Question

A shopkeeper buys an article at a discount of 20% from a wholesaler, whole marked price is ₹ 16,000. The shopkeeper sells it to a customer at the marked price. If the sales are intra-state and the rate of GST is 12%, find:

1. GST paid by the shopkeeper to the Central government.
2. GST received by Central government.
3. GST received by State government.
4. the amount at which the customer bought the article.

Answer 1

i. Discount = `20/100 xx 16,000`

= 3,200

Cost Price for shopkeeper = 16,000 – 3,200 

= 12,800

Input CGST = 6% of 12,800

= `6/100 xx 12,800` 

= 768

Input SGST = 6% of 12,800

= `6/100 xx 12,800` 

= 768

Output CGST = 6% of 16,000

= `6/100 xx 16,000`

= 960

Output SGST = 6% of 16,000

= `6/100 xx 16,000`

= 960

Net CGST = Output CGST – Input CGST

= 960 – 768

= 192

ii. Total CGST = Output CGST = 960

iii. Total SGST = Output SGST = 960

iv. Total GST = 960 + 960 

= 1,920

Total Amount = 16,000 + 1,920

= 17,920