GST — Goods and Services Tax
Interactive, step-by-step solutions for Exercise 1(A), Exercise 1(B), Test Yourself and the case-study question.
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Exercise 1(A)
The marked price of an article is ₹1,500 and the discount is 20%. How much will be paid if GST is 18%?
Show Answer & Step-by-Step Solution⌄
Given,
M.P. = ₹ 1500
Discount = 20%
Rate of G.S.T. = 18%
Discounted price = M.P. - Discount
= 1,500 − (20/100) × 1,500
= 1500 - 300
= ₹ 1200.
G.S.T. on discounted price
= (18/100) × ₹1,200 = ₹216.
Money paid for article = Discounted price + G.S.T.
= ₹ 1200 + ₹ 216 = ₹ 1416.
Hence, Option 2 is the correct option.
The following bill shows the GST rates and the marked price of articles A and B.
| Articles | Marked price | Rate of GST |
|---|---|---|
| A | ₹1,000 | 5% |
| B | ₹2,000 | 12% |
The total amount to be paid for the above bill is:
Show Answer & Step-by-Step Solution⌄
For article A :
M.P. = ₹ 1000
Rate of G.S.T. = 5%
G.S.T. = (5/100) × ₹1,000 = ₹50.
Amount = M.P. + G.S.T. = ₹ 1000 + ₹ 50 = ₹ 1050.
For article B :
M.P. = ₹ 2000
Rate of G.S.T. = 12%
G.S.T. = (12/100) × ₹2,000 = ₹240.
Amount = M.P. + G.S.T. = ₹ 2000 + ₹ 240 = ₹ 2240.
Total bill for article A and B = ₹ 1050 + ₹ 2240 = ₹ 3290.
Hence, Option 3 is the correct option.
The GST of an article is reduced from 12% to 5% and due to this, the price paid for the article is cut down by ₹ 14. The original price of the article is:
Show Answer & Step-by-Step Solution⌄
Let the original price of the article (excluding GST) be x.
The price paid when the GST is 12% = x + 12% of x
= x + (12/100)x
= x + 0.12x
= 1.12x
The price paid when the GST is 5% = x + 5% of x
= x + (5/100)x
= x + 0.05x
= 1.05x
Given,
The difference in the price paid is ₹ 14.
1.12x - 1.05x = 14
0.07x = 14
x = 14/0.07
x = 200.
The original price of the article is ₹ 200.
Hence, Option 4 is the correct option.
A dealer in Rajasthan supplies goods and services to a dealer in Punjab. If the rate of G.S.T. is 28%. then the rate of SGST is :
Show Answer & Step-by-Step Solution⌄
The transaction from Rajasthan to Punjab is an inter-state transaction.
In inter-state transaction :
SGST = Nil = 0%.
Hence, Option 3 is the correct option.
In case of inter-state sales of goods or services, if GST rate is 18%, then :
Show Answer & Step-by-Step Solution⌄
In case of inter-state sales of goods or services, if GST rate is 18%, then :
SGST = 0%
CGST = 0%
IGST = 18%
Hence, Option 4 is the correct option.
The marked price of an article is ₹ 1,375. If the CGST is charged at rate of 4%, then the price of the article including GST is :
Show Answer & Step-by-Step Solution⌄
Given,
Marked price of an article = ₹ 1,375
CGST Rate: 4%
CGST = 4% of 1,375
= (4/100) × ₹1,375
= ₹ 55
SGST = 4% of 1,375
= (4/100) × ₹1,375
= ₹ 55
Total GST of article = CGST + SGST = ₹ 55 + ₹ 55 = ₹ 110.
Total Price including GST of an article = Marked price + GST
= ₹ 1,375 + ₹ 110 = ₹ 1,485.
Hence, Option 4 is the correct option.
The marked price of an article is ₹ 2,000. The G.S.T. on the article is 12% and discount is ₹ 500, the total amount to be paid is :
Show Answer & Step-by-Step Solution⌄
Given,
M.P. = ₹ 2000
Discount = ₹ 500
Rate of G.S.T. = 12%
Discounted price = M.P. - Discount
= ₹ 2000 - ₹ 500
= ₹ 1500.
G.S.T. on discounted price
= (12/100) × ₹1,500 = ₹180.
Money paid for article = Discounted price + G.S.T.
= ₹ 1500 + ₹ 180 = ₹ 1680.
Hence, Option 2 is the correct option.
For the following transaction within Delhi, fill in the blanks to find the amount of bill :
MRP = ₹12,000
Discount = 30%
GST% = 18%
Discount = ...............
Discounted value = ...............
CGST = ...............
SGST = ...............
IGST = ...............
Amount of bill = ...............
Show Answer & Step-by-Step Solution⌄
Given,
M.R.P. = ₹12,000
Discount = 30%
∴ Discount = (30/100) × ₹12,000 = ₹3,600.
Discounted value = ₹ 12000 - ₹ 3600 = ₹ 8400.
Given, GST% = 18%, so
CGST = 9% and SGST = 9%.
Since, transactions are within a particular state i.e., Delhi so, IGST = Nil.
∴ CGST = (9/100) × ₹8,400 = ₹756.
∴ SGST = (9/100) × ₹8,400 = ₹756.
Amount of bill = Discounted price + CGST + SGST = ₹ 8400 + ₹ 756 + ₹ 756 = ₹ 9912.
Hence, Discount = ₹ 3600, Discounted value = ₹ 8400, CGST = ₹ 756 and SGST = ₹ 756, IGST = ₹ 0, Amount of bill = ₹ 9912.
For the following transaction from Delhi to Jaipur, fill in the blanks to find the amount of bill :
MRP = ₹ 50,000
Discount = 20%
GST = 28%
Discount = ...............
Discounted value = ...............
CGST = ...............
SGST = ...............
IGST = ...............
Amount of bill = ...............
Show Answer & Step-by-Step Solution⌄
Given,
M.R.P. = ₹50,000
Discount = 20%
∴ Discount = (20/100) × ₹50,000 = ₹10,000.
Discounted value = ₹ 50000 - ₹ 10000 = ₹ 40000.
Since transactions are inter state hence,
CGST = Nil and SGST = Nil.
IGST = 28%.
∴ IGST = (28/100) × ₹40,000 = ₹11,200.
Amount of bill = Discounted price + IGST = ₹ 40000 + ₹ 11200 = ₹ 51200.
Hence, Discount = ₹ 10000, Discounted value = ₹ 40000, CGST = SGST = ₹ 0, IGST = ₹ 11200, Amount of bill = ₹ 51200.
Find the amount of bill for the following intra-state transaction of goods/services.
| Particulars | Item 1 | Item 2 | Item 3 | Item 4 |
|---|---|---|---|---|
| MRP (in ₹) | 12,000 | 15,000 | 9,500 | 18,000 |
| Discount | 30% | 20% | 30% | 40% |
| CGST | 6% | 9% | 14% | 2.5% |
Show Answer & Step-by-Step Solution⌄
Discount value % = 100 % - Discount %
CGST = SGST.
Construct the table as under :
| MRP (₹) | Discount | Discounted value (₹) | CGST | CGST (₹) | SGST (₹) | Total (₹) |
|---|---|---|---|---|---|---|
| 12,000 | 30% | (70/100) × 12,000 = 8,400 | 6% | (6/100) × 8,400 = 504 | 504 | 9,408 |
| 15,000 | 20% | (80/100) × 15,000 = 12,000 | 9% | (9/100) × 12,000 = 1,080 | 1,080 | 14,160 |
| 9,500 | 30% | (70/100) × 9,500 = 6,650 | 14% | (14/100) × 6,650 = 931 | 931 | 8,512 |
| 18,000 | 40% | (60/100) × 18,000 = 10,800 | 2.5% | (2.5/100) × 10,800 = 270 | 270 | 11,340 |
| Total | 43,420 |
Hence, the total amount = ₹43,420.
For the data given above in question no. 4, find the amount of bill for the inter-state transaction.
Show Answer & Step-by-Step Solution⌄
Discount value % = 100 % - Discount %
IGST = 2CGST%
Construct the table as under :
| MRP (₹) | Discount | Discounted value (₹) | IGST | IGST (₹) | Total (₹) |
|---|---|---|---|---|---|
| 12,000 | 30% | (70/100) × 12,000 = 8,400 | 2 × 6% = 12% | (12/100) × 8,400 = 1,008 | 9,408 |
| 15,000 | 20% | (80/100) × 15,000 = 12,000 | 2 × 9% = 18% | (18/100) × 12,000 = 2,160 | 14,160 |
| 9,500 | 30% | (70/100) × 9,500 = 6,650 | 2 × 14% = 28% | (28/100) × 6,650 = 1,862 | 8,512 |
| 18,000 | 40% | (60/100) × 18,000 = 10,800 | 2 × 2.5% = 5% | (5/100) × 10,800 = 540 | 11,340 |
| Total | 43,420 |
Hence, the total amount = ₹43,420.
A dealer in Mumbai supplied some identical items at the following prices to a dealer in Delhi. Find the total amount of bill.
| Rate per item (₹) | Quantity | Discount | SGST |
|---|---|---|---|
| 180 | 10 | — | 9% |
| 260 | 20 | 20% | 9% |
| 310 | 30 | — | 9% |
| 175 | 20 | 30% | 9% |
Show Answer & Step-by-Step Solution⌄
Discounted% = 100% - Discount%.
IGST% = 2SGST%
| Quantity | Rate/item (₹) | Total value (₹) | Discount | Discounted value (₹) | IGST | IGST (₹) | Total (₹) |
|---|---|---|---|---|---|---|---|
| 10 | 180 | 1,800 | — | 1,800 | 18% | (18/100) × 1,800 = 324 | 2,124 |
| 20 | 260 | 5,200 | 20% | (80/100) × 5,200 = 4,160 | 18% | (18/100) × 4,160 = 748.80 | 4,908.80 |
| 30 | 310 | 9,300 | — | 9,300 | 18% | (18/100) × 9,300 = 1,674 | 10,974 |
| 20 | 175 | 3,500 | 30% | (70/100) × 3,500 = 2,450 | 18% | (18/100) × 2,450 = 441 | 2,891 |
| Total | 20,897.80 |
Hence, the amount of bill = ₹20,897.80.
M/s Unique traders, Delhi, provided the following services to M/s Geeta Trading Company in Agra (U.P.). Find the amount of bill :
| Particulars | Service 1 | Service 2 | Service 3 | Service 4 |
|---|---|---|---|---|
| Number of services | 8 | 12 | 10 | 16 |
| Cost of each service (₹) | 680 | 320 | 260 | 420 |
| GST | 5% | 12% | 18% | 12% |
Show Answer & Step-by-Step Solution⌄
Construct the table as under :
| No. of services | Cost/service (₹) | Value (₹) | IGST | IGST (₹) | Total (₹) |
|---|---|---|---|---|---|
| 8 | 680 | 5,440 | 5% | (5/100) × 5,440 = 272 | 5,712 |
| 12 | 320 | 3,840 | 12% | (12/100) × 3,840 = 460.80 | 4,300.80 |
| 10 | 260 | 2,600 | 18% | (18/100) × 2,600 = 468 | 3,068 |
| 16 | 420 | 6,720 | 12% | (12/100) × 6,720 = 806.40 | 7,526.40 |
| Total | 20,607.20 |
Hence, the amount of bill = ₹20,607.20.
Find the total amount of the following :
Note : 20% discount is allowed on an article if 80 or more such articles are purchased.
| Article | M.P. (₹) | Quantity | GST |
|---|---|---|---|
| A | 180 | 120 | 5% |
| B | 120 | 50 | 12% |
Show Answer & Step-by-Step Solution⌄
For article A,
Given, M.P. = ₹ 180
Quantity purchased = 120
Quantity 120 > 80,20% discount is allowed
Discount on each article = (20/100) × ₹180 = ₹36.
Selling price = ₹ 180 - ₹ 36 = ₹ 144
Total value = ₹ 144 × 120 = ₹ 17,280
GST = 5% of ₹ 17,280
= (5/100) × ₹17,280 = ₹864.
Total amount = Total value + GST
= ₹ 17,280 + ₹ 864 = ₹ 18,144.
For article B,
Given, M.P. = ₹ 120
Quantity purchased = 50
Quantity 50 < 80, No discount allowed.
Total value = ₹ 120 × 50 = ₹ 6,000
GST = 12% of ₹ 6,000
= (12/100) × ₹6,000 = ₹720.
Total amount = Total value + GST
= ₹ 6,000 + ₹ 720 = ₹ 6,720.
Final bill = ₹ 18,144 + ₹ 6,720 = ₹ 24,864
Hence, the amount of bill = ₹ 24,864.
The tax invoice of a telecom service in Surat shows cost of services provided by it as ₹ 750. If the GST rate is 18%, find the amount of the bill.
Show Answer & Step-by-Step Solution⌄
Cost of services = ₹ 750,
GST = 18%,
GST = (18/100) × ₹750 = ₹135.
Amount = ₹ 750 + ₹ 135 = ₹ 885.
Hence, the amount of bill = ₹ 885.
Ms. Pratima took Health Insurance Policy for her family and paid ₹ 900 as SGST. Find the total annual premium, including GST, paid by her for this policy. The rate of GST being 18%.
Show Answer & Step-by-Step Solution⌄
Given, GST = 18%,
∴ SGST = 9%.
Let annual premium be ₹ x.
Given, SGST = ₹ 900.
∴ 900 = (9/100)x ⇒ x = (900 × 100)/9 ⇒ x = 10,000.
We know that, CGST = SGST.
∴ Amount = Premium + CGST + SGST = ₹ 10000 + ₹ 900 + ₹ 900 = ₹ 11800.
Hence, the annual premium including GST = ₹ 11800.
Mr. Malik went on a tour of Goa. He took a room in a hotel for two days at the rate of ₹ 5000 per day. On the same day, his friend John also joined him. The hotel provided an extra bed charging ₹ 1000 per day for the bed. How much GST, at the rate of 28% is charged by the hotel in the bill to Mr. Malik, for both the days?
Show Answer & Step-by-Step Solution⌄
Total charge of room for one day = ₹ 5000 + ₹ 1000 = ₹ 6000.
Charge for 2 days = 2 × 6000 = ₹ 12000.
GST = 28%,
∴ GST = (28/100) × ₹12,000 = ₹3,360.
Hence, the amount of GST charged in the bill = ₹ 3360.
Exercise 1(B)
Under G.S.T., ‘value addition’ refers to:
Show Answer & Step-by-Step Solution⌄
Under G.S.T. 'value addition' refers to expense plus profit.
Hence, Option 3 is the correct option.
If the rate of GST is 18%, the IGST for an inter-state sale is:
Show Answer & Step-by-Step Solution⌄
Option 2 is the correct option.
Reason
In the case of inter-state sale, rate of GST = rate of IGST
⇒ IGST = 18%
Hence, the IGST for an inter-state sale = 18%.
If a dealer supplies goods worth ₹ 3,000 to another local dealer with 28% GST, then the tax levied under CGST is:
Show Answer & Step-by-Step Solution⌄
Option 4 is the correct option.
Reason
Cost of goods = ₹ 3,000
GST rate = 28%
Since, it is a local (intra-state) supply, the GST is equally divided between CGST and SGST.
CGST = SGST = GST/2 = 28%/2 = 14%.
The tax levied under CGST = 14% of ₹ 3,000
= (14/100) × ₹3,000
= 14 x 30 = ₹ 420
Hence, the tax levied under CGST = ₹ 420.
For a registered dealer, if the input tax is ₹ x and output tax is ₹ y, then the tax liability on the dealer is:
Show Answer & Step-by-Step Solution⌄
Option 3 is the correct option.
Reason
Given, input tax = ₹ x
output tax = ₹ y
Tax liability = Output tax - Input tax
= ₹ (y - x)
Hence, the tax liability on the dealer is ₹ (y - x).
John sells goods worth ₹ 2,000 to Manish belonging to the same state. John gives a discount of 20% and charges GST = 5%. Then John gets :
Show Answer & Step-by-Step Solution⌄
Option 3 is the correct option.
Reason
Given, Marked price of goods = ₹ 2,000
Discount = 20%
Discount on goods = (20/100) × ₹2,000 = ₹400.
Discounted value = Marked price - Discount price
= 2,000 - 400
= ₹ 1,600
GST = 5% of 1600
= (5/100) × ₹1,600 = ₹80.
Total amount John Gets = 1,600 + 80 = ₹ 1,680
Hence, the amount John Gets = ₹ 1,680.
Fill in the blanks :
When the goods/services are sold for ₹ 15,000 under intra-state transaction from station A to station B and the rate of GST is 12%.
As per GST system
(a) S.P. (excluding GST) at station A = ..........
(b) CGST = ................
SGST = ................
(c) C.P. (excluding GST) at station B = ............
(d) If profit = ₹ 5,000
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%.
(e) GST = ..........
(f) C.P. (excluding GST) at station C = ..........
Show Answer & Step-by-Step Solution⌄
When the goods/services are sold for ₹ 15000 under intra-state transaction from station A to station B and the rate of GST is 12%.
As per GST system
(a) S.P. (excluding GST) at station A = ₹ 15000
(b) CGST = 6% of ₹15,000 = (6/100) × ₹15,000 = ₹900.
SGST = 6% of ₹15,000 = (6/100) × ₹15,000 = ₹900.
(c) C.P. (excluding GST) at station B = ₹ 15000
(d) If profit = ₹ 5000
S.P. at station B = ₹ 15000 + ₹ 5000 = ₹ 20000.
(e) GST = 12% of ₹20,000 = (12/100) × ₹20,000 = ₹2,400.
(f) C.P. (excluding GST) at station C = ₹ 20000.
Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for ₹ 20,000 and then Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is ₹ 5,000, find :
The net GST payable by the dealer at Kanpur (GST received - GST paid).
Show Answer & Step-by-Step Solution⌄
When the goods are sold from Agra to Kanpur it is an intra-state transaction.
For dealer in Agra
S.P. = ₹ 20,000
CGST = 9% of ₹ 20,000 = ₹ 1800
SGST = CGST = ₹ 1800.
When the product is sold from Kanpur to Jaipur, it is an inter-state transaction.
For dealer in Kanpur
Input-tax credit (ITC) = ₹ 1800 + ₹ 1800 = ₹ 3600.
C.P. (excluding GST) = ₹ 20000 + ₹ 5000 = ₹ 25000.
IGST = 18% of ₹ 25000 = ₹ 4500.
∴ Net GST payable at Kanpur = Output GST - Input-tax credit = ₹ 4500 - ₹ 3600 = ₹ 900.
Hence, the net GST payable at Kanpur is ₹ 900.
A is a dealer in Banaras (U.P.). He supplies goods/services, worth ₹ 8000 to a dealer B in Agra (U.P.) Dealer B in turn, supplies the same goods/services to a dealer C in Patna (Bihar) at a profit of ₹ 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 sells his goods/services further.
Show Answer & Step-by-Step Solution⌄
According to question,
For dealer A (intra-state transaction)
S.P. = ₹ 8000
For dealer B
C.P. = ₹ 8000
CGST = 9% of ₹ 8000 = ₹ 720
SGST = 9% of ₹ 8000 = ₹ 720
Given, Profit = ₹ 1200
S.P. = ₹ 8000 + ₹ 1200 = ₹ 9200.
For dealer C (inter-state transaction)
C.P. = ₹ 9200
IGST = 18% of ₹9,200 = (18/100) × ₹9,200 = ₹1,656.
∴ Input tax = ₹ 1656.
As the dealer in Patna does not sell product,
∴ Output tax = ₹ 0.
Hence, the input tax = ₹ 1656 and output tax = ₹ 0.
A is a dealer in Meerut (UP). He supplies goods/services, worth ₹ 15000 to dealer B in Ratlam (MP). Dealer B, in turn, supplies the same goods/services to dealer C in Jabalpur (MP) at a profit of ₹ 3000. If the rate of tax (under the GST system) is 18%, find :
(i) the cost (excluding GST) of goods/services to the dealer C in Jabalpur (assuming that the dealer C does not sell the goods/services further).
(ii) net tax payable by dealer B.
Show Answer & Step-by-Step Solution⌄
For A (case of inter-state transaction)
S.P. in Meerut = ₹ 15000
IGST = 18% of ₹15,000 = (18/100) × ₹15,000 = ₹2,700.
Input tax for B = ₹ 2700.
Given profit on selling to C = ₹ 3000
∴ S.P. in Ratlam = ₹ 15000 + ₹ 3000 = ₹ 18000.
For C (case of intra-state transaction)
C.P. = ₹ 18000
CGST = 9% of ₹18,000 = (9/100) × ₹18,000 = ₹1,620.
SGST = CGST = ₹ 1620.
(i) Cost for dealer C = S.P. for dealer in Ratlam + GST = ₹ 18000 + ₹ 1620 + ₹ 1620 = ₹ 21240.
Hence, the cost of goods/services for dealer C = ₹ 21240.
(ii) Output tax for B = CGST + SGST = ₹ 1620 + ₹ 1620 = ₹ 3240
∴ Net GST payable by dealer B = Output tax - Input tax = ₹ 3240 - ₹ 2700 = ₹ 540.
Hence, the net tax payable by dealer = ₹ 540.
A dealer X in Hapur (UP) supplies goods/services, worth ₹ 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 ₹ 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%]
Show Answer & Step-by-Step Solution⌄
According to question we have,
For dealer X (intra-state transaction)
SP = ₹ 50000
For dealer Y (intra-state transaction)
CP = ₹ 50000
CGST = 14% of ₹50,000 = (14/100) × ₹50,000 = ₹7,000.
SGST = 14% of ₹50,000 = (14/100) × ₹50,000 = ₹7,000.
Input tax = ₹ 7000 + ₹ 7000 = ₹ 14000
Profit of dealer Y = ₹ 20000
S.P. of dealer Y = ₹ 50000 + ₹ 20000 = ₹ 70000.
For dealer Z (inter-state transaction)
CP = ₹ 70000
IGST = 28% of ₹70,000 = (28/100) × ₹70,000 = ₹19,600.
(i) Output tax for Y = Input tax for Z = ₹ 19600.
Input tax of dealer Y = ₹ 14000.
Hence, for dealer Y, Output tax = ₹ 19600 and Input tax = ₹ 14000.
(ii) Net GST payable by dealer Y = Output tax - Input tax
= ₹ 19600 - ₹ 14000 = ₹ 5600.
Hence, net GST payable for Y = ₹ 5600.
Consultancy services, worth ₹ 50000 are transferred from Delhi to Kolkata at the rate of GST 18% and then Kolkata to Nainital (with profit = ₹ 20000) at the same rate of GST. Find the output tax at
(i) Delhi
(ii) Kolkata
(iii) Nainital
Show Answer & Step-by-Step Solution⌄
(i) Delhi to Calcutta (Transaction is an inter state transaction)
IGST = 18% of ₹50,000 = (18/100) × ₹50,000 = ₹9,000.
Hence, the output tax in Delhi = ₹ 9000.
(ii) For Calcutta,
C.P. = ₹ 50000
Profit in sending to Nainital = ₹ 20000
S.P. = ₹ 50000 + ₹ 20000 = ₹ 70000.
Transaction is an inter state transaction
IGST = (18/100) × ₹70,000 = ₹12,600.
Hence, the output tax in Calcutta = ₹ 12600.
(iii) Since the dealer in Nainital does not transfer the services further
Hence, output tax = ₹ 0
Hence, the output tax in Nainital = ₹ 0.
For a trader, marked price of a refrigerator = ₹ 15,680 exclusive of GST, (GST is 12%). Gagan, a customer for this refrigerator, asks the trader to reduce the marked price of the refrigerator to such an extent that its reduced price plus GST on it is equal to marked price of the refrigerator. Find the required reduction.
Show Answer & Step-by-Step Solution⌄
Let the new M.P. of refrigerator be ₹ x.
According to question,
x + (12/100)x = 15,680 ⇒ (112/100)x = 15,680 ⇒ x = (15,680 × 100)/112 = ₹14,000.
Reduction in price = ₹ 15680 - ₹ 14000 = ₹ 1680.
Hence, the required reduction in price = ₹ 1680.
Test Yourself
A retailer purchased an item for ₹8,000 and sold it at 15% profit. The sale is intra-state and GST is 10%. Find the GST paid by the customer.
Show Answer & Step-by-Step Solution⌄
Given,
Cost price for retailer = ₹ 8000
Profit % = 15%
Selling price for retailer = C.P. + Profit
= ₹8,000 + (15/100) × ₹8,000
= ₹ 8000 + ₹ 1200
= ₹ 9200.
For intra -state transaction :
SGST rate = CGST rate = GST rate/2 = 10%/2 = 5%.
SGST = CGST = (5/100) × ₹9,200 = ₹460.
Total G.S.T. paid by customer = S.G.S.T. + C.G.S.T. = ₹ 460 + ₹ 460 = ₹ 920.
Hence, Option 2 is the correct option.
The cost of certain services is ₹ 10,000, excluding GST = ₹ 1800. The rate of GST is :
Show Answer & Step-by-Step Solution⌄
Given,
C.P. of articles = ₹ 10,000
We know that,
GST = (Rate of GST/100) × C.P.
Substituting values we get :
1,800 = (Rate of GST/100) × 10,000 ⇒ Rate of GST = (1,800 × 100)/10,000 = 18%.
Hence, Option 3 is the correct option.
Manu purchases some goods for ₹ 2000 and sells them for ₹ 2500. If the rate of GST is 18%, the tax liability on Manu is :
Show Answer & Step-by-Step Solution⌄
Given,
For Manu :
C.P. = ₹ 2000
S.P. = ₹ 2500
Tax paid by Manu = (18/100) × ₹2,000 = ₹360.
Tax charged by Manu = (18/100) × ₹2,500 = ₹450.
Tax liability on Manu = Tax charged - Tax paid = ₹ 450 - ₹ 360 = ₹ 90.
Hence, Option 3 is the correct option.
The SGST paid by a customer to the shopkeeper for an article which is priced at ₹ 500 is ₹ 15. The rate of GST charged is :
Show Answer & Step-by-Step Solution⌄
Price of an article = ₹ 500
SGST paid = ₹ 15
SGST rate = (15/500) × 100 = 3%.
CGST (%) = SGST (%) = 3%.
Total GST rate = CGST rate + SGST rate = 3% + 3% = 6%
The rate of GST charged is 6%.
Hence, Option 4 is the correct option.
Reena buys a certain goods for ₹ 4000 and sells them to Ashok at a profit of ₹ 500. If Ashok does not sell the goods further and rate of GST = 5%, the output GST for Ashok is :
Show Answer & Step-by-Step Solution⌄
Cost price for Reena = ₹ 4000
Input GST for Reena = (GST rate/100) × C.P. for Reena
= (5/100) × ₹4,000 = ₹200.
Profit made by Reena on selling = ₹ 500
Cost price for Ashok = S.P. for Reena = ₹ 4000 + ₹ 500 = ₹ 4500.
Output G.S.T. means GST charged on the sales made by a dealer.
Output GST for Reena = (GST rate/100) × S.P. for Reena
= (5/100) × ₹4,500 = ₹225.
This ₹225 is output GST for Reena and input GST for Ashok.
The question says that Ashok does not sell the goods further
Since Ashok makes no sale, he does not charge any GST to anyone.
So, his output GST = ₹0.
Hence, Option 4 is the correct option.
The marked price of an article is ₹ 1,000, which is available at a discount of 20% with GST rate 12%.
Show Answer & Step-by-Step Solution⌄
Option 1 is the correct option.
Reason
Given, MP = ₹ 1,000
Discount = 20%
GST = 12%
Discount = 20% of ₹ 1,000
= (20/100) × ₹1,000 = ₹200.
Price after discount = ₹ 1,000 - 200 = ₹ 800
GST on the discounted price = 12% of price after discount
= (12/100) × ₹800 = ₹96.
∴ Assertion (A) is true.
The GST on the transaction = (100 - 20 + 12)% of marked price
= 92% of marked price
= (92/100) × ₹1,000 = ₹920.
As, ₹ 96 ≠ ₹ 920
∴ Reason (R) is false.
Hence, A is true, R is false.
For a trader X, GST paid is ₹ 600 and GST collected is ₹ 720.
Reason (R): GST deposited with the Government
= Output Tax - Input tax
= GST collected - GST paid
Show Answer & Step-by-Step Solution⌄
Option 3 is the correct option.
Reason
Given,
Output tax = ₹720
Input tax = ₹600
Tax liability = Output tax - Input tax
= ₹ (720 - 600) = ₹ 120
Hence, Both A and R are true and R is the correct reason for A.
The invoice value of a toy is ₹ 4,220 and rate of GST is 5%.
Show Answer & Step-by-Step Solution⌄
Option 4 is the correct option.
Reason
Given,
Invoice value = ₹ 4,220
GST = 5%
According to statement 1, GST paid = 5% of ₹ 4,220
Invoice value includes the GST. Therefore, GST is not calculated on ₹ 4,220 directly.
So, statement 1 is false.
According to Statement (2), the taxable value of the toy = (100/105) × ₹4,220.
Let the taxable value of the toy be x.
Since, invoice value includes the GST,
Invoice value = x + 5% of x
= x + (5/100)x
= x + 0.05x
= 1.05x
Given, Invoice Value = ₹ 4,220, we have,
1.05x = 4,220 ⇒ x = (1/1.05) × 4,220 = (100/105) × 4,220.
∴ Taxable value of the toy = (100/105) × ₹4,220.
∴ Statement 2 is true.
Hence, statement 1 is false, and statement 2 is true.
A dealer in Indore (M.P.) sells goods worth ₹ 75,000 to a dealer in Jaipur (Rajasthan) and the rate of GST is 18%.
Show Answer & Step-by-Step Solution⌄
Statement (1) is false because in interstate transaction the rate of CGST = Nil.
Statement (2) is true because it is given that in an inter-state transaction, the GST rate is 18% of the whole transaction value.
Hence, Option 4 is the correct option.
Mrs. Sharma bought the following articles from a departmental store.
| Item | Marked price | Discount | Rate of GST |
|---|---|---|---|
| Face-cream | ₹350 | 12% | 12% |
| Hair oil | ₹720 | — | 5% |
| Talcum powder | ₹225 | 18% | 18% |
Find:
(i) total GST paid
(ii) total billing amount including GST.
Show Answer & Step-by-Step Solution⌄
By formula,
Discount = (Discount rate/100) × M.P.
Discounted price = M.P. - Discount
GST = (Rate of GST/100) × Discounted price.
| Item | Marked price | Discount | GST rate | Discount | Discounted price | GST |
|---|---|---|---|---|---|---|
| Face-cream | ₹350 | 12% | 12% | 12% of ₹350 = ₹42 | ₹308 | 12% of ₹308 = ₹36.96 |
| Hair oil | ₹720 | — | 5% | ₹0 | ₹720 | 5% of ₹720 = ₹36 |
| Talcum powder | ₹225 | 18% | 18% | 18% of ₹225 = ₹40.50 | ₹184.50 | 18% of ₹184.50 = ₹33.21 |
(i) From the table:
Total G.S.T. = ₹ 36.96 + ₹ 36 + ₹ 33.21 = ₹ 106.17
Hence, total GST paid = ₹ 106.17
(ii) From table,
Total discounted price = ₹ 308 + ₹ 720 + ₹ 184.5 = 1212.50
Total bill = Total Discounted price + Total GST = ₹ 1212.50 + ₹ 106.17 = ₹ 1318.67
Hence, total bill = ₹ 1318.67
Ashraf went to see a movie. He wanted to purchase a movie ticket for ₹ 80. As the ticket for ₹ 80 was not available, he purchased a ticket for ₹ 120 of upper class. How much extra GST did he pay for the ticket? (GST for a ticket below ₹ 100 is 18% and for a ticket above ₹ 100 is 28%).
Show Answer & Step-by-Step Solution⌄
GST on ₹80 ticket = (18/100) × ₹80 = ₹14.40.
GST on ₹120 ticket = (28/100) × ₹120 = ₹33.60.
Difference between GST = ₹ 33.60 - ₹ 14.40 = ₹ 19.20
Hence Ashraf paid ₹ 19.20 extra GST for the ticket.
A shopkeeper sells an AC to Ms. Alka for ₹ 31200 including GST at the rate of 28%. If the shopkeeper and Ms. Alka both are from the same city, find for the shopkeeper :
(i) total amount of GST
(ii) taxable value of A.C.
(iii) amount of CGST
(iv) amount of SGST
Show Answer & Step-by-Step Solution⌄
(i) Let S.P. of A.C. be x.
According to question,
x + (28/100)x = 31,200 ⇒ (128/100)x = 31,200 ⇒ x = (31,200 × 100)/128 = ₹24,375.
GST = S.P.(including GST) - S.P.(excluding GST) = ₹ 31200 - ₹ 24375 = ₹ 6825.
Hence, the total amount of GST = ₹ 6825.
(ii) From part (i) we get,
The taxable value of A.C. = ₹ 24375.
(iii) Given, GST = 28%.
∴ CGST = 14%.
(14/100) × ₹24,375 = ₹3,412.50.
Hence, CGST = ₹ 3412.50
(iv) Given, GST = 28%.
∴ SGST = 14%.
(14/100) × ₹24,375 = ₹3,412.50.
Hence, SGST = ₹ 3412.50
A wholesaler dealing in electric goods, sells an article at its printed price of ₹ 45,000 to a dealer at 10% discount. The dealer sells the same article to a consumer at a discount of 4% on its printed price. If the sales are intra-state and the rate of GST is 18%, find :
(i) the amount of tax, under GST, paid by the dealer to the central and state governments.
(ii) the amount of tax, under GST, received by central and state governments.
(iii) the total amount, inclusive of tax, paid by the consumer for the article.
Show Answer & Step-by-Step Solution⌄
For wholesaler :
Marked price = ₹ 45000
Discount = 10% of ₹45,000 = (10/100) × ₹45,000 = ₹4,500.
S.P. = M.P. - Discount = ₹ 45000 - ₹ 4500 = ₹ 40500.
For dealer :
C.P. = ₹ 40500
Discount = 4% of ₹45,000 = (4/100) × ₹45,000 = ₹1,800.
S.P. = M.P. - Discount = ₹ 45000 - ₹ 1800 = 43200.
(i) Tax paid by dealer under GST = Output tax - Input tax
= Tax on S.P. - Tax on C.P.
= 18% of 43200 - 18% of 40500
= (18/100) × ₹43,200 − (18/100) × ₹40,500
= ₹ (7776 - 7290)
= ₹ 486.
CGST = SGST = GST/2 = ₹486/2 = ₹243.
Hence, the tax paid by dealer to central government = ₹ 243 and to state government = ₹ 243.
(ii) GST charged to the consumer = 18% of ₹43,200 = (18/100) × ₹43,200 = ₹7,776.
∴ GST received by government = ₹ 7776
CGST = SGST = GST/2 = ₹7,776/2 = ₹3,888.
Hence, amount of tax received by central government = ₹ 3,888 and by state government = ₹ 3,888.
(iii) For consumer :
C.P. = S.P. for dealer = ₹ 43200
GST paid by the consumer = 18% of 43200 = ₹ 7776
∴ Total amount paid by consumer = ₹ 43200 + ₹ 7776 = ₹ 50976.
Hence, the total amount paid by consumer = ₹ 50976.
A retailer buys a T.V. from a manufacturer for ₹ 25000. He marks the price of the T.V. 20% above his cost price and sells it to a consumer at 10% discount on the, marked price. If the sales are inter-state and rate of GST is 12%, find :
(i) the marked price of the TV.
(ii) consumer's cost price of TV inclusive of tax under GST.
(iii) GST paid by the retailer to the Central and State Governments.
Show Answer & Step-by-Step Solution⌄
(i) Given,
Retailer marks the price of the T.V. 20% above his cost price
∴ M.P. = ₹ 25000 + 20% of ₹ 25000
= ₹25,000 + (20/100) × ₹25,000
= ₹ 25000 + ₹ 5000 = ₹ 30000.
Hence, the marked price of the TV = ₹ 30000.
(ii) M.P. = ₹ 30000
Discount = 10%
C.P. (without tax) = ₹ 30000 - 10% of ₹ 30000
= ₹ 30000 - ₹ 3000 = ₹ 27000.
GST paid by consumer = 12% of ₹27,000 = (12/100) × ₹27,000 = ₹3,240.
∴ Consumer's cost price of TV inclusive of tax = ₹ 27000 + ₹ 3240 = ₹ 30240.
Hence, consumer's cost price of TV inclusive of tax under GST = ₹ 30240.
(iii) For retailer :
Input tax = 12% of ₹25,000 = (12/100) × ₹25,000 = ₹3,000.
Output tax = 12% of ₹27,000 = (12/100) × ₹27,000 = ₹3,240.
GST paid by retailer = Output tax - Input tax = ₹ 3240 - ₹ 3000 = ₹ 240.
Hence, GST paid by the retailer to the Central Government = ₹ 240 and state government = ₹ 0.
A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ₹ 6,000. The dealer sells it to a consumer at a discount of 10% on the marked price. If the sales are intra-state and rate of GST is 5%, find :
(i) the total amount paid by the consumer for the article.
(ii) the tax under GST paid by the dealer to the state government.
(iii) the amount of tax under GST received by the central government.
Show Answer & Step-by-Step Solution⌄
(i) For consumer,
M.P. = ₹ 6000
Discount = 10%
C.P. = M.P. − 10% of M.P. = ₹6,000 − (10/100) × ₹6,000 = ₹5,400.
GST paid by consumer = 5% of ₹5,400 = (5/100) × ₹5,400 = ₹270.
Amount = ₹ 5400 + ₹ 270 = ₹ 5670.
Hence, the total amount paid by consumer for the article = ₹ 5670.
(ii) For dealer :
M.P. = ₹ 6000
Discount = 30%
C.P. = M.P. − 30% of M.P. = ₹6,000 − (30/100) × ₹6,000 = ₹4,200.
Input tax = 5% of ₹4,200 = (5/100) × ₹4,200 = ₹210.
Output tax = GST paid by consumer = ₹ 270
Tax paid by dealer = Output tax - Input tax = ₹ 270 - ₹ 210 = ₹ 60.
SGST = GST/2 = ₹60/2 = ₹30.
Hence, tax paid by dealer to state government = ₹ 30.
(iii) GST received by government = GST paid by consumer = ₹ 270.
CGST = GST/2 = ₹270/2 = ₹135.
Hence, amount of tax received by central government = ₹ 135.
A shopkeeper in Punjab buys an article at a printed price of ₹ 20,000 from a wholesaler in Delhi. The shopkeeper sells the article to a customer in Punjab at a profit of 25% on the cost price. If the rate of GST is 18%, find :
(i) the price of the article (inclusive of GST) for the shopkeeper.
(ii) the amount of tax under GST received, paid by the shopkeeper to the government.
Show Answer & Step-by-Step Solution⌄
(i) M.P. = ₹ 20,000
For shopkeeper,
Cost price = ₹ 20,000
GST = 18% of ₹20,000 = (18/100) × ₹20,000 = ₹3,600.
Price of article = ₹ 20,000 + ₹ 3,600 = ₹ 23,600.
Hence, the price of the article (inclusive of GST) for the shopkeeper is ₹ 23,600.
(ii) For consumer,
Cost price = ₹ 20,000 + 25% of ₹ 20,000
= ₹20,000 + (25/100) × ₹20,000
= ₹ 20,000 + ₹ 5000
= ₹ 25000.
GST paid by consumer = 18% of ₹ 25000
= (18/100) × ₹25,000
= ₹ 4500.
Output tax for shopkeeper = Tax paid by consumer = ₹ 4500.
Input tax for shopkeeper = ₹ 3600.
∴ Tax paid by shopkeeper to government = Output tax - Input tax = ₹ 4500 - ₹ 3600 = ₹ 900.
Hence, the amount of tax under GST paid by shopkeeper to government = ₹ 900.
A shopkeeper bought an A.C. from a distributor at a discount of 25% on the list price of ₹ 64,000. The shopkeeper sells the A.C. to a consumer at the list price. If the sales are intra-state and the rate of GST is 18%, then find :
(i) the S.P. of the A.C., including GST by the distributor.
(ii) the tax paid by the distributor to the State government.
(iii) the tax under GST paid by the shopkeeper to the Central government.
(iv) the tax under GST received by the state government.
(v) The price including tax under GST of the A.C. paid by the customer.
Show Answer & Step-by-Step Solution⌄
M.P. of A.C. = ₹ 64000
(i) For distributor
S.P. of A.C. (without GST) = ₹64,000 − 25% of ₹64,000 = ₹64,000 − (25/100) × ₹64,000 = ₹48,000.
GST = 18% of ₹48,000 = (18/100) × ₹48,000 = ₹8,640.
S.P. (with GST) = ₹ 48000 + ₹ 8640 = ₹ 56640.
Hence, the S.P. = ₹ 56640.
(ii) GST paid by distributor = ₹ 8640.
Tax paid by distributor to State Government = ₹8,640/2 = ₹4,320.
Hence, the tax paid by distributor to State government = ₹ 4320.
(iii) For shopkeeper :
C.P. = S.P. for distributor = ₹ 48000
Input tax = 18% of ₹48,000 = (18/100) × ₹48,000 = ₹8,640.
Output tax = Tax paid by consumer
C.P. for consumer = ₹ 64000
GST paid by consumer = 18% of ₹64,000 = (18/100) × ₹64,000 = ₹11,520.
Output tax = ₹ 11520.
Tax paid by shopkeeper under GST to government = Output tax - Input tax = ₹ 11520 - ₹ 8640 = ₹ 2880
CGST = GST/2 = ₹2,880/2 = ₹1,440.
Hence, the tax under GST paid by the shopkeeper to the Central government = ₹ 1440.
(iv) Tax received by state government = SGST paid by consumer
= GST paid by consumer/2
= ₹11,520/2 = ₹5,760.
Hence, the tax received by State government = ₹ 5760.
(v) The price including tax under GST of the A.C. paid by the customer
= C.P. for customer + GST paid by consumer
= ₹ 64000 + 18% of ₹ 64000
= ₹ 64000 + ₹ 11520
= ₹ 75520.
Hence, the price including tax under GST of the A.C. paid by the customer = ₹ 75520.
Jagmohan bought the following items (named A, B and C) as shown below:
| Item | M.P. (₹) | Discount | Quantity | GST |
|---|---|---|---|---|
| A | 800 | 20% | 15 | 5% |
| B | 1,500 | 30% | 20 | 12% |
| C | 30 | — | 20 | 18% |
Calculate:
(i) Total GST paid
(ii) Total bill amount
Show Answer & Step-by-Step Solution⌄
(i) For item A,
M.P. = ₹ 800
Discount = 20%
Quantity of item A purchased = 15
Discount = (20/100) × ₹800 = ₹160.
Selling price = 800 - 160 = ₹ 640
Total value = ₹ 640 × 15 = ₹ 9,600
GST = 5% of ₹ 9,600 = 0.05 × 9,600 = ₹ 480
Total amount paid for item A = ₹ 9,600 + ₹ 480 = ₹ 10,080
For item B,
M.P = ₹ 1,500
Discount = 30%
Quantity of item B purchased = 20
Discount = (30/100) × ₹1,500 = ₹450.
Selling price = 1500 - 450 = ₹ 1,050
Total value = ₹ 1,050 × 20 = ₹ 21,000
GST = 12% of ₹ 21,000 = 0.12 × 21,000 = ₹ 2,520
Total amount paid for item B = ₹ 21,000 + ₹ 2,520 = ₹ 23,520
For item C,
M.P = ₹ 30
Quantity of item C purchased = 20
Total value = ₹ 30 × 20 = ₹ 600
GST = 18% of ₹ 600 = 0.18 × 600 = ₹ 108
Total amount paid for item C = ₹ 600 + ₹ 108 = ₹ 708
Total GST paid: ₹ 480 + ₹ 2,520 + ₹ 108 = ₹ 3,108
Hence, total GST paid = ₹ 3,108.
(ii) Total bill amount: ₹ 10,080 + ₹ 23,520 + ₹ 708 = ₹ 34,308
Hence, total bill amount = ₹ 34,308.
The printed price of a machine is ₹ 90,000. The wholesaler allows a discount of 10% (on the printed price) to a shopkeeper. The shopkeeper sells this machine to a consumer at a discount of 5% on the printed price. The GST is charged at the rate of 12% at every stage. Find:
(i) GST paid by the shopkeeper.
(ii) The total amount paid by the customer.
Show Answer & Step-by-Step Solution⌄
(i) Marked price of machine = ₹ 90,000
GST rate = 12%
Given,
Wholesaler gives 10% discount on printed price = (10/100) × ₹90,000 = ₹9,000.
Price of machine after discount = ₹ 90,000 - ₹ 9,000 = ₹ 81,000
Now GST at 12% on ₹ 81,000
GST = (12/100) × ₹81,000 = ₹9,720.
Hence, GST paid by the shopkeeper = ₹ 9,720.
(ii) Discount given to customer = (5/100) × ₹90,000
= ₹ 4,500
Selling price = ₹ 90,000 − ₹ 4,500
= ₹ 85,500
GST charged to customer :
= (12/100) × ₹85,500
= ₹ 10,260
The total amount paid by the customer = ₹ 85,500 + ₹ 10,260 = ₹ 95,760.
Hence, total amount paid by the customer = ₹ 95,760.
Find the total amount of following bill.
Note:
(i) 20% discount is applicable, if 50 or more articles are purchased
(ii) 10% discount is applicable only if the number of articles purchased is 30 or more but less than 50.
(iii) 5% discount is applicable on the purchase of less than 30 articles.
GST on all the articles is 12%
| Article | M.P. (₹) | Number of articles |
|---|---|---|
| A | 500 | 80 |
| B | 400 | 50 |
| C | 200 | 40 |
| D | 150 | 20 |
Show Answer & Step-by-Step Solution⌄
Construct the table as under :
| Article | M.P. (₹) | Quantity | Total price (₹) | Discount (₹) | Price after discount (₹) |
|---|---|---|---|---|---|
| A | 500 | 80 | 40,000 | (20/100) × 40,000 = 8,000 | 32,000 |
| B | 400 | 50 | 20,000 | (20/100) × 20,000 = 4,000 | 16,000 |
| C | 200 | 40 | 8,000 | (10/100) × 8,000 = 800 | 7,200 |
| D | 150 | 20 | 3,000 | (5/100) × 3,000 = 150 | 2,850 |
| Total | 58,050 |
GST on all articles = (12/100) × ₹58,050 = ₹6,966.
Final bill amount = 58050 + 6966 = ₹ 65,016.
Hence, final bill amount = ₹ 65,016.
Case-Study Question
Case study: GST on residential flats
(i) Peter visited a site of a builder to purchase a flat for his residential purpose. At the site, he examined ready-to-move (completed flats) as well as under-construction flats.
All the flats were not of the same size.
(I) 2 BHK under-construction flats were to cost ₹ 45 lakhs or less (GST payable 1%)
(II) The bigger under-construction flats, (3 BHK or more) were to cost more than ₹ 45 lakhs (GST payable 3%)
(III) The completed, ready-to-move-in flats were available for purchase with GST exempted (GST 0%)
Using the above information, find GST on :
1. an under-construction flat with cost
(a) ₹ 40,20,000
(b) ₹ 79,32,000
2. a completed (ready-to-move-in) flat with cost ₹ 89,00,000
(ii) Peter decided to purchase an under-construction flat costing ₹ 96,84,000. After bargaining, the builder offered a discount of ₹ 4,50,000.
How much will Peter pay if he purchases that flat?
Show Answer & Step-by-Step Solution⌄
(i)
1. (a) An under-construction flat with cost ₹ 40,20,000.
Since ₹ 40,20,000 < ₹45 lakh
GST = 1%
GST = (1/100) × ₹40,20,000 = ₹40,200.
Hence, GST on an under-construction flat with cost ₹ 40,20,000 is ₹ 40,200.
(b) An under-construction flat with cost ₹ 79,32,000.
Since ₹ 79,32,000 > ₹45 lakh
GST = 3%
GST = (3/100) × ₹79,32,000 = ₹2,37,960.
Hence, GST on an under-construction flat with cost ₹ 79,32,000 is ₹ 2,37,960.
2. Completed flat cost = ₹ 89,00,000
Completed flats have GST = 0%
Hence, GST on completed flats with cost ₹ 89,00,000 = ₹ 0.
(ii) Cost of an under-construction flat = ₹ 96,84,000
Discount offered = ₹ 4,50,000
Price after discount = ₹ 96,84,000 - ₹ 4,50,000 = ₹ 92,34,000
Since ₹ 92,34,000 > ₹45 lakh
GST = 3%
GST = (3/100) × ₹92,34,000 = ₹2,77,020.
Final amount to be paid = ₹ 92,34,000 + ₹ 2,77,020 = ₹ 95,11,020
Hence, final amount to be paid = ₹ 95,11,020.
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What is GST in Class 10 Mathematics?
GST is a tax added to the taxable value of goods or services. Class 10 questions commonly involve discounts, taxable value, CGST, SGST, IGST, input tax and output tax.
Is GST calculated before or after discount?
GST is calculated on the price after the permitted discount has been deducted from the marked price.
How are CGST and SGST calculated?
For an intra-state transaction, the GST rate is divided equally between CGST and SGST.
When is IGST charged?
IGST is charged on an inter-state transaction, where goods or services move from one state to another.
What is input tax credit?
Input tax credit is the GST already paid on a purchase that may be adjusted against the GST collected on a sale.
How is net GST liability calculated?
Net GST liability equals output tax minus eligible input tax credit.