Question

A manufacturing company in Faridabad (Haryana) marks a machine at ₹ 240000. It sells a machine to a dealer in Delhi at a discount of 25% on the marked price. The dealer sells it to a consumer in Kerala at a discount of 10% on the marked price. If the rate of GST is 12%, calculate the net IGST, CGST and SGST payable by the dealer.

Answer 1

Given:

Marked price (M.P.) = ₹ 2,40,000

Manufacturer (Faridabad, Haryana) to Dealer (Delhi): discount 25% on M.P.

Dealer (Delhi) to Consumer (Kerala): discount 10% on M.P.

GST rate = 12% (inter‑state supplies attract IGST; input IGST is set off against output IGST).

Step-wise calculation:

1. Dealer’s purchase price from manufacturer

Purchase S.P. = M.P. – 25% of M.P.

= 2,40,000 × 0.75

= ₹ 1,80,000

2. Input IGST paid by dealer (on purchase)

Input IGST = 12% of 1,80,000

= 0.12 × 1,80,000

= ₹ 21,600

3. Dealer’s selling price to consumer

Sale S.P. = M.P. – 10% of M.P.

= 2,40,000 × 0.90

= ₹ 2,16,000

4. Output IGST collected by dealer (on sale)

Output IGST = 12% of 2,16,000

= 0.12 × 2,16,000

= ₹ 25,920

5. Net IGST payable by dealer (output – input)

Net IGST = 25,920 – 21,600

= ₹ 4,320

6. CGST and SGST payable by dealer

Both = ₹ 0   ...(Transactions are inter‑state, so IGST applies; no CGST/SGST liability for these inter‑state supplies)