Question

A wholesaler dealer purchased spare parts of scooter. Their taxable price was $Rs.2,50,000$. He sold the whole lot to a retailer at a taxable price of $Rs.2,80,000$. After selling the lot the retailer got a taxable amount of $Rs.3,50,000$. If the rate of $GST$ is $28$, how much $GST$ did the wholesaler pay? How much $GST$ did he charge for the retailer ? How much of it did he pay to the Government?

Answer 1

Wholesale purchased spare parts:

taxable value Rs. $250000$

GST$=28\%$

$\Rightarrow$ Input tax for the retailer.

$28\%$ of taxable value

$\frac{28}{100}\left(25000\right)$Rs.

$=$Rs. $70,000$

He said it to retailer.

$\Rightarrow$ Taxable value:

$2,80,000$Rs.

Output tax for the wholesaler:

$\Rightarrow 28\%$ of selling taxable value

$\Rightarrow \frac{28}{100}\times 480000$Rs.

$78400$Rs.

Input tax credit:

Input tax: Rs. $70000$

GST payable

output tax$-$Input tax credit

$78,400-70,000$

GST payable$=$Rs. $8400$.