a retailer buys an air conditioner from wholesalers for 35000 and sells it to a customer at a profit of 8% if the GST rate 28% the tax liability of the retailer is
Answers
GST Rs. 252 and SGST Rs. 252 payable by the shopkeeper to the government.
Step-by-step explanation:
Printed price of the air conditioner = Rs. 28,000
Shopkeeper bought at a discount of 20% from a wholesaler
= 28000 - (20% × 28000)
= 28000 - 5600
= Rs. 22400
Shopkeeper paid GST = 18% × 22400
= 0.18 × 22400
= Rs. 4032
Shopkeeper sells it to consumer at a discount of 10% on the printed price
= 28000 - (10% × 28000)
= 28000 - 2800
= 25200
GST paid by consumer on 25200 = 18% × 25200
= 0.18 × 25200
= Rs. 4536
GST payable by the shopkeeper = 4536 - 4032 = Rs. 504
GST (18%) = CGST (9%) + SGST (9%)
CGST payable to government = 504/2 = Rs. 252
SGST payable to government = 504 - 252 = RS. 252
CGST Rs. 252 and SGST Rs. 252 payable by the shopkeeper to the government.
Solution:
A retailer buys an air conditioner from a whole seller for Rs 35000
8 % Profit = (8/100) 35000 = Rs 2800
GST Rate = 28 %
GST on Rs 35000 was already paid by retailer while buying
So His GST liability is only on Profit Pat
GST on 2800 = (28/100) * 2800 = Rs 784
GST liability of the retailer = Rs 784
GST Liability = GST received - ITC ( Input Tax credit )