Chapter 1 - GST [Goods and Services Tax] Exercise Ex. 1(B)

Question 1

Fill in the blanks :

When the goods/services are sold for Rs. 15,000 under intra-state transaction from station A to station B and the rate of GST is 12%.

As per GST System

1. S.P. at station A =
2. CGST = 6% of 15,000 =
   SGST = 6% of 15,000 =
3. C.P. at station B =
4. If profit = Rs. 5000
   S.P. at station B =
   Now the same goods/services are moved under inter-state transaction from station B to station C and the rate of tax is 12%.
5. GST =
6. C.P. at station C =

Solution 1

When the goods/services are sold for Rs. 15,000 under intra-state transaction from station A to station B and the rate of GST is 12%.

As per GST System

1. S.P. at station A = Rs. 15,000
2. CGST = 6% of 15,000 = Rs. 900
   SGST = 6% of 15,000 = Rs. 900
3. C.P. at station B = Rs. 15,000
4. If profit = Rs. 5000
   S.P. at station B = 15,000 + 5000 = Rs. 20,000
   Now the same goods/services are moved under inter-state transaction from station B to station C and the b rate of tax is 12%.
5. GST = 12% of 20,000 = Rs. 2400
6. C.P. at station C = Rs. 20,000 

Question 2

Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for Rs. 20,000 and then from Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is Rs. 5000, find:

i. the net GST payable by the dealer at Kanpur.

ii. the cost of goods/services at Jaipur.

Solution 2

When the product is sold from Agra to Kanpur (intra-state transaction)

For the dealer in Agra :

S. P. in Agra = Rs. 20,000

CGST = 9% of Rs. 20,000 = 

SGST = 9% of Rs. 20,000 = 

When product is sold from Kanpur to Jaipur (inter-state transaction)

For the dealer in Kanpur

Input-tax credit = 1800 + 1800 = Rs. 3600

C. P. = Rs. 20,000 and Profit = Rs. 5000

S.P. = 20,000 + 5000 = Rs. 25,000

IGST = 18% of 25,000 = Rs. 4500

1. Net GST paid by the dealer at Kanpur
   = Output GST - Input GST
   = 4500 - 3600
   = Rs. 900
2. The cost of goods/services at Jaipur
   = S. P. in Agra + IGST
   = 25,000 + 18% of 25000
   = 25,000 + 4500
   = Rs. 29,500 

Question 3

Goods/services are sold from Kota (Rajasthan) to Mumbai for Rs. 20,000 and then from Mumbai to Pune. If the rate of GST is 12% and the profit made at Mumbai is Rs. 5000; find the net GST paid at Pune, if the dealer at Pune is the end-user.

Solution 3

For the dealer in Mumbai (inter-state transaction)

CP = Rs. 20,000

IGST = 12% of Rs. 20,000 = 

Profit = Rs. 5000

SP = Rs. 25,000

For the dealer in Pune (intra-state transaction)

CP = Rs. 25,000

CGST = 6% of 25,000 = Rs. 1500

SGST = 6% of 25,000 = Rs. 1500

GST payable by the end user at Pune = 1500 + 1500 = Rs. 3000

Question 4

A is a dealer in Banaras (U.P.). he supplies goods/services worth Rs. 8000 to a dealer B in Agra (U.P.). Dealer B, in turn, supplies the same goods/services to dealer C in Patna (Bihar) at a profit of Rs. 1200. Find the input and output taxes for the dealer C under GST system; if the rate of GST is 18% and C does not sell his goods/services further.

Solution 4

For the dealer A (intra-state transaction)

SP = Rs. 8,000

 

For the dealer B (intra-state transaction)

CP = Rs. 8,000

CGST = 9% of 8,000 = Rs. 720

SGST = 9% of 8,000 = Rs. 720

Profit = Rs. 1,200

SP = Rs. 9,200

 

For the dealer C (inter-state transaction)

CP = Rs. 9,200

IGST = 18 % of Rs. 9,200 = 

Input Tax = Rs. 1,656

Since, the dealer in Patna does not sell the product.

Output GST (tax on sale) = Rs. 0

Question 5

A is a dealer in Meerut (U.P.). He supplies goods/services, worth Rs. 15,000 to a dealer B in Ratlam (M.P.). Dealer B, in turn, supplies the same goods/services to dealer C in Jabalpur (M.P.) at a profit of Rs. 3000. If rate of tax (under GST system) is 18%, find

i. The cost of goods/services to the dealer C in Jabalpur.

ii. Net tax payable by dealer B.

Solution 5

For A (case of inter-state transaction)

S.P. in Meerut = Rs. 15,000

For B (case of inter-state transaction)

C.P.= Rs. 15,000

IGST = 18% of 15,000 = 

Input tax for B = Rs. 2,700

S.P. in Ratlam = 15,000 + 3000 = Rs. 18,000

For C (case of intra-state transaction)

C.P.= Rs. 18,000

CGST = 9% of 18,000 = 

SGST = 

Out put tax for B = Rs. 1620 + Rs. 1620 = Rs. 3240

Net GST payable by the dealer B

= Output tax - Input tax

= 1620 + 1620 - 2700

= Rs. 540

Cost for the dealer C in Jabalpur

= S.P. for the dealer in Ratlam + GST

= 18,000 + 1620 + 1620

= Rs. 21,240

Question 6

A dealer X in Hapur (U.P.) supplies goods/services, worth Rs. 50,000 to some other dealer Y in the same city. Now the dealer Y supplies the same goods/services to dealer Z in Calcutta at a profit of Rs. 20,000. Find

i. Output and input taxes for the dealer Y

ii. Net GST payable by dealer Y.

The rate of GST at each stage is 28%

Solution 6

For the dealer X (intra-state transaction)

SP = Rs. 50,000

 

For the dealer Y (intra-state transaction)

CP = Rs. 50,000

CGST = 14% of 50,000 = Rs. 7,000

SGST = 14% of 50,000 = Rs. 7,000

Input tax for dealer Y = Rs. 14,000

Profit = Rs. 20,000

SP = Rs. 70,000

 

For the dealer Z (inter-state transaction)

CP = Rs. 70,000

IGST = 28 % of Rs. 70,000 = 

∴ Input Tax = Rs. 19,600 which is the output tax for dealer Y.

 

Net GST payable for Y

= Output tax for Y - Input tax for Y

= 19,600 - 14,000

= Rs. 5600

Question 7

Consultancy services, worth Rs. 50,000, are transferred from Delhi to Calcutta at the rate of GST 18% and then from Calcutta to Nainital (with profit = Rs. 20,000) at the same rate of GST. Find the output tax at

i. Delhi

ii. Calcutta

iii. Nainital 

Solution 7

1. Output tax in Delhi (interstate) :
   IGST = 9% of 50,000 = Rs. 9000
   Output tax in Delhi = Rs. 9000
   
   
2. Output tax in Calcutta :
   C.P. in Calcutta = Rs. 50,000 and Profit = Rs. 20,000
   S.P. in Calcutta = 50,000 + 20,000 = Rs. 70,000
   IGST = 18% of 70,000 = Rs. 12,600
   Output tax in Calcutta = Rs. 12,600
   
   
3.  Since, the dealer in Nainital does not sell the product.
   Output GST (tax on sale) = Rs. 0

Question 8

For a dealer A, the list price of an article is Rs. 9000, which he sells to dealer B at some lower price. Further, dealer B sells the same article to a customer at its list price. If the rate of GST is 18% and dealer B paid a tax, under GST, equal to Rs. 324 to the government, find the amount (inclusive of GST) paid by dealer B.

Solution 8

Let A sells to dealer B at Rs. x lower price.

According to the question,

Net Tax paid by dealer B is

⇒ Out put tax - Input Tax = Rs. 324

⇒ 18% of 9000 - 18% of (9000 - x) = 324

⇒ 1620 - 1620 + 18% of x = 324

⇒ 18% of x = 324

⇒ x = 1800

Hence, selling price of B = 9000 - 1800 = Rs. 7200

The amount (inclusive of GST) paid by dealer B

= 7200 + 18% of 7200

= 7200 + 1296

= Rs. 8496 

Question 9

The marked price of an article is Rs. 6000. A wholesaler sells it to a dealer at 20% discount. The dealer further sells the article to a customer at a discount of 10% on the marked price. If the rate of GST at each stage is 18%, find the amount of tax (under GST) paid by the dealer to the government.

Solution 9

Initial marked price by manufacturer A is Rs. 6000

B bought the T.V. at a discount of 20%.

Cost price of B = 80% of 6000 = Rs. 4800 ….(i)

GST paid by B for purchase = 18% of 4800 = Rs. 864 ….(ii)

B sells T.V. at discount of 10% of market Price

Selling price for B = 6000 - 10% of 6000 = Rs. 5400 …(iii)

GST charged by B on selling of T.V. = 18% of 5400

 = Rs. 972 …(iv)

GST paid by B to the government

= GST charged on selling price - GST paid against purchase price

= 972 - 864

= Rs. 108

Question 10

A is a manufacturer of T.V. sets in Delhi. He manufacturers a particular brand of T.V. set and marks it at Rs. 75,000. He then sells this T.V. set to a wholesaler B in Punjab at a discount of 30%. The wholesaler B raises the marked price of the T.V. set bought by 30% and then sells it to dealer C in Delhi. If the rate of GST = 5% find tax (under GST) paid by wholesaler B to the government.

Solution 10

Initial marked price by manufacturer A is Rs. 75,000

B bought the T.V. at a discount of 30%.

Cost price of B = 70% of 75,000 = Rs. 52,500 ….(i)

GST paid by B for purchase = 5% of 52,500 = Rs. 2625 ….(ii)

B sells T.V. by increasing marked price by 30%.

Selling price for B = 75,000 + 30% of 75,000 = Rs. 97,500 …(iii)

GST charged by B on selling of T.V. = 5% of 97,500

 = Rs. 4875 …(iv)

GST paid by B to the government

= GST charged on selling price - GST paid against purchase price

= 4875 - 2625

= Rs. 2250

Question 11

For a trader, marked price of a refrigerator = Rs. 15,680 inclusive of GST at the rate of 12% on the marked price. Gagan, a customer for this refrigerator, asks the trader to reduce the marked price of the refrigerator to such extend that its reduced price plus GST on it is equal to marked price of the refrigerator. Find the required reduction.

Solution 11

Let the marked price be Rs. x.

x + 12% of x = 15,680

1.12x = 15,680

x = Rs. 14,000

Initial marked price = Rs. 14,000

Let Gagan asked for priced reduction of Rs. y.

New price = 14,000 - y

GST on new price = 12% of (14,000 - y)

According to the question,

14,000 - y + 0.12(14,000 - y) = 14,000

-1.12y + 1680 = 0

y = 1500

Required reduction in price is Rs. 1500.