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Question: Prasad purchased a washing machine from Maharashtra Electronic Goods. The discount of \[5\% \] was g...

Prasad purchased a washing machine from Maharashtra Electronic Goods. The discount of 5%5\% was given on the printed price of Rs40,000Rs40,000 Rate of GST charged was28%28\% . What will be the purchase price of the washing machine? Also find the amount of CGST and SGST shown in the tax invoice.

Explanation

Solution

For solving this question we will firstly calculate price after calculating 5%5\% of the given selling price. We will get the discounted price. It will be calculated by subtracting 5%5\% of the cost with Rs40,000Rs40,000. Then lastly 28%28\% of less SP will be calculated then for getting the final GST amount will be subtracted from the original price.

Formula used:
The formula used to calculate the purchase price is
Taxable value of washing machine + Amount of GST on washing machine {\text{Taxable value of washing machine + Amount of GST on washing machine }}
While for calculating Amount of CGST and SGST the formula used is
12×Amount of GST on product \dfrac{1}{2} \times {\text{Amount of GST on product }}

Complete step by step answer:
Since we know that the printed price on the washing machine is Rs40,000Rs40,000
The discount offered on washing machine is 5%5\% of Rs40,000Rs40,000 which means
5100×40,000=Rs2,000\dfrac{5}{{100}} \times 40,000 = Rs2,000
So now as per calculations taxable value on washing machine will be Rs40,000−Rs2,000=Rs38,000Rs40,000 - Rs2,000 = Rs38,000
Now as we know that rate of GST charged was 28%28\%
So amount of GST on washing machine will be 28%28\% of Rs38,000Rs38,000
28100×38,000=Rs10,640\dfrac{{28}}{{100}} \times 38,000 = Rs10,640
Therefore we can calculate the purchasing price by adding taxable value of washing machine and amount of GST on washing machine
Rs38,000+Rs10,640=Rs48,640Rs38,000 + Rs10,640 = Rs48,640
As we know that amount of CGST=SGSTCGST = SGST

⇒12×Amount of GST on washing machine ⇒12×10,640 ⇒Rs 5,320  \Rightarrow \dfrac{1}{2} \times {\text{Amount of GST on washing machine}} \\\ \Rightarrow \dfrac{1}{2} \times 10,640 \\\ \Rightarrow Rs{\text{ }}5,320 \\\

It means that the amount of CGST is Rs 5,320Rs{\text{ }}5,320 and amount of SGST is Rs 5,320Rs{\text{ }}5,320 in the tax invoice.

Note: Remember that amount of SGST is equal to CGST which means CGST=SGSTCGST = SGST
We should not get confused between the marked and selling price. The price marked by the seller on the product is marked price while the price after discount on which the product has been sold by seller is selling price. To calculate GST on products we can also add the CGST and SGST. This means that
5,320+5,320=10,6405,320 + 5,320 = 10,640 so the amount of GST on washing machine is Rs 10,640{\text{Rs 10,640}}