Question

A shopkeeper bought an air conditioner at a discount of 20% from a wholesaler, the printed price of the air conditioner being ₹ 28000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the GST rate is 18%, find

1. the CGST and SGST payable by the shopkeeper to the Government. 
2. the total amount paid by the consumer for the air conditioner.

[Assume that all transactions occured in the same state]

Answer 1

Given: Printed (list) price = ₹ 28,000. Discount on purchase from wholesaler = 20%. Discount on sale to consumer = 10% on printed price. GST rate = 18% (intra‑state ⇒ split equally as CGST and SGST).

Step-wise calculation:

1. Purchase price (shopkeeper’s cost):

Discount = 20% of ₹ 28,000 

= 0.20 × 28,000

= ₹ 5,600

Purchase price = 28,000 – 5,600

= ₹ 22,400

2. Selling price to consumer (taxable value, excl. GST):

Discount on sale = 10% of ₹ 28,000

= 0.10 × 28,000

= ₹ 2,800

Selling price (excl. tax) = 28,000 – 2,800

= ₹ 25,200

3. GST amounts (18% total = 9% CGST + 9% SGST):

CGST = 9% of ₹ 25,200 

= 0.09 × 25,200

= ₹ 2,268

SGST = 9% of ₹ 25,200

= ₹ 2,268

Total GST = CGST + SGST

= ₹ 2,268 + ₹ 2,268 

= ₹ 4,536

4. Total amount paid by the consumer:

Total = Selling price (excl. tax) + Total GST

Total = 25,200 + 4,536

= ₹ 29,736