A manufactured buys raw materials worth 7,500 paying GST at the rate of 5% .He sells the finished product to a dealer at 40% profit . If the purchase and the sale both are intra-state and the rate of GST for the finished product is 12% find the tax (under GST) paid by the manufacturer to the central and state governments.
Answers
Step-by-step explanation:
Raw material cp = Rs 7,500
Rate of GST = 5%
★ According to the question :
All sales are intrastate
So,
GST = 5% and 12%
GST is made up of CGST = 2.5 % and 6 % SGST = 2.5 % and 6 %
Input CGST tax = input SGST tax
⇒ 2.5 of 7500
⇒ 2.5 / 100 × 7500
⇒ 187.50
Input CGST tax = input SGST tax = Rs. 187.50
Output CGST tax = output SGST tax
So,
Profit = 40%
Find the sp of finished product
⇒ Sp = 100 + 40 / 100 × 7500
⇒ Rs 10,500
Sp = Rs 10,500
Rate of GST = 12 %
Output CGST tax = output SGST tax
6 % of Rs 10,500
⇒ 6 / 100 × 10,500
⇒ Rs 630
★ Output CGST tax = output SGST tax = Rs 630
★ Net CGST (tax) paid by manufacturer :
⇒ Output tax - input tax
⇒ Rs 630 - Rs 187.50
⇒ Rs 442.50
★ Net SGST(tax) paid by manufacturer :
⇒ Output tax - input tax
⇒ Rs 630 - Rs 187.50
⇒ Rs 442.50