Question

M/s Jay chemicals purchased a liquid soap Rs.8000(with GST) and sold it to the consumers for Rs.10000(with GST). Rate of GST is 18%. Find the amount of CGST and SGST to be paid by Jay Chemicals.

Answer 1

Hint: In solving these type of questions, we should know that for GST of 18%, there will be 9% CGST i.e., half of total GST and 9% SGST i.e., also half of total GST, 18% of cost price and selling price should be calculated, and the GST will be the total amount of GST, and making half of it, we will get CGST and SGST.

Complete step-by-step answer:
Given that the shopkeeper purchased a liquid soap Rs.8000(with GST) and sold it to the consumers for Rs.10000(with GST), and the rate of GST is 18%, we have to find the amount of CGST and SGST to be paid.
Now first we should find the GST on cost price, now using percentage formula i.e., \[x\% \]of\[y\]will be,\[\dfrac{x}{{100}} \times y\],so here\[x = 18\]and \[y = 8000\],
Now substituting the values we get,
\[ \Rightarrow \dfrac{{18}}{{100}} \times 8000\],
Now after simplifying we get,
\[ \Rightarrow \dfrac{{18}}{{100}} \times 8000 = 18 \times 80\],
Now we will get,
\[\dfrac{{18}}{{100}} \times 8000 = 1440\],
So, GST of Cost price\[ = Rs.1440\],
Now we have to calculate GST for selling price we get, now using percentage formula i.e., \[x\% \]of\[y\]will be,\[\dfrac{x}{{100}} \times y\],so here\[x = 18\]and \[y = 10000\],
Now substituting the values we get,
\[ \Rightarrow \dfrac{{18}}{{100}} \times 10000\],
Now after simplifying we get,
\[ \Rightarrow \dfrac{{18}}{{100}} \times 10000 = 18 \times 100\],
Now we will get,
\[ \Rightarrow \dfrac{{18}}{{100}} \times 10000 = 1800\],
So, GST of selling price\[ = Rs.1800\],
Now total amount of GST will be the difference of amount of Cost price and amount of selling price,
Total GST = GST of Selling price\[ - \]GST of cost price
Total GST=1800\[ - \]1440,
Total GST=Rs.360,
Now since the 18% GST is the sum of 9% CGST and 9% SGST, so the amount of CGST and SGST paid by Jay chemical will be half of the amount of total GST each.
The amount of CGST paid by Jay chemicals\[\dfrac{{360}}{2} = Rs.180\],
The amount of SGST paid by Jay chemicals\[\dfrac{{360}}{2} = Rs.180\],.
The amount of CGST paid by Jay chemical is Rs.180 and the amount of CGST paid by Jay chemicals is Rs.180.

Note:
This question can be solved by another method by calculating the profit which is given by the difference in selling price and cost price. Then take 18% of the total profit made i.e.,\[10000 - 8000 = Rs.2000\], then \[18\% \]of the profit will give you the amount of GST by the shopkeeper.