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 SGCST for this toy car.

Answer 1

Hint:
Assume the taxable value of the toy car to be y. Now, we know that the total value is the sum of the taxable value and the amount of GST. So use this statement to find the taxable value. Then assume the SGST and CGST to be y. Now, we know that GST is the sum of SGST and CGST. It is already given that GST is $18\% $ of x so put the value of x and solve to get the value of y.

Complete step by step solution:
Given the total price with GST of a remote controlled toy car= Rs.$1770$
and Rate of GST on toys is $18\% $
Let the taxable value of the toy car be x then the total value=taxable value + the amount of GST
$ \Rightarrow $ The total value=$x + 18\% $ of x
According to question,
$ \Rightarrow 1770 = x + \dfrac{{18}}{{100}}x$
On taking LCM, we get-
$ \Rightarrow 1770 = \dfrac{{118}}{{100}}x$
On rearranging, we get-
$ \Rightarrow \dfrac{{1770 \times 100}}{{18}} = x$
On solving, we get-
$ \Rightarrow x = 15 \times 100 = 1500$ -- (i)
Now, we have to find CGST and SGST. Assume that both of them are equal and have value y.
GST is the sum of SGST and CGST so we can write-
$ \Rightarrow $ SGST+CGST=$18\% $ of x
On putting the given values, we get-
$ \Rightarrow $ y +y=$\dfrac{{18}}{{100}} \times 1500$
On solving, we get-
$ \Rightarrow 2y = 270$
On solving further, we get-
$ \Rightarrow y = \dfrac{{270}}{2} = 135$

Answer-Hence the taxable value of the toy car is Rs. $1500$ and CGST and SGST are Rs. $135$

Note:
Here we have assumed SGST and CGST to be equal because there is no information provided in the question about their distribution. CGST is the Central Goods and Service tax and SGST is State Goods and Services Tax. They are the subcategories of GST.