Question

A shopkeeper buys an article at a discount of 20% from a wholesaler, whole marked price is ₹ 16,000. The shopkeeper sells it to a customer at the marked price. If the sales are intra-state and the rate of GST is 12%, find:

1. GST paid by the shopkeeper to the Central government.
2. GST received by Central government.
3. GST received by State government.
4. the amount at which the customer bought the article.

Answer 1

(i) Discount = `20/100xx16,000`

= 3,200

Cost Price for shopkeeper = 16,000 – 3,200 

= 12,800

Input CGST = 6% of 12,800

= `6/100xx12,800` 

= 768

Input SGST = 6% of 12,800

= `6/100xx12,800` 

= 768

Output CGST = 6% of 16,000

= `6/100xx16,000`

= 960

Output SGST = 6% of 16,000

= `6/100xx16,000`

= 960

Net CGST = Output CGST – Input CGST

= 960 – 768

= 192

(ii) Total CGST = Output CGST = 960

(iii) Total SGST = Output SGST = 960

(iv) Total GST = 960 + 960 

= 1,920

Total Amount = 16,000 + 1,920

= 17,920