Question

Goods) services are sold from Kota(Rajasthan) to Mumbai for Rs.20000 and then from Mumbai to Pune. If the rate of GST rate is 12% and the profit made at Mumbai is Rs.5000, find the Net GST paid at Pune , if the dealer at Pune is the end-user.​

Answer 1

Given:–

• Selling price= Rs.20000
• Rate of GST = 12%
• Profit made at Mumbai = Rs.5000

To find:–

• Net GST paid at Pune

Step by step explaination:-

★ Here, in the question Kota and Mumbai are in the different states , so it is an case of inter-state transaction of goods whereas, after that goods are sold from Mumbai to Pune which is in the same state which is Maharashtra, so it is an case of intra-state transaction.

★ In general , the tax which is collected from public intra-state transaction of goods is shared equally between the central government and the state government. (CGST and SGST)

★ Some common terms:–

• Cost price : It is the price at which a trader buys goods. The cost price is also termed basic price.
• Selling price : It is the price at which a trader sells his goods with discount.
• CGST : It is collected by the central government for the intra-state or movement of goods and services.
• SGST : It is collected by state government for intra-state transaction or movement of goods and services.

★ Solving~

$\implies \text{C.P. of Mumbai }= Rs.20000$

$\implies \text{S.P. of Mumbai} = Rs.25000$

$\implies \text{C.P. of Pune} = 25000$

As SGST and CGST are divided between them so calculations will be as follows,

$\implies \text{SGST} = 6/100 × 25000$

Reducing to their lowest terms.

$\implies \text{SGST} = 6×250$

$\implies \text{SGST} = Rs.1500$

$\implies \text{CGST} = 6/100 × 25000$

Reducing to their lowest terms

$\implies \text {CGST} = 6×250$

$\implies \text {CGST} = Rs.1500$

Therefore,

GST paid by the dealer is Rs. 1500+1500 → Rs.3000