Question

A shopkeeper bought an A.C. from a distributor at a discount of 25% on the list price of ₹ 64,000. The shopkeeper sells the A.C. to a consumer at the list price. If the sales are intra-state and the rate of GST is 18%, then find:

1. the S.P. of the A.C., including GST, by the distributor.
2. the tax paid by the distributor to the State Government.
3. the tax under GST paid by the shopkeeper to the Central Government.
4. the tax, under GST, received by the State Government.
5. the price including tax under GST of the A.C. paid by the customer.

Answer 1

Listed price of AC = ₹ 64,000

C.P of A.C for shopkeeper = ₹ 64,000 − 25% of 64,000

= `₹ (64,000 - 25/100 xx 64,000)`

= ₹ (64,000 − 16,000)

= ₹ 48,000

Further S.P of an A.C to customer = ₹ 64,000

Since sales are intra-state.

∴ SGST = CGST = `1/2` GST = 9%

i. S.P of the AC including GST by the distributor = ₹ 48,000 + 18% of ₹ 48,000

= `₹ 48,000 + 18/100 xx 48,000`

= ₹ (48,000 + 8,640)

= ₹ 56,640

ii. Tax paid by the distributor to the state government = 9% of ₹ 48,000

= `₹ 9/100 xx 48,000`

= ₹ 4,320

iii. Tax under GST paid by shopkeeper to central government = Output CGST − Input CGST

= 9% of 44,000 − 9% of ₹ 48,000

= `9/100 xx 44,000 - 9/100 xx 48,000`

= ₹ (5,760 − 4,320)

= ₹ 1,440

iv. The tax under GST received by the state government = 9% of ₹ 48,000 + 9% of (64,000 − 48,000)

= `9/100 xx 48,000 + 9/100 xx 16,000`

= ₹ (4,320 + 1,440)

= ₹ 5,760

v. The price including tax under GST of the AC paid by the customer = ₹ 64,000 + 18% of ₹ 64,000

= `₹ 64,000 + 18/100 xx 64,000`

= ₹ (64,000 + 11,520)

= ₹ 75,520