Question

A manufacturer buys raw material worth Rs.7500 paying GST at the rate of 5% .He sells the finished product to a dealer at 40% profit .If the Purchase and sale both are intra-state and the rate of GST for the finished product is 12%, find:

(i) The output tax paid by the manufacturer.

(ii) The output tax collected by the manufacturer.

(iii) The tax paid by the manufacture to the Central and State government.

(iv) The amount paid by the dealer for the finished product ​

Answer 1

Step-by-step explanation:

VAT=Output tax-Input tax

Intput tax=4% of 60,000=

100

4

×60000=Rs.2400

Output tax=12.5% of 92000=

100

12.5

×92000=11500

VAT=11500−2400=Rs.9100