Question

A dealer has given 10% discount on a showpiece of Rs 25,000. GST of 28% was charged on the discounted price. Find the total amount shown in the tax invoice. What is the amount of CGST and SGST ?

Answer 1

Printed price of showpiece = Rs 25,000

Discount on showpiece = 10% of Rs 25,000

= `10/100 xx 25000`

= Rs 2,500

Taxable value of showpiece = Rs 25,000 − Rs 2,500

= Rs 22,500

Rate of GST = 28%

Amount of GST on showpiece = 28% of Rs 22,500

= `28/100 xx 22500`

= Rs 6,300 

∴ Purchase price of showpiece = Taxable value of showpiece + Amount of GST on showpiece

= Rs 22,500 + Rs 6,300

= Rs 28,800

So, the total amount shown in the tax invoice is Rs 28,800.

Now,

Amount of CGST = Amount of SGST = `1/2` × Amount of GST on a showpiece

= `1/2 xx 6300`

= Rs 3,150 

Thus, the amount of CGST is Rs 3,150 and the amount of SGST is Rs 3,150.