × \frac{R}{100} × SP}}}}}$

Where R signifies the ratio of GST and SP shows selling price

Solution :-

${\bold{\sf{➤ \: \: \: Cost \: price \: = \: Rs. \: 4000}}}$

${\bold{\sf{➤ \: \: \: Profit \: = \: \frac{30}{100} \: × \: 4000 }}}$

${\bold{\sf{➤ \: \: \: Profit \: = \: Rs. \: 1200}}}$

Let's find out Selling price

${\bold{\sf{➤ \: \: \: Selling \: price \: = \: CP \: + \: profit}}}$

${\bold{\sf{➤ \: \: \: Selling \: price \: = \: Rs. \: 4000 \: + \: Rs. \: 1200}}}$

${\bold{\sf{➤ \: \: \: Selling \: price \: = \: Rs. \: 5200}}}$

According to the given question, this is an intra - state sale i.e. sold within the state which clearly means that we have to calculate the CGST and SGST

${\large{\underline{\sf{\blue{In \: case \: of \: Input \: tax :}}}}}$

${\bold{\sf{⟼ \: \: \: \: \: Input \: CGST \: = \: \frac{1}{2} \: × \: \frac{5}{100} \: × \: 4000}}}$

${\bold{\sf{⟼ \: \: \: \: \: Input \: CGST \: = \: Rs. \: 100}}}$

${\bold{\sf{⟼ \: \: \: \: \: Input \: SGST \: = \: \frac{1}{2} \: × \: \frac{5}{100} \: × \: 4000}}}$

${\bold{\sf{⟼ \: \: \: \: \: Input \: SGST \: = \: Rs. \: 100}}}$

➤ Total input tax = Rs. 100 + Rs. 100

➤ Rs. 200

${\large{\underline{\sf{\blue{In \: case \: of \: Output \: tax :}}}}}$

${\bold{\sf{⟼ \: \: \: \: \: Output \: CGST \: = \: \frac{1}{2} \: × \: \frac{5}{100} \: × \: 5200}}}$

${\bold{\sf{⟼ \: \: \: \: \: Output \: CGST \: = \: Rs. \: 130}}}$

${\bold{\sf{⟼ \: \: \: \: \: Output \: SGST \: = \: \frac{1}{2} × \frac{5}{100} × 5200}}}$

${\bold{\sf{⟼ \: \: \: \: \: Output \: SGST = Rs . \: 130}}}$

➤ Total Output tax = Rs. 130 + Rs. 130

➤ Rs. 260

${\bold{\rm{⟼ \: \: \: \: \: Net \: GST_{(paid \: to \: the \: central \: government)} \: \: = \: Rs. 130 \: - \: Rs. \: 100 \: = \: Rs. 30}}}$

${\bold{\rm{⟼ \: \: \: \: \: Net \: GST_{(paid \: to \: the \: state \: government)} \: = \: Rs. \: 130 \: - \: Rs. \: 100 \: = \: Rs. \: 30}}}$

Total amount paid by the customer = selling price + output tax

${\bold{\rm{⟼ \: \: \: \: \: Rs. \: 5200 \: + \: Rs. \: 260}}}$

${\bold{\rm{⟼ \: \: \: \: \: Rs. \: 5460}}}$