Question

‘Tiptop Electronics’ supplied an AC of $1.5$ ton to a company. Cost of the AC supplied is Rs. $51,200$(with GST). Rate of CGST on AC is $14\%$. Then find the following amounts as shown in the tax invoice of Tiptop Electronics.
(1) Rate of SGST
(2) Rate of GST on AC
(3) Taxable value of AC
(4) Total amount of GST
(5) Amount of CGST
(6) Amount of SGST

Answer 1

In the problem we have to find the several amounts, so we will calculate them individually. The first one is to calculate the SGST, we know that the rate of CGST on a product is equal to the rate of SGST on the product. The second one is to calculate the rate of GST which is sum of the rate of CGST and the SGST on the product, from this we can calculate the GST. Third one is the Taxable value of the AC which is the difference of the Cost of the AC and the Amount of GST, by knowing the rate of GST, we will simply calculate the Amount of GST further we can simply calculate the Taxable Value. Fourth one is the Amount of GST, in the third case it self we can have an equation for the Amount of GST by using those equation we will calculate the Amount of GST. Fifth and sixth one is Amount of CGST, by knowing the Rate of CGST, SGST and the Taxable value we can calculate the value of CGST and SGST.

Complete step by step solution:
Given that,
Cost of AC is Rs. $51,200$(with GST).
Rate of CGST is $14\%$.
(1) Rate of SGST
We know that the rate of CGST and rate of SGST are equal.
Hence rate of SGST $=14\%$.
(2) Rate of GST
We know that the rate of GST is sum of the rate of CGST and SGST.
Hence rate of GST $=14\%+14\%=28\%$.
(3) Taxable Value
Let the Taxable value on AC is $x$.
Now the amount of GST will become $28\%$ of Taxable value i.e., $28\%\text{ of }x=\dfrac{28x}{100}$.
But the amount of GST is equal to the difference of the cost of the AC and the Taxable value of AC. Then we will have
$\begin{aligned} & \dfrac{28x}{100}=51200-x \\\ & \Rightarrow 28x=5120000-100x \\\ & \Rightarrow 100x+28x=5120000 \\\ & \Rightarrow x=\dfrac{5120000}{128} \\\ & \Rightarrow x=40,000 \\\ \end{aligned}$
Hence the Taxable value on AC is Rs. $40,000$.
(4) Total amount of GST.
In the above case we have the amount of GST as the difference between the cost of AC and the Taxable value of AC.
Hence the total amount of GST is $51200-40000=11200$.
(5) Amount of CGST
We have the rate of CGST as $14\%$, so the amount of CGST is
$\begin{aligned} & 14\%\text{ of }x=\dfrac{14}{100}\times 40000 \\\ & \Rightarrow 14\%\text{ of }x=5600 \\\ \end{aligned}$
(6) Amount of SGST
We know that CGST and SGST are equal, hence the amount of SGST is Rs. $5,600$.

Note: We can find the amount of GST by substituting the value $x=40,000$ in $\dfrac{28x}{100}$, then we will get
$\begin{aligned} & GST=\dfrac{28}{100}\times 40000 \\\ & \Rightarrow GST=11,200 \\\ \end{aligned}$
From both the methods we got the same answer, and from the GST value we can simply calculate the amounts of CGST, SGST by dividing the amount of GST by $2$ as they both are equal.