Question

A manufacturer sells a wet grinder to a wholesaler for 2500. The wholesaler sells it to a retailer at a profit of 3500 and the retailer sells it to a customer at a profit of 1800. If the GST charged is 12%, find a. The amount of GST received by the government on sale of this grinder. b. The price paid by the customer for the wet grinder.​

Answer 1

Answer:

It is a case of intra-state transaction of goods and services

GSCT= CGST=21GST

Given:

CP of washing machine for wholesaler=Rs.15000

Rate of GST =12%

Amount of GST paid by wholesaler to manufacturer

CGST=GST=6% of Rs.15000

=(6/100)×15000=Rs.900

SP of washing machine by wholesaler to trader= CP + Profit

=Rs.15000+Rs.1200=Rs.16200

Amount of GST paid by trader to wholesaler

CGST = SGST=6% of Rs.16200

=(6/100)×16200=Rs.972

The amount of tax (under GST) received by the State Government from the wholesaler

Rs.972−Rs.900=Rs.72