Question

The marked price of a T.V. is ₹ 50,000. A dealer in West Bengal sells the article to a customer in the same state at 8% profit. If the rate of GST is 18%, find:

1. IGST, CGST and SGST paid by the dealer to the Central and State governments.
2. the amount that consumer pays for the article.

Answer 1

Given: 

Marked price of TV = ₹ 50,000

Profit = 8%

GST rate = 18% (9% CGST + 9% SGST)

Profit = 8% of 50,000 = ₹ 4,000

Selling price (before GST):

50,000 + 4,000 = ₹ 54,000

Total GST: 18% of 54,000

= ₹ 9,720

(i) CGST (9%) = ₹ 4,860

SGST (9%) = ₹ 4,860

IGST = Nil

(ii) 54,000 + 9,720 

= ₹ 63,720