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A wholesaler dealing in electric goods, sells an article at its printed price of Rs. 45,000 to a dealer at 10% discount. The dealer sells the same article to a customer at a discount of 4% on its printed price. If the sales are inter-state and the rate of GST is 18%, find : (i) the amount of tax, under GST, paid by the dealer to the central and state governments. (ii) the amount of tax, under GST, received by central and state governments. (iii) the total amount, inclusive of tax, paid by the consumer for the article.
Asked by varma.renu9481 | 05 Apr, 2023, 11:56: AM

For the wholesaler:

Marked price = Rs. 45000

Discount = 10% = Rs. 4500

S.P. = M.P. – Discount

= 45000 – 4500

= Rs. 40500

For the dealer:

C.P. = Rs. 40500

Discount = 4% of 45000 = Rs. 1800

S.P. = M.P. – Discount

= Rs. 45000 – Rs. 1800

= Rs. 43200

(i)

Tax paid by the dealer to the central government

= Output tax – Input tax

= Tax on S.P. – Tax on C.P.

= 18% of 43200 – 18% of 40500

= 7776 – 7290

= Rs. 486

Tax paid by the dealer to the state government = Rs. 0

(ii)

GST paid by the dealer = 18% of 43200 = Rs. 7776

∴ GST received by the central government = 7776

Since, the transaction is inter-state.

So, GST received by the state government = Rs. 0

(iii)

For the consumer:

C.P. = S.P. for dealer = Rs. 43200

GST paid by the consumer = 18% of 43200 = 7776

∴ Total amount paid by the consumer = Rs. 50976
Answered by Rashmi Khot | 05 Apr, 2023, 03:52: PM

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