Question 15 Marks
An air conditioner manufacturer allows a discount of $10 \%$ on marked price to dealer and the dealer sells the air conditioner to a consumer at a discount of $4\%$ on marked price. If the marked price is ₹ $50,000$ and the sales are intra-state sales with GST at $18\%.$ Find:
i. the total amount paid by the consumer to the dealer.
ii. the GST paid by the consumer to the dealer.
iii. the GST paid by the dealer to the central and state governments.
iv. the GST paid by the manufacturer to the central and state governments.
i. the total amount paid by the consumer to the dealer.
ii. the GST paid by the consumer to the dealer.
iii. the GST paid by the dealer to the central and state governments.
iv. the GST paid by the manufacturer to the central and state governments.
Answer
View full question & answer→The sales are intra-state sales with GST at $18 \%$. So, there are two components of GST (i) SGST at $9 \%$ and (ii) CGST at $9 \%$
i. The manufacturer sells the air conditioner to the dealer at discount of $10 \%$ on the marked price of ₹ 50,000 .
$\therefore$ Discount $=10 \%$ of ₹ $50,000=$ ₹$\left(\frac{10}{100} \times 50,000\right)=$ ₹ $5000$
Selling price of the air conditioner (S.P.) $=$ ₹ $50,000-$ ₹ $5000=$ ₹ $45000$.
CGST paid by the dealer to the manufacturer $=9 \%$ of ₹ $45000.$
$=$ ₹$ \left(\frac{9}{100} \times 45000\right)=$ ₹ $4050$
SGST paid by the dealer to the manufacturer $=9 \%$ of ₹ $45000$
$=$ ₹ $\left(\frac{9}{100} \times 45000\right)=$ ₹ $4050$
Total GST paid by the dealer to the manufacturer = ₹ $4050+$ ₹ $4050$
= ₹ 8100 .
i.e. Input GST of the dealer $=$ ₹ $8100$.
The dealer sells the air conditioner at a discount of $4 \%$ on marked price.
$\therefore$ Discount given by the dealer $=4 \%$ of ₹ $50,000=$ ₹ $\left(\frac{4}{100} \times 50,000\right)=$ ₹ $2000$
Selling price of the dealer $=$ ₹ $50,000-$ ₹ $2000= $ ₹ $48000$
$\therefore$ CGST paid by the consumer $=9 \%$ of ₹ $48000=$ ₹ $\left(\frac{9}{100} \times 48000\right)=$ ₹ $4320$
SGST paid by the consumer $=9 \%$ of ₹ $48000=$ ₹ $\left(\frac{9}{100} \times 48000\right)=$ ₹ $4320$
Total GST paid by the consumer (output GST of dealer) = CGST + SGST
$=$ ₹ $4320 ~+$ ₹ $4320 =$ ₹ $8640$
Total amount paid by the consumer to the dealer = ₹ $48000~+$ ₹ $8640=$ ₹ $56640$
ii. GST paid by the consumer to the dealer $=$ ₹ $8640$.
iii. GST paid by the dealer to the central and state governments
= Output GST of dealer - Input GST of dealer
= ₹ $8640~-$ ₹ $8100=$ ₹ 540
iv. GST paid by the manufacturer to the central and state governments
= Output GST of the manufacturer - Input of the manufacturer
= ₹ $8100 ~-$ ₹ $0 =$ ₹ $8100$
i. The manufacturer sells the air conditioner to the dealer at discount of $10 \%$ on the marked price of ₹ 50,000 .
$\therefore$ Discount $=10 \%$ of ₹ $50,000=$ ₹$\left(\frac{10}{100} \times 50,000\right)=$ ₹ $5000$
Selling price of the air conditioner (S.P.) $=$ ₹ $50,000-$ ₹ $5000=$ ₹ $45000$.
CGST paid by the dealer to the manufacturer $=9 \%$ of ₹ $45000.$
$=$ ₹$ \left(\frac{9}{100} \times 45000\right)=$ ₹ $4050$
SGST paid by the dealer to the manufacturer $=9 \%$ of ₹ $45000$
$=$ ₹ $\left(\frac{9}{100} \times 45000\right)=$ ₹ $4050$
Total GST paid by the dealer to the manufacturer = ₹ $4050+$ ₹ $4050$
= ₹ 8100 .
i.e. Input GST of the dealer $=$ ₹ $8100$.
The dealer sells the air conditioner at a discount of $4 \%$ on marked price.
$\therefore$ Discount given by the dealer $=4 \%$ of ₹ $50,000=$ ₹ $\left(\frac{4}{100} \times 50,000\right)=$ ₹ $2000$
Selling price of the dealer $=$ ₹ $50,000-$ ₹ $2000= $ ₹ $48000$
$\therefore$ CGST paid by the consumer $=9 \%$ of ₹ $48000=$ ₹ $\left(\frac{9}{100} \times 48000\right)=$ ₹ $4320$
SGST paid by the consumer $=9 \%$ of ₹ $48000=$ ₹ $\left(\frac{9}{100} \times 48000\right)=$ ₹ $4320$
Total GST paid by the consumer (output GST of dealer) = CGST + SGST
$=$ ₹ $4320 ~+$ ₹ $4320 =$ ₹ $8640$
Total amount paid by the consumer to the dealer = ₹ $48000~+$ ₹ $8640=$ ₹ $56640$
ii. GST paid by the consumer to the dealer $=$ ₹ $8640$.
iii. GST paid by the dealer to the central and state governments
= Output GST of dealer - Input GST of dealer
= ₹ $8640~-$ ₹ $8100=$ ₹ 540
iv. GST paid by the manufacturer to the central and state governments
= Output GST of the manufacturer - Input of the manufacturer
= ₹ $8100 ~-$ ₹ $0 =$ ₹ $8100$
