Question

When a chartered accountant (CA) provided his services to Mr. Rao in filing his income
returns, his bill for services was 8260 inclusive of 18% GST. What is the original amount of the bill?
How much is the GST paid to the State Government by the CA?​

Answer 1

Answer:

Step-by-step explanation:

Answer 2

The original amount of the bill is Rs 7000.

The GST paid to the State Government by the CA is Rs 630.

Given:

The amount Mr. Rao paid in filling his income returns including the 18% GST is Rs. 8260.

To Find:

1. The original amount of the bill is =?

2. How much is the GST paid to the State Government by the CA?​

Solution:

Here, a Chartered Accountant (CA) provided his services to Mr. Rao in filling his income returns.

Mr. Rao paid the GST also in Rs. 8260.

So, Let us assume the original amount to be paid by Mr. Rao is Rs x.

Now, the total amount in addition to the 1% GST = Rs. 8260

i.e., x + 18 % of x = 8260

∴  x + $\frac{18}{100}$ × x = 8260

∴  x + 0.18x = 8260

∴  1.18x = 8260

∴  x = $\frac{8260}{1.18}$

∴  x = 7000

Now, we need to know that the Goods and Service Tax (GST) is a combination of Central Goods & Services Tax (CGST) and State Goods & Services Tax (SGST) both having an equal share of amount.

Therefore, we can say that the GST paid to the State government i.e., SGST is half of the GST.

∴  Amount paid as SGST = 9 % of 7000

∴  Amount paid as SGST = $\frac{9}{100}$ × 7000

∴  Amount paid as SGST = 9 × 70

∴  Amount paid as SGST = 630 Rs.

Thus, the original amount of the bill is Rs 7000 and the GST paid to the State Government by the CA is Rs 630.

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