Question

A shopkeeper buys a machine at a discount of 20% from the wholesaler. The printed price of the machine is ₹ 16000 and the rate of GST is 8%. The shopkeeper sells it to the consumer at the printed price. Calculate

1. the price at which the machine is bought by the consumer.
2. the CGST and the SGST payable by the shopkeeper to the Government assuming that all the transactions were intrastate.

Answer 1

Given:

Printed price (marked price) = ₹16,000.

Discount to shopkeeper = 20%.

GST rate = 8% (intra‑state → split equally as CGST 4% + SGST 4%).

Shopkeeper sells to consumer at the printed price ₹ 16,000.

Step-wise calculation:

1. Shopkeeper’s purchase price (before GST)

Discount = 20% of 16,000

= 0.20 × 16,000

= ₹ 3,200

Purchase price = 16,000 – 3,200

= ₹ 12,800

2. GST paid by shopkeeper to wholesaler (input GST)

Total input GST = 8% of 12,800

= 0.08 × 12,800

= ₹ 1,024

Input CGST = 4% of 12,800

= 0.04 × 12,800

= ₹ 512

Input SGST = ₹ 512.

3. GST collected by shopkeeper from consumer (output GST)

Total output GST = 8% of 16,000

= 0.08 × 16,000

= ₹ 1,280

Output CGST = 4% of 16,000

= 0.04 × 16,000

= ₹ 640

Output SGST = ₹ 640

4. Price paid by consumer (product price + GST)

Consumer pays = 16,000 + 1,280

= ₹ 17,280

5. Net CGST and SGST payable by shopkeeper to Government (output – input)

Net CGST payable

= 640 – 512

= ₹ 128

Net SGST payable

= 640 – 512

= ₹ 128

Total net GST payable

= 128 + 128

= ₹ 256