Question

A dealer in Mumbai sold a telescope to an end-user in Bangalore. The marked price of the telescope was ₹ 25000 and the dealer offered a discount of 20%. If the rate of GST is 28%, calculate the IGST, CGST and SGST charged from the end-user. Also determine the total amount of bill.

Answer 1

Given:

Marked price (MP) = ₹ 25,000

Discount = 20%

GST rate = 28%

Sale: Mumbai to Bangalore (inter‑state), so IGST applies (not CGST/SGST).

Step-wise calculation:

1. Discount amount

= 20% of ₹ 25,000 

= 0.20 × 25,000

= ₹ 5,000

2. Taxable value (selling price after discount)

= ₹ 25,000 – ₹ 5,000

= ₹ 20,000

3. GST on taxable value

= 28% of ₹ 20,000

= 0.28 × 20,000

= ₹ 5,600

Because this is an inter‑state sale, the entire GST is charged as IGST = ₹ 5,600; CGST = ₹ 0 and SGST = ₹ 0.

4. Total bill = Taxable value + IGST

= ₹ 20,000 + ₹ 5,600

= ₹ 25,600