A shopkeeper buys an article whose printed price is Rs. 4000 from a wholesaler at a discount of 20% and sells it to a consumer at the printed price. If the sales are intrastate and the rate of GST is 12%, find
(i) the price of the article inclusive of GST at which the shopkeeper bought it.
(ii) the amount of tax (under GST) paid by the shopkeeper to the State Government.
(iii) the amount of tax (under GST) received by the Central Government.
(iv) the amount which the consumer pays for the article.
Answers
It is a case of intra-state transaction of goods and services.
SGST = CGST = ½ GST
Given:
Printed price of a camera = ₹ 1600
Rate of discount = 20%
CP of camera for shopkeeper = printed price – Discount
= ₹1600 – 20% of ₹1600
= ₹1600 – (20/100) × 1600
= ₹1600 – ₹320
= ₹1280
It is given that, rate of GST = 12%
Amount of GST paid by the shopkeeper to the wholesaler,
CGST = SGST = 6% of ₹1280
= (6/100) × 1280
= ₹76.80
(i) GST paid by the shopkeeper to the Central Government
CGST = SGST = 6% of ₹1600
= (6/100) × 1600
= ₹96
GST paid by the shopkeeper to the Central Government = ₹96 – ₹76.80 = ₹19.20
(ii) GST received by the Central Government.
CGST paid by wholesaler + CGST paid by shopkeeper = ₹76.80 + ₹19.20 = ₹96
(iii) GST received by the State Government.
SGST paid by wholesaler + SGST paid by shopkeeper = ₹76.80 + ₹19.20 = ₹96
(iv) The amount at which the consumer bought the camera.
Amount paid by consumer for camera = CP of camera + CGST paid by consumer + SGST paid by consumer = ₹1600 + ₹96 + ₹96 = ₹1792
Hope it helps☺
Given:
The printed price of the article = ₹ 4000
Rate of discount = 20%
Rate of GST = 12%
To Find:
(i) the price of the article inclusive of GST at which the shopkeeper bought it.
(ii) the amount of tax (under GST) paid by the shopkeeper to the State Government.
(iii) the amount of tax (under GST) received by the Central Government.
(iv) the amount which the consumer pays for the article.
Solution:
It is a case of intra-state transactions of goods and services.
SGST = CGST = ½ GST
CP of the article for shopkeeper = printed price – Discount.
= ₹ 4000 – 20% of ₹ 4000.
= ₹ 4000 – (20/100) × 4000.
= ₹ 4000 – ₹ 800.
= ₹ 3200.
It is given that, rate of GST = 12%.
Amount of GST paid by the shopkeeper to the wholesaler,
CGST = SGST = 6% of ₹ 3200.
= (6/100) × 3200.
= ₹ 192.
(i). GST paid by the shopkeeper to the Central Government
CGST = SGST = 6% of ₹ 4000
= (6/100) × 4000
= ₹ 240
GST paid by the shopkeeper to the Central Government = ₹ 240 – ₹ 192 = ₹ 48.
Hence, the GST paid by the shopkeeper to the Central Government is ₹ 48.
(ii). GST received by the Central Government.
CGST paid by wholesaler + CGST paid by shopkeeper = ₹ 192 + ₹ 48 = ₹ 240.
Hence, GST received by the Central Government is ₹ 240.
(iii). GST received by the State Government.
SGST paid by wholesaler + SGST paid by shopkeeper = ₹ 192 + ₹ 48 = ₹ 240.
Hence, the GST received by the State Government is ₹ 240.
(iv) The amount at which the consumer pays for the article.
Amount paid by consumer for the article = CP of article + CGST paid by consumer + SGST paid by consumer = ₹ 4000 + ₹ 240 + ₹ 240 = ₹ 4480.
Hence, the amount which the consumer pays for the article is ₹ 4480.