The cost of an article is Rs 6000 to a distributor. He sells it to a trader for Rs 7500 and the trader sells it to the customer for Rs 8000. If the rate of GST is 12.5%, find
i. the CGST and the SGST payable by the Trader to the government.
ii. Total amount paid by the customer for the article
i. the CGST and the SGST payable by the Trader to the government.
ii. Total amount paid by the customer for the article
Answers & Comments
Answer:
Distributer
Output tax=12.5% of 7500=
100
12.5
×7500=Rs.937.50
Input tax=12.5 % of 6000=
100
12.5
×6000=rs.750
VAT=output tax-input tax
VAT=937.50−750=Rs.187.5
(2)Trader
Output tax=12.5% of 8000=
100
12.5
×8000=Rs.1000
Input tax=12.5% of 7500=
100
12.5
×7500=937.50
VAT=1000−937.50=Rs.62.5
Step-by-step explanation:
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