A manufacturer sells a washing machine to a wholesaler for Rs 15000 The wholesaler sells it to a tra...

Question

A manufacturer sells a washing machine to a wholesaler for Rs 15000. The

wholesaler sells it to a trader at a profit of Rs 1200 and the trader sells it to a

consumer at a profit of Rs 1800. If all the sales are intra-state and the rate of GST is

12%, find:

(i) The amount of tax (under GST) received by the State Government from the

wholesaler.

(ii) The amount of tax (under GST) received by the Central Government from the

trader.

(iii) The amount that the consumer pays for the machine.

Accepted Answer

It is a case of intrastate transaction of goods and services SGST CGST GST Given CP of washing machine for wholesaler 15000 Rate of GST 12 Amount of GST paid by wholesaler to manufacturer CGST SGST 6 of 15000 6100 15000 900 SP of washing machine by wholesaler to trader CP profit 15000 1200 16200 Amount of GST paid by trader to wholesaler CGST SGST 6 of 16200 6100 16200 972 i The amount of tax under GST received by the State Government from the wholesaler 972 900 72 ii The amount of tax under GST received by the Central Government from the trader SP of washing machine for trader to consumer CP of washing machine profit 16200 1800 18000 Amount of GST paid by the consumer to trader CGST SGST 6 of 18000 6100 18000 1080 Amount of GST received by the Central Government from the trader 1080 972 108 iii The amount that the consumer pays for the machine CP of washing machine for consumer CGST paid by consumer SGST paid by consumer 15000 1080 1080 17160

ML Aggarwal Solutions Class 10 Mathematics Solutions for GST Exercise 1 in Chapter 1 - GST