ICSE ml aggarwal class 10 solutions chapter 1Goods and service tax (GST)

Exercise 1: 

1. A  Manufacturer sells a television to a dealer for rupees 18000 and a dealer sells it to a consumer at a profit of rupees 1500. If the sales are interested in the rate of GST is 12% find: 

I. The amount of GST paid by the dealer to the state government.

ii. The amount of GST received by the central government.

iii. The amount of GST received by the state government.

iv. The amount that the consumer page for the TV.

Solutions: 

As the sales are intra- state, the rate of GST is 12%, GST comprises of cgst 6% and sgst is 6%.

Manufacturer sells the television to dealer for rupees 18000, amount of GST collected by manufacturers from dealer is- 

  CGST=6%of rupees 18000= rupees 1080

   SGST= 6% of rupees 18000 = rupees 1080

Therefore, the amount of input GST of dealer : 

Input cgst=1080 rupees

Input sgst= 1080 rupees

The dealer sells the TV to a consumer at a profit of rupees 1500 the selling price of TV by dealer is = rupees 18000 + 1500 = rupees 19500

The amount of GST collected by dealer: 

Cgst = 6% of 19500= rupees 1170

Sgst= 6% of rupees 19500 =rupees 1170

Therefore amount of output GST of dealer: 

Output cgst = rupees 1170 and output Sgst = rupees 1170

I. The amount of tax paid by dealer to state government

= Sgst paid by dealer to the state government

= Output sgst - input sgst

= Rupees 1170 - 1080 rupees = rupees 90

ii . Amount of tax paid by dealer is =  rupees 90

The amount of tax received by central government

= Cgst paid by manufacturer + CGST paid by dealer

= Rs. 1080 + rupees 90 =rupees 1170

iii  the amount of cash received by State government

= Sgst paid by manufacturer + SGST paid by dealer

= RS. 1080+ RS. 90 = RS. 1,170

iv. The amount paid by consumer for TV

= Cost price of TV + GST paid by consumer

=RS. 19500 + 1170 + 1170

=RS.  21840