Question

A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ₹ 6000. The dealer sells it to a consumer at a discount of 10% on the marked price. If the sales are intra-state and rate of GST is 5%, find:

1. the total amount paid by the consumer for the article.
2. the tax under GST paid by the dealer to the state government.
3. the amount of tax under GST received by the central government.

Answer 1

Given the marked price of an article = ₹ 6000

Discount = 30%

∴ C.P of an article = ₹ 6000 - 30% of 6000

= `₹ 6000  - ₹ 30/100 xx 6000`

= ₹ (6000 - 1800)

= ₹ 4200

i. S.P of the article to consume = M.P - discount

= ₹ 6000 - 10% of ₹ 6000

= `₹ 6000 - 10/100 xx 6000`

= ₹ (6000 - 600)

= ₹ 5400

Since the sales are intra-state.

∴ SGST = CGST = `1/2` GST

Total amount paid by the consumer for the article = C.P of article + GST

= ₹ 5400 + 5% of ₹ 5400

= `₹ 5400 + 5/100 xx 5400`

= ₹ (5400 + 270)

= ₹ 5670

ii. Tax under GST paid by dealer to state government = Output GST - Input GST

= 2.5% of ₹ 5400 - 2.5% of 4200

= `2.5/100 xx 5400 - 2.5/100 xx 4200`

= ₹ (135 – 105)

= ₹ 30

iii. Amount of tax under GST received by the Central Government = 2.5% of ₹ 4200 + 2.5% of the difference of Output and Input tax

= `2.5/100 xx 4200 + 2.5/100 xx (5400 - 4200)`

= 105 + 30

= ₹ 135