Question

What is the relationship between the GST deposited by all dealers and the GST paid by the final consumer?

Options

• Total GST deposited by all dealers is more than the GST paid by the final consumer

• Total GST deposited by all dealers equals the GST paid by the final consumer

• Total GST deposited by all dealers is less than the GST paid by the final consumer

• Total GST deposited by all dealers equals the GST paid by the manufacturer

Answer 1

Total GST deposited by all dealers equals the GST paid by the final consumer. In the example, \[ \text{₹}480 + \text{₹}96 + \text{₹}48 = \text{₹}624 "\], which is \[12\% \] of the final taxable value of \[\text{₹}5200 \].