Question

Goods/services are sold from Kota (Rajasthan) to Mumbai for Rs. 20,000 and then from Mumbai to Pune. If the rate of GST 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

Answer:

formula:

$\text{Profit}=S.P.-C.P.$

In the above formula, S.P. is the selling price and C.P. is the cost price.

Substituting Profit as 5000, C.P. as 20, 000 in the above formula we get,

$\begin{align}

& 5000=S.P.-20000 \\

& \Rightarrow S.P.=5000+20000 \\

& \Rightarrow S.P.=25000 \\

\end{align}$

Hence, the selling price of goods by dealer in Mumbai to dealer in Pune is equal to Rs. 25000.

Now, these 25000 rupees are the cost price for dealers in Pune and we have to find the net G.S.T paid at Pune. It is given that G.S.T percent levied on the goods is $12\%$ so we are going to find $12\%$ of Rs 25000.

We are going to calculate $12\%$ of Rs 25000 by multiplying 25000 by 12 and then divide by 100.

$\begin{align}

& \dfrac{12}{100}\times 25000 \\

& = 3000 \\

\end{align}$

Hence, the new G.S.T paid at Pune is equal to Rs. 3000.

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