Question

A is a manufacturer of T.V. sets in Delhi. He manufacturers a particular brand of T.V. set and marks it at Rs. 75,000. He then sells this T.V. set to a wholesaler B in Punjab at a discount of 30%. The wholesaler B raises the marked price of the T.V. set bought by 30% and then sells it to dealer C in Delhi. If the rate of GST = 5% find tax (under GST) paid by wholesaler B to the government.

Answer 1

Given the marked price of T.V. set by the manufacturer = ₹ 75000

So, the cost price of T.V. for wholesalers in Punjab

= 70% of ₹ 75000

= `₹ (70/100 xx 75000)`

= ₹ 52500  ...[Since discount = 30%]

New Marked price of T.V. set by wholesaler

= `₹ (52500 + 30/100 xx 52500)`

= ₹ (52500 + 15750)

= ₹ 68250

∴ Input Tax = 5% of ₹ 52,500

= `₹ (5/100 xx 52500)`

= ₹ 2625

Output Tax = 5% of ₹ 68250

= `₹ (5/100 xx 68250)`

= ₹ 3412.50

∴ Tax under GST paid by wholesaler to government

= ₹ (3412.50 − 2625)

= ₹ 787.50