Question

A shopkeeper buy goods worth ₹ 10,000 and sells them at a profit of 20% to a consumer in the same state. If GST is charged at 5%, find :
(a) The selling price (excluding tax) of the goods
(b) CGST paid by the consumer
(c) SGST paid by the consumer
(d) The total amount paid by the consumer

Hint:

Selling price = cost plus 20% profit. GST of 5% is shared equally between CGST and SGST for a sale in the same state.

Answer 1

Step 1: Understanding the question:
The shopkeeper sells to a consumer in the same state. So it is an intra-state sale. GST is split equally into CGST and SGST.
The profit is 20% of the cost price, ₹10,000.

Step 2: (a) Selling price excluding tax:
Profit = 20% of ₹10,000 = ₹2,000.
Selling price = ₹10,000 + ₹2,000 = ₹12,000.

Step 3: Total GST at 5%:
GST = 5% of ₹12,000 = ₹600.

Step 4: (b) and (c) CGST and SGST:
The two halves are equal. CGST = ₹600 / 2 = ₹300. SGST = ₹600 / 2 = ₹300.
That is, CGST = 2.5% of ₹12,000 = ₹300 and SGST = 2.5% of ₹12,000 = ₹300.

Step 5: (d) Total amount paid by the consumer:
Total = ₹12,000 + ₹300 + ₹300 = ₹12,600.

Final Answer:
(a) ₹12,000, (b) ₹300, (c) ₹300, (d) ₹12,600.