A manufacturer P sells a washing machine to a dealer Q for ₹25000. The dealer Q sells it to a customer R at a profit of ₹2000. If the sales are intra state and the rate of GST is 12% find : (i) the amount which the consumer R pays to the dealer Q (ii) the amount of GST received by the government (iii) the amount of GST paid by manufacturer P (iv) the amount of GST paid by the dealer Q.
Answers
i thing this will help you
A manufacturer P sells a washing machine to a dealer Q for ₹25000. The dealer Q sells it to a customer R at a profit of ₹2000.
(i) the amount which the consumer R pays to the dealer Q
The amount the consumer R pays to the dealer Q
As the dealer Q sells washing machine with a profit of ₹2000, so we need to add the profit and the amount paid to manufacturer P by the dealer Q.
= ₹25000 + ₹2000
= ₹27000
(ii) the amount of GST received by the government
Given rate of GST = 12 %
SGST = 1/2 × GST
= 1/2 × 12/100 × ₹27000
= ₹1620
(iii) the amount of GST paid by manufacturer P
As the manufacturer P sells a washing machine to a dealer Q for ₹25000, so we have,
SGST = 1/2 × GST
= 1/2 × 12/100 × ₹25000
= ₹1500
(iv) the amount of GST paid by the dealer Q.
As the dealer Q sells a washing machine to a customer R at a profit of ₹2000, so we have,
total amount = ₹25000 + ₹2000 = ₹27000
Rate of GST = 12 %
SGST = 1/2 × GST
= 1/2 × 12/100 × ₹27000
= ₹1620