A shopkeeper buys a dressing table at a discount of $20 %$ from a wholesaler, the printed price of the dressing table being $₹ 1600$ . The shopkeeper sells it to a consumer at the printed price. If the sales are intrastate and the rate of GST is $12 %$ , find
(i) GST paid by the shopkeeper to the Central Government.
(ii) GST received by the Central Government.
(iii) GST received by the State Government.
(iv) the amount at which the consumer bought the dressing table.

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Solution

Step 1: Find the Central Goods and Services Tax (CGST)% and State Goods and Services Tax (SGST)%
Goods and Service Tax rate, $G S T % = 12 %$
Rate of Discount, $d % = 20 %$
Printed Price, $P = ₹ 1600$
Amount of discount, $D = d % o f P$
$= \frac{20}{100} \times 1600 = ₹ 320$
Selling Price of wholesaler, $S P = P - D$
$= 1600 - 320 = ₹ 1280$
According to the question, the sales are intrastate that is why the tax will be given by the seller as the Central Goods and Services Tax (CGST)% and State Goods and Services Tax (SGST)% to the Central and State government respectively.
∴ $C G S T % = S G S T % = \frac{G S T %}{2}$
$= \frac{12}{2} = 6 %$
Step 2: Find the GST paid by the shopkeeper to the Central Government.
Now, the amount of SGST and CGST collected by the wholesaler from the shopkeeper is the input SGST and CGST.
$I n p u t S G S T = I n p u t C G S T = S G S T % o f S e l l i n g P r i c e o f w h o l e s a l e r$
$= \frac{6}{100} \times 1380 = ₹ 76.80$
According to the question, the selling price of the item set by the shopkeeper = The printed price by the wholesaler.
Now, the amount of SGST and CGST collected by the shopkeeper from a consumer is the output SGST and CGST of the shopkeeper.
$O u t p u t S G S T = O u t p u t C G S T = S G S T % o f S e l l i n g P r i c e o f s h o p k e e p e r$
$= \frac{6}{100} \times 1600 = ₹ 96$
$T a x p a i d b y t h e s h o p k e e p e r t o t h e C e n t r a l G o v e r n m e n t (u n d e r G S T)$
$= O u t p u t C G S T - I n p u t C G S T$
$= 96 - 76.80 = ₹ 19.20$
Step 3: Find the GST received by the Central Government.
(ii) The GST paid by the shopkeeper to the Central Government $= O u t p u t C G S T$
$= O u t p u t S G S T = ₹ 96 (C a l c u l a t e d i n S t e p 2)$
Step 4: Find the GST received by the State Government
(iii) The GST paid by the shopkeeper to the State government $= O u t p u t S G S T$
$= ₹ 96 (C a l c u l a t e d i n S t e p 2)$
Step 5: Find the amount at which the consumer bought the dressing table.
(iv) $A m o u n t p a i d b y t h e c o n s u m e r t o s h o p k e e p e r = S e l l i n g P r i c e o f t h e s h o p k e e p e r + O u t p u t C G S T + O u t p u t S G S T$
$= 1600 + 96 + 96 = ₹ 1792$
Final Answer:
(i) The amount of tax paid by the shopkeeper as State Goods and Services Tax is $₹ 19.20$ .
(ii) The amount of tax received by the Central Government as Goods and Services Tax is $₹ 96$ .
(iii) The amount of tax received by the State Government as Goods and Services Tax is $₹ 96$ .
(iv) The consumer bought the dressing table at $₹ 1792$ .

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