Question

A retailer purchases an airconditioner for rupees 35000 from a company. He sold it to a consumer at a profit of rupees 5000.Calculate the tax liability of the retailer, if the GST rate on airconditioner is 28%​

Answer 1

Answer:

Tax collected at the time of purchase = Rs 35000

∴ Amount = Rs 35000

Tax collected at the time of sale = Rs.40000

∴ GST payable = Tax collected at the time of sale − Tax collected at the time of purchase = Rs 40000 − Rs 35000 = Rs 5000

Thus, the amount of GST Rs5000

Answer 2

Answer:

• ₹ 1400

Step-by-step explanation:

Given

• Purchase price = ₹ 35000
• Profit = ₹ 5000
• GST rate = 28 %

To find

• Tax liability

Solution

Input GST =  Rate of GST of Purchase price

• [28 % of 35000]
• ₹ 9800

∴ Input GST = ₹ 9800

Selling price = Purchase price + Input GST

• ₹ 35000 + ₹ 5000
• ₹ 40000

∴ Selling price = ₹ 40000

Output GST = Rate of GST of Selling price

• [28 % of 40000]
• ₹ 11200

∴ Output GST = ₹ 11200

Tax liability = Output GST - Input GST

• ₹ 11200 - ₹ 9800
• ₹ 1400

∴ Tax liability = ₹ 1400