A manufacturer buys raw material worth 8000, paying GST at the rate of 5%.He sells the finished product to a dealer at a profit of 25% .The GST charged for the finished product is 12% .Find the net GST paid by the manufacturer to the government if the scale is intra-state.
(please use the required gst formulas)
(Answer in my textbook is -:
net cgst=400, net sgst=400)
(please give the solution step by step)
Answers
Given:
A manufacturer buys raw material worth 8000, paying GST at the rate of 5%.
He sells the finished product to a dealer at a profit of 25% .
The GST charged for the finished product is 12% .
To find:
Find the net GST paid by the manufacturer to the government if the scale is intra-state.
Solution:
A manufacturer buys raw material worth 8000
⇒ C.P = Rs. 8,000.
paying GST at the rate of 5%
⇒ GST = 8000 × 5% = 8000 × 5/100
GST = Rs. 400.
He sells the finished product to a dealer at a profit of 25%
⇒ profit = 25% = Gain%
S.P = SP = [(100 + Gain%) / 100] × CP.
= (100 + 25) / 100 × 8000
S.P = Rs. 10,000.
The manufacture will charge the dealer the tax he paid to buy the raw materials.
⇒ Net S.P = Rs. 10,000 + Rs. 400
Net S.P = Rs. 10,400.
⇒ Net profit = Rs. 10,400 - Rs. 8000 =
Net profit = Rs. 2400.
Out of this profit equal proportion of Money will be given to the central and state government.
The GST charged for the finished product is 12%
So divide 12% in the ratio 1/6 to get center - CGST and state - SGST.
Net GGST= 1/6 × 2400 = Rs. 400.
Net SGST= 1/6 × 2400 = Rs. 400.
Step-by-step explanation:
this should be done like this
Mark me the brainiest
