Question

The total value (with GST) of a remote-controlled toy car is Rs. 1770. Rate of GST is 18% on toys. Find the taxable value, CGST and SGST for this toy-car.

Answer 1

Hint: We know that the GST is applied on the taxable value and we know the total value of the toy car and hence the GST amount will be the total value minus taxable value. So we will assume the taxable value of the toy car to be p. Also we know that SGST and CGST are half of the GST amount.
Complete step-by-step answer:
Now the total value of the remote controlled car mentioned in the question is Rs. 1770 and this value also includes the rate of GST that is 18%.
So let the taxable value of the toy be p. So using this information we get,
\[\Rightarrow p+18\%\,of\,p=1770..........(1)\]
Now changing the percentage into fraction in equation (1) and simplifying we get,
\[\Rightarrow p+\dfrac{18}{100}\,\times \,p=1770.....(2)\]
Now taking the LCM in left hand side of the equation (2) we get,
\[\begin{align}
  & \Rightarrow \dfrac{100p+18p}{100}\,=1770 \\
 & \Rightarrow \dfrac{118p}{100}\,=1770..........(3) \\
\end{align}\]
Now cross multiplying the terms on both sides and isolating p we get,
\[\begin{align}
  & \Rightarrow 118p\,=1770\times 100 \\
 & \Rightarrow p\,=\dfrac{1770\times 100}{118}=1500........(4) \\
\end{align}\]
From equation (4), the total GST amount will be the total value minus taxable value of the toy. Using this information we get,
GST amount\[=1770-1500=270\].
Now we know that the SGST, CGST for this toy car will be half of the GST amount of the toy car. Hence using this information we get,
CGST amount\[=\dfrac{270}{2}=135\].
SGST amount \[=\dfrac{270}{2}=135\]
Hence the taxable value is Rs. 1500, CGST is Rs. 135 and SGST is Rs. 135.

Note: We have to remember the basic concepts of GST, CGST and SGST to solve this problem. Also we in a hurry can make a mistake in equation (1) by taking 18% of the total value of the toy car instead of 18% of the taxable value and hence we need to be careful while doing this step.