A manufacturer sells a clock a 5000rupees to a wholesaler. The wholesaler sells it to a retailer and the retailer sells it to a consumer. Gst charged is 18% and profit made at each stage is 100 rupees. If the sales are intra-state calculate
1) the tax paid by the wholesaler to the state government
2) the tax paid by the retailer to the state government
3) the total gst collected by the central government on the sale of the clock

Given:

Marked price of the item, MRP=Rs\ 5000

cost price of the article for the whole-seller, CP_w=75\%\ of\ MRP=Rs\ 3750

cost price of the article for the retailer, CP_r=85\%\ of\ MRP=Rs\ 4250

selling price of the article by the retailer, SP_r=MRP=Rs\ 5000

GST on the article, GST=18\% (included in MRP)

i)

Since the MRP of any article is inclusive of all the taxes therefore the the maximum price that can be paid by a customer is MRP which is inclusive of all the taxes. =Rs\ 5000

ii)

Since the GST is intra-state therefore half of the GST is shared with the state govt. and the other half with the central govt.

SGST=9\% included in MRP

GST=18\% of\ 5000

GST=Rs\ 900

So,

SGST=Rs\ 450

iii)

CGST=9\%\ of\ MRP

Since the GST is intra-state therefore half of the GST is shared with the state govt. and the other half with the central govt.

CGST=Rs\ 450