Exercise : Chapter 1 GST Exercise 1B MCQ Questions and Answers
1.
Fill in the blanks :
When the goods/services are sold for Rs. 15,000 under intra-state transaction from station A to station B and the rate of GST is 12%.
As per GST System
S.P. at station A =___________
CGST = 6% of 15,000 =___________
SGST = 6% of 15,000 =___________
C.P. at station B =___________
If profit = Rs. 5000
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%.
GST =___________
C.P. at station C =___________
Solution :
When the goods/services are sold for Rs. 15,000 under intra-state transaction from station A to station B and the rate of GST is 12%.
As per GST System
S.P. at station A = Rs. 15,000
CGST = 6% of 15,000 = Rs. 900
SGST = 6% of 15,000 = Rs. 900
C.P. at station B = Rs. 15,000
If profit = Rs. 5000
S.P. at station B = 15,000 + 5000
= Rs. 20,000
Now the same goods/services are moved under inter-state transaction from station B to station C and the b rate of tax is 12%.
GST = 12% of 20,000
= Rs. 2400
C.P. at station C = Rs. 20,000
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2.
Goods/services are sold from Agra (U.P.) to Kanpur (U.P.) for Rs. 20,000 and then from Kanpur to Jaipur (Rajasthan). If the rate of GST is 18% and the profit made at Kanpur is Rs. 5000, find:
the net GST payable by the dealer at Kanpur.
the cost of goods/services at Jaipur.
Solution :
When the product is sold from Agra to Kanpur (intra-state transaction)
For the dealer in Agra :
S. P. in Agra = Rs. 20,000
CGST = 9% of Rs. 20,000 = (9/100) × 20,000 = 1800
SGST = 9% of Rs. 20,000 = (9/100) × 20,000 = 1800
When product is sold from Kanpur to Jaipur (inter-state transaction)
For the dealer in Kanpur
Input-tax credit = 1800 + 1800 = Rs. 3600
C. P. = Rs. 20,000 and Profit = Rs. 5000
S.P. = 20,000 + 5000 = Rs. 25,000
IGST = 18% of 25,000 = Rs. 4500
Net GST paid by the dealer at Kanpur
= Output GST – Input GST
= 4500 – 3600
= Rs. 900
The cost of goods/services at Jaipur
= S. P. in Agra + IGST
= 25,000 + 18% of 25000
= 25,000 + 4500
= Rs. 29,500
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3. Goods/services are sold from Kota (Rajasthan) to Mumbai for Rs. 20,000 and then from Mumbai to Pune. If the rate of GST is 12% and the profit made at Mumbai is Rs. 5000; find the net GST paid at Pune, if the dealer at Pune is the end-user.
Solution :
For the dealer in Mumbai (inter-state transaction)
CP = Rs. 20,000
IGST = 12% of Rs. 20,000 = (12/100) × 20,000 = Rs. 2400
Profit = Rs. 5000
SP = Rs. 25,000
For the dealer in Pune (intra-state transaction)
CP = Rs. 25,000
CGST = 6% of 25,000 = Rs. 1500
SGST = 6% of 25,000 = Rs. 1500
GST payable by the end user at Pune = 1500 + 1500= Rs. 3000
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4. A is a dealer in Banaras (U.P.). he supplies goods/services worth Rs. 8000 to a dealer B in Agra (U.P.). Dealer B, in turn, supplies the same goods/services to dealer C in Patna (Bihar) at a profit of Rs. 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 sell his goods/services further.
Solution :
For the dealer A (intra-state transaction)
SP= Rs. 8,000
For the dealer B (intra-state transaction)
CP = Rs. 8,000
CGST = 9% of 8,000 = Rs. 720
SGST = 9% of 8,000 = Rs. 720
Profit = Rs. 1,200
SP = Rs. 9,200
For the dealer C (inter-state transaction)
CP = Rs. 9,200
IGST = 18 % of Rs. 9,200 = (18/100) × 9,200 = Rs. 1656
Input Tax = Rs. 1,656
Since, the dealer in Patna does not sell the product.
Output GST (tax on sale) = Rs. 0
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5.
A is a dealer in Meerut (U.P.). He supplies goods/services, worth Rs. 15,000 to a dealer B in Ratlam (M.P.). Dealer B, in turn, supplies the same goods/services to dealer C in Jabalpur (M.P.) at a profit of Rs. 3000. If rate of tax (under GST system) is 18%, find
The cost of goods/services to the dealer C in Jabalpur.
Net tax payable by dealer B.
Solution :
For A (case of inter-state transaction)
S.P. in Meerut = Rs. 15,000
For B (case of inter-state transaction)
C.P. = Rs. 15,000
IGST = 18% of 15,000 = (18/100) × 15,000 = Rs. 2700
Output tax for B = Rs. 2,700
C.P. in Ratlam = Rs. 2700 and profit = Rs. 3000
S.P. in Ratlam = 15,000 + 3000 = Rs. 18,000
Output tax for B =
For C (case of intra-state transaction)
C.P. = Rs. 18,000
CGST = 9% of 18,000 = (9/100) × 18,000 = Rs. 1620
SGST = (9/100) × 18,000 = Rs. 1620
Net GST payable by the dealer B
= Output tax – Input tax
= 1620 + 1620 – 2700
= Rs. 540
C.P. for the dealer C in Jabalpur
= S.P. for the dealer in Ratlam + GST
= 18,000 + 1620 + 1620
= Rs. 21,240
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6.
A dealer X in Hapur (U.P.) supplies goods/services, worth Rs. 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 Rs. 20,000. Find
Output and input taxes for the dealer Y
Net GST payable by dealer Y.
The rate of GST at each stage is 28%
Solution :
For the dealer X (intra-state transaction)
SP= Rs. 50,000
For the dealer Y (intra-state transaction)
CP = Rs. 50,000
CGST = 14% of 50,000= Rs. 7,000
SGST = 14% of 50,000= Rs. 7,000
Input tax for dealer Y = Rs. 14,000
Profit = Rs. 20,000
SP = Rs. 70,000
For the dealer Z (inter-state transaction)
CP = Rs. 70,000
IGST = 28 % of Rs. 70,000 = (28/100) × 70,000 = Rs. 19,600
∴ Input Tax = Rs. 19,600 which is the output tax for dealer Y.
Net GST payable for Y
= Output tax for Y – Input tax for Y
= 19,600 – 14,000
= Rs. 5600
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7.
Consultancy services, worth Rs. 50,000, are transferred from Delhi to Calcutta at the rate of GST 18% and then from Calcutta to Nainital (with profit = Rs. 20,000) at the same rate of GST. Find the output tax at
Delhi
Calcutta
Nainital
Solution :
Output tax in Delhi (interstate) :
IGST = 9% of 50,000 = Rs. 9000
Output tax in Delhi = Rs. 9000
Output tax in Calcutta :
C.P. in Calcutta = Rs. 50,000 and Profit
= Rs. 20,000
S.P. in Calcutta = 50,000 + 20,000
= Rs. 70,000
IGST = 18% of 70,000 = Rs. 12,600
Output tax in Calcutta = Rs. 12,600
Since, the dealer in Nainital does not sell the product.
Output GST (tax on sale) = Rs. 0
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8. For a dealer A, the list price of an article is Rs. 9000, which he sells to dealer B at some lower price. Further, dealer B sells the same article to a customer at its list price. If the rate of GST is 18% and dealer B paid a tax, under GST, equal to Rs. 324 to the government, find the amount (inclusive of GST) paid by dealer B.
Solution :
Let A sells to dealer B at Rs. x lower price.
According to the question,
Net Tax paid by dealer B is
⇒ Out put tax – Input Tax = Rs. 324
⇒ 18% of 9000 – 18% of (9000 – x) = 324
⇒ 1620 – 1620 + 18% of x = 324
⇒ 18% of x = 324
⇒ x= 1800
Hence, selling price of B = 9000 – 1800 = Rs. 7200
The amount (inclusive of GST) paid by dealer B
= 7200 + 18% of 7200
= 7200 + 1296
= Rs. 8496
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9. The marked price of an article is Rs. 6000. A wholesaler sells it to a dealer at 20% discount. The dealer further sells the article to a customer at a discount of 10% on the marked price. If the rate of GST at each stage is 18%, find the amount of tax (under GST) paid by the dealer to the government.
Solution :
Initial marked price by manufacturer A is Rs. 6000
B bought the T.V. at a discount of 20%.
Cost price of B = 80% of 6000 = Rs. 4800 --------------(i)
GST paid by B for purchase = 18% of 4800 = Rs. 864 --------------(ii)
B sells T.V. at discount of 10% of market Price
Selling price for B = 6000 – 10% of 6000 = Rs. 5400 …(iii)
GST charged by B on selling of T.V. = 18% of 5400 = Rs. 972 …(iv)
GST paid by B to the government
= GST charged on selling price – GST paid against purchase price
= 972 – 864
= Rs. 108
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10. A is a manufacturer of T.V. sets in Delhi. He manufacturers a particular brand of T.V. set and marks it at Rs. 75,000. He then sells this T.V. set to a wholesaler B in Punjab at a discount of 30%. The wholesaler B raises the marked price of the T.V. set bought by 30% and then sells it to dealer C in Delhi. If the rate of GST = 5% find tax (under GST) paid by wholesaler B to the government.
Solution :
Initial marked price by manufacturer A is Rs. 75,000
B bought the T.V. at a discount of 30%.
Cost price of B = 70% of 75,000 = Rs. 52,500 --------------(i)
GST paid by B for purchase = 5% of 52,500 = Rs. 2625 --------------(ii)
B sells T.V. by increasing marked price by 30%.
Selling price for B = 75,000 + 30% of 75,000 = Rs. 97,500 …(iii)
GST charged by B on selling of T.V. = 5% of 97,500
= Rs. 4875 …(iv)
GST paid by B to the government
= GST charged on selling price – GST paid against purchase price
= 4875 – 2625
= Rs. 2250
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11. For a trader, marked price of a refrigerator = Rs. 15,680 inclusive of GST at the rate of 12% on the marked price. Gagan, a customer for this refrigerator, asks the trader to reduce the marked price of the refrigerator to such extend that its reduced price plus GST on it is equal to marked price of the refrigerator. Find the required reduction.
Solution :
Let the marked price be Rs. x.
x + 12% of x = 15,680
1.12x = 15,680
x = Rs. 14,000
Initial marked price = Rs. 14,000
Let Gagan asked for priced reduction of Rs. y.
New price = 14,000 – y
GST on new price = 12% of (14,000 – y)
According to the question,
14,000 – y + 0.12(14,000 – y) = 14,000
-1.12y + 1680 = 0
y = 1500
Required reduction in price is Rs. 1500.
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