Question

M/s. Real Paint sold \[2\] tins of luster paint and the taxable value of each tin is
\[{\text{Rs}}.2800\]. If the rate of GST is \[28\% \], then find the amount of CGST and SGST charged in the tax invoice.

Answer 1

Hint: Here we will use the formula for calculating CGST and SGST which states if, at any amount
\[x\], the rate of GST is \[r\% \] then the value of CGST and SGST will be known as half of the
\[x \times r\% \]. Because GST is equal to the addition of CGST and SGST and both taxes are equal.
\[{\text{CGST}} = {\text{SGST = }}\dfrac{1}{2}{\text{GST}}\]

Complete step-by-step solution:
Step 1: The value of one tin is given \[{\text{Rs}}.2800\] . So, the total value of the two tins will be equals to as below:
\[{\text{Total amount = 2}} \times {\text{Rs}}.2800\]
By doing, multiplication on the RHS side of the above expression we get:
\[{\text{Total amount = Rs}}{\text{.56}}00\]
Step 2: Now it is given that the total GST value applicable to the total amount is \[28\% \]. But as we know that CGST and SGST are half of the GST value. So, we can write as below:
\[{\text{CGST}} = {\text{SGST}} = \dfrac{1}{2} \times 28\% \]
By solving the above expression, we get:
\[ \Rightarrow {\text{CGST}} = {\text{SGST}} = 14\% \]
Step 3: So, by using the formula of calculating tax value we get:
\[ \Rightarrow {\text{Amount of CGST = Amount of SGST = }}14\% \times 5600\]
Now by writing \[{\text{14\% = }}\dfrac{{14}}{{100}}\] in the above expression we get:
\[ \Rightarrow {\text{Amount of CGST = Amount of SGST = }}\dfrac{{14}}{{100}} \times 5600\]
By dividing the RHS side of the above expression we get:
\[ \Rightarrow {\text{Amount of CGST = Amount of SGST = 14}} \times {\text{56}}\]
By doing the final multiplication in the above expression we get:
\[ \Rightarrow {\text{Amount of CGST = Amount of SGST = Rs}}{\text{.784}}\]

\[\because \]The value of CGST and SGST is equal to \[{\text{Rs}}{\text{.784}}\].

Note: Students should remember different types of taxes. CGST (Central goods and services tax) is a tax charged on the intrastate supply of goods and services by the central government and SGST (state goods and services tax) is a tax applied on the same intrastate goods and services by the state government.