Chapter 1 – GST (30 marks)

1. A manufacturer sells a clock of ₹ 5000 to a wholesaler. The wholesaler sells it to a

retailer and the retailer sells it to a consumer. GST charges is 18% and profit made
at each stage is ₹ 1000. If the sales are intra – state, calculate.
i. The tax paid by the wholesaler to the State Government.
ii. The tax paid by the retailer to the State Government.
iii. The total GST collected by the Central Government on the sale of the clock.
(3 marks)
Solution:
(i) input CGST and input SGST paid by the wholesaler
9
input CGST = 5000 x 100 = ₹450
9
and input SGST = 5000 x 100 = ₹450
Now, wholesaler adds a profit of ₹1000 and sells it to the retailer
∴SP of clock for wholesaler = ₹5000 + ₹1000 = ₹6000

(ii) output CGST and output SGST received by the wholesaler

9
output CGST = 6000 x 100 = ₹540
9
and output SGST = 6000 x 100 = ₹540
∴Output CGST for wholesaler = Input CGST for retailer
And Output SGST for wholesaler = Input SGST for retailer

Now, retailer adds a profit of ₹1000 and sells it to the consumer

∴SP of clock for retailer = ₹6000 + ₹1000 = ₹7000

(iii) output CGST and output SGST received by the wholesaler

9
output CGST = 7000 x 100 = ₹630
9
and output SGST = 7000 x 100 = ₹630

i. The tax paid by the wholesaler to the State Government.

= Output SGST – Input SGST
= ₹540 - ₹450 = ₹90
ii. The tax paid by the retailer to the State Government.
= Output SGST – Input SGST
= ₹630 - ₹540 = ₹90
iii. The total GST collected by the Central Government on the sale of the
clock.
= ₹630
2. A manufacturer marks a printer for ₹ 12000 and sells it at 15% discount to a
wholesaler. The wholesaler gives 10% discount on the Market Price to a shopkeeper.
The shopkeeper sells it at the Market Price and the GST charged is 12%. If all sales
are intra – state, find
i) The price paid by the wholesaler inclusive of tax.
ii) The amount of GST deposited with the Central Government by the
a) Wholesaler b) Retailer
iii) The price paid by the customer. (3 marks)
Solution:
Given: MP of the printer = ₹12000 and rate of GST = 12%
∵ it is a case of intra state,
∴ CGST = SGST = ½ x GST = ½ x 12% = 6%
Discount rate for wholesaler = 15%
∴SP for manufacturer = ₹12000 – 15% of ₹12000 = ͅ₹10200
Input CGST and input SGST paid by the shopkeeper:
6
input CGST = 10800 x 100 = ₹648
6
and input SGST = 10800 x 100 = ₹648
Again, the retailer sold the printer at MP to the consumer
∴SP of printer for shopkeeper = ₹ 12000
Output CGST and output SGST received by the shopkeeper
6
output CGST = 12000 x 100 = ₹720
6
and output SGST = 12000 x 100 = ₹720

i) The price paid by the wholesaler inclusive of tax = ₹10200 + ₹612 + ₹612
= ₹11424
ii) The amount of GST deposited with the Central Government by the
a. Wholesaler = Output CGST – Input CGST = ₹648 - ₹612 = ₹ 36
b. Retailer = Output CGST – Input CGST = ₹720 - ₹648 = ₹ 72
iii) The price paid by the customer = ₹12000 + ₹720 + ₹720 = ₹13440
3. The marked price of a computer is ₹ 30,000 and the rate of GST is 18%. A
shopkeeper sells it at the marked price and pays ₹ 1080 as GST to the Government.
What is the price inclusive of tax paid by the shopkeeper at the time of buying?
(3 marks)
Solution:
Given: MP of the computer = ₹30000
GST paid by the shopkeeper to the government = ₹1080
Rate of GST = 18%
CGST = SGST = ½ x 18% = 9%
GST = 18% of profit
18 1080𝑥100
➢ 1080 = 100 𝑥 𝑝𝑟𝑜𝑓𝑖𝑡 ∴profit = = ₹6000
18
∴CP of computer = MP – profit = ₹30000 - ₹6000 = ₹24000
GST paid by the shopkeeper = 18% of ₹24000 = ₹4320
∴Price paid by the shopkeeper = ₹24000 + ₹4320 = ₹28320
Ans: The price inclusive of tax paid by the shopkeeper at the time of buying the
computer is ₹28320.

4. A wholesaler buys a TV from a manufacturer for ₹ 25000. He marks the price of

the TV 20% above his cost price and sells it to a retailer at a 10% discount on the
marked price. If the rate of GST is 28% find:
i) The marked price
ii) The retailer’s cost price inclusive of tax.
iii) The GST paid by the wholesaler to the State Government. (3 marks)
Solution:
(i) CP to the wholesaler = ₹25000 MP is 20% above CP
∴MP = 20% of ₹25000 + CP MP = ₹5000 + ₹25000 = ₹30000

(ii) He gives 10% discount on MP

∴SP charged by the wholesaler = 90% of MP = 90% of 30000 = ₹27000
28
The retailer’s CP inclusive of tax = (27000 + 𝑥 27000) = ₹34560.
100

(iii) The profit of wholesaler = 27000 – 25000 = ₹2000

CGST paid by the wholesaler = 14% of 2000 = ₹280
SGST paid by the wholesaler = 14% of 2000 = ₹280

i) The marked price = ₹30000

ii) The retailer’s cost price inclusive of tax = ₹34560
iii) The GST paid by the wholesaler to the State Government = ₹280
5. Mr. Bedi visits the market and buys the following articles:
Medicines costing ₹ 950, GST@5%;
A pair of shoes costing ₹ 3000, GST @ 18%.
A Laptop bag costing ₹ 1000 with a discount of 30%, GST @ 18%.
Calculate:
i) The total amount of GST paid.
ii) The total bill amount including GST paid by Mr. Bedi. (3 marks)
Solution:
(i) CGST on medicines = 2.5% of 950 = ₹ 23.75
➢ SGST on medicines = 2.5% of 950 = ₹ 23.75
➢ CGST on shoes = 9% of 3000 = ₹ 270
➢ SGST on shoes = 9% of 3000 = ₹ 270
➢ Price of laptop bag after 30% discount = 1000 – 300 = ₹700
➢ CGST = 9% of 700 = ₹ 63
➢ SGST = 9% of 700 = ₹ 63
Total GST = ₹ (23.75+23.75+270+270+63+63) = ₹713.50

(ii) Total bill = ₹(950+3000+700+713.5) = ₹ 5363.50

i) The total amount of GST paid = ₹713.50

ii) The total bill amount including GST paid by Mr. Bedi = ₹5363.50

6. Kiran purchases an article for ₹ 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. (3 marks)
Solution:
Let the marked price be ₹ x
Rebate (discount)= 10% on the marked
After the discount selling price = Marked price – 10% of M.P
10 90
After the discount selling price = x – 100x = 100x
90
∴ After the discount selling price = x ……. (1)
100
18% GST is applicable on the selling price After the discount.
∴ Final Purchase price = After the discount selling price + 18% of the discount
selling price.
90 18 90
∴ Final purchase price = 100x + 100×100x
90 1620
∴ Final Purchase price = 100x +10000x
∴ Final Purchase price = 1.062 x
But, the Final purchase price is ₹ 5310
∴ 5310 = 1.062 x
∴ x = 5310 ÷ 1.062
∴ x = 5000
 ∴ Marked Price of the article is ₹ 5000

7. A shopkeeper buy goods worth ₹ 4000 and sells these at a profit on 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. (4 marks)

Solution:
(i) The selling price (excluding tax) of the goods.

20
4000+4000×100 = 4000 + 800 = ₹4800

2.5
(ii) CGST paid by the consumer = 4800 x 100 = ₹120

2.5
(iii) SGST paid by the consumer = 4800 x 100 = ₹120

(iv) the total amount paid by the consumer

Amount = Selling price + CGST + SGST
= 4800 + 120 + 120
= ₹5040

i) The selling price (excluding tax) of the goods = ₹4800

ii) CGST paid by the consumer = ₹120
iii) SGST paid by the consumer = ₹120
iv) The total amount paid by the consumer = ₹5040

8. A manufacturer sells a TV to a dealer for ₹ 18000 and the dealer sells it to a

consumer at a profit of ₹ 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 TV. (4 marks)
Solution:
It is a case of intra-state transaction of goods and services.
SGST = CGST = ½ GST
Given:
Manufacturer sells T.V to a dealer = ₹ 18000
Amount of GST collected by manufacturer from dealer,
CGST – SGST = 6% of 18000
6
= 100 × 18000 = ₹ 1080
So, Manufacturer will pay ₹ 1080 as CGST and ₹ 1080 as SGST
CP of a TV for dealer = ₹ 18000 & Profit = ₹ 1500
SP of a TV for dealer to customer – CP + Profit = ₹ 18000 + ₹ 1500 = ₹ 19500
Amount of GST collected by dealer from customer,
CGST = SGST = 6% of ₹ 19500
6
= 100 × 19500 = ₹ 1170
(i) Amount of GST paid by the dealer to the State Government.
₹ 1170 - ₹ 1080 = ₹ 90
(ii) Amount of GST received by the Central Government.
CGST paid by manufacturer + CGST paid by dealer = ₹ 1080 + ₹ 90 = ₹ 1170
(iii) Amount of GST received by the State Government.
SGST paid by manufacturer + SGST paid by dealer = ₹ 1080 + ₹ 90 = ₹ 1170
(iv) Amount that the consumer pays for the TV
CP of TV + CGST paid by customer + SGST paid by customer
= ₹19500 + ₹1170 + ₹ 1170 = ₹ 21840

i) The amount of GST paid by the dealer to the State Government = ₹ 90

ii) The amount of GST received by the Central Government = ₹ 1170
iii) The amount of GST received by the State Government = ₹ 1170
iv) The amount that the consumer pays for the TV = ₹ 21840
 9. A retailer buys a TV from a wholesaler for ₹ 40000. He marks the price of the T.V
15% above his cost price and sells it to a consumer at 5% discount on the marked
price. If the sales are intra – state and the rate of GST is 12%, find
i) The marked price of the TV
ii) The amount which the consumer pays for the TV
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.
(4 marks)
Solution:
As the retailer marks the price of the TV 15% above the cost price,
15
∴The marked price of the TV = ₹(1 + 100) x 40000
115
= ₹ (100 x 40000) = ₹46000.
It is a case of intra-state transaction of goods and services
SGST = CGST = ½ x GST
The amount of tax (under GST) paid by the retailer to the Central Government
6
CGST paid by shopkeeper =6% of ₹40000 = 100×40000 = ₹2400
SGST paid by shopkeeper =6% of 40000 = ₹2400
Shopkeeper sells the article to consumer = ₹43700
GST collected by shopkeeper =12% of ₹43700
12
=100×43700=₹5244
CGST of shopkeeper=GST=6% of ₹43700
6
=100×43700=₹2622
The amount of tax (under GST) paid by the retailer to the Central Government=₹2622−₹2400
= ₹222
Amount paid by the consumer = ₹ 43700 + ₹5244 = ₹48944
i) The marked price of the TV = ₹ 46000.
ii) The amount which the consumer pays for the TV = ₹ 48944.
iii) The amount of tax (under GST) paid by the retailer to the Central
Government = ₹ 222
iv) The amount of tax (under GST) received by the State Government
= ₹ 2622.