Question

Prasad purchased a washing-machine from 'Maharashtra Electronic Goods'. The discount of 5% was given on the printed price of Rs 40,000. Rate of GST charged was 28%. Find the purchase price of washing machine. Also find the amount of CGST and SGST shown in the tax invoice.

Answer 1

Printed price of washing machine = Rs 40,000

Discount on washing machine = 5% of Rs 40,000 = 

\[\frac{5}{100} \times 40000\]  = Rs 2,000 Taxable value of washing machine = Rs 40,000 − Rs 2,000 = Rs 38,000

Rate of GST = 28%

Amount of GST on washing machine = 28% of Rs 38,000 =  \[\frac{28}{100} \times 38000\]  = Rs 10,640 ∴ Purchase price of washing machine

= Taxable value of washing machine + Amount of GST on washing machine

= Rs 38,000 + Rs 10,640

= Rs 48,640

So, the purchase price of washing machine is Rs 48,640.

Now,
 
Amount of CGST  = Amount of SGST = \[\frac{1}{2}\]  × Amount of GST on washing machine =  \[\frac{1}{2}\]  × 10640 = Rs 5,320

Thus, the amount of CGST is Rs 5,320 and the amount of SGST is Rs 5,320 in the tax invoice.