Exercise 1
Question 1
Mr. Abdul a manufacturer, sells his product worth Rs. 225000 within the state. He buys goods worth Rs. 120000 within the state. If the rate of GST is @ 12% on the raw material and @ 18% on the finished product find the amount of GST he has to pay.
Sol :
Input GST = 12% on raw material = 12% of 120000 $= 120000 \times \frac{12}{100} $= 14400
Output GST = 18% on finished product = 18% of 225000 $= 225000 \times \frac{18}{100} $= 40500
Here, output GST is more than input GST.
Thus, GST Payable = Output GST – Input GST
= 40500 – 14400 = Rs. 26100.
Question 2
A shoe manufacturer purchases goods worth Rs. 90000 from the markets within the state. He sells his product in the neighbourhood market for Rs, 78000. If the common rate of GST is @18%, find the GST payable/GST credit for the above transaction.
Sol :
Input GST = 18% on raw materials = 18% of 90000 $= 90000\times \frac{18}{100} $= 16200
Output GST = 18% on final product (shoes) = 18% of 78000 $= 78000 \times \frac{18}{100}$= 14040
Here, input GST is more than output GST.
Thus, GST Credit = Input GST – Output GST = 16200 – 14040 = Rs. 2160.
Question 3
Mrs Lata has a leather coat manufacturer unit in state A. She buys raw materials worth Rs. 80000 from a supplier from state B at a discount of 10%. She sells her product worth Rs. 220000 outside the state. If the rate of CGST @ 2.5 %, find the IGST payble/credit of Mrs. Lata.
Sol :
Price of raw material on 10% discount $= 80000\left(1 – \frac{10}{100}\right) $= 72000.
Price of final product (Leather coat) = 220000
We are given, CGST = SGST = 2.5%
Since sales are occurred in different states, IGST = CGST + SGST = 5%
Input GST = 5% on raw materials = 5% of 72000 = 72000 x 5/100 = 3600.
Output GST = 18% on final product (shoes) = 5% of 220000 $= 220000 \times \frac{5}{100}$ = 11000
Here, output GST is more than input GST.
Thus, GST Payable = Output GST – Input GST = 11000 – 3600 = Rs. 7400.
Question 4
Mrs Salim a biscuit manufacturer buys raw goods worth Rs 140000 from different markets within the state GST @ 5%. He sold packet biscuits worth Rs 210500 in the packet biscuits is 12%. Find the amount of IGST payable by him.
Sol :
Price of raw material = 140000
Price of final product = 210500
Since sales are occurred in within the states, CGST = SGST = 5%
Input GST = 5% on raw materials = 5% of 140000 $= 140000 \times \frac{5}{100} $= 7000.
Output GST = 12% on final product = 12% of 210500 $= 210500 \times \frac{12}{100} $= 25260
Here, output GST is more than input GST.
Thus, GST Payable = Output GST – Input GST = 25260 – 7000 = Rs. 18260.
Question 5
A sewing machine manufacturer purchases raw materials worth Rs. 540000 for his manufacturing unit from outside the state. The rate of IGST is @ 12%. He produced two types of sewing machine, 50 type A whose base price is Rs. 5000 GST @ 12% and 100 type B whose base price is Rs. 10000 GST @ 18%. He has two clients outside the state and received orders for 10 type A and 20 type B only by the client X, and 10 each by client Y.
Find (i) input GST (ii) output GST, (iii) GST payable/credit.
Sol :
Price of raw material = 540000
Price of sewing machine of type A = 5000
Price of sewing machine of type B = 10000
Since sales are occurred in different states,
IGST or GST = 12% on raw materials and on sewing machine of type A and 18% on sewing machine of type B.
(i) Input GST = 12% on raw materials = 12% of 540000 $= 540000 \times \frac{12}{100}$ = 64800.
Client X Order value = SP of 10 Sewing Machine A and SP of 20 Sewing Machine B
= (10×5000) + (20×10000) = 50000 + 200000
Client Y Order value = SP of 10 Sewing Machine A and SP of 10 Sewing Machine B
= (10×5000) + (10×10000) = 50000 + 100000
Total SP of Sewing Machine A = 50000 + 50000 = 100000
Total SP of Sewing Machine B = 200000 + 100000 = 300000
(ii) Output GST = 12% on A + 18% on B = (12% of 100000) + (18% of 300000) $= \left(100000 \times \frac{12}{100}\right) + \left(300000\times \frac{18}{100}\right)$= 12000 + 54000 = 66000
Here, output GST is more than input GST.
Thus,
(iii) GST Payable = Output GST – Input GST = 66000 – 64800 = Rs. 1200.
Question 6
The sales price of a washing machine, inclusive of GST is Rs. 28320. If the SGST is charged at the rate of 9% of the list price, find the list price of the washing machine.
Sol :
Let the list price of washing machine is Rs. P.
Price of sewing machine of type A = 5000
We are given, CGST = SGST = 9%. Thus, IGST = CGST + SGST = 18%.
Now, Final Selling Price inclusive GST = 28320.
Then, $P\left(1 + \frac{18}{100}\right) = 28320 $
⇒ P $= \dfrac{(28320 \times 100) }{118} $= Rs. 2400.
Question 7
Radhika buys crockery having marked price Rs. 4500. She gets a discount of 12%. If the CGST is @ 6%, find the amount she is required to pay for the crockery. Also, find the amount of SGST.
Sol :Selling Price of crockery on 12% discount $= 4500\left(1 – \frac{12}{100}\right) $= 3960
We are given, CGST = SGST = 6%.
IGST Amount $= 3960 \times \frac{12}{100 }$= Rs. 475.20
Final price to be paid by Radhika = 3960 + 475.20 = Rs. 4435.20
SGST Amount $=\frac{\text{ (IGST Amount)}}{2} =\frac{475.20}{2}$= Rs. 237.6
Question 8
The list price of a Dell laptop is Rs. 84000. The dealer gives a discount of 20% on the listed price. He also offers 10% additional discount on the balance. However, GST @ 28% is charged on Laptop.
Find (i) the taxable amount. (ii) the total amount of GST the customer has to pay (iii) final price he has to pay to the dealer including GST.
Sol :
List Price of Dell laptop = Rs. 84000
(i) Taxable Amount = Selling Price of Dell laptop after two discounts $= 84000\left(1 – \frac{20}{100}\right)\left(1 – \frac{10}{100}\right)$ = Rs. 60480
We are given GST = 28%.
(ii) GST paid by customer = 60480 x 28/100 = Rs. 16934.40
(iii) Final price to be paid by customer = 60480 + 16934.40 = Rs. 77414.40
Question 9
Mrs. Sarita buys goods worth Rs 6500 from Easy day store. She gets a rebate of 10% on Rs 5000 as a member and a flat discount of Rs 50 on the remaining. If the GST is charged @ 18% find the total amount she has to pay for the goods.
Sol :
List Price of goods = Rs. 6500
Since Sarita is a member of Easy day, Selling price for Sarita is
SP = 5000(1 – 10/100) + (1500 – 50) = 4500 + 1450 = Rs. 5950
We are given GST = 18%.
Final bill paid by Sarita is 5950(1 + 18/100) = Rs. 7021
Question 10
A retailer marked up the price of his goods by 20 % above the list price and offers two successive discount of 10% and 5% on the marked up price. GST is @18% on the goods. Find the list price of goods if the consumer pays Rs 4671 as CGST. Also, find the final price consumer has to pay for the goods.
Sol :
Let the list price of goods = Rs. x
Then, the marked price of goods $= x\left(1 + \frac{20}{100}\right)$
Selling price of goods $= x\left(1 + \frac{20}{100}\right)\left(1 – \frac{10}{100}\right)\left(1 – \frac{50}{100}\right)$
Since GST = 18%, so CGST = SGST = 9%.
Now, CGST Amount = Rs. 4671
⇒ $x\left(1 + \frac{20}{100}\right)\left(1 –\frac{10}{100}\right)\left(1 – \frac{50}{100}\right) \times \frac{9}{100}$ = 4671
⇒ x = 50000.
Thus, the list price of goods is Rs 50000.
Now, final bill paid by consumer is
Bill = Selling Price + GST Amount Paid
$= 50000\left(1 + \frac{20}{100}\right)\left(1 – \frac{10}{100}\right)\left(1 – \frac{50}{100}\right) + \left(4671 + 4671\right) $
= Rs. 60534.
Question 11
Anil went to a shop to buy a bicycle costing Rs 10620. The rate of CGST is 9%. He asks the shopkeeper to reduce the price of the bicycle to such an extent so that he has to pay Rs. 10620 inclusive GST. Find the reduction needed in the price of the bicycle.
Sol :
Let the reduction price of bicycle = Rs. x,
Then, selling price of bicycle = Rs. (10620 – x)
Since CGST = SGST = 9%, so GST = CGST + SGST = 18%.
Then, final bill paid by Anil is
$\left(10620 – x\right)\left(1 + \frac{18}{100}\right) = 10620$
⇒ x = 1620.
Therefore, required price is Rs. 1620.
Question 12
The price of a mobile phone is Rs. 32000 inclusive of 28% GST on the list price. Vineeta asks for a discount on the list price so that after charging the GST, the final price becomes the list price.Find (i) the amount of discount which Vineeta got from the shopkeeper, (ii) the amount of SGST on the discounted value of the mobile.
Sol :
Let the list price of mobile = Rs. x, Then,
⇒$x\left(1 + \frac{28}{100}\right) = 32000$
⇒ x = 25000
Let the discounted price on mobile = Rs. y. Then,
⇒$32000 – y\left(1 + \frac{28}{100}\right) = 25000$
⇒ $y\left(1 + \frac{28}{100}\right) = 7000$
Thus, (i) Required amount of discount = Rs. 7000.
This is discounted amount inclusive of GST.
Thus, (ii) SGST Amount $=\frac{7000}{2}$ = Rs. 3500.
Question 13
Sol :
Then, the marked price of one calculator $= 900\left(1 + \frac{50}{100}\right) $= Rs. 1350
After 10% discount, selling price of one calculator $= 1350\left(1 – \frac{10}{100}\right) $= Rs. 1215
Thus, selling price of 120 calculators = 1215×120 = Rs. 145800
Since GST is 18%, then final bill paid by dealer is
Bill Paid $= 145800\left(1 + \frac{18}{100}\right) $= Rs. 1720440.
GST is 18%, then CGST = SGST = 9%.
Thus, Required SGST Amount = 145800 x 9/100 = Rs. 13122.
Question 14
The manufacturer produces television sets at a cost of Rs. 32000. He sells it to distributor at a profit of Rs. 2000, distributor sells it to a wholesaler at a profit of Rs. 2500 and wholesaler sells to a retailer at a profit of Rs 3000. Finally retailer sells to consumer at a profit of Rs 3500 and rate of GST is 18%.
Find (i) the final amount which consumer pays for the article (ii) total GST amount.
Sol :
Cost price of television for manufacturer = Rs. 32000
Cost price of television for distributor = Rs. 32000 + Rs. 2000 = Rs. 34000
Cost price of television for whole-seller = Rs. 34000 + Rs. 2500 = Rs. 36500
Cost price of television for retailer = Rs. 36500 + Rs. 3000 = Rs. 39500
Cost price of television for consumer = Rs. 39500 + Rs. 3500 = Rs. 43000
Since GST is 18%, then
(i) final bill paid by consumer is $43000\left(1 + \frac{18}{100}\right)$ = Rs. 50740.
(ii) GST Amount = 50740 – 43000 = Rs. 7740.
Question 15
A manufacturer washing machines at a cost of Rs. 11000. He sells to B, and B sells to C, C sells it to D. The GST rate is 28% and the profit is Rs. 1500 at each stage of selling chain.Find (i) the total amount of GST (ii) the price including GST ‘D’ paid for the washing machine
Sol :
Since GST is 28%, then
(i) GST Amount $= 15500 \times \frac{28}{100} $= Rs. 4340.
(ii) final bill paid by D is (15500 + 4340) = Rs. 19840.
Question 16
Find (i) Total GST collected by the State Government at the rate of 28%. (ii) The amount that the customer paid for the TV.
Sol :
Final cost price of TV for customer = Rs. (15000 + 1000 + 1000 + 1500) = Rs. 18500
Since GST is 28%, then CGST = SGST = 14%
(i) SGST Amount $= 18500 \times \frac{14}{100} $= Rs. 2590.
(ii) final bill paid by customer is (18500 + 2590) = Rs. 21090.
Question 17
Mr. T N Naim purchased sport bike for his son at a discount of 15%, having ex-showroom price Rs. 400500. Insurance cover premium of the bike is 8% of the discounted value. The cost of accessories is Rs. 20000. Dealer offered 5% discount on accessories. Rate of GST is 28% on the bike and 18% on the insurance premium and 12% on the accessories.Find (i) Total amount of GST to (nearest rupee) (ii) Total amount (to nearest rupee) including the insurance premium paid by Mr. T N Naim.
Sol :
Ex-showroom price of Sport bike = Rs 400500
After 15% discount, cost price of bike = 400500(1 – 15/100) = 400500 x 85/100 = Rs. 340425
Insurance cover premium = 8% of 340425 = 340425 x 8/100 = Rs. 27234
Cost price of Accessories = Rs 20000
After 5% discount, cost price of accessories = 20000(1 – 5/100) = 20000 x 95/100 = Rs. 19000
(i) Total amount of GST
= (GST 28% on the bike) + (GST 18% on the insurance premium) + (GST 12% on the accessories)
= 102501.12
(ii) Total amount including the insurance premium paid by Mr. T N Naim
= (Cost Price of the bike) + (Insurance premium) + (Cost price of the accessories) + (GST Amount)
= 340425 + 27234 + 19000 + 102501 = Rs. 489160.
Question 18
A person bought following stationary items.
| ITEM | QUANTITY | RATE |
| Chelpark Ink | 10 Bottles | ₹85 each |
| Pens | 6 Dozens | ₹200 per dozen |
| Erasers | 8 Dozens | ₹50 per dozens |
| Sharpeners | 10 Dozens | ₹40 per dozens |
| Pencils | 12 Dozens | ₹120 per dozens |
Sol :
Total price for the given items is
Price = (85×10) + (6×200) + (8×50) + (10×40) + (12×120) = Rs. 4290
Since CGST = SGST is 2.5 %, then GST = CGST + SGST = 5%.
Thus, GST Amount = 5% of 4290 = Rs. 214.5.
And, Total Bill paid by customer = 4290 + 214.5 = Rs. 4505.50.
Question 19
| ITEM | QUANTITY | RATE PER ITEM (₹) | DISCOUNT | GST RATE |
| Cosmetics | 2 | 690 | 5% | 18% |
| Tea Set | 1 | 1500 | 10% | 12% |
| Shirts | 4 | 1200 | 10% | 12% |
| Packed Dry Fruits | 4 | 800 | 25% | 18% |
| Food Grains | 1 | 560 | 10% | NIL |
Find (i) Total amount of GST (ii) Total bill amount.
Sol :
After discount,
Cosmetic Price $= (2 \times 690)\left(1 – \frac{5}{100}\right) $= 1311
Tea Set Price $= (1 \times 1500)\left(1 – \frac{10}{100}\right)$ = 1350
Shirts Price $= (4 \times 1200)\left(1 – \frac{10}{100}\right)$ = 4320
Packed Dry Fruits Price $= (4 \times 800)\left(1 – \frac{25}{100}\right) $= 2400
Unpacked Dry Fruits Price $= (1 \times 560)\left(1 – \frac{10}{100}\right)$ = 504
Total Price = 1311 + 1350 + 4320 + 2400 + 504 = Rs. 9885
(i) GST Amount $= \left(1311 \times \frac{18}{100}\right) +\left(1350 \times \frac{12}{100}\right) + \left(4320 \times \frac{12}{100}\right) + \left(2400 \times \frac{18}{100}\right) + 0$
= 235.98 + 162 + 518.4 + 432 = Rs. 1348.38.
(ii) Total Bill Amount = 9885 + 1348.38 = Rs. 11233.38.
Question 20
Mr. Madhukar buys following goods from Big Bazar.
| ITEM | COST | RATE OF GST | DISCOUNT |
| Readymade garments | 4500 | 12% | 10% |
| Microwave | 25600 | 28% | 25% |
| Stationary | 3400 | 5% | NIL |
| Grocery | 2400 | 5% | NIL |
| Bakery Items (Unpacked) | 1200 | NIL | NIL |
Find (i) Total taxable amount (ii) Total discount amount (iii) Total GST amount (iv) Total bill amount.
Sol :
After discount,
Readymade Garments Price $= 4500\left(1 – \frac{10}{100}\right)$ = 4050
Microwave Price $= 25600\left(1 – \frac{25}{100}\right)$ = 19200
Stationary Price = 3400
Grocery Price = 2400
Bakery Price = 1200
Total Price = 4050 + 19200 + 3400 + 2400 + 1200 = Rs. 30250
(i) Total taxable amount = 4050 + 19200 + 3400 + 2400 = Rs. 29050.
(ii) Total discounted amount = 450 + 6400 = Rs. 6850.
(iii) Total GST amount = 486 + 5376 + 290 = Rs. 6152.
(iv) Total bill amount = 30250 + 6152 = Rs. 36402.
