Question

The marked price of an article is ₹ 20000. The wholesaler allows a discount of 10% to a shopkeeper. The shopkeeper sells the article to a customer 800 above the marked price. If the sales are intra-state and the rate of GST is 18%, find:

1. the amount inclusive of tax (under GST) which the shopkeeper pays for the article.
2. the amount paid by the customer for the article.
3. the amount of tax (under GST) paid by the shopkeeper to the Central government.
4. the amount of tax (under GST) received by the State government.

Answer 1

(i) Discount = 0.10 × 20000 = 2000

Taxable value = 20000 – 2000 = 18000

Input tax = 0.18 × 18000 = 3240

Total Amount = 18000 + 3240

= 21240

(ii) Taxable Value (Customer) = 20000 + 800 

= 20800

Output tax = 0.18 × 20800

= 3744

Total Amount (Customer) = 20800 + 3744

= 24544

(iii) Input CGST = `3240/2`

= 1620

Output CGST = `3744/2`

= 1872

Net CGST = Output CGST – Input CGST

= 1872 – 1620

= 252

(iv) Input SGST = `3240/2`

= 1620

Output SGST = `3744/2`

= 1872