Question

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.​

Answer 1

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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