Question

The list price of an item is ₹ 30000. A dealer in M.P. sells the article to a customer in the same city at a profit of 20%. If the rate of GST is 12%, find:

1. IGST, CGST and SGST paid by the dealer to the Central and State governments.
2. The amount which the customer pays for the article.

Answer 1

(i) Cost price = ₹ 30,000

Profit = 20% of ₹ 30,000

= ₹ 6,000

Selling price (exclusive of GST) = ₹ 30,000 + ₹ 6,000

= ₹ 36,000

CGST = 0.06 × 36,000

= 2,160

SGST = 0.06 × 36,000

= 2,160

(ii) Total Amount = SP + CGST + SGST

= 36,000 + 2,160 + 2,160

= 40,320