Question

A dealer supplied Walky-Talky set of Rs 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set.

Answer 1

Let the taxable value of the Walky-Talky set be Rs x.

Amount of walky-talky = Taxable value + GST

84,000 = x + 12% of x

84,000 = `x + 12/100 xx x`

84,000 = `x + (12x)/100`

84,000 = `(100x + 12x)/100`

84,000 × 100 = 112x

`(84,000 xx 100)/112 = x`

∴ x = 75,000

∴ The taxable value of the Walky-Talky is Rs 75,000.

Rate of GST = 12%

∴ CGST = SGST = 6% of 75,000

= `6/100 xx 75,000`

∴ CGST = SGST = Rs 4,500

∴ The amount of CGST and SGST charged by the dealer is Rs. 4,500 each. The taxable value of the set is Rs. 75,000.