Question

Sameer in Delhi buys an article for ₹ 40000. He sell it to Munir in Delhi at a profit of 15%. Munir sells the article to David in Rajasthan at a profit of 10%. If the rate of GST on the article is 18%, find the tax (under GST) paid by Munir to the government.

Answer 1

Cost price for Sameer = ₹ 40,000

Profit for Sameer = 15% of 40,000 

= `15/100xx40,000`

= ₹ 6,000

Selling Price for sameer = 40,000 + 6,000

= ₹ 46,000

Input GST for Munir (9% CGST + 9% SGST) = 18% of 46,000

= `18/100xx46,000`

Input tax credit (ITC) for Munir = ₹ 8,280

Profit for Munir = 10% of 46,000

= `10/100xx46,000`

= ₹ 4,600

Selling Price for Munir = 46,000 + 4,600

= ₹ 50,600

Output GST for Munir (IGST) = 18% of 50,600

= `18/100xx50,600` 

Output tax for Munir = ₹ 9,108

Tax paid = Output tax – ITC

= 9,108 – 8,280

= ₹ 828

The tax paid by Munir to the government is ₹ 828.