Problems & Solutions – Indirect Tax
Question 1
For the following transaction within Delhi, fill in the blanks to find the amount of bill :
MRP = Rs. 12,000, Discount % = 30%, GST = 18%
Discount =
Selling price (discounted value) =
CGST =
SGST =
IGST =
Amount of Bill
Solution 1
MRP = Rs. 12,000, Discount % = 30%, GST = 18%
Discount = 30% of 12,000 =
Selling price (discounted value) = 12000 - 3600 = Rs. 8400
CGST = 9% of 8400 = Rs. 756
SGST = 9% of 8400 = Rs. 756
IGST = 0
Amount of Bill = Selling price + CGST + SGST = 8400 + 756 + 756 = Rs. 9912
Question 2
For the following transaction from Delhi to Jaipur, fill in the blanks to find the amount of bill :
MRP = Rs. 50,000, Discount % = 20%, GST = 28%
Discount =
Selling price (discounted value) =
CGST =
SGST =
IGST =
Amount of Bill =
Solution 2
MRP = Rs. 50,000, Discount % = 20%, GST = 28%
Discount = 20% of 50,000 =
Selling price (discounted value) = 50,000 - 10,000 = Rs. 40,000
CGST = 0
SGST = 0
IGST = 28% of 40,000 =
Amount of Bill = Selling price + IGST = 40,000 + 11,200 = Rs. 51,200
Question 3
A computer mechanic in Delhi charges repairing cost from five different persons A, B, C, D and E
with certain discounts. The repairing costs and the corresponding discounts are as given below :
Name of the A B C D E
person
Repairing cost 5500 6250 4800 7200 3500
(in Rs.)
Discount % 30 40 30 20 40
If the rate of GST is 18%, find the total money (including GST) received by the mechanic.
Solution 3
Name of the Repairing Discount Discount Selling CGST SGST (9%)
person cost (in % price (9%)
Rs.)
A 5500 30 1650 3850 346.5 346.5
B 6250 40 2500 3750 337.5 337.5
C 4800 30 1440 3360 302.4 302.4
D 7200 20 1440 5760 518.4 518.4
E 3500 40 1400 2100 189 189
Total 18,820 1693.8 1693.8
The total money (including GST) received by the mechanic is 18,820 + 1693.8 + 1693.8 = Rs.
22,207.6
Question 4
Find the amount of bill for the following intra-state transaction of goods/services. The GST rate is
5%.
Quantity (no. of items) MRP of each item (in Discount %
Rs.)
18 150 10
24 240 20
30 100 30
12 120 20
Solution 4
Quantity MRP Total Discount % Discounted Selling price CGST SGST 2.5%
MRP price 2.5%
18 150 2700 10 270 2430 60.75 60.75
24 240 5760 20 1152 4608 115.2 115.2
30 100 3000 30 900 2100 52.5 52.5
12 120 1440 20 288 1152 28.8 28.8
Total 10,290 257.25 257.25
Amount of bill = Selling price + GST
= 10,290 + 257.25 + 257.25
= Rs. 10,804.5
Question 5
Find the amount of bill for the following inter-state transaction of goods/services. The GST rate is
18%.
Quantity (no. of 35 47 20
items)
MRP of each 420 600 350
item (in Rs.)
Discount % 10 10 20
Solution 5
Amount of bill = Selling price + IGST
= 44,210 + 7961.76
= Rs. 52,167.8
Question 6
Find the amount of bill for the following intra-state transaction of goods/services.
MRP (in Rs.) 12,000 15,000 9500 18,000
Discount % 30 20 30 40
CGST % 6 9 14 2.5
Solution 6
MRP (in Rs.) Discount CGST % Discounted value Selling price CGST SGST
%
12,000 30 6 3600 8400 504 504
15,000 20 9 3000 12,000 1080 1080
9500 30 14 2850 6650 931 931
18,000 40 2.5 7200 10,800 270 270
37,850 2785 2785
Amount of bill = Selling price + CGST + SGST
= 37,850 + 2785 + 2785 = Rs. 43,420
Question 7
Find the amount of bill for the following inter-state transaction of goods/services.
MRP (in Rs.) 12,000 15,000 9500 18,000
Discount % 30 20 30 40
CGST % 6 9 14 2.5
Solution 7
MRP (in Rs. ) Discount Discounted value Selling price IGST IGST
12,000 30 3600 8400 12 1008
15,000 20 3000 12,000 18 2160
9500 30 2850 6650 28 1862
18,000 40 7200 10,800 5 540
37,850 5570
Amount of bill = Selling price + GST
= 37,850 + 5570
= Rs. 43,420
Question 8
A dealer in Mumbai supplied an item at the following prices to a dealer in Delhi. Find the total
amount of the bill.
Rate per piece Quantity (no. of Discount % SGST %
(in Rs.) pieces)
180 10 Net 9
260 20 20 9
310 30 Net 9
175 20 30 9
Solution 8
Rate per piece (in Quantity (no. of Discount % MRP Selling price IGST @18%
Rs.) pieces)
180 10 Net 1800 1800 324
260 20 20 5200 4160 748.8
310 30 Net 9300 9300 1674
175 20 30 3500 2450 441
17,710 3187.8
Amount of bill = Selling price + IGST
= 17,710 + 3187.8
= Rs. 20,897.8
Question 9
National Trading Company, Meerut (UP) made the supply of the following goods/services to
Samarth Traders, Noida (UP). Find the total amount of bill if the rate of GST = 12%
Quantity 20 30 12 40
(no. of
pieces)
MRP (in Rs. 225 320 300 250
per piece)
Discount % 40 30 50 40
Solution 9
MRP (in Rs. per Quantity (no. of Discount % MRP Selling price SGST @ 6% CGST @ 6%
piece) pieces)
225 20 40 4500 2700 162 162
320 30 30 9600 6720 403.2 403.2
300 12 50 3600 1800 108 108
250 40 40 10,000 6000 360 360
17,220 1033.2 1033.2
Amount of bill = Selling price + SGST + CGST
= 17,220 + 2066.4
= Rs. 19,286.4
Question 10
M/s Ram Traders, Delhi, provided the following services to M/s Geeta Trading Company in Agra
(UP). Find the amount of bill :
Number of 8 12 10 16
services
Cost of each 680 320 260 420
service (in
Rs.)
GST % 5 12 18 12
Solution 10
Number of services Cost of each service GST % MRP IGST
(in Rs.)
8 680 5 5440 272
12 320 12 3840 460.8
10 260 18 2600 468
16 420 12 6720 806.4
18,600 2007.2
Amount of bill = Selling price + IGST
= 18,600 + 2007.2
= Rs. 20,607.2
Question 11
For the following, find the amount of bill data :
Rate per piece Number of Discount % GST%
(in Rs.) pieces
18 360 10 12
12 480 20 18
12 120 5 12
28 150 20 28
Solution 11
Rate per Number of Discount % MRP (in Rs.) Selling price GST % GST (in Rs.)
piece (in Rs.) pieces (in Rs.)
18 360 10 6480 5832 12 699.84
12 480 20 5760 4608 18 829.44
12 120 5 1440 1368 12 164.16
28 150 20 4200 3360 28 940.8
15,168 2634.24
Amount of bill = Selling price + GST
= 15,168 + 2634.24
= Rs. 17,802.24
Question 12
The tax invoice of a telecom service in Meerut shows cost of services provided by it as Rs. 750. If
the GST rate is 18%, find the amount of the bill.
Solution 12
According to the question,
GST = 18% of 750
=
The amount of bill = 750 + 135 = Rs. 885
Question 13
Mr. Pankaj took Health Insurance Policy for his family and paid Rs. 900 as SGST. Find the total
annual premium paid by him for this policy, rate of GST being 18%.
Solution 13
Let the total annual premium paid by Mr. Pankaj be Rs. x. According to the question, 18% of x =
SGST + CGST 18% of x = 1800 SGST = CGST x = Rs. 10,000
Question 14
Mr. Malik went on a tour to Goa. He took a room in a hotel for two days at the rate of Rs. 5000 per
day. On the same day, his friend John also joined him. Hotel provided an extra bed charging Rs.
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?
Solution 14
According to the question,
The amount of bill = 5000 × 2 + 1000 + 1000
= 10,000 + 2000
= Rs. 12,000
GST = 28% of 12,000
=
GST charged by Mr. Malik Rs. 3360.
Question 15
Asharaf went to see a movie. He wanted to purchase a movie ticket for Rs. 80. As the ticket for Rs.
80 was not available, he purchased a ticket for Rs. 120 of upper class. How much extra GST did he
pay for the ticket? (GST for a ticket below Rs. 100 is 18% and GST for a ticket above Rs. 100 is
28%)
Solution 15
According to the question,
GST on ticket of Rs. 80 = 18% of 80 =
GST on ticket of Rs. 120 = 28% of 120 =
Difference between both GST = 33.60 - 14.40 = Rs. 19.20
Chapter 1 - GST [Goods and Services Tax] Exercise Ex.
1(B)
Question 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
a. S.P. at station A =
b. CGST = 6% of 15,000 =
SGST = 6% of 15,000 =
c. C.P. at station B =
d. 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%.
e. GST =
f. C.P. at station C =
Solution 1
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
a. S.P. at station A = Rs. 15,000
b. CGST = 6% of 15,000 = Rs. 900
SGST = 6% of 15,000 = Rs. 900
c. C.P. at station B = Rs. 15,000
d. 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%.
e. GST = 12% of 20,000 = Rs. 2400
f. C.P. at station C = Rs. 20,000
Question 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:
i. the net GST payable by the dealer at Kanpur.
ii. the cost of goods/services at Jaipur.
Solution 2
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 =
SGST = 9% of Rs. 20,000 =
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
i. Net GST paid by the dealer at Kanpur
= Output GST - Input GST
= 4500 - 3600
= Rs. 900
ii. The cost of goods/services at Jaipur
= S. P. in Agra + IGST
= 25,000 + 18% of 25000
= 25,000 + 4500
= Rs. 29,500
Question 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 3
For the dealer in Mumbai (inter-state transaction)
CP = Rs. 20,000
IGST = 12% of Rs. 20,000 =
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
Question 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 4
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 =
Input Tax = Rs. 1,656
Since, the dealer in Patna does not sell the product.
Output GST (tax on sale) = Rs. 0
Question 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
i. The cost of goods/services to the dealer C in Jabalpur.
ii. Net tax payable by dealer B.
Solution 5
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 =
Input tax for B = Rs. 2,700
S.P. in Ratlam = 15,000 + 3000 = Rs. 18,000
For C (case of intra-state transaction)
C.P.= Rs. 18,000
CGST = 9% of 18,000 =
SGST =
Out put tax for B = Rs. 1620 + Rs. 1620 = Rs. 3240
Net GST payable by the dealer B
= Output tax - Input tax
= 1620 + 1620 - 2700
= Rs. 540
Cost for the dealer C in Jabalpur
= S.P. for the dealer in Ratlam + GST
= 18,000 + 1620 + 1620
= Rs. 21,240
Question 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
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%
Solution 6
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 =
∴ 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
Question 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
i. Delhi
ii. Calcutta
iii. Nainital
Solution 7
i. Output tax in Delhi (interstate) :
IGST = 9% of 50,000 = Rs. 9000
Output tax in Delhi = Rs. 9000
ii. 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
iii. Since, the dealer in Nainital does not sell the product.
Output GST (tax on sale) = Rs. 0
Question 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 8
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
Question 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 9
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
Question 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 10
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
Question 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 11
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.
