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Question
A wholesaler dealing in electric goods, sells an article at its printed price of ₹ 45,000 to a dealer at 10% discount. The dealer sells the same article to a consumer at a discount of 4% on its printed price. If the sales are intra-state and the rate of GST is 18%, find:
- the amount of tax, under GST, paid by the dealer to the central and state governments.
- the amount of tax, under GST, received by central and state governments.
- the total amount, inclusive of tax, paid by the consumer for the article.
Solution
For wholesaler:
Marked price = ₹ 45,000
Discount = 10% = `10/100 xx 45,000` = ₹ 4,500
S.P. = M.P. − Discount
= ₹ 45,000 − ₹ 4,500
= ₹ 40,500
For dealer:
C.P. = ₹ 40,500
Discount = 4% = `4/100 xx 45,000` = ₹ 1,800
S.P. = M.P. − Discount
= ₹ 45,000 − ₹ 18,00
= 43,200
(i) Tax paid by the dealer under GST = Output tax − Input tax
= Tax on S.P. − Tax on C.P.
= 18% of 43,200 − 18% of 40,500
= `18/100 xx 43,200 - 18/100 xx 40,500`
= ₹ (7,776 - 7,290)
= ₹ 486
CGST = SGST = `"GST"/2 = 486/2` = ₹ 243
Hence, the tax paid by the dealer to the central government is ₹ 243 and to the state government is ₹ 243.
(ii) GST paid by dealer = 18% of ₹ 43,200
= `18/100 xx 43,200`
= ₹ 7,776
∴ GST received by government = ₹ 7,776
CGST = SGST = `"GST"/2 = (7,776)/2` = ₹ 3,888
Hence, the amount of tax received by the central government is ₹ 3,888 and by the state government is ₹ 3,888.
(iii) For consumer:
C.P. = S.P. for dealer = ₹ 43,200
GST paid by the consumer = 18% of 43,200 = ₹ 7,776
∴ Total amount paid by consumer = ₹ 43,200 + ₹ 7,776 = ₹ 50,976
Hence, the total amount paid by the consumer is ₹ 50976.
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