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Question
A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ₹ 6000. The dealer sells it to a consumer at a discount of 10% on the marked price. If the sales are intra-state and rate of GST is 5%, find:
- the total amount paid by the consumer for the article.
- the tax under GST paid by the dealer to the state government.
- the amount of tax under GST received by the central government.
Solution
Given the marked price of an article = ₹ 6000
Discount = 30%
∴ C.P of an article = ₹ 6000 - 30% of 6000
= `₹ 6000 - ₹ 30/100 xx 6000`
= ₹ (6000 - 1800)
= ₹ 4200
i. S.P of the article to consume = M.P - discount
= ₹ 6000 - 10% of ₹ 6000
= `₹ 6000 - 10/100 xx 6000`
= ₹ (6000 - 600)
= ₹ 5400
Since the sales are intra-state.
∴ SGST = CGST = `1/2` GST
Total amount paid by the consumer for the article = C.P of article + GST
= ₹ 5400 + 5% of ₹ 5400
= `₹ 5400 + 5/100 xx 5400`
= ₹ (5400 + 270)
= ₹ 5670
ii. Tax under GST paid by dealer to state government = Output GST - Input GST
= 2.5% of ₹ 5400 - 2.5% of 4200
= `2.5/100 xx 5400 - 2.5/100 xx 4200`
= ₹ (135 – 105)
= ₹ 30
iii. Amount of tax under GST received by the Central Government = 2.5% of ₹ 4200 + 2.5% of the difference of Output and Input tax
= `2.5/100 xx 4200 + 2.5/100 xx (5400 - 4200)`
= 105 + 30
= ₹ 135
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