Question

A registered computer engineer provides computer maintenance services to five different companies. He offers different discounts to different companies depending upon their payment terms.

Company	C1	C2	C3	C4	C5
Service costs	₹ 8200	₹ 12100	₹ 13600	₹ 8000	₹ 12500
Discount	30%	25%	20%	15%	10%

If the rate of GST is 18%, calculate the output GST for the computer engineer.

Answer 1

Given: Service costs and discounts: C₁: ₹ 8,200 (30% discount); C₂: ₹ 12,100 (25% discount); C₃: ₹ 13,600 (20% discount); C₄: ₹ 8,000 (15% discount); C₅: ₹ 12,500 (10% discount). GST rate = 18% (GST is charged on the value after discount).

Step-wise calculation:

1. C₁: Net taxable

= 8200 × (1 – 0.30) 

= 8200 × 0.70

= ₹ 5,740

GST = 18% of 5,740

= 0.18 × 5,740

= ₹ 1,033.20

2. C₂: Net taxable

= 12,100 × (1 – 0.25) 

= 12,100 × 0.75

= ₹ 9,075

GST = 0.18 × 9,075

= ₹ 1,633.50

3. C₃: Net taxable

= 13,600 × (1 – 0.20) 

= 13,600 × 0.80

= ₹ 10,880

GST = 0.18 × 10,880

= ₹ 1,958.40

4. C₄: Net taxable

= 8,000 × (1 – 0.15) 

= 8,000 × 0.85

= ₹ 6,800

GST = 0.18 × 6,800

= ₹ 1,224.00

5. C₅: Net taxable

= 12,500 × (1 – 0.10) 

= 12,500 × 0.90

= ₹ 11,250

GST = 0.18 × 11,250

= ₹ 2,025.00

Sum the GSTs: Total GST = 1,033.20 + 1,633.50 + 1,958.40 + 1,224.00 + 2,025.00 = ₹ 7,874.10

The output GST (total GST to be collected) by the computer engineer = ₹ 7,874.10.