Question

A wholesaler dealing in electric goods, sells an article at its printed price of ₹ 45,000 to a dealer at 10% discount. The dealer sells the same article to a consumer at a discount of 4% on its printed price. If the sales are intra-state and the rate of GST is 18%, find:

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

Answer 1

For wholesaler:

Marked price = ₹ 45,000

Discount = 10% = `10/100 xx 45,000` = ₹ 4,500

S.P. = M.P. − Discount

= ₹ 45,000 − ₹ 4,500

= ₹ 40,500

For dealer:

C.P. = ₹ 40,500

Discount = 4% = `4/100 xx 45,000` = ₹ 1,800

S.P. = M.P. − Discount

= ₹ 45,000 − ₹ 18,00

= 43,200

(i) Tax paid by the dealer under GST = Output tax − Input tax

= Tax on S.P. − Tax on C.P.

= 18% of 43,200 − 18% of 40,500

= `18/100 xx 43,200 - 18/100 xx 40,500`

= ₹ (7,776 - 7,290)

= ₹ 486

CGST = SGST = `"GST"/2​ = 486/2` = ₹ 243

Hence, the tax paid by the dealer to the central government is ₹ 243 and to the state government is ₹ 243.

(ii) GST paid by dealer = 18% of ₹ 43,200 

= `18/100 xx 43,200`

= ₹ 7,776

∴ GST received by government = ₹ 7,776

CGST = SGST = `"GST"/2​ = (7,776)/2` = ₹ 3,888

Hence, the amount of tax received by the central government is ₹ 3,888 and by the state government is ₹ 3,888.

(iii) For consumer:

C.P. = S.P. for dealer = ₹ 43,200

GST paid by the consumer = 18% of 43,200 = ₹ 7,776

∴ Total amount paid by consumer = ₹ 43,200 + ₹ 7,776 = ₹ 50,976

Hence, the total amount paid by the consumer is ₹ 50976.