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A shopkeeper buys an article from a manufacturer for Rs 12000 and marks up it

price by 25%. The shopkeeper gives a discount of 10% on the marked up price and

he gives a further off-season discount of 5% or, the balance to a customer of TV. If

the sales are intra-state and the rate of CST is 12%, find:

(i) The price inclusive of tax (under GST) which the consumer pays for the TV.

(ii) The amount of tax (under GST) paid by the shopkeeper to the State

Government.

(iii) The amount of tax (under CST) received by the Central Government.

Answer:

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

SGST = CGST = ½ GST

Given:

(i) The price inclusive of tax (under GST) which the consumer pays for the TV.

CP of an article for shopkeeper = ₹12000

Marked price of article = ₹12000 + 25% of ₹12000

= ₹12000 + (25/100) × 12000

= ₹15000

Amount of discount given by shopkeeper = 10% of ₹15000

= (10/100) × 15000

= ₹1500

Again, shopkeeper gives off season discount of 5% on the balance = 5% of (15000 -

1500) = (5/100) × 13500

= ₹675

CP of TV for consumer = ₹13500 - ₹675 = ₹12825

Amount of GST paid by consumer = 12% of ₹12825

= (12/100) × 12825

= ₹1539

The price inclusive of tax (under GST) which the consumer pays for the TV = ₹12825 +

₹1539 = ₹14364

(ii) The amount of tax (under GST) paid by the shopkeeper to the Stale Government.

CGST = SGST = 6% of ₹12000

= (6/100) × 12000

= ₹720

GST paid by consumer to shopkeeper,

CGST = SGST = 6% of ₹12825

= (6/100) × 12825

= ₹769.50

The amount of tax (under GST) paid by the shopkeeper to the Stale Government =

₹769.50 - ₹720 = ₹49.50

(iii) The amount of tax (under CST) received by the Central Government.

CGST paid by manufacturer = ₹720

CGST paid by shopkeeper = ₹769.50 - ₹720 = ₹49.50

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

₹720 + ₹49.50 = ₹769.50

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