Question

Goods/services are sold from Kota (Rajasthan) to Mumbai for Rs. 20,000 and then from Mumbai to Pune. If the rate of GST is 12% and the profit made at Mumbai is Rs. 5000; find the net GST paid at Pune, if the dealer at Pune is the end-user?

Answer 1

From the question, we have
For the dealer in Mumbai (inter-state transaction)
$$CP=Rs.20000$$
$$\text{IGST}=12\%\text{of Rs.}20000=\frac{12}{100}\times 20000=\text{Rs.}2400$$
Given, Profit = Rs. 5000
$$SP=Rs.25000$$
Now, for the dealer in Pune (intra-state transaction)
$$\begin{array}{cc}& \text{CP}=\text{Rs.}25000\\ & \text{CGST}=6\%\text{of}25,000=\text{Rs.}1500\\ & \text{SGST}=6\%\text{of}25,000=\text{Rs.}1500\\ & \text{Thus, the GST paid by the end user at Pune is Rs.}(1500+1500)\\ & =\text{Rs.}3000\end{array}$$