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The printed price of an article is Rs 50000. The wholesaler allows a discount of

10% to a shopkeeper. The shopkeeper sells the article to a consumer at 4% above

the marked price. If the sales are intra-state and the rate of GST is 18%, find:

(i) The amount inclusive of tax (under GST) which the shopkeeper pays for the

articles.

(ii) The amount paid by the consumer for the article.

(iii) The amount of tax (under GST) paid by the shopkeeper to the Central

Government.

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

Answer:

It is a case of intra-state transaction of goods and services.

SGST = CGST = ½ GST

Given:

Marked price of an article = ₹50000

Rate of GST = 18%

(i) The amount inclusive of tax (under GST) which the shopkeeper pays for the articles.

Rate of discount given by the wholesaler = 10%

CP of an article for shopkeeper = Marked price – Discount = ₹50000 – 10% of ₹50000

= ₹50000 – (10/100) × 50000

= ₹50000 – 5000

= ₹45000

Amount of GST paid by dealer to wholesaler,

CGST = SGST = 9% of ₹45000

= (9/100) × 45000

= ₹4050

Amount paid by shopkeeper for an article = CP of an article for shopkeeper + CGST paid

by consumer + SGST paid by consumer = ₹45000 + ₹4050 + ₹4050 = ₹53100

(ii) The amount paid by the consumer for the article.

SP of an article for consumer = Marked price – Discount

= ₹50000 – 4% of ₹50000

= ₹50000 – (4/100) × 50000

= ₹50000 – 2000

= ₹48000

Amount of GST paid by consumer to dealer,

CGST = SGST = 9% of ₹48000

= (9/100) × 48000

= ₹4320

Amount paid by consumer for article = CP of article for consumer + CGST paid by

consumer + SGST paid by consumer = ₹48000 + ₹4320 + ₹4320 = ₹56640

(iii) The amount of tax (under GST) paid by the shopkeeper to the Central Government.

₹4320 - ₹4050 = ₹270

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

SGST paid by wholesaler + SGST paid by shopkeeper = ₹4050 + ₹270 = ₹4320

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