Question

The list price of a motor-cycle is ₹ 150000. The wholesaler allows a discount of 10% to a dealer. The dealer sells the motorcycle to a consumer at a discount of 5% on the marked price. If the sales are in Delhi and the rate of GST is 18%, find:

1. the amount of tax (under GST) paid by the dealer to the Central government.
2. the amount of tax (under GST) paid by the dealer to the State government.
3. the amount of tax (under GST) received by the Central government.
4. the total amount inclusive of tax paid by the consumer for the motor-cycle.

Answer 1

(i) Dealer’s CP = 1,50,000 – (10% of 1,50,000)

= 1,50,000 – 15,000

= 1,35,000

Input CGST = 9% of 1,35,000 = `9/100xx1,35,000`

= ₹ 12,150

Input SGST = 9% of 1,35,000

= ₹ 12,150

(ii) Dealer’s SP = 1,50,000 – (5% of 1,50,000) 

= 1,50,000 – 7,500 

= ₹ 1,42,500

Output CGST = 9% of 1,42,500 

= `9/100xx1,42,500`

= ₹ 12,825

(iii) Net CGST = Output CGST – Input CGST

= 12,825 – 12,150

= 675

Net SGST = Output SGST – Input SGST

= 12,825 – 12,150

= 675

(iv) Total GST = 12,825 + 12,825

= 25,650

Total Amount = 1,42,500 + 25,650

= 1,68,150