Problem Statement
A dealer in Mumbai (Maharashtra) buys an article with a marked price of ₹25,000 from a wholesaler at a discount of 20%. The dealer sells it to an end consumer in Pune (Maharashtra) at 10% profit on the marked price. If the GST rate is 18%, calculate:
(i) The price paid by the dealer including GST.
(ii) The total amount paid by the consumer.
(iii) The net CGST and SGST payable by the dealer to the Government.
Verified Solution & Marking Scheme
Compute Dealer Purchase Price and Input GST
Marked price $MP = ₹25,000$. Discount = $20\%$.
$\text{Dealer Cost Price (CP)} = 25000 - 0.20 \times 25000 = ₹20,000$
Since intra-state (Mumbai to Pune), GST = $18\%$ (CGST = $9\%$, SGST = $9\%$):
$\text{Input CGST} = 9\% \times 20000 = ₹1,800, \quad \text{Input SGST} = 9\% \times 20000 = ₹1,800$
$\text{Total Price paid by dealer} = 20000 + 3600 = ₹23,600$
Compute Consumer Selling Price and Total Amount Paid
Dealer sells at $10\%$ profit on Marked Price:
$\text{Selling Price (SP)} = 25000 + 0.10 \times 25000 = ₹27,500$
$\text{Output GST collected from consumer} = 18\% \times 27500 = ₹4,950$
$\text{Total amount paid by consumer} = 27500 + 4950 = ₹32,450$
Calculate Net CGST and SGST Payable by Dealer
$\text{Net GST payable} = \text{Output GST} - \text{Input GST (ITC)} = 4950 - 3600 = ₹1,350$
Since it is an intra-state transaction, net tax is equally divided:
$\text{Net CGST payable} = \frac{1350}{2} = ₹675$
$\text{Net SGST payable} = \frac{1350}{2} = ₹675$