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

   

Cost price of the dealer

   

When sold at a profit of 15% to the consumer

Profit

   

   

So, the selling price of the dealer

= Cost price + profit

   

   

Rate of GST

   

(i) Input CGST paid by the dealer

= 9% of selling price of wholesaler

   

   

And, input SGST paid by the dealer

= 9% of selling price of wholesaler

   

   

(ii) Output CGST collected by the dealer

= 9% of selling price of the dealer

   

   

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

   

   

And,

Net SGST paid by the dealer

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

   

   

(iv) The total amount paid by the consumer

= Selling price of the dealer + CGST + SGST