ML Aggarwal Class 10 Maths Solutions Chapter 01 Goods and Services Tax

Exercise 1

 

Question 1. An article is marked at Rs. 15000. A dealer sells it to a consumer at 10% profit. If the rate of GST is 12%, find:
(i) the selling price (excluding tax) of the article.
(ii) the amount of tax (under GST) paid by the consumer.
(iii) the total amount paid by the consumer.
Answer:
Given details:
Marked price of the article = Rs. 15000
Profit percentage = 10%
GST rate = 12%

(i) Selling price of the item (excluding tax):
Selling Price = Marked Price + Profit
\( = 15000 + \left(\frac{10}{100} \times 15000\right) \)
\( = 15000 + 1500 \)
\( = \text{Rs. } 16500 \)

(ii) Amount of tax (GST) paid by the customer:
Tax amount = 12% of Rs. 16500
\( = \frac{12}{100} \times 16500 \)
\( = \text{Rs. } 1980 \)

(iii) Total payment made by the customer:
Total paid = Selling price + GST amount
\( = 16500 + 1980 \)
\( = \text{Rs. } 18480 \)
In simple words: First, find the selling price by adding the 10% profit to the Rs. 15000 marked price. Next, calculate the 12% GST on this selling price, and finally add this tax to get the total payment.

Exam Tip: Always make sure you calculate the tax on the final selling price after profit or discount, rather than on the initial marked price.

 

Question 2. A shopkeeper buy goods worth Rs. 4000 and sells these at a profit of 20% to a consumer in the same state. If GST is charged at 5%, find:
(i) the selling price (excluding tax) of the goods.
(ii) CGST paid by the consumer.
(iii) SGST paid by the consumer.
(iv) the total amount paid by the consumer.
Answer:
Given values:
Purchase cost of goods = Rs. 4000
Profit percentage = 20%
GST rate = 5%

Because the transaction is intra-state (within the same state), the 5% GST is split equally into 2.5% CGST and 2.5% SGST.

(i) Selling price (excluding tax):
Selling Price = Purchase Price + Profit
\( = 4000 + \left(\frac{20}{100} \times 4000\right) \)
\( = 4000 + 800 \)
\( = \text{Rs. } 4800 \)

(ii) CGST paid by the customer:
CGST = 2.5% of Rs. 4800
\( = \frac{2.5}{100} \times 4800 \)
\( = \text{Rs. } 120 \)

(iii) SGST paid by the customer:
SGST = 2.5% of Rs. 4800
\( = \frac{2.5}{100} \times 4800 \)
\( = \text{Rs. } 120 \)

(iv) Total bill paid by the customer:
Total amount paid = Selling price + CGST + SGST
\( = 4800 + 120 + 120 \)
\( = \text{Rs. } 5040 \)
In simple words: Add the 20% profit to Rs. 4000 to find the selling price of Rs. 4800. Since this is a local sale, split the 5% tax into 2.5% CGST and 2.5% SGST, which both equal Rs. 120. Sum these values for the final price of Rs. 5040.

Exam Tip: For intra-state transactions, you must always split the total GST equally into separate CGST and SGST categories.

 

Question 3. Mr. Bedi visits the market and buys the following articles :
Medicines costing Rs. 950, GST @ 5%
A pair of shoes costing Rs. 3000, GST @ 18%
A laptop bag costing Rs. 1000 with a discount of 30%, GST @ 18%
(i) Calculate the total amount of GST paid .
(ii) The total bill amount including GST paid by Mr. Bedi.
Answer:
(i) Tax analysis per item:

1. Medicines:
Cost price = Rs. 950
GST paid = 5% of Rs. 950
\( = \frac{5}{100} \times 950 \)
\( = \text{Rs. } 47.50 \)

2. Shoes:
Cost price = Rs. 3000
GST paid = 18% of Rs. 3000
\( = \frac{18}{100} \times 3000 \)
\( = \text{Rs. } 540 \)

3. Laptop Bag:
Original cost = Rs. 1000
Discount value = 30% of Rs. 1000 = Rs. 300
Discounted price (taxable value) = Rs. 1000 - Rs. 300 = Rs. 700
GST paid = 18% of Rs. 700
\( = \frac{18}{100} \times 700 \)
\( = \text{Rs. } 126 \)

Total GST paid:
Total GST = GST on medicines + GST on shoes + GST on laptop bag
\( = 47.50 + 540 + 126 \)
\( = \text{Rs. } 713.50 \)

(ii) Total bill amount:
Total cost of items (excluding tax) = Rs. 950 + Rs. 3000 + Rs. 700 = Rs. 4650
Total bill = Total price of items + Total GST
\( = 4650 + 713.50 \)
\( = \text{Rs. } 5363.50 \)
In simple words: Calculate the discount on the laptop bag first, then find the GST for each of the three items based on their actual prices. Adding all these GST amounts gives Rs. 713.50, and adding this tax to the prices of the goods gives the final bill.

Exam Tip: Never compute tax on the initial price of a discounted item - deduct the discount percentage first, then calculate GST on the remaining balance.

 

Question 4. A shopkeeper buys an article from a wholesaler for Rs. 20000 and sells it to a consumer at 10% profit. If the rate of GST is 12%, find the tax liability of the shopkeeper.
Answer:
Given values:
Wholesaler's price (Cost price for shopkeeper) = Rs. 20000
Profit margin = 10%
GST rate = 12%

Input GST paid by the shopkeeper to the wholesaler:
Input GST = 12% of Rs. 20000
\( = \frac{12}{100} \times 20000 \)
\( = \text{Rs. } 2400 \)

Selling price of the article to the consumer (excluding tax):
Selling Price = Cost Price + Profit
\( = 20000 + \left(\frac{10}{100} \times 20000\right) \)
\( = 20000 + 2000 \)
\( = \text{Rs. } 22000 \)

Output GST collected from the consumer:
Output GST = 12% of Rs. 22000
\( = \frac{12}{100} \times 22000 \)
\( = \text{Rs. } 2640 \)

Net tax liability of the shopkeeper:
Tax liability = Output GST - Input GST
\( = 2640 - 2400 \)
\( = \text{Rs. } 240 \)
In simple words: The shopkeeper pays Rs. 2400 tax when purchasing the item and collects Rs. 2640 when selling it. The shopkeeper's actual tax liability is the difference between these two amounts, which is Rs. 240.

Exam Tip: A faster way to double-check this answer is to calculate the GST directly on the profit earned: \( 12\% \text{ of Rs. } 2000 = \text{Rs. } 240 \).

 

Question 5. A dealer buys an article for Rs. 6000 from a wholesaler. The dealer sells the article to a consumer at 15% profit. If the sales are intra-state and the rate of GST is 18%, find
(i) input CGST and input SGST paid by the dealer.
(ii) output CGST and output SGST collected by the dealer.
(iii) the net CGST and SGST paid by the dealer.
(iv) the total amount paid by the consumer.
Answer:
Given values:
Dealer's cost price = Rs. 6000
Profit percentage = 15%
GST rate = 18%

Since the transaction is within the same state, the 18% GST is divided into 9% CGST and 9% SGST.

(i) Input tax paid by the dealer:
Input CGST = 9% of Rs. 6000
\( = \frac{9}{100} \times 6000 = \text{Rs. } 540 \)
Input SGST = 9% of Rs. 6000
\( = \frac{9}{100} \times 6000 = \text{Rs. } 540 \)

(ii) Selling price to the consumer (excluding tax):
Selling Price = Cost Price + Profit
\( = 6000 + \left(\frac{15}{100} \times 6000\right) \)
\( = 6000 + 900 \)
\( = \text{Rs. } 6900 \)

Output tax collected by the dealer:
Output CGST = 9% of Rs. 6900
\( = \frac{9}{100} \times 6900 = \text{Rs. } 621 \)
Output SGST = 9% of Rs. 6900
\( = \frac{9}{100} \times 6900 = \text{Rs. } 621 \)

(iii) Net tax paid by the dealer:
Net CGST = Output CGST - Input CGST = \( 621 - 540 = \text{Rs. } 81 \)
Net SGST = Output SGST - Input SGST = \( 621 - 540 = \text{Rs. } 81 \)

(iv) Total payment made by the consumer:
Total Amount = Selling Price + Output CGST + Output SGST
\( = 6900 + 621 + 621 \)
\( = \text{Rs. } 8142 \)
In simple words: Find the input taxes on the cost price and output taxes on the selling price. The difference between these outputs and inputs is the net tax paid, and the consumer pays the selling price along with both output taxes.

Exam Tip: Be sure to keep CGST and SGST calculations completely separate as requested by the sub-questions to ensure you receive full marks.

 

Question 6. A manufacturer buys raw material worth Rs. 7500 paying GST at the rate of 5%. He sells the finished product to a dealer at 40% profit. If the purchase and the sale both are intra-state and the rate of GST for the finished product is 12%, find:
(i) the input tax (under GST) paid by the manufacturer.
(ii) the output tax (under GST) collected by the manufacturer.
(iii) the tax (under GST) paid by the manufacturer to the Central and State Governments.
(iv) the amount paid by the dealer for the finished product.
Answer:
Given details:
Cost of raw material = Rs. 7500
GST on raw material = 5%
Profit percentage = 40%
GST on finished product = 12%

(i) Input GST paid by the manufacturer (at 5% rate, split as 2.5% CGST and 2.5% SGST):
Input CGST = 2.5% of Rs. 7500
\( = \frac{2.5}{100} \times 7500 = \text{Rs. } 187.50 \)
Input SGST = 2.5% of Rs. 7500
\( = \frac{2.5}{100} \times 7500 = \text{Rs. } 187.50 \)

(ii) Selling price of finished goods (excluding tax):
Selling Price = Raw Material Cost + Profit
\( = 7500 + \left(\frac{40}{100} \times 7500\right) \)
\( = 7500 + 3000 \)
\( = \text{Rs. } 10500 \)

Output GST collected (at 12% rate, split as 6% CGST and 6% SGST):
Output CGST = 6% of Rs. 10500
\( = \frac{6}{100} \times 10500 = \text{Rs. } 630 \)
Output SGST = 6% of Rs. 10500
\( = \frac{6}{100} \times 10500 = \text{Rs. } 630 \)

(iii) Net tax paid by the manufacturer to the governments:
Tax paid to Central Government (Net CGST) = Output CGST - Input CGST = \( 630 - 187.50 = \text{Rs. } 442.50 \)
Tax paid to State Government (Net SGST) = Output SGST - Input SGST = \( 630 - 187.50 = \text{Rs. } 442.50 \)

(iv) Amount paid by the dealer:
Total Amount = Selling Price + Output CGST + Output SGST
\( = 10500 + 630 + 630 \)
\( = \text{Rs. } 11760 \)
In simple words: The manufacturer pays 5% tax on raw materials and collects 12% tax on the finished product sold at Rs. 10500. The net tax is found by subtracting input taxes from output taxes, and the final price paid by the dealer is the sum of the sales price and output taxes.

Exam Tip: Pay close attention to the fact that the tax rate changes from 5% for raw materials to 12% for the finished product.

 

Question 7. A manufacturer sells a mobile phone to a dealer for Rs. 18000 and the dealer sells it to a consumer at a profit of Rs. 1500. If the sales are intra-state and the rate of GST is 12%, find:
(i) the amount of GST paid by the dealer to the State Government.
(ii) the amount of GST received by the Central Government.
(iii) the amount of GST received by the State Government.
(iv) the amount that the consumer pays for the mobile phone
Answer:
Given values:
Manufacturer's selling price to dealer = Rs. 18000
Dealer's profit = Rs. 1500
GST rate = 12% (CGST = 6%, SGST = 6%)

Dealer's input tax (paid to manufacturer):
Input CGST = 6% of Rs. 18000 = Rs. 1080
Input SGST = 6% of Rs. 18000 = Rs. 1080

Dealer's selling price to consumer (excluding tax):
Selling Price = Rs. 18000 + Rs. 1500 = Rs. 19500

Dealer's output tax (collected from consumer):
Output CGST = 6% of Rs. 19500 = Rs. 1170
Output SGST = 6% of Rs. 19500 = Rs. 1170

(i) Tax paid by the dealer to the State Government (Net SGST):
Net SGST = Output SGST - Input SGST = \( 1170 - 1080 = \text{Rs. } 90 \)

(ii) Total tax received by the Central Government:
Total CGST = CGST paid by manufacturer + Net CGST paid by dealer
\( = 1080 + (1170 - 1080) = \text{Rs. } 1170 \)

(iii) Total tax received by the State Government:
Total SGST = SGST paid by manufacturer + Net SGST paid by dealer
\( = 1080 + 90 = \text{Rs. } 1170 \)

(iv) Total payment made by the consumer:
Total Price = Dealer's Selling Price + Output CGST + Output SGST
\( = 19500 + 1170 + 1170 \)
\( = \text{Rs. } 21840 \)
In simple words: The dealer buys the phone for Rs. 18000 and sells it for Rs. 19500. The tax is calculated at 6% each for central and state governments. The consumer pays a total of Rs. 21840, while each government receives Rs. 1170 overall from this supply chain.

Exam Tip: The total tax received by each government is always equal to the tax rate applied to the final consumer's purchasing price (excluding tax).

 

Question 8. A shopkeeper buys a camera at a discount of 20% from a wholesaler, the printed price of the camera being Rs. 1600. The shopkeeper sells it to a consumer at the printed price. If the sales are intra-state and the rate of GST is 12%, find:
(i) GST paid by the shopkeeper to the Central Government.
(ii) GST received by the Central Government.
(iii) GST received by the State Government.
(iv) the amount at which the consumer bought the camera.
Answer:
Given values:
Printed price of camera = Rs. 1600
Discount offered to shopkeeper = 20%
GST rate = 12% (CGST = 6%, SGST = 6%)

Shopkeeper's purchase price (excluding tax):
Discount = 20% of Rs. 1600 = Rs. 320
Purchase Price = Rs. 1600 - Rs. 320 = Rs. 1280

Shopkeeper's input tax (paid to wholesaler):
Input CGST = 6% of Rs. 1280 = Rs. 76.80
Input SGST = 6% of Rs. 1280 = Rs. 76.80

Shopkeeper's selling price to consumer = Printed price = Rs. 1600

Shopkeeper's output tax (collected from consumer):
Output CGST = 6% of Rs. 1600 = Rs. 96
Output SGST = 6% of Rs. 1600 = Rs. 96

(i) Net tax paid by the shopkeeper to the Central Government (Net CGST):
Net CGST = Output CGST - Input CGST = \( 96 - 76.80 = \text{Rs. } 19.20 \)

(ii) Total CGST received by the Central Government:
Total CGST = CGST paid by wholesaler + Net CGST paid by shopkeeper
\( = 76.80 + 19.20 = \text{Rs. } 96 \)

(iii) Total SGST received by the State Government:
Total SGST = SGST paid by wholesaler + Net SGST paid by shopkeeper
\( = 76.80 + 19.20 = \text{Rs. } 96 \)

(iv) Total price paid by the consumer:
Total Price = Selling Price + Output CGST + Output SGST
\( = 1600 + 96 + 96 \)
\( = \text{Rs. } 1792 \)
In simple words: The shopkeeper gets a 20% discount on Rs. 1600, making the cost price Rs. 1280, but sells it at Rs. 1600. The net tax paid by the shopkeeper is the difference between tax collected on sale and tax paid on purchase, which is Rs. 19.20.

Exam Tip: Net CGST paid by the shopkeeper can also be verified by calculating 6% directly on his margin: \( 6\% \text{ of Rs. } 320 = \text{Rs. } 19.20 \).

 

Question 9. A dealer buys an article at a discount of 30% from the wholesaler, the marked price being Rs. 6000. The dealer sells it to a consumer at a discount of 10% on the marked price. If the sales are intra-state and the rate of GST is 5%, find:
(i) the amount paid by the consumer for the article.
(ii) the tax (under GST) paid by the dealer to the State Government.
(iii) the amount of tax (under GST) received by the Central Government.
Answer:
Given values:
Marked price of the article = Rs. 6000
Discount for dealer = 30%
Discount for consumer = 10%
GST rate = 5% (CGST = 2.5%, SGST = 2.5%)

Dealer's cost price (excluding tax):
Discount = 30% of Rs. 6000 = Rs. 1800
Cost Price = Rs. 6000 - Rs. 1800 = Rs. 4200

Dealer's input tax:
Input CGST = 2.5% of Rs. 4200 = Rs. 105
Input SGST = 2.5% of Rs. 4200 = Rs. 105

Dealer's selling price to consumer (excluding tax):
Discount = 10% of Rs. 6000 = Rs. 600
Selling Price = Rs. 6000 - Rs. 600 = Rs. 5400

Dealer's output tax:
Output CGST = 2.5% of Rs. 5400 = Rs. 135
Output SGST = 2.5% of Rs. 5400 = Rs. 135

(i) Amount paid by the consumer:
Total Consumer Cost = Selling Price + Output CGST + Output SGST
\( = 5400 + 135 + 135 \)
\( = \text{Rs. } 5670 \)

(ii) Tax paid by the dealer to the State Government (Net SGST):
Net SGST = Output SGST - Input SGST = \( 135 - 105 = \text{Rs. } 30 \)

(iii) Total tax received by the Central Government:
Total CGST received = CGST from wholesaler + CGST from dealer
\( = 105 + 30 = \text{Rs. } 135 \)
In simple words: The dealer buys the goods at Rs. 4200 and sells them at Rs. 5400. The consumer pays Rs. 5670 including the 5% tax. The dealer pays Rs. 30 state tax, and the center gets Rs. 135 total tax.

Exam Tip: Be sure to apply the consumer's 10% discount to the original marked price of Rs. 6000, not to the dealer's purchase price of Rs. 4200.

 

Question 10. 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 article.
(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:
Given details:
Printed price = Rs. 50000
Discount for shopkeeper = 10%
Marked price premium for consumer = 4%
GST rate = 18% (CGST = 9%, SGST = 9%)

Shopkeeper's purchase price (excluding tax):
Discount = 10% of Rs. 50000 = Rs. 5000
Cost Price = Rs. 50000 - Rs. 5000 = Rs. 45000

Shopkeeper's input tax:
Input CGST = 9% of Rs. 45000 = Rs. 4050
Input SGST = 9% of Rs. 45000 = Rs. 4050

(i) Total price paid by the shopkeeper:
Total Cost = Cost Price + Input CGST + Input SGST
\( = 45000 + 4050 + 4050 \)
\( = \text{Rs. } 53100 \)

Shopkeeper's selling price (excluding tax):
Premium = 4% of Rs. 50000 = Rs. 2000
Selling Price = Rs. 50000 + Rs. 2000 = Rs. 52000

Shopkeeper's output tax:
Output CGST = 9% of Rs. 52000 = Rs. 4680
Output SGST = 9% of Rs. 52000 = Rs. 4680

(ii) Amount paid by the consumer:
Total Consumer Cost = Selling Price + Output CGST + Output SGST
\( = 52000 + 4680 + 4680 \)
\( = \text{Rs. } 61360 \)

(iii) Tax paid by shopkeeper to the Central Government (Net CGST):
Net CGST = Output CGST - Input CGST = \( 4680 - 4050 = \text{Rs. } 630 \)

(iv) Total tax received by the State Government:
Total SGST received = SGST from wholesaler + Net SGST from shopkeeper
\( = 4050 + (4680 - 4050) = \text{Rs. } 4680 \)
In simple words: The shopkeeper buys at Rs. 45000 and sells at Rs. 52000. Shopkeeper pays Rs. 53100 in total. The customer pays Rs. 61360 including tax. The shopkeeper pays Rs. 630 tax to the Central Government, and the State Government gets Rs. 4680 total.

Exam Tip: Be careful to calculate the 4% premium based on the original printed price of Rs. 50000, not on the discounted cost price of Rs. 45000.

 

Question 11. A retailer buys a machine from a wholesaler for Rs. 40000. He marks the price of machine 15% above his cost price and sells it to a consumer at 5% discount on marked price. If the sales are intra-state and the rate of GST is 12%, find:
(i) the marked price of the machine
(ii) the amount which the consumer pays for the machine
(iii) the amount of tax (under GST) paid by the retailer to the Central Government.
(iv) the amount of tax (under GST) received by the State Government.
Answer:
Given values:
Retailer's cost price = Rs. 40000
Retailer's premium/markup percentage = 15%
Discount rate to consumer = 5%
GST rate = 12% (CGST = 6%, SGST = 6%)

(i) Marked price set by retailer:
Markup = 15% of Rs. 40000 = Rs. 6000
Marked Price = Rs. 40000 + Rs. 6000 = Rs. 46000

Retailer's input tax (paid to wholesaler):
Input CGST = 6% of Rs. 40000 = Rs. 2400
Input SGST = 6% of Rs. 40000 = Rs. 2400

Retailer's selling price to consumer (excluding tax):
Discount = 5% of Rs. 46000 = Rs. 2300
Selling Price = Rs. 46000 - Rs. 2300 = Rs. 43700

Retailer's output tax (collected from consumer):
Output CGST = 6% of Rs. 43700 = Rs. 2622
Output SGST = 6% of Rs. 43700 = Rs. 2622

(ii) Amount paid by the consumer:
Total paid = Selling Price + Output CGST + Output SGST
\( = 43700 + 2622 + 2622 \)
\( = \text{Rs. } 48944 \)

(iii) Net tax paid by the retailer to the Central Government (Net CGST):
Net CGST = Output CGST - Input CGST = \( 2622 - 2400 = \text{Rs. } 222 \)

(iv) Total tax received by the State Government:
Total SGST received = SGST from wholesaler + Net SGST from retailer
\( = 2400 + (2622 - 2400) = \text{Rs. } 2622 \)
In simple words: The retailer sets a marked price of Rs. 46000 and sells the machine for Rs. 43700 after a 5% discount. The customer pays Rs. 48944 total. The retailer pays a net CGST of Rs. 222, and the State Government receives Rs. 2622 in total.

Exam Tip: Verify that the 5% discount is calculated on the new marked price of Rs. 46000, and not on the retailer's original cost of Rs. 40000.

 

Question 12. A shopkeeper buys an article from a manufacturer for Rs. 12000 and marks up its 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% on the balance to a customer. If the sales are intra-state and the rate of GST is 12%, find:
(i) the price inclusive of tax (under GST) which the consumer pays for the article.
(ii) the amount of tax (under GST) paid by the shopkeeper to the State Government.
(iii) the amount of tax (under GST) received by the Central Government.
Answer:
Given values:
Manufacturer's selling price to shopkeeper = Rs. 12000
Markup percentage = 25%
First discount = 10%
Successive off-season discount = 5%
GST rate = 12% (CGST = 6%, SGST = 6%)

Shopkeeper's marked price:
Markup value = 25% of Rs. 12000 = Rs. 3000
Marked Price = Rs. 12000 + Rs. 3000 = Rs. 15000

Shopkeeper's input tax:
Input CGST = 6% of Rs. 12000 = Rs. 720
Input SGST = 6% of Rs. 12000 = Rs. 720

Price after the first 10% discount:
Price balance = Rs. 15000 - (10% of Rs. 15000) = Rs. 15000 - Rs. 1500 = Rs. 13500

Price after the off-season 5% discount (Consumer's cost excluding tax):
Selling Price = Rs. 13500 - (5% of Rs. 13500) = Rs. 13500 - Rs. 675 = Rs. 12825

Shopkeeper's output tax:
Output CGST = 6% of Rs. 12825 = Rs. 769.50
Output SGST = 6% of Rs. 12825 = Rs. 769.50

(i) Price paid by the consumer:
Total consumer cost = Selling Price + Output CGST + Output SGST
\( = 12825 + 769.50 + 769.50 \)
\( = \text{Rs. } 14364 \)

(ii) Tax paid by shopkeeper to the State Government (Net SGST):
Net SGST = Output SGST - Input SGST = \( 769.50 - 720 = \text{Rs. } 49.50 \)

(iii) Total tax received by the Central Government:
Total CGST received = CGST from manufacturer + Net CGST from shopkeeper
\( = 720 + 49.50 = \text{Rs. } 769.50 \)
In simple words: The shopkeeper marks the item up to Rs. 15000, then applies discounts of 10% and 5% sequentially, giving a selling price of Rs. 12825. Including 12% total tax, the consumer pays Rs. 14364. The shopkeeper pays Rs. 49.50 to the state, and the central government receives Rs. 769.50.

Exam Tip: Do not add successive discounts together (10% + 5% = 15%). Always apply them one after the other to get the correct selling price.

 

Question 13. The printed price of an article is Rs. 40000. A wholesaler in Uttar Pradesh buys the article from a manufacturer in Gujarat at a discount of 10% on the printed price. The wholesaler sells the article to a retailer in Himachal at 5% above the printed price. If the rate of GST on the article is 18%, find:
(i) The amount inclusive of tax (under GST) paid by the wholesaler for the article.
(ii) The amount inclusive of tax (under GST) paid by the retailer for the article.
(iii) The amount of tax (under GST) paid by the wholesaler to the Central Government.
(iv) The amount of tax (under GST) received by the Central Government.
Answer:
Given values:
Printed price = Rs. 40000
GST rate = 18%
Note: Since transactions occur across state borders (Gujarat to UP, and UP to Himachal), Integrated GST (IGST) at 18% applies.

(i) Wholesaler's purchase from manufacturer:
Discount = 10% of Rs. 40000 = Rs. 4000
Cost Price for wholesaler = Rs. 40000 - Rs. 4000 = Rs. 36000
IGST paid by wholesaler = 18% of Rs. 36000
\( = \frac{18}{100} \times 36000 = \text{Rs. } 6480 \)
Amount paid by wholesaler = Cost Price + IGST
\( = 36000 + 6480 = \text{Rs. } 42480 \)
Input IGST of wholesaler = Rs. 6480

(ii) Retailer's purchase from wholesaler:
Premium rate = 5% of Rs. 40000 = Rs. 2000
Selling Price for wholesaler = Rs. 40000 + Rs. 2000 = Rs. 42000
IGST collected by wholesaler = 18% of Rs. 42000
\( = \frac{18}{100} \times 42000 = \text{Rs. } 7560 \)
Amount paid by retailer = Selling Price + IGST
\( = 42000 + 7560 = \text{Rs. } 49560 \)
Output IGST of wholesaler = Rs. 7560

(iii) Tax paid by the wholesaler to the Central Government:
Net IGST paid = Output IGST - Input IGST
\( = 7560 - 6480 = \text{Rs. } 1080 \)

(iv) Total IGST received by the Central Government:
Total tax received = IGST from manufacturer + Net IGST from wholesaler
\( = 6480 + 1080 = \text{Rs. } 7560 \)
In simple words: The wholesaler pays Rs. 42480 (with 18% IGST) to buy the item. The retailer pays Rs. 49560 to buy it from the wholesaler. The wholesaler pays Rs. 1080 net tax to the central government, and the total tax received by the center is Rs. 7560.

Exam Tip: Since both sales are inter-state, use IGST directly instead of splitting the tax into CGST and SGST.

 

Question 14. A dealer in Delhi buys fertiliser for Rs. 16000 from a wholesaler in Delhi. He sells it to a farmer in Rajasthan at a profit of 25%. If the rate of GST is 5%, find:
(i) the tax (under GST) paid by the wholesaler to Governments.
(ii) the tax (under GST) paid by the dealer to the Government.
(iii) the amount which the farmer pay for the fertiliser.
Answer:
Given values:
Dealer's cost price = Rs. 16000
GST rate = 5%
Profit percentage = 25%

(i) Tax paid by the wholesaler to the governments (Delhi to Delhi is intra-state, so CGST = 2.5%, SGST = 2.5%):
CGST collected = 2.5% of Rs. 16000 = Rs. 400 (to Central Government)
SGST collected = 2.5% of Rs. 16000 = Rs. 400 (to Delhi Government)
Total tax paid by wholesaler = \( 400 + 400 = \text{Rs. } 800 \)
Dealer's input CGST = Rs. 400, Input SGST = Rs. 400 (Total Input Tax Credit = Rs. 800)

(ii) Tax paid by the dealer to the Government (Delhi to Rajasthan is inter-state, so 5% IGST applies):
Dealer's Selling Price = Cost Price + Profit
\( = 16000 + \left(\frac{25}{100} \times 16000\right) = 16000 + 4000 = \text{Rs. } 20000 \)
Output IGST collected = 5% of Rs. 20000 = Rs. 1000
Net IGST paid by dealer = Output IGST - Total Input Tax Credit
\( = 1000 - 800 = \text{Rs. } 200 \) (paid as IGST to the Central Government)

(iii) Amount paid by the farmer:
Total Price = Dealer's Selling Price + Output IGST
\( = 20000 + 1000 = \text{Rs. } 21000 \)
In simple words: The wholesaler pays Rs. 400 CGST and Rs. 400 SGST. The dealer sells the fertilizer to a farmer in Rajasthan for Rs. 20000, collecting Rs. 1000 IGST. The dealer sets off the Rs. 800 input tax already paid and pays the remaining Rs. 200. The farmer pays Rs. 21000 in total.

Exam Tip: Remember that input tax credits from SGST and CGST can both be utilized to set off output IGST liability.

 

Question 15. A shopkeeper in Delhi buys an article at the printed price of Rs. 24000 from a wholesaler in Mumbai. The shopkeeper sells the article to a consumer in Delhi at a profit of 15% on the basic cost 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.
Answer:
Given details:
Printed price = Rs. 24000
GST rate = 12%
Transaction 1 (Mumbai to Delhi): Inter-state sale, so 12% IGST is charged.
Transaction 2 (Delhi to Delhi): Intra-state sale, so 6% CGST and 6% SGST are charged.

(i) Price paid by the shopkeeper to the wholesaler (inclusive of tax):
IGST paid = 12% of Rs. 24000 = Rs. 2880
Total cost = \( 24000 + 2880 = \text{Rs. } 26880 \)
Shopkeeper's Input IGST credit = Rs. 2880

(ii) Price paid by the consumer:
Shopkeeper's profit = 15% of Rs. 24000 = Rs. 3600
Selling Price = Rs. 24000 + Rs. 3600 = Rs. 27600
Output CGST collected = 6% of Rs. 27600 = Rs. 1656
Output SGST collected = 6% of Rs. 27600 = Rs. 1656
Total amount paid by consumer = Selling Price + Output CGST + Output SGST
\( = 27600 + 1656 + 1656 = \text{Rs. } 30912 \)

(iii) Tax received by the Delhi State Government:
We set off the shopkeeper's Input IGST (Rs. 2880) against Output taxes:
First, set off against Output CGST: Remaining Input IGST = \( 2880 - 1656 = \text{Rs. } 1224 \)
Next, set off the remaining Input IGST against Output SGST:
Net SGST to be paid to Delhi Government = Output SGST - Remaining Input IGST
\( = 1656 - 1224 = \text{Rs. } 432 \)
Therefore, Delhi State Government receives Rs. 432.

(iv) Tax received by the Central Government:
Central Government received the initial IGST paid by the shopkeeper = Rs. 2880.
Since Output CGST (Rs. 1656) was completely offset by Input IGST, the shopkeeper pays Rs. 0 net CGST.
Total Central Government tax received = Rs. 2880.
In simple words: The shopkeeper pays Rs. 2880 IGST initially. The consumer pays Rs. 30912 total, including Rs. 1656 CGST and Rs. 1656 SGST. Due to tax credit rules, the central government gets Rs. 2880 and the Delhi government receives Rs. 432.

Exam Tip: Remember the order of utilizing Input IGST credit: first utilize it to offset Output IGST, then Output CGST, and lastly Output SGST.

 

Question 16. A dealer in Maharashtra buys an article from a wholesaler in Mumbai at a discount of 20%, the printed price of the article being Rs. 20,000. He sells the article to a customer in Telangana at a discount of 10% on the printed price. If the rate of GST is 12%, find :
(i) The tax (under GST) paid by wholesaler to the Government.
(ii) The tax (under GST) paid by the dealer to the Government.
(iii) The amount which the consumer pays for the article.
Answer:
Given details:
Printed price = Rs. 20000
GST rate = 12%
Transaction 1 (Mumbai to Maharashtra Dealer): Intra-state, CGST = 6%, SGST = 6%.
Transaction 2 (Maharashtra to Telangana Customer): Inter-state, IGST = 12%.

(i) Tax paid by wholesaler to the Government:
Dealer's purchase price = Rs. 20000 - 20% of Rs. 20000 = Rs. 16000
CGST collected by wholesaler = 6% of Rs. 16000 = Rs. 960
SGST collected by wholesaler = 6% of Rs. 16000 = Rs. 960
Total tax paid by wholesaler = Rs. 960 CGST and Rs. 960 SGST (Total = Rs. 1920)
Dealer's Input CGST = Rs. 960, Input SGST = Rs. 960 (Total Input credit = Rs. 1920)

(ii) Tax paid by the dealer to the Government:
Consumer's buying price = Rs. 20000 - 10% of Rs. 20000 = Rs. 18000
Output IGST collected = 12% of Rs. 18000 = Rs. 2160
Net IGST paid by dealer = Output IGST - Total Input credit
\( = 2160 - 1920 = \text{Rs. } 240 \)

(iii) Amount paid by the consumer:
Total cost = Consumer's buying price + Output IGST
\( = 18000 + 2160 = \text{Rs. } 20160 \)
In simple words: The wholesaler pays Rs. 960 CGST and Rs. 960 SGST on a sale of Rs. 16000. The dealer sells the item to a Telangana customer for Rs. 18000, collecting Rs. 2160 IGST. The dealer pays Rs. 240 net tax after setting off the input credits, and the customer pays Rs. 20160 in total.

Exam Tip: Be sure to treat the wholesaler-dealer transaction as intra-state (CGST/SGST) and the dealer-consumer transaction as inter-state (IGST).

 

Question 17. Kiran purchases an article for Rs 5310 which includes 10% rebate on the marked price and 18% tax (under GST) on the remaining price. Find the marked price of the article.
Answer:
Given:
Total inclusive price paid = Rs. 5310
Rebate percentage = 10%
GST rate = 18%

Let the marked price of the article be \( P \).
Price after rebate (taxable cost) = \( P - 10\% \text{ of } P = 0.9P \)
GST on this price = 18% of \( 0.9P \)

Total amount paid:
\( \text{Total Price} = \text{Price after rebate} + \text{GST} \)
\( 5310 = 0.9P + \left(\frac{18}{100} \times 0.9P\right) \)
\( 5310 = 0.9P + 0.162P \)
\( 5310 = 1.062P \)
\( P = \frac{5310}{1.062} \)
\( P = \text{Rs. } 5000 \)

Thus, the marked price of the article is Rs. 5000.
In simple words: If the marked price is P, a 10% discount reduces it to 0.9P. Adding 18% tax on this gives 1.062P, which equals the total paid amount of Rs. 5310. Solving for P gives us the marked price of Rs. 5000.

Exam Tip: Always set up the algebraic equation with a single variable to represent the unknown marked price, and apply the discounts before the tax factor.

 

Question 18. A shopkeeper buys an article whose list price is Rs. 8000 at some rate of discount from the wholesaler. He sells the article to a consumer at the list price. The sales are intra-state and the rate of GST is 18%. If the shopkeeper pays a tax (under GST) of Rs. 72 to the State Government, find the rate of discount at which he bought the article from the wholesaler.
Answer:
Given values:
List price = Rs. 8000
GST rate = 18% (CGST = 9%, SGST = 9%)
Net State tax (SGST) paid by shopkeeper = Rs. 72

Let the rate of discount be \( x\% \).
Cost price for shopkeeper = \( 8000 - \left(\frac{x}{100} \times 8000\right) = 8000 - 80x \)

Input SGST paid by shopkeeper:
Input SGST = 9% of \( (8000 - 80x) \)
\( = \frac{9}{100} \times (8000 - 80x) = 720 - 7.2x \)

Shopkeeper sells the article at the list price of Rs. 8000:
Output SGST collected = 9% of Rs. 8000 = Rs. 720

Net SGST paid by the shopkeeper:
Net SGST = Output SGST - Input SGST = Rs. 72
\( 720 - (720 - 7.2x) = 72 \)
\( 7.2x = 72 \)
\( x = \frac{72}{7.2} = 10 \)

Therefore, the rate of discount is 10%.
In simple words: The shopkeeper sells the item at full price and pays Rs. 72 in state tax, which is 9% of his profit. This profit of Rs. 800 is the discount he received from the wholesaler, which translates to a 10% discount on Rs. 8000.

Exam Tip: You can quickly find the discount value by using the relation: \( \text{Net SGST paid} = \text{SGST rate} \times \text{Profit} \). Hence, \( 72 = 9\% \times \text{Profit} \implies \text{Profit (Discount)} = \text{Rs. } 800 \), which is \( \left(\frac{800}{8000}\right) \times 100 = 10\% \).

 

Multiple Choice Questions

Directions (Questions 1 to 6): A retailer purchases spectacles for Rs. 1500 from a wholesaler and sells it to a consumer at 10% profit. If the sales are intra-state and the rate of GST is 12%, then choose the correct answer from the given four options for questions 1 to 6.

 

Question 1. The selling price of the spectacles by the retailer (excluding tax) is
(a) Rs. 1500
(b) Rs. 1650
(c) Rs. 1848
(d) Rs. 1800
Answer: (b) Rs. 1650
In simple words: The retailer sells the spectacles at a 10% profit on his cost price of Rs. 1500, which adds Rs. 150 to the price, making the selling price Rs. 1650.

Exam Tip: Double-check if the question specifically asks for price 'excluding tax' or 'including tax' to avoid selecting the wrong option.

 

Question 2. The selling price of the spectacles including tax (under GST) by the retailer is
(a) Rs. 1650
(b) Rs. 1800
(c) Rs. 1848
(d) Rs. 1830
Answer: (c) Rs. 1848
In simple words: The selling price is Rs. 1650. Adding 12% total GST (which is Rs. 198) gives a total price of Rs. 1848.

Exam Tip: You can directly multiply the tax-exclusive selling price by 1.12 to find the tax-inclusive price: \( 1650 \times 1.12 = \text{Rs. } 1848 \).

 

Question 3. The tax (under GST) paid by the wholesaler to the Central Government is
(a) Rs. 90
(b) Rs. 9
(c) Rs. 99
(d) Rs. 180
Answer: (a) Rs. 90
In simple words: The wholesaler sells the article for Rs. 1500. The Central Government's tax (CGST) is half of the 12% total GST, which is 6% of Rs. 1500, equaling Rs. 90.

Exam Tip: Wholesalers pay CGST on their sales price directly since there is no mention of prior input tax credit.

 

Question 4. The tax (under GST) paid by the retailer to the State Government is
(a) Rs. 99
(b) Rs. 9
(c) Rs. 18
(d) Rs. 198
Answer: (b) Rs. 9
In simple words: The retailer collects Rs. 99 in state tax (SGST) on the sale but gets credit for the Rs. 90 already paid, resulting in a net payment of Rs. 9.

Exam Tip: Net SGST paid by the retailer is also equal to the SGST rate of 6% applied to their profit value of Rs. 150: \( 6\% \text{ of Rs. } 150 = \text{Rs. } 9 \).

 

Question 5. The tax (under GST) received by the Central Government is
(a) Rs. 18
(b) Rs. 198
(c) Rs. 90
(d) Rs. 99
Answer: (d) Rs. 99
In simple words: The total CGST collected is Rs. 90 from the wholesaler and Rs. 9 from the retailer, which adds up to Rs. 99.

Exam Tip: The total tax received by any government body is always equal to its tax rate applied to the consumer's final buy price (excluding tax): \( 6\% \text{ of Rs. } 1650 = \text{Rs. } 99 \).

 

Question 6. The cost of spectacles to the consumer inclusive of tax is
(a) Rs. 1650
(b) Rs. 1800
(c) Rs. 1830
(d) Rs. 1848
Answer: (d) Rs. 1848
In simple words: The final amount paid by the consumer is the selling price of Rs. 1650 plus the 12% total tax of Rs. 198, which equals Rs. 1848.

Exam Tip: This question is equivalent to Question 2; ensure your answers are consistent across both.

 

Directions (Questions 7 to 11): A shopkeeper bought a machine from a distributor at a discount of 25% of the listed price of Rs. 32000. The shopkeeper sells the machine to a consumer at listed price. If the sales are intra-state and the rate of GST is 18%, then choose the correct answer from the given four options for questions 7 to 11:

 

Question 7. The selling price of machine including tax(under GST) by the distributor is
(a) Rs. 32000
(b) Rs. 24000
(c) Rs. 28320
(d) Rs. 26160
Answer: (c) Rs. 28320
In simple words: The distributor sells the machine to the shopkeeper at a 25% discount, making the price Rs. 24000. Adding 18% GST (Rs. 4320) to this discounted price results in Rs. 28320.

Exam Tip: Be sure to apply the tax to the selling price after the discount (Rs. 24000) rather than on the listed price.

 

Question 8. The tax (under GST) paid by the distributor to the State Government is
(a) Rs. 4320
(b) Rs. 2160
(c) Rs. 2880
(d) Rs. 720
Answer: (b) Rs. 2160
In simple words: The distributor sells the item at Rs. 24000. The state tax (SGST) is 9% of this amount, which equals Rs. 2160.

Exam Tip: For intra-state transactions, the tax paid to the state is exactly half of the total GST rate.

 

Question 9. The tax (under GST) paid by the shopkeeper to the Central Government is
(a) Rs. 720
(b) Rs. 1440
(c) Rs. 2880
(d) Rs. 2160
Answer: (a) Rs. 720
In simple words: The shopkeeper sells the machine for Rs. 32000, collecting Rs. 2880 CGST. Since the input CGST paid was Rs. 2160, the shopkeeper pays the net tax of Rs. 720.

Exam Tip: You can verify this net tax by calculating 9% CGST directly on the shopkeeper's markup: \( 9\% \text{ of Rs. } 8000 = \text{Rs. } 720 \).

 

Question 10. The tax (under GST) received State Government is
(a) Rs. 5760
(b) Rs. 4320
(c) Rs. 1440
(d) Rs. 2880
Answer: (d) Rs. 2880
In simple words: The State Government receives Rs. 2160 from the distributor and Rs. 720 from the shopkeeper, which totals Rs. 2880.

Exam Tip: The total state tax received is always equal to the state tax rate applied to the final sale price: \( 9\% \text{ of Rs. } 32000 = \text{Rs. } 2880 \).

 

Question 11. The price including tax(under GST) paid by the consumer is
(a) Rs. 28320
(b) Rs. 37760
(c) Rs. 34880
(d) Rs. 32000
Answer: (b) Rs. 37760
In simple words: The customer pays the list price of Rs. 32000 plus the 18% GST (Rs. 5760), which equals Rs. 37760.

Exam Tip: Solve quickly by calculating final price as \( 32000 \times 1.18 = \text{Rs. } 37760 \).

 

Question 12. For an Intra-state sale, the CGST paid by a dealer to the Central government is Rs. 120. If the marked price of the article is Rs. 2000, the rate of GST is:
(a) 6%
(b) 10%
(c) 12%
(d) 16.67%
Answer: (c) 12%
In simple words: The CGST is \( \frac{120}{2000} \times 100 = 6\% \). Since the total GST rate is twice the CGST rate, the overall GST is 12%.

Exam Tip: Always double your calculated CGST rate to obtain the final state-central combined GST percentage.

 

Question 13. An article which is marked at Rs. 1200 is available at a discount of 20% and the rate of GST is 18%. The amount of SGST is :
(a) Rs. 216.00
(b) Rs. 172.80
(c) Rs. 108.00
(d) Rs. 86.40
Answer: (d) Rs. 86.40
In simple words: The cost after a 20% discount is Rs. 960. The state tax (SGST) is 9% (half of 18%) of Rs. 960, which equals Rs. 86.40.

Exam Tip: First subtract the discount to find the actual selling price, then compute the state SGST on that discounted price.

 

Assertion-Reason Type Questions

 

Question. A dealer buys an article for Rs. 1,500. He sells it to a customer at 10% profit. The rate of GST is 18%.
Assertion (A) : The price which the customer pays for the article is Rs. 1,650 (excluding GST).
Reason (R) : GST is charged on the cost price of the article.
(a) Assertion (A) is true, but Reason (R) is false.
(b) Assertion (A) is false, but Reason (R) is true.
(c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is incorrect reason for Assertion (A).
Answer: (a) Assertion (A) is true, but Reason (R) is false.
In simple words: The selling price excluding GST is \( 1500 + 10\% \text{ of } 1500 = \text{Rs. } 1650 \), so the Assertion is true. However, GST is charged on the selling price, not the cost price, making the Reason false.

Exam Tip: GST is calculated on the transaction value (selling price), which is the final price offered to the consumer.

 

Question. A dealer in U.P. buys an article for Rs. 50,000 from a wholesaler in U.P.
Assertion (A): The above transaction is an intra-state transaction.
Reason (R): The sales between the same state are known as intra-state.
(a) Assertion (A) is true, but Reason (R) is false.
(b) Assertion (A) is false, but Reason (R) is true.
(c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is incorrect reason for Assertion (A).
Answer: (c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).
In simple words: Since both the dealer and the wholesaler are in Uttar Pradesh, the transaction is local (intra-state). The Reason correctly explains why this is an intra-state transaction.

Exam Tip: A transaction is classified as intra-state when both the supplier and the recipient are within the same state boundaries.

 

Question. A shopkeeper buys a TV from a manufacturer at a discount of 20% of the listed price of Rs. 54,000 and sells it to a customer at the listed price. The sales are intra-state and the rate of GST is 18%.
Assertion (A): The tax (under GST) received by the State Government is Rs. 4,860.
Reason (R): For intra-state sales, GST is divided equally among State Government and the Central government.
(a) Assertion (A) is true, but Reason (R) is false.
(b) Assertion (A) is false, but Reason (R) is true.
(c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is incorrect reason for Assertion (A).
Answer: (c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).
In simple words: The consumer buys the TV at the list price of Rs. 54000. The SGST is 9% of Rs. 54000, which is Rs. 4860, making the Assertion true. The Reason is also true and correctly explains this split.

Exam Tip: Remember that total GST is always shared equally as CGST and SGST for all local sales, which directly explains the Assertion.

 

Chapter Test

 

Question 1. A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs. 18000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the sales are intra-state and the rate of GST is 12%, find:
(i) the price inclusive of tax (under GST) at which the shopkeeper bought the machine.
(ii) the price which the consumer pays for the machine.
(iii) the tax (under GST) paid by the wholesaler to the State Government.
(iv) the tax (under GST) paid by the shopkeeper to the State Government.
(v) the tax (under GST) received by the Central Government.
Answer:
Given values:
Printed price = Rs. 18000
Wholesaler's discount to shopkeeper = 20%
Shopkeeper's discount to consumer = 10%
GST rate = 12% (CGST = 6%, SGST = 6%)

Shopkeeper's cost price (excluding tax):
Discount = 20% of Rs. 18000 = Rs. 3600
Cost Price = Rs. 18000 - Rs. 3600 = Rs. 14400

Shopkeeper's input tax:
Input CGST = 6% of Rs. 14400 = Rs. 864
Input SGST = 6% of Rs. 14400 = Rs. 864

(i) Price paid by shopkeeper (inclusive of tax):
Total Price = Cost Price + Input CGST + Input SGST
\( = 14400 + 864 + 864 = \text{Rs. } 16128 \)

Consumer's buying price (excluding tax):
Discount = 10% of Rs. 18000 = Rs. 1800
Selling Price = Rs. 18000 - Rs. 1800 = Rs. 16200

Shopkeeper's output tax:
Output CGST = 6% of Rs. 16200 = Rs. 972
Output SGST = 6% of Rs. 16200 = Rs. 972

(ii) Price paid by consumer:
Total Consumer Price = Selling Price + Output CGST + Output SGST
\( = 16200 + 972 + 972 = \text{Rs. } 18144 \)

(iii) SGST paid by the wholesaler to the State Government:
Tax paid = 6% of Rs. 14400 = Rs. 864

(iv) SGST paid by the shopkeeper to the State Government (Net SGST):
Net SGST = Output SGST - Input SGST = \( 972 - 864 = \text{Rs. } 108 \)

(v) Total CGST received by the Central Government:
Total CGST = CGST paid by wholesaler + Net CGST paid by shopkeeper
\( = 864 + (972 - 864) = \text{Rs. } 972 \)
In simple words: The shopkeeper buys the machine for Rs. 14400 and pays Rs. 16128 with tax. The customer buys it for Rs. 16200 and pays Rs. 18144 with tax. The wholesaler pays Rs. 864 state tax, the shopkeeper pays Rs. 108 state tax, and the center gets Rs. 972 total.

Exam Tip: Be careful to calculate both the wholesaler's and the shopkeeper's discount on the original printed price of Rs. 18000.

 

Question 2. A manufacturer listed the price of his goods at Rs. 1600 per article. He allowed a discount of 25% to a wholesaler who in turn allowed a discount of 20% on the listed price to a retailer. The retailer sells one article to a consumer at a discount of 5% on the listed price. If all the sales are intra-state and the rate of GST is 5%, find:
(i) the price per article inclusive of tax (under GST) which the wholesaler pays.
(ii) the price per article inclusive of tax (under GST) which the retailer pays.
(iii) the amount which the consumer pays for the article.
(iv) the tax (under GST) paid by the wholesaler to the State Government for the article.
(v) the tax (under GST) paid by the retailer to the Central Government for the article.
(vi) the tax (under GST) received by the State Government.
Answer:
Given details:
Listed price of article = Rs. 1600
GST rate = 5% (CGST = 2.5%, SGST = 2.5%)

(i) Wholesaler's purchase from manufacturer:
Discount = 25% of Rs. 1600 = Rs. 400
Cost Price = Rs. 1600 - Rs. 400 = Rs. 1200
CGST paid = 2.5% of Rs. 1200 = Rs. 30
SGST paid = 2.5% of Rs. 1200 = Rs. 30
Total paid = \( 1200 + 30 + 30 = \text{Rs. } 1260 \)
Wholesaler's input credit (CGST) = Rs. 30, (SGST) = Rs. 30

(ii) Retailer's purchase from wholesaler:
Discount = 20% of Rs. 1600 = Rs. 320
Cost Price = Rs. 1600 - Rs. 320 = Rs. 1280
CGST paid = 2.5% of Rs. 1280 = Rs. 32
SGST paid = 2.5% of Rs. 1280 = Rs. 32
Total paid = \( 1280 + 32 + 32 = \text{Rs. } 1344 \)
Wholesaler's output tax: CGST = Rs. 32, SGST = Rs. 32
Retailer's input credit: CGST = Rs. 32, SGST = Rs. 32

(iii) Consumer's purchase from retailer:
Discount = 5% of Rs. 1600 = Rs. 80
Selling Price = Rs. 1600 - Rs. 80 = Rs. 1520
CGST collected = 2.5% of Rs. 1520 = Rs. 38
SGST collected = 2.5% of Rs. 1520 = Rs. 38
Total paid = \( 1520 + 38 + 38 = \text{Rs. } 1596 \)

(iv) Tax paid by wholesaler to the State Government (Net SGST):
Net SGST = Wholesaler's Output SGST - Input SGST = \( 32 - 30 = \text{Rs. } 2 \)

(v) Tax paid by retailer to the Central Government (Net CGST):
Net CGST = Retailer's Output CGST - Input CGST = \( 38 - 32 = \text{Rs. } 6 \)

(vi) Total SGST received by the State Government:
Total SGST = SGST from manufacturer + Wholesaler's Net SGST + Retailer's Net SGST
\( = 30 + 2 + 6 = \text{Rs. } 38 \)
In simple words: The wholesaler buys at Rs. 1200 (pays Rs. 1260), the retailer buys at Rs. 1280 (pays Rs. 1344), and the customer buys at Rs. 1520 (pays Rs. 1596). The wholesaler pays Rs. 2 state tax, the retailer pays Rs. 6 central tax, and the state government receives Rs. 38 total.

Exam Tip: Be sure to calculate every successive discount (25%, 20%, 5%) on the original list price of Rs. 1600 as indicated in the text.

 

Question 3. John purchased a movie camera for Rs. 25488, which includes 10% rebate on the list price and 18% tax (under GST) on the remaining price. Find the marked price of the camera.
Answer:
Given details:
Total price paid by John = Rs. 25488
Rebate percentage = 10%
GST rate = 18%

Let the marked price (list price) be \( P \).
Price after rebate = \( P - 10\% \text{ of } P = 0.9P \)
GST charged = 18% of \( 0.9P \)

Total price paid:
\( \text{Total Price} = \text{Price after rebate} + \text{GST} \)
\( 25488 = 0.9P + \left(\frac{18}{100} \times 0.9P\right) \)
\( 25488 = 0.9P + 0.162P \)
\( 25488 = 1.062P \)
\( P = \frac{25488}{1.062} \)
\( P = \text{Rs. } 24000 \)

Thus, the marked price is Rs. 24000.
In simple words: Let the list price be P. With a 10% discount, the price is 0.9P. Adding 18% GST on this price gives 1.062P, which equals Rs. 25488. Solving for P gives us Rs. 24000.

Exam Tip: Establish a clear algebraic relation using P. Avoid calculating 18% directly on Rs. 25488 since that contains the tax amount itself.

 

Question 4. The marked price of an article is Rs. 7500. A shopkeeper buys the article from a wholesaler at some discount and sells it to a consumer at the marked price. The sales are intra-state and the rate of GST is 12%. If the shopkeeper pays Rs. 90 as tax (under GST) to the State Government, find:
(i) the amount of discount.
(ii) the price inclusive of tax (under GST) of the article which the shopkeeper paid to the wholesaler.
Answer:
Given values:
Marked price of the article = Rs. 7500
GST rate = 12% (CGST = 6%, SGST = 6%)
Net State tax (SGST) paid by shopkeeper = Rs. 90

Let the discount percentage be \( x\% \).
Shopkeeper's cost price = \( 7500 - \left(\frac{x}{100} \times 7500\right) = 7500 - 75x \)

Shopkeeper's Input SGST (paid to wholesaler):
Input SGST = 6% of \( (7500 - 75x) = \frac{6}{100} \times (7500 - 75x) = 450 - 4.5x \)

The shopkeeper sells the article at the marked price of Rs. 7500:
Output SGST collected = 6% of Rs. 7500 = Rs. 450

Net SGST paid by shopkeeper:
Net SGST = Output SGST - Input SGST = Rs. 90
\( 450 - (450 - 4.5x) = 90 \)
\( 4.5x = 90 \)
\( x = \frac{90}{4.5} = 20 \)
Discount rate = 20%

(i) Amount of discount:
Discount amount = 20% of Rs. 7500 = Rs. 1500

(ii) Cost price paid by shopkeeper to wholesaler (including tax):
Cost Price (excluding tax) = Rs. 7500 - Rs. 1500 = Rs. 6000
Input CGST = 6% of Rs. 6000 = Rs. 360
Input SGST = 6% of Rs. 6000 = Rs. 360
Total paid = \( 6000 + 360 + 360 = \text{Rs. } 6720 \)
In simple words: The shopkeeper pays Rs. 90 in state tax, which means his profit is Rs. 1500 (since 6% of Rs. 1500 is Rs. 90). This profit is his discount. This means he bought it for Rs. 6000, and adding 12% tax gives a total of Rs. 6720.

Exam Tip: Since Rs. 90 is state tax (SGST), set it equal to the net SGST calculation (6% of the profit margin) to solve for the discount rate.

 

Question 5. A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10% on the printed price but due to competition in the market, he allows a discount of 5% on the marked price to a buyer. If the rate of GST is 12% and the buyer pays Rs. 468.16 for the article inclusive of tax (under GST), find
(i) the printed price of the article.
(ii) the profit percentage of the retailer.
Answer:
Given details:
Retailer's discount from wholesaler = 15%
Retailer's markup on printed price = 10%
Retailer's discount to buyer = 5%
GST rate = 12%
Total paid by buyer (including tax) = Rs. 468.16

Let the printed price of the article be \( P \).

Retailer's Cost Price (excluding tax) = \( P - 15\% \text{ of } P = 0.85P \)
Retailer's Marked Price = \( P + 10\% \text{ of } P = 1.1P \)

Selling Price to buyer (excluding tax):
Selling Price = Marked Price - Discount
\( = 1.1P - (5\% \text{ of } 1.1P) \)
\( = 1.1P - 0.055P = 1.045P \)

Total buyer's cost including 12% tax:
Total Paid = \( 1.045P \times 1.12 = 1.1704P \)

(i) Printed price of the article:
\( 1.1704P = 468.16 \)
\( P = \frac{468.16}{1.1704} = \text{Rs. } 400 \)

(ii) Profit percentage of the retailer:
Retailer's Cost Price (excluding tax) = \( 0.85 \times 400 = \text{Rs. } 340 \)
Retailer's Selling Price (excluding tax) = \( 1.045 \times 400 = \text{Rs. } 418 \)
Profit value = Selling Price - Cost Price = \( 418 - 340 = \text{Rs. } 78 \)
Profit percentage = \( \frac{\text{Profit}}{\text{Cost Price}} \times 100 \)
\( = \frac{78}{340} \times 100 \)
\( = \frac{390}{17} = 22\frac{16}{17}\% \)
In simple words: Represent the printed price as P. After computing markup and discount factors, we get the customer's cost as 1.1704P, which equals Rs. 468.16, giving P = Rs. 400. The retailer bought the item at Rs. 340 and sold it at Rs. 418, yielding a 22.94% profit.

Exam Tip: Be sure to apply the retailer's 5% discount on his marked price of 1.1P, not on the original printed price P.

 

Question 6. Mrs. Arora bought the following articles from a departmental store :

Find the :
(a) Total GST paid.
(b) Total bill amount including GST.
Answer:
(a) GST calculation per item:

1. Hair Oil:
Price after discount = Rs. 1200 - Rs. 100 = Rs. 1100
GST on hair oil = 18% of Rs. 1100
\( = \frac{18}{100} \times 1100 = \text{Rs. } 198 \)

2. Cashew Nuts:
Price after discount = Rs. 600
GST on cashew nuts = 12% of Rs. 600
\( = \frac{12}{100} \times 600 = \text{Rs. } 72 \)

Total GST paid = GST on hair oil + GST on cashew nuts
\( = 198 + 72 = \text{Rs. } 270 \)

(b) Total bill amount including GST:
Total discounted price of articles = Rs. 1100 (hair oil) + Rs. 600 (cashews) = Rs. 1700
Total bill amount = Total discounted price + Total GST paid
\( = 1700 + 270 = \text{Rs. } 1970 \)
In simple words: First subtract the Rs. 100 discount from the hair oil's price to get Rs. 1100, then find the respective tax on each item (Rs. 198 for hair oil and Rs. 72 for cashews). Adding these taxes to the discounted prices gives a final bill of Rs. 1970.

Exam Tip: Check each row carefully to determine if a discount is applicable before calculating the tax value.

 

Question 7. The following bill shows the GST rate and the marked price of articles :
Vidhyut Electronics

Find the total amount to be paid (including GST) for the above bill.
Answer:
Calculating cost with tax for each item:

1. LED TV set:
Marked Price = Rs. 12000
GST rate = 28%
GST amount = 28% of Rs. 12000
\( = \frac{28}{100} \times 12000 = \text{Rs. } 3360 \)
Total cost for TV = Rs. 12000 + Rs. 3360 = Rs. 15360

2. MP4 player:
Marked Price = Rs. 5000
GST rate = 18%
GST amount = 18% of Rs. 5000
\( = \frac{18}{100} \times 5000 = \text{Rs. } 900 \)
Total cost for MP4 player = Rs. 5000 + Rs. 900 = Rs. 5900

Total bill amount:
Total Bill = TV total cost + MP4 player total cost
\( = 15360 + 5900 = \text{Rs. } 21260 \)
In simple words: Find the 28% tax on the Rs. 12000 TV (Rs. 3360) and the 18% tax on the Rs. 5000 player (Rs. 900). Add these taxes to their prices and sum them up to get a total bill of Rs. 21260.

Exam Tip: When different tax rates apply to different items, compute the tax and total cost separately for each line item before summing them up.

 

Question 8. The following bill shows the GST rate and the marked price of articles :
Rajdhani Departmental Store

Find the total amount to be paid (including GST) for the above bill.
Answer:
Calculating cost with tax for each item:

1. Dry Fruits:
Price after discount = Rs. 1200 - Rs. 100 = Rs. 1100
Tax = 12% of Rs. 1100
\( = \frac{12}{100} \times 1100 = \text{Rs. } 132 \)
Cost including tax = Rs. 1100 + Rs. 132 = Rs. 1232

2. Packed Wheat Flour:
Price after discount = Rs. 286 (no discount)
Tax = 5% of Rs. 286
\( = \frac{5}{100} \times 286 = \text{Rs. } 14.30 \)
Cost including tax = Rs. 286 + Rs. 14.30 = Rs. 300.30

3. Bakery Products:
Discount value = 10% of Rs. 500 = Rs. 50
Price after discount = Rs. 500 - Rs. 50 = Rs. 450
Tax = 12% of Rs. 450
\( = \frac{12}{100} \times 450 = \text{Rs. } 54 \)
Cost including tax = Rs. 450 + Rs. 54 = Rs. 504

Total amount to be paid:
Total Amount = Dry Fruits total + Wheat Flour total + Bakery Products total
\( = 1232 + 300.30 + 504 = \text{Rs. } 2036.30 \)
In simple words: Find the selling price after discount for each item. Next, compute the GST for each item at their given rates (12%, 5%, and 12%). Finally, add up all the final tax-inclusive prices to get Rs. 2036.30.

Exam Tip: Be careful to note that wheat flour has 'Nil' discount, meaning tax must be calculated directly on its marked price of Rs. 286.