Question

A manufacturer sells a washing machine to wholesaler for rupees 15000 wholesaler sell it at a profit of rupees 1500 to the trader and trader the sells it to a consumer at a profit of rupees 1800. If all the sells are intra state and rate of GST 18%, find:-
i)The amount of GST received by the State and the Central Governmenton the sale of this machine from the wholesaler and the retailer,
ii)The amount that the consumer pays for the machine.

Answer 1

Given :  A manufacturer sells a washing machine to wholesaler for rupees 15000 wholesaler sell at a profit of rupees 1500 and trader sells it to a consumer at a profit of rupees 1800

All transaction intra state .

GST = 18 %

To Find : (i) the amount of Tax under GST received by the state & centeral government from the wholesaler & trader

(iii) the amount that the consumer pays for the machine.

Solution:

A manufacturer sells a washing machine to wholesaler = Rs 15000

GST 18 %  

CGST = SGST = GST/2 = 18/2 = 8  %

CGST = SGST = (9/100) * 150000  = Rs 1350

wholesaler sell   at a profit of rupees  = Rs 1500

Selling amount = Rs 15000 + 1500 = Rs 16500

CGST = SGST = (9/100) * 16500  = Rs 1485

amount of Tax under GST received by the state government  from the wholesaler.  = SGST Received -  ITC   ( ITC - Input tax credit )

= 1485- 1350

= Rs 135

amount of Tax under GST received by the central government  from the wholesaler.  = CGST Received -  ITC   ( ITC - Input tax credit )

= 1485- 1350

= Rs 135

trader sells it to a consumer at a profit of rupees 1800

Selling price = 16500 + 1800 = Rs 18300

CGST = SGST = (9/100) * 18300  = Rs 1647

Amount paid by consumer = 18300 + 1647 + 1647  =  21594 Rs

amount of Tax under GST received by the state government from trader.

= SGST received - ITC

= 1647 - 1485

= Rs 162

amount of Tax under GST received by the central government from trader.

= CGST received - ITC

= 1647 - 1485

= Rs 162

the amount that the consumer pays for the machine. = Rs 21594

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