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GST | GST Exercise 1

Question 10

A shopkeeper in Delhi buys an article at the printed price of Rs 24000 horn a

wholesaler in Mumbai. The shopkeeper sells the article to a consumer in Delhi at a

profit of 15% on the basic reel price. if the rate of GST is 12%, find:

(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.

(ii) The amount which the consumer pays for the article.

(iii) The amount of tax (under GST) received by the State Government of Delhi.

(iv) The amount of tax (under GST) received by the Central Government.

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Given:

(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.

CP of an article for shopkeeper = ₹24000

Rate of GST = 12%

IGST collected by wholesaler from shopkeeper = 12% of ₹24000

= (12/100) × 24000

= ₹2880

The price inclusive of tax (under GST) at which the wholesaler bought the article =

CP of article for shopkeeper + IGST paid by shopkeeper to wholesaler = ₹24000 + ₹2880

= ₹26880

(ii) The amount which the consumer pays for the article.

CP of an article for shopkeeper = ₹24000

Profit on CP of article = 15% of CP

SP of an article by the shopkeeper to consumer = CP + Profit

= ₹24000 + 15% of ₹24000

= ₹24000 + (15/100) × 24000

= ₹24000 + 3600

= ₹27600

The amount which the consumer pays for the article = CP of article for consumer +

CGST paid by the consumer + SGST paid by consumer =

₹27600 + 6% of ₹27600 + 6% of ₹27600 =

₹27600 + (6/100) × ₹27600 + (6/100) × ₹27600 = ₹27600 + ₹1656 + ₹1656

= ₹30912

(iii) The amount of tax (under GST) received by the State Government of Delhi.

Amount of IGST for shopkeeper = ₹2880

SP of an article to consumer = CP of article for shopkeeper + profit on basic CP

= ₹24000 + 15% of ₹24000

= ₹24000 + (15/100) × ₹24000

= ₹24000 + ₹3600

= ₹27600

As the shopkeeper sells an article to consumer in Delhi; so this sales is Intra-state sales.

Amount of GST collected by shopkeeper from consumer,

CGST = SGST = 6% of ₹27600

= (6/100) × ₹27600

= ₹1656

Amount of tax paid by shopkeeper to state govt. = ₹2880 - ₹1656 = ₹1224

The amount of tax (under GST) received by the State Government of Delhi =

₹1656 - ₹1224 = ₹432

(iv) The amount of tax (under GST) received by the Central Government.

The amount of tax (under GST) received by the Central Government = IGST received

from wholesaler + CGST received from shopkeeper = ₹2880 + NIL = ₹2880

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Question 10

A shopkeeper in Delhi buys an article at the printed price of Rs 24000 horn a

wholesaler in Mumbai. The shopkeeper sells the article to a consumer in Delhi at a

profit of 15% on the basic reel price. if the rate of GST is 12%, find:

(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.

(ii) The amount which the consumer pays for the article.

(iii) The amount of tax (under GST) received by the State Government of Delhi.

(iv) The amount of tax (under GST) received by the Central Government.

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Given:

(i) The price inclusive of tax (under GST) at which the wholesaler bought the article.

CP of an article for shopkeeper = ₹24000

Rate of GST = 12%

IGST collected by wholesaler from shopkeeper = 12% of ₹24000

= (12/100) × 24000

= ₹2880

The price inclusive of tax (under GST) at which the wholesaler bought the article =

CP of article for shopkeeper + IGST paid by shopkeeper to wholesaler = ₹24000 + ₹2880

= ₹26880

(ii) The amount which the consumer pays for the article.

CP of an article for shopkeeper = ₹24000

Profit on CP of article = 15% of CP

SP of an article by the shopkeeper to consumer = CP + Profit

= ₹24000 + 15% of ₹24000

= ₹24000 + (15/100) × 24000

= ₹24000 + 3600

= ₹27600

The amount which the consumer pays for the article = CP of article for consumer +

CGST paid by the consumer + SGST paid by consumer =

₹27600 + 6% of ₹27600 + 6% of ₹27600 =

₹27600 + (6/100) × ₹27600 + (6/100) × ₹27600 = ₹27600 + ₹1656 + ₹1656

= ₹30912

(iii) The amount of tax (under GST) received by the State Government of Delhi.

Amount of IGST for shopkeeper = ₹2880

SP of an article to consumer = CP of article for shopkeeper + profit on basic CP

= ₹24000 + 15% of ₹24000

= ₹24000 + (15/100) × ₹24000

= ₹24000 + ₹3600

= ₹27600

As the shopkeeper sells an article to consumer in Delhi; so this sales is Intra-state sales.

Amount of GST collected by shopkeeper from consumer,

CGST = SGST = 6% of ₹27600

= (6/100) × ₹27600

= ₹1656

Amount of tax paid by shopkeeper to state govt. = ₹2880 - ₹1656 = ₹1224

The amount of tax (under GST) received by the State Government of Delhi =

₹1656 - ₹1224 = ₹432

(iv) The amount of tax (under GST) received by the Central Government.

The amount of tax (under GST) received by the Central Government = IGST received

from wholesaler + CGST received from shopkeeper = ₹2880 + NIL = ₹2880

Our top 5% students will be awarded a special scholarship to Lido.

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