Question

Raj’s bill of an article after paying a GST of 5% amounted to ₹819.
Find the price o the article before GST was added?

Answer 1

Here, both sales from manufacturer to wholesaler to retailer are inter-state
So, CGST=SGST=0
GST=IGST
Given:
Printed price of an article=Rs.40000
discount given by manufacturer =10% of Rs.40000
=(10/100)×40000=Rs.4000
CP of article for wholesaler =Rs.40000−Rs.4000=Rs.36000
CP of article without tax for retailer =Rs.40000+5% of Rs.40000
=Rs.40000+(5/100)×400000=Rs.42000
The amount of tax (under GST) received by the Central Government
IGST paid by wholesaler to the CEntral government =Rs.1080
IGST paid by manufacturer =Rs.6480
The amount of tax (under GST) received by the Central Government =Rs.1080+Rs.6480=Rs.7560