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Chapter 1

The document provides various examples of calculating Goods and Services Tax (GST) on different transactions, including manufacturing costs, discounts, and final amounts payable. It includes detailed calculations for multiple scenarios, such as a consumer purchasing items, a wholesaler selling to a retailer, and individual purchases with varying GST rates. The document concludes with a summary of total GST paid and total bill amounts for specific purchases.

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vineet.singh1158
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3 views

Chapter 1

The document provides various examples of calculating Goods and Services Tax (GST) on different transactions, including manufacturing costs, discounts, and final amounts payable. It includes detailed calculations for multiple scenarios, such as a consumer purchasing items, a wholesaler selling to a retailer, and individual purchases with varying GST rates. The document concludes with a summary of total GST paid and total bill amounts for specific purchases.

Uploaded by

vineet.singh1158
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Goods and Services Tax (GST)

Q1. The manufacturing cost of an item is ₹ 900. The manufacturer marked up the price of his
items by 60% and then sold them at a discount of 10%. If a consumer buy 10 such items,
when the rate of GST is 10% then the GST paid by him on the purchased is:
Options:
(a) ₹ 648
(b) ₹ 1,000
(c) ₹ 1,296
(d) ₹ 1,425
Ans. (c)
Explanation:
C.P. of an item = ₹ 900
Marked price of an item
= ₹900 + 60% of ₹ 900
= ₹ 1,440

Discounted price of an item


=₹1,440−10% of ₹ 1,440
=₹1,296

⇒ Discounted price of 10 such items = ₹ 12,960


∵Rate of GST = 10 %
∴CGST = SGST =5 % of ₹ 12,960
=₹648
So,
GST = CGST + SGST
= ₹648 + ₹648
= ₹1,296.

Q2. Shashi buys goods worth ₹ 7,000 from a grocery store. Since, she has a membership
card, so she gets a discount of 15% on ₹ 5,000. If the GST charged is 18%, then the total
amount she has to pay for the goods is:
Options:
(a) ₹ 4,362.50
(b) ₹ 6,363.50
(c) ₹ 6,306.25

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(d) ₹ 7,375
Ans. (d)
Explanation:
Total discounted price
= ₹ [2,000 + (5,000 - 15% of 5,000)
= ₹ [2,000 + 4,250]
= ₹ 6,250
∵ GST rate = 18%
∴ CGST =SGST = 9% of ₹ 6,250
= ₹ 562.50
∴ Total amount Shashi has to pay
= ₹ 6,250 +₹ 562.50 + ₹ 562.50
= ₹ 7,375.

Q 3. A wholesaler buys a TV from the manufacturer for ₹ 25,000. 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 8%, Find the:
(i) marked price.
(ii) retailer’s cost price inclusive of tax.
(iii) GST paid by the wholesaler.
Explanation:
Given, wholesaler’s C.P. of a T.V = ₹ 25,000
(i) Marked price of a T.V.
= ₹ 25,000 + 20% of ₹ 25,000
= ₹ 25,000 + ₹ 5,000
= ₹ 30,000. Ans.

(ii) Discount = 10% of ₹ 30,000


10
= 30,000 × 100 = ₹ 3,000
Price after discount

= ₹ 30,000 – ₹ 3,000
= ₹ 27,000
Tax for the wholesaler
= 8% of 27,000
= ₹ 2160
Retailer’s C.P. (Inclusive of all taxes)
= ₹ 27,000 + ₹ 2160
= ₹ 29,160. Ans.
(iii) Amount of GST to be paid by the wholesaler
= Tax on the value added by the wholesaler

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= 8% of ₹ ( 27,000 – 25,000 )
8
= 100
× 2000
= ₹ 160. Ans

Q 4. Shyam went to watch a movie. He wanted to purchase a movie ticket for ₹ 90. As the
ticket for ₹ 90 was not available, he purchased a ticket for ₹ 140 of upper class.
How much extra GST did he pay for the ticket if the GST for a ticket below ₹ 100 is 18% and
GST for a ticket above ₹ 100 is 28%?
Explanation:
According to the question,
GST on ticket of ₹ 90 = 18% of 90
18
= 100
× 90
= ₹ 16.20
GST on ticket of ₹ 140= 28% of 140
28
= 100
× 140
= ₹ 39.20
Difference between both GST = 39.20 - 16.20
= ₹ 23.00

Q 5. Mrs. Arora bought the following articles from a departmental store:

S. No. Item Price Rate of GST Discount

1 Hair oil ₹ 1200 18% ₹ 100

2 Cashew nuts ₹ 600 12%

Find the:
(a) Total GST paid,
(b) Total bill amount including GST.

Explanation:
Selling price of Hair oil = ₹ 1200 – ₹ 100 = ₹ 1100
18
GST @ 18% = ₹ 1100× 100
=₹198
Selling price of cashew nuts = ₹ 600
12
GST @ 12% = ₹ 600× 100
= ₹72

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(a) Total GST paid= ₹ 198 + ₹ 72 = ₹ 270
(b) Total Bill including GST
= (S.P. + GST of Hair oil) + (SP + GST of cashew nuts)
= ₹ (1100 + 198) + ₹ (600 + 72)
= ₹ 1298 + ₹ 672 = ₹ 1970

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