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Home » 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.
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.
Class 10 | Exercise 1 | Goods and Service Tax | ICSE | Maths | ML Aggarwal
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.

Selling price of the wholesaler

    \[=\text{ }Rs.\text{ }6000\]

Cost price of the dealer

    \[=\text{ }Rs.\text{ }6000\]

When sold at a profit of 15% to the consumer

Profit

    \[~=\text{ }\left( 15/100 \right)\text{ }x\text{ }Rs.\text{ }6000\]

    \[=\text{ }Rs.\text{ }900\]

So, the selling price of the dealer

= Cost price + profit

    \[=\text{ }Rs.\text{ }6000\text{ }+\text{ }Rs.\text{ }900\]

    \[=\text{ }Rs.\text{ }6900\]

Rate of GST

    \[~=\text{ }18%\]

(i) Input CGST paid by the dealer

= 9% of selling price of wholesaler

    \[=\text{ }\left( 9/100 \right)\text{ }x\text{ }Rs.\text{ }6000\]

    \[=\text{ }Rs.\text{ }540\]

And, input SGST paid by the dealer

= 9% of selling price of wholesaler

    \[=\text{ }\left( 9/100 \right)\text{ }x\text{ }Rs.\text{ }6000\]

    \[=\text{ }Rs.\text{ }540\]

(ii) Output CGST collected by the dealer

= 9% of selling price of the dealer

    \[=\text{ }\left( 9/100 \right)\text{ }x\text{ }Rs.\text{ }6900\]

    \[=\text{ }Rs.\text{ }621\]

And, output SGST collected by the dealer

= 9% of selling price of the dealer

= (9/100) x Rs. 6900

= Rs. 621

(iii) Net CGST paid by the dealer

= (Output CGST – Input CGST) paid by the dealer

    \[=\text{ }Rs.\text{ }621\text{ }\text{ }Rs.\text{ }540\]

    \[=\text{ }Rs.\text{ }81\]

And,

Net SGST paid by the dealer

= (Output SGST – Input SGST) paid by the dealer

    \[=\text{ }Rs.\text{ }621\text{ }\text{ }Rs.\text{ }540\]

    \[=\text{ }Rs.\text{ }81\]

(iv) The total amount paid by the consumer

= Selling price of the dealer + CGST + SGST

    \[=\text{ }Rs.\text{ }6900\text{ }+\text{ }Rs.\text{ }621\text{ }+\text{ }Rs.\text{ }621\]

    \[=\text{ }Rs.\text{ }8142\]

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