Question

a manufacturer buys raw materials worth rupees 7500paying 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 1. the input tax(under gst) paid by the manufacturer 2. the output tax(under gst) collected by the manufacturer 3. the tax(under gst) paid by the manufacturer to the central and state governments 4. the amount paid by the dealer for the finished product​

Answer 1

Given:

A manufacturer buys raw material at ₹7500 with GST @5%.

Sells the finished goods at 40% profit.

To find:

• The input tax paid by the manufacturer

• The output tax collected by the manufacturer

• The tax paid by the manufacturer to the central and state governments

• The amount paid by the dealer for the finished product​

Solution:

1) Cost of the raw material = ₹7500

• GST = 5% of 7500

•        = ₹375

2) Cost of the finished goods = 7500 + 375 + 40% of 7875

                                                 = 7875 + 40/100 of 7875

                                                 = 7875+3150

                                                 = ₹11025

• GST = 12% of ₹11025

•        = 12/100 of 11025

•        = ₹1323

3) Input Tax = 5% GST

₹375

4) Output tax = 12% GST

₹1323

5) Tax paid by the manufacturer to govt.

• 5% GST + 12% GST

• 375 + 1323

₹1698

6) Amount paid by the dealer for the finished goods

• cost of the finished good + 12% GST

• 11025 + 1323

₹12348

Answer 2

Answer:

3pgs are there....go through it....hope it will help you

thank you