Question

A shopkeeper buys an article from a manufacturer for ₹ 48000 and marks up its price by ₹ 12000. The shopkeeper gives a discount of 10% on the marked up price and gives a further off season discount of 5% in the balance to the customer. If the sales are intra-state and the rate of GST is 12%, find:

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

Answer 1

(i) MP = 48,000 + 12,000

= 60,000

Price after 10% discount = 60,000 × (1 – 0.10)

= 54,000

Final SP = 54,000 × (1 – 0.05) 

= 51,300

Total GST = 12% of 51,300

= `12/100xx51,300`

= 6,156

Price inclusive of tax = 51,300 + 6,156

= 57,456

(ii) Input SGST (paid to manufacturer) = 6% of 48,000

= 2,880

Output SGST (collected from customer) = 6% of 51,300

= 3,078

Net SGST paid = 3,078 – 2,880 

= 198

(iii) Total CGST = 6% of 51,300

= 3,078