Q. The following transactions of a retailer in Tamil Nadu show the sale and purchase of some electronic items within the same state :
(i)Bought the goods at the list price of Rs. 55,00,000 with 20% trade discount.
(ii)Sold the same whole goods at the list price of Rs. 70,00,000 with 30% trade discount.
If both CGST and SGST are charged at 9% each , calculate to determine whether there is a tax payable or tax credited during the whole transaction, Also, in overall, find the profit or loss %, if any.
Answers
Given : i)Bought the goods at the list price of Rs. 55,00,000 with 20% trade discount.
(ii)Sold the same whole goods at the list price of Rs. 70,00,000 with 30% trade discount.
CGST and SGST are charged at 9% each
To Find : determine whether there is a tax payable or tax credited during the whole transaction, Also, in overall, find the profit or loss %, if any.
Solution:
Bought the goods at the list price of Rs. 55,00,000 with 20% trade discount.
LP = 55,00,000
Discount 20 % = (20/100)55,00,000 = 11,00,000
Price before GST = 55,00,000 - 11,00,000 = 44,00,000
CGST = SGST = (9/100)44,00,000 = 3,96,000
Sold the same whole goods at the list price of Rs. 70,00,000 with 30% trade discount.
LP = 70,00,000
Discount 30 % = (30/100)70,00,000 = 21,00,000
Price before GST = 70,00,000 - 21,00,000 = 49,00,000
CGST = SGST = (9/100)49,00,000 = 4,41,000
CGST = SGST Payable = 4,41,000 - 3,96,000
= 45,000
Total GST payable = CGST + SGST = 45,000 + 45,000 = 90,000 Rs
Profit = 49,00,000 - 44,00,000 = 5,00,000 Rs
Profit % = ( 5,00,000/44,00,000) * 100 = 11.36 %
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