Question

A manufacturer sells a t.v to a dealer for Rs. 18000 and the dealer sells it to a consumer at a profit of Rs. 1500. if the sales are intra state and the rate of GST is 12%, find the amount of GST paid by the dealer to the state goverenment the amount of GST received my central goverenment the amount of GST received by the state goverenment the amount that the consumer pays for the tv

Answer 1

Since, it is a case of intra-state transaction of goods and services,

$\boxed{\bold{SGST=CGST \not= \frac{1}{2}GST}}}$

Given,

Manufacturer sells TV to a dealer = Rs 18000

Amount of GST collected from the manufacturer = 6% of 18000 = Rs 1080.

∴ Manufacturer will pay Rs 1080 as CGST and Rs 1080 as CGST.

Amount of input of dealer = Input CGST = Rs 1080 and Input SGST = Rs 1080

∴ C.P. of a TV for a  dealer = Rs 18000

Profit = Rs 1500

Selling price of TV for a dealer to customer = C.P. + Profit = Rs 18000 + Rs 1500 = Rs 19500

Amount of GST collected by dealer from customer :

CGST = SGST = 6% of Rs 19500 = Rs 1170

Amount of output GST of dealer :

Output GST = Rs 1170    and    Output SGST = Rs 1170

(1) The amount of GST paid by the dealer to the state government

= Output CGST - Input CGST

= Rs 1170 - Rs 1080

$\boxed{\bold{\therefore{Amount\: of\: GST\: paid\: by\: the\: dealer\: to\: the\: State\: Government\: = Rs\: 90}}}$

(2) The amount of CGST received by Central Government

= CGST paid by the manufacturer + CGST paid by the dealer

= Rs 1080 + Rs 90

$\boxed{\bold{\therefore\: The\: amount\: of\: CGST\: received\: by\: Central\: Government\: = Rs\: 1170}}}$

(3) The amount of SGST received by State Government

= SGST paid by manufacturer + SGST paid by dealer

= Rs 1080 + Rs 90

$\boxed{\bold{\therefore\: The\: amount\: of\: SGST\: received\: by\: State\: Government\: = Rs\: 1170}}$

(4) The amount that consumer pays for the TV

= Cost price of TV + CGST paid by the customer + SGST paid by the customer

= Rs 19500 + Rs 1170 + Rs 1170

$\boxed{\bold{\therefore\: The\: amount\: that\: consumer\: pays\: for\: the\: TV\: = Rs\: 21840}}$