Question

The printed price of an article is Rs 50000. The wholesaler allows a discount of 10% to a shopkeeper. The shopkeeper sells the article to a consumer at 4% above the marked price. If the sales are intra-state and the rate of GST is 18%, find:

(i) The amount inclusive of tax (under GST) which the shopkeeper pays for the articles.

(ii) The amount paid by the consumer for the article.

(iii) The amount of tax (under GST) paid by the shopkeeper to the Central Government.

(iv) The amount of tax (under GST) received by the State Government.

Answer 1

It is a case of intra-state transaction of goods and services.
$$SGST=CGST=\frac{1}{2}\text{GST}$$
Given:
Marked price of an article $=$ ₹ 50000
Rate of $GST=18\%$
(i) The amount inclusive of tax (under GST) which the shopkeeper pays for the articles.
Rate of discount given by the wholesaler $=10\%$
CP of an article for shopkeeper $=$ Marked price $-$ Discount
$$\begin{array}{cc}& =₹50000-10\%\text{of ₹50000}\\ & =₹50000-\left(\frac{10}{100}\right)\times 50000\\ & =₹50000-5000\\ & =₹45000\end{array}$$
Amount of GST paid by dealer to wholesaler,
$$\begin{array}{cc}\text{CGST}& =\text{SGST}=9\%\text{of}₹45000\\ & =\left(9/100\right)\times 45000\\ & =₹4050\end{array}$$
Amount of GST paid by dealer to wholesaler,
$$\begin{array}{cc}\text{CGST}& =\text{SGST}=9\%\text{of ₹}45000\\ & =\left(9/100\right)\times 45000\\ & =₹4050\end{array}$$
Amount paid by shopkeeper for an article $=$ CP of an article for shopkeeper + CGST paid by consumer + SGST paid by consumer $=₹45000+₹4050+₹4050=₹53100$
(ii) The amount paid by the consumer for the article.
SP of an article for consumer $=$ Marked price $-$ Discount
$$\begin{array}{cc}& =₹50000-4\%\text{of ₹50000}\\ & =₹50000-\left(\frac{4}{100}\right)\times 50000\\ & =₹50000-2000\\ & =₹48000\end{array}$$
Amount of GST paid by consumer to dealer,
$$\begin{array}{cc}\text{CGST}& =\text{SGST}=9\%\text{of}₹48000\\ & =\left(\frac{9}{100}\right)\times 48000\\ & =₹4320\end{array}$$
Amount paid by consumer for article $=$ CP of article for consumer + CGST paid by consumer + SGST paid by consumer
$$\begin{array}{cc}& =₹48000+₹4320+₹4320=\\ & ₹56640\end{array}$$
(iii) The amount of tax (under GST) paid by the shopkeeper to the Central Government. $=₹4320-₹4050=₹270$
(iv) The amount of tax (under GST) received by the State Government.