There are three dealers A,B and C in Maharashtra. Suppose, the trade of each of them in september 2018 was as shown in the following table. The rate of GST on each transaction was 5%. Read the table and answer the questions below it . (i) What was the total amount of sale of the articles by the dealer A ? (ii) For how much amount did the dealer B buy the articles ? (iii) How much is the balance of CGST and SGST left with the government that was paid by A ?

Explanation

Rate of GST was 5% ltBrgt GST collected on the sale
`=` The rate of GST `xx` The taxable value of the articles
GST collected by the dealer A is Rupees 5000.
Let the amount of sale of taxable value be Rupees x .
Then `5000 = ( 5)/( 100 ) xx x ` `:. x = ( 5000 xx 100)/( 5)` `:. x = 100000`.
(i) Rupees 100000
GST paid at the time of purchase
`=` The rate of GST `xx` The taxable value of the articles.
Let the dealer B bought the articles of value Rupees y
Then` 4000= ( 5)/( 100) xx y ` `:. y = ( 4000 xx 100)/( 5)` `:. y = 80000`
(ii) The dealer B bought the articles of taxable value Rupees 80000.
GST to be paid to the Govt. is Rupees 1000.
CGST = SGST = `(1)/( 2) xx GST`
`:.` CGST = SGST `= (1)/(2) xx 1000 = Rupees 500`
(iii) CGST = SGST = `Rupees 500` was paid by dealer A.