Question

Prasad purchased a washing-machine from 'Maharashtra Electronic Goods'. The discount of 5% was given on the printed price of rupees 40,000. Rate of GST charged was 28%. Find the purchase price of washing machine. Also find the amount of CGST and SGST shown in the tax invoice. Solve the word problem

Answer 1

Dear Student,

◆ Answer -

Purchase price = 48640 Rs

CGST = 5320 Rs

SGST = 5320 Rs

◆ Explanation -

Taxable value of washing machine will be -

Taxable price = printed price - discount

Taxable price = printed price (1-discount%)

Taxable price = 40000 (1 - 5/100)

Taxable price = 40000 × 19/20

Taxable price = 38000 Rs

Rate of total GST is 28%. Thus rate of both CGST and SGST will be 28/2 = 14%.

Now CGST and SGST are calculated by -

CGST = taxable price × rate of CGST

CGST = 38000 × 14/100

CGST = 5320 Rs

SGST will also be the same.

SGST = CGST

SGST = 5320 Rs

Purchase price of washing machine will be -

Purchase price = taxable price + SGST + CGST

Purchase price = 38000 + 5320 + 5320

Purchase price = 48640 Rs

Hope this helps you...

Answer 2

Answer:

Printed price of washing machine = Rs 40,000

Discount on washing machine = 5% of Rs 40,000 = 5/100×40000 = Rs 2,000

Taxable value of washing machine = Rs 40,000 − Rs 2,000 = Rs 38,000

Rate of GST = 28%

Amount of GST on washing machine = 28% of Rs 38,000 = 28/100×38000 = Rs 10,640

∴ Purchase price of washing machine

= Taxable value of washing machine + Amount of GST on washing machine

= Rs 38,000 + Rs 10,640

= Rs 48,640

So, the purchase price of washing machine is Rs 48,640.

Now,

Amount of CGST = Amount of SGST = ½ × Amount of GST on washing machine = ½ × 10640 = Rs 5,320

Thus, the amount of CGST is Rs 5,320 and the amount of SGST is Rs 5,320 in the tax invoice.